federal retirement
Federal retirement is a word that describes the retiring process and all the formalities involved for the federal employees of the country.
Phased Retirement – Bring On The Confetti
OPM Director Katherine Archuleta has given agencies permission to send their applications in for Phased Retirement as early as November 6, 2014. Employees who are eligible to participate in Phased Retirement must receive permission from their agencies. The employees who participate continue to work part-time in order to increase and preserve institutional knowledge.
The participating employees will receive a Phased Retirement partial annuity and continue accruing additional service credit toward their final annuity. The employees or phased annuitants will render 20 percent of their time towards mentoring employees to acquire critical information needed to do the work of the agency. Agencies will have the latitude and flexibility to fashion their mentoring programs to suit the needs of individual agencies.
It will be interesting to get a report of the number of applications received after November 6, 2014. The employees, however must have worked a minimum of 3 years before retirement and have accumulated enough time in order to qualify for retirement. Individuals who take voluntary early retirement do not qualify to participate in phased retirement. There must also be a written agreement between the agency and the employee outlining the duties and responsibilities to be achieved during phased retirement. The term of the agreement depends solely upon the parties involved as to how long the assignment will last.
Although OPM processes the applications for phased retirement, those persons desiring to participate must talk to their managers and supervisors to determine what opportunities might exist for them within their own agencies. Each agency will have the responsibility to decide which positions will actually be a part of phased retirement.
It took two years for OPM to issue a final ruling although Congress approved the law in 2012. This is a new program where agencies will have, it seems, a tremendous amount of latitude to define and set parameters for their programs. Although the final ruling has been issued agencies still have a lot of work on their hands to develop programs that will support the goals and objectives of OPM‘s Phased Retirement.
This is a wait and see game. How many employees will participate? What metrics will be used to determine and capture the effectiveness of the program? How many years will it take to collect and analyzing data sufficient to report real outcomes? What are the factors that will determine the continuity of the program? Are there circumstances or factors that will render the program ineffective and pull the plug on it? These questions might have already been asked during the public comment period, but might be worth revisiting for those still trying to get their arms around Phased Retirement.
P. S. Always Remember to Share What You Know.
OTHER PHASED RETIREMENT RELATED ARTICLES
Explanation of Phased Retirement
Phased Retirement – Closing the Knowledge Gap
Phased Retirement – Participation
Phased Retirement’s Debut
The Office of Personnel Management (OPM) issued the final regulations on Phased Retirement on August 7, 2014. Phased Retirement will allow full-time employees the opportunity to work part-time while drawing retirement benefits. Phased-retirement debuted as a mentoring tool to preserve the government’s institutional knowledge. As I stated previously, it is a start to something because institutional knowledge certainly needs to be preserved. Creating another method of harnessing that knowledge with an additional price tag may not be the answer. I have no idea what the cost of implementing Phase Retirement will be. As a matter of fact, perhaps the cost with will be nominal to none.
Phased Retirement is yet another example of not catching the red bird before it flies away. In other words, every agency within the Federal Service knows that employees come into the system and then eventually leave. Knowing that and the tremendous wealth of knowledge employees have who have labored in the Federal workforce for an average tenure of 30 years; why is it that the harnessing of such knowledge is not an ongoing part of operations, strategic planning, succession planning?
How is it that such an important aspect of -knowledge transition- would escape the wonderful minds inside of the Federal service? There was absolutely no need to engage in phased-retirement. For what? It seems par-for-the-course that information should be passed on simply as a normal course of business. Is that not part of the definition of supervision – mentoring, championing, directing, pairing more experienced workers with less experienced workers. It is no secret that seasons exist in the entire continuum of life. Somehow, that very notion slipped through the cracks. Although corporate conglomerates like Coke, Pepsi and KFC have trade secrets that are the underpinnings of their success; competitors don’t know the inside secrets, but the insiders know what it takes to keep the vats churning. It is a passing on, as a matter of course, the necessary information to keep the business going.
The dynamic should be no different for the continuity of the Federal Government than it is for Coke, Pepsi and KFC. Information must be passed on from the largest part of the entity to the smallest unit. There is no enterprise capable of continuing without a strategy to pass on necessary and critical information. To allow the red bird to fly away with all the information in his head, needed to build the most intricate and sophisticated nest possible, and then try to get him back after he has flown away is almost suicidal. The institutional knowledge the Federal Government is now trying to harness via Phased Retirement has always been there. The problem is that the entire Federal Government failed to develop a strategy that would preserve the necessary knowledge needed to keep the agencies of the Federal Government going in the same manner as the Chief Executive Officer of the United States, the Office of the President. The transition from President to President from the days of George Washington to Barack Obama has always been seamless. The same transition of knowledge is possible for the entire Federal Government through Phased Retirement.
P. S. Always Remember to Share What You Know.
OTHER PHASED RETIREMENT RELATED ARTICLES
Explanation of Phased Retirement
Phased Retirement – Closing the Knowledge Gap
Determining If A Trust Is Right For You
It seems to be the general concensus that a Last Will and Testament is an essential part of a good estate plan but Living Trusts are not as widely used nor understood. Although many may think that probate is a negative of the Last Will and Testament, a great many individuals remain comfortable with it. There are a number of ways to pass your wealth onto family members. But whatever method or tool you choose, taking action is pivotal. Don’t spend so much time thinking about what to do that you simply do nothing.
Planning a strategy to pass on your wealth to family members, charities or friends must be a highly personal and individual decision. It is good to consult with individuals skilled in a number of arenas concerning making plans to secure the integrity of your estate. In the final analysis, you must make the decision as to how your assets will be handled. This requires researching and educating yourself so that you can participate intelligently in the conversation and oftentimes requires working with a knowledgeable financial professional.
It is never a good idea to be in a position to listen and listen without the benefit of having some knowledge under your belt. You don’t have to be an expert, but you surely need to have enough information so you can determine which direction you want to take. Summarily, you don’t want anyone making critically important decisions for you. You want to make those decisions yourself.
More and more individuals are turning to Trusts in managing the transfer of their wealth to their loved-ones. As the grantor or the trustor of the trust, you may make changes, additions or transfer assets. You may even terminate the trust altogether. A trust can be changed and so can a will. Both instruments require being informed. By comparing Wills and Trusts side-by-side and of course having a decision with someone you trust will help you decide if a Trust is right for you.
P. S. Always Remember to Share What You Know.
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What is the Role of the Executor
When an executor is appointed to oversee someone’s estate there are many responsibilities that follow. No matter the size of your estate no one wants their property tied up in probate for long periods of time. Probate can be very time consuming and costly. Being an executor of another’s estate is not something that should be taken lightly. If you are chosen to be executor of someone’s estate, there is an incredible amount of trust, honesty and integrity expected in discharging the duties therein.
Executors have to make certain the deceased individual’s assets are properly managed. Sometimes that means finding the assets. Once the assets are found there may be real properties that have to be sold or some other decisions made. Depending on the size of the estate and the jurisdiction where you live, a long drawn-out probate may be avoided. The executor has to thoroughly read over the Will to determine who is to inherit what. If the deceased left no Will the executor or the administrator will have to determine who the rightful heirs are based on the laws of the state.
Legal Requirements
The Will, if there is one, has to be filed in probate court of the jurisdiction where the deceased lived. The law requires the filing of a Will. The executor has to take care of the affairs of the deceased including, but not limited to, cancelling major credits cards, ATM cards, and store credit cards. The executor must also notify the Social Security Administration of the death, the Office of Personnel Management if a federal annuitant, the Office of Medicare and/or Medicaid, the Post Office and banks where the deceased had accounts. If the deceased served in the military, then the Department of Veterans Affairs must also be notified.
A final tax return has to be filed covering the period up to the date of death of the deceased. If the deceased is still owed money or owes someone else money, an estate bank account should be set up to take care of those issues. Bills may need to be paid such as mortgage payments and utility bills. There may be monies owed the deceased which will also go into the estate bank account.
In the final analysis the executor must oversee the distribution of the deceased person’s properties, how, when and to whom the distribution will be made. Executors or administrators have an enormous responsibility in taking care of the provisions of a deceased person’s Last Will and Testament. Therefore, it is urgently important to appoint someone who is thorough, detailed and understands the importance of carrying out another’s wishes.
P. S. Always Remember to Share What You Know.
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estate
FEGLI …. If What You Thought To Be True. by Marty Duggan
Some Other Tips About Wills for Federal Employees
There are some things you might overlook about your Will particularly if you have a surviving spouse. If you decide to exclude your surviving spouse from your Will, he/she might still have a right to inherit a part of your property. Make certain you check to see what the laws are in your state.
If you own property jointly with someone else, upon your death, the property will automatically revert to the other joint holder; irrespective of what you might say in your Will.
Wills are not irrevocable; they may be changed, amended or modified by the testator (you) at any time deemed necessary. It should be noted that children under 18 must have a guardian named for their care until they reach the age of maturity. This is a real important aspect of your Will because you don’t want anyone else deciding where your children will go or what will happen to them in the event of your death. If the children are very young, name and alternate guardian in the event the primary guardian becomes ill, disabled or passes away. We heard about this kind of scenario in the death of Michael Jackson. He named his mother, Katherine, guardian of his children. Many felt she was too old and not mentally capable of caring for the children long term. Therefore, it is just good business management to name an alternate guardian or two.
The Need for a Trust
It might be a good rule of thumb to create a trust if you have minor children that will inherit your estate. The law prohibits minors from inheriting directly from you. A trustee would be appointed to handle the affairs of the minor children until they reached the age of maturity. You can specify the age at which you want the child/children to receive their inheritance.
When choosing an executor it is important to consider a number of things in order to make sure your wishes will be carried out as you desire. Make sure the person you choose is willing and able to carry out your wishes and will handle your estate properly. Depending on the size of your estate, you might want to choose someone who has the financial and legal acumen to properly handle your estate and in accordance with the rules, laws and regulations of the state where you lived. Don’t be hesitant about pairing someone else with an attorney like a family member or a close and trusted friend. The estate belongs to you and you can design it in a way that brings you the greatest amount of comfort and satisfaction.
As a Federal employee, the benefits you will taken into retirement or otherwise will not be bound by your Will. The Federal Government structured itself in such cases to distribute your assets, if no beneficiary is named, by an established Order of Precedence. The government did not think it prudent for your family or the government to have your assets, needed by your family, tied up in probate for lengthy periods of time.
P. S. Always Remember to Share What You Know.
Related Articles
Determining If A Trust Is Right For You
What May Invalidate a Will?
The Last Will and Testament
How To Choose a Financial Professional to Handle Your Affairs
There is no fool-proof way of finding the right professional to help you handle your financial affairs. Retirement planning which includes estate planning can get very complicated. Most of us do our own retirement planning, but if you prefer to seek the advice and counsel of a financial professional consider the following tips:
Financial Advisors and Federal Employees
Seek a financial planner who has demonstrated skills in their field of expertise. Look for advisors who have been published or interviewed on topics that relate to your concerns.
If you find a financial planner via a company find out how they are compensated.
Use the Financial Planning Association’s online interview tool to assist you in asking the right questions.
If you are going to use an attorney for your estate planning needs choose one that has at least 10 years of experience in estate planning. This is a very complex field with different probate and wealth laws in every state. The attorney you choose must be keenly aware of these laws and how they apply to your personal circumstances.
Make sure that the attorney you choose is licensed to practice law in your state of legal residence.
Ask for references, preferably current and past clients, before you begin any legal work.
Check organizations and licensing boards for background information. Also check with continuing education associations focused on estate attorneys. These associations generally draw well qualified attorneys to their ranks.
Evaluate the listening skills and communication style of any advisor or attorney you are considering. If the professional is short and impatient and does all the talking without giving you the opportunity to chat and ask questions, no matter how talented, it is not a good idea to choose that person. Keep on searching.
Always do your homework when you are looking to hire someone to take care of what could be the most important business you will ever have.
P. S. Always Remember to Share What You Know.
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What May Invalidate a Will?
Invalidating a Will
Wills may become contentious between family members and others in court. Sometimes relatives exist that you might not know about and all kinds of things can happen to delay finalizing the terms of a Will. There may be a number of things that can potentially invalidate a Will, but for our purposes we will outline the three most common things that can invalidate The Last Will and Testament:
- The writing of the Will was done under force and undue influence from another party.
- The execution of the Last Will and Testament was handled improperly, making it improper.
- The deceased was not mentally competent and able to comprehend what was happening when the Will was executed.
There are many programs that say Wills can be done on your own and that might be true. After all, the Will is outlining what you have and when, how and to whom you want your holdings (property) distributed. That might sound simple and in many cases it is. However, as estates get larger, they often get more complicated. Sometimes it might be the better part of common sense to consult an attorney to help you take care of your Last Will and Testament. When seeking an attorney, it is not just any attorney but one skilled and trained in Estate Planning in your state.
Estate Planning laws can be fairly complicated and they are not one size fits all. The laws differ from state to state and you want to have an attorney who is up on the law and can help you make the best decision to handle what you have worked hard to accumulate. A little bit of the right advice can go a very long way in taking the headache out of planning for the business of the end of our lives.
P. S. Always Remember to Share What You Know.
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The Last Will and Testament
We attempt to answer as many inquiries as possible that drop into our inbox. Recently we got the question – What is the difference between a living trust and a will? We are going to discuss each one in separate posts. Let’s take a shot at it.
The Last Will and Testament
A Will, commonly called the Last Will and Testament, is a means by which an individual names another person as the manager of his/her estate and provide for the distribution of property and/or assets upon his/her death. The person who is named to manage the estate is called the ‘testator.’ The Last Will and Testament outlines who will inherit your property, how they will inherit it and when. The Will also states who will be in charge of making sure your desires are carried out. Wills are also public and must go through probate. Wills are an essential part of your Estate Planning process. Think of a Will as a letter of instruction from you, being very specific about how you want your final affairs handled and the people you wish to benefit from your estate. Wills should be updated periodically because things in life change which invariably requires our attention to make appropriate adjustments.
Estate Planning for Federal Employees
The Will is the nucleus of the the estate plan. From the Will, everything else emanates. It very simply spells out your wishes, telling how you want your assets and resources distributed and how the people who depend on you will be taken care of. Your Will is an instruction to a court of law. Wills must go through probate so that its validity can be legally established. Wills can be contested. Laws surrounding Wills vary from state to state. When the Will is registered with the court, it becomes a matter of public record. If a court finds a Will to be invalid, it will be treated as if you died without a will (intestate). Depending on the state you live in, having no Will, it will be decided in accordance with the law how your property and assets will be distributed. If there are no relatives, your property will become the property of the state.
Wills should identify you and give a brief description of the property and assets you want to distribute. It should also contain a full and complete description of the property you wish to distribute and your right to do so; followed by a very clear and detailed itemization of who you want your property and assets to go to. When an attorney represents your Will before the court it is called probate. Sometimes wills may take as long as 9 months to 2 years to go through probate. The process can sometimes be fairly costly ranging anywhere from 2 to 5% of the total value of the estate.
Also it is worth mentioning that Wills are only executed when you pass away. So if you become ill during your life and cannot speak for yourself or handle your affairs, someone needs to be available to do that for you. That is when it might be wise to name a trustee and give someone Power of Attorney specifically where your health and finances are concerned. Planning helps us to have a say in how we want things handled in our lives. We will discuss a few more items about Wills before we move on to the topic – Living Trust.
It is so much easier by the inch than the mile.
P. S. Always Remember to Share What You Know.
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Phased Retirement Implementation
The Office of Personnel Management (OPM) is pushing hard to implement the new Phased Retirement program. Information has not yet been released concerning the number of employees who have expressed an interest in participating in the Phased Retirement program. OPM is trying desperately to bring younger workers to the service. By retaining some of the older more experienced workers, training of the new employees and getting them up to speed might help with retention through Phased Retirement is both rational and a good potential solution.
It will be very interesting to find out if the phased retirement program offers enough of an incentive to make older workers stay in the Federal service a while longer. For those of us who are Federal watchers the buzz has not been much of a buzz. The Federal workforce does not seem to be too excited about the impending new venture to keep the Federal Government relevant and attractive to a new generation of workers.
The Office of Personnel Management perhaps has not kept up with the changes in the world of work. I can recall when I got my first real job, HR offices were called personnel offices tasked with pushing papers, processing papers without much interaction with people. You went to personnel and filled out your paper work and some woman would ask you about your eye color and your hair color. If she did agree with your eye color she would say something like – who told you your eyes were such and such a color. As personnel evolved, the lady in charge of eye and hair color faded into the woodwork.
After personnel took a back seat, then human resources surfaced. Human resources housed specialists (Classification and Compensation Specialists, Employee Relations Specialists, etc). Then the field found that specialists needed to broaden their base back to be being generalists. The new title became Personnel Management Specialists meaning at least two fields of human resources should be apparent for each management specialist. Human Resources was slowly becoming more involved with people and not just paper behind a glass partition.
After a number of years, personnel evolved into Human Capital Management certainly suggesting a greater involvement with people. Human capital was to hold equal status to financial capital. Given titles and responsibilities have changed, it might be time for the Office of Personnel Management to put on an entirely new face if they expect to attract the millenniums. Perhaps OPM could start by changing its name to the Office of Human Capital Management (OHCM). We stopped using the word Personnel about 10 stop lights back.
I don’t know if phased retirement will do a whole lot for leveraging OPM’s goal of protecting institutional knowledge and passing it on to a new generation. I do know that young people are driven and called to automation almost to the extreme. If we want their knowledge, skills and commitment to public service then leadership had better learn how to drive an Aston Martin wearing skinny jeans and a Mickey Mouse sweat shirt.
P.S. Always Remember to Share What You Know,
OTHER PHASED RETIREMENT RELATED ARTICLES
Explanation of Phased Retirement
What Happened – Young People Don’t Want The Feds
What Happened is a question put to the former telecom giant Nortel. Nortel went from being the ninth-largest company in 2000 to filing for bankruptcy in 2009. The question was more like – What The Hell Happened? This well-respected telecom giant agreed to participate in a study conducted by the University of Ottawa. As a matter of fact, they were the case study.
Nortel agreed to have nearly half of its top executives interviewed, as well as customers, partners and competitors in an attempt to answer the question. Professors conducted an extensive case study of Nortel. Some very interesting findings surfaced quite to the surprise of Nortel executives. The researchers found that Nortel had bred a culture of arrogance due to prior successes that proved to be lethal.
The researchers further found that arrogance had also led to lax financial discipline among the executives escalating to a kind of excessive pride that put customers on the back burner. The executives were only interested in themselves and not what customers wanted. The very component, good customer care, that had elevated Nortel to the top of the telecom game, was lost in the rise to the top and therefore sent the telecom giant plummeting into an abyss.
All organizations must understand the needs of their customers if they want continued success. It might serve the Federal Government well to begin looking at the behavior of top executives and their impact of recruitment and retention. I know the top executives at Nortel were amazed to hear that it was not losing their competitive edge and it was not that they no longer understood the technical market and advancements in technology. It was and is pure and simple that they got too big for their breeches.
The Federal Government would be wise to invest in an Innovation Summit targeting recent college and university graduates, young people under age 50 not employed by the Federal Service to explore why this population is running away from being a part of the public sector. I can assure you that it is not salary. The unemployment rate both nationally and internationally is highest among young adults under the age of 50. Foreign graduates are leaving their home countries looking for jobs in the United States. For many, once in the United States, they simply join the ranks of their peers looking for jobs that are not there. If the Federal Government has a number of vacancies, there are applicants qualified to fill them. But the mystery remains – What happened that young people don’t want to be employed by the Federal Government.
P. S. Always Remember to Share What You Know.
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Can You Participate In The TSP After Retirement?
Your Thrift Savings Plan (TSP) is funded via payroll deductions. Therefore, once you are no longer an employee your participation in the TSP stops as far as being able to make contributions. However, you don’t have to take your money out of the TSP, you just cannot put money into it.
TSP After Leaving Federal Employment – TSP Withdrawals
If you leave service and decide to make a TSP withdrawal, you may do so in two ways. You may make a partial TSP withdrawal or a full-withdrawal. You can make a partial withdrawal of $1,000 or more. You can make a request for a partial withdrawal online or use Form TSP-77. If you make a full withdrawal you can request a single payment withdrawal of your entire TSP balance. You may also request a series of monthly payments. In this way you can choose a specific dollar amount to receive each month or you can receive a monthly amount based on your age and your account balance. If you are requesting a specific dollar amounts, the monthly payment must be a minimum of $25.00.
TSP-77 Form
TSP Annuity
You may also elect a TSP life annuity. The TSP life annuity pays you a monthly benefit for life. The TSP will purchase an annuity for you from their provider (Currently Metropolitan Life Insurance Company – MetLife). Make sure that you read up on the pros and cons of purchasing a TSP annuity directly through the TSP (We at PSRetirement.com suggest to strongly consider NOT taking this option). You may also mix up your withdrawals. You may use the methods outlined in the TSP Full Withdrawal option in a number of combinations – single payment, TSP monthly payments or the life annuity. You can combine two options or all three, which ever fits into the plans you have made for you and your family and always make sure to speak with a trust Financial Professional before making any decisions.
Read over your TSP account(s) and make sure you understand how your TSP works in retirement and how to maximize your federal retirement benefits. If you have put a retirement action plan in place, then you want to gain as much information as possible to help you live in retirement on your own terms. FERS employees have to be especially cautious, yet assertive, by fully funding their TSP whenever possible because the TSP is the larget monetary component of the FERS retirement system.
How you manage your financial affairs is an individual matter. However, just like any good work, it takes time to examine and analyze to choose the best options that fit your situation. No two situations are alike, so don’t take a position because it sounds good. Use your planning tools and take a position because it works for you.
P. S. Always Remember to Share What You Know.
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The Military Wants to Buy You Out
The Military Wants to Buy You Out
The Department of Defense (DOD) has issued a mandate ordering each branch of the military to reduce costs and staffing levels across the board by twenty percent by 2019. The Air Force is taking the lead in meeting that requirement by moving forward to put an even greater requirement on itself. The Air Force has set a goal to reduce its workforce by the same percentage within the first year. The Air Force intends to achieve this goal by offering early retirement and buyouts to civilian personnel.
The Air Force estimates that it will realize savings of over $1 billion over the next five years. It is suggested that management both domestically and abroad will be targeted to reach the numbers. The Air Force believes that reducing civilian personnel will give them much needed resources to prepare and train military personnel and prepare those personnel for war missions if the need arises.
Some qualified service personnel have been offered voluntary retirement incentive programs. The Department of Defense, like other agencies offering VERA and VSIP, will consider a reduction-in-force if VERA and VSIP do not reach the intended targets. The Air Force is also exploring ways of streamlining resources.
It appears that part of America’s workforce is looking at ways to help stabilize the budget. Collaboration just might bring America’s budget in balance.
P. S. Always Remember to Share What You Know.
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Impacts of Voluntary Early Retirement (VERA)
Impacts of Voluntary Early Retirement (VERA)
Retirement isn’t always voluntary. Microsoft announced recently that it was laying off 18,000 workers. When the Information Technology Industry (IT) begins to lay-off workers, then the country has to get pretty scared. IT is the industry to be in. We know that Silicon Valley at one time was almost overkill, but colleges and universities are still getting an extraordinarily large amount of students majoring in Computer and Information Technology. There seems to be a lot of early-outs and lay-offs recently. That might suggest the country is in great need of creating jobs. If we are laying off people, I gather all of those people are not retirement age, then where will they go for work? We know that layoffs mean increasing the unemployment rolls in many instances. There is not in reality a job waiting for every person who has been laid off.
Does Industry follow Government or does Government follow Industry? It matters not, but more that the layoffs are layoffs and the economy continues to hurt. When the economy hurts, families hurt There are a number of agencies offering voluntary early retirement (VERA). The Transportation Security Administration (TSA), the Environmental Protection Agency (EPA), and the Social Security Administration SSA) to name a few.
The Federal Government is working fervently to cut the size of government in order to minimize cost and streamline the budget. TSA employees qualify for VERA if they have completed at least 25 years of service at any age and 20 years of service at age 50. Employees meeting these qualifications are under a special category of retirement. The TSA employees are classified as Law Enforcement Officers (LEOs). However, air marshals and specialists working in intelligence do not qualify for VERA at TSA.
Employees at the National Geological Survey are also being offered voluntary early retirement. There are many other federal agencies that are either planning or have already begun sending out VERA notices. The Federal Government needs agencies to think seriously about trimming staff, hopefully avoiding a reduction-in-force (RIF) that is always a morale killer in any agency.
The Office of Personnel Management (OPM) is quickly approving agencies’ requests to offer VERA in order to help them create efficiency in their organizations. Employees participating in VERA must be very careful to analyze their retirement action plans. They must evaluate the impact VERA might have on their plans to live well in retirement. VERA offerings might help agencies create efficiency and balance the budget, but those same results might not be achieved for the federal retiree.
P. S. Always Remember to Share What You Know.
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Is Living Longer a Good Thing
I suppose the question is answered best by who is answering it. I have one friend who is 85 and counting and that gentleman who mentored me many years ago in the Federal service is just as mentally alert as he was when I first met him. By the time I met Mr. Brown he had already retired twice and was heading towards his third federal retirement. He was quite a savvy fellow who knew the mysteries of the stock market. I often sat as a very attentive student during lunch breaks to learn everything I could from him. He not only introduced me to the stock market and how money and resources really worked, he introduced me to something called -humanity in the workplace. As he gave me the benefit of his wisdom, I knew our meeting was meant to be because he was further underscoring the lessons that had been passed on to me from my mother.
Mr. Brown and I now make appointments to have our phone visits. They are long, engaging, informative, spiritual and funny. He lost his wife some 17 years ago and I hope my friendship helped him to weather that most difficult storm. The Browns were married for more than 4 decades. Mr. Brown visited his wife’s resting place at Arlington National Cemetery everyday for one year and then the visits never stopped but became less frequent as he knew life had to continue. The Browns had one wonderful daughter. I never stop thanking her for sharing her Dad with me.
Mr. Brown comes from a family of long livers on his maternal side. His mother was 98 when she passed away. His father died young of TB not reaching the age of 40. Mr. Brown has been my personal teacher through the Korean War and World War II. I am a history buff and absolutely cherish hearing history from a man who lived it. Mr. Brown is up on all the local and world news. He has no signs of his mental acumen failing him. Yet, I continue to read more and more about younger people who are being stricken by the dreaded Alzheimer’s disease.
Alzheimer’s disease is a form of Dementia and generally strikes persons age 65 and older. As the nation gets older and older and is living some 30 years beyond retirement, more and more individuals are facing the disease. Quite recently, we heard about the young restaurateur and former model, Bea Smith, at age 63 now with advanced Alzheimer’s. Rushern Baker’s, (County Executive for Prince George’s County Maryland) wife has been diagnosed with Alzheimer’s. Mrs. Baker is only 53 years old.
As federal retirees look forward to living longer in retirement, they also face the illnesses that often come with growing older. Staying active, eating right, being engaged with a zest for learning new things is often regarded as steps to delay the onset of Alzheimer’s or even avoid it. Research is being done to study Alzheimer’s everyday. Genetics may have a lot to do with what happens in our lives, but Dr. Oz believes that lifestyle outweighs genetics. By the way, Mr. Brown still walks 3-4 miles a day on his walker and he still drives to his appointments and outings. His back and legs are not as strong as they once were, when I was forced to break into a trot to keep pace with this disciplined Air Force gentleman.
May we all have the staying power of Mr. Brown.
P. S. Always Remember to Share What You Know
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Phased Retirement
On one hand OPM Director Archuleta talks about pumping new blood into the Federal Government and then there is the potential roll-out of phased retirement. Phased retirement will keep older workers in the workforce to train younger workers to take over their positions. A strategy as I previously stated that should be an ongoing part of the Government’s strategic operations. It is not forward preparation to allow one or two employees to own all of the information and know-how to perform a task exclusively. That kind of information and how-to strategy must be shared across the division or section.
Team building really does mean that information is shared, analyzed, adjusted and supported by all the stakeholders. When one individual leaves the team, the leaving should have absolutely nothing to do with continuity of services. Life does not work that way and neither does work, but is intended to keep going. The idea of the golden boy or girl is a recipe for failure. There is nothing wrong with celebrating the acumen of individuals at whatever level they happen to be at. But to simply have only one person you can call on to perform a task is ridiculous. You may call on one person to teach so that others can learn and know how to perform the tasks, but it must never be only one person who knows how to do anything. Mercy on us if that person suddenly becomes unavailable and we can only respond by saying – We cannot do it because ABC is no longer available to us.
I see some merit in phased-retirement in terms of keeping people who desire to work working. The part about needing to stay or come back to Federal service to train others to do your job is completely beyond my realm of comprehension. That part of the job should have already been fulfilled. I am now going to pay you to do something I should have had you do as part of the normal course of business. The primary duty and responsibility of a supervisor is to train. We see that duty being abrogated virtually over the entire Government because the culture has been and remains, I am not going to teach anybody anything.
Now I am not going to simply pass that sentiment off as irrational. The workforce did use a strategy for many years that called for more seasoned personnel to train new hired personnel and after the training was done, the new hire was made the supervisor over the more experienced worker. That should not have happened and is perhaps why so many workers are reluctant to pass on information. Even though things might not have been handled correctly in prior years, training and passing on information really is what needs to happen to promote the continuity of work and elevate excellence.
While phased-retirement may not be a costly venture for the government and we won’t know that until the program starts and sufficient data is collected to draw a conclusion. What we do know is that if the appropriate protocol of sharing information and truly creating effective teams were used, the cost would have only been the salaries already there and the benefit would have far outweighed the cost by leaps and bounds. It is never too late to start something that will benefit the nation ad infinitum.
P. S. Always Remember to Share What You Know.
OTHER PHASED RETIREMENT RELATED ARTICLES
Explanation of Phased Retirement
Phased Retirement – Closing the Knowledge Gap
Phased Retirement – Participation
Not a Question of Demand, But a Question of Why
Director of the Office of Personnel Management (OPM), Katherine Archuleta stated that increasing the population of younger workers in the Federal sector is a challenge with part of the problem being demand. Consultant groups support Director Archuleta’s assertion by stating that students’ interest in working for the federal government has declined over the last four years. That being said removes us from the issue of supply and demand. The demand for young people particularly in the digital field is high. I have not read any literature to suggest the contrary for supply. Students continue to major in information technology and all things digital. Therefore, the demand for such jobs is there and the supply is there. The jobs are not being created which is quite different from the demand for jobs.
Therefore, we come back to the question of why jobs are not being created when we have such a need to stay current and competitive on the world stage with digital technology. Jobs are there but they are housed in other countries. If you contact a Call Center for tech support, the 1-800 number may be anywhere but within the continental United States. Students are not adverse to working in the Federal government. Young students need jobs when they come out of school. They cannot find them because they are on the other side of the moon and not available to them. The few positions that are available in America are somehow given to young people from other countries, many who do not intend to reside in America.
The United States should be the leader in promoting diversity across all venues. That diversity should not exclude American-born and raised young adults and graduates. There is something devastatingly wrong and it has to do with business enterprises refusing to share the profits with the workforce. It is not hard to see what is happening in America and it is to the detriment of the country’s forward movement as a model for other nations. There are a number of business concerns where there is no person in the day-to-day establishment who can speak translatable English. You cannot communicate with the persons you are doing business with. That is abuse on both ends.
The customer is being abused by the business because they cannot communicate with the persons representing the business. It is abuse of the person representing the business because they cannot adequately communicate with their customers. The entire discourse becomes frustrating and counterproductive. It is solely my opinion that these workers are being employed because they are being paid far less than what they should be paid. If they cannot understand and communicate the official language of the United States (English) then they cannot understand the pay protocol in the country. That is just common sense. Our country should not be in a position where we seemingly support taking advantage of a person’s inability to communicate sufficiently in the language of a nation.
When I travel to other countries, I have never expected for that country to change their language to accommodate me. I had to learn to communicate in the language of my host country. Luckily, I was always able to find someone who spoke fluent English. I also made certain I knew enough of the language to distinguish what was being said through a translator. The bottom line is that no person who cannot speak the official language of a nation should be put in the position of serving customers they cannot adequately serve. The basis of serving any customer is to be able to communicate. Unfortunately, although our nation looks like the United Nations (UN) and we are proud of that part of our embracing diversity, we do not on a day-to-day basis have the technology of the UN to translate language to the benefit of the whole assembly.
Once again, the question to Director Archuleta is not one of Demand but one of Why.
P. S. Always Remember to Share What You Know.
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Federal Retirees Are Leaving the U.S. for Central America
The American economy is not improving for many citizens, including federal retirees. Because affordability is a key phenomenon for many retirees, they choose different paths to living out their retirement years. Many retirees are looking towards Central America for homes and lifestyles they can afford. They are finding living expenses are just too high to maintain the kind of lifestyle they desire to live in their retirement years.
Central American countries, like Ecuador still place them within reach of their families back in America within a day’s flight. Retirees who have moved to Ecuador report paying on average $400 for a 3 bedroom apartment that might cost them $900 or more per month in some parts of the United States. They also report spending much less for health care expenses and can spend the equivalent of $2.00 per person on a high-end lunch. These attractive economic features have many retirees looking to other shores to enjoy their fixed-income status in retirement.
Retirees report missing their friends and families when living abroad, but are comforted knowing an airplane reservation will help them make that connection relatively easy. With retirees leaving the United States, will that be yet another drain on the American economy? Dollars that could be spent in the USA are being spent other places not benefiting the U.S. economy at all. It is time that the USA started looking into ways to not only retain workers in the workforce but retain its citizens in the country after retirement.
The statement alone that retirees are leaving the U.S. for other shores that offer a more affordable lifestyle on a fixed income is more than food for thought. The US should be strategizing and finding solution-driven ways to create more home affordability for American citizens. Why should an American citizen have to leave the country of his/her birth to find affordability? If leaving the country is simply a matter of choice, then that it one thing. However, to leave because you cannot afford to live in your own country is an eye-opener and a call to action that something needs to be done without delay.
After spending 30 to 40 years on a job, the expectation should be that one can choose to live out the last years in comfort and relative security. It is terribly disturbing that a move is made because of the inability to afford the basic needs of life – a place to live, food to eat, transportation, medical care and a little something left over to do whatever you will. If that cannot be accomplished, then why spend the majority of your life working only to find out that after retirement you must hitch up your wagon and stake out a new place because your retirement money can’t pay for you stay within U.S.. borders.
We’ve got a lot of work to do to make America work for its people. As you age and have paid your dues by working long and hard, you should not have to bare the burden of looking for a place you can afford to live in. Places in the States designed for senior living are basically for high-income individuals. Let’s not forget about low-medium-high. There are people, retirees in every category. Let’s work towards accommodating them.
P. S. Always Remember to Share What You Know.
Recommended Articles
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Understanding Federal Employees’ Retirement System (FERS) Better
The retirement benefits for those who entered covered service with the United States Government on or after January 1st, 1984, are referred to as FERS (Federal Employees Retirement System). The Federal Employees’ Retirement System FERS is a complex, three-tiered retirement plan that has three main components:
– FERS Basic Benefit Plan
– Social Security Benefits
– Thrift Savings Plan (TSP)
The FERS Basic Benefit and Social Security components require a Federal employee to make their contribution each pay period. The agency employer withholds the cost of the Basic Benefit and Social Security from the employee’s pay as payroll deductions. After retirement, the employee receives annuity payments and Social Security payments each month for the rest of their life.
The TSP component of FERS is an account set up automatically by the agency. Each pay period, the agency adds an amount equal to 1% of the Federal employee’s basic salary into the TSP account. The employee can make their own contributions to the TSP account and the agency will make a matching contribution, both of which are tax-deferred.
General FERS Requirements
Eligibility for FERS is determined by the employee’s age and number of years of creditable service. For some employees, they should reach the Minimum Retirement Age (MRA) to be eligible to receive retirement benefits.
The following criteria can be used to understand MRA. The Federal Employees Retirement System (FERS) Basic Benefit Plan has 4 categories:
· Immediate – An immediate FERS retirement benefit starts within 30 days from the date the employee stops working. If he retires at the MRA with a minimum of 10, but less than 30 years of service, their benefits will be reduced by 5% a year for each year they are under 62, unless they have 20 years of service and their benefit starts they reach age 60 or later.
· Early – The early FERS retirement benefit is accessible in some involuntary separation cases or in cases of voluntary separations due to a major reorganization or reduction in workforce.
· Deferred – To be eligible for deferred plan, an employee must have completed at least 5 years of creditable civilian service. If he retires at the MRA with a minimum of 10, but less than 30 years of service, their benefits will be reduced by 5% a year for each year they are under 62, unless they have 20 years of service and their benefit starts once they reach age 60 or later.
· Disability: To become eligible, the employee must have become disabled during employment in a position subject to FERS, due to a disease or injury, for useful and efficient service in their current position. The disability must be expected to last at least one year. The agency must confirm that it is unable to accommodate the employee’s disabling medical condition in his present position and that it has considered him for any vacant position in the same agency at the same grade/pay level, within the same commuting area, for which he is qualified for reassignment.
If you are looking for pertinent information about your Federal and Postal Retirement benefits, PSRetirement will answer all your retirement-related questions!
Retirement Planning: Prepare Financially, Physically, Emotionally
Federal Retirement brings a major change in the life of not only the retiree, but also their family. It is a shift from a structured way of life to an unstructured one, which can be unnerving and overwhelming, especially if you are not prepared.
This article will help people prepare themselves financially, physically and emotionally for the next phase of life:
Being Prepared Financially
– Start Saving – Saving, whether for retirement or any other goal, is a rewarding habit. If you are already doing it, great; if not, you should get started. Start saving from a small amount, and gradually develop a habit of keeping aside a specific amount of money every month. Retirement savings programs like the Thrifts Savings Plan can help you plan for the future.
o Federal Employees receive a match to every dollar they invest into their TSP Account – up to the first 5% of their income. It’s like giving yourself a raise by simply putting the money in the account.
– Know Your Retirement Needs – if you wish to maintain the same standard of living after retirement that you currently have you should absolutely perform a Retirement Cost Analysis and a Retirement Benefit Analysis. There are rules of thumb when it comes to retirement planning but as a federal employee your benefits can be very complex. It is always best to operate with as much knowledge as possible. PSRetirement.com offers readers a free retirement Benefit Analysis.
– Know What You Are Eligible For Through Your Employer’s Pension Plan – Through your High-3 calculations and depending on whether you are covered by FERS or CSRS your Federal Annuity can be significantly different than your friends or colleagues. Don’t rely upon their figures to determine what you think you might be eligible for. Work with your HR Department and you may even want to talk with a knowledgeable financial planner who can help you determine how your Annuity should impact what other investments you may need to make before retirement to give you the income you need.
– Know Where Your Money Is Invested – The type of investments you make play a significant role in how much you will have saved at retirement. Keep a track of where your savings and TSP money is being invested. Diversifying investments can minimize risk and depending on your age certain investments may be more appropriate than others.
– Learn About Social Security Benefits – If you are a CSRS employee you may not be eligible to receive Social Security. For FERS employees there are also impacts to your Social Security payments depending on when you claim it and how much you earn in the way of your Federal Annuity. Because of the complexity of the different systems and how they impact one another – it is incredibly important to talk with an expert about what your benefits will be.
Being Prepared Physically
– Stop Smoking – Smoking causes life-degrading and life-shortening diseases.
– Control Blood Pressure – after quitting smoking, the next most important thing that Americans should do is to control their blood pressure by eating healthy and having an active lifestyle.
– Eat Healthy – The expression ‘you are what you eat’ proves to be right when people start having health problems after retirement because of their preceding unhealthy lifestyle. They should eat healthy both before and after retirement to avoid common health issues like blood pressure, hypertension, ulcers and others.
– Stay Active – Many people have an active workout regime while they are employed, but once they retire, they give it up. Having an active lifestyle after retirement is equally important to stay fit.
– Control Blood Pressure – High cholesterol means blocked blood vessels. The best way to lower cholesterol is to keep a check on your weight and exercise regularly.
– Get a Regular Checkup – Even if you feel fit, getting an annual medical checkup is important as some health problems like diabetes, cholesterol and others might not have any obvious symptoms until they get worse.
Being Prepared Emotionally
– Set Lifestyle Goals – Make a list of things that you would like to do or places you would want to visit after retirement, for which you were too busy while employed. You can also plan your financial savings accordingly. Occupying yourself with interesting activities will offset feelings of uselessness after retirement.
– Build a Network – It is important to have a good support system and social circle after retirement to mingle with people who are going through the same transition as you are.
– Consider Your Spouse’s Feelings – Retirement is as much of a life-changing event for you as it is for your spouse, especially if they are still employed. Discuss their expectations, your feelings and sharing of responsibilities to make the transition easy for both of you.
Whether you are nearing the end of your service or are thinking to plan ahead, PSRetirement is your complete source of for all retirement-related solutions!
Federal Retirement: Have The Talk
Federal Retirement: Have the Talk
Federal Retirement: We have discussed at great lengths the reality of death and what must happen in order to execute the final business of our lives. I shared these ideas and stories to remind us and to give us the impetus to have the talk. It is a difficult and painful talk to have, but it must happen in order to handle the business of death. We mentioned in the newsletter that death is not surprised whenever it prevails upon us. For us to be surprised is human, to be unprepared is also human. But to be unprepared carries an emotional as well as a financial cost.
You say how does one really get prepared for death. You don’t, because it is something none of us want. It means an end and human beings prefer beginnings as opposed to endings. We can prepare for the business end of death and that starts with having the talk, a talk that should take a high priority in every household. If you cannot initiate the talk, get someone else to help you and your family get started. It doesn’t have to be a professional, maybe a good friend, a member of your church or a support group.
That’s an idea. I don’t think I have ever heard of a pre-death support group, but it is certainly something that is needed. What is the talk? The talk involves one basic question and it can be addressed in a myriad of ways. For example, a conversation would go something like this:
Honey, have you thought about what will happen when we pass away? We need to make sure that we know what we have and where our important papers are. What good would a safe deposit box be if nobody knew we had it or where the key was or what bank housed it for that matter?
Now as the conversation progresses it is only natural that you begin thinking about how safe is it to divulge all of this information. The talk must happen with people you know and trust and it is not a wise idea to only tell one person.
A trusted attorney with a good record might be a safe alternative. Although you might seek the services of an attorney you must still due your due diligence. Bernie Madoff had a good quality about him, I bet you didn’t know that. He taught us to be more involved in our own business and not leave it entirely to someone else. I have never known anything bad where something good didn’t come out of it. You just have to look for it.
Whatever your choice is and the format you choose to inform your family members is yours and yours alone; but you absolutely need to have the talk. It is too hard and unnecessarily so when the hurt of your passing is escalated because your family members do not know what you have, where it is and who it is left to. Have the talk so that your life can be celebrated in a way you and your family deserve.
P. S. Always Remember to Share What You Know.
