pensions

[lee]

Assuming that some of us have the good fortune to be offered an ALJ appointment, what is the pension plan? Since alot of us appear to be 50 years+, this must be a consideration for people other than me.
5 years to vest?
Defined benefit v. defined contribution?
Guaranteed med insurance with retirement?
How many years of service to max out retirement?
Can service with a state agency be transferred to the federal program?
Thanks for any help.

[aljsouth]

Basically your pension outlook is not bright if you are not a long time federal employee. If you work 10 years you will get a minimal amount.

There is a pension reform bill in congress that will strengthen alj's pensions and will help.

[doctorwho]

Lee, the questions you ask have very lengthy answers -- all of which can be found on the OPM website. Here is a very quick rundown (from memory -- hopefully, nothing had changed).
1. Three years to vest in the govt's DB contributions -- there is a DB plan (FERS) and a DC Plan (TSP).

2. Yes, medical if you have 5 continuous years of service immeidately prior to retirement and certain other restrictions that I can't remember.

3. You max out under FERS at something like 40+ years (of service) under the current law (calculated at 1% per year of service).

4. Service with state agency can't be transfered.

[lee]

doctorwho and aljsouth--
thanks for the pension info.

[deadwood]

lee said:

Assuming that some of us have the good fortune to be offered an ALJ appointment, what is the pension plan? Since alot of us appear to be 50 years+, this must be a consideration for people other than me.
5 years to vest?
Defined benefit v. defined contribution?

You might check out www.tsp.gov for some info regarding retirement savings. I am by no means a financial planner, but the TSP seems to be a pretty darn good deal--for example, the first five percent of your contributions are matched dollar by dollar by the Agency.

See also: www.opm.gov/retire/

Retirement calculator: www.opm.gov/benefits/ballpark/menu.asp