FERS Retirement Planning | NJ Federal Employees

Federal Retirement Planning for South Jersey and the Jersey Shore. Your FERS Pension, TSP, and Social Security, Finally Coordinated.

Your federal career came with three retirement benefits — a pension, a TSP account, and Social Security. Coordinating all three into a retirement income plan that works from your first day out of service takes more than a benefits calculator.

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Federal employees covered under FERS have access to one of the most comprehensive retirement benefit packages available to any American worker. The challenge is that most federal employees spend their careers focused on their work — not on the complex decisions that determine whether those benefits deliver their full value at retirement.

At Genesis Wealth Advisor Group, we work with federal employees in South Jersey and surrounding states to help them understand their FERS benefits, make informed decisions before they retire, and build a retirement income plan that coordinates every component of what they've earned.

We are joined in this work by Steve Donnelly, Federal Retirement Consultant (FRC^®), an affiliated advisor with specific training in federal employee retirement benefits.

By The Numbers

~95,000
Federal employees living in New Jersey

44,000+
Military and civilian personnel at Joint Base McGuire-Dix-Lakehurst — New Jersey's second-largest employer

$217,291
Average TSP account balance for active FERS participants (2026)

3
Income sources — pension, TSP, and Social Security — that must be coordinated into one retirement income plan

Sources: National Treasury Employees Union, 2024; Federal Retirement Thrift Investment Board, 2026; Air Force Expeditionary Center.

Is This You?

You're a federal civilian employee within 5-10 years of retirement and want to understand exactly what your pension will pay
You work at or near Joint Base McGuire-Dix-Lakehurst, a VA medical center, Social Security Administration office, or another federal agency in New Jersey
You have a TSP account but aren't sure how it's invested, what you should be doing differently, or how to draw from it in retirement
You've heard about the FERS Supplement but aren't sure whether you qualify, how much it pays, or what happens when it stops at age 62
You're trying to decide the right retirement date — and whether waiting to 62 with 20 years would meaningfully change your pension
You want to know whether to keep FEHB coverage in retirement or transition to Medicare — and whether you can do both
You're not sure how to sequence income from your pension, TSP, and Social Security to minimize taxes and maximize longevity
You're approaching retirement and nobody has ever sat down and shown you the full picture

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What Is FERS and Why Does It Require Coordination?

The Federal Employees Retirement System (FERS) is a three-part retirement system for civilian federal government employees. Unlike a single pension plan, FERS combines three distinct income sources — each with its own rules, decisions, and planning considerations.

Most federal employees know they have all three components. Fewer understand how the decisions you make about each one affect the others — and how all three interact with taxes, healthcare, and a survivor's benefit. That coordination gap is where retirement outcomes are won or lost.

What Are Your Three FERS Benefits?

What is the FERS Basic Benefit Plan and how is your pension calculated?

Your FERS pension is a defined benefit — a monthly payment for life based on your years of service and your High-3 average salary (the average of your three highest consecutive years of base pay).

The basic formula:

1% × High-3 Average Salary × Years of Creditable Service

If you retire at age 62 or older with at least 20 years of service, the multiplier increases to 1.1% — a meaningful difference over a 20-30 year retirement.

Example: A federal employee with a $90,000 High-3 salary and 30 years of service retiring before 62 would receive approximately $27,000 per year ($2,250/month). Retiring at 62 with the same record would yield $29,700 per year ($2,475/month).

Example is hypothetical and for illustrative purposes only. Individual results will vary based on actual service history, salary, and retirement date.

Knowing your exact pension calculation — and how the timing of your retirement affects it — is one of the most important steps in your pre-retirement planning.

How does the Thrift Savings Plan (TSP) work in retirement?

The TSP is the federal government's version of a 401(k). Your agency matches contributions up to 5% of your base pay, and the account grows tax-deferred until withdrawal.

At retirement, your TSP becomes one of your primary income sources. The decisions you face include:

How to invest the balance in the years approaching retirement
Whether to leave funds in the TSP or roll over to an IRA
How much to withdraw each year — and in what sequence relative to your pension and Social Security
Whether traditional TSP withdrawals or Roth TSP contributions make more sense given your tax situation

How does Social Security fit into a FERS retirement?

Federal employees covered under FERS pay into Social Security and are entitled to retirement benefits. The timing of when you claim — and how it coordinates with your pension and TSP withdrawals — significantly affects your total lifetime income.

Many FERS employees also qualify for the FERS Supplement, which partially bridges income from retirement until Social Security begins at age 62.

What Decisions Will Shape Your FERS Retirement Outcome?

When is the right time to retire under FERS?

Your Minimum Retirement Age (MRA) depends on your birth year and ranges from 55 to 57. Retiring at your MRA with fewer than 30 years of service has specific implications — including a potential age reduction penalty of 5% per year under age 62. Understanding the exact impact of your retirement date on your pension is essential before you commit.

What is the FERS Supplement and what happens when it stops?

The FERS Supplement is a temporary benefit paid to eligible employees who retire before age 62. It approximates the Social Security benefit you've earned from federal service and is paid until you reach 62 — at which point the supplement stops and Social Security begins.

Not all FERS employees qualify. Whether you're eligible, how much it pays, and how to plan around the income transition when it ends are questions worth answering well before retirement.

Discuss Your Options

Can you keep FEHB coverage after you leave federal service?

The Federal Employees Health Benefits program is one of FERS's most valuable — and most underappreciated — benefits. If you retire with at least five years of federal service and have been enrolled in FEHB for the five years immediately before retirement, you can continue coverage in retirement.

Whether to keep FEHB, add Medicare Part B at 65, or coordinate both is one of the most consequential healthcare decisions a federal retiree makes. And one of the most commonly mishandled.

What happens if you waive the survivor benefit election?

At retirement, you'll be asked whether to elect a survivor benefit for your spouse. A full survivor benefit reduces your pension by 10%. Waiving it means your spouse receives nothing from the pension if you predecease them.

This decision cannot easily be reversed after retirement and has significant implications for spousal income security, estate planning, and life insurance needs. It should not be made without understanding the full trade-offs.

How Does Genesis Help Federal Employees Plan for Retirement?

Our work with federal employees begins before retirement — ideally 3-5 years out — when the key decisions can still be made thoughtfully and with full information.

"Federal employees spend decades building one of the most comprehensive retirement packages in the country — and then spend the last few years before retirement hoping they're making the right decisions about it. Our job is to sit down with you, go through the numbers, and make sure those decisions are made from a position of real clarity."

— Scott Jones, BFA^™ CPFA^® CRPC^® RFC^®

What does a FERS retirement review actually include?

Calculate your projected FERS pension under different retirement dates and scenarios
Review your TSP allocation and build a drawdown strategy aligned with your income needs
Model the FERS Supplement and plan around the income transition at age 62
Evaluate your FEHB and Medicare options in the context of your overall retirement budget
Integrate your federal benefits with any other income, assets, or planning needs
Work through the survivor benefit election with your spouse's financial security in mind
Coordinate with estate planning, long-term care planning, and any VA benefit planning where applicable

Request a Complimentary FERS Review

Who is Steve Donnelly and why does his background matter?

We are joined in this work by Steve Donnelly, FRC®, an affiliated Federal Retirement Consultant with specific training in FERS, TSP, FEHB, FEGLI, and Social Security coordination for federal employees. The FRC® designation is focused entirely on federal employee retirement — not general financial planning.

Why does it matter that we're independent?

As an independent fiduciary advisory firm, we have no proprietary products to recommend and no institutional relationship compensating us for where your TSP goes. Our work is to help you make the best decisions for your retirement — not ours.

Common Questions

What is the FERS Minimum Retirement Age and how does it affect my pension?

Your MRA depends on your year of birth and ranges from 55 to 57. Retiring at your MRA with at least 30 years of service entitles you to an immediate, unreduced pension. Retiring at your MRA with fewer than 30 years but at least 10 years may subject your pension to an age reduction penalty of 5% per year under age 62 — unless you defer your pension to a later date. Understanding exactly how your retirement date and years of service interact is one of the most important calculations in your pre-retirement planning.

Should I leave my TSP in the TSP at retirement or roll it over to an IRA?

Both options have merit, and the right answer depends on your specific situation. The TSP offers very low expense ratios and access to the G Fund — a unique government securities fund with no principal risk. An IRA rollover offers greater flexibility, broader investment options, and easier integration with other accounts in a coordinated withdrawal strategy. We evaluate both in the context of your full retirement income picture before making a recommendation.

When does the FERS Supplement stop and what do I do when it does?

The FERS Supplement stops the month you reach age 62, regardless of when you began receiving it. At that point, you become eligible to begin Social Security. Planning the transition — including whether to start Social Security at 62 or delay it for a higher benefit — requires modeling your income from all sources together. This is one of the key sequencing decisions we work through with federal employees approaching retirement.

Can I keep my FEHB coverage in retirement and also enroll in Medicare?

Yes, and many federal retirees do both. At age 65, Medicare Part A is typically premium-free for those with sufficient work history. Whether to add Medicare Part B alongside FEHB depends on your health needs, the cost of your FEHB plan, and how the two coordinate for coverage. Some FEHB plans waive certain cost-sharing when Medicare is primary. We review the options in the context of your retirement budget.

How does FERS retirement planning connect to estate planning and long-term care?

More directly than most people realize. Your survivor benefit election affects your spouse's income security and your life insurance needs. Your TSP and pension have specific beneficiary designation rules that need to coordinate with your estate plan. If long-term care becomes a need later in retirement, your fixed pension income may limit your options differently than a retiree living entirely off savings. We look at federal retirement benefits as one component of a broader retirement and legacy plan — not in isolation.

Your Federal Career Earned You Three Benefits. Let's Make Sure They Work Together.

Whether retirement is two years away or ten, the decisions you make about your FERS pension, TSP, and Social Security will shape your financial picture for decades. We'll help you understand exactly what you have, what your options are, and how to build a plan that makes the most of it.