Attention FERs Employees

[Zebra]

I just read this on the Gov Executive website: Looking positive for FERs employees and Sick leave equity>
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Retirement reform bill clears the HouseBy Amelia Gruber agruber@govexec.com April 1, 2009
The House on Wednesday approved a retirement reform measure that includes language ensuring sick leave is treated similarly in both federal retirement systems.
The bill (H.R. 1804) would give workers in the newer Federal Employees Retirement System credit for their unused sick leave when they retire, putting them on par with colleagues in the older Civil Service Retirement System. It also contains provisions to enroll new employees automatically in the Thrift Savings Plan and create a Roth Individual Retirement Account option within the 401(k)-type program. It gives the TSP board the authority to add self-directed investment window options if doing so is in the best interest of participants.
Finally the legislation, sponsored by House Oversight and Government Reform Committee Chairman Rep. Edolphus Towns, D-N.Y., would remove rules that effectively penalize CSRS employees for working part-time at the end of their careers and allow FERS employees returning to government after a stint in the private sector to reinvest their retirement savings and claim credit for previous service.
The House passed the 2009 Federal Retirement Reform Act by a voice vote.
Federal employee and managers' groups praised passage of the bill, especially the provision equalizing sick leave policies under FERS and CSRS.
"Both groups of employees are dedicated public servants and both groups deserve to have their sick leave counted," said Colleen Kelley, president of the National Treasury Employees Union.
The Federal Managers Association noted that the measure would give FERS employees incentives to avoid taking unnecessary sick days, reducing the cost of sick leave to the government. FMA also applauded the TSP provisions and incentives for FERS employees to return to government service.
Darryl Perkinson, the group's national president, urged the Senate to take up the measure and pass it quickly.

 

[Guest2]

Thanks Ze !

 

[KAPLOWD]

Sounds Good to me !!!

Has anyone ever heard of increasing the percentage of 1.1% per year of service under FERS ?

 

[Zebra]

Kaplowd,

I believe it is already a factor if your age of retire is 60 or over. I know my benefit workup by opm based on my upcoming retirement is based on 1.1% factor. Check it out!

 

[McDuck]

Kaplowd,

I believe it is already a factor if your age of retire is 60 or over. I know my benefit workup by opm based on my upcoming retirement is based on 1.1% factor. Check it out!

1 percent of your high-3 average salary for each year of service if:
- Under Age 62 at Separation for Retirement or
- Age 62 or Older With Less Than 20 Years of Service

1.1 percent of your high-3 average salary for each year of service if
- Age 62 or Older at Separation With 20 or More Years of Service

Source of info: http://www.opm.gov/retire/pre/fers/computation.asp

 

[Zebra]

McDuck,

You are absolutely correct. Due to the fact I will be over 62 when I retired, is why HR worked estimate they used the 1.1%.

.1% is not much, but it is better than nothing, eh?

 

[Silverbird]

Don't knock it, it's an extra 10%. Although 1.1% looks small, remember it's a multiplier.

 

[Zebra]

UPDATE;
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Senate considers bill affecting federal retirementBy Alex M. Parker aparker@govexec.com June 2, 2009

The Senate this week will take up a bill that contains several provisions affecting federal workers, including one that would allow those enrolled in the Federal Employee Retirement System to count unused sick leave toward their pensions.
The Senate voted 86-11 on Tuesday to begin debate on H.R. 1256, legislation enabling the Food and Drug Administration to regulate tobacco products. The House approved the bill on April 2.
The legislation also includes measures that would automatically enroll federal hires into the Thrift Savings Plan; enable employees to invest their retirement money into mutual funds of their choice; allow TSP enrollees to create a Roth 401(k) so they do not have to pay taxes when funds are withdrawn; and let FERS employees include unused sick leave when calculating their retirement annuities.
The National Active and Retired Federal Employees Association sent a letter on Tuesday to Homeland Security and Governmental Affairs Chairman Sen. Joseph Lieberman, I-Conn., endorsing the provisions creating automatic enrollment and Roth options for the TSP, as well as the change in the FERS system.
In the letter, NARFE president Margaret Baptiste said making the change to the FERS system would correct an inequity between FERS and the Civil Service Retirement System. Employees hired before 1984 are covered under the Civil Service Retirement System and do receive such credit for unused sick leave.
Dan Adcock, legislative director for NARFE, said while his association supported the bill, the group is concerned about the idea of allowing employees to choose which mutual funds to invest their retirement money in.
"Certainly, we don't want to be paternalistic, but by the same token, we're concerned that federal employees might put all their eggs in one basket," Adcock said.
He said his organization would try to help educate enrollees about the option if it became law, but also would caution them that mutual funds typically are riskier investments and have higher administrative costs than the TSP.

 

[McDuck]

Has anyone ever heard of increasing the percentage of 1.1% per year of service under FERS ?

Really. Congressmen get 1.7%.