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What Is Your Financial “Type?”
Your Financial Type
When it comes to money, what kind of financial person are you? Experts say that there are generally three kinds of people when it comes to money. There are those who live paycheck to paycheck. There are those who simply never have enough money, those that put the minimum away in their TSP and finally those who absolutely get it.
Those who get it just didn’t suddenly wake up one morning in Oz, a realm off limits to the rest of us; they had a financial plan and they followed it. Remember the equation below. Put it in a heavy traffic area of your home so that you can see it and let it be a constant reminder of your desire to retire in comfort and security.
Your plan is an achievable and trackable, weekly or monthly financial goal. Set the Goal – pay down your debts (those with the highest interest rates first), put money aside for a rainy day and then save for retirement (every little bit helps).
Having a Plan + Following the Plan = Retiring Well.
We are off to a good financial start!!
P. S. Always Remember to Share What You Know.
Retirement Plan for Federal and Postal Employees
Your Federal and Postal Retirement Plan – Will It Work
How do you know if your retirement plan is a good one and if it will work? Think about the strategies below:
• Your overarching goals for retirement are outlined (stay flexible).
• You have clearly written down all of your financial goals for retirement
• Are you maximizing the benefits of your TSP.gov account
• You have a spending and retirement plan for all of your income sources.
• You always review your goals before spending to avoid impulse spending.
• You have included the development of a budget that you monitor now and will continue monitoring into retirement.
• Your retirement plan includes a very close estimate of how much you can spend on clothing, entertainment, eating out and vacations.
• You plan ahead for major expenses and purchases so you don’t have to rob your savings.
• You have an emergency fund to cover unexpected expenses (3-6 months or more). You decide what fits your circumstances.
• You do comparison shopping always (ie. Search for “FEGLI comparisons” on the internet).
• Set aside some money to spend as you please, only after you have paid yourself first.
Your retirement future is important business, but you should still have some fun as you set your priorities to retire well.
P. S. Always Remember to Share What You Know.
The Chief Executive Officer (You, the CEO)
You, the CEO
Organizations have many layers of responsibility. However, the organization’s failures or successes rest in the hands of the Chief Executive Officer, the CEO. The BUCK stops with YOU, because you are the CEO of the Business of Your Life.
You have to take charge by prioritizing the steps necessary to ensure the success of the Business of Your Life as you move into retirement. CEOs inquire about what they need to know in order to ensure long-term viability of the organization’s resources. As the CEO (YOU) of the Business of Your Life, it is time for you to establish an open and frequent line of communication with your Human Resources Office.
Make sure that your service computation date is correct as well as your FEHB and FEGLI elections verifying at least 5 years of participation. Meeting the five year requirement enables you to take your FEHB and FEGLI into retirement.
Consider letting the last two years prior to your planned retirement year, be a period of investigation and examination of your work history profile to avoid surprises as you draw closer to your targeted retirement year. Give yourself time to process the information you have gathered to determine the level of utilization and implementation.
Once you have made your inquiries, gathered and assembled critical information, processed the information to determine the right fit for your retirement vision, you can then begin applying what you have learned from your research and investigation.
Determining the right fit for your retirement vision is highly customized. Your retirement future is not a cookie-cutter phenomenon, but a challenge and an opportunity unique to your circumstances, needs, values and choices – The Business of Your Life. Applying what you have learned means making it happen, making it real and making it work. It’s up to you to make it happen – the BUCK stops with YOU- the CEO.
P. S. Always Remember to Share What You Know.
Federal and Postal Employee – Retirement Goal Setting
Retirement Goals
The importance of constructing a PLAN for moving into retirement with comfort and security cannot be overstated. You should have a laundry list of goals as you ready yourself to retire well. Constructing a plan, managing your TSP account, making sure you’ve run a Benefit Analysis BEFORE retirement is also incredibly impactful on the whether or not you will reach your retirement goals.
Goals are all very individual and personal. They are also meant to guide us in making your plan real and making it work. Even though they are highly individual and personal, there are core criteria common to setting goals.
Goals must be achievable; they should also have a time horizon. If you set a goal, then you should also entertain a time by which the goal can be realized.
Goals should be flexible. There is nothing wrong with having to move the goal post either closer or farther away.
Goals should be defined with the ability to track or evaluate progress.
Essentially, GOALS shoudl be; SPECIFIC, MEASURABLE, ATTAINABLE, REALISTIC and TIME RELATED.
Often when we think about life and living, putting something down on paper escapes us. We think about setting goals at work and linking time horizons to those goals. On the other hand, we fall significantly short when it comes to setting goals for our lives.
For the average worker – WORK – is business. In order to place the same importance on our lives, it might be advantageous to think of facing the challenges and opportunities of retirement as the BUSINESS OF OUR LIVES.
P. S. Always Remember to Share What You Know
Annual Leave (Gap Money)
Annual Leave (Gap Money)
We have talked about saving and taking on more personal responsibility for our retirement years and a federal or postal employees unused Annual Leave can represent an important vehicle to accomplish this goal. We also spoke about saving by fully funding the Thrift Savings Plan (TSP) as one way to build up your financial resources for your retirement years. But in addition to any savings you have built up in your TSP, by the time the average federal worker retires, their annual leave accrual represents 8 hours per pay period or 16 hours per month, roughly 2 days per month. Postal workers earn slightly less in Annual Leave accrual (check LiteBlue for more information). Accumulating and saving your annual leave can make your transition from work to retirement much easier.
The Office of Personnel Management (OPM) continues to deal with the challenge of eliminating ‘interim annuity’ payments to retirees. Interim payments represent approximately 75% or slightly more of the full retirement annuity. As you put your PLAN for retirement in place, recognize that your full annuity check may not be immediately available and you may need to wait to access your TSP money too and this is where your unused annual leave may come in handy. Evaluate what your expenses will be and how much income you will need to cover those expenses. If you find that a gap exists, your annual leave check might be the GAP MONEY you need to close the divide.
Your annual leave check arrives about the same time as your final paycheck; perhaps weeks before you receive your interim annuity check. Carefully looking into all resources available to you, such as your TSP or unused Annual Leave, and managing those resources well will allow for a smooth transition to retiring well.
P. S. Always Remember to Share What You Know.
SAVE-SAVE-SAVE
Save
Remember the laundry list of things we talked about building in order to retire well in our FLEXIBLE Plan post. Now we come to the all important aspect of SAVING. We learned from our parents as children to save in the event of the unexpected. There is no avoiding the unexpected – things happen. No matter how well we plan, how careful we are – things happens.
As such when things do happen and most certainly most things that happen require financial resources to move towards a solution or remedy. We are not saying that money is the great equalizer or problem solver; we are simply saying that in most cases having some extra money might help to make the rough spots smoother.
When we speak about saving, the very notion seems to conjure up something big. Therefore, if we cannot save a lot, many of us end up not saving at all. If you look at any financial picture – any amount of money outweighs ZERO. Each individual’s retirement goals and savings capacity will be starkly different.
However, our collective goal as Americans is to retire well with financial security and comfort. After working for a greater part of our adult lives, every American’s aspiration is to live on their own agenda with a high quality of life.
Americans have long moved away from the passbook savings accounts of our parents and grandparents. However, the need to save has not lost its importance. Today, we must be more aware of the financial markets, our TSP investments and participate more passionately in building and securing our own retirement future. Saving needs to become contagious to us whether a little, a lot or somewhere in between. It is imperative that we become more financially literate and apply the economic principles of supply and demand in our everyday lives in order to meet the challenges of retirement.
Most of us rely on savings through employer-sponsored plans such as some version of the 401K plan, for our purposes, the Thrift Savings Plan (TSP). Although, new employees to the federal service are automatically enrolled in TSP, they may opt out since it is a voluntary program. However, not participating in the TSP at some level would not be one of the best choices to make. Fully maximizing your participation in the TSP on the other hand might just be one of the wisest choices you make to enhance your resources in retirement.
The TSP has a diversity of funds, including its safe Government Securities Fund (known as the G fund). The principal amount of your investment is always safe, guaranteed by the Government. The average American’s income comes from three sources in retirement – employer pension, savings and investments. Federal employees, unlike many Americans, have the luxury of all three – a life time annuity from your federal retirement plan (CSRS/FERS), savings and investment via the Thrift Savings Plan.
In order for your plan to work towards building a safe and secure retirement future so that you have the luxury to retire well, SAVINGS must be at the forefront of your plan.
P. S. Always Remember to Share What You Know
Building A Flexible Federal Employee Retirement Plan
Building a Flexible Retirement Plan
In order to make anything work from the simplest to the most complex venture, one must have a plan. One of the most important components of the plan is flexibility. Life changes, people change, and as we know – the world and what makes it run – the economics of supply and demand – impacting the way we live also changes.
Getting ready for retirement requires tremendous personal investment, both financially and emotionally. There is a laundry list of things we need to do in order to move closer to our retirement goals. As we construct our laundry list of things to do, we will compare the list to what we have already done and what we need to do going forward.
Obviously, one of the first things we need to do is develop a plan, a sort of action plan for our lives. Developing an action plan requires no real technical expertise or fancy charts and drawings. It is your own personal plan whose primary criterion is to develop a plan and stay with it. No matter how wonderfully constructed your plan, if you simply toss it aside, it is useless.
We emphasize the need to be flexible in your retirement plan, so that if you have to change some things, rearrange some items or redo it altogether, not to worry. Just don’t abandon your plan. Having a retirement plan is like having a roadmap to your desired destination. You may discover that you can take a number of alternate routes to your destination, but nonetheless, you have a roadmap that you know most emphatically leads you to where you want to go.
When you are building a PLAN for your retirement future, always remember what FLEXIBLE means to help you stay on track. F – Financial literacy is a must. You gain that literacy just as you gain any other body of knowledge – read, inquire and ask questions. L – Liabilities – know what they are and work on eliminating as many of your liabilities as possible before you retire. E – Earnings – know that your earnings will be lower than when you were an active employee, respond accordingly. X- Xceptions – there are none. We don’t get to make Xceptions to the importance of having a plan and say ‘I don’t need one”.
Everybody needs a plan in order to successfully get where they need to be. I – Invest in your future by prioritizing what your goals are and sticking to a plan that will help you reach them. B – Budget – if you have shied away from living on a budget in the past, as you move into retirement, living on a budget is your best bet to making sure your resources outlast you.
If you very temporarily step-off the train, you must immediately make plans to get back on board, it is your future. L – Lower – E- Expenses. Lower your expenses by taking advantage of services offered to seniors – eating out, travel, hotel accommodations, and grocery shopping discount-days for seniors, senior home repair programs, and homestead exemption programs for seniors.
FLEXIBLE might only look like an 8 letter word, but it packs a whole lot of punch for getting ready to retire well.
P. S. Always Remember to Share What You Know.
For information on your TSP.gov and how it will impact your retirement – Click HERE
FEGLI – SUMMARY
FEGLI Summary
We have talked a lot about Federal Employees Group Life Insurance (FEGLI) and shared some information that will hopefully assist you in planning to retire well. Although, we have had a fairly lengthy discussion about FEGLI, there is yet so much more we could discuss.
However, irrespective of the discussions, what is most important is YOU. You have all the information about you and your family. You know what your desires are for you and your family. So with that, hopefully the information shared in the posts will serve as a tap on the shoulder, a reminder that it is far better to put your own plans in place long before you need to so that your family members won’t have to. Losing someone they love will be enough in itself.
We all want to take care of our families and loved ones. The best way we can do that is to leave as little guess work to them as possible by taking care of the business of the end of our lives as part of the planning process to retire well.
P. S. Always Remember to Share What You Know.
RELATED TOPICS – More Federal and Postal Insurance Information
Federal Employees Health Benefits (FEHB)
Federal Flexible Spending Account (FSAFEDS)
Federal Long Term Care Insurance Program (FLTCIP)
Federal Employees and Medicare
Federal Employee Dental and Vision Insurance Program (FEDVIP)
FEGLI – Option C
~~FEGLI – OPTION C
We are just about done. We have discussed the terms of Basic Life Insurance, Option A-Standard Insurance and Option B- Additional Insurance. Let’s continue with the discussion – FEGLI Option C –Family Insurance.
Many of the same provisions in Option B are also applicable in FEGLI Option C. For example, individuals 65 years of age or older at retirement will be contacted by OPM very soon after retirement. Individuals who retired before reaching age 65 will be contacted by OPM a short time before they reach age 65 to discuss elections.
Individuals with Option C – Family coverage can choose either Full Reduction or No Reduction for each separate multiple. The decision might be to choose No Reduction for some multiples and choose Full Reduction for the remaining multiples.
If you choose Full Reduction and you retired before April 24, 1999, two months after you reach age 65 or your retirement date which ever comes later, on the first day of the second month; Option C will decrease by 2 percent of the original face value every month for 50 months. After that time, coverage will cease. Premiums will be withheld from your annuity until the month in which you reach age 65.
If you elect to keep some or all multiples under No Reduction, adjustments to your premium will be made to reflect the election made.
It is always a good idea to check and double check your choices to make certain you are satisfied with the options you have chosen.
P. S. Always Remember to Share What You Know.
RELATED TOPICS – More Federal and Postal Insurance Information
Federal Employees Health Benefits (FEHB)
Federal Flexible Spending Account (FSAFEDS)
Federal Long Term Care Insurance Program (FLTCIP)
Federal Employees and Medicare
Federal Employee Dental and Vision Insurance Program (FEDVIP)
FEGLI OPTION B – Additional Insurance
FEGLI: Option B – Additional Insurance
Let’s take our time in walking through the provisions of FEGLI Option B, which can be a bit more involved than Option A- Standard Insurance and Basic Life Insurance. If you are considering maintaining life insurance coverage into your later working years and certainly into retirement, you NEED To know about your FEGLI Option B and what other comparisons might be available for you.
FEGLI Option B: There is no minimum coverage for Option B. The coverage is simply calculated on the stated salary of the employee with no minimum ($10,000) as it is in the case of Basic Insurance. If an employee’s salary is less than $10,000, the FEGLI basic insurance amount (BIA) of coverage would still be $10,000 under Basic Life Insurance.
The cost of Option B Additional insurance is the responsibility of the retiree. Retirees have the option as of April 24, 1999, to elect to make an Option B reduction. If you are age 65 or older at retirement you will be contacted by OPM about making your elections not long after you retire. Retirees who retire prior to reaching the age of 65 will be contacted by OPM concerning their elections shortly before they reach age 65.
If you are older than 50 it is incredibly important that you compare FEGLI rates against other life insurance options. FEGLI rates rise dramatically after a certain age and you will almost certainly be able to find a cheaper policy over the long run. If you plan to hold insurance into retirement (and many people do, especially those who want to protect their loved ones) then a great way to enhance your retirement is to compare your FEGLI rates and reduce your costs – “a penny saved…..” This holds true for both Federal and Postal employees. You should compare your FEGLI Rates online by searching for FEGLI comparisons and/or FEGLI Calculators to find out what other options are available for you. You may also want to find a local insurance professional that is knowledgeable in your benefits prior to making your final selection (almost always a good idea).
Whether you are 65 or older at retirement or have not yet reached age 65 the option to elect Full Reduction or No Reduction for each separate multiple is within your right. Let’s demonstrate what is meant by choosing Full Reduction or No Reduction for each multiple separately. Individuals choosing Additional Insurance – Option B can choose 1, 2, 3, 4 or 5 multiples of their annual rates of basic pay. If the basic pay is $68,595 rounded to the next $l, 000, then each multiple is valued at $69,000. You might decide to choose No Reduction on 3 and Full Reduction on the remaining 2 or visa-a-versa.
For those multiples you elect a Full Reduction, two months after you reach age 65, on the first day of the second month or on your retirement date which ever comes last, your Option B Full Reduction multiples will decrease by 2 percent of the original face value each month for a total of 50 months and then the coverage will end. Premiums will be withheld from your annuity until the end of the month in which you reach age 65.
If you choose No Reduction upon reaching age 65 or at retirement whichever comes last, then the premiums withheld from your annuity will be adjusted to reflect the number of multiples you have chosen. You have the option to choose No Reduction on some or all multiples. You have the same choices whether you choose Full Reduction or No Reduction on some or all of your multiples. If there are multiples that you do not choose or indicate No Reduction, then those multiples will begin to decrease by 2 percent of the original face value each month for a total of 50 months and then the coverage will end.
The best way to gain satisfaction from the choices you make as you prepare for retirement is to take it one step-at-a-time, making sure you understand all of your options completely. If you still have questions, you are at the right place to get them answered while you are still an active employee. The only questions about FEGLI that are not valuable are the ones you don’t ask.
P. S. Always Remember To Share What You Know.
Click HERE for information on FEGLI
Click HERE for information on Option B
Click HERE for information on Financial Planning
FEGLI – Option A – Standard Insurance
FEGLI – Option A
FEGLI Option A – Standard Insurance has a face value of $10,000 when you retire. However, if you retired before October 30, 1989, your Option A insurance might have been slightly higher. If you have FEGLI Option A- Standard Insurance, it will begin to decline or decrease in value at the rate of 2 percent each month starting approximately 2 months after you reach age 65 or at retirement, whichever comes later.
As such the value of your FEGLI Option A-Standard Insurance will continue to decrease until it reaches 25 percent of the original face value or $2500. The $2500 amount or 25 percent of the original face value $10,000 under Option A will be the value of your insurance upon your death.
Unless you cancel your FEGLI Option A-Standard Insurance, premiums will be deducted from your annuity through the end of the month in which you reach age 65. If your birthday comes on February 2, and you are turning 65 years of age, then the premiums will be deducted until the end of February, after which they will cease.
Take your time in reviewing your options and what they entail for you in retirement as you build your arsenal of facts and options to retire well.
P. S. Always Remember to Share What You Know.
RELATED TOPICS – More Federal and Postal Insurance Information
Federal Employees Health Benefits (FEHB)
Federal Flexible Spending Account (FSAFEDS)
Federal Long Term Care Insurance Program (FLTCIP)
Federal Employees and Medicare
Federal Employee Dental and Vision Insurance Program (FEDVIP)
Are You Clear On FEGLI
FEGLI Recap
~~We are going to continue our discussion on making certain the provisions of FEGLI are clearly and completely understood. We discussed FEGLI Basic Insurance for those persons who retired before December 9, 1980, and before January 1, 1990.
Now let’s look at some other important time frames impacting Federal and Postal employees who retired after December 31, 1989 and going forward. Employees falling within this time category must all either elect the 75 percent reduction, the 50 percent reduction or No Reduction. Whatever your choice, if you retire before reaching age 65, you will be obligated to pay the same premium for your BASIC FEGLI as you did as an active employee until you reach age 65.
As in our previous posts, we are going to discuss each election separately starting with Option A – Standard FEGLI. Option A- Standard Insurance was previously referred to as Optional Insurance. Discussing the elections separately will hopefully allow you to analyze each provision and eliminate the confusion often encountered when one is saddled with reviewing too many things at once.
Let’s begin with Option A- Standard Insurance in the post to follow.
For information on FEGLI Option A
For information on FEGLI Option B
For information on FEGLI Option C
P. S. Always Remember to Share What You Know.
FEGLI- 50% Reduction Election
50% FEGLI Reduction
Now that we have a better and clearer understanding of the 75 percent reduction election, let’s talk about the 50 percent reduction election under the same time periods.
If you elected the 50 percent reduction under your BASIC life insurance, the face value with begin to decrease at 1 percent every month also beginning with the second month after you reach age 65 or your retirement date or whichever is later.
Your FEGLI BASIC life insurance (watch the video) under the 50 percent election will continue at the rate of 1 percent each month until it reaches 50 percent of the original face value. This election’s coverage is not free, and the premiums must be paid for out of your annuity starting at retirement and continuing for as long as you live.
The only other FEGLI reduction election you can make outside of the 75 and 50 percent elections is NO REDUCTION. If you chose the NO REDUCTION election, the full face value or the original amount of your BASIC life insurance will remain the same even when you reach age 65. Premiums are withheld from your annuity starting at retirement until the end of your life to take care of the additional coverage.
I think we can exhale and get ready to discuss our reduction election choices for dates impacting the majority of federal and postal employees who retired after December 31, 1989, and going forward.
For more information on FEGLI read this
P. S. Always Remember to Share What You Know.
RELATED TOPICS – More Federal and Postal Insurance Information
Federal Employees Health Benefits (FEHB)
Federal Flexible Spending Account (FSAFEDS)
Federal Long Term Care Insurance Program (FLTCIP)
Federal Employees and Medicare
Federal Employee Dental and Vision Insurance Program (FEDVIP)
FEGLI – 75% Reduction Election
FEGLI: 75% Reduction
There are some dates or time periods that are important when discussing FEGLI. Although, we are clearly in the year 2014, I am still going to discuss dates prior in the event retirees or family members of retirees are a bit unclear about what is happening with the life insurance carried into retirement from the federal service.
If you retired prior to December 9, 1980, your BASIC FEGLI coverage (watch the video) begins to decrease by 2 percent of the face value every month starting with the second month after you reach the age of 65 or when you retire whichever comes later. The decrease in face value continues until it reaches 25 percent of the original face value. The coverage is free.
If you retired on after December 9, 1980, but prior to January 1, 1990, you would have elected a reduction of 75 percent, 50 percent or No Reduction. This is where we can be clearer so that there is a complete understanding of the elections with no confusion.
Let’s talk about what the 75 percent reduction election means. If you chose the 75 percent reduction during the periods outlined, your BASIC life insurance will begin to decrease in face value by 2 percent every month starting with the second month after you turn 65 or your retirement date, whichever is later. The decrease is ongoing until it reaches 25 percent of the original face value. This insurance coverage is free for you. You pay no premium.
I am a huge proponent of – it is easier by the inch than the mile. For that reason, I am going to discuss each percentage reduction election separately. I think we will have a better understanding if we do it that way. Agreed?
P. S. Always Remember to Share What You Know.
RELATED TOPICS – More Federal and Postal Insurance Information
Federal Employees Health Benefits (FEHB)
Federal Flexible Spending Account (FSAFEDS)
Federal Long Term Care Insurance Program (FLTCIP)
Federal Employees and Medicare
Federal Employee Dental and Vision Insurance Program (FEDVIP)
FEGLI – The Order of Precendence
FEGLI: Order of Precedence
Now that we have discussed how a death claim will be paid. Let’s discuss to whom the death benefit will be paid. The Federal Government uses what is termed an Order of Precedence. The FEGLI Order of Precedence has no attachment to your Will. The Federal Government does not get involved in Wills and Probate. Instead, if there is no assignment of your FEGLI (Life Insurance) and no valid court order exists then the order is as follows ranging from first to sixth and in that order:
1. Designated FEGLI Beneficiary(s).
2. If no designation – widow or widower
3. If neither 1 nor 2 exists, your FEGLI will pass to the child or children. If any child or children is deceased, then equal shares will be paid to the descendants of the deceased child or children. If minors are involved, then the court will usually appoint a guardian to receive payment for the minor children.
4. If the above situation does not exist, then to the parents in equal shares or the whole to the surviving parent.
5. If none of the conditions above exists, then to the administrator or executor of the estate.
6. If all five of the conditions do not exist, then the next of kin as designated by the State in which the deceased lived – not the state in which the deceased died.
When planning your retirement future, it is important to gather and understand as much information as possible. Discuss the information with family and loved ones you trust. You can also check with your HR office about your current beneficiary designations and possibly with a qualified local FEGLI expert who can help you with your insurance selections and decisions.
P. S. Always Remember to Share What You Know.
RELATED TOPICS – More Federal and Postal Insurance Information
Federal Employees Health Benefits (FEHB)
Federal Flexible Spending Account (FSAFEDS)
Federal Long Term Care Insurance Program (FLTCIP)
Federal Employees and Medicare
Federal Employee Dental and Vision Insurance Program (FEDVIP)
FEGLI – Conversion
FEGLI Conversion
The term conversion is when a policy is converted (changed) into another type of policy, i.e. from a group life insurance policy to an individual policy without undergoing a physical examination to qualify. If you are a Federal or Postal Employee you will need to understand how the term ‘Conversion’ relates to FEGLI.
Your coverage as an employee ceases when you resign, complete 12 months in a non-pay status or when you retire. Regarding any of the above conditions, if you need life insurance, you can consider converting to a non-group individual policy and you will not have to be given a physical examination to qualify. With FEGLI (watch the video) this is challenging due to the typicaly costs associated with the new ‘converted’ policies available. If you are healthy, you would typically be better off Comparing your FEGLI on the internet or with a qualified FEGLI expert against the open market to determine the best option available for you and your family.
You may also want to convert to avoid the Mandatory Reduction in FEGLI Option A that commences upon reaching age 65 and you are retired. You can also choose to continue your Basic insurance into retirement and convert some or all of your optional insurance.
It should be noted that if you assign your insurance, you forfeit the right to convert your coverage leaving that privilege open only to the assignee. We will talk more in upcoming posts about Assigning your insurance.
Having a good understanding of FEGLI will assist you and your family in planning for and taking care of the final business of your life.
P. S. Always Remember to Share What You Know.
FEDERAL RETIREMENT INFORMATION
For more information federal and postal Retirement Planning
Additional FEGLI information HERE
For access to your TSP.gov login
Postal employees can access their LiteBlue.usps.gov account from here
FEGLI – Option A Standard
FEGLI Option A – Standard Insurance
The Federal Government offers 3 other insurance options and we’ll discuss each in separate posts. Let’s begin with Option A- Standard Insurance.
You are entitled to continue your Option A into retirement. Option A is worth $10,000 and the cost of coverage will be your full responsibility. Premiums do increase with age. With the second month after you reach age 65, or the second month after your date of retirement, if you are already 65, your Option A will be reduced by 2% of the $10,000 or approximately $200.00 per month until it reaches $2500. $2500 will be the amount paid as a death benefit. At age 65 premiums will cease.
Many federal employee wrongly assess that $10,000 will be payable upon their death. So we want to emphasize that the amount payable under Option A is $2500 upon your death. It is a good measure to discuss insurance options with your family members or someone you trust so that they will understand what to expect from your coverage and the benefits your survivors are eligible to receive.
When preparing for retirement ask all the questions you can think of that might help you reach your retirement goals and retire well. After all, it is your life and you deserve to have the best information possible to take you into your next new adventure with confidence.
Click HERE for information on Retirement Planning
Click HERE for information on FEGLI
Click HERE for information on TSP.gov login
Click HERE for information on FEGLI Calculator
FEGLI – Some Basic Facts
Basic FEGLI facts
Federal Employees Group Life Insurance (FEGLI) can be transported into retirement. As with your Federal Employee Health Benefis (FEHB) each employee must meet the five year or earliest opportunity to enroll requirement to continue coverage into retirement.
If you fail to meet the time requir
ement prior to retirement, coverage will continue for 31 days at no cost to you with the option to convert to an individual policy. Employees eligible to continue coverage into retirement must elect to do so, it is not an automatic conversion.
The cost of your life insurance depends on a number of factors: your age, the amount of coverage selected, and health risk factors. If you decide to convert some or all of your policy, the good news is you will not be subject to a medical examination to qualify for conversion.
It should also be noted that there is generally no open season for FEGLI. However, in the rare instance where there is an open season, it is generally not open to retirees.
It should be further noted that accidental death and dismemberment coverage available to you as an active employee is not available to you in retirement as part of the government’s insurance program.
Know the facts about FEGLI as life insurance is a very important part of the planning process to RETIRE WELL.
P. S. Always Remember to Share What You Know.
Federal and Postal Retirement Planning
Let’s Talk FEGLI
FEGLI
FEGLI (Federal Employees Group Life Insurance) is Group Term Life Insurance offered to Federal and Postal employees. Federal and Postal Employees are offered a number of great benefits to help them take care of themselves and their families.
Life Insurance has long been thought of as protection for family members in the event of death, more of a burial insurance. Life insurance covers burial expenses or what I like to refer to as taking care of “the final business of our lives.” In addition to covering burial expenses, life insurance may also be used to cover other outstanding debt as well as provide for survivors.
The federal benefit plan is designed to provide its members with a comprehensive array of services to protect and enhance the lives of members and their families——–Health Insurance (FEHB), Vision and Dental (FEDVIP) coverage, a Pension plan, a way to save for retirement via the Thrift Savings Plan (TSP) and the means to prepare for the final business of our lives —life insurance.
We will discuss in later posts The Provisions of FEGLI, How FEGLI Works in Retirement and Life Insurance – WHY?
P. S. Always Remember to Share What You Know.
Click HERE for information on Social Security
Click HERE for information on Federal Retirement
Click HERE for information on FEGLI
Click HERE for information on TSP.gov login
Information: Take It One Step At A Time
Do not get overwhelmed by trying to process too much information at once.
An enormous amount of information is shared on the subject of helping Federal and Postal employees retire comfortably. It is our aim to contribute and share what we know to help you retire well and to maximize your Federal and Postal benefits.
We liken the information provided to a restaurant with the finest menu imaginable. Although, you crave to try everything on the menu, the experience will be lost if you attempt to eat everything at once. Overdoing it loses its appeal.
There are so many things to understand and digest about FERS, CSRS the TSP, the Federal Retirement Systems and therefore retirement in general. So take it one step at a time, choose something from the menu and take your time digesting it so that you can savor the flavor and remember the experience.
By taking it one step at a time, you will be amazed at how much information you have digested and how better prepared you are to select exactly what fits your needs and smile your way into a retirement future you have control over. That is the key to retiring well.
P. S. Always Remember to Share What You Know.
