Promotions and Retirement

Federal Benefit Advisory

Many times, throughout the year, an employee has an opportunity to stay on the job, put retirement off for a while to take or apply for promotion. When the promotion is approved, the picture has changed, especially for the retirement. Higher salary which leads to a higher H-3, and a bigger retirement. The most impact will come when the higher salary is drawn for three years, therefore raising the H-3, but also, you have added 3 or more years to your calculation and in some cases, age may reach or exceed age 62, also, a higher calculation rate.

An example:  Helen is 59 years old; she has achieved her MRA and 30 years.  She makes $75,000.00 per year:

  • $75,000.00 x 1.0 x 30 (years) = $22,500.00/$1,875.00 per Mo

Helen applied for promotion, and was accepted, and plans on working 3 more years.

  • $90,000.00 x 1.10 x 33 (years) = $32,677.00/ $2,723.00 pe mo.

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