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Originally Posted by Bill14564
Interesting that you can receive less on an annual basis but more on a cumulative basis. Less money adds up faster as a retiree? Interesting math.
Or, are you saying that 20 years at your high three beats all those years when you were making less? If so, then yes, I already make more on an annual basis now than I did back in '86 when I started.
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When I started as a Federal employee, I made $12,000 per year. My total cumulative income during 35 years of employment was $1.8 million. I know that because, just before I retired, I deposited $180,000 into the voluntary retirement fund, which allows you to deposit 10 percent of your total Federal career income. I have been retired for about 20 years and I have collected about $2 million in pension income, which exceeds my total Federal career income. My current pension annual income is slightly less than my highest Federal salary while working. But in a few years, the annual COLA increases will cause my annual pension income to exceed my highest Federal working salary. So, on an annual basis and on a cumulative basis, it is very possible for a Federal employee to make more money after retirement than before retirement. That is the math, and it is correct.
One thing I forgot to mention is that, when you retire with a 2-year sick leave balance, that time is added to your years of service, which increases your initial pension above the normal calculation for time actually worked.