Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This would be an extra $270 a pay period for those at the GS15 cap.

Assuming that that person is currently paying the lowest amount.

Don’t shed tears for me. But dual Fed household that will be doubly hit by this. Both at the GS 15 cap. It’s still a big hit.

Anonymous wrote:

Anonymous wrote:This would be an extra $270 a pay period for those at the GS15 cap.

Assuming that that person is currently paying the lowest amount.

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.

Anonymous wrote:

Anonymous wrote:This would be an extra $270 a pay period for those at the GS15 cap.

Assuming that that person is currently paying the lowest amount.

Anonymous wrote:Here is a brief history of Pensions.
American Express's History with Pensions:
In 1875, American Express established the first private pension plan in the United States, and the company continued to offer pensions for many years.
Shift Towards Defined Contribution Plans:
In the 1980s, the United States started phasing out traditional pensions, and companies began offering defined contribution plans like 401(k)s instead.
American Express's Actions in 2009:
In 2009, American Express halted its contributions to employees' pension plans in the United States and the UK as part of a restructuring process to cut costs.
American Express Supplemental Retirement Plan:
The Plan was amended and restated generally effective March 1, 1995, and renamed the American Express Company Supplemental Retirement Plan.
Ceased Benefit Accruals:
Generally effective July 1, 2007, benefit accruals under the American Express Retirement Plan were ceased.
Pension Benefit Guaranty Corporation (PBGC):
The PBGC is the agency that insures most defined benefit pension plans.

My Mom worked at American Express and that March 1, 1995 revision was any employee hired March 1, 1995 or later was not eligible Pension Plan but current employees grandfathered. Then in 2007 they stopped contributing new money to most people in the US and in 2009 they stopped contributing new money in UK and rest of US in 2009.

Was not feasible to pay people money for life. And people like my Mom stayed on American Express medical plan in retirement. That also was not feasible long term.

Right now the only people who have an American Express Pension are those hired before March 1 1995. That is 30 years ago.

AMEX is in a great place now. They did layoffs in 2000/01 and 2008/2009 and in 2020 so very few existing employees either based on Age of fact hard to survive three layoffs exist who was hired prior to 1995.

My Mom who did retire in 1995 as part of the pension plan restructuring they offered a package for workers at or near retirement age to leave. She took it. But I was invited to attend the retirement seminar with her in 1995 at the World Financial Center down by Wall Street and was in a big theater room and they went over the deal. Had to be over 55 to be offered. The room was full of 55-70 year old people in 1995 and American Express promised them a Pension rest of life with Medical and a one time small severance pay out plus they are coding it a lay off so every one is getting six months of unemployment regardless of age.

They added current employee retirement plans can be changed at anytime. But yours is locked in for life if you sign .My mom was 65 that year and was planning on staying to 70 but she took it.

American Express invented the modern Pension plan and even they saw in 1995 it was not sustainable long term.

I would love to see an American Express Spreadsheet who is alive and still getting a Pension.

The Feds should have followed up on what Amex did.

Ironic part American Express in 2026 could bring back the Pension in Retirement if they wanted as the 31 year break basically cleared out all the retirees on it and basically no current employee is eligible for any real money. Meaning you had to have worked at least 15-20 years prior to March 1, 1995 to have any real benefits. Not too many 1970s and 1980s American Express hired employees still on the payroll.

Govt workers got a full 30 extra years of benefits.

My first three jobs had pensions and the "old timers bragged about it. They were grandfathered. All of them stopped the Plans between 1979-1988. those firms are still in business. But those plans are long dead. Like the people who were on them.


The 401K was invented in 1978 and firms used that and cash balance pension plans invented in mid 1980s to get rid of traditonal Pension plans

Anonymous wrote:Here is a brief history of Pensions.
American Express's History with Pensions:
In 1875, American Express established the first private pension plan in the United States, and the company continued to offer pensions for many years.
Shift Towards Defined Contribution Plans:
In the 1980s, the United States started phasing out traditional pensions, and companies began offering defined contribution plans like 401(k)s instead.
American Express's Actions in 2009:
In 2009, American Express halted its contributions to employees' pension plans in the United States and the UK as part of a restructuring process to cut costs.
American Express Supplemental Retirement Plan:
The Plan was amended and restated generally effective March 1, 1995, and renamed the American Express Company Supplemental Retirement Plan.
Ceased Benefit Accruals:
Generally effective July 1, 2007, benefit accruals under the American Express Retirement Plan were ceased.
Pension Benefit Guaranty Corporation (PBGC):
The PBGC is the agency that insures most defined benefit pension plans.

My Mom worked at American Express and that March 1, 1995 revision was any employee hired March 1, 1995 or later was not eligible Pension Plan but current employees grandfathered. Then in 2007 they stopped contributing new money to most people in the US and in 2009 they stopped contributing new money in UK and rest of US in 2009.

Was not feasible to pay people money for life. And people like my Mom stayed on American Express medical plan in retirement. That also was not feasible long term.

Right now the only people who have an American Express Pension are those hired before March 1 1995. That is 30 years ago.

AMEX is in a great place now. They did layoffs in 2000/01 and 2008/2009 and in 2020 so very few existing employees either based on Age of fact hard to survive three layoffs exist who was hired prior to 1995.

My Mom who did retire in 1995 as part of the pension plan restructuring they offered a package for workers at or near retirement age to leave. She took it. But I was invited to attend the retirement seminar with her in 1995 at the World Financial Center down by Wall Street and was in a big theater room and they went over the deal. Had to be over 55 to be offered. The room was full of 55-70 year old people in 1995 and American Express promised them a Pension rest of life with Medical and a one time small severance pay out plus they are coding it a lay off so every one is getting six months of unemployment regardless of age.

They added current employee retirement plans can be changed at anytime. But yours is locked in for life if you sign .My mom was 65 that year and was planning on staying to 70 but she took it.

American Express invented the modern Pension plan and even they saw in 1995 it was not sustainable long term.

I would love to see an American Express Spreadsheet who is alive and still getting a Pension.

The Feds should have followed up on what Amex did.

Ironic part American Express in 2026 could bring back the Pension in Retirement if they wanted as the 31 year break basically cleared out all the retirees on it and basically no current employee is eligible for any real money. Meaning you had to have worked at least 15-20 years prior to March 1, 1995 to have any real benefits. Not too many 1970s and 1980s American Express hired employees still on the payroll.

Govt workers got a full 30 extra years of benefits.

My first three jobs had pensions and the "old timers bragged about it. They were grandfathered. All of them stopped the Plans between 1979-1988. those firms are still in business. But those plans are long dead. Like the people who were on them.


The 401K was invented in 1978 and firms used that and cash balance pension plans invented in mid 1980s to get rid of traditonal Pension plans

Anonymous wrote:This would be an extra $270 a pay period for those at the GS15 cap.

Anonymous wrote:

Anonymous wrote:

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.

It really would be much more honest of them to just abolish the pension for all new employees, because it's a moneymaker for the government for people who have always contributed at the 4.4% level. A pension sounds nice in theory, and gives MAGAs an additional reason to hate government employees (maybe that's the reason they keep it around), but at 4.4%, most people simply will not come out ahead.

Anonymous wrote:

Anonymous wrote:

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.

It really would be much more honest of them to just abolish the pension for all new employees, because it's a moneymaker for the government for people who have always contributed at the 4.4% level. A pension sounds nice in theory, and gives MAGAs an additional reason to hate government employees (maybe that's the reason they keep it around), but at 4.4%, most people simply will not come out ahead.

Anonymous wrote:

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.