FERS

FERS or the Federal Employee Retirement System is the retirement system applicable to the employees that fall under the US civil service. Its inception can be dated back to January 1, 1987 when it replaced the CSRS.

OPM advises paying attention to the Family vs. Self-Plus One Rates in FEHB

February 9, 2023 /by marvin dutton

OPM has urged agencies to inform their staff that some rates for self-plus-one coverage in the FEHB program will again be more expensive in 2023 than those for family coverage.

According to a statement from OPM to agency benefits offices, this will be the case in three national plansÃ¢â‚¬â€the NALC Health Benefit Plan, Foreign Service Benefit Plan, Rural Carrier Benefit PlanÃ¢â‚¬â€as well as about 80 regional plans out of the 271 that will take part in the 2023 plan year.

While there is no cap on the number of people who may be covered under family coverage, again provided they are eligible, under self plus one, an enrollee only covers one additional person (who must be eligible under family coverage rules, which for the most part means spouses and children under the age of 26).

With only self-only or self and family options available at the time, self plus one was added to the program ten years ago on the theory that by being required to enroll in family coverage, people with only one eligible family member to coverÃ¢â‚¬â€a married couple without any eligible children or single parents with one eligible childÃ¢â‚¬â€were subsidizing the program enrollees with over one, and that premiums for self plus one would be lower.

This has mainly been demonstrated to be the case. Still, there has been an anomaly in some plans every year since self plus one has been shown to attract a disproportionately high enrollment of older couples without children who are likely to use more medical care than the program’s typical consumer. Each of the three coverage alternatives is expected to be self-funding within a plan under the FEHB program’s framework, with no cross-subsidies.

“Enrollees should carefully review the rates of their existing plan for 2023 and any alternative plan options they are contemplating. Open Season, which runs from November 14 through December 12, is the only time registrants may make changes,â€ according to OPM’s letter.

Why the increase in Self Plus One rates?

According to John O’Brien, director of health care and insurance at OPM, “There is a limit on how much the government will pay towards the cost of a Self Only, Self Plus One, or Self and Family enrollment.â€

The government pays either the maximum contribution or 75% of the total premium, whichever is smaller, and the enrollees cover the balance. This computation may, in some circumstances, result in a higher enrollee share for a Self-Plus One enrollment than a Self and Family enrollment, such as plans with premium costs that are higher than the program average.

As previously mentioned, one reason for the increase is that healthcare for elderly folks is costly. Older couples with older kids often choose Self-Plus One plan. And they require significantly more medical attention than younger people. Thus insurance is more expensive for them. Family coverage may be priced reasonably since children and younger adults use fewer services and are less costly to cover than granny and grandpa.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

Top 3 Social Security Strategies to Secure Your Retirement

February 9, 2023 /by aaron steele

Do you plan to rely on Social Security when you retire? These tactics can help.

For most retirees, Social Security payments are designed to provide a full or partial replacement of their pre-retirement income (often 40%). Taking a 60% pay cut would substantially scale down your standard of living level. Even so, it may be challenging to fund a comfortable retirement on Social Security alone.

Nevertheless, you may take steps to increase the value of your retirement income in your later years. If you plan on using Social Security as your primary or only source of income when you retire, consider the following three options.

1. Increase your monthly Social Security payment.

Suppose you expect Social Security benefits to constitute a major part of your retirement income. In that case, you should maximize the size of your payments. Several options exist for achieving this:

Earning potential can be increased with time. Social Security payments are calculated as a share of median income. The more you earn (up to an annual wage base limit), the higher your benefit.
You can plan strategies with your spouse. If your spouse earns far more than you did, the spousal benefit may be bigger than your benefit. Create a joint strategy for filing for Social Security benefits to increase the total amount you both receive.
Social Security payouts can be delayed if necessary. Benefits start at age 62, but they grow every month up to age 70 if you can wait that long. Suppose you want to rely on Social Security income to finance your retirement. If you want to keep receiving your full benefit amount after reaching age 62, you should wait until age 70 to start collecting.

2. Pay as little as possible in taxes on your benefits.

Since the federal tax thresholds for Social Security payments are not raised to account for rising living costs, many retirees must pay federal income tax on their benefit checks.

No longer are the wealthy the only ones who have to worry about paying taxes on their Social Security benefits. You will have to pay taxes on at least some of your Social Security benefits if your total income (which includes half of your monthly payments plus other taxable and nontaxable income) is more than $25,000 if you file as a single taxpayer or $32,000 if you file as a married couple.

If you want to lessen the probability that you’ll lose some of your money to the IRS, invest in a Roth 401(k) or Roth IRA for your retirement instead of a standard account. Since Roth IRA withdrawals are not considered taxable income, you may be able to keep more of your hard-earned money in your pocket.

3. Consider your monthly Social Security payment when making financial plans.

Finally, if you intend to live mostly â€” or even exclusively â€” on Social Security, you must have a very tight budget. If you want to avoid paying a lot for housing, it’s important to have the mortgage paid off and settle in a low-tax location. To reduce healthcare expenditures, one should pick a low-priced insurance plan and relocate to an area with a low cost of living.

Despite your best efforts to save and invest, your Social Security benefits are intended to be something other than your entire source of income in retirement. You’re intended to replace roughly 40% or more of your wages with a pension and savings. If you’re a senior, you’ll need to downsize to a simpler living and have a small amount of money coming in from these other sources. Of course, you can also save more throughout your working life to fund your retirement with Social Security and other income streams and enjoy your older years instead of trying to live on a shoestring budget. It is preferable to do this versus continuing to get Social Security benefits.

Contact Information:
Email: [email protected]
Phone: 3604642979

Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.

Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.

Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.

Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.

Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.

With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Disclosure:
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.

Confidential Notice and Disclosure: Electronic mail sent over the internet is not secure and could be intercepted by a third party. For your protection, avoid sending confidential identifying information, such as account and social security numbers. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. All e-mail sent to or from this address will be received or otherwise recorded by the sender’s corporate e-mail system and is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient as permitted and required by the Securities and Exchange Commission. Please contact your advisor if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Additionally, if you change your address or fail to receive account statements from your account custodian, please contact our office at [email protected] or 800-779-4183.

Increase in Out-of-Pocket Costs Isn’t Just a FEHB Phenomenon

February 8, 2023 /by aaron steele

Increases in out-of-pocket expenses, a new trend in health insurance that has irked FEHB participants, are widespread in healthcare programs, according to a report by the Employee Benefit Research Institute.

Federal employee organizations also draw attention to the rising fees and taxes in that program, even though FEHB premium increases have historically been in line with those of healthcare programs provided by state governments and other significant employers.

They have alleged that the OPM has occasionally permitted plans to transfer costs to the out-of-pocket side, leading to falsely reduced premiumsâ€”which receive the most attention.

However, according to the EBRI report, there is a general trend toward rising out-of-pocket expenses in the healthcare industry, and “people with health coverage through their work generally pay more out-of-pocket for healthcare services than they did in the past.”

For instance, more employees have deductibles as a part of their health plans. Additionally, the typical deductible has been rising among people who have one. According to the report, the average deductible grew between 2002 and 2020 from $650 to $1,945 for those with employee-only coverage and from $1,395 to $3,722 for those with family coverage.

“Copayments have also been rising. An office visit’s typical copayment grew from $22.40 in 2002 to $26.92 in 2020. Office visit coinsurance rates climbed relatively slowly, but since coinsurance requires plan participants to cover a portion of the cost, out-of-pocket coinsurance expenses rise in tandem with office visit prices, it added.

Despite these increases, the percentage of adults with unpaid medical bills has remained relatively steady since 2015, according to the research. However, it continued: “It is very likely that as inflation rises, health care expenses would follow suit. Before the prevalence of past-due medical bills increases, it might only be a matter of time.”

Contact Information:
Email: [email protected]
Phone: 3604642979

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

FEHB Life Event Changes

February 8, 2023 /by joe carreno

The Federal Employees Health Benefits (FEHB) plan is a comprehensive health insurance program that provides a range of health insurance plans to federal employees, including options for self-only, self and family, and self-plus-one coverage. The FEHB program allows specific changes for enrollment outside of the annual open season, which is the period during which federal employees can enroll in or make changes to their health insurance coverage.

Life Event Changes Included

To change your FEHB enrollment due to a life event, you must submit a request to your employing agency within 60 days of the life event. You will also need to provide supporting documentation, such as a marriage certificate or birth certificate, to verify the life event. It’s important to note that not all changes to your FEHB enrollment are allowed outside of the open season. For example, you can only change your health insurance plan or switch from self-only to self and family coverage outside of open season if you experience a qualifying life event.

Additionally, you can only make one change to your FEHB enrollment outside of the forthcoming season due to a life event per calendar year unless you experience multiple qualifying life events in the same year. Changes allowed outside of the open season due to life events include

1. Marriage or Divorce

If you get married or divorced, you can add or remove your life partner from your health insurance coverage outside the open season. You will need to provide a photocopy of your marriage or divorce certificate to your employing agency to make the change.

2. Birth or Adoption of a Child

If you have a child or adopt a child, you can add the child to your health insurance coverage outside the open season. You will need to provide a photocopy of the child’s birth certificate or adoption papers to your employing agency to make the change.

3. Loss or Gain Eligibility For Other Health Insurance Coverage

If you lose eligibility for other health insurance coverage, such as a spouse’s employer-sponsored plan, you can enroll in or change your FEHB coverage outside the open season. Similarly, if you become eligible for other health insurance coverage, you can dis-enroll from your FEHB coverage outside the open season.

4. Changes in Employment Status

If you start or end a job or change from full-time to part-time employment, you may be eligible to change your FEHB coverage outside the open season. For example, if you start a new job with a different employing agency, you may be able to enroll in the FEHB program or switch to a different plan.

5. Death of a Family Member

If a family member on your FEHB coverage dies, you can remove them from your coverage outside the open season. You will need to present a copy of the death certificate to your employing agency to make the change.

Contact Information:
Email: [email protected]
Phone: 8139269909

Bio:
For over 30-years Joe Carreno of The Retirement Advantage has been a Federal Employee Retirement System specialist (FERS) as well as a Florida Retirement System specialist (FRS) independent advocate. An affiliate of PSRE (Public Sector Retirement Educators), a Federal Contractor & Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants. We will help you understand your FERS & FRS Benefits, TSP & Florida D.R.O.P. withdrawal options in detail while recognizing & maximizing all concurrent alternatives available.Our primary goal is to guide you into retirement with no regrets; safe, predictable, stable, for life. We look forward to visiting with you.

Disclosure:
Not affiliated with the U.S. Federal Government, the State of Florida, or any government agency. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Although we make great efforts to ensure the accuracy of the information contained herein we cannot guarantee all information is correct. Any comments regarding guarantees, safe and secure investments & guaranteed income streams or similar refer only to fixed insurance and annuity products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC insured.

TSP Annuities And FEHB Popular Among Employees

February 8, 2023 /by rick viader

TSP annuities and FEHB (Federal Employees Health Benefits) are two essential benefits available to federal government employees in the United States.

What Are TSP Annuities?

TSP (Thrift Savings Plan) annuities are retirement savings plans allowing employees to add some of their pay to a tax-deferred account. The TSP annuity option will enable employees to receive a guaranteed income for life, similar to a traditional pension. The TSP is a well-regarded retirement savings plan that offers a range of investment options and low fees.

What’s FEHB

FEHB is a comprehensive health insurance plan that provides a range of health plan options to federal employees, retirees, and their families. The program is administered by the Office of Personnel Management (OPM). It provides a choice of health plans, including fee-for-service, preferred provider organization (PPO), health maintenance organization (HMO), and high deductible health plan (HDHP) options. FEHB is widely recognized as a high-quality health insurance program. According to a 2019 Employee Survey, 90% of respondents rated the TSP as an essential benefit, and 86% rated the FEHB program as a substantial benefit. These results suggest that federal employees highly value TSP annuities and FEHB.

Why Employees Choose TSP Annuities And FEHB

One reason is that TSP annuities and FEHB offer a high level of financial security and protection. The TSP annuity option allows employees to receive a guaranteed income for life, which can be particularly appealing to those concerned about outliving their savings in retirement. FEHB provides comprehensive health insurance coverage, which can be especially important for those with significant healthcare needs or for those who have dependents who rely on their range. Another reason is that TSP annuities and FEHB are widely recognized as high-quality benefits programs. The TSP is a well-regarded retirement savings plan that offers a range of investment options and low fees. FEHB provides health plan options, including fee-for-service, PPO, HMO, and HDHP options. Employees may appreciate the flexibility and opportunities offered by these programs.

Finally, TSP annuities and FEHB are attractive to employees because they are part of a broader package of benefits. Federal employees value the overall benefits package, including retirement plans, life insurance, disability insurance, paid time off, and flexible spending accounts, in addition to TSP annuities and FEHB. These benefits can help to attract and retain talented employees and contribute to a positive work environment. In addition to financial security and protection, these benefits are attractive to employees because they provide access to quality healthcare and support for work-life balance. FEHB offers comprehensive health insurance coverage, which can be especially important for those with significant healthcare needs or for those who have dependents relying on their range.

Final Words

Overall, TSP annuities and FEHB are essential benefits that federal employees highly value. These benefits provide financial security and protection, are widely recognized as high-quality programs, and are offered as part of a broader package of benefits that can help to attract and retain talented employees.

Contact Information:
Email: [email protected]
Phone: 9568933225

Bio:
Rick Viader is a Federal Retirement Consultant that uses proven strategies to help federal employees achieve their financial goals and make sure they receive all the benefits they worked so hard to achieve.

In helping federal employees, Rick has seen the need to offer retirement plan coaching where Human Resources departments either could not or were not able to assist. For almost 14 years, Rick has specialized in using federal government benefits and retirement systems to maximize retirement incomes.

His goals are to guide federal employees to achieve their financial goals while maximizing their retirement incomes.

Annual Benefits Open Season of FEHB 2022

February 7, 2023 /by caine crawford

The federal employees who are retired for more than a year now, without any exceptions, know that the OPM (Office of Personnel Management) will announce annual coverage and premium terms through the FEHB program for the rest of the year in the early fall. This article will help you get all the available benefits of this program for you and your family.

What is FEHB?

FEHB stands for Federal Employees Health Benefits. It was established in 1960. The FEHB is an effective employee health insurance program. It covers the healthcare insurance of federal employees, retirees, and former employees. This program helps you and your family meet all your medical and healthcare needs. It provides healthcare benefits to a total of 8.2 million individuals.

Annual Federal Benefits Open Season

The FEHB open season of 2022 starts from November 14 till December 12. The yearly open season allows the users of this program to review their FEHB and FEDVIP options, make necessary changes and enroll for the upcoming year plan of 2023. During this season, the employees and annuities can access their programs and benefits. They can make sure that their methods are cost-efficient. It should cover all the requirements and services for themselves and their families.

The average premium increase of 2023 will be 8.7 percent. There will be 271 programs in 2023. It will include 18 nationwide choices open for all. Four options are available for specific groups, and the rest are available regionally. The FEBH program will be focused on COVID-19, obesity, maternal health, telehealth, assisted reproductive technology, and medical foods.

How Employees Are Wasting This Opportunity

According to OPM, thousands of employees enrolled in FEHB are wasting this opportunity of open season. Many enrollees need to take advantage of this season. It is the best time for them to review their healthcare coverage. They should ensure they are getting the most out of their selected benefits, as with the rapid increase in new diseases and fluctuation of the overall economy. Looking after the healthcare benefits of yourself and your loved ones is essential.

A Checklist for Federal Employees

Following is a checklist for federal employees, enrollees, and annuities. Even if you want to make any changes to your plan or leave it the same, just make sure it is the right plan for you from every perspective to get the most out of this open season.

Huge Premium Increases

For enrollees, the premium will increase to 8.7 percent in 2023. But this doesn’t apply to all plans. There will be a decrease in the total of 56 programs. Check to see if you have selected the right strategy and make changes accordingly.

Trying a New Plan

Keep a few things in mind while shopping for a new plan. Your latest project’s total cost and expenditure evaluation are essential. Ensure that the program you have selected is within your budget and is suitable for your family.

Changes in the Benefit Plans

The FEHB plan you opted for in 2022 may differ in 2023. The best place to look for changes is in section 2 of the original FEHB brochure. You may find out that the plan you choose is adding new benefits or making some changes, which may or may not be helpful. That’s why it is essential to look for plan benefit changes.

Vision and Dental Care Programs

The federal employee dental and vision care programs will likely stay unchanged. The dental plan will increase by 0.21%, whereas the vision care plan will increase by 0.41%. There will be no waiting period for orthodontics with any FEDVIP dental plans.

Try Flexible Spending Accounts

FSAs allow employees to save a small amount of $100 to as much as $3,050 in 2023. There are many FSAs healthcare programs that you need to be fully aware of. They help save money on medical expenses.

To Sum Up

The annual open season is an ample opportunity for federal employees, annuities, and retirees. They can review their plans, make needed changes and enroll for the following year’s plan. Recheck your previously selected plan, as there can be a change in its features or premium. Make sure to analyze your health insurance plan while choosing, as you should select a health plan for yourself and your whole family.

Contact Information:
Email: [email protected]
Phone: 3039011337

Bio:
PRESIDENT,
(FRC) FEDERAL RETIREMENT CONSULTANT
Caine Crawford Sr. uses his more than 20 years of experience in the financial services industry to help Federal Employees throughout the United States with their Benefits and retirement needs. Caine is President and Lead Benefits Counselor for the Federal Employee Advocacy Group, based in Denver Colorado.

When Caine’s father sought to retire from CSRS, he came to Caine for help. It was then that Caine discovered a lack of financial resources readily available to federal employees, and he sought to become better informed to help others. Caine met with his first GSA client in 2008, and he was shocked to learn that client truly did not know what to do with a thrift savings plan (TSP) after retirement. Following that meeting, Caine founded Federal Employee Advocacy Group and became laser-focused on helping federal employees maximize income and benefits while minimizing expenses and taxes.

Caine teaches Federal Benefits and Retirement workshops for Federal Agencies, all across the Country. He understands federal benefits can appear somewhat complex and lack clarity. By creating a custom benefit analysis, Caine pinpoints the gaps in clients’ current plans, maps out TSP growth based on historical data and ensures clients have a lifetime of income and a dignified retirement.

Caine has now published his book, The Educated Fed: Your Guide to Understanding & Maximizing Federal Benefits. The Educated Fed is a self-help book for federal employees who want to learn how to maximize their federal benefits for retirement. Inside you’ll find answers you didn’t even know you had questions for…With the help of a retired Department of Defense employee, Caine will walk you through all of the moving parts that are your federal benefits and show you which ones you have control of, which ones will make you money, and which ones could cost you. Even though we’re in the information age, we’ve found out that an “informed” federal employee is not as well positioned as an “educated” federal employee. The Educated Fed aims to address the gap between information and real education that we observed in teaching hundreds of federal benefits workshops across the country for numerous agencies.

Caine graduated from the University of South Carolina with a Bachelor of Science in finance. He then lived in Colorado for 25 years before moving with his family back to South Carolina to live near a lake. He and his wife have four children and enjoy spending time together when they can among their busy schedules. Caine also enjoys coaching lacrosse at the local high school.

The Trend of Increased Out-of-Pocket Costs along with FEHB Insurance

February 3, 2023 /by bill hoff

The FEHBP, the biggest employer health insurance plan in the US, is supposed to cover 8.5 million individuals, including retirees, government workers, and their families. The primary benefit of the program was that it gives federal employees and retirees the peace of mind that they are shielded from expensive out-of-pocket medical expenses.

But we are witnessing some changes in practices in the FEHB program. The employees or FEHB enrollees pay out-of-pocket costs for their health care regardless of their FEHB health insurance. According to an Employee Benefit Research Institute report, the recent trend in health insurance that has been a sore point for FEHB enrollees is rising out-of-pocket expenditures for healthcare services. Let me decipher more about the findings of Employee Benefits Research on Federal Employee and Retiree health benefits plans.

Increase in Insurance Premium Paid By FEHB Enrollees

The health plan of federal employees includes a health premium which is, on average, increasing rapidly. The average rise in health insurance costs for federal employees and retirees in 2022 will be 3.8 percent, less than the previous year. However, due to increased inflation rates, it still significantly decreases the remaining pay for federal workers nationwide. Between 2002 and 2020, the average deductible for individuals with employee-only coverage grew from $650 to $1,945, and for those with family coverage, it climbed from $1,395 to $3,722.

According to the EBRI report, rising out-of-pocket expenses have been a general trend in the healthcare industry. People with health coverage via their workplace frequently pay more out of cash for healthcare services than they did previously. In certain situations, they have claimed that the OPM artificially cut premiumsâ€”which receive the greatest attentionâ€”by permitting plans to transfer costs to out-of-pocket expenses.

Increase in Copayments and Coinsurance Rates

Besides, copayments have also been rising. The average office visit copayment has risen from $22.30 in 2002 to $26.90 in 2020. Coinsurance rates for office visits rose relatively slowly. Still, because coinsurance requires plan members to pay a portion of the fee, out-of-pocket coinsurance payments rise in tandem with office visit expenses.

According to the research, despite this growth, the proportion of individuals with past-due medical expenses has remained relatively consistent since 2015. But inflation hikes will, in all circumstances, eventually lead health care expenses to grow as well. It is only a matter of time until the percentage of previous-due medical bills rises.

In a Nutshell

Federal employees and retirees are getting health care benefits through health insurance from the government. Still, they are being looted in the form of extra out-of-pocket costs for their health care services. The overall health insurance premium is also increasing, decreasing their remaining salary. During this rising inflation trend, it is difficult for them to cover the cost of their bread and butter.

Contact Information:
Email: [email protected]
Phone: 2178542386

Bio:
Bill and his associates of Faith Financial Advisors have over 30 years’ experience in the financial services industry.
He has been a Federal Employee (FERS) independent advocate and an affiliate of PSRE, Public Sector Retirement Educators, a Federal Contractor and Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants.
Bill will help you understand the FERS Benefits and TSP withdrawal options in detail while also helping to guide you in your Social Security choices.
Our primary goal is to guide you into your ment with no regrets; safe, predictable, stable and for life using forward thinking ideas and concepts.

Bullet points:
> Financial Services consultant since 1984
> FERS independent advocate and an affiliate of Public Sector Retirement Educators (PSRE), a Federal Contractor and Registered Vendors to the
Federal Government
> Affiliate of TSP Withdrawal Consultants
> His goal is to guide individuals into retirement with safe, and predictable choices for stability using forward thinking ideas and concepts.

Federal Workforce Proposals May Catch Ride on Defense Bill

January 31, 2023 /by joe carreno

As the new Congress gets underway, many senate members are introducing federal workforce-related proposals. Some of these proposals have a good chance of being enacted, but they will need your help to make it happen. The National Defense Authorization Act, or NDAA, is a proposal that has a good chance of being enacted this year. This bill authorizes funding for the Department of Defense, and it’s been amended in the past to include workforce-related proposals.

Why the DoD Authorization Bill is a ‘Must-Pass’ Bill

This year, lawmakers are preparing to fight over the National Defense Authorization Act (NDAA), which authorizes the Department of Defense funding. The bill is always a “must-pass” legislation, as it provides the resources and framework for the Pentagon to carry out its activities. But this year is different. In addition to the usual disagreements over funding levels and military policy, lawmakers are also trying to attach a range of proposals that have made some progress. These proposals include measures to improve the federal workforce, such as increasing pay and improving benefits.

Suggested Amendments

Recently, Senate management consented to permit discussion of the following amendments in the law.

Raise the death benefit for federal workers murdered in the line of employment from $10,000 to $100,000 and increase it yearly with the inflation rate. Additionally, raise funds for funeral costs from $800 to $8,000, likewise with inflation adjustments.
Specify that we assume workers’ compensation benefits and brought on specific circumstances to buy jobs for federal workers who participated in fire safety duties. And they should also believe that the employee’s impairment or death is the outcome of a personal injury suffered while performing their duties.
Preserve the unique retirement benefits of federal first responders with medical issues by letting them continue under the special retirement provisions if the employers can place them in another post outside of that system after getting back to work from a work-related illness or injury.
Increase the use of special recruiting powers, including direct-hire authority, short-term appointments, and employment of fresh graduates. Besides, develop or extend pilot programs focused on solving agencies’ challenges with IT field hiring and retention.

Final Words

In short, we often see the annual DoD authorization bill as a vehicle for proposals that have made some progress but have yet to be enacted. In 2023 many federal workforce-related proposals have been attached to the bill as it comes to a vote in the Senate.

Contact Information:
Email: [email protected]
Phone: 8139269909

FERS OPM Medical Retirement: The Hard Acceptance Beyond

January 31, 2023 /by george learned

Sometimes, we fall under circumstances and situations that our mind refuses to accept. Disability and accidents that prevent federal employees from doing their job effectively also fall under conditions that are hard to get.

FERS OPM Medical Retirement allowed federal employees with medical issues and disabilities to come out of the situation. However, it’s a complex process. Many people fail to qualify for the FERS medical retirement benefit because their applications lack essential information and relevant medical records. Therefore, you should accept your health condition and claim FERS medical retirement with the help of an expert. Here are the FERS requirements you must fulfill to apply for FERS OPM medical retirement.

FERS Medical Retirement Eligibility Requirements

If FERS-covered employees declare that they are medically unstable to perform their jobs, they can be eligible for disability retirement benefits. Federal employees can enjoy long-term disability benefits (LTD) plans, which commercial insurance companies manage. However, there are a few conditions of OPM OPM) to qualify for the Federal Employees Retirement System. These conditions include:

You must complete at least 1.5 years of employment to be eligible for the FERS.
You fail to perform your job due to an illness or injury that prevents you from providing “productive and effective service” in your current position.
You must obtain a certification from your employer stating that you cannot make accommodations for your disability and that you won’t be transferred to another job within the same organization or at a similar pay scale.
You must assume that your disability will last more than a year.
During the first 12 months following your withdrawal from service, you or your guardian must submit a disability retirement request to your agency or the OPM.
You must submit an application to the Social Security Administration for disability benefits.

It takes time to navigate how to qualify for the benefit in a simple process. We advise hiring a lawyer when applying for these benefits so they can assist you in planning for FERS benefits and ensure you’re getting the benefits you’re entitled to.

Final Words:

It is necessary for federal employees and U.S. Postal workers to prepare, create, and submit a robust Federal Disability Retirement application under FERS via the U.S. Office of Personnel and Management. It will undoubtedly be a struggle, but it will be worthwhile to put up the fight. Speak with an attorney that focuses on Federal Disability Retirement Law to get the assistance you need to achieve the difficult acceptance you require to move on with life.

Contact Information:
Email: [email protected]
Phone: 3037587400

FERS OPM Medical Retirement: Income Opportunity

January 31, 2023 /by jeff boettcher

The federal disability retirement benefit is large, but it is without a doubt less than the national worker is accustomed to receiving. Therefore, many people fall back and do not try to qualify for federal disability retirement. However, we should encourage an employee to enjoy the perk, mainly if their alternatives at work are limited.

When an employee’s medical issues make it impossible for them to continue working at their job position, federal disability retirement is typically the best option. It has several benefits. One of the most favorable benefits is that a federal employee qualified for Federal Disability Retirement can continue to work in any private enterprise position that falls within the person’s medical constraints. Let me tell you more about it.

Does Filing For Disability Benefits Mean Your Career Is Over?

Filing for disability benefits does not mean the employee’s professional journey is over. Though you won’t be working as an employee, it doesn’t mean you can’t take any other job. FERS disability retirement allows you to shift from your current position into a new career. Therefore, after qualifying for a medical retirement through OPM, many government employees find another job or create a less demanding business. These jobs provide them with financial stability and improve their health, because losing your job can badly affect your psychological well-being.

For instance, a postal worker may have difficulty carrying the mail because of a knee issue. However, this does not preclude the employee from beginning a business, developing websites, engaging in sales, or indulging in many other jobs that do not place the same load on his knee.

Based on input from prior Federal Disability Retirement customers, here is a list of potential work prospects in the private sector.

Teaching Assistant
Babysitting Helper
Realtor
Dental Assistant
Office Admin
Insurance Agent
Content Writer

Limitation

Although it is a beneficial aspect, there is a limitation to it. FERS has set up an earning limit of less than 80% of their income at the previous posts for workers availing of disability benefits. Moreover, disabled employees must notify the OPM if their earnings exceed 80% of their existing federal employment wage. They will examine your statements to decide if you will keep receiving disability retirement income or whether your income exceeded the 80% earning limit. If you surpass the 80% earning limit, you will be judged recovered to earnings potential and will not be eligible for federal disability monthly payments.

Final Words

The Federal Disability Retirement benefit is a complicated and perplexing subject. It is vital to comprehend the long-term consequences for you and your family. Therefore, consult a professional lawyer to evaluate the advantage in light of your circumstances and choose the best course of action.

Contact Information:
Email: [email protected]
Phone: 8007794183

Bio:
For over 20 years, Jeff Boettcher has helped his clients grow and protect their retirement savings. “each time I work with my clients, I’m building their future, and there are few things that are more important to a family than a stable financial foundation.”

Jeff is known for his ability to make the complex simple while helping navigate his clients through the challenges of making the right investment decisions. When asked what he is most passionate about professionally, his answer was true to character, “Helping my clients â€“ I love being able to solve their problems. People are rightfully concerned about their retirement income, when they can retire, how to maximize their financial safety and future income.” Jeff started Bedrock Investment Advisors for clients who value a close working relationship with their advisors.

A Michigan native, Jeff grew up playing sports throughout high school and into college. While Jeff is still an ‘aging’ athlete, Jeff will take more swings on the golf course than miles running these days. He creates family time, often with weekly excursions to play golf, a hobby he shares with his three young children.

Disclosure:
Investment Advisory Services are offered through BWM Advisory, LLC (BWM). BWM is registered as an investment advisor and only conducts business in states where it is properly registered or is excluded from registration requirements. We are currently either state or SEC-registered in the following states: Arizona, Florida, Illinois, Kansas, Louisiana, Michigan, New York, Oregon, Texas, and Washington. Registration is not an endorsement of the firm by securities regulators and does not mean the advisor has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Although we make great efforts to ensure the accuracy of the information contained herein, we cannot guarantee all information is correct. Different types of investments involve higher and lower levels of risk. There is no guarantee that a specific investment or strategy will be suitable or profitable for an investor’s portfolio. There are no assurances that a portfolio will match or exceed any particular benchmark. Any comments regarding guarantees, safe and secure investments, guaranteed income streams, or similar refer only to fixed insurance and annuity products. They do not refer, in any way, to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company and are not offered by BWM Advisory, LLC. Guaranteed lifetime income is available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC-insured. Not affiliated with the U.S. Federal Government or any government Agency.

Pay Agent Repeats Criticisms of Federal Pay-Setting Process

January 29, 2023 /by kevin wirth

Senior Present administration officials, acting as the President’s Pay Agent, have repeatedly criticized the government’s process for setting federal employee raises based on comparisons with private sector jobs.

The Pay AgentÃ¢â‚¬â€the heads of Labor, OMB, and OPMÃ¢â‚¬â€said in its latest report that there is a need to consider major legislative reforms of the white-collar federal pay system since the enactment of a 1992 law.

That law created a formula of across-the-board raises plus locality pay designed to bring federal salaries within 5 percent of the private sector average by geographic area. But it said that the procedure must be amended since January 1994 because of budgetary and methodological concerns.

The Budget Issue

Closing the indicated pay gaps according to that formula would cost an additional $19.2 billion in the first year. However, it is also important to emphasize that the underlying methodology for locality pay of relying on one singular locality rate covering a locality pay area has lacked credibility since the beginning of locality pay in 1994 to such a degree that the statutory formula for closing pay gaps has been overridden either by Congress or by successive Presidents every year since that first year.

Ignoring that non-federal pay in a local labor market may differ between different occupational groups. As currently applied, locality payments in a local labor market may leave some mission-critical occupations significantly underpaid while overpaying others.

New Administration

In its first two years in office, the Biden White House has not recommended what would be a fundamental change to consider occupational and geographic differences in the raise-setting process.

Instead, it has followed the practice of its predecessors by urging agencies to use various pay-setting flexibilities and incentive payments for occupationsÃ¢â‚¬â€such as IT and health careÃ¢â‚¬â€where the government has the most trouble recruiting and retaining employees.

The next significant opportunity for the White House to recommend a major overhaul would be in the fiscal 2024 budget proposal to be sent to Congress in a few months.

Contact Information:
Email: [email protected]
Phone: 9143022300

Bio:
My name is Kevin Wirth and I have worked in the financial services industry for many years and I specialize in life insurance and retirement planning for individuals and small business owners, with a specialty in working with Federal Employees. I am also AHIP certified to work with individuals on their Medicare planning. You can contact me by e-mail or phone. I look forward to the opportunity of working with you on these most relevant areas of financial [email protected] 914-302-2300

New Rules Set Tone on Federal Employee Performance and Conduct Issues

January 29, 2023 /by mickey elfenbein

The 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 â€œbusiness as usualâ€ 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.

FERS OPM Medical Retirement — How To Apply For It

January 27, 2023 /by marvin dutton

Nowadays, many federal employees suffer from certain medical conditions. However, they are still in an anxious state of mind where they can’t figure out why they need federal disability retirement and how to qualify for it. Though consulting an attorney is the best solution to come out of it, we are here to help you apply for federal OPM medical retirement.

Step By Step Guide On How To Sign Up For FERS Medical Retirement

A medically challenged federal employee must complete five stages to qualify for FERS disability retirement funds.

Make an application for Social Security Disability Benefits

It is essential to apply for social security benefits first because FERS must detect if they have claimed Social Security disability payments when using them for FERS disability retirement.

Remember that you are not required to be accepted for SSDI to apply for FERS medical retirement funds. It is only necessary because you need to enclose a copy of the SS application receipt or grant notice with the FERS disability retirement application.

Fill out the Standard Form 3107 Application

Federal employees must apply for FERS medical retirement benefits while working in the public sector or within 12 months of leaving the service.

It is a long application form that requests comprehensive information such as personal info, a summary of federal service, marital status, type of annuity chosen, insurance details, and other claim information. It also includes payment instructions, claimant’s checklist, military experience, and military retirement pay details, workers’ compensation information, and the applicant’s credentialing that all information is entirely accurate.

Fill out Standard Form 3112, Disability Retirement Application Documentation

Federal employees who are disabled must produce documentation to support their FERS disability retirement application. The Standard Form (SF) 3112 consists of five significant forms, some of which are filled by the applicant and others by their physicians, supervisor, or agencies.

It includes the following:

1. Applicant’s Statement of Disability, Standard Form 3112A.

2. Supervisor’s Statement, Standard Form 3112B.

3. Physician’s Statement, Standard Form 3112C.

4. Agency Confirmation of Reassignment and Accommodation Attempts, Standard Form 3112D.

5. Disability Retirement Request Checklist, Standard Form 3112E.

Make Xerox Copies Of All documents

Make Xerox Copies of all applications supporting documentation and certification forms because FERS disability retirement applicants must keep them safe.

Submit the Form

If the hiring agency currently employs the employee, you must send the application and relevant papers to the personnel office. It also applies to government workers out of work for 30 days or less. Later it’s the responsibility of the personnel office to forward it to OPM for assessment and confirmation of disability. However, if a federal employee has left government duty for 31 days or longer, they must submit everything to OPM directly.

Final Words

Now you know how to apply for federal disability retirement. Make sure you don’t miss any important information while filling out the form, and you are good to go.

Contact Information:
Email: [email protected]
Phone: 2129517376

Overview of TSP Key Figures For 2023

January 27, 2023 /by george learned

As we ring in the New Year, some changes are afoot regarding the critical figures for TSP. For federal employees in 2023, there are two new investment maximums: the standard limit and the “elective deferral limit.” The legal limit is going up by $2,000 to $22,500, while the catch-up contribution limit will increase by $1,000 to $7,500. For those eligible to make catch-up contributions, any investments beyond the standard limit will automatically be designated as catch-up contributions. Keep these changes in mind as you continue contributing to your TSP account throughout 2023!

â€ËœStandard Limit’ vs â€ËœCatch-Up Contribution’

One of the most important things to know about TSP is the difference between the standard and catch-up contribution limits. The standard limit is the maximum amount you can invest in a year, regardless of age. On the other hand, the catch-up contribution limit is for people aged 50 or older. You’re allowed to invest an additional amount each year on top of the standard limit.

How to Calculate the Maximum Amounts for TSP Investment in 2023

To calculate how much you can invest in your TSP account for 2023, simply add the standard and catch-up limits together. So if you are eligible for catch-up contributions and plan to support the maximum amount each year, your total investment for 2023 will be $30,000 ($22,500 + $7,500).

Spillover Contributions

Spillover contributions are investments beyond the standard limit and are automatically designated as catch-up contributions up to the limit. These spillovers are helpful to those who have exceeded their standard limit but still want to save more for retirement. It can be achieved by taking advantage of the additional $1,000 allowance in 2023, up from the $6,500 allowed in 2022.

Employees covered by FERS should be aware that to get the maximum government contributions, they must speed up their investment so that they may put away at least 5% of their annual salary in each yearly pay period. If they reach their cap before then their investments and agency-matching contributions will stop. However, the automatic 1% agency contribution will remain.

It should also be considered that 2023 is one of the few years with 27 pay periods, as opposed to the more common 26. Furthermore, the recently adopted fiscal year-end budget package increases the age limit from 72 to 73, beginning with those turning 73 in calendar 2023. It’s the age at which retirees must draw certain minimum payouts from the TSP.

Conclusion

In short, the new year changes key figures for TSP, including investment maximums. For those eligible to make catch-up contributions, the new year offers the opportunity to invest even more for retirement. Be sure to review the changes and determine if they impact you so that you can make the most of your TSP contributions in 2023.

Contact Information:
Email: [email protected]
Phone: 3037587400

How to Maintain Your FEHB after Retirement

January 26, 2023 /by joe carreno

Retired federal employees risk losing their FEHB coverage if they don’t satisfy specific requirements.

Yes, you heard correctly. Unfortunately, FEHB, your government health insurance, is not available to everyone after retirement.

It would be best if you were qualified. This article will explain how to qualify and guarantee that your spouse will be able to keep it when you pass away.

Possibility of Maintaining FEHB during Retirement

You must meet two major requirements to continue receiving FEHB after retirement.

1. Retire with immediate retirement

For the conventional FERS, this entails leaving the workforce with at least one of the following: 30 years of service at your MRA (minimum retirement age); 20 years of service at age 60; 5 years of service at age 62; or ten years of service at your MRA (MRA+10 Retirement).

2. You must have continuously received FEHB coverage for the five years before retirement.

What if the spouse also works for the government?

It doesn’t matter who is officially carrying the FEHB plan if your spouse is also a federal employee as long as you are protected by it for the five years before retirement.

Consider the scenario where you and your spouse are both federal employees and have a Self+One plan that covers both of you. If your spouse retires immediately, they may choose to continue receiving FEHB benefits into retirement on their own record.

However, when a spouse who is not a federal employee chooses to be on their health insurance, that is when folks get into difficulties. So simple, you rejoin FEHB in this scenario at least five years before retirement.

Then what if I have Tricare? A deviation from the “5-Year Rule.”

The five-year rule exempts those Tricare covers as long as you are FEHB-insured on the day of retirement; having Tricare can satisfy the five-year requirement.

For illustration, suppose you had Tricare for the five years before retirement but switched to FEHB in the final year of your retirement. Because your Tricare satisfied the 5-year requirement and you had FEHB at the time of retirement, you would be qualified to maintain it into retirement in this situation.

Giving Up FEHB to Support Your Spouse

Now that you’ve retired and successfully transferred your FEHB benefits, you want to ensure that your spouse may still get FEHB after you pass away.

It would be best if you chose a survivor benefit on your pension for your spouse as the only significant criterion. Therefore, following your death, your spouse won’t receive a survivor benefit or FEHB.

You can choose to receive the survivor benefit or not on your retirement application.

You and your spouse are set to go if you choose one of the first two of these three survivor-benefit options.

1. Full Survivor Benefits: If you die first, your spouse receives 50% of your pension for 10% of your retirement.

2. Partial Survivor Benefits: If you die first, your spouse receives 25% of your pension at the cost of 5% of your pension.

3. No Survivor Benefits: There is no expense to you, and your pension is forfeited upon death.

After I retire, can I still receive my health benefits?

If you satisfy all the requirements listed below, you may continue receiving your current health benefits plan.

How can family members be added?

You can add a new spouse or child after retiring anytime due to a life-change event, provided you are qualified and have completed your requirements. You can also change from a Self Only to a Self and Family plan during a Federal Benefits Open Season. FBOs typically lasts from early November until mid-December.

What Does FEHB cost in retirement?

When opposed to commercial health insurance, one benefit of having FEHB is that the cost of health insurance for federal employees remains the same after retirement. Therefore, you continue to have the government pay for some of your health insurance. This can result in significant savings on healthcare expenses, given that the FEHB covers 7275% of the cost.

In comparison to private employment coverage, this has several benefits. Like the FEHB, a private employer will often cover a portion of your health benefit expenses while employed. However, you frequently cannot maintain your work health benefits if you retire from the private sector. Instead, you must switch to a private health insurance plan or Medicare if you’re old enough.

Contact Information:
Email: [email protected]
Phone: 8139269909

Bio:
For over 30-years Joe Carreno of The Retirement Advantage has been a Federal Employee Retirement System specialist (FERS) as well as a Florida Retirement System specialist (FRS) independent advocate. An affiliate of PSRE (Public Sector Retirement Educators), a Federal Contractor & Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants. We will help you understand your FERS & FRS Benefits, TSP & Florida D.R.O.P. withdrawal options in detail while recognizing & maximizing all concurrent alternatives available.Our primary goal is to guide you into retirement with no regrets; safe, predictable, stable, for life. We look forward to visiting with you.

Disclosure:
Not affiliated with the U.S. Federal Government, the State of Florida, or any government agency. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Although we make great efforts to ensure the accuracy of the information contained herein we cannot guarantee all information is correct. Any comments regarding guarantees, safe and secure investments & guaranteed income streams or similar refer only to fixed insurance and annuity products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC insured.

Why You Could File Early For Social Security

January 26, 2023 /by rick viader

You can choose when to file for Social Security benefits once you become eligible at age 62. You can hold off until you reach full retirement age (FRA), which means you may be eligible for a higher monthly payment. Your full retirement age is either 66, 67, or anywhere in between, depending on your birth year.

You can also apply for Social Security early if you’re ready to accept a lower monthly payout for the rest of your life. On the other hand, delaying your Social Security application past FRA will increase your payments. This incentive expires at age 70, but up until then, you can permanently increase your social security benefits by 8% for every year you wait to file after FRA.

It’s common knowledge that applying for Social Security before FRA is a mistake because it ensures you’ll receive a lesser monthly income for the rest of your life. Although filing early can lock in a lower compensation, it’s not always a bad idea.

View the large picture

Some retirees wind up relying substantially on Social Security to support themselves. However, suppose your financial situation is intense. In that case, you might have the flexibility to apply for your social security benefits earlier and utilize the money to accomplish objectives that are simpler to complete when you’re younger, like hiking particular mountains or taking part in active trips.

Imagine that you have a $2 million nest egg at your disposal. If you apply for Social Security early, you might receive a smaller monthly benefit, but you might also have enough funds to compensate for that loss. As such, you can get your money when you can use it better.

In addition, no one has a crystal ball, so you never know how old you’ll live. But by claiming Social Security before FRA and receiving the money earlier, you can be financially better off if you don’t live an exceptionally long life.

Filing early enables you to maintain better health. A stressful office job that frequently elevates your blood pressure and requires you to lead a sedentary lifestyle could have detrimental physical repercussions. Prioritizing Social Security over FRA may allow you to quit your employment and lead a healthier lifestyle.

Another reason to take your benefits early is if you need to pay off certain debts before you can retire. Early Social Security benefits can assist you in paying off high-interest debt. The 8% annual increase in benefits you receive for each year you wait past full retirement age may not be worth the higher monthly benefit, depending on the interest rate you’re paying. You might be able to keep more of your benefits in the future if you use the early benefits to reduce or pay off your debt earlier.

You can also take your benefits if you want to start a business. For instance, you might have delayed beginning a business in the past because you wouldn’t make enough money. Benefits from social security may give you enough money to start your own business. And if your business succeeds, the money it brings in might be more than enough to make up for the benefits that will eventually be cut.

Lastly, you should consider filing early if nobody is relying on your benefits besides you. The Social Security Administration may give money based on your benefits to a surviving spouse, child under 18, or child with a disability in the event of your passing. They may be entitled to 71.5% or 100% of your benefit. Even after you’re gone, a disabled child can continue to get 75% of your monthly payments. You might want to retire early if no one else can receive social security benefits based on your own record because no one depends on that money.

Ignore the warnings and go after what you feel is best

If you’re considering filing early, you’ll need to weigh the risks of accepting a lesser Social Security payout for life. However, you shouldn’t assume that filing for Social Security benefits before FRA is a bad idea.

Instead, consider your unique situation and the advantages of claiming your benefits a few years early. You might discover that earning your money sooner exceeds the drawback of receiving a lower monthly check for the rest of your life.

Contact Information:
Email: [email protected]
Phone: 9568933225

His goals are to guide federal employees to achieve their financial goals while maximizing their retirement incomes.

FEHB is a Medicare Supplemental Insurance for Retirees

January 26, 2023 /by todd carmack

It is generally unnecessary for federal employees who continue their FEHB coverage after retirement to buy Medicare insurance (Medigap), as FEHB provides many similar services. This article will help you understand Medicare’s terms and procedures after retirement. This information will help you analyze your decision before buying any coverage after retirement.

What is Medigap?

Medigap is supplemental insurance that helps fill the gap in your original Medicare. Medigap is a private insurance sold by private companies. Medicare pays for most of the services but not for all. Medigap policy helps pay for some healthcare benefits that Medicare doesn’t.

Choosing Medigap Over FEBH

Sometimes, a retired person cannot continue FEHB. Few retirees choose to drop FEHB and stick with Medicare as they would be paying twice for coverage they can receive only once. In these cases, retirees prefer to buy a Medigap plan. It is designed to cover medicare cost-sharing amounts and fill in other gaps in Medicare policies. There are various types of Medigap policies that offer multiple combinations of benefits.

Best Time to Buy a Medigap Plan

The Medigap open enrollment period is the only time to buy a new policy. It starts six months from your first Medicare part B enrollment. You also have to be 65 or older. You can buy a Medigap policy of your choice during this time and age. It is your open enrollment period.

Because of your poor health, they cannot turn you down or charge a higher price during your open enrollment period. Once this period ends, you may not be able to buy a policy of your choice. You will end up accepting whatever policy a Medigap company is offering you. If you already have Medicare part B but are not 65, your enrollment period will start once you turn 65. Many states require a limited Medigap open enrollment period for Medicare users under 65.

Things You Need to Know About a Medigap Plan

You need to know the following things before buying a Medigap plan.
To access Medigap, you must have Medicare plans A and B.
A Medigap policy only covers one person at a time.
You can easily buy a Medigap policy from any licensed insurance company; you pay them a monthly premium for your Medigap policy.
A Medigap policy is different from an Advantage Plan of Medicare.
It is essential to choose a Medigap plan that suits you.
Medigap policies no longer include drug coverage.

Conclusion

After retirement, it is necessary to choose healthcare insurance that covers all your medical requirements. Your state insurance assistance program can help you by answering your queries about Medicare and other healthcare insurance programs. You should be able to decide whether you need to buy more insurance, what types of insurance you should select, and where you should buy it.

Contact Information:
Email: [email protected]
Phone: 6232511574

Bio:
I grew up in Dubuque, Iowa, where I learned the concepts of hard work and the value of a dollar. I spent years in Boy Scouts and achieved the honor of Eagle Scout. I graduated from Iowa State University and moved to Chicago and spent a few years managing restaurants. I then started working in financial services and insurance helping families prepare for the high cost of college for their children. After spending years in the insurance industry, I moved to Arizona and started working with Federal Employees offing education and options on their benefits. I became a Financial Advisor / Fiduciary to further help people properly plan for the future. I enjoy cooking and traveling in my free time.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.

Some TSP Features among Many Policies Affected by Spending Bill

January 24, 2023 /by caine crawford

An enormous spending package is currently before Congress. Among its numerous components are new requirements that would affect TSP investment and withdrawal programs and the continuation of several long-running practices.

The same tax law sections cover the TSP as 401(k)s and similar plans. Therefore the proposal incorporates wording from a bill that had advanced but yet to reach passage separately to make several adjustments to retirement savings programs.

The required distribution age would go up from 72 to 73, starting with those turning 73 in the coming year, and then to 75 beginning in 2033. Additionally, the limit on catch-up contributions investments above normal limits for those 50 and older was $6,500 in 2022 and will increase by $7,500 in 2033. It will go up to $10,000 for those aged 60-63 beginning in 2025.

The new law allows the TSP to treat employee payments toward their student loans like 401(k) contributions. Automatic enrollment for new workers and matching contribution rates are areas where the wording would set minimal criteria that TSP rules currently exceed.

The new senate measures would prohibit using TikTok on government-issued devices, with some exceptions for law enforcement and security-related activities. This language is included in the omnibus package as well. OMB would have to give guidelines about uninstalling it from devices within two months.

There are also recurring provisions in general government appropriations bills, such as a ban on training unrelated to official duties and a prohibition on conducting “Circular A-76” studies that could lead to the contracting out of federal jobs, as well as a general ban on abortion coverage in the FEHB.

As the new Congress is set to convene on January 3, with Republicans taking control of the House and Democrats holding a slim majority in the Senate, this bill is the final item on the agenda before lawmakers break for the holidays.

The Defense Department Authorization Act, which cleared Congress last week, was the final significant item of the year. In addition to the many unique hiring and compensation authority applicable to the Department of Defense, the law contains several other provisions.

Among these were authorization measures for the intelligence community, the State Department, and the Coast Guard and damage compensation payments for federal firefighters.

The defense law ended the requirement that military members get the COVID-19 vaccination. It still needs to address a comparable assignment for government employees, which is now halted by an injunction that is being appealed.

Contact Information:
Email: [email protected]
Phone: 3039011337

The Basics and Options of Federal Employees’ Group Life Insurance

January 21, 2023 /by marvin dutton

You will become eligible for life insurance via the Federal Employees’ Group Life Insurance program on the first day of employment with the feds. Still, you must provide written notice of refusal before your first pay period ends to be covered.

The basic plan includes two distinct types of FEGLI protection. First, there are Basic offers, no-medical-exam term life insurance for groups. The second is a form of insurance called accidental death and dismemberment (AD&D) that offers double indemnity in the event of an accident.

Aside from one exception, the government and you will each pay half the premium for this set of benefits. The Postal Service has negotiated with the union to cover the total cost of its employees’ Basic health insurance.

Main Life Insurance

One year’s salary is the value of your Basic life insurance policy. From the sum, retirement contributions are withheld. And it’s inflated by an extra $2,000 to the nearest thousand. If your income changes, so will that amount.

The amount of your AD&D coverage will be the same as your Basic coverage if death strikes or you lose two or more appendages, such as a hand, foot, or eye. The compensation would be half as much if only one limb was severed.

As you become older, your AD&D payout decreases. If you are under 35, your AD&D coverage will equal twice your Basic life insurance. Once you reach age 45, the multiplier will equal your Basic insurance amount, having decreased by a tenth for each year above the age of 35.

Added Insurance

If you already have Basic and AD&D life insurance, you can add other types of coverage. You must pay the total price for any of these upgrades that you select.

Option A â€“ Standard Insurance

You can purchase an extra $10,000 in life insurance under Plan A. The premiums start relatively low but rise steadily as an employee ages. A higher rate applies to those who are older.

Option B â€“ Extra

Option B allows you to get life insurance for one, two, three, four, or five times your yearly base salary (rounded up to the next $1,000).

Option C â€“ For Family

Option C allows you to include your spouse and qualifying dependent children on the same insurance.

With Choice B, you can choose five times protection for your family, with each multiple amounting to $2,500 for your spouse and $5,000 for each of your children.

Insurance premiums are priced on a per-multiple basis and increase with age. It’s recommendable to get the best insurance for you and your family.

Contact Information:
Email: [email protected]
Phone: 2129517376

Are You Turning 65 in 2023? Here’s What You Need to Know

January 20, 2023 /by joe carreno

Though retirement seems like a relief, there is more to think about the unemployed life afterward. Some people retire early, even before their 60s. On the other hand, some people extend their employment up to seven years. However, 65 is considered the best age to retire from federal service all over the US.

It’s a common practice to leave service at 65, but many people need future financial planning to do it. And that’s a crucial mistake. Even though you have your TSP funds and other bonus to cope with your expenses, you need more than that to keep your cash inflow and outflow balanced. Therefore, we are here with key points to focus on if you turn 65 in 2023 and are planning to retire from federal service.

Secure Your Assets Against Market

Most retirees are unlikely to have the opportunity to live off the investment income without touching the principle. Therefore, it’s crucial to ensure that any money you will want soon (or at least during the coming year) is guarded against the marketplace. It would help if you didn’t depend on the market to rise (so you may sell shares) to pay your bills, as 2022 tragically showed.

For instance, if you require $35,000 in cash but only have $30,000 in annual retirement income from Social Security and other sources, you should save $5,000 in savings and investments that are safer than bank deposits. You can also save the cash by keeping it in a high-yielding interest-bearing account or a short-term CD to make it worthwhile and make money until you need it.

Enroll in Medicare

Once you reach 65, you become eligible for Medicare healthcare insurance. You have seven months to sign up for Medicare first, starting 90 days before your 65th birthday and concluding 90 days after that. You can incur a lifetime fee on your Part B payments if you don’t enroll in Medicare early. However, you are not required to sign up for Medicare when you turn 65.

Your company may continue providing health insurance if you’re still employed at age 65. And you may put off signing up for Medicare without worrying about surcharges until you participate in an eligible health insurance policy.

Sign Up for the Medicare Part A Plan

Medicare Part A, which includes hospital care, does not cost anything for most beneficiaries. Even if you have your health plan at your fingertips by the time you turn 65, you can enroll in Part A alone since it is free of cost. The advantage of doing this is that Part A can act as backup insurance if you accrue medical expenses that your primary insurance cannot pay for.

Besides, you must know that you can’t contribute to a health savings account (HSA) after enrolling in Medicare. Therefore, delaying your Part A enrollment might pay off if you wish to continue contributing to your HSA and benefitting from the associated tax benefits.

File for Social Security Benefits

As soon as you are 62, you can apply for Social Security benefits. However, you will be eligible for your month-to-month Social Security payment once you’ve reached your retirement age (FRA), which is determined by your individual employment history.

Your federal retirement age is 66 years and eight months if you reach 65 in 2023 and were born in 1958. It will reduce your payments by around 9% if you begin receiving Social Security at age 65. And that price cut will last the remaining lifetime. Now, you might not be allowed to defer your application if you require your Social Security payments at age 65 because you’re retiring. However, if you’re still working hard, wait to collect Social Security, so you don’t permanently reduce your monthly income.

Additionally, if you begin receiving Social Security benefits at age 65 while working, you risk having certain payments reduced if your income rises above a particular level. It is a good excuse to postpone filing your claim, too.

Final Words

Many individuals find creating a retirement plan intimidating, especially if they need more money or can’t retire the way they want. However, you can achieve more than you realize. Besides, you can also modify your financial plan to increase your savings.

Contact Information:
Email: [email protected]
Phone: 8139269909

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