Month: April 2012

h2. Should I even buy the years? what if we use the 13K for something really special? the cashflow is way out there.

If you’ve spent time in on active duty with an honorable discharge (i.e. you have a DD-214) and you then join the civil service, it is possible to pay for your military years and receive credit for FERS.

Questions:
* What are the various deadlines?

There is a two-year interest free period that begins on your date of hire. However, since the interest is added on an annual basis, if the deposit amount is paid in full prior to three years of your hire date the deposit is interest.

* Can I collect my civilian and reserve retirements? (Retirement: You must waive your military retired pay in order to receive credit for military service in a civilian annuity, unless your military retirement is based on)
*

employee. The deposit can be made in one single payment, multiple payments, or through payroll deductions, normally for as little as $25-$50

There are two reasons to do this:
* You could retire sooner, or
* Your can increase your retirement annuity

Here are the rules:
* The deposit must be paid in full while you are a federal employee
* that you must have at least five years of creditable civilian service and be covered under the CSRS or FERS retirement system on the date of retirement

All the details are here: “http://www.opm.gov/retire/pre/fers/servicecredit.asp”:http://www.opm.gov/retire/pre/fers/servicecredit.asp

Here is the math. The deposit amount is 3{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4} of military base pay for FERS employees.

There are three steps to make this happen:

Obtain your total estimated military earnings by sending form RI20-97 and a copy of your DD214 to your respective military pay representative. The military payroll office will send you a short letter or form indicating your total estimated earnings during your military service.

Complete a SF-3108 or SF-2803 This form requires a statement on the form concerning military deposits, which is not available on the on-line version. Obtain the edited form from your HR office. HR will forward the documents to your civilian payroll office. Your payroll office will bill you directly.

Make the deposit to your civilian payroll office. You can pay the deposit in one lump sum, a series of payments, or sign up for payroll deductions, normally for as little as $50 per pay period. The deposit must be paid in full while you are employed and cannot be made after you retire.
Step 4: When the deposit is complete, your payroll office will send you a letter that the deposit is paid in full. Keep this document for your permanent retirement records and send a copy to your HR office. Payroll will not usually notify your HR office of the deposit, so it is very important that you retain a copy of this letter until you

classdef PaymentPlanner  0
               obj.year_of_departure = 2011 + years_from_now;
            end
{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4}           how many years are we looking at total?
            obj.n                       = PaymentPlanner.years_out+1;
{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4}           which years are we looking at?
            obj.years                   = (2011:(2011+PaymentPlanner.years_out))';
{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4}           what are the years of the experiment?
            obj.tv_each_year            = obj.years;
{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4}           what age are you each year?
            obj.tv_age                  = obj.years-(ones(obj.n,1)*1976);
{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4}           what is your age when you leave service?
            obj.year_of_62              = obj.years(obj.tv_age == 62);
            obj.age_at_departure        = obj.year_of_departure-obj.birthday(1);
{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4}           what is the inflation-adjusted salary in each year?
            obj.tv_salary               = obj.increase_with_inflation(obj.starting_salary)';
{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4}           what is the inflation-adjusted salary at exit
            obj.departing_salary_TY     = obj.tv_salary(obj.years == obj.year_of_departure);
{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4}           how much cash on hand each year?
            obj.tv_cash_on_hand_TY      = obj.increase_with_inflation(obj.amt_years_buyback)';
{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4}           how many years in federal service?
            obj.total_time_in_service   = obj.year_of_departure - PaymentPlanner.year_started_service;
{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4}           how much cash would the government return?
            obj.payout                  = calculate_payout(obj);
{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4}           what is the yearly payment available in 2011 dollars?
            obj.yearly_payment_BY       = obj.present_value(obj.get_retirement_BY, obj.year_of_62 - obj.year_of_departure);
        end

        function compare_30_year_coa(obj)
           for i = 1:30
               obj.year_of_departure = 2011 + i;
               obj.age_at_departure  = obj.year_of_departure-obj.birthday(1);
               obj.total_time_in_service   = obj.year_of_departure - PaymentPlanner.year_started_service;
               obj.yearly_payment_BY       = obj.present_value(obj.get_retirement_BY, obj.year_of_62 - obj.year_of_departure);
               disp([num2str(i) '|' num2str(obj.age_at_departure) '|' num2str(obj.yearly_payment_BY)]);
               A(i) = obj.yearly_payment_BY;
           end
           plot(1:30,A);
        end

        function out = present_value(obj, x, years)
            out = x/((1+obj.inflation_rate)^years);
        end

        function out = increase_with_inflation(obj,x)
            out = x*((1+obj.inflation_rate).^(1:obj.n));
        end

        function display_output(obj)
            disp(['At age ' num2str(obj.age_at_departure) ' you would depart with a base year salary of ' num2str(obj.starting_salary) ]);
            disp(['You would get ' num2str(obj.yearly_payment_BY) ' (BY11) going forward at age 62.']);
        end

        function payout = calculate_payout(obj)
            idx                         = find(obj.tv_age == 62);
            count_to_the_top            = length(obj.tv_payout_TY(idx:end));
            retirement_starting_salary  = obj.get_retirement_TY;
            obj.tv_payout_TY(idx:end)   = retirement_starting_salary*(1+obj.inflation_rate).^(1:count_to_the_top);
            payout                      = sum(obj.tv_payout_TY);
        end

        function yearly_payment = get_retirement_TY(obj)
            yearly_payment      = (obj.total_time_in_service/100)*obj.departing_salary_TY;
        end

        function yearly_payment = get_retirement_BY(obj)
            yearly_payment      = (obj.total_time_in_service/100)*obj.starting_salary;
        end

        function obj = value_at_age_62(obj)

        end
    end

end

h2. What are the steps?

Do I fall under: Uniformed Services Employment and Reemployment Rights Act (USERRA)?

No because no civilian service was interrupted.

How much do I pay?

For periods of service performed during 1999 the deposit equals 3.25{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4}; and during 2000 the deposit equals 3.40{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4}. After 31 Dec 00 the deposit returns to 3{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4} of your military base pay.
For periods of service performed during 1999 the deposit equals 3.25{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4}; and during 2000 the deposit equals 3.40{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4}. After 31 Dec 00 the deposit returns to 3{aaa01f1184b23bc5204459599a780c2efd1a71f819cd2b338cab4b7a2f8e97d4} of your military base pay.
So, for example, I joined in 07/04/1999 and departed in 08/05/2009

What is the process