Army Benefits Center-Civilian

Army Benefits Center-Civilian

Army Benefits Center-Civilian FERS Overview Updated 01/08/2014 1 INTRODUCTION ABC-C MISSION: We are a top performing, caring team of Civilian Human Resource professionals providing quality benefits and entitlements services to our customers through a centralized automated contact center. ABC-C SERVICES: Provide advisory services and processes transactions for: Federal Employees Health Benefits (FEHB) Federal Employees Group Life Insurance (FEGLI) Thrift Savings Plan (TSP) Retirement (FERS & CSRS)

Survivorship (Death Claim Processing) Unemployment Compensation 2 ABC-C SYSTEMS Employee Benefits Information System (EBIS) Web Based Customer-friendly Available 24 hours a day (with CAC access) Secure site Requires use of SSN and PIN Ability to read at convenience Ability to print screens of information

Can process benefits transactions without counselor assistance Ability to print benefits forms Estimate calculators ABC-C website: https://www.abc.army.mil 3 ABC-C SYSTEMS Telephone Lets you connect with a counselor Available to those without computer access Counselors are available 12 hours a day ABC-C toll-free telephone number is 1-877-276-9287 *Option #3 for National Guard Personnel 4 PRODUCTION SUMMARY 1 JANUARY 31 DECEMBER 2013 Estimates

Retirements & Disabilities Post 56 Military Deposit Deposit/Redeposit TCC 1,413 Death Actions Family Member Death TSP Make-Up FEGLI Family Member Death; 3; 0.06% 26

3 FMD 5 RETIREMENT PROCESSING TIME 1 JANUARY 31 DECEMBER 2013 1 1% 335 34% 642 66% 3 2% Rcvd More Than 60 Days: 134 167 98%

Total: 977 Met 197 99% 134 100% 111 44% Rcvd 31-60 Days: 198 144 56% 220 100%

Did Not Meet Rcvd 16-30 Days: 170 Rcvd 1-15 Days: 255 Rcvd On/After DOR: 220 Goal: Complete retirement package NLT 5 working days prior to DOR. Americas Army: The Strength of the Nation 6 CONTINUING CHALLENGES Last minute VERA/VSIP approvals Incomplete retirement application submissions Short notice retirement applications Federal Erroneous Retirement Coverage Corrections Act (FERCCA) Aging workforce

Americas Army: The Strength of the Nation 7 ON THE HORIZON Growing serviced population Phased Retirements eBATS (Benefits Automated Tracking System for employees) Americas Army: The Strength of the Nation 8 ANY QUESTIONS? Americas Army: The Strength of the Nation 9

RETIREMENT PLANNING DEPOSIT TSP REDEPOSIT FEGLI MILITARY DEPOSIT FEHB FEDVIP CSRS CSRS OFFSET LTCI FSA FERS Americas Army: The Strength of the Nation 10 RETIREMENT PLANNING Early Career 25 + years to retirement

Contribute to TSP Enroll in benefits (FEHB, FEGLI, FEDVIP, FSA) Pay civilian deposit Pay military deposit New Employee Orientation briefing https://www.abc.army.mil/NewEmployee/NewEmployeeOrientati on.htm Mid Career 10 - 24 years to retirement Adjust benefits based on life situation Review level of TSP participation & allocation between the funds Americas Army: The Strength of the Nation 11 RETIREMENT PLANNING Late Career: Less than 10 years prior to retirement:

Use calculators in EBIS to get a rough estimate of annuity Determine income needed in retirement using the Federal Ballpark E$timate calculator Adjust TSP contributions & other savings based on results from calculators Five years to retirement: Verify eligibility to continue FEHB & FEGLI into retirement Request a retirement estimate Maximize TSP contributions & other savings Americas Army: The Strength of the Nation 12 RETIREMENT PLANNING LINKS Federal Ballpark E$timate: https://www.opm.gov/retire/tools/calculators/ballpark/BallparkIntro.asp

Retirement information & services provided by OPM: http://www.opm.gov/retire/index.asp U.S. Financial Literacy Education Commission website: http://www.mymoney.gov Army Benefits CenterCivilian EBIS: https://www.abc.army.mil Americas Army: The Strength of the Nation 13 FERS-REVISED ANNUITY EMPLOYEES (FERS-RAE) New employees first hired in covered position on/after 01-01-2013 Contribute 3.1% of salary to FERS (FRAE-4.4%) Contribute to Social Security Can contribute up to IRS limit to TSP, receive agency matching of 5% if you contribute at least 5% of your salary

Automatic 1% contribution regardless of your TSP contribution rate First 3% of your contributions are matched dollar-fordollar Next 2% will be matched at 50 cents on the dollar Americas Army: The Strength of the Nation 14 FERS New employees first hired in covered position on/after 01-01-1987 Contribute 0.8% of salary to FERS Contribute to Social Security New & rehired FERS automatically contribute 3% Can contribute up to IRS limit to TSP, receive agency matching of 5% if you contribute at least 5% of your salary Automatic 1% contribution regardless of your TSP contribution rate First 3% of your contributions are matched dollarfor-dollar

Next 2% will be matched at 50 cents on the dollar Americas Army: The Strength of the Nation 15 CSRS INTERIM Employees first hired on/after 01-01-1984 & certain rehires Reduced CSRS contribution rate of 1.3% Contribute to Social Security On 01-01-1987, employees with CSRS Interim coverage changed to: CSRS Offset if you had at least 5 years of civilian service FERS if you had less than 5 years of civilian service Americas Army: The Strength of the Nation 16

CSRS COMPONENT If you have civilian service prior to your election of FERS, and The service was subject to CSRS retirement deductions, or Social Security deductions, but not both, and The total of these 2 types of service is 5 or more years, then This period of service is called a CSRS component, and that portion of your retirement annuity, or civilian deposit, etc. will be calculated using CSRS rules (If you have less than 5 years, the service is creditable under FERS rules) Americas Army: The Strength of the Nation 17 FERS FERS is a 3-tiered retirement system FERS annuity is the smallest component

TSP WILL make up the largest portion of your total retirement FERS Annuity Social Security Thrift Savings Plan Americas Army: The Strength of the Nation 18 RETIREMENT SERVICE COMPUTATION DATE (RSCD) Used to determine retirement eligibility and to calculate retirement annuity May not be the same as your Leave SCD (SCD that appears on your SF 50 & LES) Not all service that is creditable for leave is creditable for retirement Americas Army: The Strength of the Nation

19 RETIREMENT SERVICE COMPUTATION DATE (RSCD) Examples of service that is creditable for leave but not for retirement: Non-Appropriated Fund (NAF) service on a temporary appointment For retired military, campaign or combat service if retired military pay is not being waived If hired on/after 10-01-82, military service for which deposit has not been paid Americas Army: The Strength of the Nation 20 CIVILIAN DEPOSIT/ REDEPOSIT

Americas Army: The Strength of the Nation 21 WHAT IS DEPOSIT SERVICE? Any period of potentially creditable service during which retirement deductions are not withheld: Generally, non-career time such as temporary or indefinite service Also known as non-deduction service Service that is now considered Federal employment, due to a change in the law that allows credit for retirement annuity computation purposes (Peace Corps, VISTA) Amount of deposit: 1.3% of earnings + interest (3% of stipend for Peace Corps and VISTA) Interest will vary by the date the service was performed FERS with CSRS component, CSRS rules apply FERS with no CSRS component, FERS rules apply Americas Army: The Strength of the Nation

22 DEPOSIT SERVICE Non-Deduction Service prior to 01-01-1989 Deposit Made Credit for eligibility (RSCD) and Annuity Computation Deposit Not Made No credit for eligibility (RSCD) and Annuity Computation Americas Army: The Strength of the Nation 23 DEPOSIT SERVICE

Non-Deduction Service on or after 01-01-1989 DEPOSIT NOT ALLOWED No credit for Eligibility or Annuity Computation Americas Army: The Strength of the Nation 24 REFUNDED SERVICE DEFINED AS: FERS Service for which retirement contributions were refunded to you! FERS REDEPOSIT IS NOW ALLOWED! Note: FERS with CSRS component, CSRS rules apply FERS with no CSRS component, FERS rules apply Americas Army: The Strength of the Nation

25 REFUNDED SERVICE Refunded FERS Service Redeposit Made Credit for eligibility (RSCD) and Annuity Computation Redeposit Not Made Credit for eligibility (RSCD) and No Credit in Annuity Computation Americas Army: The Strength of the Nation 26 INTEREST RATES

YEAR RATE YEAR RATE YEAR RATE 2014 1.625% 2003 5% 1992

8.125% 2013 1.625% 2002 5.5% 1991 8.625% 2012 2.25% 2001

6.375% 1990 8.75% 2011 2.75% 2000 5.875% 1989 9.125% 2010 3.125%

1999 5.75% 1988 9.125% 2009 3.875% 1998 6.75% 1987 8.375%

2008 4.75% 1997 6.875% 1986 9% 2007 4.875% 1996 6.875% 1985

11.125% 2006 4.125% 1995 7% 1984 13% 2005 4.375% 1994

6.25% 1948 1984 3% 2004 3.875% 1993 7.125% Before 1948 4% Americas Army: The Strength of the Nation

27 HOW TO PAY A CIVILIAN DEPOSIT OR REDEPOSIT Complete front page of SF 3108, Application to Make Deposit or Redeposit (FERS), and send to the ABC-C. ABC-C will calculate an estimated deposit/redeposit amount and mail to OPM. OPM will notify you of final deposit/redeposit amount and payment procedures. Ensure Payment In Full notice is filed in eOPF. More information is available on the ABC-C website at https://www.abc.army.mil/retirements/CSRSDepositService.htm Americas Army: The Strength of the Nation 28 MILITARY DEPOSIT Americas Army: The Strength of the Nation

29 PRE 01-01-1957 MILITARY SERVICE No deposit required for creditable military service performed prior to 01-01-1957 It's Free!! Americas Army: The Strength of the Nation 30 CREDIT FOR POST-56 MILITARY SERVICE IN RECEIPT OF MILITARY RETIRED PAY Based on Non Combat Disability or

Length of Service Based on Combat Disability or Chapter 1223, Title 10 (Reserves) No Credit unless Military Retired Pay is waived & deposit is paid Must Pay to receive credit for Eligibility (RSCD) & Annuity Computation Americas Army: The Strength of the Nation 31 POST-56 MILITARY SERVICE

Military Service on/after 01-01-1957 Must Pay to receive credit for Eligibility (RSCD) & Annuity Computation Amount of Deposit: 3% of basic pay earned + interest (2 years interest free) (Interest will vary) Americas Army: The Strength of the Nation 32 USERRA SERVICE Title 10/Title 32 Service That Interrupts Civilian Service Deposit Made Deposit Not Made Credit for eligibility (RSCD) and Annuity

Computation No credit for eligibility (RSCD) and Annuity Computation Amount of Deposit: Lesser of the two: 3% of basic pay earned + interest (2 years interest free) or what your FERS contributions would have been for the civilian service if you had not entered into the military + interest (2 years interest free) (Interest will vary) 33 HOW TO PAY A MILITARY DEPOSIT Complete Form RI 20-97, Estimated Earnings During Military Service, and send to the appropriate branch of service (addresses are on the ABC-C website). Include copies of all of your DD 214s. Upon receipt of estimated earnings, include your DD 214, SF 3108 page 1 and SF 3108A and forward to the ABC-C. The ABC-C will calculate an estimate of the deposit owed and forward to DFAS.

DFAS will finalize the amount owed and advise you of payment options. Ensure Payment In Full notice is filed in OPF. Military deposit must be completed in full prior to separation. More information is available on the ABC-C website at https://www.abc.army.mil/retirements/CSRSPost56.htm Americas Army: The Strength of the Nation 34 RETIREMENT REQUIREMENTS Americas Army: The Strength of the Nation 35 TYPES OF RETIREMENTS Optional Retirement Voluntary Early Retirement Authority (VERA) Discontinued Service Retirement (DSR)

Military Reserve Technician (MRT) Deferred Retirement Disability Retirement Public Law 97-253 (National Guard dual status disability retirement) Americas Army: The Strength of the Nation 36 GENERAL ELIGIBILITY REQUIREMENTS Have at least 5 years of creditable civilian service with the Federal government Meet Minimum Retirement Age (MRA) Must separate from a position subject to FERS coverage Americas Army: The Strength of the Nation 37

OPTIONAL RETIREMENT Minimum Retirement Age (MRA) with 30 years service 60 years of age with 20 years service 62 years of age with 5 years service MRA with at least 10 years but not more than 30 years service: 5% reduction for each year under age 62 (permanent reduction) NOT entitled to an annuity supplement Annuity accrues the first day of following month of your retirement. Americas Army: The Strength of the Nation 38 MINIMUM RETIREMENT AGE (MRA) IF YEAR OF BIRTH IS... BEFORE 1948 1948

1949 1950 1951 1952 1953-1964 1965 1966 1967 1968 1969 1970 & AFTER THE MINIMUM RETIREMENT AGE IS... 55 55 & 2 MONTHS 55 & 4 MONTHS 55 & 6 MONTHS 55 & 8 MONTHS 55 & 10 MONTHS 56

56 & 2 MONTHS 56 & 4 MONTHS 56 & 6 MONTHS 56 & 8 MONTHS 56 & 10 MONTHS 57 Americas Army: The Strength of the Nation 39 VOLUNTARY EARLY RETIREMENT AUTHORITY (VERA) Age 50 with at least 20 or more years of service* Any age with at least 25 years of service* Agency/Installation must approve No age reduction under FERS for early retirement If you have a CSRS component, CSRS portion of annuity will be reduced 2% each full year under age 55 You will receive an annuity supplement if: You retire at or after your MRA

If not, you will receive it once you reach your MRA * Must include 5 years of creditable civilian service Americas Army: The Strength of the Nation 40 DISCONTINUED SERVICE RETIREMENT (DSR) Age 50 with at least 20 or more years of service* Any age with at least 25 years of service* Must receive a specific written notice of a proposed involuntary separation from your Agency/Installation No age reduction under FERS for early retirement If you have a CSRS component, CSRS portion of annuity will be reduced 2% each full year under age 55 Annuity starts day after separation You will receive an annuity supplement if: You retire at or after your MRA If not, you will receive it once you reach your MRA NOT eligible for VSIP or severance pay * Must include 5 years of creditable civilian service

Americas Army: The Strength of the Nation 41 Military Reserve Technician (MRT) Unique to FERS Involuntary separation is based on loss of military membership only (not for cause). Eligibility to receive the FERS annuity supplement is immediate even if not at MRA. Age and service requirements are based on date of hire as follows: 42 Military Reserve Technician (MRT) First hired before 10 February 1996 Age 50 with 25 years of creditable Federal service. Prior Title 10 active duty and/or temporary service performed prior to 1/1/1989 for which the employee completed a service deposit can be used to achieve

the 25 years of creditable Federal service. First hired on or after 10 February 1996 Age 50 with 20 years of creditable military technician service, or Any age with 25 years of creditable military technician service. **Other service creditable under FERS as well as prior Title 10 military service deposits cannot be used to achieve the minimum military technician years of43 service. MINIMUM RETIREMENT AGE (MRA + 10) POSTPONING RETIREMENT BENEFITS You can reduce or eliminate the 5% age reduction by postponing the commencing date of your MRA + 10 annuity. FEHB and FEGLI coverage may be reinstated

prospectively if at time of separation you were eligible to continue coverage into retirement. Sick leave is creditable in the computation of the annuity. Americas Army: The Strength of the Nation 44 DEFERRED RETIREMENT If you leave Federal service before meeting age and service requirements to retire: You may receive a deferred annuity at age 62 with at least 5 years of creditable service or at the Minimum Retirement Age (MRA) with at least 10 years of creditable service (5% age reduction) IF: You are not eligible for an immediate annuity within 1 month of separation; and You meet the minimum 5 years of creditable civilian service requirement at the time of separation; and You do not take a refund of retirement deductions after separating from Federal service FEHB and FEGLI will not be reinstated at the time your annuity

commences. Your application for retirement is sent directly to OPM. NOTE: FERS annuity supplement is NOT payable. Americas Army: The Strength of the Nation 45 FERS ANNUITY SUPPLEMENT An estimated amount of Social Security benefits earned during FERS service Benefit paid until age 62 to certain FERS employees who retire before age 62 and are entitled to an immediate annuity Eligibility: Has at least 1 calendar year of FERS service AND Retires with an immediate annuity At or after MRA with 30 years At age 60 with 20 years of service

At or after MRA under Early/DSR retirement provisions Under Special Provisions (i.e., FF, LEO, etc.) Individuals NOT eligible for annuity supplement: Disability Retiree MRA +10 provision Deferred Annuity Retiring at age 62 or older CSRS Employees Duration of annuity supplement: Payable through the earlier of the following dates: Last day of the month you become age 62 OR; Last day of the month before the first month

you are entitled to Social Security benefits. Americas Army: The Strength of the Nation 46 FERS ANNUITY SUPPLEMENT Supplement is tested for earnings above the Social Security exempt amount ($15,480 for 2014) Earnings include wages and self-employment income Income from severance pay (including VSIP), pensions, savings and investments are NOT subject to the earnings test. Annuity supplement will be offset by $1 for every $2 over this amount that is earned in 2014 Americas Army: The Strength of the Nation

47 RETIREMENT FORMS ** SF 3107, Application for Immediate Retirement Copy of marriage certificate, if married at time of retirement SF 3107, Schedule A (Military Service Information), Schedule B (Military Retiree Pay), Schedule C (Federal Employees Compensation Information)

SF 3107-2, Spouses Consent to Survivor Election SF 2818, Continuation of Life Insurance Coverage W-4P, Withholding Certification for Pension or Annuity Payment State Tax Forms, if applicable SF 2809, Health Benefits Registration Form DD 214, Report of Separation from Active Duty (or equivalent) Proof of payment of military deposit (OPM 1514, Military Deposit Worksheet, or equivalent) Written notice of proposed involuntary separation (DSR) https://www.abc.army.mil/Forms/RetirementForms.htm For Deferred & Postponed retirement forms, contact OPM Americas Army: The Strength of the Nation 48 UNUSED SICK LEAVE Must retire on an immediate annuity or postponed annuity. Added to length of service for computation purposes only.

Additional time computed on the basis of a 2087 hour work year. May increase survivor annuity. For individuals who have transferred to FERS with a CSRS component, only the sick leave not included in the CSRS part of the calculation will be available under FERS Americas Army: The Strength of the Nation 49 Americas Army: The Strength of the Nation 50 50 EXAMPLE: COMPUTING TOTAL SERVICE WITH UNUSED SICK LEAVE TOTAL SERVICE 2014-12-31 (DOR) -1984-03-12 (Ret-SCD)

30-09-19 Unused Sick Leave 1136 hours = + 00-06-16 30-15-35= 31-04-05 Americas Army: The Strength of the Nation 51 HIGH - 3 AVERAGE SALARY Weighted average of highest 3 years of basic pay (including locality pay/local market supplement) Must be 3 consecutive years Is usually the last 3 years Is the highest salary, not the highest grade Normally, the beginning date of the 3 year period is determined by subtracting 3 years from the date of retirement

Americas Army: The Strength of the Nation 52 ANNUITY COMPUTATION FORMULA FOR COMPUTING ANNUITY FOR VOLUNTARY RETIREMENT: High-3 avg salary X 1.0% X years and months of service High-3 avg salary X 1.1% X years and months of service if you are age 62 with 20+ years of service Americas Army: The Strength of the Nation 53 REDUCTIONS DEDUCTIONS Age Reduction (MRA +10)

Health Benefits Deposit Service for CSRS component Life Insurance Election of Survivor Benefits Redeposit Service for CSRS component Federal Income Taxes Federal Employees Dental and Vision Insurance Program (FEDVIP) Federal Long Term Care Insurance Program (FLTCIP) State Tax (if applicable)

Americas Army: The Strength of the Nation 54 SURVIVOR ELECTION OPTIONS CURRENT Spouse Survivor Annuity ---Full (50% of your annuity) FORMER Spouse Survivor Annuity ---Full (50% of your annuity)

Combination Current / Former Spouse Survivor Annuity Insurable Interest Survivor Annuity CURRENT Spouse Survivor Annuity ---Partial (25% of your annuity) FORMER Spouse Survivor Annuity ---Partial (25% of your annuity)

Self Only Annuity (No survivor benefit) Americas Army: The Strength of the Nation 55 SURVIVOR BENEFIT COST / REDUCTION Full/Max (50%) = 10% of annuity Partial (25%) = 5% of annuity Example: Maximum (50%) elected Basic Annuity = $12,000 $12,000 x 10% = - 1,200 yearly cost After Reduction = $10,800 yearly annuity Survivor will receive 50% of annuity = $6,000

Example: Partial (25%) elected Basic Annuity = $12,000 $12,000 x 05% = - 600 yearly cost After Reduction = $11,400 yearly annuity Survivor will receive 25% of annuity = $3,000 Americas Army: The Strength of the Nation 56 SURVIVOR BENEFIT PAYMENTS The survivor benefit is payable for life unless the survivor remarries before age 55. Benefits will be restored if the remarriage terminates in death, annulment or divorce. Americas Army: The Strength of the Nation 57

DISABILITY RETIREMENT Disability Unable to render useful & efficient service because of disease or injury Must be in a position covered by FERS Minimum of 18 months creditable civilian service Disability annuity IS subject to Federal tax Americas Army: The Strength of the Nation 58 DISABILITY RETIREMENT ANNUITY AMOUNT IF UNDER AGE 62 AT SEPARATION: FIRST 12 AFTER 12 MONTHS MONTHS 60% x high 3 40% x high 3

average salary average salary minus minus 100% of 60% of Social Security Social Security Benefits Benefits Disability annuity is recomputed at age 62 to an amount that represents the annuity you would have received if you had continued working until the day before your 62nd birthday and then retired under non-disability provisions.

Americas Army: The Strength of the Nation 59 DISABILITY ANNUITY AMOUNT If 62 or older or eligible for Optional Retirement, you receive an "earned annuity" based on the general FERS computation formula if you: Are 62 years old or older; OR Meet the age and service requirements for regular, unreduced immediate retirement (MRA with 30 years, age 60 with 20 years, or age 62 with 5 years) Americas Army: The Strength of the Nation 60 Special NG Disability Retirement Provision (P.L. 97-253) A NG technician may be eligible if:

Involuntarily separated due to medical disqualification Not found by OPM as meeting criteria for a regular disability retirement. Not appointed to another Federal position Not declined a reasonable job offer 61 Special NG Disability Retirement Provision (PL 97-253) **IMPORTANT NOTE for the FERS NG technician regarding the special provisions of PL 97-253 If the technician is also eligible for a Military Reserve Technician (MRT) retirement and OPM disapproves the disability application under FERS regular provisions, then the technician is NOT eligible for a disability retirement under the special provisions of PL 97-253. 62

Special NG Disability Retirement Provision (PL 97-253) Waiver of Reconsideration and Appeal Rights Technician should sign a waiver statement indicating desire to be considered for benefits under the special disability provisions of PL 97-253. Statement should have printed or typed name and social security number. If OPM determines that the NG technician is not eligible for disability retirement under regular provisions, provided the required 30-day notice had be given, the technician must be separated. 63 Special NG Disability Retirement Provision (PL 97-253) Waiver Example I am applying for a regular disability retirement under the provisions of [5 USC 8451 (if FERS)] due to my loss of military membership with the (state) Air/Army National Guard for medical

reasons. I understand the issuance and facts for considering approval for regular disability and hereby waive my rights for further reconsideration and appeals to the Office of Personnel Management (OPM) and the Merit Systems Protection Board (MSPB) should the application for regular disability be disapproved by OPM. In addition, should the application for regular disability be disapproved, I hereby apply for benefits under the special disability retirement provisions of Public Law 97-253. 64 DISABILITY RETIREMENT Not eligible for FERS annuity supplement Required to apply for Social Security benefits Submit all forms for regular retirement PLUS: SF 3112A Applicants Statement of Disability SF 3112B Supervisors Statement SF 3112C Physicians Statement SF 3112D Agency Certification of Reassignment and

Accommodation Efforts FedMER Eligibility Statement Waiver- P.L. 97-253 (If Applicable) Written Notice of Proposed Involuntary Separation (P.L. 97253) Military Discharge Orders (P.L. 97-253) 65 DEATH-IN-SERVICE If you die while still an active employee, your survivor MAY be entitled to death benefits In the event of your death, your supervisor needs to contact your servicing Human Resources (HR) Representative or Human Resources Officer (HRO) HR will contact ABC-C An ABC-C specialist will contact the survivor within 24 hours Americas Army: The Strength of the Nation 66

DEATH-IN-SERVICE Spousal Benefits: Monthly annuity (survivor benefits) payable if married to employee at least 9 months EXCEPTIONS to the 9 months of marriage requirement: Spouse is the parent of a child of the marriage, or Death was accidental Americas Army: The Strength of the Nation 67 DEATH BENEFITS Childrens Benefit(s) are payable if: The child is unmarried AND under 18, or Under age 22 if full-time student, or Any age if disabled before 18 Childrens Benefit is the same if death-in-service or death as an annuitant

Americas Army: The Strength of the Nation 68 DEATH BENEFITS Up to 3 children if a parent is living 2014 rate is $502 per month per child More than 3 children, $1,506 divided by # of children Up to 3 children if no living parent 2014 rate is $602 per month per child More than 3 children, $1,807 divided by # of children Americas Army: The Strength of the Nation 69 DESIGNATION OF BENEFICIARY Beneficiary Forms: SF 1152 (Unpaid Comp) SF 2823 (FEGLI) SF 3102 (FERS)

TSP 3 (TSP) Order of Precedence: Court Order Designation of Beneficiary Widow or Widower Children (and/or descendants of deceased children) Parents Executor or Administrator of Estate Next of Kin Americas Army: The Strength of the Nation 70 COST OF LIVING ADJUSTMENTS (COLA)

Annual rate based on rise in Consumer Price Index (CPI) Increase in CPI Amount of COLA Up to 2% Full CPI 2% - 3% 2% 3% or more

CPI 1% Effective 1 Dec each year Payable in Jan (1/12 of COLA for each month) Must be 62 or older to receive Disability annuitants and survivors receive COLA at any age The COLA for 2014 is 1.5% Americas Army: The Strength of the Nation 71

WINDFALL ELIMINATION PROVISION (WEP) If you didn't pay Social Security taxes on your government earnings and you are eligible for Social Security benefits, the formula used to figure your benefit amount may be modified, giving you a lower Social Security benefit. WEP affects Social Security benefits when any part of your Federal service after 1956 is covered under the Civil Service Retirement System (CSRS). However, Federal service where Social Security taxes are withheld (Federal Employees Retirement System or CSRS Offset) will not reduce your Social Security benefit amounts. Americas Army: The Strength of the Nation 72 WINDFALL ELIMINATION PROVISION (WEP) WEP does not apply to survivors benefits. It also

does not apply if: You are a Federal worker first hired after December 31, 1983; You were employed on December 31, 1983, by a nonprofit organization that did not withhold Social Security taxes from your pay at first, but then began withholding Social Security taxes from your pay; Your only pension is based on railroad employment; The only work you did where you did not pay Social Security taxes was before 1957; or You have 30 or more years of substantial earnings under Social Security. Americas Army: The Strength of the Nation 73 GOVERNMENT PENSION OFFSET (GPO)

If you receive a pension from a Federal, state or local government based on work where you did not pay Social Security taxes, your Social Security spouses or widows or widowers benefits may be reduced. You are exempt from the GPO if you were contributing to Social Security for your last 5 years of federal employment. Your Social Security benefits will be reduced by 2/3s of your government pension. Monthly civil service pension - $1,200 2/3s offset to Social Security - $ 800* Spouse or survivor benefit - $1,000 Final amount due - $ 200 ($1,000 $800* = $200)

http://www.socialsecurity.gov/gpo-wep/ http://www.socialsecurity.gov/gpo-wep/ Americas Army: The Strength of the Nation 74 NON-APPROPRIATED FUND (NAF) RETIREMENT PROCESSING NAF Retirement System - Contact nearest NAF office FERS Retirement Plan - Contact the ABC-C Americas Army: The Strength of the Nation 75 RETURNING TO FEDERAL EMPLOYMENT IMPORTANT!! If you are retiring and immediately being hired by NAF, transferring to other Federal employment, or being rehired as a reemployed

annuitant, you must notify the ABC-C before your retirement is processed. This should prevent erroneous payout of your lump sum annual leave. Americas Army: The Strength of the Nation 76 FEHB IN RETIREMENT Self Only Self & Family Additional Information: http://www.opm.gov/insure/health OPMCivilian Telephone: 1-888-767-6738 Soldiers Supporting Americas Soldiers

77 FEHB IN RETIREMENT Retire on an immediate annuity Be insured on the date of retirement Covered for the 5 years of service prior to retirement or since your FIRST opportunity to enroll (special rules for VERA, VSIP and DSR, see next slide) Coverage as a family member under FEHB or CHAMPUS/TRICARE counts towards 5 year requirement (employee must be enrolled in FEHB prior to retirement) 78 Americas Army: The Strength of the Nation FEHB IN RETIREMENT Pre-approved automatic waiver of 5-year requirement: Must be enrolled in FEHB on the first day of the buyout period (October 1 of the current FY) and Retire during the buyout period; and Receive a buyout (VSIP); or

Take early optional retirement (VERA) as a result of early-out authority; or Take a DSR based on involuntary separation due to 79 reduction in force Americas Army: The Strength of the Nation FEHB IN RETIREMENT Cost of FEHB is the same for retirees and active employees except that premiums are paid on a monthly basis vs. bi-weekly Same Open Season and qualifying life event (QLE) opportunities as active employees Same FEHB plans available to retirees as active employees Once you cancel FEHB coverage in retirement, you can never reenroll Retirement is not a qualifying life event for changing your FEHB enrollment At age 65, enrollment in Medicare is optional. If enrolled, it becomes your primary and your FEHB plan becomes your secondary provider. Americas Army: The Strength of the Nation

80 FEHB IN RETIREMENT Retirees can suspend FEHB for TRICARE, Medicaid (or similar state sponsored program) or Medicare Advantage (Medicare Part C) and return to FEHB coverage during Open Season or immediately upon involuntarily losing non-FEHB coverage. Retirees do not participate in Premium Conversion. Your spouse is eligible to continue FEHB coverage after your death only if you have Self and Family coverage and you elect to provide a survivor benefit at retirement. Americas Army: The Strength of the Nation 81 MEDICARE Part A (Hospitalization) No Cost Enroll at age 65 Enrollment is automatic at age 65 if you are receiving Social Security benefits

Part B (Medical) Monthly premium based on yearly adjusted gross income Part C A plan offered by a private company Part D (Drug) Monthly premium Americas Army: The Strength of the Nation 82 FEGLI IN RETIREMENT Additional Information: www.opm.gov/insure/life OPM Telephone: 1-888-767-6738 Americas Army: The Strength of the Nation 83 FEGLI IN RETIREMENT CONTINUATION INTO RETIREMENT Retire on an immediate annuity

Insured on date of retirement Enrolled in each Option and Multiple for the 5 years of service prior to retirement OR since your FIRST opportunity to enroll Election Form: SF2818 Continuation of Life Insurance Coverage Americas Army: The Strength of the Nation 84 FEGLI IN RETIREMENT BASIC LIFE OPTIONS: Basic Insurance Amount (BIA) is based on your final annual salary rounded up, plus $2,000. Ex: $51,400 = $52,000 + $2,000 = Amt of Basic Ins $54,000 Options 1. 75% reduction 2. 50% reduction Before age 65

After age 65 BIA x .3250 (per $1,000) ex: $17.55 per month BIA x .9650 (per $1,000) ex: $52.11 per month NO COST Coverage reduces 2% per mth for 37.5 mths until it reaches a final value of $13,500 BIA x .6400 (per $1,000) ex: $34.56 per month Coverage reduces 1% per mth for 50 mths until it reaches a final value of $27,000 3. NO reduction

BIA x 2.2650 (per $1,000) ex: $122.31 per month Americas Army: The Strength of the Nation BIA x 1.9400 (per $1,000) ex: $104.76 per month 85 FEGLI IN RETIREMENT OPTION A - STANDARD COVERAGE: OPTION A - Standard = $10,000 Age Group Under 35 35 thru 39 40 thru 44 45 thru 49 50 thru 54 55 thru 59 60 thru 64

65 & above Monthly Cost $0.65 $0.87 $1.30 $1.95 $3.03 $5.85 $13.00 NO COST At age 65 coverage reduces by 2% per month for 37.5 months until it reaches $2,500. Americas Army: The Strength of the Nation 86 FEGLI IN RETIREMENT OPTION B ADDITIONAL COVERAGE (1 5 MULTIPLES OF PAY):

OPTION B Ex: Annual Salary $51,400 1x Multiple elected = $52,000 Age Group Mthly Cost @ $1000 Mthly Cost Under 35 $0.043 $2.24 35 thru 39 $0.065 $3.38 40 thru 44 $0.108 $5.62 45 thru 49 $0.173 $8.99 50 thru 54 $0.282 $14.66 55 thru 59 $0.498 $25.90 60 thru 64 $1.127 $58.60 65 thru 69 $1.343 $69.84 70 thru 74 $2.470 $128.44

75 thru 79 $3.900 $202.80 80 & Above $5.200 $270.40 FULL Reduction: At age 65, no cost & coverage reduces by 2% per month for 50 months at which time coverage will end. NO Reduction: Coverage and premium will continue. 87 Americas Army: The Strength of the Nation FEGLI IN RETIREMENT OPTION C FAMILY COVERAGE (1 5 MULTIPLES): OPTION C Spouse = $5,000 (1x Multiple) / Each Child = $2,500 (1x Multiple) Age Group Mthly Cost per Multiple Mthly Cost (1x) Under 35 $0.48 $0.48 35 thru 39

$0.63 $0.63 40 thru 44 $0.91 $0.91 45 thru 49 $1.37 $1.37 50 thru 54 $2.04 $2.04 55 thru 59 $3.29 $3.29 60 thru 64 $5.85 $5.85 65 thru 69 $6.80 $6.80 70 thru 74

$7.80 $7.80 75 thru 79 $10.40 $10.40 80 & Above $14.30 $14.30 FULL REDUCTION: At age 65, no cost & coverage reduces by 2% per month for 50 months at which time coverage ends NO REDUCTION: Coverage & premium continue Americas Army: The Strength of the Nation 88 TSP IN RETIREMENT Thrift Savings Plan Savings Thrift Telephone: 1-877-968-3778 TDD: 1-877-847-4385

Monday through Friday 7:00 a.m. 9:00 p.m. ET Plan Mailing Address: Post Office Box 385021 Birmingham, AL 35238 http://www.tsp.gov Americas Army: The Strength of the Nation 89 THRIFT SAVINGS PLAN (TSP) Provides a choice of tax treatment for contributions: Traditional (pre-tax) contributions and tax deferred investment earnings and Roth (after-tax) contributions with tax-free earnings at retirement.

Provides the opportunity to increase your retirement income You must be in a position subject to retirement deductions to contribute TSP offers two approaches to investing your money: L Funds are Lifecycle Funds invested in a mix of stocks, bonds, & Government securities Individual FundsAmericas Army: Nation are the G,TheF,Strength C, S,ofI the funds 90 TSP FUNDS Government Securities Investment (G) Fund

Invested in short-term U.S. Treasury securities Interest income without risk of loss of principal Payment of principal & interest is guaranteed Low risk 10-year annual return: 3.61% Fixed Income Index Investment (F) Fund Government, corporate & mortgage-backed bonds Invested in bond index fund that tracks Barclays Capital U.S. Aggregate bond index Offers opportunity to earn rates of return that exceed money market fund rates over the long term Low to moderate risk 10-year annual return: 5.25% Americas Army: The Strength of the Nation

91 TSP FUNDS Common Stock Index Investment (C) Fund Stocks of large & medium-sized US companies Invested in stock index fund that tracks the Standard & Poors (S&P) 500 stock index Potential to earn high investment returns over the long term Moderate risk 10-year annual return: 7.12% Small Capitalization Stock Index (S) Fund Stocks of small to medium-sized US companies Invested in stock index fund that tracks Dow Jones Wilshire 4500 Completion (DJW 4500) index Earn potentially higher investment returns over the long term than in the C Fund Moderate to high risk (more than the C Fund) 10-year annual return: 10.79%

Americas Army: The Strength of the Nation 92 TSP FUNDS International Stock Index Investment (I) Fund International stocks of 21 developed countries Invested in stock index fund that tracks the Morgan Stanley Capital International EAFE (Europe, Australasia, Far East) index Potential to earn high investment returns over the long term Moderate to high risk 10-year annual return: 8.39% Lifecycle (L) Fund Each L Fund is invested in the individual TSP funds (G, F, C, S, I), using investment allocations that are tailored to different time horizons

Objective is to provide the highest possible rate of return for the amount of risk taken Subject to the risks of the individual funds Expected returns will be approximately equal to weighted average of the G, F, C, S, I Funds returns Americas Army: The Strength of the Nation 93 LIFECYCLE FUNDS FUND TIME HORIZON GROWTH RISK L Income

Today and the near future Low Low L 2020 2015 through 2024 Moderate Moderate L 2030 2025 through 2034 Moderate to High

High L 2040 2035 through 2044 High High L 2050 2045 or later High High Americas Army: The Strength of the Nation

94 LIFECYCLE FUNDS FUND ALLOCATIONS L FUND G Fund F Fund C Fund S Fund I Fund L Income 74% 6% 12%

3% 5% L 2020 37.40% 7.35% 29.45% 9.40% 16.40% L 2030 23.15%

8.35% 35.40% 13.40% 19.70% L 2040 12.15% 9.35% 39.40% 16.70% 22.40% L 2050

3.83% 7.67% 43.40% 18.70% 26.40% Americas Army: The Strength of the Nation 95 TSP PROJECTION Amount of Annual TSP Contribution # of Years to

Contribute Rate of Return (based on 10-year summary of annual returns for C Fund) Projected TSP Account Balance (15% of $50,000) $7,500 10 7% $144,463 (15% of $50,000)

$7,500 20 7% $434,786 (15% of $50,000) $7,500 30 7% $1,018,236 (10% of $50,000) $5,000 30

7% $763,677 (5% of $50,000) $2,500 30 7% $509,118 Americas Army: The Strength of the Nation 96 TSP IN RETIREMENT WITHDRAWAL OPTIONS: Automatic cashout (accounts less than $200)

Leave money in the TSP Age-based withdrawal Full Withdrawal Single payment Monthly payments Life annuity Mixed Withdrawal Must begin to receive TSP funds by April 1 of the year following the year you are 70 HOW TO APPLY: TSP-70 FORM - Withdrawal Request Americas Army: The Strength of the Nation 97

TSP MAKE-UP CONTRIBUTIONS You are eligible to make-up missed TSP contributions if you meet all of the following conditions: You were placed in LWOP-US or separated from Federal civilian service to perform military service. You were released from military service on or after 08-021990. You were reemployed in or restored to a position covered by CSRS or FERS. REQUEST MUST BE SUBMITTED WITHIN 60 DAYS OF RETURN TO DUTY. 98 TSP MAKE-UP CONTRIBUTIONS If you contributed to TSP during your period of military service: The amount you can make-up will be reduced by the amount you contributed to your military TSP account. Your make-up contributions will not count against the current year's IRS limit.

99 TSP MAKE-UP CONTRIBUTIONS You will receive agency matching contributions as you make-up your employee contributions. If you contributed to your military TSP account, you are entitled to agency matching contributions to be made to your civilian TSP account, based on your contributions from your military basic pay received while on active duty. You will receive agency automatic 1% contributions for the entire period you were on military duty, regardless of whether or not you make-up employee contributions. 100 TSP MAKE-UP CONTRIBUTIONS You will need to submit: Employee Request for TSP Make-up Contributions,

DD 214(s) or military orders, Military Leave and Earnings Statements (LESs) to verify your TSP contributions while on active duty. Provide your request form and documentation to your Local Human Resource Office. For more information on TSPM, please see the TSP Fact Sheet, TSP Benefits that Apply to Members of the Military Who Return to Federal Civilian Service, on the TSP website. http://www.tsp.gov 101 TSP CATCH-UP CONTRIBUTIONS Open to TSP participants age 50 or older Not eligible for agency automatic 1% matching contribution Limited to $5,500 for year 2014 Must be contributing IRS yearly maximum, $17,500 for 2014 Must make new election each year Elections made via EBIS at https://www.abc.army.mil Americas Army: The Strength of the Nation

102 LONG TERM CARE INSURANCE (LTCI) Want to talk with a Certified Long Term Care Insurance Consultant? Tel: 1-800-LTC-FEDS (1-800-582-3337) TTY: 1-800-843-3557 Mon - Fri 8 a.m. - 8 p.m. ET Sat 9 a.m. - 5 p.m. ET Closed Sun and Federal holidays. http://www.ltcfeds.com Americas Army: The Strength of the Nation 103 FLEXIBLE SPENDING ACCOUNTS (FSA) To receive more information regarding FSAs, please

contact a SHPS counselor. Retirees are not eligible to continue FSA. Email: [email protected] Telephone: 1-877-FSAFEDS (1-877-372-3337) TTY: 1-800-952-0450 Mon-Fri 9 a.m. 9 p.m. ET Closed Weekends and Holidays http://www.fsafeds.com Americas Army: The Strength of the Nation 104 FEDERAL EMPLOYEES DENTAL & VISION INSURANCE PROGRAM (FEDVIP) Can enroll in dental, vision, or both Self Only Self & One Self & Family Dental Benefits

Diagnostic Preventative Emergency Care Restorative Oral/Maxillofacial Surgery Endodontics Periodontics Prosthodontics Orthodontics Vision Benefits Diagnostic Services Preventative Services Eyewear Glasses Contacts ENROLL AT https://www.benefeds.com 1-877-888-3337 TTY 1-877-889-5680

Americas Army: The Strength of the Nation 105 RETIREMENT ESTIMATE Request your retirement estimate no more than 5 years prior to your retirement eligibility date ABC-C will compute one retirement estimate per year Retirement estimate includes: Verification of military & civilian service documented in your Official Personnel Folder (eOPF) Calculation of amount of civilian deposit and/or redeposit owed Impact of unpaid civilian deposit/redeposit & military deposit on your retirement annuity Confirmation ofAmericas your Army: current FEHB &Nation FEGLI enrollment &

The Strength of the your eligibility to continue these benefits into retirement 106 ABC-C RETIREMENT PROCESS 5 years prior to retirement eligibility: Contact the ABC-C for retirement estimate & information Call ABC-C with questions on retirement estimate 180 days prior to retirement: Download forms from ABC-C website Call ABC-C for help with the retirement forms 90-120 days prior to retirement: Mail original retirement forms to ABC-C Maintain personal copy Provide good retirement address & contact information Americas Army: The Strength of the Nation

107 ABC-C RETIREMENT PROCESS 30-60 days prior to retirement: Retirement package assigned to counselor ABC-C retirement counselor: Verifies required forms and documents Processes retirement package Provides final retirement counseling Retirement package is forwarded to DFAS Americas Army: The Strength of the Nation 108 RETIREMENT PROCESS

2 - 4 weeks after retirement: Final paycheck is received Lump sum annual leave is paid VSIP payments if applicable 6 - 8 weeks after retirement: Receive 1st INTERIM payment Receive letter from OPM with CSA number Office of Personnel Management Retirement Operations Center P.O. Box 45 Boyers, PA 16017 Social Security Administration www.ssa.gov www.medicare.gov Tel: 1-800-772-1213 www.opm.gov email: [email protected] Tel: 1-888-767-6738

IRS Publication 721 www.irs.gov Tel: 1-800-Tax-Form Americas Army: The Strength of the Nation 109 CHANGING or WITHDRAWING YOUR RETIREMENT Your request to change your date of retirement or to withdraw your retirement application must be in writing and Must be signed May be faxed to ABC-C If you are receiving a VERA and/or VSIP, your request should be signed by your CPAC/HR Professional Submit the request to ABC-C as soon as you have made a decision Changing or withdrawing your retirement MAY cause

problems with your paycheck Americas Army: The Strength of the Nation 110 FOR ADDITIONAL RETIREMENT INFORMATION CONTACT THE ABC-C Toll Free 1-877-276-9287 Counselors are available from 6 am 6 pm CT Website: https://www.abc.army.mil Mailing Address: 301 Marshall Avenue, Ft. Riley, KS 66442-5004 Americas Army: The Strength of the Nation 111 ABC-C TELEPHONE CHART Army Benefits Center - Civilian

1-877-276-9287 Select: 1= Army Civilian 2= DCMA Civilian 3= National Guard 4= Non-Appropriated Fund or Uniformed Service Member 112 ANY QUESTIONS? Americas Army: The Strength of the Nation 113

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