Page 1 of 7 123 ... LastLast
Results 1 to 12 of 75

Thread: The end of FERS Supplement - and other stuff

  1. #1

    Join Date
    Apr 2005
    Posts
    13,364
    Blog Entries
    9

    Default The end of FERS Supplement - and other stuff

    Just in case anybody missed it last week- the Trump Administration proposal on Federal Employee retirement was released last week.

    It includes DOING AWAY WITH THE FERS SUPPLEMENT; Increasing FERS employee contribution from 0.8% to 7% over a number of years; and discussion of a completion removal of FERS altogether, with a replacement of a TSP-ONLY situation for new employees. In addition, FERS would be redesigned to eliminate any COST OF LIVING ADJUSTMENTS in the FERS retirement in the future, AND reduce CSRS Cost of Living Adjustments. All retirement calculations would be reduced based on a High-Five rather than the current High-Three.

    Some of the proposals, including the elimination of FERS Supplement, would take effect immediately- in 2018.

    Read more here:

    Trump?s 2018 Budget Reportedly Targets Federal Retirement Programs - Pay & Benefits - GovExec.com

    If you are a federal employee approaching retirement age, this will be a major, major hit if passed.


  2.  
  3. #2

    Join Date
    Apr 2005
    Posts
    13,364
    Blog Entries
    9

    Default re: The end of FERS Supplement - and other stuff

    • Increase Federal Employee Retirement System (FERS) employee contributions from workers by 1 percentage point each year until they equal the government’s contribution. This would take five to six years and would result in increased out-of-pocket payments of about 6 percent over that period. Out-of-pocket payments by federal law enforcement officers would increase by the same amount, but would not equal the greater contributions from law enforcement agencies.
    • Base future retirement benefits on the average of the high five years of salary instead of the current high three
    • Eliminate cost of living adjustments (COLA) for current and future FERS employees
    • Cut the COLA for Civil Service Retirement System (CSRS) employees by 0.5 percent from what the formula would allowed
    • Eliminate supplement payments for FERS employees who retire beginning in 2018. The supplement approximates the value of Social Security benefits for those who retire before age 62.

    more:
    https://www.washingtonpost.com/news/...=.6442f8355100

  4.  
  5. #3

    Join Date
    Jul 2016
    Location
    Texas
    Posts
    1,912

    Default Re: The end of FERS Supplement - and other stuff

    For most of the proposed changes, I thought they could only implement these type of changes to new employees as they did when they changed from CSRS to FERS and as they did with FERS-RAE & FERS-FRAE in 2013 & 2014, increasing the retirement contribution.

  6.  
  7. #4

    Join Date
    Jun 2004
    Location
    Boiled Peanut, Georgia, USA
    Posts
    51,572

    Default Re: The end of FERS Supplement - and other stuff

    I had to wait to take my Social Security until I was 62, but I took it at 64 and 9 months why should FERS folks be able to retire early and get a subsidy? I paid 8% for the whole time into my retirement plan, you paid less than 1% I was CSRS and qualified for Social Security they cut my SSN by 60% when I retired, you FERS folks are complaining, what for?
    Links Crude Settle $70.96 05-14-2018
    +$.26 Gain




  8.  
  9. #5

    Join Date
    Apr 2005
    Posts
    13,364
    Blog Entries
    9

    Default Re: The end of FERS Supplement - and other stuff

    Why?, you ask?

    Because that was the deal on the table at the time of career decision making, Nnuut. It was like- do I take the private industry career path that leads to more cash possibilities, but fewer retirement benefits, or do I take the federal career, with fewer hours of work and a decent retirement, but never will warn the cash that the private sector had available.

    So for 29 years I've had the deal where I will do X work, and in return, I will expect to get a decent retirement after 30 years, with cola built in, so I will never have to be poor again. Not rich, but blessed beyond many of my peer group.

    And then the R's take office, and suddenly decide to cut 35% of my retirement income right off the bat, (no FERS supplement) and no COLA if I get lucky enough to live mute than a few years.

    This close- and now those nice conservative folk wish to change the deal and have me take a huge cut.

    Thanks, right wingers.


    Sent from my iPhone using TSP Talk Forums

  10.  
  11. #6

    Join Date
    Jul 2016
    Location
    Texas
    Posts
    1,912

    Default Re: The end of FERS Supplement - and other stuff

    Quote Originally Posted by nnuut View Post
    I had to wait to take my Social Security until I was 62, but I took it at 64 and 9 months why should FERS folks be able to retire early and get a subsidy? I paid 8% for the whole time into my retirement plan, you paid less than 1% I was CSRS and qualified for Social Security they cut my SSN by 60% when I retired, you FERS folks are complaining, what for?
    Sorry NNUUT, but it sounds like you are whining too. You know you got a better deal with CSRS.

    Social Security is 6.2% + .8% = 7% FERS Contribution, (those hired in 2013 & 2014 pay 3.1% & 4.4%)
    The FERS 1% per year pension is still half of the equivalent CSRS Pension and there is no FERS COLA until age 62
    (FERS COLA is decremented up to 1% if rate is over 2%).

    CSRS Contributions ranges from 7% Regular Employees to 8% Congress & Judges; 7.5% LEOs
    What was your federal job NUUTT?

    The reason for FERS was to save money & part of the fix for Social Security at the time--adding Feds to increase the pool.
    FERS employees have to wait until 62 for Social Security.
    The supplement is a gap measure-- FERS Pension (no COLA) + Supplement < normal CSRS Pension w/COLA
    The best thing about FERS is the TSP Matching for those that take advantage of it.
    The long-term costs of paying the FERS retirement benefit are about half as much as future CSRS retirement benefits due to the less generous computation of the retirement benefit. That means the long-range costs of FERS are lower.
    Here?s Some Good News About Your Retirement Benefit - Retirement Planning - Pay & Benefits - GovExec.com

  12.  
  13. #7

    Default Re: The end of FERS Supplement - and other stuff

    I know that CSRS employees didn't pay into SS on their Government salary but did they pay into Medicare?

    I always lumped that with SS for a 7.5% deduction we get to our salary.
    Allocations as of COB Jan 29 : 100% C. | Retirement Date:Dec 2022
    Past Returns:
    2017 13.10%, 2016 -1.79%, 2015 8.71%, 2014 -7.39%, 2013 17.29%,5Yr Avg 5.58%

  14.  
  15. #8

    Default Re: The end of FERS Supplement - and other stuff

    I hate to say this but these cuts are just about the same ones Paul Ryan proposed when he was House Committee Chairman years ago. To refresh your memory just about 8 paragraphs down in the article. https://www.washingtonpost.com/news/federal-eye/wp/2013/10/29/gop-lawmakers-eye-federal-retiree-benefits-in-upcoming-budget-talks/


    It doesn't surprise me that these proposals came up again. All that was needed was for the right pegs to fall in place. I still have a ways to go before retirement and can only hope now that it fails or we get grandfathered. I will say that the pension and TSP was the reason I went government in the first place because, I elected to take a pay cut to move into a government position. Job security was another reason. My reasoning was I wanted to add two legs to the retirement stool.

  16.  
  17. #9

    Join Date
    Jun 2004
    Location
    Boiled Peanut, Georgia, USA
    Posts
    51,572

    Default Re: The end of FERS Supplement - and other stuff

    Quote Originally Posted by evilanne View Post
    Sorry NNUUT, but it sounds like you are whining too. You know you got a better deal with CSRS.

    Social Security is 6.2% + .8% = 7% FERS Contribution, (those hired in 2013 & 2014 pay 3.1% & 4.4%)
    The FERS 1% per year pension is still half of the equivalent CSRS Pension and there is no FERS COLA until age 62
    (FERS COLA is decremented up to 1% if rate is over 2%).

    CSRS Contributions ranges from 7% Regular Employees to 8% Congress & Judges; 7.5% LEOs
    What was your federal job NUUTT?

    The reason for FERS was to save money & part of the fix for Social Security at the time--adding Feds to increase the pool.
    FERS employees have to wait until 62 for Social Security.
    The supplement is a gap measure-- FERS Pension (no COLA) + Supplement < normal CSRS Pension w/COLA
    The best thing about FERS is the TSP Matching for those that take advantage of it.
    Here?s Some Good News About Your Retirement Benefit - Retirement Planning - Pay & Benefits - GovExec.com

    I retired in 2010! With no matching in tsp, that 5% would have been nice. Yes it did vary from 7% to 8%, sometimes I forget stuff, Yes I was wrong. Cola? What damn COLA?
    Links Crude Settle $70.96 05-14-2018
    +$.26 Gain





  18.  
  19. #10

    Join Date
    Jul 2016
    Location
    Texas
    Posts
    1,912

    Default Re: The end of FERS Supplement - and other stuff

    Quote Originally Posted by nnuut View Post
    I retired in 2010! With no matching in tsp, that 5% would have been nice. Yes it did vary from 7% to 8%, sometimes I forget stuff, Yes I was wrong. Cola? What damn COLA?
    In your case, 3 out of 7 years have been 0, but you have gotten 8.8% in increases thus far.
    Annual COLA Percentages:

    Year
    SS & CSRS
    FERS
    2017 0.3 0.3
    2016 0 0
    2015 1.7 1.7
    2014 1.5 1.5
    2013 1.7 1.7
    2012 3.6 2.6
    2011 0 0

  20.  
  21. #11

    Join Date
    Jul 2016
    Location
    Texas
    Posts
    1,912

    Default Re: The end of FERS Supplement - and other stuff

    Quote Originally Posted by Cactus View Post
    I know that CSRS employees didn't pay into SS on their Government salary but did they pay into Medicare?
    Both FERS & CSRS pay into Medicare.

  22.  
  23. #12

    Default Re: The end of FERS Supplement - and other stuff

    Thanx for the info, evilanne.
    Allocations as of COB Jan 29 : 100% C. | Retirement Date:Dec 2022
    Past Returns:
    2017 13.10%, 2016 -1.79%, 2015 8.71%, 2014 -7.39%, 2013 17.29%,5Yr Avg 5.58%

  24.  
Page 1 of 7 123 ... LastLast

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
S&P 500 (C Fund)
S&P 500 INDEX,RTH (^GSPC)
DWCPF (S Fund)
Dow Jones U.S. Completion Total Stock Market Index (^DWCPF)
EFA (I Fund)
iShares MSCI EAFE Index (EFA)
AGG (F Fund)
iShares Lehman Aggregate Bond (AGG)
Source: https://finance.google.com/finance