We're Authorized As A Federal Contractor To Help You. Cage Code: 9MS64

5 Facts About Social Security as a Federal Worker

Most retired federal employees participate in Social Security now as part of FERS. Here are some things you should know.

Federal employees under the FERS (Federal Employees Retirement System), which replaced the CSRS (Civil Service Retirement System) in 1986, all participate in Social Security.

In fact, FERS is a retirement plan that provides benefits from three different sources:

  • A Basic Benefit Plan,
  • Social Security and
  • The Thrift Savings Plan (TSP).

The first two, the Basic Benefit and Social Security parts of FERS, require you to pay your share each pay period. Your agency withholds the cost of the Basic Benefit and Social Security from your pay as payroll deductions.

After you retire your Basic Benefit Plan allows you to receive annuity payments each month for the rest of your life (also called a pension)

The Social Security portion of your benefits means you can also file for and collect Social Security and receive monthly checks for the rest of your life.

Thirdly, instead of the 401(k) plans available to private sector workers, federal employees have the TSP (Thrift Savings Plan) as part of their benefit package. Your TSP account is automatically set up for you by your agency. Each pay period your agency deposits into your account amount equal to 1% of the basic pay you earn for the pay period. You can also make your own contributions to your TSP account and your agency will also make a matching contribution. Participation in the TSP is automatic although you can opt out or opt to contribute more. It is similar to a private sector 401(k) plan.

Five facts about Social Security that you should know as a federal employee:

If you have any questions about Social Security, your federal employee benefits or how to better prepare yourself for retirement

please give us a call at (734) 388-0044.