Your HR Rep Can’t Say This Out Loud (But I Can)

July 28, 2025

Your HR rep isn’t hiding anything from you on purpose.

But they are bound by rules—and those rules can quietly cost you tens of thousands.

The system trains them to walk you through eligibility, timelines, and benefits summaries… not the real-world strategy behind retirement success.

So here’s what your HR rep can’t say out loud (but I will):

1. “You might be in the wrong TSP funds—and no one’s going to stop you.”

HR isn't allowed to give investment advice.

So if you're 12 years from retirement, 90% in the G Fund, and losing purchasing power to inflation every year… they won’t say a word.

The G Fund feels safe.

But in the long run, safe can mean slow erosion—especially when inflation outpaces your return.

2. “Your pension number is inflated. Here’s why.”

Most pension estimates handed out by agencies show a gross number. It looks good on paper, but here’s what’s missing:

  • Survivor benefit reductions

  • FEHB premiums

  • Taxes (both federal and possibly state)

A FERS pension listed at $2,800/month might actually look more like $1,900 net after all deductions.

If you’re planning your retirement based on that top-line number, you may be overestimating by 20–30%.

3. “That SCD error on your SF-50 could haunt your pension—and HR might never catch it.”

Your Service Computation Date (SCD) affects your leave, pension, and eligibility timeline.

But in thousands of cases, especially with breaks in service or military time, the SCD is wrong, and no one notices until it’s too late.

✅ Action step: Compare your SCD to your actual federal service history. If you’ve bought back military time or had breaks in service, double-check that it’s been properly credited. Don’t assume someone else fixed it.

4. “The Roth TSP isn’t automatically better—sometimes it’s worse.”

You may have heard the mantra: "Roth is better because it’s tax-free."

But for many federal employees, it can push future income into higher Medicare brackets or increase taxation on Social Security.

If you’re in a high tax bracket now and expect lower income later, Traditional TSP contributions might make more sense—even if they sound less exciting.

5. “FEHB isn't guaranteed in retirement—unless you meet the 5-year rule.”

HR might mention this briefly, but few emphasize the real-world consequence:

If you haven’t been enrolled in FEHB for the 5 years leading up to retirement, you can’t keep it—even if you’ve worked 30 years and planned on that coverage.

That one rule could mean the difference between a manageable retirement and one filled with unexpected out-of-pocket costs.

So what’s the takeaway?

HR is there to help. But they work inside the box.

Your retirement? That happens outside of it.

The federal retirement system is loaded with landmines that aren’t covered in seminars or pamphlets.

And unless someone is willing to say what your HR rep can’t…

You might never know what hit you.

—FWR