Everyone asks us what is the number in the bottom right hand corner of my pay-stub?. Heres the answer and how you can make sure that money goes where you want it to as well. If you are a FERS Employee, you will see a deduction in the deduction section of your pay-stub that says Retire 8. This is the line item that contributes to the number in the bottom right hand corner. The bottom right hand corner only updates once a year though. The number in the bottom right hand corner is what YOU have paid into the bucket that will ultimately pay your pension. The post office puts in .92% and you put in .08% for the total of 1% you get on your pension. If you were to leave the post office early and you did not qualify for a pension, this money could be withdrawn by the employee. For those of you who plan on retiring through the post office you would not want to pull this money out. If you pull the money out, you would be lowering your pension. The post office has to disclose this amount to you because it is your own money you have contributed. Heres a scenario to consider: You retire and just a few years into retirement you and your spouse are killed in a auto accident. The money in the bottom right hand corner has not been fully paid out through your pension. To address situations like this, you need to elect a beneficiary. The form you will need to use to update the beneficiary for this money is SF3102. You can google the form number. We suggest you contact Shared Services to determine how many copies you need to complete as well as where to send the form. Please share with your friends. Very few of them know about how this works.
Posted on: Tue, 28 Oct 2014 18:32:39 +0000
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