Budget Deal

[Frixxxx]

No politics please, A deal has been reached.



Hopefully, the markets will respond in kind.....I will be posting articles and links as they become available.

First Link

 

[CrabClaw]

this is good... except for the reduction in federal workers pensions part...

 

[OBGibby]

No politics please, A deal has been reached....

Pretty tall order, saying that. Hard to keep politics out of a deal reached by politicians.

 

[Scout333]

this is good... except for the reduction in federal workers pensions part...

Any leak about what the reduction in federal worker's pension is?

 

[CrabClaw]

Any leak about what the reduction in federal worker's pension is?

no, have not heard the details

 

[Kaufmanrider]

no, have not heard the details

Murray and Ryan Introduce Bipartisan Budget-Conference Agreement | Budget.House.Gov

Scroll down to the end of the article and click on "summary"

If I read it correctly It looks like a 1.3% increase in retirement contributions for new hires hired after Dec 1, 2013, and a reduction in annual COLA's for working
age military retirees, i.e., COLA minus 1%, phased in over the next couple years.

 

[Scout333]

Murray and Ryan Introduce Bipartisan Budget-Conference Agreement | Budget.House.Gov

Scroll down to the end of the article and click on "summary"

If I read it correctly It looks like a 1.3% increase in retirement contributions for new hires hired after Dec 1, 2013, and a reduction in annual COLA's for working
age military retirees, i.e., COLA minus 1%, phased in over the next couple years.

Thanks for the update! The 1.3% increase is for new hires after 12-31-2013 with less than five years service (I guess rehires with five years service would be grandfathered in).

 

[weatherweenie]

Any leak about what the reduction in federal worker's pension is?

Under the agreement, pension contributions paid by federal civilian workers hired after January 1, 2014 will increase by 1.3%. This means that the contribution amount for new FERS employees would be 4.4% of their salaries instead of the 0.8% most federal employees now pay.
The agreement creates a three-tiered system for employee contributions to their civil service pensions. Those hired before this year pay 0.8 percent of their salary, those hired in 2013 pay 3.1 percent and those hired after January 1, 2014 would pay 4.4 percent under the budget agreement if the agreement negotiated by Ryan and Murray is finalized by Congress.

 

[k0nkuzh0n]

Under the agreement, pension contributions paid by federal civilian workers hired after January 1, 2014 will increase by 1.3%. This means that the contribution amount for new FERS employees would be 4.4% of their salaries instead of the 0.8% most federal employees now pay.
The agreement creates a three-tiered system for employee contributions to their civil service pensions. Those hired before this year pay 0.8 percent of their salary, those hired in 2013 pay 3.1 percent and those hired after January 1, 2014 would pay 4.4 percent under the budget agreement if the agreement negotiated by Ryan and Murray is finalized by Congress.

Didnt it increase from 0.8? Or as that also just for new people. Pretty sure mines not 0.8% any more. I believe its 2.1

 

[Frixxxx]

Pretty tall order, saying that. Hard to keep politics out of a deal reached by politicians.

If we stick to just the details, then it should be easy peasy.

 

[Kaufmanrider]

I was just reading the actual Bill. Apparently it is Jan 1, 2014. The initial summary posted on the House website last night must have forgot to put the 3 in the date they had posted, Dec 1.

I also saw where they are going to limit the amount a contractor can make to 487,000. Recently, it was in the news the amount contractors could be paid went from 200,000 or so up to 900,000.

Subsection 702(a) would amend section 4304(a)(16) of title 41 United States Code, and
section 2324(e)(1)(P) of title 10, United States Code, to replace the current statutory benchmark
compensation formula used to determine the amount of contractor compensation that is
considered an allowable cost for a federal contract, with a cap of $487,000. It also would limit
additional changes to this level to the U.S. Bureau of Labor Statistics Employment Cost Index
for all workers.

And OPM is now authorized to offer Self plus one health insurance coverage. That should help most retirees.