An accomplished financial professional, Chester “C. Edziu” Pacana draws upon experience with a range of financial, insurance, and retirement issues in his work as a conservative wealth management planner with DeRosa & Associates in Tennessee. Among other areas of focus, Chester Pacana and the team at DeRosa & Associates offer guidance on topics related to the Federal Employee Retirement System (FERS).
Created in 1987, FERS is the retirement plan for all civilian employees who work for the US government, including the legislative, executive, and judicial branches. FERS currently comprises three major parts:
*Basic Benefit Plan: Similar to a pension, this element of the plan will pay the employee a fixed monthly sum, known as a monthly annuity, upon retirement. The amount varies, depending on several factors, including how long the employee worked for the federal government.
*Social Security: Virtually all workers in the United States pay into the Social Security system, which provides a guaranteed stream of payments after retirement age. Federal workers also participate in this system, with contributions made through automatic deductions from regular paychecks.
*Thrift Savings Plan (TSP): Similar to the 401(k) plans that many workers in the private sector have access to, a TSP is an investment vehicle that offers a range of tax benefits and investment options. Automatic contributions to the TSP are taken out of each paycheck, with employees having the option of making additional contributions if they so choose.
