Posted on Tuesday, 1st December 2009 by Chuck Jumpeter

Well, I don’t know about you folks but this is been one incredible summer and fall for me. On a personal note I finally got my man cave finished and I have been working diligently over the last several months helping my daughter and her husband move into their new home on Long Island. I think I’ve finally completed my list of “dad things.” With all the travel back and forth to Long Island it is only in the last couple of weeks that I actually had the time to find the top of my desk again and get busy writing The Forum. 

Professionally I have, as I’m sure you have, been monitoring the debates over health care reform. The intensity and negativity of the rhetoric on this issue has been nothing shy of overwhelming. This will clearly be one of the most significant domestic challenges that we will face in our immediate future. Just recently, Government executive.com announced that the federal health insurance premiums will rise by another 8.8% for calendar year 2010. Especially for those of us living on a fixed income, like CSRS, who will not get a COLA this year, that’s a significant bite. Hopefully, our elected officials will stop their partisan bickering and resolve this challenge in a way that addresses the interests of all parties adequately. One thing is certain; this will be an interesting debate. 

There’s an old story about a man, let’s call him John Smith, who was going to take a bus trip to visit his family in South Carolina. He went into the bus station and purchased his ticket. While waiting for the bus John was walking around the station and noticed a scale that promised to tell him not only his weight, but also identify other personal information. Curious, he stepped onto the scale, and dropped in his quarter. After several moments of whirring and clanging, the scale produced a printout, which stated, “Your name is John Smith. You are 206 lbs., which is 26 lbs overweight. You are waiting for the bus to South Carolina to visit your family. Have a nice day.” 

John was dumbfounded by the accuracy of the scale and couldn’t believe it possible. After several minutes he figured it had to be some kind of trick and decided to give it another try. So, back onto the scale he went and in went another quarter. Once again, more clanging and whirring and out came another printout which said, “Your name is still John Smith. You are still 206 lbs., which is still 26 lbs overweight. You are still waiting for the bus to South Carolina to visit your family. Have a nice day.”  

Now John was beside himself and just couldn’t believe the scale could know these things. As he wondered how the scale knew these details of his life, John noticed a novelty shop across the street from the bus station. He visited the novelty shop and purchased a wig, a stick-on mustache, a pair of toy horn-rimmed glasses and a cap. Armed with his new “identity” and determined to fool the all-knowing scale, he once again entered the bus station and stepped onto the scale. He deposited his quarter and after the whirring and clanging stopped, the scale once again produced a printout which said, “Your name is STILL John Smith. You are STILL 206 lbs., which is STILL 26 lbs overweight. You are STILL planning to visit your family. However, while you were wasting your time in the novelty shop, you missed your bus to South Carolina. Have a nice day.” 

While the point of this little story may seem to have much to do with health and wellness, it’s also not as subtle as you may think. Consider the following: 

• The US spends more than any other industrialized nation on health care, yet we only rank 38^th in the quality of our overall health.
• Annually we spend $147 BILLION on the health cares costs related to obesity – double that of 10 years ago.
• By 2018, our projected spending for obesity costs will rise to a whopping $344 BILLION. That number will represent a full 25% of our total health services spending. It is projected that 50% of our population will be at least 30 pounds overweight by that time.
• The Long Island Press for October 1 – October 7, 2009 reported, in an article titled “A Growing Problem,” that …,since 1980 the number of American children who are obese more than doubled for ages 2 to 5, almost tripled for ages 6 – 11, and more than tripled for ages 12 – 19. Today, about one out of three children and teenagers in the U.S. is overweight or obese.”
• Dr. Joanna Dolgoff, a pediatrician specializing in treating childhood obesity, stated, “Doctors have been finding cases of what used to be ‘adult’ diseases [such as heart disease, type 2 diabetes, and conditions including high blood pressure and elevated cholesterol] in overweight teenagers and children as young as age 6”
• Eric Finkelstein, Ph.D., at the National Conference on Childhood Obesity in June stated, “The average U.S. taxpayer pays $175 per year to finance obesity.” Can you say Super Size that?
• In addition to heart disease and cancer, the correct usage of properly prescribed prescription medications has now become one of the top ten causes of death in the U.S.
• Dr. Bruce Miller from Texas says, “One of the primary activities of physicians today is to keep track of the ways people have found to kill themselves.” 

Clearly, these data indicate that when it comes to wellness we, as a society, have missed the bus.

It may seem that these statistics focus on our growing waistlines; however, obesity is directly related to and exacerbates numerous other serious problems such as cancer, heart disease, stroke and related cardio-vascular conditions, diabetes, renal failure, etc. Our trips to that novelty store provide us with disguises like, “I’m not obese, I’m simply a ‘plus’ size,” or “I like myself this way,” etc. However, when we put in our quarter and wait for the whirring and clanging to stop, our note will continue to read, “You are STILL XXX pounds overweight.” 

In the coming months I will provide you with numerous suggestions on how to maintain, or regain, control of your own personal wellness starting with some simple advice for shrinking your waistline. In the meantime, here are a few simple techniques to help you and your families stay healthy for the holiday season:

• Eat 5 fruits and vegetables per day
• Get one hour of physical activity per day (does not need to be consecutive)
• Limit consumption of sugar-sweetened beverages
• Eat breakfast daily (Shaklee’s Cinch is a great choice!)
• Switch to low-fat dairy products
• Regularly eat family meals together
• Limit fast food, take out, and eating out
• Prepare foods at home, as a family
• Eat a high fiber diet
• Be sure to take your supplementation to support your immune health. Your favorite version of Vitalizer along with NutriFeronâ provides a solid foundation for immune function. For children ages 12 and younger choose Incredivitesä; and for infants and toddlers age 6 months to 4 years, use ShakleeBabyä Multivitamin & Multimineral Powder.

 Until next time, “ALL ABOARD!”

 Yours in Good Health,

 CJ

Posted in RETIREMENT CONCERNS, SURVIVOR INFORMATION, UNCATEGORIZED, WELLNESS / HEALTH

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Posted on Sunday, 15th November 2009 by Linda Sherman

(Reviewed and Updated 2/17/2023) If you are a current federal employee with prior military service, you should consider making a deposit for your military service.  There are two reasons why making a military deposit may be beneficial:

1. You could retire sooner, or
2. Your can increase your retirement annuity.

By making this deposit, your years of military service are included in your civilian retirement computation, just as if you performed that service under your current retirement system.   Unless you are receiving a military retirement, making a military deposit is usually a great deal, often paying for itself within a year or two of retirement.

Retire Sooner

A military deposit may allow you to retire from your civilian position earlier than with your civilian service alone.  If you reach your Minimum Retirement Age (MRA) before you attain the required years of service, this may be your ticket to retire earlier than anticipated.  For example, if you began your federal civilian career at age 28 as a FERS employee and, you were born in 1955, your MRA is 56, but you will not attain 30 years of federal civilian service until you reach age 58.

If you made a deposit for your four years of active-duty military service, you could retire at the MRA of 56 – two years earlier than if you did not make the deposit.  (Note: If you are covered under the Special Retirement provisions for Law Enforcement Officers, Firefighters, Air Traffic Controllers, and Military Reserve Technicians the military service cannot be credited towards the 20 years of special retirement coverage for retirement eligibility but will be used in computing your annuity.)

Increased Annuity

Making a military deposit will increase your federal retirement annuity.  By making the deposit, you are purchasing a guaranteed monthly annuity payable when you retire.  The annuity is paid directly to you in the form of monthly payments for the rest of your life (and your spouse’s life if you elect a spousal annuity).  The military deposit is fully refundable if you change your mind and want a refund of the deposit.

To determine if this deposit is advantageous to you, simply compare the total military deposit amount to the increase in retirement income.  Then determine how long before the increase in your retirement annuity will pay for the military deposit amount.

For example, let’s say you have four years of military service and five years of federal service as a FERS employee.

• High-three Salary: You don’t know what your high-three salary will be when you retire, but you decide to use your current salary of $60,000 as your high-three salary.
• Military Deposit Amount: Your payroll or HR office determines your military deposit amount will be $2,600 for four years of military service.
• Computation: If you are a FERS employee, your retirement annuity is increased 1% for each additional year of service.  So the computation is:

4 years of additional service x 1% per year x $60,000 = $2400 yearly increase in retirement income attributable directly to the one-time military deposit.  That is a $200 per month increase in your annuity payable for your entire life.

Conclusion: In this example, it took just one year and one month of retirement income attributable to the military service to equal the entire military deposit amount.  This is the break even point.  The higher annuity income continues for as long as you live, and will be also used to compute a spousal annuity if applicable.  If you plan to spend more than 13 months receiving this annuity, the deposit is beneficial.

If you are a CSRS employee the military deposit amount is higher, but the return is also higher:

X years of military service x 2% per year x high 3 salary = annual annuity increase.

This calculation does not include the time value of money considerations.  For those analytical types, TVM calculations would be appropriate, for everyone else, let’s keep it simple since this is normally such a short period of time.

Retired Military

Making the military deposit is not for everyone.  If you are retired military and are receiving full military retirement pay, it is usually not advantageous to make a military deposit, because you must waive your military retired pay for the service period to be included in the civilian retirement annuity.  Usually the full military retirement is of greater value than the civilian retirement annuity.  Use the computation method above to determine if making the deposit would be beneficial or consult with your HR/Benefit Specialist.

Military Disability Retirement & Reserve Retirement

You must waive your military retired pay in order to receive credit for military service in a civilian annuity, unless your military retirement is based on:

• A service-connected disability incurred in combat with an enemy of the US;

• On account of a service-connected disability caused by an instrumentality of war and incurred in the line of duty during a period of war; or

• Under provisions of 10 U.S.C. 12731-12739 (retired members of the reserves).

A deposit is still required for the active duty military service to be credited in your civilian retirement annuity.

Creditable Military Service:  As a general rule, military service in the Armed Forces of the United States is creditable for retirement purposes if it was active service terminated under honorable conditions, and performed prior to your separation from civilian service for retirement.  If you are in the FERS retirement system or your civilian service began after October 1, 1982 a deposit is required to receive credit for the service.

But what would a federal regulation be without an exception?  Here is information about additional rules and regulations that may be applicable to you and your service:

• Military service which interrupts your civilian service (called to active duty)
• Military service performed before 1957 is creditable without deposit
• CSRS retirement with civilian service performed before 10/1/82 (Catch 62)
• Military time buyback, forms and additional resources

What else you need to know:

• The deposit must be paid in full while you are a federal employee and cannot be paid after you separate from federal service.  Otherwise it will not be creditable for retirement purposes.
• Retirement Eligibility for CSRS and FERS requires that you must have at least five years of creditable 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 four years of military service to equal five years for retirement eligibility.  You must have at least five years of civilian service for civilian retirement eligibility.
• Your Service Computation Date (SCD) can be confusing. There are at least four different SCD dates used by HR.  The SCD that appears on your Notification of Personnel Action, SF-52 is your Leave SCD.  You do not have to make a deposit for your military service to be included for leave accrual purposes. This date is different than your Retirement SCD, which only includes the military service if there is proof the deposit was paid in full.
• Plan ahead because making the deposit requires several steps that take time.  The steps include requesting information from your military payroll office and your civilian payroll office.  Start the process well before your anticipated retirement date.  For more information review How to make a military deposit.
• The amount of the deposit is determined by the amount of your military base pay, your civilian retirement system, and how long you have been a federal employee.  The military income amount does not include housing allowances, combat pay or similar extra pay.  The deposit amount is 3% of military base pay for FERS employees and 7% of military base pay for CSRS employees.  You may make the deposit at any time you are a federal employee.  The deposit can be made in one single payment, multiple payments, or through payroll deductions, normally for as little as $25-$50.
• The interest rate is variable computed and added to your deposit amount on a calendar basis.  There is a two-year interest free period that begins on your date of hire.  However, since the interest is added on an annual basis, if the deposit amount is paid in full prior to three years of your hire date the deposit is interest free.  This calculator should help you in computing the interest due: Computing your military deposit amount.
• Keep all information about the military deposit until retirement.  When the deposit is complete, you should receive a letter from your payroll office indicating the deposit is made in full.  Payroll does not normally provide this document to your HR office.  You should give a copy of the letter to your HR office to be included in your Official Personnel Folder and keep a copy for yourself to provide with your retirement documents when you retire.

Helpful Retirement Planning Tools

• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Which Way is Up – A Retiree’s Conundrum
• Is the Stock Market Keeping You Up at Night?
• TSP Guide
• TSP Considerations
• Budget Work Sheet
• Social Security Guide

The advice and strategies contained herein may not be suitable for your situation and this service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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

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