From what I understand I can start drawing the Soc Sec Supplement at my MRA+20 age 58 (is that correct?). Since the money I will be recieving from TSP, Civ Svs and Military retirement are not income the Social Security Administration will not be able to deduct $1 from your benefits for each $2 you earn above $16,920 (correct?).
When I hit my MRA at age 58 I will have worked over 40 years contributing to Soc Security. So I should be able to draw the Soc Sec Supplement risk free correct? Currently my age 62 SSI benefit is $1,575 a month so this amount will not change if I draw on it at age 58.
https://www.opm.gov/retirement-services ... k/c051.pdf
From reading that, I apply the formula 1575 (SSI annuity at 62) X 22 FERS yrs / 40 yrs = $866.25. Great, nice to figure this out without having to be a rocket scientist.
As a follow-up question; is it true, If I retire before age 60 I face a 5% per year reduction in my Civil Svs retirement pay (5/12 of a percent per month)?
Dan Jamison’s FERS Guide is pretty good reference https://fersguide.com cost $10 for 1 year subscription and you could email him questions, which I did before I retired.
For regular retirement there really isn't a penalty under FERS other than you only get 1% per year times average high 3 salary. I retired early under VERA with 28.7 years but I will get the supplement once I reach my MRA, there was no penalty under FERS but there was for those under CSRS/Offset so that may also be true for MRA + 20.
You don't imitate a limited system when better alternatives exist, like inverse funds/ETFs FOR example.
John316 wrote:Is there a penalty in this scenario - say at age 56 you take a full retirement, going out at your MRA with 37 years service. You do not want to leave any money in the TSP, so you open a Traditional IRA with say, Vanguard. You transfer say 300,000. Now, once the transaction is complete, can you begin to withdraw money from this IRA if you choose, even though you are not 59 and a half?
I am retiring in 2.5 months everything I've read and heard says that if you take it out of TSP and put it in an IRA on the outside you will be penalized for withdrawal unless you withdraw based on life expectancy. That is the only reason I am considering leaving 1 to 3 years worth of supplemental money in TSP (until 59.5) and moving the rest to Profunds (no fees except yearly $15 maint. fee, inverse funds, leveraged funds). Confirm by calling TSP and the place you want to transfer money to. I haven't done that yet.
philmiec wrote:It's my understanding that you will not be hit with the 10% penalty since you've completed 30 years service and are officially retired when you begin drawing your monthly pension. And yes, you will be eligible for a social security payment at age 62. The supplement pays you a portion of your SS payment between age 57 and 62. At 62 you can start drawing your regular payment.
30 years of service or 30 years of Active Federal Service?
I know some NG folks with 20 Active Federal; but have like 32 years of total service.