FERS OPM Medical Retirement: Falling Through the Cracks

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Where did that phrase originate from? It often refers to small things slipping through without getting noticed because of their insignificance, whether because of size or lack of notoriety. Children who lack popularity are often thought to be in danger of falling through the cracks — of not being given their due attention; of being ignored; of failing to be noticed. The amazing thing is that we ever even notice it at all; for, by and large, most of us fall into the category of enforced anonymity — of being in danger of falling through the cracks. Whether you are the “star” of the class or the “appointed one” whose every move is ooh-ed and ahhh-ed — most everyone else is of the ordinary ilk, unnoticed, ignored or otherwise already having fallen through the cracks.

Federal employees who suffer from a medical condition fall into that category — of either having fallen through the cracks, or about to fall through the cracks. This is because the medical condition itself relegates the Federal and Postal employee into the category of the “outcast” — of those who have fallen through the cracks. Contact an attorney who specializes in Federal Disability Retirement Law, and see whether or not you might qualify to fall through the cracks of the U.S. Office of Personnel Management and land upon the other side where you can become a Federal Disability Retirement annuitant, where falling through the cracks will allow you to prioritize your life and focus upon the more important elements of a life of health and well-being
Citation:.Robert R. McGill/Lawyers.com

TSP G-Fund: Nag or Derby Winner?

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With inflation running at 8.3% year-to-year many federal-military Thrift Savings Plan investors are looking for a safer haven both for their current account balance and future purchases.

After a record long run, the stock market has been acting funny. A European war, worldwide pandemic and broken supply chain will do that. Both to stock markets and our mental wellness.

The price-at-the-pump, which the media and politicians love to track, has never been higher. And an 80-1 odds late starter won the Kentucky Derby. Go figure!

Each time there is an economic bump in the road, and this one is more like a sink hole, some people panic. And feel they need to do something. Anything, but something. And sometimes they are correct. Which is where the super-safe, never-has-a-bad-day G fund comes in. Of all the options in the TSP, it is the only one that doesn’t have a government guarantee that it will not lose money. While stock indexed funds like the C, S and I options have by far the best track record, they can and do tank — and currently have. So in that sense the G fund looks good to many with its recently increased 3% guaranteed return. The highest in decades. It fits the definition of a safe haven.

Many financial planners say that depends on what the definition of safe is. If it’s not losing money, bingo! But if it is also not keeping pace with inflation that also means that overtime your nest egg will shrink in value. A 3% return, over time, isn’t much comfort if your available funds shrink in value. Federal CSRS retirees get full inflation adjustments each January, like Social Security. But for FERS retirees, which includes most current workers, there is a diet COLA feature. Over times of high (3% or more) inflation that diet offset can reduce the buying power of retirees dramatically. So I asked Arthur Stein, a well-known Washington area financial planner for his thoughts on the G-fund. Most of his clients are active or retired feds. Several are TSP millionaires. And he’s a frequent guest on FNNs Your Turn radio show on Wednesdays. Here’s what he said:

There are two advantages to the G Fund: Zero volatility and all holdings are guaranteed by the government.

However, G (and F) Fund investors need to recognize that, historically, long-term investments in the G and F Funds lost purchasing power. G Fund annual returns have gradually declined since it was introduced in April of 1987. In 2021, the return was 1.4%, 84% lower than in 1988. The cost of living (inflation) more than doubled over this period. Follow link to read more: TSP’s G-fund: Nag or derby winner? | Federal News Network

TSP Mutual Fund Window – Key Dates

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Service Provider Transition Cutover Dates & Deadlines
As a reminder, the consequences of not following the provided requirements and deadlines will result in your inability to interact with the new TSP environment. This may lead to breakage, additional administrative burden, financial burden, and disruptions to your current interaction with the TSP.

Cutover Dates & Deadlines for Agencies/Services:
• May 24th, 2022: Final day agency/service payroll files can be submitted to the TSP and final day for agencies/services to use the TSP Data Submission Application (DSUB) to submit a payroll file and/or journal voucher.

• May 25th, 2022, through the first week of June: Blackout period in which agency/service personnel will have read-only access to the legacy TSP DSUB system and no access to the new Agency Portal. Files submitted via secure connection to the new Agency Portal during this time will be accepted and processed the first week of June.

• First week of June: Authorized agency/service personnel gain access to the new Agency Portal. Agency/service payroll files can be reviewed and submitted via the new Agency Portal. Agencies/services will continue to have read-only access to the legacy TSP DSUB system through 6/10/2022.

Other Cutover Dates & Deadlines:
• May 16th, 2022, through the first week of June: Some key transactions will be temporarily unavailable (e.g., investment transactions; loan requests; withdrawals and distributions).

• May 26th,2022 through the first week of June: All transactions and services are temporarily unavailable, including My Account and ThriftLine.

AGE MY WAY IN MAY

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May is a month to celebrate the older Americans in our country and honor their lives and the accomplishments they still have ahead of them.

Older Americans Month was established in 1963 by President John F. Kennedy to bring awareness to the types of programs and support older Americans need to succeed. The Administration of Community Living sets a theme for Older Americans Month every year. This year’s theme is “Age My Way.” Community support, participation, and accessibility are essential for people of all ages, especially for older Americans.

If you identify as an older American, we have some tips to help you take care of your mind, body, and finances:

• Stay Active: Physical activity is important for people of all ages, but it’s vital for older Americans. If you don’t have complete mobility, you     may still want to add some gentle physical activity to your routine.

• Grow Your Community: Socialization helps keep your mind sharp as you age but making new friends can seem daunting. If you have a passion, it’s likely that someone else shares that passion, too.

• Refresh Your Estate Strategy: As you age and life continues to change, it’s a good idea to revisit your estate strategy to make certain it still reflects your goals. Now’s a great time to have those conversations with your family members to make sure everyone knows what your wishes are.

The FED Approves Half Point Interest Rate Rise 

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The FED Approves Half Point Interest Rate Rise 

The Federal Reserve approved a rare half-percentage-point interest rate increase and announced plans to shrink its $9 trillion asset portfolio starting next month in a double-barreled effort to reduce inflation that is running at a four-decade high. 

The moves, announced after a two-day policy meeting Wednesday, will raise the central bank’s benchmark federal-funds rate to a target range between 0.75% and 1%.

 Together, the steps mark the most aggressive Fed tightening of monetary policy at one meeting in decades, aimed at rapidly reducing the economic stimulus that has contributed to rising price pressures. The Fed, which usually lifts interest rates in quarter-percentage-point increments, last raised rates by a half point in 2000.

The rate-setting Federal Open Market Committee approved the decision unanimously. In a statement, the committee said it “anticipates that ongoing increases in the target range will be appropriate,” setting the stage for another large rate rise at the Fed’s meeting next month.

The statement cited the potential for Covid-related disruptions in China to sow further chaos to global supply chains that could keep inflation elevated. “The Committee is highly attentive to inflation risks,” it said.

Fed officials also finalized plans to start shrinking their mammoth holdings of Treasury and mortgage securities passively–that is, by allowing bonds to mature without reinvesting the proceeds into new securities rather than by selling them in the open market.

Follow link to read more. https://on.wsj.com/3LPTSWV