Completing your retirement paperwork may only take a few hours, but the decisions behind it deserve much more time. A little preparation before you file can help you avoid mistakes that are difficult, and sometimes impossible, to correct later.
Here are five questions every federal employee should answer before submitting a retirement application.
1. Are your retirement calculations based on accurate records?
Your pension is only as accurate as the information used to calculate it. Before retiring, review your service computation date, verify your creditable service, and confirm your High-3 average salary. Even small errors can affect your monthly annuity for the rest of your retirement, so it’s worth reviewing your official retirement estimate with your agency’s HR office before moving forward.
2. Have you fully considered your survivor benefit election?
Your survivor annuity election affects more than just the amount of your pension. It can also determine whether your spouse is eligible to continue FEHB coverage after your death. Because this election generally becomes permanent shortly after your retirement is finalized, it’s a decision that deserves careful discussion before you complete your application.
3. What’s your plan for your TSP?
Retiring doesn’t mean you have to move your Thrift Savings Plan immediately, but it does mean you should know what comes next. Whether you intend to leave your money in the TSP, roll it to an IRA, or combine several strategies, having a withdrawal plan in place before retirement can make the transition much smoother.
4. Are you eligible to keep FEHB coverage in retirement?
For most employees, continuing Federal Employees Health Benefits (FEHB) coverage into retirement requires meeting the five-year enrollment rule, or being enrolled continuously since your first opportunity to participate. Confirming that you’ve satisfied this requirement before retiring can help you avoid an unexpected loss of one of your most valuable retirement benefits.
5. Are you prepared for the gap between your last paycheck and your full pension?
Most new federal retirees receive interim annuity payments while OPM completes the processing of their retirement claim. Those temporary payments are often lower than the final pension amount, and the process can take several weeks or even months. Building that timing into your retirement budget can make the transition significantly less stressful.
The Bottom Line
Submitting your retirement application is the final step, not the first. Taking the time to answer these five questions beforehand can help you retire with fewer surprises and greater confidence that you’ve protected the benefits you’ve earned.
A Federal Retirement Consultant (FRC®) can review your retirement readiness, explain your benefit elections, and help you understand how each decision fits into your overall retirement plan. No cost. No obligation.
