THE FOREIGN SERVICE JOURNAL | SEPTEMBER-OCTOBER 2025 77 Twelve Retirement Pitfalls to Avoid RETIREMENT SUPPLEMENT John K. Naland served in the State Department Foreign Service for 29 years, including as director of the Office of Retirement. After retiring, he facilitated retirement planning seminars at the Foreign Service Institute for five years. He is a former AFSA president, State VP, and retiree VP, and is currently AFSA treasurer. During my service as director of the State Department’s Office of Retirement, I spent a lot of time assisting employees and retirees who were facing the delay or denial of some federal benefit due to their own failure to take necessary actions. Tips on what to do—and what not to do—when planning for retirement. BY JOHN K. NALAND While there is no need for you to spend weekends studying the Foreign Service Act and the Foreign Affairs Manual, you do owe it to yourself and your family to do due diligence in key areas. Below are a dozen common retirement benefits pitfalls and how to avoid them. For Everyone 1. Beneficiary Designations. There are sad cases every year of benefits not going to the immediate next of kin because the employee or annuitant neglected to update their beneficiary designations after marriage, divorce, or other relationship change. Federal survivor benefits are paid to whomever is designated on beneficiary designation forms, even if there are different instructions in the person’s will. The forms are TSP-3 (Thrift Savings Plan), SF-1152 (unpaid compensation for employees), DS-5002 (unpaid annuity for retirees), and SF-2823 (Federal Employees’ Group Life Insurance, or FEGLI). Employees and retirees who need to revise their TSP-3 should send it to TSP as explained on the form. Employees needing to update other forms should submit them to their agency’s human resources office. ISTOCKPHOTO/LUPLUPME
RkJQdWJsaXNoZXIy ODIyMDU=