No more Annuity Supplement in 2018 for all federal employees

[xyzmpe77joe]

This proposal is not from President Trump !!! This proposal is from OPM to President Trump!!! This will affect all federal employees.
Trump?s 2018 Budget Reportedly Targets Federal Retirement Programs - Pay & Benefits - GovExec.com
“” Finally, the proposal would eliminate supplemental payments for FERS employees who retire before Social Security kicks in at age 62, beginning for those who retire in 2018.""

If you are retiring after 2017 there will be no more Annuity Supplement if this is not stopped.

OPM owes billions to Hundreds of thousands to military federal employees, for the past 31 years they have been cheating us. This is there cover up plain. All federal employees have been paying in to FERS for years. How can they just take way our benefits. All federal employees needs to fight back !!! Find me on Twitter and fight with me!!! Pass this on to all federal employees.

@XyzMpe77joe

 

[FireWeatherMet]

This proposal is not from President Trump !!! This proposal is from OPM to President Trump!!! This will affect all federal employees.
Trump?s 2018 Budget Reportedly Targets Federal Retirement Programs - Pay & Benefits - GovExec.com
“” Finally, the proposal would eliminate supplemental payments for FERS employees who retire before Social Security kicks in at age 62, beginning for those who retire in 2018.""

If you are retiring after 2017 there will be no more Annuity Supplement if this is not stopped.

OPM owes billions to Hundreds of thousands to military federal employees, for the past 31 years they have been cheating us. This is there cover up plain. All federal employees have been paying in to FERS for years. How can they just take way our benefits. All federal employees needs to fight back !!! Find me on Twitter and fight with me!!! Pass this on to all federal employees.

@XyzMpe77joe

WH and Congress decide these things...not the agencies themselves.

White House Throws Weight Behind Cutting Feds’ Retirement, Health Benefits

White House Throws Weight Behind Cutting Feds? Retirement, Health Benefits - Pay & Benefits - GovExec.com

 

[tsptalk]

Future of TSP Supplememntal

Finally, the proposal would eliminate supplemental payments for FERS employees who retire before Social Security kicks in at age 62, beginning for those who retire in 2018.

Does anyone know the latest on the fate of the TSP Supplemental portion of FERS?

Are they saying any more? Would it be for newer employees, everyone, grandfathering current participants, etc.?

I actually gave mine up when I resigned many years ago, but my wife is trying to pick her retirement date and it would be good to know.

What do you know? Thanks!

 

[GREENBAYPACKERS]

Re: Future of TSP Supplememntal

House put forth their recommendation for all of Trump's cuts, so it'll be up to the Senate to approve that portion (which they probably will) and Trump to sign it (which he will). Nobody grandfathered and no exemptions for LEOs or mandatory retirement ages.

 

[uscfanhawaii]

Re: Future of TSP Supplememntal

House put forth their recommendation for all of Trump's cuts, so it'll be up to the Senate to approve that portion (which they probably will) and Trump to sign it (which he will). Nobody grandfathered and no exemptions for LEOs or mandatory retirement ages.

Can't put too much trust in the House actions. They have voted for all of the 'Trump federal benefits cuts' for years...like 8 at least.
The key will be the Senate. Of course the Senate has the GOP majority now, so definitely has a higher chance. Join NARFE, AARP, FMA and add your voice to them to stop the attack on Fed benefits.

Some of the R's come from areas with a lot of Fed workers, so it won't be a shoe in. My guess is that it will be more likely to affect new hires. Grandfather the existing workers. But that's not anywhere near guaranteed either. Should hear more about it after the Senate finally decides what it's going to do (or not do) wrt Health Care. It may be part of the 'new tax plan' that will be the next big Senate discussion. :scratchchin:

 

[GREENBAYPACKERS]

Re: Future of TSP Supplememntal

Im already part of the Treasury Union (NTEU), so I've been making my voice known to my reps

 

[RazorCat]

Re: Future of TSP Supplememntal

Tom, she might consider getting while the getting is good. The thing that sticks out to me is they keep going after FERS benefits (like the supplement) and FERS COLAs and all the while they're using FERS program funds to help fund CSRS. FERS was running a surplus up until 3-4 years ago. Now it's running a deficit like CSRS because it's being raided to offset the CSRS deficit.
Now they want to raid it on the front and back end.

House Budget Proposal Includes Cuts to Federal Employee Retirement Benefits

House Budget Proposal Includes Cuts to Federal Employee Retirement Benefits
The White House's 2018 budget proposal released in May included:

• An increase of 1 percent in retirement contributions for those in the Federal Employee Retirement System (FERS) -- phased over a period of several years.
• Instead of using the current high three average salary to calculate retirement annuities, replace with high five year average salary baseline.
• Eliminate the cost-of-living adjustments (COLA) to current and future FERS employees
• Reduce the COLA for CSRS employees by 0.5 percent.
• Eliminate the FERS annuity supplement for eligible employees retiring 2018 and beyond.

 

[evilanne]

Re: Future of TSP Supplememntal

I don't understand why they are going after the COLAs so aggressively. Currently CSRS COLA is same as SS but their pensions are much more generous than FERS or SS. FERS doesn't even get any COLA until age 62 and it is already .5% less than SS & CSRS, although SS full benefits are not available until 65-67. Doing away with the supplement and COLA for FERS will likely delay retirement for many government employees which is counter to the administration's stated goal or reducing size of federal government through attrition. I see a lot of legal cases evolving for most of these if they actually pass.

 

[tsptalk]

Re: Future of TSP Supplememntal

House GOP Takes Cue From Trump, Targets Federal Retirement - Pay & Benefits - GovExec.com

The House resolution would require federal employees to contribute more to their own retirement funds, a deficit-reduction strategy that’s gained traction in recent years. Additionally, it would eliminate annuity supplements for retirees covered by the Federal Employees Retirement System who retire before they are eligible for Social Security benefits.

However, the proposal provides does not define the size of the contribution increase, nor does it stipulate which employees would no longer receive annuity supplements—all future retirees or only new hires.

 

[uscfanhawaii]

Re: Future of TSP Supplememntal

http://www.narfe.org/pdf/feds_under_attack_webinar_07202017.pdf

Narfe white paper on the proposed cuts to Feds.

 

[Boghie]

Re: Future of TSP Supplememntal

The battlefield has been prepped...

Current or very near future politicians (of both parties) will be jiggering the numbers and lobbing grenades to justify their actions. There ain't no money in our pension lock box - those assets are in the 'G Fund' which is very short term rolling debt borrowed for day to day expenses. The politicians are fighting because there is no design margin anymore - there is no vig.

So, sorry Tom, I don't think pensions are 100% safe whether your wife retires Monday or ten years of Mondays from now. It is really just a matter of how much a haircut will take place.

Very happy for our 401(k) (ie. TSP). Current and near term politicians cannot directly 'honor' the promises of politicians of yesteryear by jiggering F/C/S/I...

 

[Boghie]

Re: Future of TSP Supplememntal

http://www.narfe.org/pdf/feds_under_attack_webinar_07202017.pdf

Narfe white paper on the proposed cuts to Feds.

USCFanHawaii,

Your thinking is old school. When there ain't no money there ain't no honey. Politicians did not invest our tax and borrowed money well enough to grow the economic - and thus the tax - base high enough to 'honor' their promises. We are in for a haircut - and, some of that is undeserved but it will be real.

 

[nnuut]

Re: Future of TSP Supplememntal

Don't worry FERS Folks, us CSRS Retirees are dying off like Rats leaving a sinking ship.

 

[Boghie]

Re: Future of TSP Supplememntal

Hey Nnuut,

Both CSRS and the FERS pensions are in the same boat. Neither is funded except by loaning money to a debtor that continuously rolls over their accruing balance!!!

Anyone want to invest in that?

My best guess is that both Social Security and our pensions will take a 25% haircut. Even if we - via our chosen representatives - act now it is probably too late to fund the full promise of both programs. However, if we and America make some hard financial decisions we can reduce the haircut on both - not to mention Medicare - to some extent. As they say in finances 'Time is Money'. We have no time. Soon we will have to make spending decisions no politician wants to make. Will they pay out Social Security or Federal pensions? Will they fully fund Medicaid or Social Security? How much can we take out of DoD active duty, retirement, and medical funding? Those choices were much easier a while back. They are getting much harder now.

For me, if they jack my taxes up I will use pre-tax contributions and other means to drop my taxes to the current level. I have done so in the past and see myself doing it again in the future:smile:

 

[uscfanhawaii]

Re: Future of TSP Supplememntal

USCFanHawaii,

Your thinking is old school. When there ain't no money there ain't no honey. Politicians did not invest our tax and borrowed money well enough to grow the economic - and thus the tax - base high enough to 'honor' their promises. We are in for a haircut - and, some of that is undeserved but it will be real.

Just because the US is 20 Trillion in the hole, does not mean that the Fed worker has to cough up the 20 trillion. In fact, if the entire retirements of Feds were taken completely away, I don't think it would make a dent in the 20 Trillion.

If we DON'T make our voices heard, we definitely do not stand a chance. And the US will still be 20 Trillion in debt. Your choice.

 

[RazorCat]

Re: Future of TSP Supplememntal

Hey Nnuut,

Both CSRS and the FERS pensions are in the same boat. Neither is funded except by loaning money to a debtor that continuously rolls over their accruing balance!!!

Anyone want to invest in that?

My best guess is that both Social Security and our pensions will take a 25% haircut. Even if we - via our chosen representatives - act now it is probably too late to fund the full promise of both programs. However, if we and America make some hard financial decisions we can reduce the haircut on both - not to mention Medicare - to some extent. As they say in finances 'Time is Money'. We have no time. Soon we will have to make spending decisions no politician wants to make. Will they pay out Social Security or Federal pensions? Will they fully fund Medicaid or Social Security? How much can we take out of DoD active duty, retirement, and medical funding? Those choices were much easier a while back. They are getting much harder now.

For me, if they jack my taxes up I will use pre-tax contributions and other means to drop my taxes to the current level. I have done so in the past and see myself doing it again in the future:smile:

No. Actually they're not.
When Congress established the Federal Employees’ Retirement System in 1986, it required all pension benefits earned under FERS to be fully pre-funded by employer and employee contributions and the interest earned by Treasury bonds held by the Civil Service Retirement and Disability Fund.
In 1969, Congress passed a law that set the employee contribution to CSRS at 7.0% of pay and required an equal amount to be contributed from funds appropriated to federal agencies. But, while more money was coming into the system, it did not cover higher future costs because of pay raises or an average higher pay grade and overall higher pension costs for future retirees over time. Because the cost of annual cost of living increases (COLAs) is not accounted for in the payments to the trust fund mandated by the 1969 law, the CSRS continues to accumulate an unfunded liability.
The result is that CSRS benefits will, in part, be paid from contributions that were made to the CSRDF on behalf of employees enrolled in FERS. This lack of CSRS funding, in turn, creates an unfunded liability for FERS payments.So, the question is, why are they going after COLAs in FERS and not CSRS? FERS is pre-funded, and was fully funded up until a few years back. Why the need to touch it at all beyond tweaking it a bit (higher employee contributions?). Address the unfunded liability in CSRS without taking contributions meant for and by FERS employees to fund another system. The unfunded liability will gradually decline after 2025.
I don't wish any ill will to anyone under either system. You earned it, you should get it. That's the contract you made when you signed on with the government. They should honor that contract. I'm simply saying "if it ain't broke, don't fix it".