Maximizing your final hours, or, What a difference a day makes!

If people spent as much time studying a future mate as many federal workers do in researching the best date to retire, the nation’s divorce rate could be cut in half.

While the above statement has no scientific or statistical basis in fact, lots of people in the federal benefits business believe it. This is based on years of dealing with feds as they figure when to retire and how to get the most out of their last few years, months, days, sometimes even hours, with Uncle Sam.

Wednesday’s Your Turn radio show featured Tammy Flanagan. She’s a star in the federal benefits community. She is senior specialist for the National Institute of Transition Planning and a regular columnist for Government Executive. To listen to her Q & A session, click here.

Each year Tammy works out an elaborate time-line that tells federal and postal workers which are the best dates — and there are always more than one — to retire. And why!

This year, for example, best dates to retire included May 31 , Oct. 31 and Nov. 30. For people anxious to max out their unused lump sum annual leave payment and minimize their 2014 taxes, she recommends Jan. 2, 2015, if they are under the old CSRS or CSRS Offset retirement programs. For employees under the FERS system she recommends Dec. 31 of this year, or Jan. 10, 2015.

The laser-like precision of her best-date-to-retire calculations is copied by many (including me). And admired by all who care about such things.

Yet sometimes even, after all her calculations and reasons, some people want more. Or less, in some cases?

After we reported the Jan. 10, 2015, best-date to retire, a number of people asked why not Jan. 9? Or Jan. 11? Several said that although she said Jan. 2, 2015, was an optimum date, they would prefer to leave on Jan. 2, or Thursday, Jan. 1, since it will be a holiday!!!

For example, here’s a “simple” query from a federal law enforcement officer and the not-so-simple answer from Tammy.

“I am a Law Enforcement Officer (FERS) and will have 23+ years as a LEO when I turn 50 and therefore eligible to retire. My birthday is March 1. My question is this: I have heard OPM will consider me 50 on Feb. 28 and since it is the end of the month, I would get my first annuity check in April. Is this true?”

Simple: Yes or no, right or wrong, right?

Wrong: Nothing is simple in the federal benefits business, especially when it comes to the best-date-to-retire. Here’s Tammy’s answer:

“Technically, I’ve also heard that you can retire the day before your birthday, since you will become an annuitant the first of the next month. I would not recommend testing this for a law enforcement officer because the rules do say that you must be 50 at the time of separation. I would recommend waiting until March 31 of the month that you turn 50 to be a safer option for your retirement date. I think that this idea came from Social Security. (See the second page, middle of the first column of this document where it talks about someone who is 62 on the first or second day of the month or the birthday is on the last day of the previous month.)

B. Minimum Age and Service

An employee must be at least age 50 at the time of separation and have at least 20 years of service as a law enforcement officer and/or firefighter (but does not have to be in a law enforcement officer or firefighter position at separation) to be eligible for retirement under the special provisions.

NOTE 1: Accrued and unused sick and/or annual leave cannot be used to meet the minimum service requirement.

NOTE 2: Military service, even if creditable under CSRS generally, cannot be credited under the special provisions for law enforcement officers and firefighters. Thus, military service cannot be used to meet the minimum service requirement. However, under certain circumstances, an individual entering military service directly from a civilian position is entitled to have that period of service treated as if it were civilian. (See Chapter 22, part 22A6.) If the individual is in a law enforcement or firefighter position at the time of entry into the military, the period creditable as civilian service may be used toward satisfying the minimum service requirement.”

For Tammy’s Best Dates To Retire outline, click here.

NEARLY USELESS FACTOID:

By Michael O’Connell

For most adults, it’s safe to drink up to 400 milligrams of caffeine a day, which is the equivalent of four brewed cups of coffee, 10 cans of soda or two “energy shot” drinks. Some adults, though, may be more sensitive to caffeine’s effects. Also, drinking more than 500 to 600 milligrams a day could lead to unpleasant side effects, such as restlessness, irritability or an upset stomach.

Source: Mayo Clinic.

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