Reply to Thinking about becoming a Fed - tell me about the retirement plan/pensions

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Go work for a financial regulator government agency. 
They need IT people. The best pension is at the Federal Reserve Board or CFPB. No retirement contributions on your end + the retirement payout is better than FERS.

FERS is the regular federal pension system. It requires new federal employees to pay 4% of salary into the system.

FDIC and OCC have the best thrift/401K matching programs - 10% of salary. [/quote]

DP.  Is the CFPB/Fed pension better, though?  It seems like it could be getting worse and worse.

The Soc Sec Wage Base or whatever it is called keeps getting lifted, and that is what is used to calculate the benefit.  The Fed uses a certain % rate multiplier of income below that wage basis to get your benefit and a different % rate of income above that S.S. figure.  When the Wage Basis keeps going up, the benefit gets smaller and smaller.  Unless you retire soon.[/quote]

I worked at the Fed and agree with this. Yes, as the SS integration wage increases, more of your salary falls under the lower multiplier, essentially reducing your benefit. However, to calculate your benefit, they use a rolling average of the integration amount, so it changes less quickly than the integration wage limit itself. Also, if you retire before full retirement age, there is NO COLA until 62 and no supplementary offset for social security. For the pension to be worth the effort, you need to put in a number years of service, earn a high wage, and [b]retire at 62.[/b] [/quote]

If you can do it, the benefits are even better if you can stick it out to 70.  Standard retirement age is 65--let us say the amount you get in pension at that age has a 1.0 multiplier.  The multiplier  progressively increases until it hits 1.6 at age 70 and then stays the same after that.[/quote]

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