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Discontinued Service Retirements, Early-Out, and Buy-Out Options |
Seminar Highlights and Objectives
Congress has authorized DOD agencies, at their discretion, to offer their employees
early voluntary retirement, commonly called an "early out." Non-DOD agencies may
do so with OPM approval. In addition, some agencies have been authorized to make
cash payments (commonly referred to as "buy outs") to employees who voluntarily
leave Federal service. Employees who do not take an early out or accept the buy
out could later be forced to leave Federal service under a reduction-in-force (RIF).
Many of those affected by a RIF will be eligible for discontinued service (involuntary)
retirement.
Federal agencies have the important responsibility of providing employees complete
and accurate information regarding retirement benefits. This responsibility will
be pushed to the limit as agencies, over the next year, begin to counsel employees
about all of the options available to them—early out, buy out, optional retirement,
deferred retirement, involuntary retirement—and how each of these options will affect
their benefits. This seminar is designed to provide employees with all of the information
they need to maximize their options by showing:
- How the age and service requirements under early out and discontinued service retirement
differ from the requirements for optional retirement.
- How CSRS and FERS benefits are computed and how to compare the benefits the employee
would be entitled to by retiring early (including the buy out) versus waiting until
he or she becomes eligible for optional retirement.
- What employees should consider in making the decision to volunteer for early retirement
(and the buy out), including the advantages and disadvantages of early retirement.
- The differences between early retirement and involuntary retirement and the advantages
and disadvantages of each.
- The financial implications that must be addressed in making the decision to retire
now or later (e.g., Can I afford to retire?).
- How to determine if an employee is ready to retire, including the personal considerations
that must be taken into account.
Who Should Attend
This seminar is vital for anyone who:
- Is eligible to retire either optionally or under an early out or discontinued service
retirement with or without a buy out.
- Employees who are not eligible to retire but are considering resigning to receive
the buy out.
Seminar Dates and Locations
This seminar is offered by GRB for on-site presentation at your agency. GRB can
design or tailor seminars to meet your unique needs. If you do not have a sufficient
number of employees at your agency to justify on-site training, you may wish to
sponsor on-site training for other Federal employees in your geographic area.
For further information send email to:
Eligibility for Retirement
- Optional Retirement
- "Early Out"
- Discontinued Service Retirement
- Deferred Retirement
Computation of Retirement Benefits
- General Formula Computation under CSRS and FERS
- CSRS Age Reduction
- Civilian Deposits/Redeposits
- Military Deposits
- Optional Retirement vs. Early Out
- Advantages/Disadvantages of Early Out Retirement
- How Continued Work Affects Future Benefits
- Projecting Benefits to "Normal" Retirement Age
- Effect of Future COLA’s and Salary Increases
Buy Out
- Who is Eligible
- Computation of Amount
- Tax Consequences
- Factors to Consider in Deciding Whether to Volunteer for Early Out or the Buy Out
- Employment Restrictions
Survivor Benefits
- Amount
- Effect of Buy Out
- Effect of Continued Work
- Considerations of Whether or Not to Elect
Health Insurance
- Requirements to Continue into Retirement
- Waiver of "5 year rule"
- Cost/Changes after Retirement
Life Insurance
- Requirements to Continue into Retirement
- Cost/Reductions for Basic and Optional Insurance
- Conversion Rights
- Payment to Beneficiaries
Thrift Savings Plan
- Payout Options/Tax Consequences
Social Security
- Form SSA 7004
- Government Pension Offset (GPO)
- Windfall Elimination Provision (WEP)