Federal Employee?  We are here to help you make the best decisions for your future

Federal Retirement Systems Explained:

FERS vs. CSRS

Federal employees are covered by one of two main retirement systems:

• FERS (Federal Employees Retirement System) - for most employees hired after 1983

• CSRS (Civil Service Retirement System) - for employees hired before 1984

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Here’s a simple breakdown of how each system works:

FERS (Federal Employees Retirement System)

Most current federal employees are under FERS. It has three parts, like a 3-legged stool:

1. FERS Basic Benefit (Pension)

   • A monthly retirement check from the government

   • Based on your salary and years of service

   • You contribute a small % of your paycheck; your agency adds more

2. Social Security

   • You pay into Social Security (just like private-sector workers)

   • You’ll get monthly payments starting in retirement, based on your lifetime earnings

3. Thrift Savings Plan (TSP)

   • Like a 401(k), where you save your own money

   • The government matches up to 5% of what you put in

   • You choose how it’s invested (stocks, bonds, etc.)

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 FERS = Pension + Social Security + TSP
It gives you flexibility and encourages saving for retirement.

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CSRS (Civil Service Retirement System)

CSRS is the older system, mainly for federal employees who started before 1984. It works differently:

1. CSRS Pension Only

   • A much larger monthly pension than FERS

   • Based only on your salary and years of service

   • You contribute about 7–8% of your pay

2. No Social Security (for most)

   • CSRS employees usually don’t pay into Social Security while working

   • You might get limited benefits if you worked a Social Security job before or after federal service

3. TSP is optional

   • You can still contribute to the Thrift Savings Plan

   • No government match for CSRS employees

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CSRS = Big Pension + Optional TSP
It’s a strong pension-focused system, but with less flexibility and no Social Security for most.

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Understanding FEHB:

   Your Federal Health Insurance Benefits                                         

The Federal Employees Health Benefits (FEHB) Program is one of the best health insurance programs in the country—and it’s available to federal employees, retirees, and their families.

 

What is FEHB?

FEHB is the federal government’s health insurance program, offering a wide range of private insurance plans at group rates. The government covers about 70–75% of the premium, making it more affordable than most private plans. You get to choose the plan that works best for you, from low-cost HMOs to nationwide PPOs like Blue Cross Blue Shield, GEHA, and others.

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Key Features of FEHB:

Wide selection of health plans (HMOs, PPOs, HDHPs)

•Government pays a large share of the premium

•Covers you and your eligible family members

•Keeps covering you in retirement (if you meet eligibility)

•No waiting period means coverage starts quickly

•Can be combined with Medicare in retirement for enhanced coverage

 

​How We Can Help

Choosing the right FEHB plan can feel overwhelming—there are dozens of options, and each plan has its own premiums, provider networks, and coverage details. The right choice depends on:

•Your health needs

•Your family size

•Your location

•Whether you're working or retired

•If you're coordinating with Medicare

 

At Capital Management Consultants, we specialize in helping federal employees and retirees understand their FEHB options and make confident, informed decisions that match their long-term health and financial goals.

 

Let’s Talk! If you're unsure which plan is right for you—or how your FEHB coverage fits into your retirement planning—we’re here to help. Our team has experience guiding federal employees through every step of their benefits, from enrollment to retirement and beyond. Reach out today to schedule a free consultation.

​ Understanding Your TSP: The Federal 401(k)

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The Thrift Savings Plan (TSP) is a retirement savings plan for federal employees and members of the uniformed services. It’s similar to a 401(k) in the private sector and is one of the most powerful tools you have to build wealth for retirement.

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                   How TSP Works:

You contribute a portion of your paycheck—either pre-tax (Traditional) or after-tax (Roth)—into your TSP account. These contributions grow over time through your chosen investments.

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If you're covered under FERS, the government will:

• Automatically contribute 1% of your salary

• Match up to 4% more when you contribute—up to a total of 5% free money

                   Investment Options

You can invest your TSP in a variety of low-cost funds:

• G Fund – U.S. Treasury securities (very low risk)

• F Fund – Bonds

• C Fund – Large-cap U.S. stocks (S&P 500)

• S Fund – Small and mid-cap U.S. stocks

• I Fund – International stocks

• L Funds – Target-date funds that adjust automatically as you near retirement

             

                Leaving Federal Service?

If you leave your job as a federal employee or retire, you have several options for your TSP:

• Leave it in the TSP

• Withdraw it as cash (may trigger taxes and penalties)

• Roll it over into an IRA for greater investment flexibility and control

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                   How We Can Help

At Capital Management Consultants, we specialize in helping federal employees and retirees:

• Choose the right TSP contribution strategy

• Understand Traditional vs. Roth TSP

• Align TSP investments with your retirement timeline

• Plan tax-smart withdrawals in retirement

• Roll over your TSP into an IRA if you change jobs or retire

• Coordinate TSP with your pension, FEHB, and Social Security

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Have questions about your TSP or thinking about your next step?
Our team understands the unique retirement benefits of federal employees. Schedule a free consultation—we’ll help you make the most of your TSP now and in the future.

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FEGLI (Federal Employees' Group Life Insurance) is the life insurance program for federal employees. It’s the largest group life insurance plan in the country, and it provides financial protection for your loved ones in the event of your death.

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                   How FEGLI Works 

When you start working as a federal employee, you're usually automatically enrolled in Basic coverage unless you opt out. From there, you can choose to add more coverage based on your needs.

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There are four parts to FEGLI:

1. Basic Insurance

   • Automatically provided unless waived

   • Coverage = Your salary rounded up to the next $1,000 + $2,000

   • The government pays about 1/3 of the cost

2. Option A – Standard

   • Adds $10,000 of coverage

3. Option B – Additional

   • Up to 5x your annual salary in extra coverage

   • You pay the full cost, and it increases with age

4. Option C – Family

   • Coverage for your spouse and eligible children

   • You choose 1 to 5 multiples of coverage

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​                  Things To Keep In Mind

• Costs increase as you get older, especially for Option B and C

• You can only change coverage during a qualifying life event or an open enrollment period

• Many employees carry more insurance than they realize—or not enough for their current needs

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                       How We Can Help

At Capital Management Consultants, we help federal employees:

• Review their current FEGLI coverage

• Decide if additional private life insurance might be more cost-effective

• Explore options if they’re retiring or leaving federal service

• Make smart decisions about beneficiaries, payout options, and coverage levels

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Every family and situation is different. We’re here to answer your questions and make sure you have the right life insurance strategy to protect what matters most.

 

   Unsure if your FEGLI coverage is enough?
Let us help you review your benefits and plan ahead. Schedule a no-obligation consultation with our team today.