AFSA NEWS Prepping for Your Retirement Every year we lose colleagues and friends to retirement, but we tend to see more retirements in years of political transition. Not surprisingly, then, 2025 is shaping up to be a big year. So, what better time than to remind members that it’s never too early to prepare? Whether you’re thinking about retiring in 12 months or 12 years, plan early and plan to change your plan. There are many personal and professional questions to answer ahead of retiring: Can I afford it? Can I work for USAID or an implementing partner after I retire? How much will my pension be, and how much will I pay for health insurance? How do I withdraw money from my TSP? Helpful resources are available through HCTM (https://my.usaid.gov/HCTM/ esb-retirement) and AFSA (https://afsa.org/retirementresources), but the answers will depend on your situation. First, you need to become familiar with the various terms and types of retirement. Do you know your minimum retirement age? Are you planning to defer or postpone retirement? Are you eligible for a retirement supplement? Did your Peace Corps or other U.S. government (USG) service get credited correctly? The answers affect not only your retirement pay but also the process and paperwork you need to prepare. The agency has a handy “FACT Sheet” to walk you through these definitions and get you started on your retirement paperwork. Step 1: check your eOPF (this isn’t the only time I’ll remind you to refer to your eOPF—it’s an important document). Too often, AFSA talks with FSOs trying to retire, or already retired, who run into complications that delay their final day, the start of their retirement checks, or the amount of their monthly payment. The most common issue is creditable service. When you joined, you most likely completed a form listing any previous USG employment. Depending on the type of position, you received “credit” for that service. This went to setting your service computation date. It also may have allowed you to “buy in” to the pension system for those years served if you were not previously part of a USG retirement plan. Sadly, many FSOs forget to buy in for past service, notably prior Peace Corps service. Missing service years or failure to buy in will reduce your pension. If you have creditable service but failed to buy those years back, it may not be too late. If you’re uncertain whether you did it correctly, check your eOPF file (second eOPF reminder!). The State Department has an excellent primer on the Foreign Service retirement system (www.state.gov/rnet/), and USAID FSOs are 100 percent covered by this system. The second most common mistake is financial. As FSOs, we have three retirement income streams: pension, Thrift Savings Plan (TSP), and Social Security. We control two of these. Our pension is determined by the average of our “high three” salary years, while our TSP is determined by our contributions and investment portfolio. You can maximize your pension by serving longer at higher levels and buying in for creditable service, but there is a limit. Your eOPF should include all your SF50s showing every step and grade increase throughout your career (another eOPF reminder). Double-check your eOPF every year to ensure these are in your file. AFSA has many retirement resources for members and sponsors several retirement seminars each year. You can also access a list of investment advisers, financial planners, and other experts via the AFSA website. The agency holds similar retirement and investment seminars throughout the year. The best advice I got when I joined was to maximize my TSP contributions. Check your TSP account at least once a year to make sure your salary deductions are correct (not an eOPF reminder, but a good reminder nonetheless). Knowing your portfolio distribution and your account balance will help you plan your retirement. Finally, you can find additional planning resources and a good retirement calculator to help you strategize your retirement at https:// tsp.gov. It’s never too early, but it can be too late. Making a smooth transition to a secure retirement is largely within your control, but it can get complicated. Save yourself some anxiety by seeking out advice and checking your eOPF (final reminder!) and your TSP account at least once a year. n USAID VP VOICE | BY RANDY CHESTER AFSA NEWS Contact: chester@afsa.org | (202) 712-5267 AFSA has many retirement resources for members and sponsors several retirement seminars each year. 54 OCTOBER 2024 | THE FOREIGN SERVICE JOURNAL
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