Review your work history and carefully review the questions on the retirement application, Image: Rioji/Shutterstock.com
By: Abraham GrungoldIf you are a federal employee contemplating retiring on December 31. The time to prepare for your retirement is now. You have spent twenty to thirty years working towards your retirement. It is important to spend enough time in preparing for your retirement. Preparing for your retirement is not about preparing your speech or cleaning out your desk. It is about preparing your retirement application prior to your exit date.
The Federal Employees Retirement System (FERS) requires employees to prepare the Federal Retirement Application, Standard Form 3107. It is a 14-page application which is focusing on your entire federal career and the questions to address important retirement issues.
So, take 90 days, review your work history and carefully review the questions on the retirement application. How you answer those questions can cost you hundreds and even thousands of dollars in retirement income.
Below, are the five most important issues for you to consider.
1. Work History
Make sure you are receiving credit for full time, part time or summer work who had done at any agency during your federal career. Review your Official Personal Folder, OPF. You should be able to download it from your agency’s Human Resources site.
2. Beneficiaries
It is important to check all your beneficiaries for your Thrift Saving Plan, FERS Annuity and FEGLI Insurance.
3. Social Security
In retirement will you be receiving a social security supplement? If eligible, will you take social security early at age 62 or postpone to a later date?
4. Insurance
Will you continue your life insurance coverage in retirement or perhaps reduce or eliminate your coverage?
5. Ex Spousal Divorce Decree
If you owe your ex-spouse any portion of your federal annuity or thrift saving account, you need to have the proper documentation for OPM. Otherwise, this will hold up the final disposition of your federal retirement.
In addition, some agencies have provided financial incentives to encourage those who maybe wavering on the idea of retirement.
I help my clients to work through all their decision-making choices. It is a difficult process and there are many variables and family considerations.
Everyone has their own distinct retirement objective. Their decisions may be tweaked as the date grows closer; however, they will be ready, and all this preparation will make for a seamless transition.
Abraham Grungold is a retired federal employee with 36 years of federal service – including with the USPS Inspector General, the VA Inspector General, the US Dept of Justice, and the US Dept of Labor. Through his company AG Financial Services he helps federal employees with their TSP and federal retirement planning and decisions. Mr. Grungold has written over 50 articles regarding the TSP and FERS retirement and been a guest on several podcasts with the Federal News Radio and Government Executive Magazine.
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