Working for the U.S. government is rewarding even in retirement. With first-class benefits, here’s what every federal retiree needs to know about the Federal Employees Retirement System or FERS:
Image source: Expertbeacon.com
The Basic Benefit Plan
A small amount from the paycheck goes to this plan, and the individual’s agency pays for 1 percent annually. To receive retirement benefits from this, an employee must serve for at least five years. Some of the basic benefits also cover an employee’s spouse and children in case of long-term disability and death.
Similar to the Basic Benefit Plan, an employee pays for social security every period. But unlike the earlier plan, an employee can take this to the next employer be it private or public. Having social security includes benefits in case of disability and protection for survivors. This is a continuing benefit as it supports disabled, retired, or unemployed individuals.
Thrift Savings Plan
Just like the Basic Benefit Plan, the agency pays 1 percent of the share for each employee. Up to 5 percent of the salary may be assigned for the individual contribution. Even if the person decides to leave federal service, he or she can still gain from this plan. This could be seen as the equivalent for a 401(k) in private companies.
These three are the basic benefits federal employees are entitled to. Federal employees serve the country in countless ways, and they deserve to be compensated by the government even when they’re no longer in service.
Image source: Lipscomblaw.net