FERS pension contribution increase

[Anonymous]

Anonymous wrote:For those of us that have already hit the pay cap, this is some shit.

Why is it any worse for you than anyone else?

[Anonymous]

Where is the proof this passed the Senate?

[Anonymous]

Anonymous wrote:This will get challenged if it passes. Your pay can't get decreased, and this is a decrease in pay because you're required to participate in the retirement system (as compared to benefits like health insurance, which are optional).

Well, that's some good news. This is just more crapping on Feds to crap on Feds.

[Anonymous]

Let's be real, at some point in the future they're just going to do a bit TSP match. They're contributing 15-17% to the FERS pension per person per paycheck. They could do a 15% match on the TSP and still save 5-7% (since they already do a 5% match). That's probably the future federal retirement at some point. I doubt they keep a pension forever.

[Anonymous]

Anonymous wrote:Let's be real, at some point in the future they're just going to do a bit TSP match. They're contributing 15-17% to the FERS pension per person per paycheck. They could do a 15% match on the TSP and still save 5-7% (since they already do a 5% match). That's probably the future federal retirement at some point. I doubt they keep a pension forever.

For anyone who's always been contributing 4.4%, you'd have been better off if they allowed you to opt out of the pension. Which was why they raised it to that level.

[Anonymous]

https://www.fedweek.com/fedweek/budget-process-stirs-to-life-value-of-federal-benefits-may-be-on-table/

[Anonymous]

Just because we all now pay 6.2 % Social Security doesn't mean we all will be grandfathered forever. If SS Fund runs dry, everyone still working will have to fork up more. I never signed any contracts that I would be paying 6.2%.

[Anonymous]

Anonymous wrote:Relax, even if you are in the .8% contribution category, you will only lose 3.6% of your income with the new rate.

We’re dual feds so it’s over 10k extra. It is a pretty big decrease in our paychecks.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This will get challenged if it passes. Your pay can't get decreased, and this is a decrease in pay because you're required to participate in the retirement system (as compared to benefits like health insurance, which are optional).

Well, that's some good news. This is just more crapping on Feds to crap on Feds.

Except as a couple of people pointed out, a challenge isn’t likely to be successful.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Let's be real, at some point in the future they're just going to do a bit TSP match. They're contributing 15-17% to the FERS pension per person per paycheck. They could do a 15% match on the TSP and still save 5-7% (since they already do a 5% match). That's probably the future federal retirement at some point. I doubt they keep a pension forever.

For anyone who's always been contributing 4.4%, you'd have been better off if they allowed you to opt out of the pension. Which was why they raised it to that level.

It does substantially change the math. If this passes, I'm definitely leaving government service.

[Anonymous]

This is literally the least of my problems right now.

[Anonymous]

Anonymous wrote:https://www.fedweek.com/fedweek/budget-process-stirs-to-life-value-of-federal-benefits-may-be-on-table/

The article makes it clear this is just one of several proposals being considered. The reconciliation bill itself says nothing about FERS. People acting like this is a done deal are jumping the gun, to a point where it feels like disinfo.

[Anonymous]

Anonymous wrote:

Anonymous wrote:https://www.fedweek.com/fedweek/budget-process-stirs-to-life-value-of-federal-benefits-may-be-on-table/

The article makes it clear this is just one of several proposals being considered. The reconciliation bill itself says nothing about FERS. People acting like this is a done deal are jumping the gun, to a point where it feels like disinfo.

Yep. Like we don’t have enough to worry about that is actually and actively happening.

[Anonymous]

Anonymous wrote:

Anonymous wrote:https://www.fedweek.com/fedweek/budget-process-stirs-to-life-value-of-federal-benefits-may-be-on-table/

The article makes it clear this is just one of several proposals being considered. The reconciliation bill itself says nothing about FERS. People acting like this is a done deal are jumping the gun, to a point where it feels like disinfo.

It’s still reading between the lines at this point. The committee’s instructions in the bill are to trim 50B. If you follow the links to the doc, it looks like the only way they can get there is with the 44B savings from the increase to 4.4

[Anonymous]

Anonymous wrote:

Anonymous wrote:For those of us that have already hit the pay cap, this is some shit.

Why is it any worse for you than anyone else?

Because not only am I looking at ten more years without a raise before I can retire, I’m looking at ten more years of reduced pay. I believe the cap is based on gross pay, so I have no hope of “making up” the reduction by earning more. It’s awful.