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John grobe
I suspect that most current federal employees are, or soon will be, “fully vaccinated” against COVID-19. As defined by the CDC, you are considered fully vaccinated two weeks after your last dose of vaccine (i.e. two weeks after your second Pfizer and Moderna injection, or after your single Johnson & Johnson injection). Still, I’m sure there are federal employees who don’t and won’t get vaccinated for COVID-19.
There are procedures for individuals to receive a vaccine exemption, but not everyone who refuses vaccination will be eligible for an exemption. In the United States, unlike the EU, having recovered from COVID and having enough antibodies to be considered to have natural immunity is not considered a reason not to have to be done. vaccinate.
If you have the choice between getting vaccinated against COVID or losing your job, what would you do. This is a moot point for most readers of this article, as they are fully vaccinated. But this is a serious question for those who are not vaccinated and are not planning to be vaccinated. This article will not discuss or comment on the reasons for getting vaccinated (or not). Instead, it will look at what will happen to your federal benefits if you choose not to receive the COVID vaccine.
Don’t stop reading if you are already fully vaccinated! What we are discussing here will apply to anyone who leaves federal service for whatever reason (e.g. winning the lotto, having the boss of hell, etc.).
If you are already eligible for retirement, you can simply retire. You will start to receive your FERS pension, will be able to withdraw from the TSP and, if you are old enough, will be able to start collecting Social Security. Whether the amount you receive will be enough is another question. If your plan called for you to work another five years to retire at the income level you want, you’ll have to live on less if you leave now.
If you are not currently eligible for retirement, your choices are more difficult. If you have at least five years of civilian service and you leave your FERS contributions on deposit with the Office of Personnel Management (OPM), you will be entitled to a “deferred pension†at a later date. The time you will be entitled will be based on the number of years of service you had at the time of your departure and your age at the time of the request for deferred retirement. The criteria for an unreduced deferred retirement are listed below.
• 62 years and five years or more of service.
• 60 years and twenty years or more of service.
• Your minimum retirement age (ARM) and at least thirty years of service. For most current FERS employees, your MRA will be 56, 57, or middle age.
You are entitled to a deferred retirement reduced to your MRA with ten years of service or more, but the pension will be reduced by 5% per year for each year you are under 62. If your MRA was 57, your reduction would be 25%.
No person who takes a deferred retirement is entitled to the retirement pension supplement (RAS).
No discussion of federal retirement would be complete if it weren’t for confounding factors to add. If you are your MRA and have 10 or more years of retirement, you are eligible to retire with an immediate reduced annuity. The reduction is 5% per year for each year that you are under 62 and you are not entitled to the SAR.
What will you get from Social Security if you leave before you qualify for retirement? In all situations, except in a few, the answer is nothing. You have to wait 62 years to be eligible for Social Security.
Because this is a savings plan newsletter, I’d better say something about it. You will have a lot of choice with your TSP. You do not have to withdraw your contributions and have the option of leaving them in the TSP. You will still have the same ability as an employee to make inter-fund transfers. If you find work elsewhere, you could transfer the TSP to a later employer’s tax-deferred pension plan. And you can still convert it to an Individual Retirement Plan (IRA). If you choose the transfer / rollover option, make sure it is a direct transfer (directly from the TSP to the new plan / IRA) to avoid any holdback.
If you leave federal service before the year you turn 55 (50 for special category employees), any money you withdraw from the TSP before you reach age 59 and a half will be subject to an early withdrawal penalty of 10%. in addition to taxes. There is an exception to the penalty if you take payments based on life expectancy for the longer of two, five years, or until you reach age 59 and a half. With an IRA, regardless of your age at the time of separation, you will be subject to the penalty for anything you buy before 59½ (the same exception based on life expectancy will apply to the IRA).
There is a lot to think about if you are considering leaving the federal public service for any reason, let alone because of a vaccination warrant. Make sure you watch before you jump.
Federal benefits and retirement dates
TSP: don’t burn it, but don’t be afraid to spend it
Don’t fumble your retreat on the goal line
OPF: Adjust your personal file for maximum benefits
IRS and Social Security take the stress out of planning to spend your TSP, IRA
Lessons Learned Increase TSP Balance Beyond $ 1 Million
FERS retirement package: FERS 2021 guide and TSP manual
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