Basic retirement advice.
- Thread starter Jenay1032
- Start date
justacarrier
Well-known member
Yes, you want to retire as near the end of the month as possible. Preferably at the end of the pay period so you get full leave credit. DO NOT use any AL that you have not earned as apposed to what is advanced. Make sure you understand all of the FEGLI (life insurance) options, you can do the 75%reduction and when you turn 65 it becomes free. Any of the other options you may have now will get very expensive in retirement so don't give up basic (preferably do the 75% reduction) it just makes sense.
Voglio-il mio
Well-known member
I would recommend getting the retirement package 6 months in advance if you go the paper route! If you complete the forms online I believe that package would still be valuable to have so you can make decisions and be prepared to record answers during the online completion. I would also recommend submittal of the completed application be at least 3 months in advance.
justacarrier
Well-known member
I hate to say this but I'm pretty sure there is no option for a paper application. It is required to be online. I do think that if it's a disability application you still may do paper but that's the only one.
Voglio-il mio
Well-known member
But they must still supply a Retirement book. There's a lot of good information in it that can be used to make decisions...........................?????????????????????????
justacarrier
Well-known member
Not sure but I think the blue book is a thing of the past, someone who has used the new process please fill us in.
Voglio-il mio
Well-known member
Did they cut out the counseling session also?
I'm so glad I got out when I did, so many different aspects of employment with the USPS has gone down hill. It used to be such a sought out and desired job, it's so sad!
justacarrier
Well-known member
No I think they still do those and when I did mine it was well worth the effort. It's only the paper aspect that they changed. In the end it will probably be a good thing but will take a while. I heard of people that had made a mistake on their paper form and "corrected" it in some way just to have it rejected because they allowed NO stray marks or smudges on the papers.
Voglio-il mio
Well-known member
I agree 100%
If you don't have the forms (No Blue Book), how would the counseling review occur?
I heard the same stories, someone in my office was on their 3rd time sending it in.
What I did was scan the forms on to my computer. I then would type in the replies right on my computer. After filling them out and making edits I printed them.
Same. It was more than time. Everyday I say a brief thank you for working when I did. I left because I couldn't tolerate either side anymore - they were both incompetent.
Tired carrier
Well-known member
Be sure to use all of your annual leave. Don’t take it in a lump sum, they rape you on taxes. Also if you can find a doctor that will put you off use all your sick leave. Make sure you have plenty of money to fall back on just in case your retirement process takes longer than usual. It took me eleven months to get mine finalized. Schedule an online retirement counseling session . This was very helpful for me. They go over everything and will answer any questions you have.
justacarrier
Well-known member
As far as annual leave, most people count on using the payout to tide them over till the retirement check starts coming. As far as taxes go in the end taxes are taxes and when you file your return it all balances out. You don’t pay more just because it’s a lump sum. They just may take more out initially but you will get it back.
Charlie Brown
Well-known member
No they don't "rape you on taxes" Because your terminal leave payment (annual leave payout) is often a large amount of money they will withhold a larger percentage of it than you are used to. Because your total income didn't really go up at the end of the year your tax rate will probably be the same as it's been for years. What it does mean is that you are more likely to get a tax refund.
Because it can take a while to get everything settled many carriers rely on that terminal leave payment to help bridge the gap between getting paychecks and getting annuity payments. If you can do it, use up as much of your sick leave as possible.
I was planning on holding on to my annual, and cashing it in. I have a co worker who is going thru the online process. And told me it was very quick and easy and he spoke to no one ( no counseling session.) He mentioned just basic questions about spouse,
Health insurance, life insurance. Upload a few documents and it was done. Is it that simple now? Also how long before the date I would like is best to apply. Is there any harm in applying early?
Health insurance, life insurance. Upload a few documents and it was done. Is it that simple now? Also how long before the date I would like is best to apply. Is there any harm in applying early?
I don't know if they have changed THIS part of it since they went to online applications but I retired about a year and a half ago and was told by HRSSC and OPM that applications were processed by retirement date and not necessarily when the application was received. You could call HRSSC and see if it's still that way.
justacarrier
Well-known member
Pretty sure this is probably still the case. HRSSC will not send to OPM until your date is reached because you can always cancel your retirement right up until that date. Don't know for sure but the rationale they told you still is the same today.
I kept hearing use as many sick leaves as possible before retirement. Why? I was understanding that with sick leaves it can help you speed up your retirement or increase your years of service. Say you are at 19 and 1/2yrs and you have 1/2 to go, you use up the rest of your sick leaves(with doctors approval) to reach 20yrs. What am I missing? Now the reason I am saving my sick leaves is because I am always maxing out my AL carryover yearly. I am also planing to cash out all the AL when that time comes too.
Also for the top3, can we request that before retirement or have to wait for HR to send to us close to our retirement? Thanks in advance
Also for the top3, can we request that before retirement or have to wait for HR to send to us close to our retirement? Thanks in advance
DB.Cooper
Well-known member
There are different ways of looking at using your leave... You get paid for it if you use it or cash it in... If you use it, it adds to your longevity, and boosts up your service time a bit, and they also do TSP matching and so forth that doesn't happen if you cash it in.... same can be said for SL.. but it's your leave, use it how you think it best serves your needs... 
Voglio-il mio
Well-known member
The sick leave can't be used (cashed in) for achieving retirement eligibility, but it will be added towards your (time served) pension valued at the rate of a day for a day.
Now keeping that in mind lets say a days pay (sick leave) is equal to $300 dollars, so 5 sick days (a week) is worth $1500 dollars. Now if you have 100 sick days (20 weeks) its worth to be used is $30,000 dollars.
Now look at using it to add time to your retirement at a rate of 1 Sick Day = 1 Day towards time served. That would give you 20 weeks (39% of a year) additional time towards your retirement. So roughly 40% of a year or (.004) towards your pension. Each full year counts as 1% or .01 of your high 3. So your multiplier is 30.4% or (.304).
Using the data above $300 a day equals a working salary of $78,000 per year. So your high 3 would be about $75,000 maybe. Doing the math .004% of $75K is $300. per year towards your pension.
For example lets say you have 30 years at a high 3 of $75k your Pension would be Approx. $22,500 per year without Sick Time added to it or $22800 with it included.
$22,500 / 12 = $1875.00 per/mo.
$22,800 / 12 = $1900.00 per/mo.
a $25.00 per/mo. difference.
Based on these calculations, that $30k dollars you could have received by using the Sick Days before retirement, it will take you 100 years in retirement for you to break even!
$300 x 100 = $30,000 dollars.
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