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Veteran’s Identification Card – New and Expanded Veteran Benefits

Posted on Saturday, 15th April 2017 by

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Veteran Identification Cards – New & Expanded Benefits

Until recently the only way veterans could prove their military status was either with a VA Health Service card, a retired military card, or provide a copy of their DD-214 discharge paperwork. Veterans that aren’t signed up for VA health care or didn’t retire from military service had few options other than carrying around a copy of their discharge papers. Our DD-214 forms don’t include a picture and most times a photo ID is required.

 

A New Way to Prove Veteran Status

On July 20, 2015, the president signed into law the Veterans Identification Card Act of 2015. This act allows Veterans to apply for an identification card directly from the Veterans Administration. The VA identification card will allow Veterans to demonstrate proof of service for discounts at private restaurants and businesses. This new photo ID can be used at Home Depot, Lowes and other civilian establishments that offer veterans discounts.

Starting on November 11, 2017,  Veterans Day, all honorably discharged veterans will be able to shop online at discount military exchanges. Part of this process includes verifying veteran status and the Defense Manpower Data Center (DMDC) has to create the software to do this. The exchange services will provide registration information for their online sites and the call center for the Army and Air Force Exchange Service (AAFES) will help veterans sign up and navigate the system. Veterans will also be able to shop at the online Navy Exchange Services managed by NEXCOM.

Veterans with honorable discharges will be authorized to shop online at any of the military exchange sites regardless of service branch, but they won’t be able to receive a DoD identification card through the program, or gain access to DoD installations and other DoD property where exchanges are located.

 

How to Obtain a Veteran Identification Card

The VAntage Point blog article titled Veteran ID Cards: What your options are now and in the future published on March 24, 2016 describes the new program and the process for obtaining a temporary letter to use until the cards are available. The new VA identification cards can’t be used as proof of eligibility for any federal benefits and they don’t grant access to military installations. The VA will charge a fee, the cost hasn’t been established as of yet. I thought the fee was a little over the top since we did serve our country and many, like myself, didn’t have a choice since I and many others received draft notices in the 1960s.  My initial military pay was a meager $98 a month, well below minimum wage at the time. When I married the love of my life in 1969 they increased my pay to $148 a month because I had to move off base! However, that being said, I don’t have a problem with a reasonable fee, it would just be nice to have the official card for use at Lowes, Home Depot, and other establishments.

Until recently I was using my Pennsylvania state drivers license for proof of service. In Pennsylvania the Department of Transportation adds a flag and place VETERAN under it to denote military service. You just have to take your DD-214 with you when you renew your driver’s license.  Now both Home Depot and Lowes refuses to accept the PA license as proof of identification for some reason and that is why I was researching how to obtain a VA ID card. I first called to see if I would be able to obtain a VA Medical card. Many veterans don’t qualify for a Medical Card because of income limits. I fit into that category and so would many federal retirees due to our retirement annuity often combined with our Social Security benefit.

According to the VA You can access and print a free Veterans identification proof of service letter through the joint VA/DoD web portal, eBenefits. This serves as proof of honorable service in the Uniformed Services, as defined in laws about the Department of Defense (DoD).  Veterans are able to obtain a free eBenefits account by going to https://www.ebenefits.va.gov/ebenefits/homepage. You have to sign up for a premium account to be able to print out the Veterans identification proof of service letter.

I was able to sign up for the premium service however when I went to print out the proof of service letter an error code popped up on my screen and I had to call the eBenefits tech support office for assistance. Basically they were unable to correct the error and they submitted a ticket for upper level support. When I asked them when I could expect this to be resolved, they stated that it could be anywhere from a month to a year or longer! I at least have my account now and hopefully it will get resolved and hopefully the new cards will be available later this year before November 11th.

If you are a veteran and need an identification card sign up for a premium eBenefit account today to get ahead of the curve. If you have problems with your account they will hopefully be able to resolve the issues before they implement the program. Your records may be in tact especially if you served from the 1980s on. I understand that veteran’s records prior to 1980 are archived and they have to take additional steps to retrieve them.

 

Featuring Federal Retirees in Our Blogs 

We are interviewing federal retirees for our Career and Jobs Blog. If you would like to be featured email Betty Boyd with your job title and series at betty@boydwritingservices.com. She will review your request and if accepted send you questions to answer and request a photograph. We coordinate interviews with active federal worker’s PR offices and retirees directly to present insider perspectives for the many jobs available in government service.

 

Helpful Retirement Planning Tools

Request a  Federal Retirement Report™  today to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Distribute these FREE tools to others that are planning their retirement

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment advisor. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE

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Finally, Good News for Retirees and Savers

Posted on Monday, 13th March 2017 by

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According to Kiplinger’s, core inflation will increase in 2017 above last year’s rate. Higher inflation generally results in higher Cost of Living Adjustments (COLAs) the following year. The Federal Reserve is expected to raise interest rates soon and several more increases are anticipated this year. This alone will provide relief to all savers including retirees living on a fixed income. The Federal Reserve has only raised interest rates twice since 2006 and the current rate of .75% is well below their 2.5% target rate.  We can expect Certificate of Deposit (CD) rates to increase accordingly.

Financial Planning Pen and Calculator and Review of Year End Reports

Interest rates have been so low for so long that fixed income investments such as CDs and savings deposits lost money since the meager interest earned didn’t offset inflation all of those years. Low rates also pushed many into higher risk investments that are subject to dramatic prices swings. The government decided to penalize (tax) savers to pay the interest on our national debt!  The lower interest is really a tax on those who sacrificed, saved, and did the right things in life to prepare for retirement and their future in general.

The downside to a higher COLA is that costs are projected to increase this year in several areas including health care.

As interest rates increase savers can park a part of their next egg in higher interest rate CDs and I Bonds rather than in higher risk investments. With the bull stock market just surpassing its 8 year anniversary, the second longest bull market in history, many are seeking conservative investment options to protect their core savings.

I Savings Bonds now earn 2.75% interest! The I Bond rate increased last November and this rate is good through April 30, 2017. The rate is adjusted every six months. If you buy an I Bond from www.treasurydirect.gov you will receive this rate for 6 months from the date of purchase and then it will change to the new rate that will be announced May 1.  I Bond interest changes with inflation every six months and as interest rates increase so do the return on I Bonds.  I bonds and inflation protection securities including Treasury Inflation Protected Securities (TIPS) value increases with inflation and are generally considered to be a good place to park some of your savings when interest rates are rising.

I originally purchased paper I bonds through payroll deduction when they were first released in 1999. Those early I Bonds had a high fixed rate and they are paying 5.75% today and have paid as high as 8% over the past eight years. The first I bond I purchased for $200 in 1999 has a cash value of $528 today, over two and a half times what I paid for it; an excellent and safe investment overall.

There are certain limitations that you should know about before purchasing I Bonds.

Individuals are limited to purchasing $10,000 in I Bonds each year, a husband and wife can purchase $20,000 total for the year. You can’t cash them in for one year and if you cash them in within the first 5 years you own them they charge you 3 months of the earned interest. I asked the Treasury the question; “if a bond owner dies is the 1 year waiting period and interest penalty waived like it is for Certificate of Deposits?”  They said no, you can’t cash them in early and the penalty stands.

By the way, EE Bonds are only paying .1%! What most people don’t realize is that if you hold your E Bonds for 20 years or more the Treasury guarantees that an EE paper Bond, purchased at half its face value, will be worth at least its face value after the first 20 years. (This equates to approximately a 3.5% yield) If an EE Bond does not double in value (reach its face value) as a result of applying the fixed rate of interest for those 20 years, Treasury will make a one-time adjustment at the 20 year anniversary of the bond’s issue date to make up the difference. When you buy EE Bonds online the Treasury guarantees that your investment will double in 20 years.

NOTE: EE Bonds are also an attractive option for many who are still working and won’t be needing their savings for 20 years or more. I’ve purchased E Bonds through payroll deduction starting when I first entered federal service after the military in the early 1970s! I cash in bonds over 30 years old and reinvested the proceeds as they mature. The nice thing about savings bonds is the interest earned isn’t taxed until you cash them in!

You have to purchase Savings Bonds and Treasuries online direct from TreasuryDirect.gov. They no longer issue paper bonds except for those who select them as an alternative to receiving a check for their income tax return.  I liked Savings Bonds better when you could go to your local bank and purchase paper bonds. The only way you can verify ownership with the new program is to visit your account online and print out your statement. If you have paper I or EE Savings Bonds you can cash them in at your local bank for the most part. Some banks no longer accept them so call first before taking them in.

Funds from the sale of savings bonds and Treasuries held in a TreasuryDirect.gov account are paid out direct to the financial institution account of your choosing and electronically transferred the day of the transaction. You also buy bonds that way; funds are transferred direct from your designated account to TreasuryDirect.gov. If you buy US Treasury notes, bills, or bonds the interest earned is also directly deposited to your account on the date of issue.

Savings bonds over 30 years old no longer pay interest and you may wish to cash them in and either buy new ones, invest the money elsewhere, or put the money into a CD or savings account. When you cash in savings bonds the interest is reported to the IRS and you will have to report the interest on your tax return for the current year.  If you are signed up for Medicare Part B your premium is income adjusted. Cashing in savings bonds and taking capital gains from other investments can increase your Modified Adjusted Gross Income (MAGI) sufficiently to dramatically increase your Income Adjusted Medicare Part B premiums. It should also be noted that interest earned on tax free municipal bonds is included in your MAGI for determining your income adjusted Medicare premium.

A number of financial institutions are offering more attractive rates for money market and special savings accounts. I earn .8% interest on special savings accounts at my local bank and .5% at our credit union. Even though these rates are low they are higher than most financial institutions are paying today. CDs are now paying up to 2.3% for five year and 1.1% for one year certificates if you look around. I was able to purchase CDs earning 1.5% for a fifteen month term last year from our credit union. The ten year Treasuries are paying 2.4%. Again, not that great but better than we have been able to get for some time and rates may be going up dramatically this year.  The Federal Reserve is expected to increase interest rates several times this year to normalize rates.

Stock market corrections can dramatically decrease many retiree’s retirement account balances near term. If you can’t weather the storm or tend to panic when stock prices fall it’s wise and prudent to seek out conservative fixed income investments such as higher interest FDIC insured savings accounts, CDs, Treasuries, and savings bonds.

For Thrift Savings Plan (TSP) participants the L Income Fund is designed for retirees that want to keep up with inflation but still have the majority of their investment protected from market fluctuations. The L Income Fund invests 74% of the account in the (G) Government Bond Fund, 6% in the (F) Fixed Income Fund, 11.2% in the (C) S&P 500 Index Fund, 2.8% in the (S) Small Cap Fund, and 6% in the (I) International Fund. The G Fund is guaranteed not to decease in value and the bonds are special issue federal government bonds.

Take some time to evaluate your accounts and look at ways to increase your yields wherever possible. It takes time and energy to review where you are now but the energy expended can pay off handsomely down the road, plus you will potentially be reducing your risk which is especially important for retirees on fixed income.

Helpful Retirement Planning Tools

Request a  Federal Retirement Report™  today to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Distribute these FREE tools to others that are planning their retirement

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment advisor. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

 

Posted in BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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The End Game – Protecting Your Loved Ones

Posted on Sunday, 12th February 2017 by

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The saying that “It’s Never Too Late” doesn’t apply to certain aspects of retirement and estate planning. I can attest first hand to this; my father died when I was one and my mother, at age 37, was left with 4 small children of which I was the youngest. My father died without life insurance and my mother was left to raise us during the hard times ahead.

Final arrangements are a necessary part of everyone’s estate plan yet it is the one facet of the plan that many neglect… UNTIL IT IS TOO LATE! Now is the time to put pen to paper and let your loved ones know your wishes and determine what services you desire when that time comes. Another critical aspect of pre-planning for federal employees and annuitants is that It will help your surviving spouse and family members retain their benefits, reduce their health care costs, and cash in your FEGLI life insurance.

Pre-planning Steps

  • Identify an interment site (cemetery)
    • Purchase a plot, crypt, or elect cremation
  • Selecting a funeral home
    • Funeral Director to prepare a “Statement of Funeral Goods and Services Selected”
    • Prepare a Funeral Planning Record
  • Payment options
    • Prepay or,
    • Pay with an insurance policy
    • Identify funds to be used for payment
  • Report Death to OPM (Procedures & Form)
    • Confirm FEHB changed from Self Plus One to Self Only if appropriate
  • Report Death to FEGLI (Procedures & Form)

I started planning our final arrangements when we updated our estate plans several years ago. I should have completed this task long before; you never know what’s just around the corner. Our estate plan included all of the essentials except for detailed final arrangements; what funeral home we would use, services desired, and other necessary details.

What brought the subject up was an out of town trip.  We passed the National Cemetery where we originally planned to be buried. Burial is free for veterans and their spouses and it was a natural choice for us. I wrote an article about Final Arrangements and the National Cemeteries that you may find informative. My wife was concerned that the National Cemetery was too far from home for her to visit.

Identify an interment site (cemetery)

Use the following resources to find a suitable location:

I researched local cemeteries in early 2014 and upon our return home we purchased a crypt in a cemetery only three miles from our home. We received a substantial pre-construction discount with a no interest loan from the Catholic Cemeteries Association. The association also offered a prepaid funeral plan that we used to compare prices at local funeral homes. Catholic cemeteries now accept all faiths.

I compared standard grave burials to crypt interment. With a grave you have to pay for the plot, a headstone which can cost up to $5,000 or more, a vault, and have the grave excavated and filled in. The cost for a crypt in a mausoleum, especially with a pre-need and/or pre-construction discount, wasn’t much more and everything is included with the purchase.

Selecting a funeral home

I contacted three local funeral homes and requested copies of their General Price List. Most, if not all,  funeral homes will provide price lists upon request. I visited two on the list and we discussed options, services, and they answered my many questions. Each provided a detailed “Statement of Funeral Goods and Services Selected.” The statements included the total cost for all of the essential services, casket, viewing duration, up to required clothing that we desired. We selected the funeral home best suited to our needs and prepared a Funeral Planning Record for them to hold on file until notified of a death.

The costs listed on their statement are only good for 30 days. Prices generally increase over time. The good thing is that you have exactly what services you desire on paper so there won’t be any confusion at the time of death.

Pre-planning helps loved ones cope at a very difficult time and lets them know exactly what the deceased desired and how to pay for it. The Funeral Planning Record lists all of the important information the funeral director needs when the time comes. It lists your name, address, birth date, church affiliation, marriage information, family members, and so much more. The information is used for many purposes including writing an obituary and notifying Social Security and Medicare. They also ask for a copy of a veteran’s DD-214 and coordinate VA benefits. If desired you can also write a draft obituary and include it in the record.

All funeral directors provide a Funeral Planning Record for you to complete. However, most funeral homes aren’t automated to the point where you can enter this information into a database or on a fill-in PDF form. I converted the Funeral Planning Record to a Microsoft Word document because I don’t like to manually fill in forms. Keep a copy with your estate plan or include it in a Funeral Arrangement file like I did for my wife and children. All they have to do is take a copy with my DD-214 form, I placed a copy in the file, to the funeral home when they go to finalize arrangements and sign the forms. It’s best to review your final arrangements with your children or heirs so they know what to expect.

Payment options

The average cost of a funeral today is just over $7,000 and then you have to add thousands more for the cemetery plot and headstone or a crypt. Cost is the major reason why cremation has become so popular now accounting for almost 50% of all burials.

  • Pay with an insurance policy using a “Funeral Home Assignment”
  • Prepay in advance with a Final Arrangement insurance policy
  • Pay with estate assets at time of death

Funeral homes typically allow 30 days for payment after a funeral and they will have death certificates within 2 to 3 days from the date of death. You will need to send a copy of the death certificate to the insurance companies to have them release funds.  You can elect to have the insurance company pay the funeral home direct for their services and the remainder will be sent to the beneficiary. This is called a Funeral Home Assignment and FEGLI allows this. I advised my wife to do this with my FEGLI policy.

If you have sufficient savings the costs can be paid from estate assets or from the surviving spouse’s accounts at the time of death.

Many funeral homes offer prepayment plans using a final arrangement insurance policy. These policies require a lump sum payment to the insurer for the total amount listed on the funeral home’s Statement of Funeral Goods and Services Selected contract. The insurance policy earns dividends that take care of any additional costs at the time of death. If you decide to use this option check the AmBest insurance ratings for the company. According to AM Best, “A Best’s Credit Rating provides a forward-looking independent and objective opinion of the insurer’s creditworthiness.” You have to register to use their free service.

Another more desirable option, if you don’t have sufficient insurance, is to set aside the amount specified and place it into an interest bearing savings account or a Certificate of Deposit (CD) that has a low early withdrawal penalty. Let it grow there to cover future cost increases. Place a copy of the CD or a note about the savings account in your Funeral Arrangement file and advise your heirs so they will know where the funds are located.

Reporting a Death to OPM (Procedures & Forms)

This is a critical and time sensitive issue for annuitants and survivor annuitants. You must report the death of an annuitant or survivor annuitant to OPM and complete an Application for Death Benefits shortly after the death. Reporting the death to OPM will stop the annuitant’s payment and start the survivor’s reduced payment. They should also contact the surviving spouse about reducing their FEHB coverage from a family or self-plus one plan to a self only plan that will substantially reduce the surviving spouse’s monthly premium.

Three Ways to Contact OPM:

Call, it may take a number of tries to get through. Call early in the morning and just keep redialing until you get through. Long waits are typical.

  1. Telephone at 1-888-767-6738 —hours of operation are 7:40 A.M. until 5:00 P.M (Eastern Time)
  2. Send email: retire@opm.gov (Don’t send confidential info by email)
  3. Report a death to OPM online

All payments received from OPM after the annuitant’s date of death must be returned to the Treasury Department. 

Complete an SF-2800 “Application for Death Benefits” for CSRS annuitants or a SF-3104 and SF-3104B forms for FERS annuitants. OPM will send a package for the survivor to complete.  I downloaded and completed the SF-2800 (Application For Death Benefits) form in advance for my wife and added sticky green arrow markers where my wife will have to enter my date of death, sign and date. This form must be sent to OPM along with a copy of the death certificate and marriage license. I advised my wife to check with OPM to make sure the form I completed is still valid, it was last revised on November 2011. I included a copy of our marriage license in the file attached to this draft form.  Send it to the Office of Personnel Management, P.O. Box 45, Boyers, PA 16017-0045.

You will need the following information when reporting a death to OPM and FEGLI:

  • Deceased CSA Number:
  • Retirement System: CSRS or FERS
  • Copy of death certificate (Funeral home will have death certificates within 2 days of the death.)
  • Copy of marriage certificate (Attached to the SF-2800 or 3104 form in folder)
  • SSN:
  • Date of Birth:
  • Health Benefit Enrollment Code at time of death:
  • Spouse’s birth date:
  • Spouse’s SSN:
  • Spouses Date of Marriage:
  • Address & Phone Number:

Reporting a Death to Federal Employees Group Life Insurance (FEGLI) by MET LIFE:  Call FEGLI (1-800-633-4542) to report the death and complete their Form FE-6 Claim For Death Benefits form. I also downloaded this form and completed it in advance and added sticky green arrow markers where my wife will have to enter my date of death, sign and date. If you should decide to do this your survivor should call and ask FEGLI if the form you completed, the current one was revised December 2016, is still current. If a newer form is available have them send a copy or downloaded it from the Internet. Attach a copy of the death certificate.  Send this completed form to OFEGLI, PO Box 6080, Scranton, PA 18505. This address is in the instructions with the form.

FEGLI will pay for the funeral costs and send the difference to the surviving spouse or designated beneficiaries if desired. The funeral home will have you sign a document, a Funeral Home Assignment letter, agreeing to this and provide a copy to attach to the FE-6 form. You must check YES in Part F authorizing them to pay the funeral home direct.

The time spent preparing your final arrangements will make it much easier on your family and friends. Take the necessary steps to prepare your final arrangements now. I feel relieved now that I’ve done what was needed to help my wife and children when that time comes and I hope that time is far, far away! If you decide to put this task off, print this article and keep it in your retirement or estate planning folder for future reference.

Helpful Retirement Planning Tools

Request a  Federal Retirement Report™  today if you would like to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Distribute these FREE tools to others that are planning their retirement

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment advisor. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Retirement Application & Benefit Forms – Don’t Make This Mistake!

Posted on Friday, 27th January 2017 by

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OPM issued a “Benefits Administration Letter,” number 16-102, announcing that “effective immediately, we will not accept corrections (scratch-outs, white-outs, line-outs, or any other type of correction actions) in the named Sections on the following forms. New forms must be completed in lieu of any alterations to previously entered information.”

A manually corrected retirement application could delay disbursement of the applicant’s annuity and lump sum payments. Most of the new forms are PDF and the information can be reentered on your desk or laptop computers. Unfortunately, in many cases,  you can’t save completed fill-in forms.  Don’t manually line out or correct the noted sections on the following list of forms:

Civil Service Retirement System (CSRS) Forms

  • CSRS Immediate Retirement Application, SF 2801: Section F- Annuity Election
  • CSRS Immediate Retirement Application, SF 2801-2: Spouse’s Consent to Survivor Election
  • CSRS Deferred Application OPM Form 1496A: Section C- Annuity Election
  • CSRS Deferred Application OPM Form 1496A: Schedule A- Election of Former Spouse Survivor Annuity or Combination Current/Former Spouse Annuity
  • CSRS Deferred Application OPM Form 1496A: Schedule B- Spouse’s Consent to Survivor Election
  • Designation of Beneficiary SF 2808 (CSRS) Sections B and C

Federal Employees Retirement System (FERS) Forms

  • FERS Immediate Retirement Application, SF 3107: Section D- Annuity Election;
  • FERS Immediate Retirement Application, SF 3107-2: Spouse’s Consent to Survivor Election
  • Application for Deferred/Postponed Retirement FERS, RI 92-19: Section F-Annuity Election
  • Application for Deferred/Postponed Retirement FERS, RI 92-19: Schedule A-Spouse’s Consent to Survivor Election
  • Designation of Beneficiary SF 3102 (FERS): Sections B and C

Federal Employees Group Life Insurance Forms

  • Continuation of Life Insurance Coverage (SF 2818): Items 7-14
  • Designation of Beneficiary for FEGLI (SF 2823): Sections B, C, and D

Helpful Retirement Planning Tools

Request a  Federal Retirement Report™  today if you would like to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Distribute these FREE tools to others that are planning their retirement

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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1099 R Statements For 2016 Are Available Now!

Posted on Wednesday, 18th January 2017 by

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Normally, federal annuitants don’t received their 1099R Tax Forms until the end of January or the beginning of February by regular mail. If you are registered to use OPM’s Retirement Services Website your 1099 R is now available for download. I visited the site on January 18, 2016 and was able to download my copy that I will use for my 2016 tax return. I’ve been visiting the site each day to see when it would first be available.

To get a head start on your taxes visit OPM’s web site and download a copy. You must be registered to use the site. If you aren’t registered read the article titled “Connect to OPM’s Online Services” to understand the registration process and sign up. It doesn’t take long however you may have to wait for your password to be sent via regular US mail and that can take several weeks. If you haven’t signed up yet do it now. The site offers retired federal employees many helpful options such as changing your direct deposit information, address changes, 1099 R copies, and much more.

Helpful Retirement Planning Tools

Request a  Federal Retirement Report™  today if you would like to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Distribute these FREE tools to others that are planning their retirement

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Retirement Moves – Take These Steps Now!

Posted on Friday, 13th January 2017 by

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Moving is always stressful no matter if you are working or retired. My wife and I moved 11 times since we first married 47 years ago! Each move had its own unique issues that we had to handle at different times in our lives.  If you are retired there are a number of actions that you must take to maintain your federal retirement benefits and it helps to have a checklist to walk you through the process. Registering for OPM’s Online services can assist you with this process. You can take care of a number of key issues there including changing your mailing address and direct deposit information, and change your state tax withholding if applicable. It only takes a few minutes online.

If you are planning a move keep a copy of the following checklist to help you along the way.  Forward this article to others that you know are planning a move.

Moving Checklist

Prior to Moving

  • Do you need to change banks? If your current financial institution doesn’t have branches in your new area establish an account with a local bank.
  • FEHB (Health Care Benefits) Does your current plan provide coverage at your new home? If you have an HMO or other local plan you will probably have to change plans. The nationwide plans such as Blue Cross and Blue Shield and GEHA will travel with you and provide benefits anywhere you live stateside.
  • Dental and Vision Care Coverage in New Area – Visit BENEFEDS to confirm that your current Dental and Vision plans are available in the new area. It should be noted that premiums are based on where you live in some situations such as dental care.
  • Review OPM’s Benefit Guides for Federal Retirees for additional guidance.
  • Does the state you are moving to tax federal annuities? If so, you can specify the dollar amount of State tax you want withheld from your monthly payments. The withholding must be in whole dollars. The minimum amount OPM can withhold for State income tax is $5. Use Services Online to start, change, or stop the State tax withheld from your annuity payment. You can also Contact OPM to change your withholding amount. If you write, your letter should include your claim number and the monthly amount in dollars you want withheld. If you do not know the monthly amount you want withheld, contact your State tax office for information or assistance.
  • General Items
    • If you keep your current cell phone number, confirm with your carrier that when dialing 911 you will contact emergency services at your new location. Here is more information about 911 wireless services for cell phones from the FCC.
    • Download a copy of our FREE Retiree’s Master Contact List that provides phone numbers for most benefit areas.
    • Confirm that your utilities at your new home are transferred to your name and the utilities at the address you are leaving are either terminated or transferred to the new owner or renter.
    • Initiate a mail forwarding, a Change of Address Request, at your local Post Office or visit USPS.com to forward your mail for the next 12 months. There is no fee for this service.

After Moving

  • Change your mailing address for the following:
    • Postal Service, the USPS will forward your mail for one year to your new location
    • Office of Personnel Management (OPM)
    • Social Security and Medicare (Phone numbers are listed on our Retire’s Master Contact List)
    • Credit cards
    • Financial Institutions including TSP
    • Insurance companies, etc
    • Loans
  • Contact OPM to change your direct deposit information so that your annuity will be sent to your new bank account. You can do this using their online services if you are a registered user or call their phone number.  Your bank can also submit a Form 1199 A Form by mail or fax to OPM.
  • Change your FEHB plan if your current plan doesn’t cover the area you moved to. Contact OPM at 1-888-767-6738. Provide them with the following information:
    • CSA Number
    • Statement that you moved outside the current health benefit plan’s service area
    • Name of the new health benefit plan you identified prior to moving
    • Provide the three-digit enrollment code for your new FEHB plan
  • Visit BENEFED to change your dental and/or vision plans that you identified before moving.

(OPM) Office of Personnel Management (Retirement Support Site)

Retirees can call toll free 1-888-767-6738, TTY: 855-887-4957 weekdays between 7:40 a.m. to 5:00 p.m. (Eastern Time) Monday through Thursday and 8:30 a.m. to 3:00 p.m. (Eastern Time) Friday or email questions to retire@opm.gov anytime to ask questions or request assistance with their personal retirement issues.

NOTE: There line is frequently busy, call early or late in the day to get through and you must have your retirement claim number or Social Security number available. When I get a busy signal I hang up and immediately click on speed dial to call again. I keep doing this until I get connected. I often have a 20 to 40 minute or longer wait when I call. OPM advises that “the internet is not a secure environment for transmitting personal information via email.” Replies via email typically take 15 days or more.

Web Address: http://www.opm.gov/retirement-services/

Mailing Address:

U.S. Office of Personnel Management
Retirement Operations Center
Post Office Box 45
Boyers, PA 16017

Download our FREE Retiree’s Master Contact List and keep a copy with your retirement paperwork.

Helpful Retirement Planning Tools

Request a  Federal Retirement Report™  today if you would like to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Distribute these FREE tools to others that are planning their retirement

Visit our other informative sites

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment advisor. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Posted in BENEFITS / INSURANCE, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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2017 Leave calendar and Pay Raise, Then and Now, & Jobs Update

Posted on Friday, 16th December 2016 by

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We published the new 2017 Excel Leave Chart back in late October. Since then a few of our site visitors were only able to open the Excel chart in protected mode and couldn’t enter data. If your spreadsheet opens in protected view click the “enable editing” button in the yellow bar at the top of the form. However, if you don’t see the enable editing button you may have an older version of Excel. To remedy this we published two versions of the spreadsheet, one with an xls and the newer xlsx extensions.  Visit our Leave Chart Page for more information and for the links to both versions of the form.

A Microsoft Office consulting firm advised me that If both versions open in protected view the protected view status is a result of security settings on your agency’s LAN and network. Some agencies increase their security settings to lock out certain documents based on the parameters the IT specialist selects. We do include several hyperlinks in our forms to link users to additional supporting information such as the sick leave conversion chart and that may be the cause. If you have this problem when opening the form I suggest talking with your IT people to have them allow the form to pass without restrictions.

Please share the downloaded 2017 leave chart with everyone in your organization. The chart tracks all leave balances and you are able to annotate your work schedule on the chart as well.

2017 Employee Raise Increased

The 2017 pay raise was announced on August 31, 2016 and included an across-the-board pay increases of 1.0 percent plus a .6% locality pay adjustment. Fortunately congress and the president decided in November to increase the federal employee’s raise to match the military service’s 2.1% increase due to improving economic circumstances. The pay raise will take effect on the first applicable pay period beginning on or after January 1, 2017. The pay tables for 2017 will be posted as soon as they are released by OPM, sometime in late December. This is substantially more than the retiree’s and Social Security COLA of just .3% for 2017!

Then and Now

When young, in your twenties and thirties, most think little of mortality or what lies ahead 30 or more years down the road. We’re young, full of life and unlimited possibilities. I was consolidating my files recently and came across a March 1985 employee list for the Pittsburgh FAA organization I worked for, the Pittsburgh System Maintenance Office (SMO). Of the 109 employees on the list only three are still employed and after this month, that number decreases to two. The two that remain both have over 40 years service, one with 42 plus years! The two still standing could retire at any time.

As I peruse the list I can see the faces of the many friends and associates that I worked with and recall significant events in our lives at the time and since. In 1985 my career was just starting to take off and I landed my first supervisory position that year. I was a young 35 year old working hard to raise a young family and struggling with what all of us go trough in those early years; uncertainty, expectations, and hopefully gaining the wisdom and knowledge to continue growing in our careers and relationships.

Time hasn’t faded my memories and as I look at each name on the list I can vividly see their faces as if it was still 1985!  Going down the list many are not only retired but traveled now to the  inevitable conclusion of all of our lives, the next horizon.

Life is short and time passes by so fast that many put off retirement planning until it is too late to make meaningful corrections and financial contributions to ensure a rewarding life after work. For those still  working it isn’t too late to ensure life after retirement is affordable and rewarding. Explore our retirement planning site to learn about your retirement benefits, financial, and estate planning moves that can help you and your loved ones best prepare for life after work.

Request a  Federal Retirement Report™  today if you would like to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

 Retiree Jobs Update

Employers recruiting federal retirees and those soon to retire post job vacancies on our Jobs Board. A good number of new part and full time listings were posted recently. One company is looking for a retired Federal Human Resources/Trainer to conduct CSRS and FERS trainings throughout the U.S.  Federal Staffing Resources is hiring three retired professionals to work in North Carolina. Other positions are for various positions including several work from home options.

Private companies, contractors, and state government departments use our Jobs Board to hire skilled federal retirees for part and full time positions nationwide. Many opportunities exist for those looking to supplement their retirement income or to start a second career. We provide this free job listing service to companies that are seeking to hire experienced retired federal workers.

Helpful Retirement Planning Tools

Distribute these FREE tools to others that are planning their retirement

Visit our other informative sites

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment advisor. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Posted in BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, ESTATE PLANNING, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS

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Retiree Reflections Autumn 2016

Posted on Wednesday, 30th November 2016 by

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About two years ago I purchased hearing aids from Costco and talked about the process in an article titled “Did You Hear That? A Fitting End to a Frustrating Problem.” The two hearing aids were only $1699.00 and my FEHB plan reimbursed me for the total amount. I had to have Costco send one of the hearing aids back to the manufacturer about a year after the purchase and I received a new replacement within a week. I purchased my hearing aids from Costco because of their reasonable prices, thorough and comprehensive hearing tests, and the fact that we travel and I can have them serviced at most Costco outlets nationwide.

We were on a fall vacation trip last month and one of my hearing aids failed. I took it to a local Costco in Myrtle Beach and they put a rush on the service. I had a new unit within three days. I still have a year on the full replacement warranty and after that if one fails they only charge $125 to have it sent back and serviced! Costco provides an additional one year warranty on the serviced unit; not bad. The first pair that I purchased through a local doctor’s office five years ago cost almost twice as much and after the original warranty was up they charged me $250 to refurbish a unit.

I also noticed that the Costco in Myrtle Beach employed three audiologists and they had three fully equipped sound booths in operation. Their hearing aid program seems to be growing. My FEHB GEHA plan covers $2,000 for new hearing aids every three years and I’ll be able to pick up a new pair next October.

The one thing I plan to do when I upgrade is get the more expensive aids. The next level up is $2,600 for the pair, I’ll have to pay anything over $2,000 but I believe it will be worth it.

Keeping Active

My wife and I both have a FITBIT One activity tracker that I first mentioned in the Lifestyle Update section of a recent article.  I’ve been using my FITBIT One since April of this year. A recent weekly report showed that I walked 77,824 steps, 35.69 miles, walked up a total of 66 flights of stairs, and burned 18,022 calories. This is about my average weekly activity. My wife always beats me by about 1,000 to 1,500 steps each day. From late April 2016, when I first purchased my tracker, through October 30, 2016 I walked 1,965,696 steps, 901 miles, climbed 1,938 floors, and walked a total of 790 miles!

An activity tracker encourages you to meet or exceed your daily target and if I see that I’ve been at my desk too long, I check my FITBIT and get up to work on other projects or start walking. During the winter months I walk on our treadmill and my wife walks in the house. She has a fixed daily routine that really racks up the miles.

Just getting up and stretching can make a difference. I keep a small squeezable ball at my side when watching TV and use it to do dynamic tension exercises. I try to keep active as much as possible, it’s too easy to put things off and become a couch potato.

Energy Saving Thermostat Installation

I like to talk about projects I’ve worked on that proved to be worthwhile and economical.  I called two HVAC companies for quotes to install a smart thermostat for my HVAC system this year. Our electric supplier was offering a $125 rebate if we replaced our existing thermostat with one of the four on their prequalified list. Both companies quoted prices to install the Carrier Cor thermostat; one estimate was $525 and the second $745! Santee Cooper, our electric supplier, listed four preapproved thermostats including the Nest Learning, Carrier Cor, Honeywell Lyric, and Bryant Housewise.

After researching several, the one that stood out for me was the Nest Learning model. I called the company with the low bid and asked them for a quote for the Nest installation. One of my primary concerns was that the NEST controls humidity levels in your home without having to install a dehumidifier plus I could control and monitor the new thermostat from anywhere with my iphone. The thermostat connects to your local Wi-Fi. It has a cool to dehumidify setting that kicks in if the humidity rises about 65%. You can also program the fan to run for a set time each day, I set ours to run for 60 minutes from 8:00 to 9:00 each morning to circulate air.

After waiting several days and no call back, I visited the NEST website and discovered just how easy it was to install the unit myself. They even provide a wiring diagram for your unit if you send them a picture of the thermostat mounting face plate. I purchased the NEST from Lowes for $249.95 and they gave me a 10% veteran’s discount. After the $125 rebate my total cost was around $150 including sales tax. This saved me over $400! It only took about an hour to change out the old thermostat. I could have done it quicker but took my time to reconfirm every step and connection plus I contacted tech support to help me connect the NEST to my Iphone app. A novice can easily install this thermostat.  They take you step-by-step through the process and even include a small screwdriver to disconnect the wiring after you turn off the power to your system. No other tools are needed and their installation video is excellent.

All in all, it’s a great thermostat. I can monitor and adjust my home’s temperature, humidity, and energy usage from my iphone. It also displays outside temperature and weather conditions.  I was about to close out this article until I read a black Friday ad featuring the NEST at Lowes for only $199. I purchase the nest for $249 two weeks ago. I took my receipt back to Lowes and they honored the lower price and credited my card for the difference! I ended up only paying just under $100 with all of the rebates…, quite a deal.

Helpful Retirement Planning Tools

Request a  Federal Retirement Report™  today if you would like to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Distribute these FREE tools to others that are planning their retirement

Visit our other informative sites

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment advisor. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Posted in FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS

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