Countdown to COLA

QHow do I know if I am on track for contributing the maximum amount allowable into the TSP?

AThe TSP has several calculators on their website at www.tsp.gov/ calculators/. The “How much can I contribute?” calculator can help you determine the specific dollar amount to be deducted each pay period to maximize your contributions and ensure that you do not miss out on government matching contributions.

The annual contribution limit does not include matching contributions that you receive from your agency or service, so you’re saving more. To compute how much you can contribute for the remainder of the year, subtract the year-to-date amount that you’ve contributed from the annual limitation (be sure to include the amount that you will contribute during the pay period(s) before the change could take place). Then, divide the remaining amount of contributions by the number of remaining pay periods to determine your new contribution amount for each pay period going forward.

Most agencies require that you elect changes to your TSP contributions on your agency online system, such as Employee Express, myPay, Direct Access, EBIS, LiteBlue, and NFC EPP.

QI want to contribute more to the TSP, but I’m not sure how it would impact my net paycheck amount. Is there an easy way to determine the impact of increasing my contributions?

AThe TSP has a calculator that helps you estimate what your take-home pay is based on the amount you want to contribute to the TSP. It will help to have a current pay statement when using this calculator: www.tsp.gov/calculators/ paycheck-estimator/#top.

QAs a federal employee, I have been receiving emails from my agency informing me of a “personnel action.” Should I do anything when I receive these notices?

AYes. Documents such as SF-50 - “Notification of Personnel Action” statements in your electronic Official Personnel Folder (eOPF) serve as an official record of your federal employment. Your eOPF should include documentation of all your civilian service as well as any military service. There are a few agencies that maintain your Official Personnel Folder in an actual cardboard folder; however, in most cases these records are maintained electronically. A few agencies, such as the CIA or TVA as well as congressional staff, use a “transcript of service.” Be sure to keep a personal record of any changes in your work schedule and retirement system and the beginning/ending dates of your federal appointments.

Employees should review their eOPF to ensure it contains all your civilian federal service. Notify your human resources office if anything is missing—the staff can request missing records from your prior agency or from the National Personnel Records Center. This process can take months, so it is best to start early. Make sure that a copy of DD 214 - “Certificate of Release or Discharge From Active Duty,” is included in your eOPF for each period of military service. These records are used to determine your retirement eligibility and the computation of your CSRS or FERS retirement benefit. The service computation date (SCD) on

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.96 percent in February 2022. To calculate the 2023 cost-of-living adjustment (COLA), the 2022 thirdquarter indices will % Change be averaged and from 268.421 compared with the OCTOBER 2021 271.552 0.92 1.17 2021 third-quarter NOVEMBER 273.042 0.55 1.72 average of 268.421. DECEMBER 273.925 0.32 2.05 The percentage increase determines the JANUARY 2022 276.296 0.87 2.93 COLA. February’s index, FEBRUARY 278.943 0.96 3.92 278.943 is up 3.92 MARCH percent from the base. APRIL The CPI represents MAY purchases of food and beverages, housing, apparel, JUNE transportation, medical care, JULY recreation, education and communication, and other AUGUST goods and services. SEPTEMBER

form SF-50 is used to determine your annual leave category of four, six or eight hours of annual leave accrual.

QHow do I apply for my retirement benefits?

AYou will need to complete the “Application for Immediate Retirement” Form. • CSRS: SF 2801 form www. opm.gov/forms/pdf_fill/ sf2801.pdf and pamphlet www. opm.gov/retirement-services/ publications-forms/pamphlets/ sf2801a.pdf. • FERS: SF 3107 form www. opm.gov/forms/pdf_fill/ sf3107.pdf and pamphlet www. opm.gov/retirement-services/ publications-forms/pamphlets/ sf3113.pdf.

Be sure to note the need to submit additional documentation—such as a copy of your marriage certificate, certified copy of court order or divorce decree, records of military service—as indicated on the form. Some agencies may require you to use the GRB Platform or FedHR Navigator to complete the forms. You will submit them to your benefits/retirement specialist in your agency human resources office or shared service center. Typically, the specialist will ask for your retirement application 60 to 90 days prior to separation. Some larger agencies may ask for 120 days’ notice, especially if you retire at the end of the year, because of the anticipated volume and the time it takes for your agency to prepare its part of the application process.

If you have Federal Employees’ Group Life Insurance (FEGLI), you will also need to complete SF 2818 - “Continuation of Life Insurance Coverage,” to indicate how much FEGLI you wish to maintain in retirement: www.opm.gov/forms/ pdf_fill/sf2818.

The first step in planning for retirement is to determine when you are eligible to retire. Equally important is determining when you can afford to retire. Your HR/ shared service center can prepare a retirement estimate for you. In addition, you may use calculators on www.tsp.gov and www.ssa. gov to determine monthly benefits available from the TSP and Social Security. The NARFE Federal Benefits Institute has many webinars that help members prepare to apply for retirement. To view them, visit www.narfe. org/federal-benefits-institute/ narfe-webinars/webinar-archive/.

QI retired on December 31, 2020, at age 58. Since I am too young to receive Social Security retirement benefits, I have been receiving the FERS annuity supplement. I became reemployed in the private sector after I retired. I was expecting the Office of Personnel Management (OPM) to stop paying the FERS supplement, but so far, they have paid the full amount every month. I don’t want to end up in a situation where I am indebted. Can you tell me how the earnings limit for the FERS supplement works?

AOPM will mail the Annuity Supplement Earnings Report survey to you in the spring, usually in early May, for you to report any earnings over the annual earnings limit for the prior year. The earnings limit was $18,960 for 2021 ($19,560 for 2022). The supplement will be reduced $1.00 for every $2.00 of earned income that is over the annual earnings limit. Any necessary reduction to your FERS supplement payment will be reflected in your August check (as that is the payment for the month of July).

Example: If your 2021 post-retirement earnings were $25,000, that would be $6,040 over the 2021 annual limit of $18,960. Divide the excess earnings amount by two ($6,040/2 = $3,020) to determine the reduction to your FERS supplement. In this case, the reduction is $3,020/ year or $251.66/month. This reduction will be reflected in your July 2022 retirement payment (payable on August 1). If you continue to receive the unreduced payment, notify OPM and check that the agency received your completed earnings survey.

OPM counts earnings as wages, salaries and net income from selfemployment. You will not need to report retirement income, TSP payments, the lump sum annual leave payment, investment income and other unearned income.

QA friend of mine married after he retired from federal service and added his spouse to his health insurance. He recently passed away, and his surviving spouse finds herself without the benefit of FEHB. How can that happen?

AI am sorry to learn of your friend’s passing. Unfortunately, she would only be eligible to continue FEHB coverage after his death if he elected a survivor benefit within two years of the marriage. It is important to notify OPM of life events such as marriage, death

and divorce, which can impact the value of your CSRS or FERS retirement benefit.

QI elected to continue FEGLI, including Option B, when I retired. The premiums have gone up, and I no longer wish to continue this coverage. Can I now reduce some or all of the multiples?

AThe FEGLI Option B (multiples of your salary) premiums increase every five years until you reach age 80 if you elected the “No Reduction” option for any of the multiples of Option B (and Option C, Family coverage). You can reduce your premiums by reducing your coverage. There is no form to use if you are retired; simply write and sign a letter stating clearly the reduction or cancellation you want to make. Be sure to include your signature, CSA number or Social Security number, and your phone number. Send the letter to:

Retirement Operations Center

U. S. Office of Personnel

Management

Post Office Box 45

Boyers, PA 16017-0045

OPM may take several months to process your request; however, it will be retroactive to the date of your election. Any reduction or cancellation of coverage after you retire is permanent.

QThe Question-andAnswer column of NARFE Magazine is great. It answers questions I did not know I should have asked. Where can I find past issues? A Thank you. NARFE Magazine has a wide audience among federal employees and retirees. The complexity of federal insurance and retirement options generates countless questions. NARFE members can find past issues of the magazine archived on the NARFE website.

Log into www.narfe.org, place your mouse on top of “For Members” and click on “NARFE Magazine Issues” from the dropdown menu.

To obtain an answer to a federal benefits question, NARFE members should call 800-456-8410 and select option 2 for the Federal Benefits Institute; send the question by postal mail to NARFE Headquarters, ATTN: Federal Benefits; or submit it by email to fedbenefits@narfe.org.

—Presented by Mark Keen

—Presented by Tammy Flanagan

—Presented by Tammy Flanagan

NARFE FEDERAL BENEFITS INSTITUTE

Questions? Members can call 800-456-8410 x2 or email NARFE’s federal benefits specialists for one-on-one help fedbenefits@narfe.org. Not a member? Join NARFE today at NARFE.org/Join.