Federal pension jealousy

[Anonymous]

The federal workers I know make as much or more than private workers and they have a pension and health care for life. Yes, I'm jealous. I wish I had been smart enough to get a federal job at a young age and stay with it. I didn't know.

[Anonymous]

Anonymous wrote:The federal workers I know make as much or more than private workers and they have a pension and health care for life. Yes, I'm jealous. I wish I had been smart enough to get a federal job at a young age and stay with it. I didn't know.

Do you work in a lower-mid paying job? Analysis I've read is that what you're seeing is true in that range, but for higher end fed jobs we're underpaid compared to private.

That's also been my experience where coworkers who did leave went from high $100s (at or near the pay cap) to high $200s / $300s.

[Anonymous]

The people who tend to be most jealous of a government pension are people who under-saved while making more money than government employees, and then are surprised when they hit mid 40s to discover they are actually financially "behind" especially regarding retirement. People who saved/planned appropriately are not envious of a pension, especially if they took advantage of private sector perks like employer matches, bonuses that could be dumped straight into investment vehicles, and other advantages.

I work in the private sector and my DH is a fed. We are mid-40s and are planning an early semi-retirement when DH qualifies for his pension in our early 50s. The plan is partially based on the pension, yes, but also capitalizing on home equity we have been diligently building up for 15 years, and the flexibility of my work, which recently moved to a solo call insulting business after years of corporate work (and building up a big nest egg via savings, while also dealing with two big layoffs during down markets).

Sometimes people will make some comment about how it "must be nice" to be able to retire early thanks to the pension, and I ignore it because it's misplaced. There are lots of ways for a professional to secure early retirement or financial security, and a government pension is just one that doesn't require much planning or discipline. But it's not really any better than just socking away money and planning. If you are mad about it, you could have gotten a government job. Or you could have saved better. But you have no one but yourself to blame.

[Anonymous]

Anonymous wrote:
Nobody is jealous. I happen to be a retired teacher getting a teacher pension. It's not more than I made teaching and everyone knows how underpaid teachers are. I am doing okay, but I'm not taking expensive overseas vacations or like outings all the time. The neighbors can see that. I did get myself a reasonable new car to travel a bit in the area, but that's it.

The OP asked about federal pensions.

[Anonymous]

Anonymous wrote:I have a relative who’s a teacher in New York State. After 35 years, they can retire at 80% of their salary.

Yes, I’m envious.

- A fed

The question was about whether people are jealous of your pension, not whether you are jealous of others’.

[Anonymous]

Anonymous wrote:I'm a teacher and people are definitely jealous of our pension/health care. We pay 7 percent of our salary for 60 percent of our salary in retirement along with subsidized health care. Still a great deal and it will allow me to retire young after 30 years of services. I invest more aggressively because I know I will have set money coming in The newer hires (2011) will get less money for more years needed for retirement.

Again, what does this have to do with the question about federal pensions?

[Anonymous]

I don't get the feeling that people I interact with (which are primarily in my neighborhood) are jealous I will get a pension. I think most of my private sector friends make more than I do.

I think there is some jealousy that I have a lot of flexibility that they don't have. For example, one person at my bus stop works in an office with 3 other people but doesn't work with them and does project management stuff with people in other offices and outside contractors. Even though they don't work with anyone in their office they aren't allowed to TW except for rare circumstances which just seems very rigid.

[Anonymous]

Are fed pensions a set amount for life? Or a 401k fund?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m 48 years old in private industry and have a pension with 25 years worth of service contributions. Looks like I can start receiving pension payments in the amount of $9K per month at the age of 55. Are federal pensions significantly higher than this? I also have $2.9M in my IRA and another $1.3M in my 403b.

It depends. My pension will be 50k a year but my DH’s will be 150k (at a finreg agency at top of pay scale with many years of service).

Which Finreg agency? I know it’s not the FDIC, SEC, Treasury. Their pension would not go over $100k if retired today.

Assuming 30 years of service, very rough, back of the envelope calculaton is:
$150k pension /30 yrs = $500k salary

Your husband makes $500k? That’s more than the US President.

Could be PP's spouse had CSRS. There are still quite a few of us around.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m 48 years old in private industry and have a pension with 25 years worth of service contributions. Looks like I can start receiving pension payments in the amount of $9K per month at the age of 55. Are federal pensions significantly higher than this? I also have $2.9M in my IRA and another $1.3M in my 403b.

It depends. My pension will be 50k a year but my DH’s will be 150k (at a finreg agency at top of pay scale with many years of service).

Which Finreg agency? I know it’s not the FDIC, SEC, Treasury. Their pension would not go over $100k if retired today.

Assuming 30 years of service, very rough, back of the envelope calculaton is:
$150k pension /30 yrs = $500k salary

Your husband makes $500k? That’s more than the US President.

Could be PP's spouse had CSRS. There are still quite a few of us around.

NP and I think CFPB gets the fed reserve pension which has a higher calculation rate so this is maybe possible. In any event it's like the top 1% of fed pensions and isn't representative or really relevant to the discussion.

[Anonymous]

Anonymous wrote:Are fed pensions a set amount for life? Or a 401k fund?

Why would a pension be a 401k?

https://www.forbes.com/sites/forbesfinancecouncil/2023/08/02/retiring-from-the-federal-government-under-fers/?sh=138013473b4a

[Anonymous]

Anonymous wrote:I work in a non-profit, so arguably, really serving--not faux "public service" that government employees claim. So I probably make less and do not get a pension. So please spare me the "years of public service." We're all working hard, so there's no argument there. You are not changing the world, and you didn't go into government work to make the world a better place, you did it for security, the fact that it's nearly impossible to get fired, and for the pension. Public service. Please.

No one prevented you from getting a better job.

[Anonymous]

Anonymous wrote:The people who tend to be most jealous of a government pension are people who under-saved while making more money than government employees, and then are surprised when they hit mid 40s to discover they are actually financially "behind" especially regarding retirement. People who saved/planned appropriately are not envious of a pension, especially if they took advantage of private sector perks like employer matches, bonuses that could be dumped straight into investment vehicles, and other advantages.

I work in the private sector and my DH is a fed. We are mid-40s and are planning an early semi-retirement when DH qualifies for his pension in our early 50s. The plan is partially based on the pension, yes, but also capitalizing on home equity we have been diligently building up for 15 years, and the flexibility of my work, which recently moved to a solo call insulting business after years of corporate work (and building up a big nest egg via savings, while also dealing with two big layoffs during down markets).

Sometimes people will make some comment about how it "must be nice" to be able to retire early thanks to the pension, and I ignore it because it's misplaced. There are lots of ways for a professional to secure early retirement or financial security, and a government pension is just one that doesn't require much planning or discipline. But it's not really any better than just socking away money and planning. If you are mad about it, you could have gotten a government job. Or you could have saved better. But you have no one but yourself to blame.

Ding ding ding!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m 48 years old in private industry and have a pension with 25 years worth of service contributions. Looks like I can start receiving pension payments in the amount of $9K per month at the age of 55. Are federal pensions significantly higher than this? I also have $2.9M in my IRA and another $1.3M in my 403b.

It depends. My pension will be 50k a year but my DH’s will be 150k (at a finreg agency at top of pay scale with many years of service).

Which Finreg agency? I know it’s not the FDIC, SEC, Treasury. Their pension would not go over $100k if retired today.

Assuming 30 years of service, very rough, back of the envelope calculaton is:
$150k pension /30 yrs = $500k salary

Your husband makes $500k? That’s more than the US President.

DP. Federal Reserve has its own pension plan with different multipliers that is fully funded (unlike FERS). It costs the taxpayers nothing.

[Anonymous]

Anonymous wrote:Are fed pensions a set amount for life? Or a 401k fund?

I am a full time Federal employee who will get no pension.

People tend not to believe me, but I am on the AD (rather than GS or SES ) pay scale…and that is how it was set up at my agency.

So even as a Fed, I am jealous of people with access to a pension, TSP, etc.