Understanding The Civil Service Retirement Plan

The civil service retirement system is in place for employees of
the government.  The retirement system for those that work for the
federal government went into effect in 1920 and has undergone many
changes since that time.

The civil service
retirement system is a benefit that retirees are entitled to, which is
clearly defined. The public employee’s retirement system allows
employees to make a financial contribution towards retirement financial
planning.

The public employee’s retirement system
includes employees contributing to their retirement plan, but they do
not generally have to make additional contributions to the special
security systems, as their retirement plans differs from that plan.
However, they are required to pay towards disability insurance and
Medicare.

Retirement financial
planning for federal employees can include a contribution from their
pay of up to ten percent. However, they are not required to contribute
the full ten percent, which is made tax free or before taxes are paid
on earned income.

These fund can be utilized in
certain circumstances, when the employee selects early retirement. For
example, those that become disabled, can collect from  the fund early
if they are unable to work. In fact may of the rules which govern
Social Security and Medicare, also apply to the public employee’s
retirement system. Early retirement may also include involuntary
separation from the employer and determinations about the fund will be
made individually, based on the specific circumstances of each case.