Skip to comments.Feds plan their exits: Interest surges in retirement seminars
Posted on 09/13/2011 8:05:02 AM PDT by Poundstone
Earlier this year, Army employee Louis Bornman watched the news grow worse and worse.
Pay freezes. Budget cuts. Politicians demonizing federal employees. But for Bornman, the final straw was when Congress began looking at cutting federal pensions as a way to reduce the deficit. His last day as an operations research analyst at Fort Leavenworth, Kan., was July 30.
"I couldn't afford not to retire," Bornman said. "You never know when things will change."
Bornman's not alone. Federal employees across the nation are becoming more nervous about proposals to slash their benefits, and many are eyeing the exit door to avoid possible changes.
(Excerpt) Read more at fedsmith.com ...
Glad I retired from the federal government last year!
The rest of us are glad you “retired” to.
Sounds like Louis needs to call a WAHHBALANCE!
Retirement may not be the best option, especially if you’re still relatively young (late fifties, early-to-mid sixties). I wouldn’t assume that the value of your retirement as it presently stands will remain the same. Better to continue working and saving. At sixty, you might well last another thirty to thirty-five years.
Good point. Of course, if you can get a full retirement package at, say, age 55, and then get a good full-time private sector job, that’s probably the best of both worlds.
Many government pension systems are the result of a corrupt deal between elected officials and government employees. The politicians obtain political support in exchange for the promise of lavish but unfunded benefits. The future taxpayers who have to pay those benefits are not party to the deal, are not morally bound by it, and should not be legally bound to it either. So, if I were a government employee, I wouldn’t be thinking of my retirement as 100% fixed or guaranteed.
Your pension will be reduced either directly or indirectly. Government spending levels cannot be sustained. Pensions are a substantial part of government spending at all levels including the federal level. The federal government has $5 trillion of unfunded pension liability growing at $300 billion per year.
I doubt that direct pension reductions will occur. Instead, we are headed for a Greek style meltdown with the dollar collapsing followed by the inability to borrow at reasonable interest rates. Almost all government spending will be impacted as well as the general standard of living.
There are no assets to support your federal pension. State and local governments do not have adequate assets to support the pensions. Your pension is supported only by the willingness of the rest of the world to accept our fiat currency. This situation will not continue indefinitely. External entities will force the painful reductions in government spending that politicians and voters will not.
The Obama Administration...creating and saving jobs across America!
Well, you have an apocalyptic view not shared by most of the economist community.
And don’t make the mistake of lumping federal pension obligations in with state/local pension obligations. The federal government has a means to fund its pension obligations not available to states and localities: by printing money.
Two decades from now, the new Hoovervilles and Shantytowns will be populated by destitute former Government Employees who retired in their fifties, assuming that pension would always be there for them.
Many Federal employees make the mistake of enrolling in the Fed LTC plan without shopping around first.
When considering retirement one must consider having a good LTC plan in place.
And while the Federal LTC program provides coverage for many, it seldom offers the best value... ...especially for those who are healthy non-smokers or married.
Before enrolling in a LTC plan, I would strongly encourage you to seek competitive quotes from several of the top carriers. (Prudential, Mutual of Omaha, Transamerica, Genworth, John Hancock...etc.)
An LTC specialist should be able to provide an “apples to apples” comparison between the Fed plan and the other top programs.
If you need assistance locating such a specialist, feel free to contact me privately.
Proudpapa, I think you’re absolutely right. The Federal LTC plan has no government subsidy (unlike the FEHB Plan). It’s just a group plan with a contract with an insurance company. I too believe there are a number of better options out there offered by competing companies.