FY2020 Budget

General TSP Discussion.

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Billionair
Posts: 271
Joined: Wed May 02, 2018 11:27 am

FY2020 Budget

Post by Billionair »

Good Morning All,

Sourced for you from below,

FY2020 Raise Military: 3.1% Pay increase

FY2020 Raise Civlian: No federal pay raise, supplemented with pay on performance (I have no idea how that works).

FY2020-2025: Increase to employee pension by 1% each year through 2025, roughly 77$ a year increase. Reduction from the government side. This is a big negative from me.

Retirees: No COLA increase.

Soon to be Retirees: Proposed "final 5," years of service instead of "final 3," used for retirement calculations.

Healthcare: Lower government premiums, causing us to increase more. Not much emphasis on how

TSP Users: LOWER G Fund interest rate.

This won't pass a Red House, let alone a Blue one. Keep an eye out for budgetary issues come the end of the Fiscal Year.

https://www.washingtonpost.com/politics ... 4a43bfcda2
-What we do in Life, echoes in Retirement-

wdd09
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Re: FY2020 Budget

Post by wdd09 »

Billionair wrote:Good Morning All,
FY2020-2025: Increase to employee pension by 1% each year through 2025, roughly 77$ a year increase. Reduction from the government side. This is a big negative from me.
I might be wrong, but weren't these contributions going to be 1% a year for folks who were contributing the lowest amount until it got to some threshold near 5 or 6% (or at least that's what iterations I heard of a year or two back, perhaps this one is different). If I'm not mistaken, new hires on the federal government already pay near 5% of their salary into FERS, whereas older folks pay as little as 1.5% (the numbers are back of the envelope estimates from prior reading). The goal was to get these older folks back up to the contributions of the new hires while new hires would see little increase in FERS deductions as they already contribute plenty.
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Billionair
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Re: FY2020 Budget

Post by Billionair »

You are correct. The rate is actually 4.4% for a new FERS employee. That's the same I paid on the Hill, as I do now at DHS.

The pension plan want's us to contribute 6% over six fiscal years, with 1% going up from us, and 1% less from the government. This is a highly obscene amount of cuts, and probably the deal-killer for any budget. I can agree with no pay raises, healthcare stuff. I don't want to pay for a pension plan, that won't benefit me for 35 years.

Sources on the Hill confirmed to me that this plan is dead. But the G fund may very well be targeted for its huge load almost 250B of 500B in value/revenue. I also think the military could get a 1.5% raise and us get a 1.5% raise and everyone wins.
-What we do in Life, echoes in Retirement-

tspwizard1
Posts: 311
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Re: FY2020 Budget

Post by tspwizard1 »

Here are more facts about Trump's attack on federal employees. Hopefully some supporters see start to jump ship once they see the damage.

The National Active and Retired Federal Employees Association (NARFE) objected to the 2020 budget proposals, citing they amount to more than $177.1 billion in cuts to earned federal benefits.

In a statement Monday, NARFE outlined the proposals this way:

Eliminating cost-of-living adjustments (COLAs) for current and future Federal Employees Retirement System (FERS) retirees. Over a 30-year retirement, a typical FERS retiree – with a median annuity of roughly $1,000 per month – could lose nearly $250,000 due to this proposal.

Reducing COLAs for Civil Service Retirement System (CSRS) retirees by 0.5 percent each year from what the COLA would have been otherwise. When combined with the elimination of the FERS COLA, this would cost federal retirees $56 billion over 10 years, and much more thereafter. Over a 30-year retirement, a typical CSRS retiree – with a median annuity slightly above $3,000 per month – could lose nearly $170,000 due to the proposal.

Federal employees covered under FERS would see employee contributions to their annuities increased by 1 percent each year for the next six years, without any corresponding benefit increase. This will cost FERS employees $78.8 billion over the next 10 years, and more thereafter.

The earned and fully funded FERS Annuity Supplement would be eliminated for new retirees. This benefit, provided to FERS employees who retire before they are eligible to collect Social Security, would hit those with a mandatory retirement age – such as federal law enforcement officers and air traffic controllers – the hardest, costing federal retirees $18.6 billion over the next 10 years.

Reducing the rate of return on the Thrift Savings Plan’s Government Securities Investment (G) Fund. This would cost federal employees and retirees, as well as military personnel and veterans, $16.5 billion over the next 10 years.

Federal pensions for new retirees would be based on the average of the highest five years of salary instead of the highest three. This would cost federal retirees $7 billion over the next 10 years.

Reducing working and retirement-age benefits for federal workers disabled through their service, costing them $220 million over 10 years.

“President Trump’s budget breaks promises to both current and future retirees, reneges on commitments made to our nation’s public servants, and sends a very powerful message about the value this administration places on civil service,” said NARFE’s National President Ken Thomas.

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Billionair
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Re: FY2020 Budget

Post by Billionair »

tspwizard1 wrote:Here are more facts about Trump's attack on federal employees. Hopefully some supporters see start to jump ship once they see the damage.

The National Active and Retired Federal Employees Association (NARFE) objected to the 2020 budget proposals, citing they amount to more than $177.1 billion in cuts to earned federal benefits.

In a statement Monday, NARFE outlined the proposals this way:

Eliminating cost-of-living adjustments (COLAs) for current and future Federal Employees Retirement System (FERS) retirees. Over a 30-year retirement, a typical FERS retiree – with a median annuity of roughly $1,000 per month – could lose nearly $250,000 due to this proposal.

Reducing COLAs for Civil Service Retirement System (CSRS) retirees by 0.5 percent each year from what the COLA would have been otherwise. When combined with the elimination of the FERS COLA, this would cost federal retirees $56 billion over 10 years, and much more thereafter. Over a 30-year retirement, a typical CSRS retiree – with a median annuity slightly above $3,000 per month – could lose nearly $170,000 due to the proposal.

Federal employees covered under FERS would see employee contributions to their annuities increased by 1 percent each year for the next six years, without any corresponding benefit increase. This will cost FERS employees $78.8 billion over the next 10 years, and more thereafter.

The earned and fully funded FERS Annuity Supplement would be eliminated for new retirees. This benefit, provided to FERS employees who retire before they are eligible to collect Social Security, would hit those with a mandatory retirement age – such as federal law enforcement officers and air traffic controllers – the hardest, costing federal retirees $18.6 billion over the next 10 years.

Reducing the rate of return on the Thrift Savings Plan’s Government Securities Investment (G) Fund. This would cost federal employees and retirees, as well as military personnel and veterans, $16.5 billion over the next 10 years.

Federal pensions for new retirees would be based on the average of the highest five years of salary instead of the highest three. This would cost federal retirees $7 billion over the next 10 years.

Reducing working and retirement-age benefits for federal workers disabled through their service, costing them $220 million over 10 years.

“President Trump’s budget breaks promises to both current and future retirees, reneges on commitments made to our nation’s public servants, and sends a very powerful message about the value this administration places on civil service,” said NARFE’s National President Ken Thomas.
#1. Plagiarized what I said, automatic F on your paper. :shock:
#2. I spend every day Making America Great Again.
-What we do in Life, echoes in Retirement-

tspwizard1
Posts: 311
Joined: Sat Jan 23, 2016 5:33 pm

Re: FY2020 Budget

Post by tspwizard1 »

Billionair wrote:
tspwizard1 wrote:Here are more facts about Trump's attack on federal employees. Hopefully some supporters see start to jump ship once they see the damage.

The National Active and Retired Federal Employees Association (NARFE) objected to the 2020 budget proposals, citing they amount to more than $177.1 billion in cuts to earned federal benefits.

In a statement Monday, NARFE outlined the proposals this way:

Eliminating cost-of-living adjustments (COLAs) for current and future Federal Employees Retirement System (FERS) retirees. Over a 30-year retirement, a typical FERS retiree – with a median annuity of roughly $1,000 per month – could lose nearly $250,000 due to this proposal.

Reducing COLAs for Civil Service Retirement System (CSRS) retirees by 0.5 percent each year from what the COLA would have been otherwise. When combined with the elimination of the FERS COLA, this would cost federal retirees $56 billion over 10 years, and much more thereafter. Over a 30-year retirement, a typical CSRS retiree – with a median annuity slightly above $3,000 per month – could lose nearly $170,000 due to the proposal.

Federal employees covered under FERS would see employee contributions to their annuities increased by 1 percent each year for the next six years, without any corresponding benefit increase. This will cost FERS employees $78.8 billion over the next 10 years, and more thereafter.

The earned and fully funded FERS Annuity Supplement would be eliminated for new retirees. This benefit, provided to FERS employees who retire before they are eligible to collect Social Security, would hit those with a mandatory retirement age – such as federal law enforcement officers and air traffic controllers – the hardest, costing federal retirees $18.6 billion over the next 10 years.

Reducing the rate of return on the Thrift Savings Plan’s Government Securities Investment (G) Fund. This would cost federal employees and retirees, as well as military personnel and veterans, $16.5 billion over the next 10 years.

Federal pensions for new retirees would be based on the average of the highest five years of salary instead of the highest three. This would cost federal retirees $7 billion over the next 10 years.

Reducing working and retirement-age benefits for federal workers disabled through their service, costing them $220 million over 10 years.

“President Trump’s budget breaks promises to both current and future retirees, reneges on commitments made to our nation’s public servants, and sends a very powerful message about the value this administration places on civil service,” said NARFE’s National President Ken Thomas.
#1. Plagiarized what I said, automatic F on your paper. :shock:
#2. I spend every day Making America Great Again.
My God you are such an ass hat. I hope your boy Trump takes all your benefits away.

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ArrieS
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Re: FY2020 Budget

Post by ArrieS »

tspwizard1 wrote:
#1. Plagiarized what I said, automatic F on your paper. :shock:
#2. I spend every day Making America Great Again.
My God you are such an ass hat. I hope your boy Trump takes all your benefits away.
Whoa, simmer down now. I think he was being sarcastic.
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Aitrus
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Re: FY2020 Budget

Post by Aitrus »

Keep it civil, guys.
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SnareMV17
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Re: FY2020 Budget

Post by SnareMV17 »

This thread is a toxic waste dump. Begs to be removed. Not helpful to the point of this site at all.
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DanaBanks
Posts: 2
Joined: Fri Oct 06, 2017 9:44 am

Re: FY2020 Budget

Post by DanaBanks »

Aitrus wrote:Keep it civil, guys.
Why is tspwizard1 still a member here? I mean really? This user has been called out on thier crap over and over. Come on Mods, this is a no-brainer.

Vertigo
Posts: 11
Joined: Thu Jul 06, 2017 8:14 pm

Re: FY2020 Budget

Post by Vertigo »

DanaBanks wrote:
Aitrus wrote:Keep it civil, guys.
Why is tspwizard1 still a member here? I mean really? This user has been called out on thier crap over and over. Come on Mods, this is a no-brainer.
Couldn't agree more.

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misfit
Posts: 257
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Re: FY2020 Budget

Post by misfit »

Vertigo wrote:
DanaBanks wrote:
Aitrus wrote:Keep it civil, guys.
Why is tspwizard1 still a member here? I mean really? This user has been called out on thier crap over and over. Come on Mods, this is a no-brainer.
Couldn't agree more.
----------------

Yea, me too. Wizard is a "Dick weed" as Alex Trebec would say. Best wishes Alex....

Ericdelee
Posts: 213
Joined: Thu May 30, 2013 7:09 pm

Re: FY2020 Budget

Post by Ericdelee »

What is the verbiage on the soon to be retirees going from High Three to High Five? I’d like to think there would be a grandfather clause for those already in.

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Billionair
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Re: FY2020 Budget

Post by Billionair »

Ericdelee wrote:What is the verbiage on the soon to be retirees going from High Three to High Five? I’d like to think there would be a grandfather clause for those already in.
"Also under the proposal, for employees retiring after an unspecified date, annuity benefits would be based on the highest five consecutive salary years rather than the currently used “high-3.” Further, it would end a supplemental benefit paid to many employees who retire before age 62, when they become eligible for Social Security."

Called over to some folks on the Hill, the verbiage, "IF PASSED," would be clear for government folks over 5 years to be grandfathered, but they said that won't happen because this budget is going nowhere. However for us, the G fund is still going to be targeted by the Administration + no federal pay raise.
-What we do in Life, echoes in Retirement-

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Aitrus
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Re: FY2020 Budget

Post by Aitrus »

DanaBanks wrote:
Aitrus wrote:Keep it civil, guys.
Why is tspwizard1 still a member here? I mean really? This user has been called out on thier crap over and over. Come on Mods, this is a no-brainer.
tspwizard1 knows he's on thin ice. The last warning has been given. We're keeping an eye on him.
Seasonal Musings 2022: viewtopic.php?f=14&t=19005
Recommended Reading: http://tspcenter.com/forums/viewtopic.php?f=14&t=13474
"It's not what happens to you, but how you react to it that matters" Epictetus

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Fund Prices2024-03-28

FundPriceDayYTD
G $18.15 0.05% 1.05%
F $19.08 -0.06% -0.74%
C $82.21 0.11% 10.55%
S $82.43 0.30% 6.92%
I $42.57 -0.24% 5.95%
L2065 $16.38 0.02% 8.37%
L2060 $16.39 0.02% 8.38%
L2055 $16.39 0.02% 8.38%
L2050 $32.73 0.01% 6.95%
L2045 $14.91 0.02% 6.58%
L2040 $54.38 0.02% 6.22%
L2035 $14.34 0.02% 5.79%
L2030 $47.67 0.02% 5.38%
L2025 $13.15 0.03% 3.43%
Linc $25.61 0.03% 2.82%

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