Thread: News From Federal Diary

From Federal Diary

Instead of a leap into retirement, federal employees may be given the opportunity to take a slow walk into the golden years.

The idea of phasing in retirement is a key feature in proposals recently sent to Congress by the Office of Personnel Management, which is concerned that federal agencies will need to hold on to their baby boomers if they are unable to attract skilled replacements in an increasingly competitive labor market.
Current rules, rooted in law, make it difficult for federal employees to switch to part-time work and offer little financial incentive for a retiree to come back to the government to work on a short-term project or serve as a mentor.

Projections show that about 60 percent of federal workers will be eligible for retirement over the next 10 years, and while officials do not expect them to leave all at once, they are worried that federal programs could be at risk if agencies fall behind in hiring replacements.

Most agencies have stepped up their recruitment efforts, but some officials are concerned that Uncle Sam will not be able to counter job offers made by corporations and nonprofit organizations. Some surveys also suggest that many young people are not interested in a federal career or would be interested in public service for only a part of their career.

To address some of these concerns, Linda M. Springer, director of the OPM, has sent proposals to Congress that would:

Full Story http://www.washingtonpost.com/wp-dyn...referrer=email
Swsop

Thrift Savings Plan Looks Good at 20

By Stephen Barr
Monday, August 6, 2007; Page D01

The Thrift Savings Plan is celebrating its 20th birthday this year, and the numbers for the 401(k)-type plan are looking pretty good.

Government workers add more than $1.6 billion each month, and have pumped up plan assets to $224 billion. Overhead and administrative expenses have been kept low, about 30 cents for each $1,000 invested.

And the outlook for federal employees nearing retirement seems promising.

Full Story

http://www.washingtonpost.com/wp-dyn...src=newsletter

"Those in their late 50s, with 10 to 20 years in the workforce, have averaged nearly $115,000 in their accounts." - Stephen Barr

A $115K TSP balance will generate $4,600 in taxable income ("rule of thumb" 4% per year withdrawal rate). Nice to have, but a little shaky for one leg of a three legged retirement stool.

I'd say for the average government employee, in their late 50s and nearing retirement, TSP has been a failure. However, it has saved Uncle Sam some money and helped shore up Social Security.