Federal Benefits Explained

Should federal employees take Social Security at 62, wait until full retirement age, or delay until 70?

For federal employees approaching retirement, the answer may depend on much more than age. Your FERS pension, Thrift Savings Plan (TSP), Special Retirement Supplement, taxes, health, and spouse's benefits can all influence when you should claim Social Security.

In this episode of Federal Benefits Explained, Andrew McNair, founder of SWAN Capital, discusses eight reasons someone might consider claiming Social Security early, along with the circumstances where delaying benefits may be a better long-term strategy.

In this episode, you'll learn:

•    How your FERS pension and TSP can affect Social Security timing
•    When claiming Social Security at 62 may make sense
•    How delaying benefits can increase future retirement income
•    Why market downturns and TSP withdrawals matter
•    How Roth conversions, taxes, and Medicare IRMAA can influence your decision
•    What Social Security timing means for your spouse and survivor income
•    Why health, longevity, and cost-of-living adjustments matter

For federal employees, Social Security is not a stand-alone decision. It is one part of a retirement income strategy that should coordinate your federal benefits, investments, taxes, and long-term financial goals.

Ready to understand how your federal benefits work together?
Schedule a complimentary Federal Benefits Review with SWAN Capital to explore your FERS pension, TSP, Social Security, FEHB, FEGLI, and survivor benefit options.

 https://calendly.com/swancapital_/nocostconsultation  

To receive a customized Federal Retirement Report, call 1-800-848-8768 or visit swan-capital.com.

What happens to your FEGLI life insurance when you retire from federal service? Can you keep your coverage, and how much could it cost as you get older?

Federal Employees' Group Life Insurance (FEGLI) can continue into retirement for eligible federal employees, but your coverage and premiums may change depending on the reduction options you choose.

In this episode, Andrew McNair, founder of SWAN Capital, explains how FEGLI works after retirement, including Basic life insurance and Options A, B, and C. He also discusses the 5-year coverage requirement, how premiums can change with age, and why your life insurance elections should be considered alongside your survivor benefits and overall retirement income plan.

In this episode, you'll learn:

•    What happens to FEGLI when you retire
•    The FEGLI 5-year coverage requirement
•    Basic FEGLI: 75% reduction, 50% reduction, or no reduction
•    What happens to Option A coverage after age 65
•    How Options B and C work in retirement
•    Why some FEGLI premiums increase substantially with age
•    How health and family circumstances can influence insurance decisions
•    Why survivor benefit elections and life insurance should be reviewed together
•    Common FEGLI mistakes federal employees should avoid

Before finalizing your federal retirement paperwork, it's important to understand how your life insurance decisions affect your family's financial protection. Your FEGLI coverage, FERS pension, survivor benefit election, FEHB, TSP withdrawal strategy, and retirement income plan should work together.

Want help reviewing your federal retirement benefits?

SWAN Capital offers a complimentary Federal Retirement Report to help federal employees understand their FEGLI options, FERS pension, FEHB, TSP, Social Security, and retirement income plan.
Schedule a complimentary visit: https://calendly.com/swancapital_/noc... 
Or call our team: 1-800-848-8768

 https://calendly.com/swancapital_/nocostconsultation  

To receive a customized Federal Retirement Report, call 1-800-848-8768 or visit swan-capital.com.

How does OPM calculate your High-3 salary for FERS retirement, and which types of pay actually count toward your federal pension?

Your High-3 salary is one of the most important factors in determining your FERS pension. But many federal employees assume it is simply their last three years of salary or that overtime, bonuses, and other additional pay will increase their retirement benefits.

In this episode, Andrew McNair, founder of SWAN Capital, explains how the Office of Personnel Management (OPM) calculates your High-3 average salary, why some types of pay are excluded, and how locality pay, special rates, and temporary promotions may affect your federal pension.

Andrew also discusses why your highest 36 consecutive months of basic pay may not be your final three years of employment, along with steps you can take to review your pay history and verify your FERS pension estimate.

In this episode, you'll learn:

•    How OPM calculates your FERS High-3 salary
•    Why your High-3 is not always your last three years
•    Which types of pay generally count toward your pension
•    Why overtime, bonuses, and awards are generally excluded
•    How locality pay and qualifying special rates affect your High-3
•    When temporary promotions or higher-paying assignments may count
•    Why reviewing your SF-50s and pay history matters
•    How your High-3 connects to your FERS pension and retirement income plan

Whether you're approaching retirement or have already retired from federal service, your TSP is just one piece of your overall retirement plan. 

At SWAN Capital, we help federal employees and retirees evaluate their TSP, FERS or CSRS pension, Social Security, healthcare benefits, and long-term retirement income strategy. 
Ready to talk through your retirement goals? 

Schedule a complimentary visit: https://calendly.com/swancapital_/noc... 
Or call our team: 1-800-848-8768

Have a federal retirement question you'd like Andrew to answer in a future episode? Email us: [email protected].

 https://calendly.com/swancapital_/nocostconsultation  

To receive a customized Federal Retirement Report, call 1-800-848-8768 or visit swan-capital.com.

Can federal employees keep FEHB health insurance after retirement? Understanding the 5-year FEHB rule is an important part of planning your federal retirement.

In this episode, Andrew McNair, founder of SWAN Capital, explains how the Federal Employees Health Benefits (FEHB) program works in retirement, what the 5-year coverage requirement means, and when exceptions may apply.

Andrew breaks down how TRICARE coverage may count toward FEHB eligibility, why your retirement date and enrollment history matter, and the important differences between immediate, postponed, and deferred retirement under FERS.

In this episode, you'll learn:

•    What the FEHB 5-year rule requires
•    How to keep FEHB coverage after federal retirement
•    When TRICARE may count toward the 5-year requirement
•    Why FEHB enrollment on your retirement date matters
•    How MRA+10 postponed retirement affects FEHB
•    Why deferred retirement is treated differently
•    Common mistakes that could affect retiree health coverage
•    How FEHB, Medicare, TRICARE, FEGLI, and your retirement income plan fit together

Whether you're approaching retirement or still several years away, understanding these rules can help you make more informed decisions about your federal benefits and healthcare options.
Want to review your federal retirement benefits?

SWAN Capital offers a complimentary Federal Retirement Report to help federal employees better understand their FERS pension, FEHB, FEGLI, TSP, Social Security, and retirement income options.

Schedule your complimentary visit: https://calendly.com/swancapital_/nocostconsultation    
Have a federal retirement question you'd like Andrew to answer in a future episode? Email us: [email protected]    

 https://calendly.com/swancapital_/nocostconsultation  

To receive a customized Federal Retirement Report, call 1-800-848-8768 or visit swan-capital.com.

Federal employees with active-duty military service may be able to increase their FERS pension through a military buyback but the rules must be handled correctly.

In this episode, Andrew McNair explains how post-1956 military service may count toward your FERS retirement, why the military service deposit matters, and what can happen if you separate before paying it. He also breaks down common misconceptions, including whether DFAS automatically sends buyback credit to OPM, whether you can pay the deposit after retirement, and whether Guard or Reserve drills count toward FERS retirement credit.

Andrew walks through the basic steps to request military earnings, obtain a deposit estimate, pay the military service deposit before separation, and verify that your SF-50 and OPM retirement estimate reflect the credited service.

If you are a federal employee with active-duty military service, this episode can help you understand how a military buyback may affect your FERS pension, creditable service, TSP withdrawal strategy, and retirement income plan.

To schedule a complimentary Federal Retirement Report and review your FERS benefits, military records, TSP, LES, Social Security statement, and retirement income plan, visit: https://calendly.com/swancapital_/nocostconsultation    

COVERING OUR TAIL FEATHERS
 
Welcome to Swan Capital, LLC (“SWAN”), your friendly neighborhood Registered Investment Adviser ("RIA"). Now, while we may have a fancy title, remember that our registration doesn’t guarantee we’re flying high above the rest. This communication hasn’t been blessed or verified by the United States Securities and Exchange Commission (SEC) or any state securities authority. At SWAN, we believe in giving you personalized investment advice as unique as a swan’s graceful glide. We work with clients in their own states, making sure to play by all the regulatory rules or find the right exceptions. But here’s the scoop: all investments come with risks—like a wild swim in the pond—so no investment strategy can promise profits or protect you from the occasional splashdown. Just remember, past performance is like a cozy old story; it might be nice to reminisce about, but it doesn’t promise what’s coming next.
 
SWAN Capital, LLC is an independent firm and is not affiliated with, endorsed by, or sponsored by the Federal Employee Retirement System (FERS) or any government agency.
Thanks for gliding along with us at SWAN! We’re here to help you soar to new financial heights while ensuring you can truly Sleep Well At Night!

 https://calendly.com/swancapital_/nocostconsultation  

To receive a customized Federal Retirement Report, call 1-800-848-8768 or visit swan-capital.com.

Can federal employees change their FERS survivor benefit election after retirement?

In this episode, Andrew McNair explains why survivor benefits are one of the most important retirement decisions federal employees make. Your survivor benefit election can affect your spouse’s lifetime income, FEHB continuation, life insurance planning, and overall retirement security.

Andrew breaks down when survivor benefit changes may be allowed after retirement, including post-retirement marriage, the 2-year election window, former spouse court orders, spousal consent, make-up payments, and the connection between survivor benefits and FEHB coverage for a spouse.

If you are preparing for federal retirement, recently remarried, reviewing a divorce decree, or trying to understand how survivor benefits affect your spouse, this episode can help you identify the questions to ask before making an irrevocable decision.

To schedule a complimentary Federal Retirement Report and review your FERS pension, survivor benefit options, FEHB, FEGLI, TSP, life insurance, and retirement income plan visit: https://calendly.com/swancapital_/nocostconsultation

Episode Highlights:

•    Why survivor benefits matter for your spouse’s lifetime income
•    When you may be able to change a FERS survivor benefit after retirement
•    The 2-year election window after post-retirement marriage
•    Why former spouse court orders can override later elections
•    When spousal consent may be required
•    How make-up payments may apply
•    Why FEHB continuation can depend on a qualifying survivor election
•    How life insurance and survivor benefits should be reviewed together
•    Why survivor benefit decisions should not be made by default

 https://calendly.com/swancapital_/nocostconsultation  

To receive a customized Federal Retirement Report, call 1-800-848-8768 or visit swan-capital.com.

Federal employees often rely on agency estimates, GRB calculations, or HR-provided retirement numbers when planning for retirement. But what if that FERS pension estimate is wrong?
In this episode, Andrew McNair explains why your FERS pension estimate may only be an approximation until OPM finalizes your record. He breaks down how your High-3 salary, creditable service, leave without pay, temporary details, locality pay, and service history can all affect your final pension calculation.

Andrew also shares common myths federal employees believe about pension estimates, including whether OPM uses gross pay, whether your estimate is your final annuity, and whether estimates are always accurate within a small margin.

If you are preparing for federal retirement, this episode can help you understand why your FERS pension estimate, TSP withdrawal strategy, emergency fund, and retirement income plan should all be reviewed together before you separate from service.

To schedule a complimentary Federal Retirement Report and review your FERS benefits, TSP, LES, pay history, and retirement income plan, give us a call at 1-800-848-8768 or visit https://calendly.com/swancapital_/nocostconsultation.

Episode Highlights:

•    Why agency and GRB pension estimates may be off
•    How OPM calculates your FERS pension
•    Why your High-3 salary matters
•    Why gross pay is not the same as pensionable pay
•    Why your estimate is not your final annuity
•    How to request and review your Certified Summary of Service
•    Why a missed detail or higher-pay assignment can affect your pension
•    How FERS and TSP estimates come from different sources
•    Why you should rerun your estimate after a promotion or within 12 months of retirement

 https://calendly.com/swancapital_/nocostconsultation  

To receive a customized Federal Retirement Report, call 1-800-848-8768 or visit swan-capital.com.

December 31 may seem like the perfect retirement date for federal employees, but it can create unexpected tax issues if you are not careful.

In this episode, Andrew McNair explains why year-end retirement timing matters under FERS, especially when annual leave payouts, final salary, pension income, spouse income, Roth conversions, Medicare IRMAA, and TSP withdrawal strategy are all involved. A clean calendar date can sometimes create a messy tax situation.

Andrew breaks down how annual leave lump-sum payouts are generally taxed in the year they are paid, not necessarily the year the hours were earned. That means retiring on December 31 could push income into the following year and potentially create tax bracket bunching.

If you are a federal employee preparing for retirement, this episode can help you understand why your retirement date should be coordinated with your FERS pension, TSP, annual leave payout, Medicare, FEHB, Social Security, and retirement income plan.

To schedule a complimentary Federal Retirement Report and review your FERS benefits, TSP, LES, Social Security statement, annual leave payout, and income plan, give us a call at 1-800-848-8768 or visit https://calendly.com/swancapital_/nocostconsultation. 

 https://calendly.com/swancapital_/nocostconsultation  

To receive a customized Federal Retirement Report, call 1-800-848-8768 or visit swan-capital.com.

Federal employees: your FERS pension does not necessarily start the day after you retire.
In this episode, Andrew McNair explains the FERS 1/12th rule and how OPM calculates your annuity start date. Under FERS, your pension generally begins accruing on the first day of the month after you separate. That means retiring even one day too late could delay your first pension check by an entire month.

Andrew breaks down why January 2 and January 31 can create very different pension timing, why FERS and CSRS rules are not the same, and why weekends, holidays, HR processing, and separation dates all matter when choosing your federal retirement date.

If you are a federal employee nearing retirement, this episode can help you understand how your FERS annuity start date, final paycheck, TSP withdrawal strategy, Social Security, survivor benefit, and retirement income plan should work together before you leave federal service.

To schedule a complimentary Federal Retirement Report and review your FERS benefits, TSP, LES, Social Security statement, and retirement income plan, give our team a call today at 1-800-848-8768.

 https://calendly.com/swancapital_/nocostconsultation  

To receive a customized Federal Retirement Report, call 1-800-848-8768 or visit swan-capital.com.

Federal employees often wonder whether unused sick leave and annual leave help their retirement. Under FERS, they are treated very differently.

In this episode, Andrew McNair explains how unused sick leave can convert into creditable service and potentially increase your FERS pension calculation, while annual leave does not add to your pension. Instead, annual leave is generally paid out as a lump sum after separation.

Andrew also breaks down common sick leave myths, including whether sick leave can help you reach your minimum retirement age or 30 years of service, whether FERS still only receives partial sick leave credit, and whether annual leave boosts your pension.

If you are a federal employee preparing for retirement, this episode can help you understand how sick leave, annual leave, your FERS pension, TSP withdrawal strategy, and retirement income plan should work together before you leave federal service.

To schedule a complimentary Federal Retirement Report and review your FERS benefits, TSP, LES, Social Security, and income plan, give our team a call at 1-800-848-8768.

Episode Highlights:

•    Why sick leave is not a throwaway benefit
•    How OPM converts sick leave into service credit
•    Why annual leave does not increase your FERS pension
•    What 2,087 hours means for sick leave conversion
•    Why sick leave cannot be used to meet retirement eligibility
•    Common myths about sick leave under FERS
•    How annual leave payouts may affect tax planning
•    Why sick leave, annual leave, TSP, and income planning should be coordinated

 https://calendly.com/swancapital_/nocostconsultation  

To receive a customized Federal Retirement Report, call 1-800-848-8768 or visit swan-capital.com.