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Your Last Day, Retiree Jobs, and Updates

Posted on Monday, 14th March 2011 by

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Your last Day

How can you ensure that your exit doesn’t cause you or your agency problems? There are many loose ends to sew up the last few days of employment that if not done properly can delay payment of your first check or cause other problems.

I still hadn’t received my retirement Personnel Action (SF-50) on my last day of work. Typically, you receive your retirement SF-50 several weeks after you submit your retirement paperwork along with OPM contact information that you will need to follow-up on the status of your annuity and benefits.

The SF-50 lists your retirement date, salary, current benefits, and in the remarks column it states whether or not you elected to continue health benefits coverage. For those who purchased their military time back, that payment is annotated on this form as well and will serve as documentation of payback if problems should arise down the road. I suggest keeping your retirement action SF-50 with copies of your retirement paperwork after you leave.

I contacted our division office and they went down to HR to walk it through. I received a fax copy by mid afternoon.  This is just one of many reasons why you need to send in your retirement paperwork at least 3 months in advance. The more notice you give HR the more likely your retirement application will get the service and attention needed. I submitted my paperwork more than three months in advance and somehow this just slipped through the crack.

Typically, on your last day you must process out and turn in your federal ID card, computer, office keys, credit cards, cell phones and any other government property assigned to you. Obtain a statement or signed property release forms from your supervisor listing the property you turned in and keep a copy with your other paperwork. If you do not turn in assigned property and your ID your annuity checks will be held until you do so.

If you are the only person in your organization performing a function that needs to be continued after you leave, discuss this situation with your manager. They should assign someone to be trained by you so that function can continue. By the time your last day comes around, with proper planning, it should go rather smoothly until you start to walk out the door. At that point you wonder, hopefully to yourself: Did I make the right decision! Everyone thinks that no matter how badly they want to leave, so don’t be surprised. It is an emotional minute in your life and life continues on as it always does, with or without us.

More Jobs

 

Some may think it strange that we post and feature jobs on our retirement planning site’s Job Center. I would not have retired in 2005 had I not had my company, that I started part time in 1985, to fall back on. I was age 55 with 35+ years service, including 3 years military. It wasn’t that I didn’t enjoy working in the Air Traffic environment; it was more of a choice to change direction and try something new, yet not that new in my case. Part time employment can smooth the transition from full time work to eventual full retirement and pursuit of whatever pleasures you desire. It can also be a breath of fresh air after working so long within the same organization and under government’s bureaucratic restraints.  There are many opportunities for those who seek them out for whatever reason; social interaction, extra income, or simply to keep active or pursue a profitable hobby.

We received many new job postings recently and most are from federal agencies or related organizations seeking to hire federal retiree’s for their vast knowledge base.  There are many opportunities for rehired annuitants. Many private sector companies also realize the tremendous opportunity to tap into a federal retiree’s 30+ years of specialized experience.  The United States Graduate School is looking for 6 instructors to teach scheduled classes at their facilities around the country and in Washington.  U.S. Customs and Border Protection (CBP) is advertising for a Contract Specialist and the Idaho State Government needs to hire Lands Resource Specialist.  Jobs are also listed by FEMA and others needing assistance on a part time to permanent basis. Add to the mix many more jobs from contractors and private companies nationwide in a broad spectrum of occupations; from sales reps to engineers and highly trained specialists.

Money magazine’s February issue featured eight great part-time jobs for retirees. We added links to literally thousands of job vacancies across the county for the recommended occupations. You can narrow the search to your area and search for the occupation you are most interested in as well:

Updates

  • TSP – I mentioned in my last article that I transferred 100% of my TSP account back into the G Fund on January 31, 2011. Since then the markets have remained erratic and lacking any real momentum in either direction. I was asked why I would do this and potentially give up gains with the common stock funds. The short answer is that anyone in or close to retirement can’t have all of their eggs in one basket.  With the world in turmoil including the most recent massive earthquake in Japan, gas projected to be $5 a gallon this summer, the unrest in Libby and the middle east, inflation on the horizon, and the national debt exceeding 13 TRILLION dollars, it makes sense to be conservative until things settle down.  The THRIFT fund can act as ballast for your overall investment accounts and when I feel times are getting tough I head for the safety of the G-Fund. In my other accounts, during times like these, I focus on more conservative high yielding dividend paying stocks including utilities and large cap stocks such as AT&T. Many federal employees’ TSP accounts have the potential to grow substantially over time; however you must understand the markets, especially close to retirement, to safeguard your nest egg. For anyone interested in understanding investing and their TSP account, I suggest joining Better Investing.  Their Better Investing magazine and new investor training courses are worth their weight in gold. I joined in my early 30s and their focus is on individual investors and investment clubs.
  • Reporting a missing annuity payment – We have had several site visitors ask us how to report a missing payment this month.  You can call the OPM hot line at 1-888-767-6738 however; it is very difficult to get through. The best way to report the missing payment is through OPM’s online Missing Payment Report. Just enter you claim number and personal information and click on submit.

Learn more about your benefits,  employment, travel, and financial planning issues on our site and visit our Blog frequently at https://fedretire.net to read all forum articles.

Request a Retirement Benefits Summary Analysis and receive a personal retirement analysis. A sample analysis is available for your review. This service is provided by independent agents that are not affiliated with www.federalretirement.net or Bookhaven Press LLC.

Visit our other informative sites

The information provided may not cover all aspect of unique or special circumstances, federal regulations, and financial information is subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our articles are not intended nor should they be considered investment advice. Our reply is time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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A Greek Holiday – Exploring Greek Ports of Call

Posted on Thursday, 10th March 2011 by

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While a student in college working on a liberal arts degree, I read The Iliad and The Odyssey by Homer and was fascinated by the stories of Greek Gods and the Temples of Greece.  Seeing the Parthenon was a must for me but it took another 36 years before I planned the trip and another 18 months before actually departing on my quest to see The Parthenon.  So off to Greece I went on a cruise ship with four ports of call.

Once in Athens I boarded a tour bus for the Acropolis.  When I got off and began climbing the hill to the Acropolis, I did my best to take it all in.  I noticed the plants growing around the area and the view of the surrounding hills as I climbed the ancient steps to the Parthenon; all the while imagining what it must have looked like in its prime.  The stacked columns, some slightly offset to maintain the delicate balance for the beams overhead, were fascinating.  Then finally, I reached the point where I could see the majestic Parthenon.

There is something about standing on the Acropolis in the ruins of the Parthenon and knowing that it is a piece of ancient history that still stands in all its glory. The Acropolis is so revered by the people of Greece that restoration work continues to this day to keep their beloved history alive. It is nearly the size of a football field!  Some of the beams have carvings of horse heads and riders located at the corners. You can nearly see breath coming from their nostrils. At the back of the Parthenon, if you look at the hillside below, it looks as if someone has laid parts of buildings like pieces of a puzzle. How appropriate, given that it is exactly what the Archeologists are doing on the Acropolis; they are reconstructing buildings as well as restoring statues on the temples of the Greek Empire.

The city of Athens is huge and seems to disappear into the horizon without end. The skylines remain to this day uncluttered by skyscrapers. While there are high rises, few are above twelve stories.  Millions of people live amongst the ruins, which come to life in the stories of Homer.  While these stories were no longer fresh in my mind the knowledgeable guides brought these Gods and Goddesses back to life and helped me remember some of those wonderful stories that were the reason for my new journey.

My Greek holiday also included a stop at the port of Katakalon which is near the ruins of the original Olympic Games.  The Olympic Torch is lit on these ancient grounds and starts its journey to the host city every two years.  The stadium is believed to be the 5th stadium and is located east of the original site. It is a simple stone flat field with a start line that is also the finish line. Spectators sat on slopes around the stadium for the events.  It is believed there were a few stones seats originally just for the Olympic officials.  These ancient grounds include the Temple of Hera and the Temple of Zeus.  The Olympic museum has magnificent displays of stone works of the period including warriors, gods and mythical creatures.  If you enjoy watching the Olympics you would find this port of call very interesting.

Another reason that I choose Greece was due to Samantha Brown’s Travel Channel shows. She has a few episodes on Greece and the two in particular of the Santorini and Mykonos islands that I could watch over and over again.  She talks about the food, the quaint shops and traditional Greek Coffee.  My Greek holiday included a stop at Mykonos, a magical little island with narrow walkways, windmills, lots of white buildings, Churches with colorful domes and winding sidewalks that you climb up and down.  It’s very picturesque and if you love cats there are plenty to share a little love with as you explore the island. Of course I made sure to have a cup of Greek Coffee at a café while exploring this little island. It was different from any coffee I have had before, a little thick but very flavorful.  You do need to pay attention while exploring the city on the hillside of this island.  You can easily get lost, and that is partly why the city was structured as it is.  The story I heard was that pirates often raided these islands and they had difficulty navigating the narrow passageways and couldn’t escape easily. Another reason for the narrow paths is the strong island winds which dissipate as you walk further into the central part of the city.

A Greek Holiday is a fun and fascinating vacation that includes history and ancient lands to explore.  If you have ever thought about traveling to Greece you won’t be disappointed.

Nancy Holston

Request a FREE Retirement Benefits Summary Analysis online at http://federalretirement.net/assistance.htm.  A benefits specialist will prepare your personal retirement analysis detailing your total benefits and expenses verses total retirement income from all sources. A sample analysis is available for your review.

Learn more about your benefits, employment, travel, and financial planning issues on our site and visit our Blog frequently at https://fedretire.net to read all forum articles.

Visit our other informative sites

The information provided may not cover all aspect of unique or special circumstances. Travel policies and packages are subject to change without notice. To ensure the accuracy of this information, contact travel providers and hotels at the time of your bookings to confirm pricing, itinerary, and all costs. The comments and observations are limited to the author’s personal experience and your results may vary significantly. This article and replies to comments are not intended to substitute for professional travel services. Our reply is time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.“

Posted in LIFESTYLE / TRAVEL, WELLNESS / HEALTH

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Military Credits, Health Care, Survivor Benefits, TSP, and Updates

Posted on Tuesday, 22nd February 2011 by

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Please Forward This Email to Others That Would Benefit From This Information

Military Credit Clarifications

Military credit is one of the most confusing issues for those planning their retirement. We recently expanded our Military Credit section to help federal employees evaluate their personal situation. Buying back your military time can increase your annuity; however, it isn’t always advantageous to do so. The basic retirement eligibility rule for CSRS and FERS requires that you must have at least five years of actual civilian service and be covered under the CSRS or FERS retirement system on the date of retirement.  Therefore, you cannot be a civilian employee for just one year and pay back your military service to achieve retirement eligibility. Many veterans who start working for Uncle Sam later in life must understand this basic principal.

If a veteran with 4 years military service starts working for the government at age 58 for example, he/she must work at least 5 years to age 63 to be eligible to collect an annuity – not counting military buyback time.  This individual could retire at age 63 with 9 years towards retirement (if a military deposit is made) instead of receiving an annuity calculated for just 5 years of service. The annuity would increase from 5% to 9% of their high three average salary.

Review the FERS eligibility charts located online and read Linda Sherman’s excellent article on this subject that has over 80 comments posted that you will find most helpful.

Health Care Costs

Joel, one of our site visitors commented on last month’s article titled skyrocketing health care premiums.  His health care plan costs had increased 5.9% this year plus a total of 7.13% in the two previous years.  However, he had also been paying an additional $124 a month for his daughter’s insurance coverage.  He is saving $106 per month or $1276 a year now that his daughter is covered on his FEHB policy until she reaches age 26 thanks to the new health care legislation.

He and others have suggested too that if your plan costs increase substantially evaluate other FEHB plans and change providers during open season. This is certainly an option for those who can find comparable lower cost providers. Some of the problems encountered when making changes is that you may not be able to find the same coverage for less or find coverage with the desired services, doctors and specialists, especially for those with catastrophic illnesses.

There are good and bad features for every program and benefit we receive. FEDVIP, our dental and vision care coverage providers, offer packages for self plus one instead of having to elect family coverage which is about 40% higher cost. Many retirees would like to see this changed so FEHB participants don’t have to pay higher family coverage costs when they have no children living at home.

Surviving Spouse Issues

A number of spouses have contacted us concerning their eligibility for a survivor’s annuity. A spouse is eligible for a reduced annuity, after the death of an annuitant, if the annuitant elected a spousal benefit when he/she retired. Typically, the spouse MUST sign the retirement forms concurring with a “No Spousal Annuity Election.”

If a spousal annuity is elected, when the annuitant’s death is reported to OPM, they will adjust the annuity to the reduced amount and send it to the spouse of record.  Survivors can call OPM at 1-888-767-6738 to verify their status for a survivor’s annuity if in doubt. The surviving spouse will need the annuitants SSN and/or CSA retirement account number. Call early in the morning otherwise you will more than likely get a busy signal. Printout our Master Retiree Contact list and keep this with your retirement paperwork. Also, all of the links on this document are active; keep it on your desktop to easily link to the referenced web sites. Feel free to send the contact list to others that will benefit from its use.

Another issue that we run into is whether or not the annuitant was married before he/she retired or married their current spouse after they retired. If the annuitant married after retirement he/she can elect a new survivor’s benefit for their new spouse if desired but it has to be done no later than two years after the date of marriage. Many retirees that remarry don’t make this election because it reduces their annuity by 10% to cover the spousal election.

TSP Discussion

My TSP account fully recovered to pre 2008 recession levels this past year. On January 31, 2011 I converted all of my TSP account back to the G-Fund anticipating a market pull back after the long run up we had in 2010. I was also apprehensive about the economy as a whole with food and fuel prices rising and world unrest.

The day after I made the move the DJIA rose by 100+ points and along with the S&P rose sharply until 2/22/11 when oil prices shot through the roof and Mideast tensions escalated. Many, after making an investment adjustment tend to regret the move when the market doesn’t immediately corroborate their actions. This is natural, however, when you go back and forth jumping at every turn you tend to lose considerably more than you gain and it does pay to stay the course at times.

There was so much hype about the market going to 14,000, few pundits anticipated a correction. It was actually a good thing when the THRIFT capped the number of trades you can make each month; it prevents participants from over reacting, bouncing in and out of the equity funds as the market turns.  The nice thing about the G-Fund is that it is the only fund in the universe that is guaranteed never to go down in value. You can watch for a correction to bottom out, typically about a 10% drop, and then switch back into equity funds to capture more gains. No one can time the market and you have to sometimes stay the course to protect your nest egg.

UPDATES

  • New Job Postings for Retirees – We had several new and interesting jobs posted on our employment page recently. Government Contract Solutions, Inc. (GCS) is looking for retired federal employees to fill acquisition specialist, administrative assistants, secretaries, and contract specialist positions. They posted 5 new listings on our jobs board last week and Customs and Border Protection (CBP) posted contract specialist and budget analyst jobs targeted to reemployed annuitants.
  • Duplicate 1099-R– You can download duplicate 1099-R forms from OPM’s retiree web site if you are a registered user. To become a user you have to call OPM, their contact numbers are listed on our site, go to http://federalretirement.net/faqs.htm and click on the Contact OPM link for the web address and phone number. If you call, they will also send out a hard copy of the form to you if desired.
  • Direct Deposit Change of Address – Contact OPM at 1-888-767-6738. You will need to have your CSA number handy when you call. Go to http://federalretirement.net/retireforms.htm to review the instructions on how to complete the SF-1199 direct deposit forms and other options to accomplish this.
  • Proposed Cuts – President Obama’s budget proposes extending the federal pay freeze to 5 years. Several other bills in congress propose extending these pay cuts to include any step or pay increases of any kind and a hiring freeze that only permits hiring of 1 person for every 2 that retire or leave for any reason.  Nothing has been passed as of yet and it is too soon to panic. All of the national associations and unions are lobbying congress to moderate or eliminate these proposals.
  • Projected Retirements – Many retirements are projected as each day 10,000 baby boomers turn age 65 for the next 19 years! In 2011 637,000 federal employees will become eligible for regular retirement according to OPM’s Analysis of Federal Employee Retirement Data Report. Add to this many who are eligible for early retirement and another 200,000 Postal employees that will become eligible over the next few years. Significant delays for processing retirement paperwork have been reported and if you are planning to retire be sure to submit your paperwork well in advance of your planned departure date.

Learn more about your benefits,  employment, travel, and financial planning issues on our site and visit our Blog frequently at https://fedretire.net to read all forum articles.

Request a Retirement Benefits Summary Analysis and receive a personal retirement analysis. A sample analysis is available for your review. This service is provided by independent agents that are not affiliated with www.federalretirement.net or Bookhaven Press LLC.

Visit our other informative sites

The information provided may not cover all aspect of unique or special circumstances, federal regulations, and financial information is subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our articles are not intended nor should they be considered investment advice. Our reply is time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

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

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TSP Fund Performance, Skyrocketing FEHB Costs, and Updates

Posted on Thursday, 27th January 2011 by

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I have always been fairly conservative with my TSP account considering that I’m now retired and may need these funds down the road. I look at my TSP performance from several perspectives. First, I compare my contributions to market value for total gain, the amount my account has grown since retiring, and then look at year to year statistics to track performance for recovery periods such as the latest recession. My TSP account is now worth more than it was in 2008 and my total account has grown substantially above my contributions over the years. I actively manage my account moving funds from the conservative G Fund to other funds as the business environment changes.

Even though the TSP posted its second year of positive returns you may not have fully recovered suggests Linda Duncan, our Benefits and Finance Forum host. If the funds have done so well in the past two years, how come your account balance might not have fully recovered from the devastating market downturn in 2008?

In 2008, the C, F, and I funds lost between 36.99% and 42.43%. The C fund gained a total of 41.74% in 2009 and 2010 combined, yet your account balance has not fully recovered. If you had $100,000 in the C fund in 2008 and left the funds in the C fund through 2010. The year-end accounting would look like this:

  • 2008: $100,000 – 36.99% = $63,010 new balance
  • 2009: $63,010 + 26.68% = $79,821 new balance
  • 2010: $79,821 + 15.06% = 91,842 new balance

Therefore, if you left all your money in the C fund and did not contribute additional funds, you are not quite back to what you had before 2008.  For the C fund to return to the pre-2008 balance of $100,000, the C fund would have to earn at least 8.89% in 2011.

Simply put, if you have a 25% loss on your savings followed by a 25% gain, do you have the same amount of money that you started with? The answer of course is no because of the amount of money the percentage is derived from is different.

Check your historical account balances in your TSP account at www.tsp.gov to determine if your TSP account has made a full recovery yet.

Skyrocketing FEHB Costs

I reported in my October 2010 article that my FEHB premium increased 12% and since then many feds have been shocked to discover their premiums went even higher. Abby’s FEHB coverage in New York increased $188.03 per month and her carrier attributed the increase to the new health care bill. She immediately contacted her Senator’s staff because she thought that the new health care bill would be cost neutral.  The staff at first was at a loss for word;  however, they called back several days later to advise her that “the bill included an increase for all federal workers in 2011 and that in the future retirees may need to absorb more of the health care costs.”

I’ve known Abby for many years and she was a respected senior federal manage.  When you talked with her you knew you were getting a straight answer, not a politically correct reply. You may not have liked the response but you knew you didn’t need any clarifications after the discussion. That is what we need from our politicians today, straight talk based on known facts and research not subjective conjecture.   I met with my Congressman about this and other issues in late 2010 and he advised me that he voted against health care reform for this and many other reasons.  When they added children up to age 26 to all existing policies and now insurers can’t exclude anyone with pre-existing conditions and then waived signup making it OK to sign up when you get sick, costs for insurance companies are projected to skyrocket! Now that the new regulations are starting to take effect, the administration has granted hundreds of waivers because companies simply can’t afford to maintain coverage under the new system. If you recall, Nancy Pelosi said when they placed the new health care legislation up for a vote and I quote, “We have to pass this bill so we can find out what is in it.”

Unfortunately… what I and many others are finding out is that they should have READ THE BILL and understood what was in it before passing it! Would you buy a house without a walk through, checking out the neighborhood, a home inspection, and understanding what you would have to pay for it!

Updates

  • Roth Conversion – If you converted a part or all of a retirement account to a ROTH in 2010 to take advantage of paying the taxes on the withdrawal in 2011 and 2012 you will received a 1099-R from your brokerage account. The statement will show the full amount of the withdrawal. The 1099-R doesn’t show the transfer to a ROTH account. Don’t panic, you will receive a Form 5498 showing the transfer and will use that to substantiate paying the taxes in 2011 and 2012.
  • Need a Break from the Cold? Read Nancy Holston’s January article on great travel Deals this time of year. After spending the past month getting out in the weather to participate in her favorite activities she needed a break from winter so she can survive winter.
  • The TSP is launching the new L 2050 fund on January 31. Check out the new fund on www.tsp.gov. Their new web site is far more functional than the older site and I like the feature where you can go back and check your funds value on any past date.  Go to the date you retired and print out the report and keep it with your retirement paperwork. It provides a basis for determining your gain since retirement.
  • House Bill H.R. 408 is a five year spending reduction bill.  The President mentioned this in his State of the Union Address on January 25th. Section 401 is titled “Extension of Federal Employee Pay Freeze.”  The bill proposes extending the pay freeze to 2015. There are 24 cosponsors of the bill and only time will tell if it is passed.
  • COLA calculations for 2012 are still pointing in the negative direction which doesn’t bode well for a cost of living increase next year. There is still plenty of time for inflation to raise its ugly head but I wouldn’t hold my breath. That seems hard to believe when you consider how fast our health care premiums; fuel and food prices have escalated over the past year!

Learn more about your benefits,  employment, travel, and financial planning issues on our site and visit our Blog frequently at https://fedretire.net to read all forum articles.

Request a FREE Retirement Benefits Summary Analysis online at http://federalretirement.net/assistance.htm.  A benefits specialist will prepare a personal retirement analysis detailing your total benefits and expenses verses total retirement income from all sources. A sample analysis is available for your review.

Visit our other informative sites

The information provided may not cover all aspect of unique or special circumstances, federal regulations, and financial information is subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our articles are not intended nor should they be considered investment advice. Our reply is time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS

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Need a Break from the Cold? Travel Deals Abound in January!

Posted on Wednesday, 19th January 2011 by

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I’ve been retired over two years now and the winter before retiring I had dreams of spending my winters indoors after retirement looking out into the woods during snow storms watching snow flakes gently float to the ground while Cardinals and Blue Jays feasted at the feeders scattered amongst the trees.  I would drink my coffee while reading the newspaper and enjoy not going out into the cold.  The fact is I’ve discovered that I am not the type, yet anyway, to just sit in the house and relax during the winter.  I will admit watching the snow fall and the birds eat is beautiful, but the fitness center is calling me, I want to see the latest movie and I want to have lunch out with a friend.  After spending the past month getting out in the weather to participate in my favorite activities I need a break from winter so I can survive winter.

If you’ve signed up for weekly saver fares from your favorite airline or the many agencies that send weekly emails with the latest travel deals then all it takes is a little time online to find a getaway from winter for a week or two and taste some of that warmth that’s still three months away.  Whether you just want to relax on the beach, go to an amusement park in a warmer climate or cruise the Caribbean or Mexican Riviera, with a little time you can find something that fits your budget.  I found a great deal on an 11 night Caribbean Cruise, balcony suite with ship board credit and a free dinner in my choice of specialty restaurants on board.  All for what I would normally pay for an inside cabin.  But there may be some of you that love playing in the snow.  There are deals for you snow bunnies also!

If a last minute getaway is more to your liking, then watch your weekly saver fares for a warm spot with a low fare.  Your next move is finding lodging but don’t forget to look at vacation rentals.  It is far better than a hotel, more relaxing and you have the option of fixing your own meals or eating out.  I have one recommendation about traveling to Florida in the winter.  Make sure you’re not going during the Daytona 500 before you click on “complete purchase” for that great airfare.  I made that mistake a few years ago.  I knew car rentals in Florida are very reasonable.  After buying my ticket I couldn’t find any rental car under $400 for the week.  I could not figure out why until I got on the airplane to travel to Orlando.  The NASCAR gear that covered nearly ever passenger on the plane cleared things up quickly!

Here are some of the deals available now and a list of resources to assist you in a finding your own special winter getaway, whether you live in a cold climate or want to go skiing to rejoice the fun that all those snow flakes can create.

  1. www.bookingbuddie.com has a list of hotel rooms under $100 a night, starting at $28 in Cancun Mexico up to $91 in Jamaica.
  2. www.Groupon.com and www.LivingSocial.com offer daily deals for lots of items including an occasional weekend getaway.  Living Social had a weekend getaway to Virginia Wine Country last week at the Rosemont Manor with a price of $379 for 2 nights in a luxury suite.
  3. www.vacationstogo.com has a list of deals from ports all over the US to a variety of destinations.
  4. http://Disneyworld.disney.go.com Walt Disney World has special resort rates for this winter and spring.
  5. www.usairwayscruises.com has a list of deals at great prices.  You can sign up for their weekly cruise deals email.
  6. http://cruises.continental.com also has a list of deals at great prices.  Sign up for their weekly cruise deals for a list of their best deals.
  7. www.orbitz.com can give you a snap shot of airfare deals.  I recommend you also check the airlines website which may match the price and have lower fees for a savings.
  8. www.kayak.com offers a weekly email with their best travel deals.  They will also keep track of airfares for your favorite locations and let you know when there is a sale or package deal you might want to take advantage of.
  9. www.independenttraveler.com offers a snapshot of weekly deals in an email subscription.  Their current focus is winter escapes with a list of the top 8 destinations.
  10. www.crucon.com is having a January Sail-a-bration with a list of deals weekly.  Their newsletter sent weekly to your email advising of the latest deals, some are so good you don’t want to pass them up.
  11. www.snow.com for a list of deals to go play in the snow out in the Rockies!
  12. www.onthesnow.com not only gives you the snow reports for any area of the country they also have links to show you current deals at ski resorts anywhere in the US.
  13. www.ski.com provides a list of deals but will also customize your ski vacation to meet all your expectations.

Well, that’s it for this month!  As for me, I’m off to sit on my balcony looking at the azure color of the Caribbean as I float by islands and enjoy my coffee and read my kindle…or maybe I’ll explore the ship, swim and have lunch with my friends.  Sitting is just not my style, yet anyway!

Nancy Holston

Request a FREE Retirement Benefits Summary Analysis online at http://federalretirement.net/assistance.htm.  A benefits specialist will prepare a personal retirement analysis detailing your total benefits and expenses verses total retirement income from all sources. A sample analysis is available for your review.

Learn more about your benefits,  employment, travel, and financial planning issues on our site and visit our Blog frequently at https://fedretire.net to read all forum articles.

Visit our other informative sites

The information provided may not cover all aspect of unique or special circumstances. Travel policies and packages are subject to change without notice. To ensure the accuracy of this information, contact travel providers and hotels at the time of your bookings to confirm pricing, itinerary, and all costs. The comments and observations are limited to the author’s personal experience and your results may vary significantly. This article and replies to comments are not intended to substitute for professional travel services. Our reply is time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

Posted in BENEFITS / INSURANCE, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, WELLNESS / HEALTH

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Retirement Precautions, TSP Changes, Updates, and Retiree Jobs

Posted on Sunday, 2nd January 2011 by

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Recently OPM clarified a number of issues around interim annuity payments and what retirees can expect when they first leave federal service.  It is essential that federal employees have sufficient cash available and are financially prepared when retiring to allow OPM to complete a final adjudication of their claim.

OPM is now processing applicants in an average of 133 days however they can take up to a year to process a retirement application if information is missing or problems are encountered.  Last year OPM processed over 100,000 retirements, a significant increase over the previous year. The Federal Times reported that “retirement applications saw an unexpected spike in October. That month’s 11,411 applications were 42 percent higher than October 2010, and 60 percent higher than October 2009.”  With the possibility of many agencies offering VERAs and VSIPs in 2012 the delays can only get worse.

Many are receiving interim payments for far less than they anticipated due to a number of issues.  OPM indicates that annuitants will receive approximately 90% of their expected NET monthly payment, less federal income tax withholdings.  NET payments equal what is remaining after deducting health care and life insurance premiums from the gross amount.  I received an interim payment of 70% and my claim was processed in 90 days when I retired.  Some have reported receiving as much as 50% less due to extenuating circumstances and the problems still not resolved a year after they retired.

FERS retirees need to be aware of the fact that OPM doesn’t include the FERS Supplement in the interim payment because they don’t have the data available until the retirement is completely processed.  OPM reported that a number of factors cause reduced interim payments or prevent OPM from initiating interim payments. These factors include:

  • Court orders that are on file at OPM.  Court orders can contribute to as much as a 50% reduction in interim payments. Check out our Divorce Forum for clarifications and informative articles on this subject.
  • Part time service
  • Unpaid military deposits
  • When a redeposit wasn’t paid for refunded service creditable towards disability retirement
  • Employees entitled to special retirements for LEO, FF, ATC or other special retirement programs
  • CSRS offset applicants with 90 days of or over the age of 62
  • Non-deduction service performed after 10/1/1982 creditable under CSRS where the deposit has not paid in full
  • Deposits have not been paid for FERS creditable non-deduction service
  • VA part time Direct Medical Solutions (DMS) physicians, including doctors, scientists, and surgeons
  • Refunded service  creditable towards CSRS non-disability retirement ending on or after 3/1/1991 where the deposit has not been paid
  • Excess LWOP
  • Service  that is unverified or missing
  • Where an insurable interest survivor election is made
  • When no survivor election is made
  • Receipt of military retired pay

Don’t be left in a lurch when you leave. Check out my article titled “Can You Survive on Interim Retirement Checks” to avoid OPM retirement processing delays when you leave and learn how to be prepared for the unexpected.

TSP Salary Deferral Amount Increased

A few months ago the IRS released the new deferral limits for the TSP. For 2012 you may defer up to $17,000 into your TSP. If you are 50 or older you may take advantage of the catch up provision and defer an additional $5,500. A common question that I’m asked is, if I’m turning 50 during 2012 when can I start deferring the additional amount. The answer is if you are turning 50 during 2012 and wish to take advantage of the catch up provision you may begin the extra deferrals with the first payroll of 2012.

To change you TSP contribution amount you will need to fill out form TSP 1.

To take advantage of the catch up provision you will need form TSP-1-C.

The end of the year is also a great time to review your beneficiaries. A number of life changing events can happen throughout the year. If you’ve not reviewed your beneficiaries for a while I would recommend taking a few moments to review them. I had a client pass away a few months ago. He had changed his beneficiaries without his wife’s knowledge. When he had passed away unexpectedly I had to inform his wife that she wasn’t the sole beneficiary of his accounts. I can say first hand that visiting the spouse in this case was very difficult.

Paul Risser, our new Financial Planning Forum Host, submitted this timely update. Visit his forum for additional guidance. You can add Paul’s articles to your email newsletter list by clicking here and type in your email address.  Instructions on how to update your newsletter profile will be emailed to you.  Paul will be contributing insightful articles on economic trends and retirement planning targeted towards federal employees and retirees.  We posted the following articles that you will find helpful:

  • Why Financial Planning:  What It Is and what can it do for you
  • Next Article: What Beneficiaries Need To Know: What do you do when an account owner passes away?

Updates

Recent Forum Host Articles:

Retiree Job Lists

We continue to post new job listings on our Jobs Board from employers nationwide that are looking for retired federal employees. Many retirees supplement their retirement income with full or part time work. Here are several new job listings that you may find interesting:

  • Comptroller / Accounting Manager for the Washington D.C. area. Maintain accounts of assets, liabilities, commitments, receipts, disbursements and other financial transactions of a federal agency.
  • Coupon Merchandisers for  Reston/Great Falls, VA,  Collinsville, VA,  Richmond/Chesterfield, VA,  Tuscaloosa, AL,   Greensboro/Centreville, AL, and  Bangor, ME. Pay from $8.00 to $9.50 per hour and flexible hours.
  • Ski Resort Jobs – Vail CO, UT, CA and other locations. (Multiple positions)
  • Telesales Exec Trainee NE I, Orlando Florida

Learn more about your benefits,  employment, travel, and financial planning issues on our site and visit our Blog frequently at https://fedretire.net to read all forum articles.

Request a FREE Retirement Benefits Summary Analysis from a local adviser. Includes projected annuity payments, income verses expenses, FEGLI, and TSP projections. A sample analysis is available for your review. This service is not affiliated with www.federalretirement.net

Visit our other informative sites

Helpful Retirement Planning Tools
Distribute these FREE tools to others that are planning their retirement

The information provided may not cover all aspect of unique or special circumstances, federal regulations, and financial information is subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our articles are not intended nor should they be considered investment advice. Our reply is time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS

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Tighten Up! A Flash From the Past, Retirement Cost Analysis, & Updates

Posted on Friday, 31st December 2010 by

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Please Forward This Email to Others That Would Benefit From This Information

Tighten Up …….

I can vividly recall dancing to this song by Archie Bell and the Drells in the late sixties with my wife of 41 years now. I’m sort of stuck in the 60s these days with XM Channel 6 and this song brought back many memories, good ones I might add that are in conflict with what is going on today. I can hear the guitar riffs and lyrics as I write this.

Do the tighten up

Just do it

Come on and tighten up…

We all have to tighten up in so many ways today with no cost of living adjustments for social security and annuity payments, and now an across the board federal two year pay freeze.  Add to the mix inflation that government hides by fudging the Consumer Price Index (CPI). Did you know that food and fuel are excluded from the CPI calculations? I go to market with my wife and everything costs $3 and up, butter has increased over 100% in the past year, meat costs are through the roof, a small roast costs $12 or more today and only a half of that 2 years ago. We all get the point especially when you shop too, and by the way make that necessary stop at the gas station where gas now costs $3 a gallon in WINTER, projected to be $5 a gallon this summer. Yes, we all have to tighten up because of government’s out-of-control spending.  Check out the suggestions in my previous article on ways to cope with rising prices.

Most of us understand that annuitants and actively working employees from all sectors must share the burden. Do we like it – hell no! However, this sacrifice has to spread across the board to the state and local municipalities as well. A 2007 study estimated the unfunded liabilities of state and local employee pension systems (including teachers) to be as large as $1.4 trillion according to a University of Missouri–Columbia study.

Local and State government worker’s benefits are more generous than the federal sector in many cases. I requested copies of the Robinson Township, PA,  municipal worker’s and Montour school teacher’s contracts under the Freedom of Information act. They charged me – a local resident – $100 for copies and wouldn’t provide electronic versions. I was shocked at how generous their benefits are compared to the federal and private sectors.

Teachers work 190 days, 7.5 hours per day or 1425 hours per year. The highest salary for the current school year is $99,665 which is reached after 17 years, one step for each year of service.  This doesn’t include additional pay received for working summer programs, curriculum writing, detention, relinquishment of planning period, homebound instruction, and any site assignment beyond their 7 ½ hour normal school day. When you divide $99,665 by 1425 hours worked teachers with 17 years of service earn $70 an hour and unlike federal workers, many in the private sector, and all on Social Security their pay raises are fixed under a 6 year contract through 2013 at what I calculate to be approximately 2.5 to 3% per year. It isn’t only retirement, teachers also receive 10 days of paid sick leave plus 3 personal days, up to 7 days bereavement leave, and time off with pay for jury duty, certain athletic events and union association business activities each year plus up to a one year sabbatical leave with half pay after just 10 years on the job.

Pennsylvania teacher retirement benefits are based on the following formula for what they designate their Class TD benefit:

2.50 %

X Final Average Salary

X Credited School Service

Yearly Benefit Payment

+

2.00 %

X Final Average Salary

X Credited Non-School Service

Yearly Benefit Payment

Teachers with 35 years of service (at any age) and an average high three salary of $97,265 would retire under their traditional “defined benefit” (DB) pension system with a pension of .025 x 35 x $97,265 = $85,106 plus social security if eligible. Combined retirement earnings can be more than what they made while working and this calculation doesn’t include creditable non-school service for the second part of the equation or any additional pay received for time worked beyond their normal 71/2 hour day! A FERS federal retiree with the same high three average salary receives 1% times years of service times average salary for $34,042 per year!

It’s not just teacher contracts, municipal worker too receive generous benefits including 18 paid sick days, paid time off for 9 holidays, their birthday, plus 2 personal days per year, excellent pay, and attractive retirement packages. States and Municipalities across the country are on the verge of bankruptcy and residents face huge tax increases to pay for the large unfunded retirement liabilities and all too generous pay and benefits packages. It’s time for teachers, state and municipal workers, union leadership, and municipal managers and school boards to take Archie Bell and the Drells’ “Tighten Up” routine to heart and join in the shared sacrifice.

Request copies of your township’s teacher and municipal worker’s contracts, insist they fully disclose unfunded liabilities, salary and benefits, and hold your elected representatives accountable. You too will be surprised at what you and your neighbors are funding.

Retirement Cost Analysis Update

Matthew, a site visitor sent a message asking for clarification of the Retirement Cost Analysis Spreadsheet example that I have online. He noticed that the total take home pay of the retiree in the example was less than the employee’s total expenses pre-retirement. The example leaves out the spouses income so the retiree will know what their total expenses will be based on the annuitants income only. A spouse could be laid off or stop working for other reasons. I neglected to mention that in the example and updated it to reflect this. It also leaves out Social Security income. I retired under the CSRS system however I did add a Social Security entry line on the form. You would be surprised to find out how many retirees find their income in retirement insufficient and below their total expenses if not immediately several years after they leave due to inflation and other factors. There are many reasons for this including couples marrying later in life and federal workers in their late 50s and early 60s have college age children and major expenses. That is just one reason why I highly recommend feds pay off their mortgage before they retire. My October 2010 article available at https://fedretire.net/?p=373 discusses the process I used to pay off my mortgage before I retired.

For a comprehensive cost verses expense analysis I suggest using the Retirement Planning & Expense Analyzer that you can download online at http://fedretiresoftware.com/ that was developed by John Talbot, a federal retiree. You can download a free trial version of their CSRS and FERS Benefits Calculator and Retirement Planner software program. This software has been used by tens of thousands of federal employees, since 1999, to thoroughly investigate the affordability of federal retirement. It is compatible with all 32 bit windows software from Windows 95 to Windows 7.

For a professional review of your personal situation you can submit an Assistance Request online at http://federalretirement.net/assistance.htm.  A Benefits Specialist will use the professional version of this software to prepare a free analysis of your entire situation with trend lines that reveal you and your spouse’s expenses verses total retirement income from all sources.  We posted a sample analysis online for you to review. Notice the trend lines on the report, they are very revealing.

UPDATES

  • Beginning this month 10,000 baby boomers a day are turning 65. This trend is projected to continue for 19 years, I turn 65 in 3 years. Can’t believe just how fast the time is flying by.
  • Nancy Holston, our travel editor, talks about the ins and outs of Travel Insurance in her recent article that you will find helpful when planning your 2011 trips. She touches on the many issues that must be considered including extended coverage, medical treatment while away from home and much more.
  • FEDWEEK offers a free report titled The 14 Worst Retirement Planning Mistakes a Federal Employee Can Make. It talks about not leaving retirement to chance by not attending a retirement seminar to the effect of WEP and GPO that you will find helpful. Fedweek publishes a number of helpful booklets on retirement subjects.
  • A two year federal pay freeze was passed during the Lame Duck session and affects most federal pay scales and there will be no COLA increase in 2011 for annuitants.
  • The 2% Payroll Tax Decrease in 2011 – FERS employees will notice a 2% pay increase this year due to the temporary 2% reduction in the Social Security Tax rate. CSRS employees do not pay Social Security taxes and will not see an increase in take home pay.

Learn more about your benefits, employment, and financial planning issues on our site and visit our Blog frequently at https://fedretire.net to read all forum articles.

Visit our other informative sites

The information provided may not cover all aspect of unique or special circumstances, federal regulations, and financial information is subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our articles are not intended nor should they be considered investment advice. Our reply is time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS

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Travel Insurance, Peace of Mind when you’re Away From Home

Posted on Monday, 27th December 2010 by

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You have just made a deposit on a special vacation to celebrate an anniversary, mark a special event or you are finally going on that dream vacation.  Planning your trip is your first step and there are things to consider, picking out the destination, selecting a hotel, will you need a rental car, the flight and resort selection or cruise line itinerary.

If you book a cruise, buy a package deal at a resort or book a group tour the agent handling your vacation plans will likely suggest purchasing travel insurance.  If you think only in terms of protecting your vacation investment then travel insurance may seem unnecessary.  However, travel insurance is much more than securing the funds you spent to go on your vacation, travel insurance can be a life saver.

The best reason to buy travel insurance is for peace of mind.  Now that we’re in that “senior” area, and unfortunately we’re not talking about our school days, we need to think about unexpected events that could impact our dream vacation plans.  As your vacation dates approach you or a parent could become ill and need care leaving you in a position of deciding what to do about your vacation.  I once found myself in severe pain in the middle of the night while away from home on business with only a small town hospital for treatment.  Fortunately it was not a serious problem but it is an event that I remember when I plan a vacation; you could have an unexpected health problem.  You need to determine your accessibility to medical services at your vacation destination.

If you are going to be on a cruise or visiting an exotic remote area you may require special transportation to a medical facility in an emergency. I want to be sure the insurance policy covers the cost of an unexpected illness or medical emergency, especially if it requires special transportation to a proper medical facility for treatment.  You could end up paying thousands of dollars without travel insurance.  The last thing you want to be worrying about is how to pay all the costs when you need to focus on your recovery or that of a loved one.   If your vacation plans include a cruise, cruise lines are normally only prepared for minor medical problems while at sea.  If you need significant medical care the cruise ship will arrange for your transport from the next port of call to the nearest medical facility in a medical emergency, but you will be responsible for the costs.  Travel insurance will cover those costs up to the limit of the policy you purchase.  Some policies include an option to pay some of your medical expenses as well, depending on your needs and the policy you decide to purchase.

A second concern I have when selecting a policy is covering the cost of a delay in arriving at my departure point due to bad weather, especially when my favorite time to get away is winter.  I want to get out of the cold and enjoy my warm vacation, not sit in an airport wondering just how long the delay will be and how will it affect my reservations etc.  If you are going on a cruise and miss the embarkation of your ship some policies will pay for your transportation to the next port so you won’t “miss the boat” for the entire cruise.  Travel insurance can pay for unexpected hotel needs, additional costs for change in flights as well as lost/damaged luggage up to the amount specified by the policy.  Check your policy before you leave so you’ll know what kinds of support services are available through your policy.  Some insurers provide support 24/7 with an 800 number you can call should you need help changing flights or getting a hotel if you are delayed by bad weather.

If you have a last minute family emergency that forces you to cancel your vacation plans, nearly every policy includes trip cancellation with a list of what the insurance company will reimburse you for, up to the actual cost of the vacation.

Resorts and cruise lines offer their own travel insurance, however they may not be the best choice since they are directly involved in your travel, i.e. have a vested interest in whether they reimburse you or not.  There are many companies that offer travel insurance and you can easily compare plans on the internet selecting the one that best meets the needs of your specific travel plans.  These policies typically cost less than the insurance offered by the cruise line, resort or tour company.

The peace of mind I get from buying travel insurance is worth every penny.  Travel insurance policies range in price from $10 to $20 a day per person depending on your age and preexisting  medical conditions and the destination of your travel plans.  Be sure to read your policy thoroughly and take a copy along.  When you complete the policy information, be sure you provide accurate information since any discrepancy could lead to a denial of a claim.

Safe and healthy travels!

Resources:

Travel Insurance web sites:

www.insuremytrip.com
www.squaremouth.com
www.mnui.com/quotes.asp
www.travelguard.com/travelinsurance
www.quotewright.com

International Travel Insurance quotes:

https://insurancequest.com

Reviews of Travel Insurance providers:

www.travelinsurancereview.net
www.travelinsurancereviewer.com

Nancy Holston

Learn more about your benefits,  employment, travel, and financial planning issues on our site and visit our Blog frequently at https://fedretire.net to read all forum articles.

Visit our other informative sites

The information provided may not cover all aspect of unique or special circumstances. Travel policies and packages are subject to change without notice. To ensure the accuracy of this information, contact travel providers and hotels at the time of your bookings to confirm pricing, itinerary, and all costs. The comments and observations are limited to the author’s personal experience and your results may vary significantly. This article and replies to comments are not intended to substitute for professional travel services. Our reply is time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

Posted in UNCATEGORIZED

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