AMERICA PROUDLY SALUTES OUR MILITARY SERVICE
IN THE ARMED FORCES OF THE UNITED STATES!
Your bravery, sacrifice, and strength do not go unnoticed, and we will always be indebted to you. We thank you and your families for your service and all that you have given to this great country. You are the pride of America.
Those who have served in our Armed Forces and those who serve this great nation as Federal Civilian Employees often seek financial advice regarding their Federal Benefits in Retirement. Advice through the OPM is often confusing and cumbersome, with long wait times, computer-driven analyses, and forms. Our Federal Benefits Specialists are professionals who have been formally trained to offer support and clarity in the CSRS and FERS retirement benefits packages. The primary topics of interest include:
- Health (FEHB)
- Life (FEGLI)
- Long-Term Care (FLTCIP)
- Social Security and the Windfall Elimination Provision
- Thrift Savings Plan (TSP)
- Buy Back Your Military Time o Best Time To Retire For Optimal Lifetime Income
The measure of our success is the ability to align your benefits with your retirement dreams and goals. Contact our office today, it’s never too late to begin planning for your future, your dreams, and your life.
Federal Employee Group Life Insurance
The Federal Employees’ Group Life Insurance (FEGLI) is the largest group life insurance program in the world. If you are a new federal employee, you are automatically covered by basic life insurance, which is equal to your base pay (rounded up) plus $2,000. In addition to Basic Life, there are three forms of Optional Insurance available:
Option A: The simplest form of optional life insurance. It provides your beneficiaries with a $10,000 death benefit in the event of your death.
Option B: Allows you to choose 1,2,3,4, or 5 multiples of your base pay (rounded up). The cost of option B increases with your age.
Option C: Is for families, providing coverage for your spouse and eligible dependent children. The coverage amount is determined in units i.e, each unit represents $5,000 for your spouse and $2,500 for each dependent child. If 3 units are elected and the spouse dies, the beneficiaries would receive 3 x $2,500 = $7,500. The number of multiples elected applies to all family members. The cost of FEGLI goes up every 5 years, so, as you age, paying for federal life insurance can cut into your bottom line, and into your ability to save for a distinguished retirement. During the years when you need FEGLI the most, it can become prohibitively expensive.
We will analyze your pay and your current FEGLI benefits to determine if an alternative insurance plan, one with fixed benefits and fixed premiums, might be a more cost-effective choice for you.
Federal Employee Health Benefits (FEHB)
FEHB is the world’s largest employer-sponsored group health insurance program. This coverage is for federal workers and retirees, as well as their families and spouses. Like Medicare, FEHB includes coverage for inpatient and outpatient services. So retired, former, and active federal employees who are eligible for both programs — as well as those who are eligible for FEHB through their current or former spouses — often wonder if they can have both Medicare and FEHB at the same time.
The short answer is yes. You can have Medicare and FEHB coverage simultaneously. But do you need both? Well, it can be beneficial. You are welcome to come in and ask us questions regarding your personal and family coverage. Remember, when it comes to your health care, the best surprise is no surprise.
Federal Long Term Care Insurance Program (FLTCIP)
The Federal Long Term Care Insurance Program (FLTCIP) provides long-term care insurance to help pay for the costs of care when help is needed with activities, performed every day, or have a severe cognitive impairment, such as Alzheimer’s disease. Most Federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services and their qualified relatives are eligible to apply for insurance coverage under the FLTCIP – eligibility is the key. Certain medical conditions will prevent some people from being approved for coverage. You must apply to find out if you are eligible to enroll.
Social Security is one of the major income streams for retired federal workers enrolled in FERS (those employees hired on or after January 1, 1984) or for those who switched over to FERS from the Civil Service Retirement System (CSRS). All federal employees who are enrolled in FERS pay a percentage of each paycheck into the Social Security Trust. You should be aware of what this means for you.
The Social Security Administration is facing hardships. A large number of baby boomers are retiring from the workforce so, the younger employees may encounter a dwindling supply of funds when they plan to retire. If the deficit is not fixed, those Social Security benefits may be reduced by 33% after 2035.
The bottom line is that you need to know the amount you will receive from Social Security in order to realize your total retirement income. Calculations can become complex for CSRS and federal employees with pensions (Windfall Elimination Provision). We will calculate your Social Security, and Pension, and work to uncover additional benefits that may be available to you and your family.
Thrift Savings Plan (TSP)
Planning your retirement may require a shift in mindset and a solid understanding of the difference between retirement savings and retirement income. Prior to retirement, your financial life was dictated by your paycheck. Once you retire, however, you can no longer rely on a paycheck, which means you need to find other sources of income.
Although this can represent a challenge for many, it also represents a great opportunity to potentially grow your savings beyond what you’ve saved — and this is usually made easier by enlisting the help of a financial services professional that you trust. We will walk you through the process of:
- Determining how much retirement income you will need
- Estimating how long your current income plan may last
- Calculating how much additional income you may need
- Evaluating your additional income sources
Because taxes play a major role in any financial planning process our firm will utilize tax advantaged vehicles to accomplish your retirement income goals, such as traditional IRAs, Roth IRAs, and IRA rollovers.
Keep in mind, while the numerous options for your retirement savings may seem overwhelming, all of us at Schilreff Wealth Management are here to help you by setting your retirement goals, and utilizing investment strategies to maximize your lifestyle, your dreams, and your life.
Take control of your federal retirement today.
As federal employees, it is never too early, nor too late, to get started on your retirement planning. Tell us your goals and we will get you on a plan to achieve them today.
Take the time to really understand your Federal Retirement — these are a few of the many topics we cover in a Free Retirement Review:
- Life (FEGLI) — Life Insurance Cost — Now and in the Future
- The Federal Long-Term Care Insurance Program (FLTCIP)
- Pension Calculation For A Given Retirement Date
- Social Security and the Windfall Elimination Provision
- Thrift Savings Plan (TSP) – Analysis and Contribution Recommendations Buy Back Your Military Time
- Best Time To Retire For Optimal Lifetime Income
Take a moment to look into the very latest books for Federal Employee Benefits available on Amazon or online today…
Eleven Common Mistakes Federal Employees Make Claiming Their Retirement Benefits: How to Avoid These Mistakes and Achieve Your Retirement Dreams
Paperback- March 16, 2022
by Dave Baker (Author)
That lack of information and inability for Federal Government employees to get guidance regarding their retirement and career benefits is truly alarming. Most government employees are unaware that many of the career-long benefits drop off at retirement and, as such, are not prepared for the consequences. It’s why so many federal employees are forced to find jobs after retirement. If you are a government employee this book, the Eleven Common Mistakes Federal Employees Make Claiming Their Retirement Benefits; How to Avoid These Mistakes and Achieve Your Retirement Dreams was written specifically to help you achieve the dreams of retirement you aspire to.
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To achieve your financial goals when planning your retirement, it’s crucial you work with a consultant who has comprehensive knowledge and experience in your federal benefits.
The FEAG team has earned the Federal Retirement Consultant℠ (FRC) Designation and Certification signifying we have demonstrated a level of knowledge that you can trust.
To remain as FRC℠ professionals in good standing listed on FINRA, we must adhere to an established Code of Ethics and mandatory continuing education plus yearly testing.
Increasing professionalism by expanding knowledge in the complexities of the federal employee retirement systems and related benefits.
Holding professionals who earn the FRC℠ Designation to the highest ethical standards.