What Is a PSR Report? Your Key to a Secure Federal Retirement

The median Thrift Savings Plan (TSP) balance for active federal workers is just $50,000. This single figure represents the retirement savings gap for the vast majority of the federal workforce.

While a small group of super-savers pulls the overall average up to $217,291, the vast majority are flying blind. They contribute to their accounts, pay their insurance premiums, and hope for the best. Hope is not a retirement plan.

Over 105,000 federal employees retired in 2025. The average Federal Employees Retirement System (FERS) retiree left at age 61.9 with 23.6 years of service. That means most walked out the door years before Medicare eligibility at 65. They faced years of out-of-pocket healthcare premiums they hadn't planned for.

This is the gap a Pay Stub Review (PSR) is designed to close.

Most federal employees wait until their retirement paperwork is due to find out if they can afford to stop working. That is a mistake. Office of Personnel Management (OPM) itself recommends starting early (see their planning and applying guidance), and Federal Benefits Exchange built its entire process around that reality.

What Is a Pay Stub Review (PSR)?

Many federal employees confuse the Pay Stub Review (PSR) with the report they receive. They are two distinct, sequential parts of the same planning process:

• The Pay Stub Review (PSR) is the conversation starter and data audit. It is the diagnostic process where a specialist reviews your current Leave and Earnings Statement (LES) to decode your withholding codes, tax brackets, TSP contributions, and insurance codes.
• The GAP Analysis Report is the final deliverable. This is the customized, fully modeled retirement blueprint that visualizes your FERS pension math, TSP safe withdrawal projections, and rising healthcare costs side-by-side.

In short: the PSR is how we look at your pay stub; the GAP Analysis Report is the retirement picture we deliver from it. You cannot get the report without first undergoing the pay stub review because your LES contains the raw, bi-weekly data that OPM estimates always miss.

OPM's online calculators are useful starting points, but they are limited. OPM explicitly describes its Federal Ball Park Estimator as a savings tool, not an annuity estimate. If you are within three years of retirement, OPM advises contacting your HR office for an official annuity estimate and verifying that your service is properly credited (using OPM's applying for benefits guidance) to confirm you are in the correct retirement system.

But even an official estimate won't connect the pieces. It won't analyze retirement tax planning or the state tax treatment of your annuity. It ignores your spouse's health coverage, future insurance cost curves, and Social Security claiming strategies. It won't show you the long-term impact of protecting your pension against inflation.

An estimate tells you what you have today. A PSR tells you if it is enough for tomorrow.

What a Complete PSR Reviews

A thorough PSR brings all your benefit streams into a single, cohesive plan. We review the core components of your federal benefits package to ensure they work together.

FERS Annuity Projections

We calculate your estimated monthly pension based on your current High-3 average salary and years of service. We also model how this number changes with additional years worked, including the lifetime value of a FERS sick leave pension bump.

TSP Distribution Strategies

We project your TSP account growth and model a sustainable withdrawal rate. We also identify potential tax hazards, including the early TSP withdrawal tax trap that catches early separatees off guard.

FEGLI Cost Projections

We trace your life insurance premiums out to ages 55, 60, and 65 under the escalating Option B cost curve. We then compare these numbers against private alternatives to see if you can save money.

Social Security Timing

We identify the optimal age to file for Social Security to maximize your household benefits. We analyze how your claiming age interacts with your FERS supplement and help you avoid a costly Social Security bridge trap.

Survivor Benefit Elections

We calculate exactly what your spouse will receive under each election option. Crucially, we verify whether your choice will preserve your spouse's access to lifetime health insurance.

Healthcare Coordination

We map out how your health benefits will coordinate with Medicare Part B at age 65. This ensures you avoid paying double premiums for overlapping coverage.

Beneficiary Audits

We verify that your designated beneficiaries match your current wishes. This audit checks the legal supremacy of your TSP-3 form and other agency designations, which completely override your will.

Why an Annual PSR Matters

Your career changes over time. Your benefits plan should change with it. Waiting until your final year to review your benefits is a high-risk strategy. By then, your options are limited. You cannot easily replace aging life insurance, fix outdated beneficiary designations, or adjust your tax planning.

An annual review protects you at every stage of your career.

Early Career (Under 15 Years of Service)

Decisions made now have the most time to compound. A PSR establishes your baseline. It shows you how much to save in your TSP to hit your goals, and helps you structure your traditional and Roth contributions. Building Roth assets early is highly effective. Roth distributions do not increase your taxable income in retirement, which protects you from future Medicare surcharges.

Mid-Career (15 to 25 Years of Service)

This is the danger zone for autopilot planning. You are vested and your salary is rising, but retirement still feels distant. An annual PSR during these years catches critical shifts. We recalculate your pension as your High-3 rises, audit your survivor needs after family changes, and check if private life insurance has become cheaper than your aging FEGLI coverage.

Pre-Retirement (Final 10 Years)

Your annual review is now a countdown clock. We stress-test your plan against inflation and rising healthcare costs. We help you maximize unused annual leave, coordinate TSP catch-up contributions, and finalize your Social Security strategy. With 151,068 retirement applications filed in 2025 alone, OPM's processing backlog regularly delays initial retirement packages. A PSR ensures your paperwork is audited and ready.

What a PSR Protects You From

A good review doesn't just list what you have. It exposes the traps built into the federal system.

The FEGLI Trap

FEGLI Option B premiums rise exponentially every five years. A PSR projects these costs so you can see exactly when the coverage becomes unaffordable. Many retirees are shocked by the FEGLI No-Reduction premium trap that activates at age 65, draining their fixed pensions.

The TSP Tax Trap

Traditional TSP withdrawals are taxed as ordinary income. Large, unplanned distributions can easily push you into a higher federal tax bracket and trigger permanent Medicare surcharges. A PSR models your future tax brackets to prevent a Traditional TSP Required Minimum Distribution (RMD) tax bomb from eating your savings.

The Survivor Benefit Blind Spot

Failing to elect a survivor annuity does more than reduce your spouse's income. It strips them of health insurance. Under OPM rules, a surviving spouse can only continue federal health coverage if they receive a survivor annuity check. We analyze the FERS survivor annuity options to keep your spouse protected.

The Federal Employees Health Benefits (FEHB) Eligibility Trap

To carry health insurance into retirement, you must be enrolled in FEHB for the five consecutive years immediately preceding your retirement date. We verify your enrollment history and review the FEHB continuous enrollment rule and after-tax gross-up to prevent a permanent loss of coverage.

The Social Security Timing Mistake

Claiming Social Security at age 62 instead of your full retirement age permanently cuts your monthly benefit by up to 30%. This puts heavy pressure on your TSP, forcing you to withdraw principal faster than your portfolio can support. We model the optimal claiming age to protect your savings.

The Beneficiary Designation Problem

Wills do not dictate who gets your TSP or FEGLI benefits. Your agency beneficiary forms do. An outdated form on file can send your life savings to an ex-spouse or a deceased relative. We audit your records and assist with updating your TSP-3 beneficiary form to secure your estate.

Frequently Asked Questions

What is the difference between a Pay Stub Review (PSR) and a GAP Analysis Report?

They are sequential steps in the same planning process. The Pay Stub Review (PSR) is the intake and audit phase where we decode the codes on your Leave and Earnings Statement (LES) and check for errors. The GAP Analysis Report is the customized deliverable that comes out of that review, modeling your retirement streams and identifying any funding gaps.

Is either document an official government file?

No. Both the Pay Stub Review and the resulting GAP Analysis Report are independent benefits analyses provided by Federal Benefits Exchange. They are planning tools designed to integrate OPM data, tax realities, and private insurance options into a single visual roadmap.

Isn't my agency's retirement estimate enough?

Your agency's estimate is a helpful starting point, but it is incomplete. It only calculates your gross pension. It does not factor in federal or state taxes, Medicare coordination, Social Security claiming strategies, or the rising cost of post-retirement life insurance. A PSR connects all of these variables to build your GAP Report.

How often should I get a PSR?

You should get a review once a year. You should also request an update after major life events, such as a marriage, divorce, promotion, or a death in the family.

How long does a PSR consultation take?

Gathering your information takes about 30 to 60 minutes. We then compile the data and deliver your custom analysis report.

Is there a fee for the review?

No. Federal Benefits Exchange provides your initial Pay Stub Review completely free of charge. There is no cost and no obligation.

What information do I need to provide?

You will need your most recent Leave and Earnings Statement (LES), your current TSP balance and allocation, your FEGLI coverage details, your Social Security statement from ssa.gov, and your beneficiary information.

The Best Time to Start Is Now

The federal employees who retire most comfortably are not always the highest earners. They are the ones who audited their benefits consistently and made small, timely corrections.

In 2025, the average FERS annuity supplement was $18,000 per year, and the number of TSP millionaires reached nearly 195,000. These results require planning.

A PSR is where that planning begins.

Get Your Free Pay Stub Review

You've invested years — possibly decades — into your federal career. The benefits you've earned are significant. But benefits you don't fully understand are benefits you can't fully use.

At Federal Benefits Exchange, we provide federal employees with a free, no-obligation Pay Stub Review that gives you a complete picture of where you stand today and what you need to do to retire on your terms.

Contact us today to schedule your free PSR.

📞 (706) 407-2744

🌐 www.FederalBenefitsExchange.com

📍 332 Edgefield Rd, North Augusta, SC 29841

The information in this article is for educational purposes only and does not constitute financial, legal, or tax advice. Federal benefit rules are complex and individual circumstances vary. We recommend consulting with a qualified federal benefits specialist before making any decisions regarding your retirement.