Feds: are you counting on FERS for retirement?

[Anonymous]

I'm planning for my fers retirement at 100% and social security at 50%.

[Anonymous]

Anonymous wrote:I think an easy change would be to cap the high 3/ high 5 salaries at 150k or pin them to the social security cap. Finreg employees are making 100k more than other feds

More like 60k. But yeah, let's reopen the perpetual finreg jealousy box.

[Anonymous]

I am not counting on FERS and SS. They need to do something about FERS because it is drain to the treasury even after being self-paid liability.

[Anonymous]

Anonymous wrote:I am not counting on FERS and SS. They need to do something about FERS because it is drain to the treasury even after being self-paid liability.

Agree, also paying govt employees. The treasury would be in a better position if they worked for free.

[Anonymous]

Anonymous wrote:I am not counting on FERS and SS. They need to do something about FERS because it is drain to the treasury even after being self-paid liability.

Agree that it sounds like you personally shouldn’t be counting on FERs or holding on to any job.

[Anonymous]

Anonymous wrote:I doubt if FERS would be around if our country continues to take debt like this. FERS is invested in T-bonds and how do you think that would play out?

If T bonds collapse, every bank fails, all commerce would halt, FERS will be the last on my mind.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I doubt if FERS would be around if our country continues to take debt like this. FERS is invested in T-bonds and how do you think that would play out?

If T bonds collapse, every bank fails, all commerce would halt, FERS will be the last on my mind.

It is not the collapse but double digit interest rates on T-bonds. Imagine how much they would be paying for FERS and congress would find it easy to take away some of the benefits.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am not counting on FERS and SS. They need to do something about FERS because it is drain to the treasury even after being self-paid liability.

Agree, also paying govt employees. The treasury would be in a better position if they worked for free.

Well, some of the Govt employees are just dead weight and don't have to be at the positions where they are at right now. Get rid of 1/3rd of the employees and you won't feel a difference.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I doubt if FERS would be around if our country continues to take debt like this. FERS is invested in T-bonds and how do you think that would play out?

If T bonds collapse, every bank fails, all commerce would halt, FERS will be the last on my mind.

It is not the collapse but double digit interest rates on T-bonds. Imagine how much they would be paying for FERS and congress would find it easy to take away some of the benefits.

FERS isn’t “invested” in “t-bonds” any more than SS is in a “lock box”. It’s all paperwork notations. The cost of FERS doesn’t go up when interest rates go up (the cost of borrowing does but that would be true for any federal spending).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I doubt if FERS would be around if our country continues to take debt like this. FERS is invested in T-bonds and how do you think that would play out?

If T bonds collapse, every bank fails, all commerce would halt, FERS will be the last on my mind.

It is not the collapse but double digit interest rates on T-bonds. Imagine how much they would be paying for FERS and congress would find it easy to take away some of the benefits.

FERS isn’t “invested” in “t-bonds” any more than SS is in a “lock box”. It’s all paperwork notations. The cost of FERS doesn’t go up when interest rates go up (the cost of borrowing does but that would be true for any federal spending).

so, where are the FERS $s saved? It has to be in some form of bonds, correct?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I doubt if FERS would be around if our country continues to take debt like this. FERS is invested in T-bonds and how do you think that would play out?

If T bonds collapse, every bank fails, all commerce would halt, FERS will be the last on my mind.

It is not the collapse but double digit interest rates on T-bonds. Imagine how much they would be paying for FERS and congress would find it easy to take away some of the benefits.

FERS isn’t “invested” in “t-bonds” any more than SS is in a “lock box”. It’s all paperwork notations. The cost of FERS doesn’t go up when interest rates go up (the cost of borrowing does but that would be true for any federal spending).

so, where are the FERS $s saved? It has to be in some form of bonds, correct?

No, it’s not saved. Someone writes down a note in a ledger that they will owe $x for whatever years and when those years come along they pay what they owe.

The entire federal government is on a pay as you go system.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I doubt if FERS would be around if our country continues to take debt like this. FERS is invested in T-bonds and how do you think that would play out?

If T bonds collapse, every bank fails, all commerce would halt, FERS will be the last on my mind.

It is not the collapse but double digit interest rates on T-bonds. Imagine how much they would be paying for FERS and congress would find it easy to take away some of the benefits.

FERS isn’t “invested” in “t-bonds” any more than SS is in a “lock box”. It’s all paperwork notations. The cost of FERS doesn’t go up when interest rates go up (the cost of borrowing does but that would be true for any federal spending).

so, where are the FERS $s saved? It has to be in some form of bonds, correct?

No, it’s not saved. Someone writes down a note in a ledger that they will owe $x for whatever years and when those years come along they pay what they owe.

The entire federal government is on a pay as you go system.

this means FERS money owed would disappear?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I doubt if FERS would be around if our country continues to take debt like this. FERS is invested in T-bonds and how do you think that would play out?

If T bonds collapse, every bank fails, all commerce would halt, FERS will be the last on my mind.

It is not the collapse but double digit interest rates on T-bonds. Imagine how much they would be paying for FERS and congress would find it easy to take away some of the benefits.

FERS isn’t “invested” in “t-bonds” any more than SS is in a “lock box”. It’s all paperwork notations. The cost of FERS doesn’t go up when interest rates go up (the cost of borrowing does but that would be true for any federal spending).

so, where are the FERS $s saved? It has to be in some form of bonds, correct?

No, it’s not saved. Someone writes down a note in a ledger that they will owe $x for whatever years and when those years come along they pay what they owe.

The entire federal government is on a pay as you go system.

this means FERS money owed would disappear?

FERS is a promise to pay you just like a Treasury note is a promise to pay you. If the US government stops making good on its promises things will have hit the fan.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I doubt if FERS would be around if our country continues to take debt like this. FERS is invested in T-bonds and how do you think that would play out?

If T bonds collapse, every bank fails, all commerce would halt, FERS will be the last on my mind.

It is not the collapse but double digit interest rates on T-bonds. Imagine how much they would be paying for FERS and congress would find it easy to take away some of the benefits.

FERS isn’t “invested” in “t-bonds” any more than SS is in a “lock box”. It’s all paperwork notations. The cost of FERS doesn’t go up when interest rates go up (the cost of borrowing does but that would be true for any federal spending).

so, where are the FERS $s saved? It has to be in some form of bonds, correct?

No, it’s not saved. Someone writes down a note in a ledger that they will owe $x for whatever years and when those years come along they pay what they owe.

The entire federal government is on a pay as you go system.

this means FERS money owed would disappear?

FERS is a promise to pay you just like a Treasury note is a promise to pay you. If the US government stops making good on its promises things will have hit the fan.

From this report cited earlier: https://www.opm.gov/about-us/reports-publications/fy-2022-civil-service-retirement-and-disability-fund-annual-report.pdf
All Fund investments are in interest-bearing U.S. Treasury securities guaranteed as to
principal and interest. Throughout the year, monies are invested initially in Certificates of
Indebtedness (“Certificates”), which are issued at par value and mature on the following June
30. The Certificates are routinely redeemed at face value to pay for authorized expenditures.
Each June 30, the outstanding Certificates are “rolled over” into government account series
(GAS) securities that are issued to the Fund at par-value, with maturities spread over a 15-
year period and a yield equaling the average of all marketable U.S. Treasury securities with
four or more years to maturity.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am not counting on FERS and SS. They need to do something about FERS because it is drain to the treasury even after being self-paid liability.

Agree, also paying govt employees. The treasury would be in a better position if they worked for free.

Well, some of the Govt employees are just dead weight and don't have to be at the positions where they are at right now. Get rid of 1/3rd of the employees and you won't feel a difference.

Are you really willing to give up on 1/3 of meat inspectors, National Park staff, Federal highway workers, weather forecast, cancer researchers, FEMA ?