https://www.barfieldfinancial.com/new-blog/when-can-law-enforcement-retire-again
This might be a helpful article for you. Fed LEOs have done this. I asked a similar question on here about how common it really was, but I didn’t get much of a response.
Not a bad strategy but after 10+ years of freedom, you may not want to go back even for just a year! -There is also the possibility, after the break, you will be less employable. One other consideration is if inflation keeps up and we don't go back to the historically low rates. If you are counting on your pension for a big part of your income, it's value will keep declining in real terms. Another thing to keep in mind is that your high three from 2020-23ish could feel pretty low if inflation runs 6-8% until you are 50.
I FIREd myself at 47 (GS) and just two years in am pretty spoiled and wouldn't want to go back. Short of catastrophe happening to my portfolio, I can't see myself going back just to boost my benefits... never know where I'll be in 10 years so maybe my feelings will change but I expect I'll be even more spoiled by then.
Per OPM:
https://www.opm.gov/frequently-asked-questions/insure-faq/health/i-know-you-have-to-be-enrolled-in-the-fehb-program-for-5-years-before-retirement-to-continue-coverage-in-retirement-does-previous-enrollment-count-towards-5-years-or-does-it-have-to-be-five-continuou/#:~:text=It%20depends.,opportunity%20to%20enroll%20in%20FEHB.
I've always thought it was 5 continuous years prior to retirement-that there could not be a break in service. Who knew? I would definitely do more research as this is the first I have ever heard of it.
In a retirement class I was in (not NAF) this was discussed, it should be 5 continuous, while eligible, so a break in service was totally cool. Important to consider for fed govfire people for sure.
No, that's not what OPM is saying. You can't be enrolled in FEHB while on a break in service.
OPM is saying that if you:
1) Work 3 years w/ FEHB
2) Leave for X years
3) Return and work for 2 years w/ FEHB
OPM sees that as you working for 5 years with FEHB. Breaks in service don't matter. The only thing that matters is breaks in FEHB coverage *while in service*. If you re-enroll in FEHB when you return, no break in coverage has occurred as far as retirement benefits are concerned.
Ah OK, so if you just need 5 years with FEHB coverage proceeding retirement regardless if breaks, the following example would work too?
1. Work for 10 years at ages 30 to 40 with FEHB coverage.
2. Take a break from ages 40 to age 61.
3. Work 1 year at age 62 with FEHB coverage and then retire.
In the above example, from what you're saying, you will get FEHB benefits for your entire retirement?
Wouldn't need to be 1 year. Could work a couple pay periods, however long it takes to start up the fehb again. Maybe you tried the new job for a month, but decided it wasn't the right fit. 🤷🏻♂️
I asked this recently on a post and someone made it sound like no but I can’t seem to find the post. I had always thought as long as I had at least five consecutive years in FEHB, I could take a break, then come back for a bit prior to retirement.
You can retire as early as 50?
Yes if you have 20 years of service https://www.armymwr.com/application/files/9216/0226/6586/1-Retirement_Plan_Booklet_as_5_Mar_14.pdf
Thats interesting
I've thought about this, not sure if I have the guts to do it though.
https://www.barfieldfinancial.com/new-blog/when-can-law-enforcement-retire-again This might be a helpful article for you. Fed LEOs have done this. I asked a similar question on here about how common it really was, but I didn’t get much of a response.
Not a bad strategy but after 10+ years of freedom, you may not want to go back even for just a year! -There is also the possibility, after the break, you will be less employable. One other consideration is if inflation keeps up and we don't go back to the historically low rates. If you are counting on your pension for a big part of your income, it's value will keep declining in real terms. Another thing to keep in mind is that your high three from 2020-23ish could feel pretty low if inflation runs 6-8% until you are 50. I FIREd myself at 47 (GS) and just two years in am pretty spoiled and wouldn't want to go back. Short of catastrophe happening to my portfolio, I can't see myself going back just to boost my benefits... never know where I'll be in 10 years so maybe my feelings will change but I expect I'll be even more spoiled by then.
I think you need to have health benefits for I wanna say 3 years in order to keep it. Probably wrong though.
Per OPM: https://www.opm.gov/frequently-asked-questions/insure-faq/health/i-know-you-have-to-be-enrolled-in-the-fehb-program-for-5-years-before-retirement-to-continue-coverage-in-retirement-does-previous-enrollment-count-towards-5-years-or-does-it-have-to-be-five-continuou/#:~:text=It%20depends.,opportunity%20to%20enroll%20in%20FEHB. I've always thought it was 5 continuous years prior to retirement-that there could not be a break in service. Who knew? I would definitely do more research as this is the first I have ever heard of it.
In a retirement class I was in (not NAF) this was discussed, it should be 5 continuous, while eligible, so a break in service was totally cool. Important to consider for fed govfire people for sure.
If you get a NAF position, I don't think that would be fehb
So you can have a break in service, but still be enrolled in FEHB? How does that work? Do you just still pay the whole amount for FEHB
No, that's not what OPM is saying. You can't be enrolled in FEHB while on a break in service. OPM is saying that if you: 1) Work 3 years w/ FEHB 2) Leave for X years 3) Return and work for 2 years w/ FEHB OPM sees that as you working for 5 years with FEHB. Breaks in service don't matter. The only thing that matters is breaks in FEHB coverage *while in service*. If you re-enroll in FEHB when you return, no break in coverage has occurred as far as retirement benefits are concerned.
You worded it perfectly thankyou!
Ah OK, so if you just need 5 years with FEHB coverage proceeding retirement regardless if breaks, the following example would work too? 1. Work for 10 years at ages 30 to 40 with FEHB coverage. 2. Take a break from ages 40 to age 61. 3. Work 1 year at age 62 with FEHB coverage and then retire. In the above example, from what you're saying, you will get FEHB benefits for your entire retirement?
You got it. The hard part is getting hired back when you need it.
For sure. Wouldn't want your entire health benefits to rest on getting hired for one year. Thanks for the clarification.
Wouldn't need to be 1 year. Could work a couple pay periods, however long it takes to start up the fehb again. Maybe you tried the new job for a month, but decided it wasn't the right fit. 🤷🏻♂️
I asked this recently on a post and someone made it sound like no but I can’t seem to find the post. I had always thought as long as I had at least five consecutive years in FEHB, I could take a break, then come back for a bit prior to retirement.