Thrift Savings Plan Guidance for Federal Furlough

Thrift Savings Plan Guidance for Federal Furlough

You all know GubMints is a big fan of the TSP.  There was lots of TSP info that got buried in the news cycle last week-  Some good, some not so good.  The not-so-good is that it appears TSP is preparing to duplicate some of the functions of the Census Bureau.

TSP released results of a 4-Year study of Participant Behavior and Demographics.

Here are the key findings of the 2006-2010 TSP study: Continue reading

Military Service Credit Deposit for Active Duty Campaigns


Military Service Credit Deposit for Active Duty Campaigns

Are you Retired from Active Duty (drawing a pension) and have one of these? Then it’s time to earn your Military Service Credit Deposit PhD!

Are you a Federal Employee drawing retired pay from Active Duty Military service? Think there is no way to to receive additional FERS retirement credit for your Active Duty Military service (Military Service Credit), since you are already drawing Active Duty retired pay? Think again- there is a path to have your cake and eat it, too.

 

 

 

 

Why should you do this?

First, you can obtain additional Fed ‘seniority’ credit for accruing Annual Leave.  Annual Leave is valuable because:

(a) It’s paid vacation time and

(b) Upon retiring or resigning from federal service you can sell Annual Leave back “one for one” and get paid for each unused Annual Leave hour at your hourly rate. Continue reading

Confirmation of FERS Military Service Credit Deposit

(Post updated 3/29/2013 based on comments from GubMints reader Brad- see Comments)

I’ve received many direct and search inquiries regarding how to perform a Military Service Credit Deposit- So with much fanfare, here is the

GubMints Comprehensive Military Service Credit Deposit Guide

Note:  This entire guide assumes:
1) You are covered under FERS, not CSRS’ and
2) All of your Military Service took place after 1956.
(both reasonable assumptions).

If you go to the OPM website, here’s the terse guidance  they provide on how to perform a Military Service Credit Deposit:

FERS Military Service Credit Deposit
 
Military Service Credit for Military Service performed after 1956-
To receive FERS credit for military service performed after 1956, you must pay a deposit.   The amount of the deposit is:
 
Dates of Service                   Amount of Deposit Due
Through 12/31/98                     3% of military basic pay
1/1/99 through 12/31/99  3.25% of military basic pay
1/1/00 through 12/31/00 3.4% of military basic pay
1/1/01 to the present            3% of military basic pay
 
You must make the deposit payment for your post-1956 military service before you stop working for the government. It is paid to your employing agency.  You should ask your local servicing personnel center for help in determining whether to make this payment.  They can provide personalized assistance because they have your employment records.

Sounds pretty simple, doesn’t it?

Well, there’s more to it than that.   Here’s the Gouge / Dirty Purples / Poop Sheet on Military Service Credit Deposit:

Continue reading