Question for present federal employees

[texasatty]

Please excuse me if this question has been covered in other threads. I am presently a federal employee under the FERS retirement system, but a non-SSA employee. If I am offered & I accept the position with SSA, does my FERS retirement simpy continue on with SSA? Or does it terminate and a new FERS retirement commence with SSA? I guess not coincidentally, the alj retirement formula is the same as my present retirement formula (one % of average of top three years salary times number of years completed).

Similarly, does my accumulated sick leave and annual leave simply transfer over. Also, what about my Thrift Savings Plan (TSP)? I have an outstanding loan within my TSP. Does anyone believe I'll have to repay it prior to a potential hire with SSA?

I realize this is complicated personnel stuff. I'm awaiting answers from my personnel office, and will report what I'm told, but I know some of you have confronted or will be confronting similar issues in the next week or so. Does anyone know if there is any advantage to terminating my present federal employment prior to starting with SSA? Or is it to my benefit to "transfer", so to speak, to commence employment with SSA without a break in service? From what reading I've done, I believe there is to a pension offset for retired federal employees, so that their "new" federal salary is offset by the amount of their federal pension payment. It sounds like it is better to "transfer" without a break in service.

Maybe the regs remove any options from me in manipulating what I can regarding these issues.

Has anyone confronted any of these issues? Any advice? Any insight is appreciated.

[morgullord]

When I started with SSA years ago, I transferred sick and annual leave from the Department of the Army with no problems. I am not sure but I believe that your FERS and TSP accounts travel with you.

[kolekole]

When I moved from another department to my current one, my TSP loan balance carried over, as did all my leave balances, TSP account, etc. I think the judges are under FERS, so you would just be accumulating more time in the same system. While I'm not an expert, I would avoid any break in service.

[emphyrio]

I transferred agencies in 1998 and everything came with me, even though I went from a non-GS system to a GS system. I was always told to avoid a break in service, mainly because you lose your accumulated annual leave. I understand you do not lose your sick leave with a break in service.

Of course, you should definitely confirm this with your personnel office, which should have this information at their fingertips.

[texasatty]

Thank you for the quick and thoughtful response. I will report what my personnel office advises.

[doctorwho]

Feb 19, 2008 12:55:21 GMT -5 texasatty said:

Please excuse me if this question has been covered in other threads. I am presently a federal employee under the FERS retirement system, but a non-SSA employee. If I am offered & I accept the position with SSA, does my FERS retirement simpy continue on with SSA? Or does it terminate and a new FERS retirement commence with SSA? I guess not coincidentally, the alj retirement formula is the same as my present retirement formula (one % of average of top three years salary times number of years completed).

Similarly, does my accumulated sick leave and annual leave simply transfer over. Also, what about my Thrift Savings Plan (TSP)? I have an outstanding loan within my TSP. Does anyone believe I'll have to repay it prior to a potential hire with SSA?

I realize this is complicated personnel stuff. I'm awaiting answers from my personnel office, and will report what I'm told, but I know some of you have confronted or will be confronting similar issues in the next week or so. Does anyone know if there is any advantage to terminating my present federal employment prior to starting with SSA? Or is it to my benefit to "transfer", so to speak, to commence employment with SSA without a break in service? From what reading I've done, I believe there is to a pension offset for retired federal employees, so that their "new" federal salary is offset by the amount of their federal pension payment. It sounds like it is better to "transfer" without a break in service.

Maybe the regs remove any options from me in manipulating what I can regarding these issues.

Has anyone confronted any of these issues? Any advice? Any insight is appreciated.

Everything is the same. No break in service. You need look no further.

[aljhunter]

There is one advantage to a "break" in service if you are in the 8 hours of annual leave-a-pay period category, you have 240 hours of annual leave banked and you are fairly young: you get a lump sum for the unused annual leave and you have a number of years to accumulate unused leave before retirement. . . . Not a desirable option for most though.

Check your TSP loan documents. You may have to repay the loan in full with a break in service. . .

[texasatty]

The following is what my personnel officer advised. For federal employees "transferring" to a different federal agency: for many reasons, as some of you on the alj board have mentioned, it is much better not to have a break in federal service.

At the time you are hired at the "new" agency (SSA), the personnel office at SSA will communicate directly with your present federal personnel office to arrange for the transfer of records, close out personnel files, etc. You will fill out personnel forms with SSA to facilitate the transfer of records etc. You should make sure each personnel office has contact numbers for the other office.

You should not set your termination date until you know your start date. Once you recieve your start date from SSA, you should make your termination date from your present federal agency the day before that start date. The start date should be a Sunday and the beginning of a pay period. The day before (Saturday) will mark the end of the previous pay period.

If done as described, all of your benefits, accrued vacation days, accrued sick leave, TSP account, etc., will simply transfer over to the new agency. You will continue to add to your existing FERS retirement fund.

If anyone learns anything significantly different from what I was told by my personnel officer, please advise.

Hope this helps. Thanks in advance for your input.

[ruonthelist]

Tex: I think that you have gotten good advice, to which I'd like to add an additional point:

If you have no break in service all of your benefits (leave balance, TSP, etc.) should transfer over. However, it doesn't always happen immediately or seamlessly. It can take a few pay periods for it all to straighten out, especialy if your current agency is on a different payroll system than SSA.

I recommend going to the website of your current agency's payroll provider and printing out hard copies of your last several earning and leave statements. Since it is still early in the year, I would go back to the last few for CY 2007 and print out everything up to and including the statement for your last period of employment at that agency. Hang onto all of them until you are sure that everything has transferred over OK.

Also, since you will be transferring in the middle of the tax year next January you will get a W-2 for 2008 from both your old and new agencies, so even though you don't work for them anymore, provide the old agency with a change of address if you are moving.

[odarite]

Don't hold me to it, but here's another reason to avoid a break in service: if I recall correctly, current feds hired as ALJs get their move paid by the agency. Those hired from outside do not.

[justfoundthisboard]

Good advice about hard copies - I would go one further. Print and save hard copies of anything that could possibly be important regarding your transfer, your leave, your performance, your retirement, etc. I have been through a few transfers and it always pays off!

[texasatty]

Great advice ... all. I will print & save copies of my personnel, payrol & retirement papers.

Thanks for all of the abvice.

[Litigator]

There is another perspective regarding the FEGLI life insurance program. Many of you are relatively young and in good health. FEGLI doesn't offer "super preferred" rates or distinguish between underwriting risks other than based on age.

Many of you non-smoking youngsters that are in good health may be better off shopping on-line for a 15-year, 20-year, or even a 25-year level term life insurance policy. If you are a young, healthy, non-smoker, on a cost per unit basis (e.g. cost per $100,000 in coverage) you'll save money by purchasing a level-term policy from a private insurer in contrast to purchasing a FEGLI policy.

FEGLI policy premiums do go up as you age. And if you are presently a healthy non-smoker, you'd likely be indirectly subsidizing the premiums of other federal employees that are not in as good of health.

Would you buy auto insurance through the federal government merely because it was offered to you as a new hire? Certainly not. And especially if it wasn't price competitive given your individual characteristics as a driver. The same premise holds true for life insurance.

I speak from experience. When I entered on duty with the federal government I discovered that I could get a lot more coverage for the money purchasing a 15-year level term policy than I could through the FEGLI program.

On the other side of the coin, if you are all but uninsurable in the private sector then FEGLI is the way to go.

[counselor95]

Just an addendum:
FEGLI rates go up every 5 years, on the anniversary of the employee's birthday; prior to age 45 (I think) the government basically doubles the coverage in some circumstances--so the rates are low and that is a good deal. Then the increases at age 50 and 55 make the insurance much less of a good deal, especially age 55, when I believe the rates about double. At age 55, it's time to decrease the amount voluntarily, or pay exorbitantly. Upon retirement, the amount decreases by fiat at certain ages; at that point, it is not enough for a spouse to count on for support, if widowed, nor for estate planning purposes.

[texasatty]

Great points Counselor!

Federal Employees really need to look at the Federal Employees Almanac. The increasing premiums with age and the reducing benefits are shocking.

[testtaker]

thought I'd revive this for us soon-to-be newbies.