Federal Employee Retirement Benefit Advisory and Wealth Management Services with F.N.B.

The Federal Employees Retirement System (FERS) is a retirement plan for U.S. federal civilian employees, established in 1986. It consists of three main components:

1. 1. FERS Pension: This is a defined benefit plan where both you and your employing agency contribute. Upon retirement, you receive monthly annuity payments for life.
2. 2. Social Security: You pay into Social Security through payroll deductions, and it provides benefits based on your earnings history.
3. 3. Thrift Savings Plan (TSP): This is a defined contribution plan similar to a 401(k). Your employing agency contributes 1% of your basic pay, and you can make additional contributions, which your agency matches up to a certain limit.

The Federal Employees Retirement System (FERS) determines eligibility for retirement benefits based on age and years of creditable service.

Immediate Retirement
You qualify if you meet one of the following sets of age and service requirements:

1. Age 62 with at least 5 years of service
2. Age 60 with at least 20 years of service
3. Minimum Retirement Age (MRA) of 55-57, depending on birth year, with at least 30 years of service
4. MRA with at least 10 years of service (with a 5% reduction in benefits per year under age 62)

1. 1. Leave the TSP Account as is.
   You can leave your Thrift Saings Plan (TSP) account in the plan, even if you're no longer employed by the federal government, Your account will remain invested and you won't have to take any action. You can't make new contributions and, if your balance is under $200, the TSP may automatically close your account and send you a check.
2. 2. Transfer Your TSP to an Individual Retirement Account (IRA).
   Our FNB Wealth Management team can help you roll over your TSP balance into an IRA, which may offer a wider range of investment options than the TSP's limited fund choices.
3. 3. Transfer Your TSP to a New Employer's 401(k) Plan.
   If your new employer offers a 401(k) plan, you may be able to roll over your TSP into it, consolidating your retirement accounts.
4. 4. Withdraw the Funds.
   You can take a full or partial distribution from your TSP account, either in the form of a lump sum or periodic payments. This option may incur taxes and possibly early withdrawal penalties (if you're under age 59.5).
5. 5. Convert to a Roth IRA (Roth Option for TSP Funds).
   If you qualify, you can convert your traditional TSP balance to a Roth IRA, which allows for tax-free growth and tax-free withdrawals in retirement.

To apply for a deferred Federal Employees Retirement System (FERS) benefit, follow these steps:

1. 1. Eligibility: Ensure you meet the eligibility criteria. You must have at least five years of creditable service and be separated from federal service before reaching retirement age.
2. 2. Form RI 92-19: Complete the Application for Deferred or Postponed Retirement (Form RI 92-19). This form is essential for initiating your deferred retirement benefits and can be obtained from your employing agency or from the Office of Personnel Management (OPM) website.
3. 3. Timing: Submit your application to your employing agency approximately 60 days before you want your benefits to begin.
4. 4. Submission: Provide your completed application to your employing agency and they will forward it to OPM. Ensure all required information is complete and accurate to avoid delays in processing.
5. 5. Follow-Up: After submitting your application to your employing agency, monitor your mail and email for any communications from OPM regarding the status of your application.

By following these steps, you can successfully apply for your deferred FERS retirement benefits and ensure a smooth transition to receiving your annuity payments.

How do I manage my Federal Employee Retirement System (FERS) benefits after retirement, follow these steps:

1. 1. Monitor Your Annuity Payments: Regularly check your monthly annuity payments to ensure they are accurate and on time. Report any discrepancies to the Office of Personnel Management (OPM) immediately.
2. 2. Update Personal Information: Keep your contact information, including address and phone number, up to date with OPM. This ensures that you will receive all important communications regarding your benefits.
3. 3. Health Insurance: Review your Federal Employees Health Benefits (FEHB) coverage annually during Open Season (November - December). Make any necessary changes to ensure your health insurance meets your needs.
4. 4. Survivor Benefits: If you have elected survivor benefits, ensure your designated beneficiaries are aware of the process to claim these benefits. Update beneficiary information as needed.
5. 5. Accessing TSP Funds: Manage your Thrift Savings Plan (TSP) funds by reviewing your investment choices and making withdrawals as needed. Consider consulting the FNB Wealth Management team to advise on how to optimize your TSP withdrawals.

By following these steps, you can effectively manage your FERS benefits and ensure a smooth retirement.