Your Benefits
Moderator: Aitrus
- galveston1
- Posts: 148
- Joined: Tue Aug 16, 2016 5:29 pm
Your Benefits
Here's a rundown of the latest proposals:
1. Federal employees would have to pay more toward their retirement benefits
The most recent proposal, from the Trump administration, would apply only to employees under FERS and in most cases would require them to pay about 6 percent of salary more into the retirement fund, phased in as 1 percentage point increments each year. Those hired after 2012 already pay in at a higher rate and thus the increase for them would not be as steep.
2. Eliminating the FERS supplement
The White House budget also had proposed eliminating, for future retirees, the “special retirement supplement” that is paid to FERS retirees up to age 62 when Social Security kicks in.
3. High 5
The administration’s budget plan further proposed changing to a high-five salary base to calculate benefits of future retirees
4. COLA
for both current and future retirees, reducing the annual COLA for CSRS retirees while eliminating the COLA on the civil service portion of a FERS annuity
More: http://www.fedweek.com/fedweek/house-bu ... ributions/
1. Federal employees would have to pay more toward their retirement benefits
The most recent proposal, from the Trump administration, would apply only to employees under FERS and in most cases would require them to pay about 6 percent of salary more into the retirement fund, phased in as 1 percentage point increments each year. Those hired after 2012 already pay in at a higher rate and thus the increase for them would not be as steep.
2. Eliminating the FERS supplement
The White House budget also had proposed eliminating, for future retirees, the “special retirement supplement” that is paid to FERS retirees up to age 62 when Social Security kicks in.
3. High 5
The administration’s budget plan further proposed changing to a high-five salary base to calculate benefits of future retirees
4. COLA
for both current and future retirees, reducing the annual COLA for CSRS retirees while eliminating the COLA on the civil service portion of a FERS annuity
More: http://www.fedweek.com/fedweek/house-bu ... ributions/
In investing, what is comfortable is rarely profitable
Re: Your Benefits
I wouldn't worry too much yet.
Re: Your Benefits
Wow, not even those who are already retired are safe any more.
Re: Your Benefits
That is not good. Not good at all.
Re: Your Benefits
The part of the proposal to "Eliminate the FERS supplement" bugs me the most. After 32+ years I'm really hoping to move on to the next chapters soon after my MRA in Oct 2018. This would add an unwanted wrinkle to the planning.
Re: Your Benefits
Atbattin wrote:The part of the proposal to "Eliminate the FERS supplement" bugs me the most. After 32+ years I'm really hoping to move on to the next chapters soon after my MRA in Oct 2018. This would add an unwanted wrinkle to the planning.
Yup... thats the bad one for me. $204k loss if that goes through, from 50-62yo, MRA to SS eligible.
Those who 'abjure' violence can do so only because others are committing violence on their behalf.
Re: Your Benefits
It will be up to the Senate now.
President's Budget http://www.myfederalretirement.com/publ ... t-2018.cfm
House of Representative http://www.govexec.com/pay-benefits/201 ... nt/139532/
Interesting thing is how it has lessoned somewhat between the President & House versions. The Changes for FERS-RAE & FRAE were overwhelmingly supported by Democrats in both the House & Senate, but they were tied up in appropriations bills like this one will be and they only applied to new employees. So if vote is along party lines the results may be reversed and you can expect at least some trimming of federal benefits.
If you are concerned about proposed changes, you should be contacting your Senators.
President's Budget http://www.myfederalretirement.com/publ ... t-2018.cfm
House of Representative http://www.govexec.com/pay-benefits/201 ... nt/139532/
Interesting thing is how it has lessoned somewhat between the President & House versions. The Changes for FERS-RAE & FRAE were overwhelmingly supported by Democrats in both the House & Senate, but they were tied up in appropriations bills like this one will be and they only applied to new employees. So if vote is along party lines the results may be reversed and you can expect at least some trimming of federal benefits.
If you are concerned about proposed changes, you should be contacting your Senators.
Re: Your Benefits
For FERS employees that choose to contact their Senators, something that you should know: FERS was setup to pre-fund the retirement obligation. CSRS was never fully funded and the Civil Service Retirement and Disability Fund including FERS contributions has been used to fund the unfunded liability of CSRS https://fas.org/sgp/crs/misc/RL30023.pdf
The proposed legislation is primarily going after FERS benefits because majority of current government employees now fall under FERS so there is a bigger cost savings, if successful. I imagine that they are not going after CSRS because they are a more vocal constituency although there are currently more of them on the retirement rolls.
The proposed legislation is primarily going after FERS benefits because majority of current government employees now fall under FERS so there is a bigger cost savings, if successful. I imagine that they are not going after CSRS because they are a more vocal constituency although there are currently more of them on the retirement rolls.
- LockHerUp!
- Posts: 10
- Joined: Wed Feb 15, 2017 5:39 am
Re: Your Benefits
Hope none of this actually passes.
Re: Your Benefits
Chill folks. It's a long way before anything becomes law.
Re: Your Benefits
I know it has been mentioned to call or write your member of congress. But I would also bring these issues up when they hold town halls in your area.
Re: Your Benefits
TheWall wrote:I know it has been mentioned to call or write your member of congress. But I would also bring these issues up when they hold town halls in your area.
Good idea. Keep the pressure on.
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