Thinking about becoming a Fed - tell me about the retirement plan/pensions

[Anonymous]

I am a contractor right now and get good retirement benefits with an employer match 401k and a stock sharing plan that would roll into a retirement account when i leave.

But i'm drawn by the idea of getting a pension when i retire? Does that come out of your TSP or is it a bonus plan? Tell me.

also, I'm in tech so I make roughly 150 with room to grow, the GS scale seems to top out around there for the area? What's up with that?

[Anonymous]

Go work for a financial regulator government agency.
They need IT people. The best pension is at the Federal Reserve Board or CFPB. No retirement contributions on your end + the retirement payout is better than FERS.

FERS is the regular federal pension system. It requires new federal employees to pay 4% of salary into the system.

FDIC and OCC have the best thrift/401K matching programs - 10% of salary.

[Anonymous]

The pension is only good if you can put in a lot of years. How many years do you have left?

[Anonymous]

Anonymous wrote:The pension is only good if you can put in a lot of years. How many years do you have left?

This. I have to work 12 years to get like $30K starting at 65.

[Anonymous]

Anonymous wrote:Go work for a financial regulator government agency.
They need IT people. The best pension is at the Federal Reserve Board or CFPB. No retirement contributions on your end + the retirement payout is better than FERS.

FERS is the regular federal pension system. It requires new federal employees to pay 4% of salary into the system.

FDIC and OCC have the best thrift/401K matching programs - 10% of salary.

DP. Is the CFPB/Fed pension better, though? It seems like it could be getting worse and worse.

The Soc Sec Wage Base or whatever it is called keeps getting lifted, and that is what is used to calculate the benefit. The Fed uses a certain % rate multiplier of income below that wage basis to get your benefit and a different % rate of income above that S.S. figure. When the Wage Basis keeps going up, the benefit gets smaller and smaller. Unless you retire soon.

[Anonymous]

I am a former fed and my husband is a current fed. So here's the deal, the pension is not as good as it once was. You have to work at least 5 years to qualify and you can't get it until you are 62 in most cases (a few exceptions). How old are you and how many more years do you plan to work? If my husband stays put 30 years (he's 20 in) he will get 33% of his salary. But he started in his 20s.

[Anonymous]

Anonymous wrote:I am a contractor right now and get good retirement benefits with an employer match 401k and a stock sharing plan that would roll into a retirement account when i leave.

But i'm drawn by the idea of getting a pension when i retire? Does that come out of your TSP or is it a bonus plan? Tell me.

also, I'm in tech so I make roughly 150 with room to grow, the GS scale seems to top out around there for the area? What's up with that?

The GS scale in DC currently tops out at $183,500.

[Anonymous]

Can someone chime in on how Fed health insurance works during retirement? Hubby got in his 20, then career changed out of fed service. Can he access the health insurance when he decides to draw on his FERS pension (at 62+) or is that only available if you are working as a fed when you enter retirement?

[Anonymous]

Anonymous wrote:Can someone chime in on how Fed health insurance works during retirement? Hubby got in his 20, then career changed out of fed service. Can he access the health insurance when he decides to draw on his FERS pension (at 62+) or is that only available if you are working as a fed when you enter retirement?

You must have it for 5 years prior to retiring.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Go work for a financial regulator government agency.
They need IT people. The best pension is at the Federal Reserve Board or CFPB. No retirement contributions on your end + the retirement payout is better than FERS.

FERS is the regular federal pension system. It requires new federal employees to pay 4% of salary into the system.

FDIC and OCC have the best thrift/401K matching programs - 10% of salary.

DP. Is the CFPB/Fed pension better, though? It seems like it could be getting worse and worse.

The Soc Sec Wage Base or whatever it is called keeps getting lifted, and that is what is used to calculate the benefit. The Fed uses a certain % rate multiplier of income below that wage basis to get your benefit and a different % rate of income above that S.S. figure. When the Wage Basis keeps going up, the benefit gets smaller and smaller. Unless you retire soon.

There is no employee contribution to the CFPB/Fed pension. That is much better than contributing 4%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Go work for a financial regulator government agency.
They need IT people. The best pension is at the Federal Reserve Board or CFPB. No retirement contributions on your end + the retirement payout is better than FERS.

FERS is the regular federal pension system. It requires new federal employees to pay 4% of salary into the system.

FDIC and OCC have the best thrift/401K matching programs - 10% of salary.

DP. Is the CFPB/Fed pension better, though? It seems like it could be getting worse and worse.

The Soc Sec Wage Base or whatever it is called keeps getting lifted, and that is what is used to calculate the benefit. The Fed uses a certain % rate multiplier of income below that wage basis to get your benefit and a different % rate of income above that S.S. figure. When the Wage Basis keeps going up, the benefit gets smaller and smaller. Unless you retire soon.

There is no employee contribution to the CFPB/Fed pension. That is much better than contributing 4%.

Yes there is...

FERS
(01/01/1987 - 12/31/2012) 7% of Base Pay is deducted:

0.8% to FERS Basic Benefit Plan

6.2% to Social Security

FERS-RAE
(01/01/2013 - 12/31/2013) 9.3% of Base Pay is deducted:

3.1% to FERS Basic Benefit Plan

6.2% to Social Security

FERS-FRAE
(01/01/2014 - Current) 10.6% of Base Pay is deducted:

4.4% to FERS Basic Benefit Plan

6.2% to Social Security

[Anonymous]

Anonymous wrote:

Anonymous wrote:Can someone chime in on how Fed health insurance works during retirement? Hubby got in his 20, then career changed out of fed service. Can he access the health insurance when he decides to draw on his FERS pension (at 62+) or is that only available if you are working as a fed when you enter retirement?

You must have it for 5 years prior to retiring.

He did, but the question is the gap. Since he stopped working as a fed, can he still get the insurance when he takes retirement if he hasn't worked as a fed in years?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Can someone chime in on how Fed health insurance works during retirement? Hubby got in his 20, then career changed out of fed service. Can he access the health insurance when he decides to draw on his FERS pension (at 62+) or is that only available if you are working as a fed when you enter retirement?

You must have it for 5 years prior to retiring.

He did, but the question is the gap. Since he stopped working as a fed, can he still get the insurance when he takes retirement if he hasn't worked as a fed in years?

You must have it for the 5 years directly preceding the retirement.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Can someone chime in on how Fed health insurance works during retirement? Hubby got in his 20, then career changed out of fed service. Can he access the health insurance when he decides to draw on his FERS pension (at 62+) or is that only available if you are working as a fed when you enter retirement?

You must have it for 5 years prior to retiring.

He did, but the question is the gap. Since he stopped working as a fed, can he still get the insurance when he takes retirement if he hasn't worked as a fed in years?

No

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Go work for a financial regulator government agency.
They need IT people. The best pension is at the Federal Reserve Board or CFPB. No retirement contributions on your end + the retirement payout is better than FERS.

FERS is the regular federal pension system. It requires new federal employees to pay 4% of salary into the system.

FDIC and OCC have the best thrift/401K matching programs - 10% of salary.

DP. Is the CFPB/Fed pension better, though? It seems like it could be getting worse and worse.

The Soc Sec Wage Base or whatever it is called keeps getting lifted, and that is what is used to calculate the benefit. The Fed uses a certain % rate multiplier of income below that wage basis to get your benefit and a different % rate of income above that S.S. figure. When the Wage Basis keeps going up, the benefit gets smaller and smaller. Unless you retire soon.

There is no employee contribution to the CFPB/Fed pension. That is much better than contributing 4%.

Yes there is...

FERS
(01/01/1987 - 12/31/2012) 7% of Base Pay is deducted:

0.8% to FERS Basic Benefit Plan

6.2% to Social Security

FERS-RAE
(01/01/2013 - 12/31/2013) 9.3% of Base Pay is deducted:

3.1% to FERS Basic Benefit Plan

6.2% to Social Security

FERS-FRAE
(01/01/2014 - Current) 10.6% of Base Pay is deducted:

4.4% to FERS Basic Benefit Plan

6.2% to Social Security

Wow. I started as a fed in 2011 at 25. I didn’t realize what I better deal I had than people starting after me.