Pay Chart (Kinda Sorta)

Hello

I did some research on this board and got little input, but here are my conclusions on estimated income and my calculations and assumptions. 

People have choices so all this data is skewed, based on what you select for paycheck withholdings and deductions (this is my disclaimer … don’t hold me to this as gospel … it is just a guide). 

I was told for taxes and medical insurance (I was also told Soc Security is not taken out, nor retirement, or TSP) DR gross income is reduced by 15% and your take home is 85% and 85% of gross is a good estimate for net income.

Then I looked at OPM.gov and found where you have a choice that if you have a spouse you can chose to provide a lifetime income for him/her (upon your death) … 5% reduction in DR income results in the spouse receiving 25% of your DR income with recalculations taking place when you would have reached age 62 as is normal for the DR program.  10% reduction covers the spouse at 50% of your DR income.  I am not sure and I did not call OPM but I would think your spouse might get to change that reduction and payout at the recalculation time when the income transitions from DR to retirement income at your age 62.  62 is the age from FERS, is that the age for CSRS too?

So after much noodling (thinking how to do this for everyone on this site) on my part, I made the following chart …

Statements

  I will only deal with the years where 40% of your income is paid (I want to do this simply so I limited myself to these years … not the one year where you get 60% of your gross pay income).

  I will use the 2009 OPM Salary Table from the Washington DC area to get gross income while working figures. 

 I will only do grades 7, 9, 11, 12, 13, 14 and 15

  I will only do the grades for the step 5 income (I did not want to build a spread sheet and do all that work). 

 I will give you my formulas so you can do your own noodling (I like the word “noddling”...

 I will only do monthly net income for the final figures. 

 Math symbols are

   &nbs... *  is multiply

   &nbs... /   is divide

   &nbs... All others are as your math teacher taught in grade school

Assumptions

 85% is accurate for net income (looking at taxes and health care) since I was given that figure on a question I posted a few weeks ago, I assume the person did the math from their pay stub who is on DR income.

Everyone owes federal taxes and that the 85% net income assumption does not include state taxes … so you will have to plan/calculate on what your state tax status is for tax calculations and hence my results will be high on that account. 

When looking at yearly amounts you only care about thousands so I will round to the nearest thousand dollars. 

 When dealing with monthly income I think you are more interested in whole dollar amounts (no pennies).

Math Formulas

Gross Income (GI) * .40 = Gross DR Income (GDRI)

GDRI * .85 = Net GDRI = Net Income (NI)

NI / 12 is your Monthly Net Income (MNI)

NI * .95 = Spouse 25% Life Time Income = Spouse Income 25% (SI25)  

NI * .90 = Spouse 50% Life Time Income = Spouse Income 50% (SI50)

SI25 / 12 = SI25 MNI

SI50 / 12 = SI50 MNI

I have written this in Word and the chart is not doing well in the Preview look for posting, for some reason this board does not like "Tabs".   I tried using spaces in the chart but that too came up goofy.  I’ll post it and see how it looks, if I need to, I will respond to my own posting with the data in a different display to overcome any goofyness, I want to make sure I can pass on meaningful information. 

THE CHART

Grade.Step    GDRI     NI   &nbs... MNI   &nbs... SI25    SI25 MNI   &nbs... SI50    SI50 MNI

& GI

7.5    47K   &nbs... 19K     16K     $1331   &nbs... 15K     $1266   &nbs... 14K   &nbs... $1200

9.5    57K   &nbs... 23K     19K     $1615   &nbs... 18K     $1504   &nbs... 17K     $1425

11.5   69K   &nbs... 28K     23K     $1955   &nbs... 22K     $1857   &nbs... 21K     $1759

12.5   83K   &nbs... 33K     28K     $2351   &nbs... 27K     $2234   &nbs... 25K     $2116

13.5   99K   &nbs... 40K     34K     $2805   &nbs... 32K     $2664   &nbs... 30K     $2524

14.5   116K     46K     39K     $3286   &nbs... 37K     $3122   &nbs... 35K     $2958

15.5   137K     55K     47K     $3881   &nbs...    44K     $3687    &nbs...42K   &nbs... $3493

Oh sure great … now that I did this, I should have just picked easy round numbers rather than grades and steps since they work off high three anyway … LOL now I do real thinking ... so just look for something close to your high three and get a ball park figure.

Remember, I am not OPM, these numbers are not right and don’t reflect any official information to count on … but they are a best guess from a knuckle head … you get what you pay for … please accept this as free.

OK the chart did come out goofy ... I will work on it.

OK … I did the chart in narrative using my acronyms.

GS x.x = grade and step and xxK value is Gross Income

GDRI = Gross DR Income

NI = Net Income

MNI = Monthly Net Income

SI25 = Survivor Income 25%

SI50 = Survivor Income 50%

For GS 7.5 = 47K   GDRI is 19K, NI is 16K, MNI is $1331, SI25 is 15K,

SI25 MNI is $1266, SI50 is 14K and SI50 MNI is $1200

For GS 9.5 = 57K   GDRI is 23K, NI is 19K, MNI is $1615, SI25 is 18K,

SI25 MNI is $1504, SI50 is 17K and SI50 MNI is $1425

For GS 11.5 = 69K   GDRI is 28K, NI is 23K, MNI is $1955, SI25 is 22K,

SI25 MNI is $1857, SI50 is 21K and SI50 MNI is $1759

For GS 12.5 = 83K   GDRI is 33K, NI is 28K, MNI is $2351, SI25 is 27K,

SI25 MNI is $2234, SI50 is 25K and SI50 MNI is $2116

For GS 13.5 = 99K   GDRI is 40K, NI is 34K, MNI is $2805, SI25 is 32K,

SI25 MNI is $2664, SI50 is 30K and SI50 MNI is $2524

For GS 14.5 = 116K   GDRI is 46K, NI is 39K, MNI is $3286, SI25 is 37K,

SI25 MNI is $3122, SI50 is 35K and SI50 MNI is $2958

For GS 14.5 = 137K   GDRI is 55K, NI is 47K, MNI is $3881, SI25 is 44K,

SI25 MNI is $3687, SI50 is 42K and SI50 MNI is $3493

Now please ... do not tell me I could have attached my chart as a file ... that would not be nice ... LOL

mazgj:

OK … I did the chart in narrative using my acronyms. GS x.x = grade and step and xxK value is Gross Income GDRI = Gross DR Income NI = Net Income MNI = Monthly Net Income SI25 = Survivor Income 25% SI50 = Survivor Income 50% For GS 14.5 = 116K GDRI is 46K, NI is 39K, MNI is $3286, SI25 is 37K, SI25 MNI is $3122, SI50 is 35K and SI50 MNI is $2958 For GS 14.5 = 137K GDRI is 55K, NI is 47K, MNI is $3881, SI25 is 44K, SI25 MNI is $3687, SI50 is 42K and SI50 MNI is $3493 Now please ... do not tell me I could have attached my chart as a file ... that would not be nice ... LOL

Mazgi,

Thankts for your work here!  the GS14 is marked twice, but it is obvious that it is the GS15.  I did a bunch of number crunching myself before you posted this, and your numbers are pretty close to what I am figuring on when I go out.  Good job, and again, thanks for doing all that!! I guess my "assumed" monthly payments are close for an estimate. :-)

Howdy again Gary.  :-)

Question?  Have you thought of putting this into and Excel spreadsheet and adding the formula's for it to generate pay based on locality?  I am trying to put my thinking cap on, but I think you can have a master page that they put their location, grade etc., and all computations change for them?  I know lota work there, but just curious.  I can play around with it if you want - or brainstorm together?  Talk with ya later.  Still love the work you put into it!!!

Brenda