Federal retirement benefits likely target for GOP

[antigop]

http://www.pionline.com/article/20141117/ONLINE/141119909/federal-retirement-benefits-likely-target-for-gop

The first indication of how Republicans on Capitol Hill might change federal retirement benefits came in April, when the House of Representatives approved a fiscal 2015 federal budget raising federal employees' pension contributions, in part to counter revenue lost from reduced corporate and personal tax rates. Under the direction of House Budget Committee Chairman Paul Ryan, R-Wis., the budget called for federal workers to contribute up to 6.35% of their salaries to their defined benefit plan, and for newer workers to be only in a defined contribution plan. People participating in the CSRS would see their contributions rise to 12.5% from the current 7%. The measure did not advance to the Senate for final enactment.

On Oct. 29, Mr. Ryan and Darrell Issa, R-Calif., chairman of the House Oversight and Government Reform Committee, wrote a letter to Douglas Elmendorf, director of the Congressional Budget Office, asking the CBO to develop model projections of the long-term impact of the federal retirement system on the federal budget. They also asked for “different options” for reform, including some of the ideas in the Ryan budget proposal.

“The report should include, but not limit itself to, adjusting the retirement contributions of federal employees, altering the formula for computing pension benefit payments, and expanding the defined contribution component while reducing the defined benefit component,” the letter said. “CBO should be prepared to provide specific information about the long-term budgetary effects of substantial proposed changes,” they said.[\div]

[spanone]

1. let me guess, they will exempt their retirement benefits, eh?

[antigop]

3. yes, I'm really curious as to what their benefits will be. nt

[madville]

4. They get about double the pension calculation

As other federal employees and they get it earlier with less service. That probably won't be touched.

[cyberswede]

2. But they'll still get their pension for life, no doubt.

Assholes.

[madville]

5. The last change was just for new hires

The last change about a year ago saw the pension contribution go from 0.8% to 3.2% of the employee's salary if I remember right.

It will be pretty tough to change current employees plans or calculations. I would consider reducing my pension benefit if they increased the matched percentage in the TSP program. It would depend in the numbers.

The current FERS pension for regular federal employees is 1% per year. So if I do 30 years and my high three years are 60k per year for example, my pension would be around $18,000 a year. At the same time I will have about $500,000 in my TSP which at retirement is converted to an interest-bearing annuity and pays out at whatever rate the employee decides. So if the TSP annuity makes 2% a year you can draw more than the pension off of it for many years or take bigger lump sums.

Plus right now if you hit 30 years of service and the MRA (minimum retirement age) you get your social security early at age 57 on top of the pension and whatever payout you elect from your TSP plus health insurance at regular employee rates until Medicare age. FERS retirement can be a pretty sweet deal but the old CSRS for employees hired before 1980 was even better in some regards because they never paid into social security.

[RobinA]

6. Federal Employees

get social security now?

[madville]

7. Any federal employee hired after 1980

Into the current FERS retirement program or any old CSRS employee that voluntarily converted to FERS when given the option.

Yes, current federal employees hired after about 1980 get their pension, matched TSP funds, and full social security benefits, the employee contributes to all three and is entitled to them.

[MADem]

8. That's a big chunk of their constituency they're screwing.

Bill Clinton reduced the Federal footprint; George Bush expanded it insanely. Most of the people on the federal payroll were hired by Republicans.