Question 1

How is the FERS pension calculated?

Accepted Answer

The FERS pension uses your years of creditable service and your high-3 average salary. The multiplier is 1% per year (or 1.1% if you retire at age 62+ with at least 20 years). Example: 30 years × 1% × $90,000 high-3 = $27,000/year. Law Enforcement Officers, Firefighters, and Air Traffic Controllers use a 1.7% multiplier for the first 20 years.

Question 2

What are the TSP contribution limits for 2026?

Accepted Answer

For 2026, the TSP elective deferral limit is $24,500. Employees 50+ can add an $8,000 catch-up contribution ($32,500 total). Federal employees ages 60–63 qualify for a super catch-up of $11,250 instead of $8,000, for a total of $35,750.

Question 3

What is the FERS Supplement and who qualifies?

Accepted Answer

The FERS Supplement (Special Retirement Supplement) approximates your Social Security benefit for your FERS service years. It is paid to FERS retirees who retire before age 62 under an immediate annuity — bridging the gap until Social Security is available. You qualify if you retire at your MRA with 30 years of service, at 60 with 20 years, or at 62+ (no supplement needed since SS is available).

Question 4

When should a federal employee claim Social Security?

Accepted Answer

Federal employees under FERS earn Social Security credits throughout their career. You can claim at 62 (reduced benefit), at your full retirement age of 66–67 (depending on birth year), or delay until 70 for maximum benefit — roughly 76% higher than at 62. FERS retirees often have FERS Supplement income until 62, making delayed Social Security claiming more advantageous.

Question 5

What is the Survivor Benefit Plan (SBP)?

Accepted Answer

The Survivor Benefit Plan (SBP) allows FERS/CSRS retirees to leave their surviving spouse 55% of their designated pension base upon death. The premium is 6.5% of the base amount, deducted from your monthly pension. The decision is made at retirement and is largely permanent. The SBP breakeven point — when total survivor benefits exceed total premiums paid — is typically around 8–10 years of surviving.

Question 6

Can federal employees keep FEHB health insurance in retirement?

Accepted Answer

Yes, if you meet the 5-year rule: you must have been enrolled in FEHB for the 5 continuous years immediately preceding retirement. The government continues to pay about 72% of the premium in retirement. At 65, most retirees enroll in Medicare Part A (premium-free) and optionally Part B. Most FEHB plans waive deductibles when Medicare is primary, making the combination very cost-effective.

Question 7

What is the One Big Beautiful Bill and how does it affect federal employees?

Accepted Answer

The One Big Beautiful Bill (OBBBA, 2025) introduced several new tax deductions for 2026: a deduction for overtime pay (up to $12,500/year), a deduction for tipped wages, and a deduction for auto loan interest (up to $10,000/year). These deductions phase out at higher income levels. Federal employees earning overtime can see meaningful tax savings. High-3 Retirement Planner automatically applies these deductions to your 2026 tax estimate.

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