OCR Text |
Show retirement Example 1. John is a clerical employee who retires at age 62 with a final salary of $20,000 and a high-thre- e average of $18,970. Each pay period, he contributed 2 percent of his salary to the savings plan, which was matched by the government's contribution of 3 percent. Also John worked five years outside federal employment, which gave him a total of 35 years under Social Security. If John had contributed 5 percent of his salary to the savings plan rather than 2 percent, the yearly savings plan benefit would have been $4,720. This would have increased the total benefit to $15,820 per year 79 percent of his final year's salary of $20,000. Annual benefit Social Security Basic benefit Savings Total ' Numbers $7,700 15,650 5,700 $29,050 Percent of final salary 15 31 11 58 do not add total because of rounding. the yearly savings plan benefit would have been than Example 2. Mary is an adminis- trator who retires under the FERS at age 62 with a final salary of $50,000 and a high-thre- e average of 2 percent, $11,400. This would have increased $47,420. Each pay period,. she contributed 2 percent of her salary to the savings plan, which was matched by the government's contribution of 3 percent. She also worked five years outside federal employment, which gave her a total of 35 years under Social Security. Numbers do not add to tal because of rounding. If Mary had contributed 5 percent to the savings plan rather 'Al 31 HILL TOP TIMES Friday, May 15, 1M7 the total benefit to $34,750 per of 69 the final year's percent year of salary $50,000. There are four sources for assistance and more information about the FERS: Your civilian personnel office; The Social Security Adminis- tration; The Thrift Board; The Office of Personnel . Management. dDd (WQnGDtERl tPDC 10 TO CHOOSE FROM o EXTRA CABS o LONGBEDS o SHORTBEDS ONLY 10 TO FROM 2 TO o EXTRA CABS o LONGBEDS o SHORTBEDS TOYOTA ONLY t Tn,s Weekend Only at ..DEALER INVOO G i lS DC YOU'VE MOSSED OUK 0)(O) UJ U YHEK SALES U7UU Rnancing with secured credit & 1 0 down, cash or trade. "Pius Tax & License, Plus Any Dealers or Manufacturers Options QD7 QDUfi o gdosweru SALES 394-570- rnmmwmmr ...w.yaB: mmmsm 1 PARTS 627-121- 4 SERVICE o 627-123- 4 o BODY SHOP o 627-123- 4 |