Find out more about Federal compensation throughout your career and around the world.
Staffing to align with your agency's mission
Review the new 2014 Federal Employees' Group Life Insurance (FEGLI) Handbook
Answering your questions about Healthcare and Insurance
Congress approved a cost of living increase for Federal retirees.
Manage your retirement online.
Human Resources and Security Specialists should use this tool to determine the correct investigation level for any covered position within the U.S. Federal Government.
Visit this federal site to search for our regulatory notices, proposed and final rules.
See the latest tweets on our Twitter feed, like our Facebook pages, watch our YouTube videos, and page through our Flickr photos.
The small reduction in Social Security benefits is greatly outweighed by the much larger tax savings. In each case we tested, the increase in take-home pay far exceeded the minor loss in monthly Social Security benefits.
Here is a simple formula you can use to estimate the difference in your Social Security benefit:
The result is the annual loss of Social Security benefits.
(# of Years of Premium Conversion /35) X Annual FEHB Premium X marginal SSA rate = Annual Loss
You participate in FERS. We assume that you've had a full career of FICA contributions, with an ending salary (today) of $50,000 and projected retirement at age 66 in January 2016. Your estimated Social Security benefit equals $1,414 per month.
You begin participating in premium conversion and reduce your taxable income by $2,000, the amount of your FEHB premium. By changing your salary to $48,000, your monthly Social Security benefit is now $1,403, an $11.00 per month difference in today's dollars.
15/35= .4286 X 2000 = 857 X .15 = 128/12 = 10.71 or 11
Compare that to the estimated $67 increase in take home pay per month.
For more specific information on how the Social Security benefit is calculated, refer to www.ssa.gov.
There was an unexpected error when performing your action.
Your error has been logged and the appropriate people notified. You may close this message and try your command again, perhaps after refreshing the page. If you continue to experience issues, please notify the site administrator.