The TRICARE Fact Sheet Can Help You Choose the Best Dental Plan
/by mickey elfenbeinDo you want to make the most of your TRICARE dental coverage? Remember that dental coverage differs from TRICARE’S medical care, so it’s essential to understand the difference between plans. To learn more about each dental plan and if you qualify, check out the TRICARE Dental Options Fact Sheet.
This fact sheet is a tool that will help you see which dental coverage plans are available. So, use it to make the best choice for your dental health.
Here’s a breakdown of what the fact sheet highlights.
1. Active Duty Dental Program (ADDP)
ADDP offers civilian dental treatment to active duty service members. United Concordia Companies, Inc. (United Concordia) manages the program both within the continental U.S. (CONUS) and outside (OCONUS). If you’re outside the U.S., you must be remotely situated and registered in TRICARE Prime Remote Overseas. ADSMs in the CONUS are eligible for care under the ADDP if they are either referred by a military dental facility or remotely located. That means you live and work at least 50 miles away from a military dental clinic.
Check out the ADDP part of the fact sheet for more information on eligibility, obtaining care, and other topics.
2. TRICARE Dental Insurance Program
United Concordia administers the TRICARE Dental Program (TDP), a voluntary premium-based coverage. TDP is available both domestically and internationally. TDP is not available to ADSMs. Who qualifies? You can join TDP if you are a family member of:
i. an active-duty military member
ii. a National Guard, or
iii. a Reserve member.
TDP, as described in the TRICARE Dental Options Fact Sheet, provides complete coverage for most dental services. However, to obtain coverage, you must enroll in TDP. Check out the fact sheet for additional information on enrollment choices and prices.
3. Federal Employees Dental and Vision Insurance Program (FEDVIP)
FEDVIP is another optional program. The U.S. Office of Personnel Management (OPM) is in charge of it. FEDVIP is available for the following:
i. Retirees and their eligible dependents
ii. Retirees from the National Guard and Reserve
iii. Certain surviving spouses
iv. Medal of Honor recipients and their qualifying family members
FEDVIP offers a wide range of plan alternatives from various dental carriers.
Contact Information:
Email: [email protected]
Phone: 6122163911
Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
Early Retirement Reality Check
/by mickey elfenbeinEven if you like your work, there are times when alphabetizing the spice cabinet would be preferable to traveling a crowded train with hundreds of sniffling passengers. You could be considering early retirement as you wobble in the car next to a guy who has biked four hours to the station.
Unfortunately, not everyone is suited for early retirement. Indeed, it is not for most people. According to a poll conducted by the Employee Benefit Research Institute (EBRI), just 11% of today’s employees want to retire before 60. The reality of early retirement might be quite different from the dream for many of those who take the jump. Before you decide to retire early, consider a few things.
1. Health care is expensive.
If you were sick as a child, likely, you’ve already been diagnosed with an ailment or two. And if you’re like many people in their 20s and 30s today, those health problems don’t just go away when you turn 65. Believe it or not, most insurance companies won’t cover treatments for conditions present before your policy. And if you get sick after your policy begins, expect to pay extra for your health care.
Medicare doesn’t kick in until you’re 65. You’re on your own for medical expenses unless you buy a private insurance plan that will cover pre-existing conditions or take out an expensive rider to cover that risk after you retire.
2. Tapping your nest egg earlier can be costly.
Depending on how you invest your assets, you could see a significant drop in your portfolio’s value if you begin to liquidate at age 50. For most people, tapping savings represents a large percentage of their net worth, and the loss of that investment can be enough to derail any dreams they have of retiring early. Suppose retirement is still years away, and you’ve got no other sources of income. In that case, the best strategy might be to keep working and investing as usual.
3. Housing expenses don’t retire when you do.
When you retire early, it’s relatively common to move to a less expensive area. But don’t assume that your housing costs will go down as well. It’s pretty common for people to spend more on housing in retirement than they did when working full-time.
How much should you save? A benchmark rule of thumb is to replace 80% of your pre-retirement income. If you’re 35 and earn $70,000 a year now, aim to have about $56,000 saved by age 65 to continue living on about $10,000 per year from then on.
4. Extra income can be hard to come by.
Being your boss and setting your hours can be a great perk of early retirement. But unless you had already planned on working part-time, it’s unlikely that you’ll get the same kind of paycheck after retirement as you do while at work. That extra cash can make paying for health care and housing expenses easier without dipping into savings.
5. There’s a lot of time to kill.
Many people discover that they have a lot more free time as retirees than they ever expected. If you’ve been used to working 10-hour days for the last few decades, spending your days fishing or golfing can feel like an empty experience. As a result, some retirees find themselves longing for the structure of their old work schedules. Working part-time can be an excellent way to fill these hours and provide income at the same time.
What’s more important  not going to work every day or having enough money to pay your bills? Many early retirees find that there are tradeoffs involved in living the life they once dreamed about. Reality is often different from fantasy  but it can still be a rewarding life.
6. You may need to make new friends.
It can feel strange to have all day long to do whatever you want suddenly  and no one else around. But it’s a common experience for retirees who leave behind their co-workers, supervisors, and colleagues when they retire early. And even if you had a solid social network within your work environment, the chances are that most of them will be working still while you’re retired. So if the idea of playing golf every day on your own doesn’t appeal to you, consider starting a new hobby or taking up some volunteer activity in your community so that there’s someone else around during your afternoons and weekends.
7. Retirement can be tough on couples.
Many retirees find that they miss the structure of a work schedule, a shared social network, and a sense of meaning in their lives. If you’re married, your partner could experience similar feelings  even if they are happy to be retired. That can put added stress on your marriage as you both sometimes struggle with competing desires for time alone versus togetherness. In some cases, it might be helpful to take up new activities or hobbies separately so that each person has their own set of friends and social interactions outside the home.
Contact Information:
Email: [email protected]
Phone: 6122163911
Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
Re-designation of Many Federal Employees for Higher Pay Zones
/by mickey elfenbeinMany employees have been removed from their positions due to locality-based payments. It was planned and estimated by the evidence provided. According to the report provided by the U.S. Office of Personnel Management (OPM), many employees will be re-designated to an area of high locality for the year 2023.
This may apply to an estimated 32,000 employees. Each year, federal employees receive adjustments for their pay based on the Employment Cost Index for the workers of the private industries subtracting 0.5 percentage points. Therefore, allowance for locality-based pay would be made in areas where the difference in pay between federal and non-federal employees is much more than five percent.
New areas have been defined where the employees would receive the locality-based payments. Among the list of cities with new regulations, California, Fresno, Nevada, Rochester, New York, Washington, Reno, and Spokane will be the new locality pay areas. Also, many workers would be shifted to existing locality pay areas, the OPM said in the report.
Press Secretary Viet Tran said while stating to Federal Times that 85 percent of the federal workforce lives outside the area of D.C. Thus, the OPM is working to ensure that locality pay is competitive in every community throughout the country. Also, the Department of Labor and the OPM, has revised the Federal Salary Council recommendation to create four new pay localities, expanding the existing areas.
The federal Pay Agent has identified the areas with local pay discrepancies. Therefore, they have made some suggestions to the president so he can address them. It was created as a part of an annual review. The Secretary of Labor, along with the White House Office of Management, Budget, and OPM directors, have made up the president’s Pay Agent.
Furthermore, the changes that are in consideration to be made for locality pay areas are tentative and will only be approved once the suitable rule-making is complete to make these changes permanent. The timing for the rule-making has yet to be established. The modifications discussed for the locality pay area should be implemented from January 2024 at the earliest.
As per the Federal Employees’ Pay Comparability Act of 1990, the U.S. Bureau of Labor and Statistics has been asked to conduct a survey and collect data on salaried workers that are non-federal. The National Compensation Survey estimates the salary difference level of work from the occupational average as said by the reports. The Occupational Employment and Wage Statistics data indicates the average salaries of many occupations in every locality pay area. Moreover, the changes made for 2023 state that federal employees will see a salary rise across the board of 4.1%. Also, the average locality pay would increase to 0.5% from January.
Contact Information:
Email: [email protected]
Phone: 6122163911
Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
3 Dividend Stocks to Max Your Retirement Income
/by mickey elfenbeinThe fear of running out of money over death is greater among older Americans, which is an interesting truth.
And retirees are right to worry about how to make their money last. Since people are living longer, their money needs to last for a longer time. Adding insult to injury, the money earned by tried-and-true retirement planning strategies may not pay expenses today. That means seniors must take money out of their savings to pay for living costs.
The way your parents saved for retirement won’t work for you now.
In the late 1990s, 10-year Treasury bonds had a yield of about 6.50%, which meant they were a reliable source of income. But the yield today is much lower and probably not a good way for most people to fund their retirements.
Even though this yield drop may not seem like much, it adds up: if you invest $1 million in 10-year Treasuries, the rate drop means your return will be more than $1 million less.
For retirees, the declining bond rates are bad news. Social Security‘s future also doesn’t appear promising. Benefits from Social Security are still being paid today and shortly, but it’s anticipated that the money will run out as early as 2035.
There may need to be more than bonds and Social Security, which have been the main sources of retirement income for a long time, to meet the needs of retirees now and in the future. What if there was another constant and reliable way to earn money in retirement?
Invest in Dividend Stocks
Dividend-paying stocks are an excellent method to replace low-risk, low-yielding Treasury bonds and fixed-income investments with reliable, consistent income streams. High-quality, low-risk businesses typically issue these stocks.
Look for stocks that have been paying steady dividends for years (or decades) and have never cut their dividends, even when the economy was bad.
Searching for firms with a 3% dividend yield on average and solid annual dividend increase is one technique to uncover strong options. Many stock dividends go up over time, which helps to make up for the effects of inflation.
Here are three stocks that pay dividends that retirees might want to add to their nest egg portfolio.
BP (BP): The current dividend yield for BP (BP) is 4.24%, and it is paid out at $0.36 per share. The yield on the S&P 500 is 1.64%, and the yield on the Oil and Gas – Integrated – International industry is 2.52%. The company’s dividends grew by 10.15% annually in the past year.
Cadence (CADE): The cadence stock is currently giving out a dividend of $0.22 per share. Since the Banks-Southeast sector and the S&P 500 average only a 1.9% dividend yield, this company’s payout is 3.07%. Over the past year, the company’s dividends grew by 10% annually.
HAFC: With a dividend yield of 3.86% and a monthly payment of $0.25 per share, Hanmi Financial (HAFC) is an excellent investment. Compared to the present yield of the S&P 500 Index and the yield of the Banks-West industry, which is 2.31%, there is a big gap between these two. In the past year, the company’s dividends grew by 108.33% annually.
But aren’t stocks, in general, riskier than bonds?
In general, that is correct. But stocks are a broad category, and you can reduce the risks by choosing high-quality dividend stocks. These stocks can give you regular, predictable income and make your portfolio less volatile than the stock market.
The fact that many businesses, especially blue-chip stocks, gradually increase their dividends is a benefit of including dividend stocks in your retirement portfolio. The impact of inflation on your projected retirement income is mitigated.
Do you think about mutual funds or ETFs that focus on dividends? Keep an eye out for fees.
If you’re thinking, “I want to put money into an ETF or mutual fund that focuses on dividends,” do your research. It’s crucial to be aware of the high costs associated with some mutual funds and niche ETFs, which may lower your dividend profits or income and lessen the overall effectiveness of this investment plan. If you still want to invest in funds, do much research to find the best dividend funds with the lowest fees.
Contact Information:
Email: [email protected]
Phone: 6122163911
Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
Seven Tips To Help You Choose The Right Health Benefits Plan
/by mickey elfenbeinIf you are planning to get a health benefit plan, you must choose the right one because it is essential to consider your requirements and select a program that can cover them while staying within your budget. You also need to consider if any medication changes require different coverage or if you’ll need specialist care in 2023. Therefore, we have seven tips to help you choose the right plan and avoid flashy gimmicks.
1. Evaluate coverage and cost
Determine if the health plan covers your preferred doctor, hospital, and medications, if there are any extra benefits you might need in the future, and your monthly budget for insurance premiums. Understanding your current and anticipated needs for the upcoming year is essential. For instance, if you’re currently taking prescription drugs or require frequent doctor visits, you should make sure you select a plan that covers those services at an affordable cost.
2. Understand Your Deductibles
It’s essential to look at the total cost of a health plan before making a selectionâ€â€not just the premium amount but also co-pays, deductibles, and out-of-pocket costs associated with it. Deductibles are the total amount you must pay out-of-pocket before insurance pays their contribution to medical expenses. Ensure you understand the deductible amounts required before looking into other details of a health plan’s design.
3. Look Into Mental Health Care Benefits
You must make sure your health care benefit plan covers mental health too. Your physical health isn’t everything – any potential plan you pick should provide adequate mental health support. So, choose the plan with health services with integrative wellness counseling programs with reputable clinical professionals who understand individual patient profiles better, which could improve outcomes significantly over time.
4. Confirm Speciality Coverage Options
Investigate additional offerings such as rewards programs that promote healthy behavior, access to health centers focused on preventive care options (e.g., disease management), and 24/7 access to urgent care clinics. Remember additional benefits such as dental, vision, hearing, or critical illness insurance. You can also add these services to specific plans providing a comprehensive approach to your healthcare needs.
5. Compare Plans Side By Side
Each plan offered will have different coverage and pricing structuresâ€â€some may be more expensive than others, with higher premiums but lower co-pays for doctor visits. Meanwhile, some may offer more extensive coverage across more categories, such as dental, vision, etc. However, at a higher premium rate compared to other offerings from competing insurers or state exchange marketplace website listings.
Make sure to compare all variables side-by-side before deciding what kind of health insurance best suits your needs this coming year, 2023.
6. Anticipate Next Year’s Possible Expenses
When deciding which plan would work best for you, consider any significant events that may occur throughout the next few years, such as surgeries or births, which require different coverages from different providers. Your benefit plan should cover these significant expenses, or it will be useless.
7. Opt For Virtual Care Services
Understanding the breadth and depth of provider options available in networks is essential. Contacting physicians’ offices directly or using online directories can provide more detailed information beyond what one may find on an insurance company’s website.
Ensure that the network you choose works well with where you live, work and get medical care, including telehealth services when applicable. Besides, looking towards a plan that offers virtual access to doctors without traveling outside the home is preferable. It can save time as well as money when visiting medical professionals.
Final Words
In the face of rising inflation, many people are considering changing their lifestyles and spending patterns. However, it is critical to assess your health and finances regarding healthcare. The yearly or open enrollment season has arrived, giving more than 12 million Floridians the option to choose or replace their health insurance plan for the following year, 2023.
Open enrollment is an excellent time to assess how frequently you use healthcare services and determine if you should keep your current plan or switch to another. It’s also a time to analyze your total care expenditures to ensure you’re selecting the most effective strategy for the upcoming year’s budget. So, It’s time to follow the tips and select the perfect health plans.
Contact Information:
Email: [email protected]
Phone: 6122163911
Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
New Rules Set Tone on Federal Employee Performance and Conduct Issues
/by mickey elfenbeinThe Office of Personnel Management (OPM) has issued a new set of rules for federal employees on performance, conduct, and ethics, which came into effect on January 16, 2018. The new rules aim to increase accountability and transparency in the federal government. The Trump administration has made it clear that they prioritize performance over politics. The rule went into effect on Aug. 1, 2016. The rule was created in response to the numerous misconduct and misconduct-related cases that have hit the headlines recently. The rule, part of the Federal Employees Performance, Conduct, and Ethics Act of 1992, aims to provide employees with a general framework of performance, conduct, and ethics standards. The new rules on federal employee performance, conduct, and ethics are set to end “business as usual†at the federal government. It means that there will be more focus on how federal employees are performing and how to improve it going forward.
Employee Performance Plan
OPM established new rules to tone federal employee performance based on an employee performance plan. The employee performance plan is developed in an eight-step procedure that guarantees employee performance tracking without discrimination. The eight steps are as follows:
Step 1: Look at the overall picture.
Step 2: Determine work unit accomplishment.
Step 3: Determine Individual accomplishments that support work unit goals.
Step 4: Covert expected accomplishments into performance elements, indicating type and priority.
Step 5: Determine work unit and individual measures.
Step 6: Develop a work unit and individual standards.
Step 7: Determine how to monitor performance.
Step 8: Check the performance plan.
Few Restrictions and Implications of New Rules
There were some restrictions OPM mentioned in the new regulation plan. Let’s dig into it more to know about their implications as well. If you are a federal employee, read more about the changes.
1. What are the new restrictions by OPM for agencies
OPM will no longer require agencies to report performance ratings for Federal employees. For the first time, agencies cannot report performance ratings for their employees. The decision comes after a lengthy debate on the issue. OPM said this would simplify the process and allow agencies to focus on their core mission. Union leaders and employees have said that the new rules will make it easier for the government to lay off employees. These restrictions are aimed at placing greater stress on a supervisor’s attempt to assist the employees in improving their performance. OPM also reminded agencies that it is the responsibility of supervisors to ensure that disciplinary penalties are just, reasonable, and suitable to the evidence and situations.
2. What are the implications of the new rules
The new rules imply that federal employees will be held to a higher standard of conduct. These rules are meant to help the government eliminate waste, fraud, and abuse and protect the federal government’s integrity. The rules also have a more positive impact on the employees themselves, who will have more clarity on their rights and responsibilities. It will help them understand their roles and responsibilities more clearly, and they will be able to make better decisions.
3. What are the consequences of the new changes, and what are the implications?
The recent changes to federal employee performance, conduct, and ethics rules have been met with mixed reviews. While some praise the new rules, others express concern that they may be too stringent and cause employees to be unfairly punished. The rules changes are not expected to change the number of federal employees who commit misconduct, but they will change how the federal government deals with misconduct. The new rules are expected to be fairer and ensure that federal employees are held accountable for their actions.
Conclusion
“Federal employees have a responsibility to the American people, and this rule will help them understand how they can do their jobs better,” said OPM Director Jeff T.H. Pon. “The rule is grounded in accountability, integrity, and transparency principles.” The rule does not define a “serious” or “substantial” violation. However, it outlines several factors that will be considered in determining whether a violation is serious or substantial.
Contact Information:
Email: [email protected]
Phone: 6122163911
Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
Report Cautions Federal Employees on Recruiting Friends, Family
/by mickey elfenbeinThe inspector general’s office for the Department of Justice has issued a warning that might be applicable elsewhere, cautioning ATF personnel against recruiting relatives and friends for employment at the agency.
It is usual for ATF personnel to recruit from among friends and family for unique agent jobs, according to a management alert, which is often the result of information cropped up in an ongoing investigation that an IG considers worthy of quick action.
These roles are filled using the Schedule B power granted to exempted services, allowing more precise recruiting to meet an organization’s mission requirements.
However, agencies that adopt this authority still need to ensure they’re employing people based on merit and that their staff isn’t engaging in awkward practices like giving someone a leg-up or lobbying for a family member to get hired.
As stated in the study, recruiting among friends and family is inappropriate. A referred candidate must still overcome numerous obstacles to be hired at ATF, including submitting a formal application and completing a Physical Task Test, panel interview, written test, polygraph testing, and background check.
Despite this, the document acknowledged that recruitment of friends and relatives might, in some situations, give rise to concerns under the federal merit-based employment legislation or the Standards of Ethical Conduct, even if the eventual hiring decision is devoid of nepotism.
However, any ATF official’s statement endorsing or recommending the candidacy of a family member they are recruiting could constitute improper advocacy of the relative’s appointment. It is true even if the official is not the ultimate decision maker or participates in the relative’s hiring.
Though ATF does not have a written policy governing the recruitment of friends and family, it does not provide employees engaged in recruiting activities with any specific process to follow when recruiting a friend or family member, and does not provide training or guidance to employees regarding potential ethical, appearance, or merit-based hiring issues that can arise during the recruitment stage.
The Inspector General expressed concern that without such a policy, process, or guidance, ATF employees may not understand how the federal merit principles and ethical standards apply at the recruitment stage and may unwittingly run afoul of those principles and standards in performing their Schedule B recruitment duties.
Contact Information:
Email: [email protected]
Phone: 6122163911
Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
House Members Demand Retirement System Improvements from OPM
/by mickey elfenbeinTwelve House Republicans have asked OPM about the time it takes for federal retirees to start collecting their full benefits, claiming that their constituents have raised concerns about situations where the wait was as long as 13 months.
The letter written by Rep. Andy Biggs, R-Ariz., concentrates on the opinions of CBP officers, but the fundamental problem affects retirements from all government departments and has existed for a while. According to a recent OPM report, the average processing time after obtaining the data from the employing agency is 89 days, which is greater than the objective of 60 days and the average processing time for cases lasting longer than 60 days is 121 days.
Retirees receive a partial benefit while their applications are being processed by OPM, often averaging around 80% of the anticipated final benefit amount, with a catch-up payment following the adjudication’s conclusion. The interim payout, however, is often just around half of the benefit, and in certain situations, it is only a tenth, according to the letter.
Our offices have tried to help constituents facing these difficulties, but OPM has been silent. For example, the OPM congressional portal does not provide congressional staff with any information regarding the progress of submitted cases. In addition, the letter stated that attempts to contact OPM congressional liaisons via phone and email were unsuccessful.
The letter requested that processing timelines be detailed, including any variations by agency and degree of supervision, and that information regarding the amount of on-site work performed by OPM retirement processing staff be provided.
Contact Information:
Email: [email protected]
Phone: 6122163911
Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
Part 1
/by mickey elfenbeinThis article explores a retirement option for FERS employees known as deferred retirement. We’ll talk about the requirements for a FERS employee to choose deferred retirement and the benefits and drawbacks of it.
Some of the Reasons a FERS Employee Might Choose Deferred Retirement
To help understand how a deferred retirement might be the only option for a FERS-covered employee, we’ll look at two scenarios:
Scenario 1: A FERS-covered employee is ineligible to retire and wishes to leave federal employment rather than work the extra years required to qualify for immediate and unreduced FERS annuity retirement. Table 1 shows the three minimum age and years of service combinations that enable a FERS-covered employee to retire under an immediate and unreduced FERS annuity retirement.
Scenario 2: A FERS-covered employee is younger than their MRA, and their agency is undergoing a reduction in force (RIF), a substantial reorganization, or function transfers. The employee is ineligible for retirement and must quit government employment.
A FERS-covered employee is qualified for deferred retirement, and will receive a FERS annuity for the remainder of their life if they meet the following requirements:
• Satisfies the minimal criteria for civilian service.
• The employee doesn’t request a refund of their FERS Retirement and Disability Fund contributions while leaving federal service (made through payroll deduction while working under FERS).
• When the employee reaches the requisite age to begin collecting their FERS deferred annuity, they formally inform OPM‘s Retirement Office of their eligibility for the deferred annuity.
These requirements are explored and clarified more below.
Minimum Civilian Service
A FERS employee must have at least five years of creditable civilian service to be eligible for deferred retirement. Examples of creditable civilian service for this purpose include:
• Full-time or part-time permanent service in which full FERS payments were made to the FERS Retirement and Disability Fund through payroll deduction.
• “Nondeduction” (intermittent or temporary) service for which a total FERS deposit (including interest charges) was made before retirement from federal employment.
• Service for which full Social Security (FICA) payroll taxes and full or reduced CSRS deductions were deducted and not reimbursed.
• For employees eligible for a CSRS annuity component for their retirement (referred to as “Trans” FERS personnel) for deferred retirement:
(1) “Non-deduction” (temporary or intermittent) service subject to CSRS retirement regulations regardless of whether a deposit is made or is considered under the alternative annuity provisions.
(2) Service for which full CSRS retirement payments, typically 7% of salary, were deducted, even though CSRS contributions were returned and not re-deposited.
Non-creditable Civilian Service
The following forms of FERS service cannot be used to meet the five-year minimum civilian service requirement:
• FERS service for which a FERS-covered employee claimed a refund of FERS contributions paid through payroll deduction while the employee:
(1) Previously worked for the federal government.
(2) Resigned from the federal government and claimed a refund of FERS contributions (paid through payroll deduction).
(3) Returned to federal employment but didn’t re-deposit those contributions.
• Any non-deduction (temporary or intermittent) service undertaken before 1989 in which the entire FERS deposit required for FERS retirement eligibility requirements wasn’t completed before departure from service.
• “Non-deduction” (temporary or intermittent employment) conducted after December 31, 1988, unless included in a CSRS annuity component (applicable to a “Trans” FERS employee).
Please note that any unused sick leave time at the time of departure from federal employment would be permanently lost and hence not creditable for FERS retirement eligibility or the computation of the FERS pension, as will be detailed.
When Does a Deferred Annuity Start?
A FERS employee who retires through the deferred retirement option can earn their deferred FERS pension later. The commencement date of the departed employee’s deferred FERS retirement and first FERS annuity check will be determined by the number of years of creditable service the employee had at the time of their formal departure from federal employment.
Table 3 indicates the departing employee’s combination of years of creditable FERS service and the earliest age at which they’re entitled to receive their first deferred FERS annuity payment.
The following are some examples:
(1) As of May 2022, Bill has 32 years of FERS creditable service. Bill is 51 and has an MRA of 57, which he will reach in July 2028. If Bill retires under a deferred retirement plan, his deferred retirement will become effective in July 2028, and he will be eligible for his first FERS annuity check in August 2028.
(2) As of May 2022, Sandra has 23 years of FERS creditable service. Sandra is 48 and will be 60 in June 2034. If Sandra retires under a deferred retirement plan, her deferred retirement will become effective in June 2034, and she will be entitled to receive her first FERS annuity check in July 2034.
(3) Taylor, 38, departed the federal government in May 2017 after six years of FERS creditable service. Taylor will be 62 in August of 2046. Taylor’s deferred retirement will take effect in August 2046, and he will be entitled to his first FERS annuity payment in September 2046.
Contact Information:
Email: [email protected]
Phone: 6122163911
Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
Which day of the month can you expect your Social Security check?
/by mickey elfenbeinEach month, beneficiaries receive Social Security retirement payouts. Benefits are paid the month after the month in which they’re due. For example, a recipient would get June’s benefit in July, but which day of the month does the check arrive?
When a person receives their payment is determined by various factors. These include their birth date and the record on which the benefits are being claimed:
If you have benefits on your record, the exact day you get them is determined by your date of birth.
If you’re getting benefits on someone else’s record, such as for a deceased spouse, the payment date will be determined by their date of birth.
Those getting spousal benefits under their live spouse will also receive benefits based on the date of birth of their spouse.
Schedule of Social Security payments
The following is the payment schedule:
Those who began receiving Social Security payments before May 1997 get them on the third of each month. If the third of the month comes on a Sunday, the payments are made on the preceding Friday. Suppose you receive both Social Security and Supplemental Security Income (SSI). In that case, you receive Social Security payments on the third of each month and your SSI benefits on the first.
Supplemental Security Income (SSI) is a government program that provides supplemental income to handicapped, blind, and elderly individuals and families with limited income. SSI benefits are paid by the Social Security Administration (SSA). However, the program is supported by general tax revenues rather than Social Security taxes.
How will you get your Social Security check?
If you haven’t already, setting up direct deposit is one of the best methods to ensure that you receive your Social Security payment on time. That’s possible when first applying for Social Security benefits. If you haven’t signed up for direct deposit at the time, you can do so now using your mySocialSecurity account.
With a mySocialSecurity account, you may have access to a site where you can manage many of your Social Security needs. You may use mySocialSecurity to seek a new Social Security card and estimate your future benefits, among other things. You may also set up your benefits to be paid by direct deposit using this platform. To create an account, you don’t need to be a retiree or receive Social Security benefits.
Another option for opening an account is to call the Social Security Administration (SSA) toll-free at 1-800-772-1213.
Those who don’t have a bank account can use the Direct Express card program to receive payments. With this program, deposits from federal payments, such as Social Security benefits, can be sent straight to the recipient’s card. To enroll in the program, contact 1-800-333-1795 or visit www.godirect.org.
Can I get my money by check?
When registering for Social Security or SSI benefits, you must choose whether to receive your benefit payments online (through direct deposit or Direct Express). According to the SSA, if you now get your benefit payment by check, you must switch to one of the electronic payment methods.
There are some exceptions, but benefit payments must generally be sent through one of the two electronic modes: direct deposit or Direct Express.
Is Social Security income taxed?
According to the Social Security Administration, approximately 40% of all people receiving Social Security benefits will be required to pay taxes on those payments.
You should expect to pay taxes on your benefit if your income exceeds $25,000 and you submit an individual federal tax return.
You must pay taxes if you submit a joint return and your combined income exceeds $32,000. According to the SSA, if you’re married but filing separately, you’ll likely have to pay taxes on your benefits.
Contact Information:
Email: [email protected]
Phone: 6122163911
Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
6 basics of social security information you should know
/by mickey elfenbeinSocial Security payments are one of the three parts of the Federal Employees Retirement System (FERS), together with the Thrift Savings Plan (TSP) and the FERS pension. Social Security monthly benefits are essential to a federal employee’s retirement.
Here are six things to think about when it comes to your retirement income.
1. What Determines Your Monthly Benefit Amount?
That depends on various variables, the most important of which is your lifetime income from jobs for which you have paid Social Security taxes. Your “basic” benefit is calculated by Social Security using the average of your 35 highest earning years adjusted for inflation. This average is then entered into an advanced calculation. The age you are when you apply for benefits will also impact the amount. Even though you won’t know for sure until you apply, you can estimate using the AARP Social Security Calculator.
As of June 2022, the typical Social Security benefit (except survivor and disability benefits) was $1,592 gross per month. Remember that a portion of your Social Security may be subject to taxation if your annual income exceeds a specific threshold ($32,000 for a married couple and $25,000 for an individual).
The following factors determine your Social Security amount:
- Working experience
- Age
- Start of benefits
- Marital situation
Although it is not factored into the calculation, it is sometimes thought that the IRS life expectancy factor affects one’s Social Security payment.
2. What is Full Retirement Age?
It’s crucial to think carefully before withdrawing your benefits. You become eligible for benefits for the first time at age 62 and a half. Still, if you continue to work, your benefits will be subject to the dreaded earnings test, which results in cutbacks if your earned income exceeds a specific threshold – $19, 560 in 2022. Knowing your full retirement age (FRA), at which point you can still receive your entire pension while working, is a good idea. Depending on when you were born, your FRA will be between the ages of 65 and 67. For instance, your FRA is 67 if you were born in 1960 or after.
3. Medicare and Living Wage Adjustments (COLAs)
Direct Medicare B premium deductions are made from your Social Security check. When hearing about impending COLAs, which are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and come once a year, it is crucial to keep this in mind. Your monthly benefit remains the same if neither inflation nor deflation occurs. If so, your Social Security pension will rise by the same amount as the CPI-W. The COLA for 2022, for instance, was 5.9%. According to estimates, the COLA for the following year will be the highest in about 40 years.
Nevertheless, even though COLAs raise Social Security income, healthcare costs – and hence Medicare premiums – often increase along with inflation, generally offsetting any COLA increase. However, a decrease of 8.6% beats a reduction of nearly 14%. The 2022 Medicare B premium rise was 14.5%, eliminating the 5.9% adjustment.
4. Survivor Benefits
Any surviving children or spouse can be qualified for Social Security survivor payments in the event of your passing. Many government employees may be unaware of this. Even if they are, they may not be aware that the survivor benefits are not the entire amount the original beneficiary would have received.
5. Benefits for ex-spouse
If all five of the following facts about an ex-spouse or ex-husband are accurate, they may be eligible to receive a share of your Social Security benefits:
1. They are 62 years old or older.
2. Neither of them has remarried.
3. At least ten years were spent in the marriage.
4. The benefit they are entitled to is lower than the benefit awarded to them if you were their ex-partner.
5. You must also qualify for Social Security through retirement or disability benefits.
6. What are the maximum benefits one can get per month?
The highest monthly benefit is $3,345 for a worker filing for Social Security at full retirement age in 2022. That’s roughly double the average retirement pension ($1,666 in April 2022). Your earnings must have surpassed Social Security’s maximum taxable income, or the annual adjusted cap on the percentage of your income subject to Social Security taxes, for at least 35 years of your working life to be eligible for the top benefit.
Contact Information:
Email: [email protected]
Phone: 6122163911
Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
How marriage or divorce can have an impact on your survivor benefits under the CSRS and FERS
/by mickey elfenbeinMarital affairs should be confidential; however, with survivor benefits, the government needs to know about the state of your relationship, whether married, separated, or divorced.
Your survivor benefits under (CSRS) and (FERS)
The table below outlines the survivor benefits working mode under the Civil Service Retirement System and Federal Employees Retirement System.
| FERS | CSRS | |
| Partial survivor benefit | 25% of the (gross) annuity | 55 percent of your annuity portion (minimum of $22.00) |
| Amount of partial-survivor benefits | 5% of annuity price | 2.5 percent of the initial $3600 ($90 per year)
and 10 percent of your CSRS annuity defined portion (minus $3600) |
| Full survivor benefit | 50% of the (gross) annuity | 55 percent of the (gross) annuity |
| Full survivor benefit amount | 10% of annuity price | 2.5 percent of the first $3600 ($90/yr.) + 10 percent of CSRS annuity (minus$3600) |
Influence of Marriage on Your Survivor Benefits
It would be best to decide as a federal government employee when you are about to retire and claim your benefits. You must decide either the full survivor or partial benefits. You can also waive your entire survivor annuity. Your spouse must approve and sign the waiver in your application form for retirement to waive or decrease benefits. Once you have done this and received your payment for the first month from CSRS or FERS, your option cannot be reversed, except if you end your marriage by divorce, annulment, or death.
What will happen if you, as a federal employee, die first?
The Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) will stop reducing survivor benefits from your account. Also, the reduction made before your death will not be paid back.
If you get married after retirement
Your survivor benefits may be included in your pension income as a federal retiree; suppose you made the change within two years after marriage? This will lead to two decreases in your pension income. The first decrease is for the payment of survivor benefits. In contrast, the second decrease is below 5% of your unreduced annuity cost. Even if your marriage ends with your annuitant, the annuity will still be permanent.
What happens if you get married back to your spouse after your retirement?
Suppose you and your spouse decide to give up survivor benefits and later divorce after your retirement. Somehow, after the divorce, both of you choose to get back again; you cannot add more than the selected survivor benefits you have chosen during your retirement.
If you, as a federal government retiree, divorce after your retirement
Your ex-spouse is qualified to receive the FERS or CSRS survivor benefits. Still, they need a relevant court order stating that it may only be for your selected survivor benefit option during retirement. But if the benefits were sacrificed when you are married, they cannot be included after your divorce.
What happens if you get divorced when you are still in government service?
Don’t be surprised; your ex-spouse is still eligible for the CSRS or FERS survivor benefit. However, you can only revise your plan before you retire or die through a court order. In addition, your ex-spouse’s survivor benefit may stop if they are late or remarried before age 55. However, suppose your marriage to them exists for thirty years or beyond. In that case, it does not matter if they remarry before they are 55 years and are entitled to your survivor benefits.
Contact Information:
Email: [email protected]
Phone: 6122163911
Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
A 6% COLA Increase is Now Possible
/by mickey elfenbeinFollowing a 0.5 percentage point increase in the inflation index used to compute the COLA in April, the COLA count stands at 6% through seven months of the counting period for the January 2023 federal retirement cost of living adjustment.
Unless inflation changes direction throughout the rest of the measuring period, the count is on track to surpass the 5.9% rise received in January for those retiring under CSRS and 4.9% for those retired under FERS who are eligible for COLAs (generally not until reaching age 62).
That was the most significant increase since the 8.7% paid in 1982 when the FERS system existed.
COLAs go into effect on December 1 of each year and are applied to annuity payments the following month. COLAs for persons who have been retired for less than a year are prorated according to their retirement date. If you retire in January, your first adjustment will be for 11/12ths of the COLA amount in January of the following year. It will be 10/12ths if you retire in February, and so on. COLAs in the future will be for the whole amount.
COLA According to the Consumer Price Index
The COLA is calculated using the average change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI/W) average from one year to the next. Benefits are frozen but not lowered if the inflation rate is negative. Also, the beginning point for the following COLA count remains the same in that circumstance.
Note: COLAs for Social Security follow the same methodology, except a full Social Security COLA. Even if you’ve been receiving benefits for less than a year, you’ll get a COLA.
Contact Information:
Email: [email protected]
Phone: 6122163911
Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
Is It Possible That The Social Security COLA Will Reach 9% in 2023?
/by mickey elfenbeinThe boomer generation’s journey into retirement has not been easy, particularly regarding money and purchasing power. According to Mary Johnson, a Social Security Policy Analyst working with the Senior Citizens League, the purchasing power of the benefits received by people who retired before the year 2000 has decreased by 40% over the past fifteen years.
According to the most current report from the organization’s 2022 Social Security Loss of Buying Power Study, this represents the most significant decrease in purchasing power since the study’s inception in 2010.
The analysis indicates that the loss of 10 percentage points was solely the result of high inflation during this year. Since March 2021, home heating oil and gasoline prices have increased the highest among the ten usual expenditures for seniors that Johnson measures. Specifically, the cost of home heating oil has risen by 79%, while the price of gasoline has increased by 51%.
However, the price of food, as well as the premiums for Medicare Part B, have both increased. The most current estimate Johnson has provided for the Social Security cost-of-living adjustment (COLA), which is calculated using data on consumer prices, has the COLA for 2023 somewhere in the vicinity of 8.6%.
Efforts to Promote Change
There has been a recent uptick in the number of individuals arguing that the Consumer Price Index for the Elderly, often known as the CPI-E, should be utilized as the standard by which yearly cost of living adjustments (COLA) is calculated.
This includes Senators Bernie Sanders, I-Vermont, and Elizabeth Warren, D-Massachusetts, who, along with a group of Democratic senators, submitted a new measure on Thursday to repair Social Security. The Social Security Expansion Act proposes to modify the method used to calculate COLAs to the Consumer Price Index for All Urban Consumers.
The Social Security 2100 Act, sponsored by Representative John Larson, Democrat of Connecticut, likewise suggests changing the CPI-E. During his candidacy for the presidency, Vice President Joe Biden called for this move, in addition to other Social Security changes.
In addition to Social Security and senior advocacy organizations such as The Senior Citizens League, calls have been made for the CPI-E to be used instead of the CPI. The CPI-E was developed in 1987 by the United States Bureau of Labor Statistics (BLS) at the direction of Congress.
The Most Significant Concern of Retirees is Inflation
Even with that, it’s possible that it won’t be enough to keep up with the escalating prices. Treasury Secretary Janet Yellen recently issued a warning testimony before the Senate Finance Committee that the United States is currently experiencing unacceptably high inflation levels. She also stated that the White House would likely revise its forecast upward for U.S. inflation, which showed prices rising this year at nearly twice the rate seen before the pandemic.
The Lack of Savings is Making Things Worse
According to Johnson, the agony of this situation is exacerbated by the fact that many elderly and disabled people who receive Social Security benefits do not have significant savings or other resources to turn to when prices increase. According to surveys carried out by the Senior Citizens League over the previous two years, almost 45% of all seniors report having very little or no savings at all, which leaves them highly reliant on Social Security.
Contact Information:
Email: [email protected]
Phone: 6122163911
Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
Social Security Differences by Gender
/by mickey elfenbeinWhile the numbers for your “average” Social Security recipients are reported regularly by the Social Security Administration (SSA), the statistics can vary depending on many factors. From gender to years spent within the labor force and lifespan and overall earnings, the Social Security Administration (SSA) computed the data differently. By pulling the numbers from the Department of Labor (DOL), Social Security Administration (SSA), and Bureau of Labor Statistics (BLS), we can determine the most vital figures by gender.
The existence of a gender-based pay gap is a historical fact based on the available data, with men and women earning vastly different salaries. Because Social Security benefits are dependent upon a citizen’s lifetime earnings, the pay gap continues in retirement through Social Security payouts. A report released by PayScale noted that, in 2022 alone, women earned 82 cents for every dollar their male counterparts earned.
The income earned by an individual, regardless of gender, plays a vital role in the final determination of qualifying Social Security benefits. On average, men have higher incomes than women, which means their Social Security retirement benefits will also be higher. Furthermore, men have a higher level of participation in the workforce than women, meaning fewer women participate in Social Security contributions overall.
On average, women continue living longer lives than men, producing unique data within the Social Security system. As such, women make up more than 55% of Social Security benefit recipients, whereas men make up 45% or less. Over the course of a lifetime, this information helps even out payout balances. While men receive a higher payout, women receive payouts for a more extended period.
These differences can be dramatic, with retired male citizens earning $1.7k per month on Social Security, compared to women receiving an average of $1.3k. With more women taking on part-time work than men, it’s easy to see how these rates are so different from one another. Ultimately, these payout differences equate to a 24% difference across the board, further highlighting the issues associated with gender-based pay gaps in the United States.
Contact Information:
Email: [email protected]
Phone: 6122163911
Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
Why I Consider My Social Security Benefits to Be a Bonus When I Retire
/by mickey elfenbeinSocial Security generally provides a large amount of seniors’ income. Some seniors depend solely on such perks for financial assistance. However, I don’t plan to rely on retirement benefits. That doesn’t mean I won’t profit from the program. There are rumors that Social Security could soon run out of money, but the worst-case scenario is benefit cuts. These cutbacks will end the program. Despite this, I approach Social Security differently. I won’t depend on those benefits to entirely fund my senior living costs. I see Social Security as extra money. Why?
Social Security was founded with good intentions. However, it falls well short of expectations in current times when it comes to assisting elders alone.
The program was never meant to be seniors’ sole source of income. In the past, businesses gave pensions to long-term workers. Currently, the private sector has mostly abandoned this strategy. Individual employees must now save to supplement Social Security income.
The amount of your pre-retirement income that Social Security will replace will only be 40%. If you make more than the average, the percentage of your pay that your benefits will replace will be even lower than if you make the average. Retirees need 70 to 80% of their prior salary to live comfortably. As a result, relying heavily on Social Security may be a dangerous option.
I’ve also mentioned benefit cuts. If Congress doesn’t solve Social Security’s financial problems quickly, the scenarios above might happen in a little over a decade. If benefits are cut, they will replace less income.
Due to these and other circumstances, I won’t invest too much in Social Security. I also believe it’s necessary to be active in planning for the forthcoming event, which means I must work harder to save money for my 401(k).
I control how much I save. I can work more and make wise spending choices to save for retirement. I can’t depend too much on Social Security’s benefits since I can’t control its future.
Because of this, I find it easier to consider Social Security money supplementary rather than necessary for daily needs. I plan to construct a retirement budget that considers how much I may withdraw from savings and how much I can earn via part-time work.
If my Social Security payment is more than expected, I’ll have more money for my hobbies and interests. If I don’t use it all, I may gift it to loved ones or donate it.
But I don’t want to be worried about losing my benefits or having the program changed without my input. If I don’t rely on Social Security, the strain will ease. If you’re like most Americans, your retirement savings are several years behind. Knowing several “Social Security secrets” may boost your retirement income.
Contact Information:
Email: [email protected]
Phone: 0
Bio:
Mickey specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. His mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mickey’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
Only 1% of participants aced this Social Security retirement benefits quiz. Why should you check your expertise before making a claim?
/by mickey elfenbeinWhen to start collecting Social Security may be one of your major retirement decisions.
Many who are at or near the age to choose may need to review the program’s guidelines.
MassMutual handed 1,500 55-65-year-olds a 13-question true/false quiz.
65% of students failed or received a D. 18% of respondents achieved a C, 12% a B, and 6% an A. Only 1% of responders got 100%.
Claiming benefits is one of two time-sensitive retirement decisions. The other is health insurance.
There are specific rules, deadlines, and dates that you have to meet. And if you’re not careful, you may learn that oversight is costly.
Consider your age-based perks. Based on their earnings history, most persons approaching retirement will receive their full benefits at age 67. Delaying until age 70 will increase their monthly payouts.
Personal circumstances, such as a spouse or children who may benefit from your claim, are also important.
The quiz is available below, and you need to answer each of the statements with true or false. Then you can look at the correct answers found at the bottom.
If you want to review Social Security‘s rules, an excellent place to start is the agency’s website.
True or False?
1. Early filing (before my full retirement age) reduces benefits in most cases.
2. If I get benefits before my full retirement age and keep working, my benefits may be reduced depending on how much I earn.
3. My spouse can get benefits from my record even if they have no personal earnings history.
4. If my spouse dies, I’ll get both my full benefit and theirs.
5. If I’m in a same-sex marriage, Social Security retirement eligibility criteria are different.
6. The money deducted from my paycheck for Social Security is deposited into a particular account for me and stays there, accruing interest until I begin receiving Social Security payments.
7. Current law could lower Social Security benefits by 20% or more by 2035.
8. If I file for retirement benefits and have dependant children under 18, they may qualify for Social Security too.
9. If I get divorced, I could claim Social Security based on my ex-spouse’s Social Security earnings record.
10. According to the current Social Security law, the full retirement age is 65, regardless of birth year.
11. If I delay Social Security past 70, I’ll keep receiving delayed retirement credit increases every year I wait.
12. Social Security retirement benefits, like withdrawals from a standard individual retirement account, are subject to income tax.
13. To get Social Security benefits, I must be a U.S. citizen.
Answers
- True (89% of respondents answered this question correctly)
- True (82%)
- True (72%)
- False (68%)
- False (65%)
- False (62%)
- True (60%)
- True (58%)
- True (57%)
- False (56%)
- False (49%)
- False (42%)
- False (24%)
Contact Information:
Email: [email protected]
Phone: 0
Bio:
Mickey specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. His mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mickey’s job to be an expert on the various programs and to stay on top of changes.
Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.
He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.
Coronavirus Pandemic – Dipping into Retirement Funds Sponsored by Mickey Elfenbein
/by mickey elfenbeinAs per Mickey Elfenbein, wouldn’t it be ideal if we could build retirement funds knowing that absolutely nothing will go wrong over the years? Unfortunately, we don’t have this luxury, and the COVID-19 pandemic is another example of how forces outside of our control can severely impact our retirement. Some people have been forced into early withdrawal, but it’s essential to understand the ramifications of this decision (including future shortfalls and tax bills).
Wherever possible, we recommend looking for alternative solutions. For example, some have been able to sell unwanted possessions, cut down on the luxury expenses, ask for concessions on payments, reduce or stop retirement contributions temporarily, seek grants or other government help, or dip into additional non-retirement savings.
According to Mickey Elfenbein, if you don’t have any other option but to use retirement funds, proceed with caution, and make smart decisions. For example, those unlikely to pay the money back should take from a Roth IRA. If you do plan on paying the money back, take advantage of the new coronavirus hardship withdrawal.
Here are some of your options during these difficult times explained by Mickey Elfenbein:
Coronavirus Hardship Withdrawal
Recently, the government released a stimulus package, which included an option to take $100,000 from an IRA or 401k. With no mandatory withholding or penalty, even the taxes that result from the withdrawal come with increased time to pay. If necessary, we can spread the tax over 2020, 2021, and 2022 returns. As long as you pay the amount back within three years, any taxes paid can also be refunded.
Are you eligible for the withdrawal? It depends on whether yourself, dependent, or spouse has received a positive diagnosis of the COVID-19 disease. Additionally, eligibility extends to those who are quarantined, furloughed, or have been laid off or had work hours reduced according to Mickey Elfenbein. Also, the list includes:
• People without childcare who are prevented from working
• Anybody experiencing financial complications as a direct result of the disease
• Business owners who have been forced into reducing operating hours (or closing completely)
Borrow from 401k
Up to a value of $100,000, it’s now possible to borrow 100% of your balance (previously limited to 50%). Thanks to the stimulus package, we can delay payments owed in 2020 and then repay over five years from 2021.
Roth Withdrawals
If you want to avoid all penalties and taxes, one option is to withdraw Roth contributions. In case you didn’t know, penalties and taxes only apply once you take investment earnings. For those who have switched to a Roth IRA, a penalty will only occur if you switch within the last five years.
Short-Term IRA Loan
If you have a temporary cash crisis, you may be saved by the 60-day rule. While waiting for a tax refund or other help, you can avoid a penalty and tax by taking money from your Roth IRA, regular IRA, or rollover IRA as long as you put it back within 60 days. Remember, IRA holders are restricted to doing this once per year.
IRA Withdrawal
Not everybody will qualify for a coronavirus hardship withdrawal, and this means that we’re seeing many people turn to an IRA withdrawal. Available for rollover and traditional IRAs, tax is applied, and penalties apply to those younger than 59-and-a-half years.
Hardship Withdrawal
Just because you don’t qualify for a coronavirus hardship withdrawal doesn’t mean the option is closed off completely. As long as you can prove a financial need, a standard hardship withdrawal may be available for your workplace retirement plan (such as a 401k). A financial need may include tuition, medical expenses, funeral expenses, home purchase, or foreclosure/eviction prevention. This withdrawal will be subject to a mandatory 20% withholding, tax, and a 10% early withdrawal penalty.
Since every one of these options comes with an abundance of fine print and caveats, we recommend talking with the HR department at your work (or a finance professional). If you plan on paying any debt such as credit cards or medical bills, we also advise conversing with a bankruptcy attorney. Since there’s a protection for retirement money from creditors, it doesn’t make sense to empty your retirement funds if you’ll end up in bankruptcy court regardless (there might be another solution).
