Retired Fed here. Fortunately, my pension is locked in. But I do wonder whether they’ll change the pension formula for future new hires.
It seems to me that they've already wrung the blood out of that turnip. The Federal Employees Retirement System (FERS) was put into place back in 1985 (or so) and replaced The Civil Service Retirement System (CSRS) for all new hires after that point. FERS consists of Social Security plus a Thrift Savings Plan with matching contributions up to 5%. About the same as any retirement plan in industry these days.
The number of CSRS employees left in government has dwindled pretty far and all of them are now retirement age or retired. After working for 35 plus years for a pension it would be unfair (even criminal) to change it on them at the last minute when they can no longer plan for it.
That is why FERS was implemented as it was, to give the employee a chance to plan. New hires were given 40 years to plan for retirement.
The Civil Service Retirement System that we knew and loved hasn’t existed for a number of years. Now, most of those I know who are still in the Fed workforce say that they won’t be able to retire until they are 66, and the even younger employees won’t be able to retire until 67, since their pension is now linked to Social Security.
It wouldn’t surprise me any if there was a reduction in the amount of matching funds that the government provides to current workers who invest in the Thrift Savings Plan. My son now works for the Feds, so he’ll keep me posted on any changes they make.
Retired Fed here. Fortunately, my pension is locked in. But I do wonder whether they’ll change the pension formula for future new hires.
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Pensions should be eliminated for fedgov hires ,, 401k’s (403’s) like all the rest of us.