CSRS FEDERAL RETIREMENT CALCULATOR Version 3.0 January 1993 ------------------------------------------------------------ DISCLAIMER The information presented in this program is an approximation of your retirement benefits. See your personnel office for accurate retirement information. The CSRS FEDERAL RETIREMENT CALCULATOR and Documentation are provided 'As Is' without warranty of any kind (including the implied warranties of merchantability and fitness for a particular purpose). No oral or written information or advice provided by Decision Support Software, its dealers, distributors, agents or employees shall create a warranty of any kind regarding the CSRS FEDERAL RETIREMENT CALCULATOR, and you may not rely upon such information or advice. Neither Decision Support Software nor anyone else who has been involved in the creation, production, or delivery of the CSRS FEDERAL RETIREMENT CALCULATOR shall be liable for any direct, indirect, consequential, or incidental damages (including, but not limited to, damages for loss of business profits, business interruption, and loss of business information) arising from the use of (or inability to use) the CSRS FEDERAL RETIREMENT CALCULATOR. GENERAL How would you like to determine what your federal retirement benefits would be if you retired tomorrow or perhaps in a year or more? But wait, what impact would an average 4% yearly high three average increase have on your benefits if you retired three years from now? What if you could save all or some of your sick leave for the next two years. Would that have a significant effect on your monthly retirement check? How much does survivor retirement cost in terms of reducing a full retirement income? If you decide to retire early, what penalty do you pay? This program will assist you in exploring retirement benefits for you and your survivors. By entering just a few pieces of information, this program will provide you with the answers to the above questions and several others. You will view impacts on your retirement income based on: when you elect to retire, salary increases, sick leave accumulation, early retirement penalties, electing survivor benefits, and beneficiary income. Either short or long term initial retirement information is displayed in 12, one month or one year increments for easy comparison. All input information and calculations are displayed and can be printed on a dot matrix or laser printer. AVERAGE INCOME FOR HIGH THREE EARNING YEARS This is the highest pay obtainable by averaging your rates of basic pay in effect during any three consecutive years of civilian service, with each rate multiplied by the time it was in effect during the 36 month, high three period. Example 14 Months at $19,000 14/36 x $19,000 = $7,389 10 Months at $20,000 10/36 x $20,000 = $5,556 12 Months at $21,000 12/36 x $21,000 = $7,000 ====== Average income for high three earning years = $19,945 PROJECTED YEARLY HIGH THREE INCREASE You can approximate an annual increase in your average high three earnings and view the results on a yearly basis. SERVICE YEARS AND MONTHS Service years are computed based on your service computation date - the years and whole months of creditable civilian service. SICK LEAVE Sick leave is counted in one month increments. Unused sick leave to your credit is added to your length of service for annuity computation purposes. Unused sick leave cannot be used in computing your high three average pay or for the purpose of meeting the minimum length of service required for retirement eligibility. INFLATION FACTOR To view the impact inflation will have on your annuity, estimate and enter an annual inflation rate. The amounts shown in the No Survivor, Survivor and Beneficiary columns will be reduced by the inflation factor/rate. These adjusted annuities can be thought of as purchasing power in today's dollars. To view the actual annuities, enter 0 in the Inflation Factor field. 2% ANNUITY REDUCTION Retirement annuities are reduced by 1/6 of 1% for each full month (2% for each full year) under the age of 55. The amounts shown in the 2% per year column are annual amounts of no survivor retirement income reduction. SURVIVOR ANNUITY The survivor annuity is calculated by reducing the No Survivor annuity by 2 1/2% for the first $3600 and 10% for the amount over $3600. BENEFICIARY ANNUITY The Beneficiary annuity is calculated by multiplying the No Survivor annuity by 55%. IMMEDIATE RETIREMENT ELIGIBILITY In general, immediate retirement eligibility is based on two requirements: minimum age and minimum service years as shown below. Minimum Age Minimum Service ----------- --------------- 62 5 60 20 55 30 This program displays all combinations of age and service. However, immediate retirement ELIGIBILITY is displayed with YELLOW NUMBERS on a BLUE BACKGROUND (LIGHT NUMBERS on a DARK BACKGROUND on monochrome monitors). INELIGIBILITY for immediate retirement is displayed with YELLOW NUMBERS on a RED BACKGROUND (DARK NUMBERS on a LIGHT BACKGROUND). There are other conditions under which retirement eligibility differs from the general case depicted above.