Retirement requirements, including the mandatory retirement age, for air traffic controllers. Plus – information about their income in retirement, including the FERS pension, the TSP, and the Social Security supplement.
Air Traffic Controller Retirement Requirements
As air traffic controllers (ATCs) navigate the skies, ensuring the safety of aviation operations, financial planning becomes a crucial aspect of their careers. Understanding the Federal Employees Retirement System (FERS) and its application to air traffic controllers is essential for a smooth transition after their federal career comes to a close. One important aspect of retiring from an ATC position is the special provision mandating that they retire at age 56. With 20 years of service, they’re able to retire with a full immediate FERS pension. If they’ve worked as an ATC for 25 years or more, then they can leave federal service at any age.
| Years of Service Needed to Receive FERS Pension | Retirement Age |
| 20 | 56 – Mandatory Retirement Age |
| 20 | 50 |
| 25 | Any Age |
What is FERS and how does it apply to ATCs?
Under FERS, ATCs are entitled to benefits that form a significant part of their overall financial planning. These benefits are calculated based on factors such as years of service, highest average salary, and age when they start collecting the pension
FERS is a defined benefit pension, and along with the Thrift Savings Plan (TSP) and Social Security benefits, is one of the components for crafting a sturdy foundation for financial success after leaving federal service. This comprehensive approach aims to provide air traffic controllers with a secure financial future after years of dedicated service in the aviation industry. Check out our Free FERS Retirement Webinar!
Calculating Pension for ATCs
Determining pension benefits for air traffic controllers involves intricate calculations that consider the length of service, salary history, and age. You can learn about what goes to calculating a FERS pension with our comprehensive online FERS calculator.
Mandatory Retirement
The Federal Aviation Administration (FAA) enforces a mandatory retirement age to ensure operational safety and efficiency in airspace management. Controllers reaching the mandated age face decisions that impact their careers and require careful consideration.
Occupation Age Limit
FAA provisions aim to maintain the high standards of professionalism and safety in air traffic control operations. The offset is that individuals who want to pursue a career as an ATC aren’t eligible for the training required, such as the air traffic collegiate training initiative program, once they reach their early thirties. This has recently been made it difficult to hire air traffic controllers, leading to a shortage.
While pilots work for the airlines and not a federal agency, the FAA does impose a mandatory age of 64 at which they have to stop working, although there have been talks in Congress about raising the mandatory retirement age to 67.
Options for air traffic controllers approaching retirement
Air traffic controllers approaching this age have various options, including retiring from active duty, transitioning to advisory roles, or seeking post-retirement opportunities in related aviation fields. Exploring these options is essential for controllers planning their post-career path.
The Social Security Supplement for FERS
Because ATCs have to leave federal service at 56 and are not eligible for social security retirement benefits until reaching age 62, FERS offers a supplement to fill in the gap. Its official name is the FERS “Special Retirement Supplement.”
The Special Retirement Supplement (SRS)
It is important to remember crucial two aspects about the SRS. First, like with Social Security benefits, there is an earnings test. This means if you make too much “earned” income from a new job, this benefit could start to get reduced or even eliminated altogether. Second, it does not continue after age 62 even if you decide to hold off on claiming Social Security.
Calculating the FERS supplement
To learn about what factors are used to calculate the SRS, head on over to our SRS calculator.
Knowledge is Confidence!
How does the Thrift Savings Plan (TSP) play a role in retirement planning for air traffic controllers?
The Thrift Savings Plan (TSP) serves as a critical component of retirement planning for air traffic controllers, offering investment options that enhance their financial security post-retirement.
When can Air Traffic Controllers withdraw from TSP without penalty?
The TSP provides air traffic controllers with a structured platform to save and invest for retirement, complementing their FERS benefits and ensuring a diversified financial portfolio for the future. Public safety employees, which include ATCs, are able to withdraw from their TSP starting at age 50 (if they have at least 25 years of service, a change that came about in 2022 when President Biden signed the SECURE Act 2.0)
Investment options within TSP
Choosing the right investment mix is crucial for long-term financial stability. The TSP offers five main funds (G, F, C, S, and I), along with an “investment window” with a lot more investment choices, but that also comes with more costs and restrictions. A lot of feds choose of the “lifecycle” funds which target certain years when the TSP participant plans to retire, but this could run the risk of being too conservative or too risky depending on your individual financial situation.
Maximizing TSP contributions
By maximizing their TSP contributions, ATCs can boost their retirement benefits and better prepare for financial independence post-retirement. Understanding the impact of contributions on future savings is key to optimizing retirement planning. If you’d like to sit with one an advisor here at Planwell, do not hesitate to reach out or sign up for a free 1-on-1 meeting to review your federal benefit package.
Reach Out to Us!
If you have additional federal benefit questions, contact our team of CERTIFIED FINANCIAL PLANNER™ (CFP®) and Chartered Federal Employee Benefits Consultants (ChFEBC℠). At PlanWell, we are federal employee financial advisors with a focus on retirement planning. Learn more about our process designed for the career fed.
Preparing for federal retirement? Check out our scheduled federal retirement workshops. Sign up for our no-cost federal retirement webinars here! Make sure to plan ahead and reserve your seat for our FERS webinar, held every three weeks. Want to have PlanWell host a federal retirement seminar for your agency? Reach out, and we’ll collaborate with HR to arrange an on-site FERS seminar.
Want to fast-track your federal retirement plan? Skip the FERS webinar and start a one-on-one conversation with a ChFEBC today. You can schedule a one-on-one meeting here.
