Question for retirees about High3

[btdtret]

DB.Cooper -- "Anybody know, in a nutshell.... what are the early retirement penalties???"

-- Don't know about nutshells, but the June 2008 and July 2016 issues of the national magazine had articles regarding FERS Retirement and "Am I Ready to Retire".

-- If you retire at MRA ( Minimum Retirement Age ) with at least 10, but less than 30 years of service, your benefit will be reduced by 5 percent a year for each year you are under 62, unless you have 20 years of service and your benefit starts when you reach 60 or later.

 

[Voglio-il mio]

Since you have asked!
60 & 20 or 62 & 5 read attached for details and other options!

https://knowledgebase.ruralinfo.net/download/am-i-ready-to-retire-nrlca-vice-president-stutts-pdf/?wpdmdl=8396&refresh=5e7bd347bbed71585173319

 

[RFD]

Not sure if you missed the joke I attempted with the word gross. I was using it in the sense of something someone might think inappropriate.
What they use is what is listed as Rate on your pay stub. The yearly amount you would be paid if you actually worked a year at that rate. Not a gross amount at all, so matters little what differences there are for social security or taxes. Sorry about my sense of humor, its all I've got.

Thanks. That's better than the SS numbers. didn't think humor was inappropriate. Next question though. Let's say I have exactly 365 days of sick leave to throw into my retirement figures. Will I gain one extra year of service, or since there are only six work days a week, will I gain 1 year and 52 days?

 

[RFD]

DB.Cooper -- "Anybody know, in a nutshell.... what are the early retirement penalties???"

-- Don't know about nutshells, but the June 2008 and July 2016 issues of the national magazine had articles regarding FERS Retirement and "Am I Ready to Retire".

-- If you retire at MRA ( Minimum Retirement Age ) with at least 10, but less than 30 years of service, your benefit will be reduced by 5 percent a year for each year you are under 62, unless you have 20 years of service and your benefit starts when you reach 60 or later.

So does that mean at MRA if a person has at least 20 years in, there isn't a penalty, or that it would be reduced by 5% a year for every year under 60 instead of 62?

 

[btdtret]

RFD -- "Will I gain one extra year of service, or since there are only six work days a week, will I gain 1 year and 52 days?"

-- Google "FERS sick leave retirement conversion chart".

-- The OPM figures things a bit differently than the USPS. Since the OPM sends out the checks, retirees do things the OPM way.

-- Is that 365 days of Sick Leave calculated out to your actual retirement date?

-- The OPM uses 360 days for a calendar year and their work day is a bit over 6 hours whereas a postal sick leave day is 8 hours. And only WHOLE months are used during the conversion process.

-- I'd say your 365 days of Sick Leave should be worth 13 extra months towards your retirement ANNUITY, but not actual service time.

- 360 x 6 = 2160 ( hours )

- the conversion chart only goes up to 2081 = 11 months and 29 days

- 2160 minus 2081 = 79 which = 14 days ( uses higher value when between values )

- 29 days + 14 days = 43 days = 1 month and 14 days

- 12 months and 43 days = 13 months and 14 days or 13 months as only whole months are used.

-- Someone please double check the figures!

-- Per your #24: What is your MRA? What will be your age at retirement? How many years of service at retirement?

 

[curious]

My husband said it's 8% less for every year you retire before your full retirement age. You can't collect anything till your 62 from ssc

 

[curious]

My full retirement age is 66 and 1/2

 

[Kubota Man]

So, there's one more category. Depending on the year you were born there's a minimum retirement age MRA. I was born in Jan. of 1963 so mine was 56 years even, no extra months. If you hit your MRA and have the minimum 30 years (full time) required you can retire penalty free in everything. You would also be eligible for the Supplemental Annuity which is a fantastic benefit. Changing your investment from the TSP to something else or perhaps if the word Roth is involved may impact you until you are 59 1/2. But taking out a monthly amount from your TSP would be penalty free.