Page 76 - The Informed Fed--Hearn Wealth Management

the details but will try to help you understand how it affects your pension
check. CSRS/OFF-SET is a CSRS employee. The only difference is you

example. If Bob retires at age 55 with 30 years of service as a
CSRS/OFF-SET employee, he will receive the full 56.25% pension that

is allowed for a normal CSRS employee. When Bob turns 62 and
becomes eligible for Social Security his pension check will be offset by

his Social Security check.
Pension Check at 55 $2,125.00
Social Security Check at 62 $1,000.00

Retirement Income at 62:
Pension Check $1,125.00
Social Security Check $1,000.00

In a nutshell, you get the exact same monthly income as a regular
CSRS employee. The only difference is that at age 62 the income will
come from two sources instead of one. FERS employees hired January

1, 1984 and after are FERS employees. Many people ask us why a second
retirement system was created. No one will ever know the entire

e systems.
However, we will show you how FERS works and then you can make
your own assessment as to the motivations behind the creation of this

system. FERS employees pay very little toward their retirement
compared to CSRS employees. The CSRS employee paid 7% toward

retirement where a FERS employee will only pay .08% (not even 1%)
toward retirement. It is also important to look at the differences in
pension amounts between a FERS and a CSRS employee. A CSRS
employee after 30 years and at age 55 will earn a pension check for life

of 56.25% of their highest three years of salary. A FERS employee will
only earn 30% after 30 years of service and reaching their minimum

retirement age. We have listed the minimum retirement ages with 30
years of service below:
If you were born before 1948 55

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