Reply to Feds: are you counting on FERS for retirement?

Forum Index » Money and Finances

Reply to "Feds: are you counting on FERS for retirement?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]I think the biggest threat to FERS is that they cut the inflation adjustment which will substantially reduce the value of the pension.  That has been one of the proposals put forward and while I think the % payout would not be changed for existing employees the inflation adjustment could be changed, even for current employees.[/quote]

Can I ask where you read this?  The most recent bill proposed on this topic actually sought to do the opposite- remove the restrictions on COLA increases faced by federal employees.  [/quote]

Sure, here is one source below.  I don't want to turn this into the politics forum but it is a proposal that has come up a few times and while I think the risk is somewhat small, it would be very detrimental to the value of the pension if it ever passed.  There are also a few bills like the one you mentioned that propose removing the "diet" COLA.

https://www.govexec.com/pay-benefits/2024/03/house-conservatives-recycle-federal-worker-pay-and-benefit-cuts-budget-document/395216/

The committee’s benefits proposals may sound familiar, because the vast majority were a part of then-President Trump’s budget plans each year he was in office, though none ever became law. Federal retirees’ annuity benefits would be calculated using the highest five years of an employee’s salary, rather than the current high three, increasing the amount federal workers must contribute from their paychecks toward the Federal Employee Retirement System, [b]“reducing or eliminating” annual cost of living adjustments for federal pensioners[/b], and reducing the yield on the Thrift Savings Plan’s G Fund to track a shorter-term Treasury bill. TSP officials have repeatedly said that last provision would make the G Fund functionally useless.

[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics