TSP Center - The Thrift Savings Plan Community
 
"FantasyTSP™ and Discussion Forum for the Thrift Savings Plan Investor"
 
  Recommend TSP Center Register  •  Search  •  FantasyTSP Trophies   

Board index » General Discussion » Civil Service




Post new topic Reply to topic  [ 5 posts ] 
Author Message

Join now for full access to TSP Center

This topic has 4 replies

You must be a registered member and logged in to view topic replies.


 or 

 Post Posted: Thu Oct 05, 2017 3:46 am 
Offline

Joined: Oct 06, 2016
Posts: 57
Flag: United States (us)
Risk Tolerence: High

Reputation point: 10
Came across this article this morning.

https://federalnewsradio.com/retirement ... ment-cuts/

After reviewing the Committee Report; here are the applicable excerpts to civil service employees:

Align the G-Fund Investment Return with an Appropriate Risk Profile. The resolution assumes savings by correctly aligning the rate of return on U.S. Treasury securities within the Federal Employee Retirement System’s Thrift Savings Plan with its investment risk profile. Securities within the G-Fund are not subject to risk of default. Payment of principal and interest is guaranteed by the U.S. Government. Yet the interest rate paid is equivalent to a long-term security. As a result, those who participate in the G Fund are rewarded with a long-term rate on what is essentially a short-term security. (Pg 87)

CIVIL SERVICE
Reform Civil Service Pensions. This budget adopts a policy proposed by former President Obama’s National Commission on Fiscal Responsibility. The policy calls for Federal employees, including members of Congress and staff, to make greater contributions toward
their own defined benefit retirement plans. It would also end the ‘‘special retirement supplement,’’ which pays Federal employees the equivalent of their Social Security benefit at an earlier age. This would achieve significant savings while recognizing the need for new Federal employees to transition to a defined contribution retirement system. The vast majority of private sector employees participate in defined contribution retirement plans. These plans put the ownership, flexibility, and portfolio risk on the employee as opposed to the employer. Similarly, Federal employees would have more control over their own retirement security under this option. President Trump’s fiscal year 2018 budget calls for a phased-in increase to contributions federal employees pay into the Federal Employee
Retirement System so that both employees and the government are contributing an equal amount. (pg 179/180)

Before we collectively go off the deep-end; this is only a budget resolution that is merely a guideline for the authorizing and appropriation committees. We will have to wait to see which proposals actually make it into legislation, and which survive the initial rounds of committee mark-up.

Also keep in mind that this is the House version; it will need to be reconciled with the Senate version which historically is more measured since they have to get 60 votes to overcome any potential fillibuster during a cloture vote.

_________________
Daily Seasonal Since: August 23, 2017
Current Strategy: 16198 / 7.21σ


Top 
 Profile FantasyTSP  
 
Display posts from previous:  Sort by  
 
Post new topic Reply to topic  [ 5 posts ] 

Board index » General Discussion » Civil Service


Who is online

Users browsing this forum: No registered users and 1 guest

 
 

 
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
 
AGG (F Fund)
iShares Lehman Aggregate Bond (AGG)
S&P 500 (C Fund)
S&P 500 INDEX,RTH (^GSPC)
DWCPF (S Fund)
Dow Jones U.S. Completion Total Stock Market Index (^DWCPF)
EFA (I Fund)
iShares MSCI EAFE Index (EFA)

20min. delay http://www.google.com/finance

Contact TSP Center

Copyright © 2006-2013 Hostspring Technologies, LLC
All Rights Reserved

Hostspring Technologies, P.O. Box 9457, Chesapeake, VA 23321


Powered by: Hostspring
AGG (F Fund)
iShares Lehman Aggregate Bond (AGG)

S&P 500 (C Fund)
S&P 500 INDEX,RTH (^GSPC)

DWCPF (S Fund)
Dow Jones U.S. Completion Total Stock Market Index (^DWCPF)

EFA (I Fund)
iShares MSCI EAFE Index (EFA)