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Thread: The end of FERS Supplement - and other stuff

  1. #49

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

    I agree RazorCat--most changes will most likely apply to new employees. Them going after FERS employee doesn't make any sense;swear

    FERS retirement system is fully funded currently, it is the CSRS system that was never funded properly. If you retire early, you currently don't get any COLA until you reach 62 and then your pension is at a lower percentage than what CSRS retirees get for equal years of service. My pension is frozen for more than 10 years, so the Supplement will help @ MRA. If they get rid of the supplement, the end result will be that those employees will remain longer at the higher end of pay scale; if they wait until age 62 they get 1.1% vs 1% per year--resulting in higher payroll (current costs) and retirement costs (future costs) in the long run.

    Under CSRS, they get COLAs the year after they retire with higher pensions. They only go after FERS because there are more federal employees under the new system now

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  3. #50

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

    You don't consider the 0.5% reduction in COLA for CSRS significant? I would say they are not "only going after FERS." Usually they don't go after retirees because they cannot change much at that point, so I'm hoping this is just a bargaining chip, but feel there not many that care about people with pensions.

    I will say the few that jumped from CSRS to FERS when FERS came along, in my agency, at least the ones I know of their personal situations, they faired quite well, mostly because of the TSP contributions by the government (and a good market).

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  5. #51

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

    Quote Originally Posted by kam View Post
    You don't consider the 0.5% reduction in COLA for CSRS significant? I would say they are not "only going after FERS." Usually they don't go after retirees because they cannot change much at that point, so I'm hoping this is just a bargaining chip, but feel there not many that care about people with pensions.

    I will say the few that jumped from CSRS to FERS when FERS came along, in my agency, at least the ones I know of their personal situations, they faired quite well, mostly because of the TSP contributions by the government (and a good market).
    No one said .5% reduction for CSRS was insignificant but it is only a fraction of the proposed cuts (or increases) to FERS being proposed. COLA reductions to FERS retirees are already baked into any COLA > 2%. Historically, FERS COLAs have been between 0 to 1% below SS & CSRS COLAs - Cost of Living Adjustment (COLA) | 2018 Federal FERS & CSRS Annuity Adjustments. FERS retiree also don't get any COLAs until age 62. To cut it further makes no sense--not that any cut isn't significant to those that are impacted. In other words, the implementation of FERS already cut the COLA for FERS retirees back in the mid 1980s.

    The change from CSRS to FERS actually made a lot sense, which is why FERS has always been adequately funded and also increased number of employees subject to Social Security resulting in lower overall cost to the government. The supplement was to bridge the gap for the SS leg of the stool between MRA & age 62 when eligible for social security at a discounted rate (approximately 25-30% below SS @ FRA depending on when you were born) The ones with FERS offset have a combination of both systems which can be good or bad depending on the specific situation.

    TSP is a great benefit for those who take advantage of it and contribute more than just the 5% matching over the years. If invested well, one can achieve the same level of retirement income as someone under CSRS gets from their pension alone--but this would be more of the exception rather than the rule. The FERS was in effect already a cut to the CSRS, placing more responsibility on the employee to plan for retirement while reducing the overall cost to the government.

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  7. #52

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

    Quote Originally Posted by kam View Post
    You don't consider the 0.5% reduction in COLA for CSRS significant? I would say they are not "only going after FERS." Usually they don't go after retirees because they cannot change much at that point, so I'm hoping this is just a bargaining chip, but feel there not many that care about people with pensions.

    I will say the few that jumped from CSRS to FERS when FERS came along, in my agency, at least the ones I know of their personal situations, they faired quite well, mostly because of the TSP contributions by the government (and a good market).
    I consider anything that adversely affects retiree pay to be significant. But, continuing to get a COLA with a mere 0.5% reduction (CSRS) is significantly more advantageous than eliminating COLAs altogether (FERS) on top of losing a significant portion of your retirement pay (FERS Supplement).
    Add that to the fact that FERS employee contributions are being used to cover the unfunded liabilities of the CSRS, and will for decades to come, and it would appear the targeting of FERS benefits vs. CSRS benefits is out to balance.
    CSRS Budget and Trust Fund Issues
    Nothing against CSRS retirees, I almost was one (would have converted to FERS).
    It simply is, what it is.

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  9. #53

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

    Do the math. 0.5% over the course of 20-30 years, it adds up.

    Same thing, on a bigger scale, with pay freezes.

    Quote Originally Posted by RazorCat View Post
    I consider anything that adversely affects retiree pay to be significant. But, continuing to get a COLA with a mere 0.5% reduction (CSRS) is significantly more advantageous than eliminating COLAs altogether (FERS) on top of losing a significant portion of your retirement pay (FERS Supplement).
    Add that to the fact that FERS employee contributions are being used to cover the unfunded liabilities of the CSRS, and will for decades to come, and it would appear the targeting of FERS benefits vs. CSRS benefits is out to balance.
    CSRS Budget and Trust Fund Issues
    Nothing against CSRS retirees, I almost was one (would have converted to FERS).
    It simply is, what it is.
    Weatherweenie's Account Talk
    Teddy Roosevelt: Patriotism means to stand by the country. It does not mean to stand by the president or any other public official. Expected retirement date: November 2023

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  11. #54

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

    This budget proposal is an assault on all government employees and retirees.

    Pay freeze, FERS supplement and and lower to no COLA for retirees are unacceptable.
    Weatherweenie's Account Talk
    Teddy Roosevelt: Patriotism means to stand by the country. It does not mean to stand by the president or any other public official. Expected retirement date: November 2023


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  13. #55

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

    Quote Originally Posted by weatherweenie View Post
    Do the math. 0.5% over the course of 20-30 years, it adds up.

    Same thing, on a bigger scale, with pay freezes.
    Again, absolutely nothing meant negative about CSRS retirees. But, a 0.5% reduction and getting some sort of COLA is better than nothing at all which is what was proposed for FERS. There's never been COLAs given on the FERS supplement.
    The House striped that, and several other provisions out anyway, so it's not a factor at this point.

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  15. #56

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

    We CSRS retired Employees are the Enemy,,,,, AGAIN!
    05/12/2021
    LS CRUDE Oil
    =$66.08 a Barrel, Daily Status +$.80

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  17. #57

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

    CSRS retiree's that earned Social Security credits outside the government will see a huge deduction to their SS dollars when they try to collect.
    May the force be with us.

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  19. #58

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

    I think the strategy is to attack government benefits that they are unlikely to ever get passed for existing employees so that when none of these come to fruition, existing employees will be more accepting of future pay freezes. A replacement system to FERS for new employee would likely be years down the road as they already modified the existing system with FERS-RAE & FRAE (https://www.fedsmith.com/2014/04/07/fers-fers-rae-fers-frae-what-does-all-this-mean/) Just look at the current implementation of BRS (modeled after FERS) http://militarypay.defense.gov/Porta...-27-084201-583. As previously stated, FERS is not the problem.

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  21. #59

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

    Quote Originally Posted by nnuut View Post
    We CSRS retired Employees are the Enemy,,,,, AGAIN!
    Actually the enemy is Congress who never properly funded CSRS and who want to mess with FERS now.

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  23. #60

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

    Quote Originally Posted by nasa1974 View Post
    CSRS retiree's that earned Social Security credits outside the government will see a huge deduction to their SS dollars when they try to collect.
    Actually they reduced my SSA by 60% and we didn't get that 5% Matching TSP thing, and I paid 8% a year for retirement for 36 years. How much more does the FERS need, take all you want.
    05/12/2021
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    =$66.08 a Barrel, Daily Status +$.80

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