Veterans Affairs Pharmacist Retirement

Started by slacker08
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slacker08

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Greetings all!

Can anyone provide some insight regarding the retirement options available for pharmacists working within the VA system?

I have heard about a 20-year retirement. Is there such an option? If so, how is your retirement calculated? I have heard something like X% of your best 3 years.

I've searched the forum throughly, and one post mentioned while the retirement used to be between 60-80%, it is now around 30%. This would be a DRASTIC change!

Any insight would be greatly appreciated. Thank you!
 
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If it's Public Health Service, it's 50% of final salary annually after 20 years, 80% after 30 years.....you start out as a lieutenant pay wise and move up.

I've thought about it. You want job security? Gov't is it.
 
With regards to the original poster -

It's very complicated to explain, so I second the website www.opm.gov/retire for a very lengthly explanation of the retirement process.



clarkbar said:
Is it hard to get a job at a VA after graduation, with no experience? What kind of a resume would a staff pharmacist have to have?
Click to expand...

I graduated from pharmacy school and worked for 1 year in community pharmacy and then applied for and subsequently was offered a position with the VA - which I took, of course! You do NOT necessarily need a residency for a regular staff position - or for some clinical spots for that matter (at least at the location I am at, experience is looked upon highly) I'm sure if there was competition for a specific spot, it would help to have a residency though.
 
slacker08 said:
Greetings all!

Can anyone provide some insight regarding the retirement options available for pharmacists working within the VA system?

I have heard about a 20-year retirement. Is there such an option? If so, how is your retirement calculated? I have heard something like X% of your best 3 years.

I've searched the forum throughly, and one post mentioned while the retirement used to be between 60-80%, it is now around 30%. This would be a DRASTIC change!

Any insight would be greatly appreciated. Thank you!
Click to expand...


From what I understand.. the VA has a thrift saving plan which is like a 401K and they match up to 5% of the salary. I don't think there is any sort of "pension" so to speak (meaning you automatically get x% of your salary on a yearly basis after Y# of years of work whether you contributed to your retirement saving account or not.) This what I gathered after speaking to my friend who was hired last august as a clinical pharmacist.

Please correct me if you head othewise. As far as that website...I found it confusing maybe I'm just tired and/or lazy
 
Last edited:
Well, you actually do get a percentage of your salary after you retire but it takes into account not only your age at retirement, but also the number of years of service you have acquired.



Computation

Your basic annuity is computed based on your length of service and “high-3” average salary. To determine your length of service for computation, add all your periods of creditable service, then eliminate any fractional part of a month from the total.
High-3 Average Salary

Your “high-3” average pay is the highest average basic pay you earned during any 3 consecutive years of service. These three years are usually your final three years of service, but can be an earlier period, if your basic pay was higher during that period. Your basic pay is the basic salary you earn for your position. It includes increases to your salary for which retirement deductions are withheld, such as shift rates. It does not include payments for overtime, bonuses, etc. (If your total service was less than 3 years, your average salary was figured by averaging your basic pay during all of your periods of creditable Federal service.)


Computation for Non-Disability Retirements

Here is how the basic FERS annuity formula is calculated:
FERS Basic Annuity Formula​
Under Age 62 at Separation for Retirement
Or
Age 62 or Older With Less Than 20 Years of Service
1 percent of your high-3 average salary for each year of serviceAge 62 or Older at Separation With 20 or More Years of Service 1.1 percent of your high-3 average salary for each year of service
 
Here is how the basic FERS annuity formula is calculated:
FERS Basic Annuity Formula​
Under Age 62 at Separation for Retirement
Or
Age 62 or Older With Less Than 20 Years of Service
1 percent of your high-3 average salary for each year of serviceAge 62 or Older at Separation With 20 or More Years of Service 1.1 percent of your high-3 average salary for each year of service[/QUOTE]


Hmmm looks like there is one... maybe my friend is getting more than than had hoped for!!!

So it looks like somone who is age 62 and worked 20 years and had a salary of about $100,000 a year would get about $22,000 a year. Not bad!
 
If I became a pharmacist at 24, and then worked for 20 years, I could retire at 44. AWESOME! 👍 Then I would probably have a decent amount of assets to supplement my income. I will probably tour the world!
 
WVUPharm2007 said:
If it's Public Health Service, it's 50% of final salary annually after 20 years, 80% after 30 years.....you start out as a lieutenant pay wise and move up.

I've thought about it. You want job security? Gov't is it.
Click to expand...


that is gone now. they did away with that back in the 90s. there was a time when people were given the options of staying on the penchant type thing or switch to 401k type.

now the VA system is all 401k. there is no big salary based penchant anymore.
 
MdBrndPhrmcst said:
From what I understand.. the VA has a thrift saving plan which is like a 401K and they match up to 5% of the salary. I don't think there is any sort of "pension" so to speak (meaning you automatically get x% of your salary on a yearly basis after Y# of years of work whether you contributed to your retirement saving account or not.) This what I gathered after speaking to my friend who was hired last august as a clinical pharmacist.

Please correct me if you head othewise. As far as that website...I found it confusing maybe I'm just tired and/or lazy
Click to expand...


you are correct. that whole penchant thing is LONG GONE. of course there is a lot of rumors spread by people but that percent of salary thing does not exist in the va anymore. it is like that 401k setup.
 
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This thread is driving me crazy, because we just had a guest lecture presented by pharmacist officers in the USPHS. They gave us the same spiel about pension plans, but they were referring to employees "enlisted" in the USPHS.

Are you talking about public or "enlisted" employees working at the VA? I think there's a difference.

http://www.usphs.gov/profession/pharmacist/compensation.aspx It looks like they offer both:

  • A retirement plan with benefits eligibility beginning after 20 years of service
  • Thrift Savings Plan [retirement savings and investment plan similar to a 401(k)].
Basically, this is what we were told - "After 20 years you would receive 50% of your highest monthly basic pay (usually your current basic pay). After 30 years you would receive 75% of your highest pay."
The rest of the info is at this website: http://www.cdc.gov/od/occp/personnel/retirement/.
 
Last edited:
FERS is a retirement plan that provides benefits from three different sources: a Basic Benefit Plan, Social Security, and the Thrift Savings Plan (TSP). Two of the three parts of FERS (Social Security and the TSP) can go with you to your next job if you leave the Federal Government before retirement. The Basic Benefit and Social Security parts of FERS require you to pay your share each pay period. Your agency withholds the cost of the Basic Benefit and Social Security from your pay as payroll deductions. Your agency pays its part too. Then, after you retire, you receive annuity payments each month for the rest of your life.

The TSP part of FERS is an account that your agency automatically sets up for you. Each pay period your agency deposits into your account amount equal to 1% of the basic pay you earn for the pay period. You can also make your own contributions to your TSP account and your agency will also make a matching contribution. These contributions are tax-deferred. The Thrift Savings Plan is administered by the Federal Retirement Thrift Investment Board.

http://www.opm.gov/retire/pre/fers/index.asp





The annuity payments benefit is one of the hallmarks of the federal employee retirement system. I don't know about this "switching entirely to 401k" business.

To tie it all together:
As a VA employee, you are part of the Federal Employees Retirement System (FERS).
http://www.va.gov/jobs/job_benefits/protect_income.asp
 
PharmDstudent said:
This thread is driving me crazy, because we just had a guest lecture presented by pharmacist officers in the USPHS. They gave us the same spiel about pension plans, but they were referring to employees "enlisted" in the USPHS.

Are you talking about public or "enlisted" employees working at the VA? I think there's a difference.

http://www.usphs.gov/profession/pharmacist/compensation.aspx It looks like they offer both:

  • A retirement plan with benefits eligibility beginning after 20 years of service
  • Thrift Savings Plan [retirement savings and investment plan similar to a 401(k)].
Basically, this is what we were told - "After 20 years you would receive 50% of your highest monthly basic pay (usually your current basic pay). After 30 years you would receive 75% of your highest pay."
The rest of the info is at this website: http://www.cdc.gov/od/occp/personnel/retirement/.
Click to expand...


There is a huge difference.. don't confuse public health service.. with working as a VA pharmacist.
 
MdBrndPhrmcst said:
There is a huge difference.. don't confuse public health service.. with working as a VA pharmacist.
Click to expand...
Duh! That's why I linked all of that info... 😛
I think someone who posted earlier might have been confused, though.

I believe people get confused, because USPHS officers can work for the VA, along with citizens- i.e. "the public".
 
The VA seems to have a great system. One pharmacist verifies the prescription, drug drug interaction, counseling while another pharmacist just dispenses. Decent pay and great benefits.
 
confettiflyer said:
FERS is a retirement plan that provides benefits from three different sources: a Basic Benefit Plan, Social Security, and the Thrift Savings Plan (TSP). Two of the three parts of FERS (Social Security and the TSP) can go with you to your next job if you leave the Federal Government before retirement. The Basic Benefit and Social Security parts of FERS require you to pay your share each pay period. Your agency withholds the cost of the Basic Benefit and Social Security from your pay as payroll deductions. Your agency pays its part too. Then, after you retire, you receive annuity payments each month for the rest of your life.

The TSP part of FERS is an account that your agency automatically sets up for you. Each pay period your agency deposits into your account amount equal to 1% of the basic pay you earn for the pay period. You can also make your own contributions to your TSP account and your agency will also make a matching contribution. These contributions are tax-deferred. The Thrift Savings Plan is administered by the Federal Retirement Thrift Investment Board.

http://www.opm.gov/retire/pre/fers/index.asp





The annuity payments benefit is one of the hallmarks of the federal employee retirement system. I don't know about this "switching entirely to 401k" business.

To tie it all together:
As a VA employee, you are part of the Federal Employees Retirement System (FERS).
http://www.va.gov/jobs/job_benefits/protect_income.asp
Click to expand...

i hate to break it to you, but you are not correct. a va pharmacist does not fall into that category. i spoke at length with a number of recruiters for the VA system about the retirement plans and options and what they switched to.
 
PharmaTope said:
i hate to break it to you, but you are not correct. a va pharmacist does not fall into that category. i spoke at length with a number of recruiters for the VA system about the retirement plans and options and what they switched to.
Click to expand...

that sucks, they need to update their website then. i copy/pasted that straight off the VA website this morning.

EDIT: here we go, found the detailed version of the benefit.

Federal Retirement Plan
VA employees are covered by the Federal Employees Retirement System (FERS). FERS is a three-tier retirement plan composed of Social Security benefits, FERS basic benefits, and the Thrift Savings Plan (TSP). Similar to the 401(k) savings plans widely available in the private sector, the TSP allows employees to tax defer as much as $15,500 of their income each year, subject to the requirements of the Internal Revenue Service. The Federal Government also provides a basic contribution and matching contribution, depending on the amount of the employee contribution. For retired military personnel, these benefits are in addition to full monthly retirement pay or pension.

In addition to FERS, VA provides health care insurance coverage for retired personnel.
 
I'm trying to figure out how the VA would work if you transfer in from another federal agency (ie military service, PHS) in terms of service credit and deposits. Not enough info on the VA website, overkill on the OPM website, and for some reason the VA says it's under FERS but not all portions of FERS.

😕
 
confettiflyer said:
I'm trying to figure out how the VA would work if you transfer in from another federal agency (ie military service, PHS) in terms of service credit and deposits. Not enough info on the VA website, overkill on the OPM website, and for some reason the VA says it's under FERS but not all portions of FERS.

😕
Click to expand...

TSP is a direct transfer - as you can have it in both the military service and other federal services. However, if you do not pay into the TSP, no money is present - hence no transfer. The military pension does not transfer in terms of payment into the system - but your time in service does count towards the 20 years of federal service.

Best bet - if you are willing to go active at all - transfer to the reserves after you are done being active. Do the one weekend a month, two weeks a year until 20 years and retire. You still get a generous pension - I am looking at retirement at age 45 - not too shabby.

~above~
 
aboveliquidice said:
TSP is a direct transfer - as you can have it in both the military service and other federal services. However, if you do not pay into the TSP, no money is present - hence no transfer. The military pension does not transfer in terms of payment into the system - but your time in service does count towards the 20 years of federal service.

Best bet - if you are willing to go active at all - transfer to the reserves after you are done being active. Do the one weekend a month, two weeks a year until 20 years and retire. You still get a generous pension - I am looking at retirement at age 45 - not too shabby.

~above~
Click to expand...

National Guard/Reserves do not get their retirement until age 60.
 
aboveliquidice said:
The military pension does not transfer in terms of payment into the system - but your time in service does count towards the 20 years of federal service.
Click to expand...

See, the issue then is...what good is that "20 years of federal service" if your agency (in this case, the VA) doesn't appear to participate in the pension portion of FERS (only the direct contrib to the TSP).

Example, we had a member on SDN (eelo I think?) who had a 12 year stint in the Navy and left. If he were to then work for the VA, would those 12 years hold any meaning in terms of retirement?

Arguably, a huge draw for working in the federal system is the annuity after 20 years. It ends up "justifying" the lower salary vs. the private sector.
 
confettiflyer said:
See, the issue then is...what good is that "20 years of federal service" if your agency (in this case, the VA) doesn't appear to participate in the pension portion of FERS (only the direct contrib to the TSP).

Example, we had a member on SDN (eelo I think?) who had a 12 year stint in the Navy and left. If he were to then work for the VA, would those 12 years hold any meaning in terms of retirement?

Arguably, a huge draw for working in the federal system is the annuity after 20 years. It ends up "justifying" the lower salary vs. the private sector.
Click to expand...

I believe in those sort of situations, he could start off having 12 years already served and could retire after working 8 more for the VA. That's just my understanding though and could be incorrect and/or outdated.
 
First off I can tell you as a Federal Employee that you will be coming in the FERS system. You get 1% times the number of years you work. There is a minimum retirement age of 55-57. In order to meet this requirement you need to have a combination of years of service and minimum age. If you leave and have a least 5 years of service you can still collect your pension at age 62.

There is no more CSRS retirement- 2% times the number of years. Even law enforcement officers only get 1.7% of their salary and have to do 20 years at 50 or 25 years at any age.

Overall in the current environment having any pension (that will still be there when you retire) is a plus. I was able to use my military time to get into the 8 hours a payperiod of annual leave.

Basically you will never get as generous of a pension as those who started under the old system.
 
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