Future Feds will pay more in FERS

[James48843]

Good article on FEDERALNEWSRADIO about the change in FERS contribution rates for feds hired AFTER Dec 30 2012.

Under the Middle Class Tax Relief and Job Creation Act of 2012, feds hired after Dec. 30, 2012, or those with less than five years of previous federal service, will have to pay 2.3 percent more of their salaries toward their defined benefit pensions.

Employee contribution for future feds will cost the employee more out of pocket, and the government less, with no increase in benefit.

See the article at:
OMB budget guide details retirement contribution rates for future feds - FederalNewsRadio.com

 

[nasa1974]

Good article on FEDERALNEWSRADIO about the change in FERS contribution rates for feds hired AFTER Dec 30 2012.



Employee contribution for future feds will cost the employee more out of pocket, and the government less, with no increase in benefit.

See the article at:
OMB budget guide details retirement contribution rates for future feds - FederalNewsRadio.com

It stinks but they will be paying into their future retirement. Probably better to pay more now for a good pension later than pay the same or less and get less.

 

[burrocrat]

It stinks but they will be paying into their future retirement. Probably better to pay more now for a good pension later than pay the same or less and get less.

unless somebody spends it first and issues an iou instead before it comes back to you, re social security.

anybody want to buy some beach front property in arizona?

 

[Aitrus]

Well, at least they have this option to offset it: Should Eligible Federal Employees Consider New Phased Retirement Option?.

That is, if this phased option is still around when they retire...

 

[Aitrus]

It stinks but they will be paying into their future retirement. Probably better to pay more now for a good pension later than pay the same or less and get less.

But don't you know that the only way to fix a failed mandatory government program is to implement another mandatory one? Just listen to this lady! Why the U.S. Retirement System Has Failed - Yahoo! We should fire Bernake and put her in charge of the Fed!