Compensation and pension at Federal Reserve

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here. Thank you! Yes, I’ve read in other threads about how great the pension is. The SEC is slated to get roughly a 7.5% raise next year (give or take, it’s the raise given to GS employees plus 2.65% with some adjustments for locality). I do have to consider the part about getting fired or laid off. That’s pretty much nonexistent at the SEC unless someone isn’t even barely fulfilling their own responsibilities. I’ve never had that problem even when I was in private sector, but I know sometimes layoffs aren’t linked to performance or anything the employee can control.

Do you know what’s the policy on starting comp at the FRB? If I’m around $200k at the SEC, would they just match or can I negotiate? Or even worse, go off some predefined formula using years of experience and I actually have to take a cut?

I’m a Reserve bank employee who’s annual “merit” increases are close to the board of gov’a 2.5 range. Don’t really understand the GS system at all, but how the heck can the SEC do 7.5% increases? I’m feeling swindled here. What’s the structural barrier to the Fed having such low increases? Colleagues are mad/very concerned this year with inflation where it is.

Management at the Board doesn’t care about retaining staff. There is very high attrition but nothing is done to address it.

That's because Board members are rich. Send kids to Sidwell, etc, and assume the rest of us are too.

[Anonymous]

Unrelated but how does one get a job at the FRB or the SEC? I have an econ background.

[Anonymous]

Anonymous wrote:OP here. Thank you! Yes, I’ve read in other threads about how great the pension is. The SEC is slated to get roughly a 7.5% raise next year (give or take, it’s the raise given to GS employees plus 2.65% with some adjustments for locality). I do have to consider the part about getting fired or laid off. That’s pretty much nonexistent at the SEC unless someone isn’t even barely fulfilling their own responsibilities. I’ve never had that problem even when I was in private sector, but I know sometimes layoffs aren’t linked to performance or anything the employee can control.

Do you know what’s the policy on starting comp at the FRB? If I’m around $200k at the SEC, would they just match or can I negotiate? Or even worse, go off some predefined formula using years of experience and I actually have to take a cut?

I thought the SEC and the union were in the middle of comp bargaining?

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. Thank you! Yes, I’ve read in other threads about how great the pension is. The SEC is slated to get roughly a 7.5% raise next year (give or take, it’s the raise given to GS employees plus 2.65% with some adjustments for locality). I do have to consider the part about getting fired or laid off. That’s pretty much nonexistent at the SEC unless someone isn’t even barely fulfilling their own responsibilities. I’ve never had that problem even when I was in private sector, but I know sometimes layoffs aren’t linked to performance or anything the employee can control.

Do you know what’s the policy on starting comp at the FRB? If I’m around $200k at the SEC, would they just match or can I negotiate? Or even worse, go off some predefined formula using years of experience and I actually have to take a cut?

I thought the SEC and the union were in the middle of comp bargaining?

Comp agreement was finalized months ago. They are currently negotiating the CBA.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. Thank you! Yes, I’ve read in other threads about how great the pension is. The SEC is slated to get roughly a 7.5% raise next year (give or take, it’s the raise given to GS employees plus 2.65% with some adjustments for locality). I do have to consider the part about getting fired or laid off. That’s pretty much nonexistent at the SEC unless someone isn’t even barely fulfilling their own responsibilities. I’ve never had that problem even when I was in private sector, but I know sometimes layoffs aren’t linked to performance or anything the employee can control.

Do you know what’s the policy on starting comp at the FRB? If I’m around $200k at the SEC, would they just match or can I negotiate? Or even worse, go off some predefined formula using years of experience and I actually have to take a cut?

I’m a Reserve bank employee who’s annual “merit” increases are close to the board of gov’a 2.5 range. Don’t really understand the GS system at all, but how the heck can the SEC do 7.5% increases? I’m feeling swindled here. What’s the structural barrier to the Fed having such low increases? Colleagues are mad/very concerned this year with inflation where it is.

It was said above, but a main structural barrier is that the Federal Reserve is responsible for monetary policy. Time and again, this has factored into raises.

If the economy is in an inflationary period, raises are well below the inflation rate to set an example of not feeding into the inflation. If we are in a recessionary period, raises are very low to avoid the optics of Federal Reserve employees getting a windfall while others are suffering in the downturn.

You either embrace working at the central bank and what that entails or you leave.

Long time Board employee.

[Anonymous]

Bumping to ask about SEC 7.5% pay raise. Is that a done deal at this point?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here. Thank you! Yes, I’ve read in other threads about how great the pension is. The SEC is slated to get roughly a 7.5% raise next year (give or take, it’s the raise given to GS employees plus 2.65% with some adjustments for locality). I do have to consider the part about getting fired or laid off. That’s pretty much nonexistent at the SEC unless someone isn’t even barely fulfilling their own responsibilities. I’ve never had that problem even when I was in private sector, but I know sometimes layoffs aren’t linked to performance or anything the employee can control.

Do you know what’s the policy on starting comp at the FRB? If I’m around $200k at the SEC, would they just match or can I negotiate? Or even worse, go off some predefined formula using years of experience and I actually have to take a cut?

I’m a Reserve bank employee who’s annual “merit” increases are close to the board of gov’a 2.5 range. Don’t really understand the GS system at all, but how the heck can the SEC do 7.5% increases? I’m feeling swindled here. What’s the structural barrier to the Fed having such low increases? Colleagues are mad/very concerned this year with inflation where it is.

It was said above, but a main structural barrier is that the Federal Reserve is responsible for monetary policy. Time and again, this has factored into raises.

If the economy is in an inflationary period, raises are well below the inflation rate to set an example of not feeding into the inflation. If we are in a recessionary period, raises are very low to avoid the optics of Federal Reserve employees getting a windfall while others are suffering in the downturn.

You either embrace working at the central bank and what that entails or you leave.

Long time Board employee.

Got it. Just politics and the ever powerful “optics”. Thanks for confirming though. I’m only 5 years in. Love the job, but wondering how my salary will keep up if I stay for my whole career. My manager recently complained about the Obama era pay freezes.

[Anonymous]

Anonymous wrote:Bumping to ask about SEC 7.5% pay raise. Is that a done deal at this point?

The raise structure is a done deal. For 2023 and 2024, SEC employees who have a satisfactory rating will get a 2.65% Merit raise+whatever the GS and locality increase is. Biden has proposed 4.6% for 2023, congress could change that up or down. Note, SEC raises generally don't go into effect/aren't seen in bank accounts until the May paychecks.

[Anonymous]

Anonymous wrote:Unrelated but how does one get a job at the FRB or the SEC? I have an econ background.

Fed: https://frbog.taleo.net/careersection/1/moresearch.ftl?lang=en
SEC: https://www.usajobs.gov/search/?a=SE00&p=1

[Anonymous]

I cannot find the pension formula anywhere (including here) for FRB…are employees sworn to secrecy or something??? I am trying to figure out how a high 3 of 175k over 30 years would compare FERS vs FRB. Any help would be appreciated.

[Anonymous]

Anonymous wrote:I cannot find the pension formula anywhere (including here) for FRB…are employees sworn to secrecy or something??? I am trying to figure out how a high 3 of 175k over 30 years would compare FERS vs FRB. Any help would be appreciated.

Federal Reserve--Assumes you are 65

Your final average salary (FAS--$175,000 in your example--includes bonuses) x 1.3% up to the Social Security integration level (currently just north of $86,000)

+

1.8% FAS in excess of Social Security Integration Level.

Sum is multiplied by years of creditable service (pre-Federal Reserve government and military service counts) to arrive at annual pension.

For a FAS of $175,000 at 65 with 30 years of service, this comes to an annual pension of $81,600 if I have calculated correctly.

This is simplified in that there are a slew of options that if chosen can affect the pension: survivorship benefits, taking cash out up front, annuity option, full Cola buy up (Cola in pension does not true for the 1% between 2% and 3% inflation, but you can buy full protection via lower pension), etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I cannot find the pension formula anywhere (including here) for FRB…are employees sworn to secrecy or something??? I am trying to figure out how a high 3 of 175k over 30 years would compare FERS vs FRB. Any help would be appreciated.

Federal Reserve--Assumes you are 65

Your final average salary (FAS--$175,000 in your example--includes bonuses) x 1.3% up to the Social Security integration level (currently just north of $86,000)

+

1.8% FAS in excess of Social Security Integration Level.

Sum is multiplied by years of creditable service (pre-Federal Reserve government and military service counts) to arrive at annual pension.

For a FAS of $175,000 at 65 with 30 years of service, this comes to an annual pension of $81,600 if I have calculated correctly.

This is simplified in that there are a slew of options that if chosen can affect the pension: survivorship benefits, taking cash out up front, annuity option, full Cola buy up (Cola in pension does not true for the 1% between 2% and 3% inflation, but you can buy full protection via lower pension), etc.

PP, you are the most awesome person on the internet. THANKS! I wonder does the social security integration level change much over time (exposing my ignorance)...?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I cannot find the pension formula anywhere (including here) for FRB…are employees sworn to secrecy or something??? I am trying to figure out how a high 3 of 175k over 30 years would compare FERS vs FRB. Any help would be appreciated.

Federal Reserve--Assumes you are 65

Your final average salary (FAS--$175,000 in your example--includes bonuses) x 1.3% up to the Social Security integration level (currently just north of $86,000)

+

1.8% FAS in excess of Social Security Integration Level.

Sum is multiplied by years of creditable service (pre-Federal Reserve government and military service counts) to arrive at annual pension.

For a FAS of $175,000 at 65 with 30 years of service, this comes to an annual pension of $81,600 if I have calculated correctly.

This is simplified in that there are a slew of options that if chosen can affect the pension: survivorship benefits, taking cash out up front, annuity option, full Cola buy up (Cola in pension does not true for the 1% between 2% and 3% inflation, but you can buy full protection via lower pension), etc.

PP, you are the most awesome person on the internet. THANKS! I wonder does the social security integration level change much over time (exposing my ignorance)...?

Not PP but yes it absolutely is increasing every year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I cannot find the pension formula anywhere (including here) for FRB…are employees sworn to secrecy or something??? I am trying to figure out how a high 3 of 175k over 30 years would compare FERS vs FRB. Any help would be appreciated.

Federal Reserve--Assumes you are 65

Your final average salary (FAS--$175,000 in your example--includes bonuses) x 1.3% up to the Social Security integration level (currently just north of $86,000)

+

1.8% FAS in excess of Social Security Integration Level.

Sum is multiplied by years of creditable service (pre-Federal Reserve government and military service counts) to arrive at annual pension.

For a FAS of $175,000 at 65 with 30 years of service, this comes to an annual pension of $81,600 if I have calculated correctly.

This is simplified in that there are a slew of options that if chosen can affect the pension: survivorship benefits, taking cash out up front, annuity option, full Cola buy up (Cola in pension does not true for the 1% between 2% and 3% inflation, but you can buy full protection via lower pension), etc.

I thought the Social Security integration level was currently at $147,000? Here's a history of the amounts: https://en.wikipedia.org/wiki/Social_Security_Wage_Base

[Anonymous]

From our benefits handbook:

The Social Security Integration Level is the average
of the Social Security wage bases (the maximum
amount on which you pay Social Security taxes) for
the 35 years before the year of your separation
from service. For example, if an employee
terminates employment in 2020, the Social Security
Integration Level amount is $ 86,052 (which is the
average of the Social Security wage bases for the
years 1984 through 2020).