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For now, the 35-day government shutdown does not seem to have caused a massive increase in federal retirement, despite predictions to the contrary.
Automatic General Schedule step increases, the lengthy federal hiring process and the retirement supplement for certain employees are among the issues Sen. James Lankford (R-Okla.) has highlighted in his annual waste book.
The average Thrift Savings Plan balance for Federal Employees Retirement System participants — 3.3 million people — was $138,933 in January.
For federal workers the good news is that Congress approved a 1.9 percent raise for them despite the fact that the president wanted to freeze pay in 2019.
As more companies scale-back or more often eliminate retirement plans for their workers, the government’s benefits package looks better and better to many private sector employees. But all comparisons are relative.
Another member of Congress has introduced legislation that would give federal employees the option to take a penalty-free hardship withdrawal from their Thrift Savings Plan during government shutdowns. Meanwhile, the TSP is also still struggling to improve its cybersecurity posture.
But if you don’t appreciate politicians trying to eliminate long-promised features of your Federal Employees Retirement System or Civil Service Retirement System packages fasten your seat belts.
Roughly 39 percent of federal employees said they were "unprepared" or "very unprepared" for the recent government shutdown, according to a survey from Clever Real Estate.
If Uncle Sam kept a list of endangered workers, folks under the old Civil Service Retirement System would be at the top. Less than six of every 100 workers still on the payroll are under the system that was phased out in the mid 1980s.
At least five bills have been reintroduced in the 116th Congress by incumbent lawmakers. And as the fog of last month's partial government shutdown clears, it's possible more bills have or will resurface.
Employer branding is one of the chief battlefields in the fight for talent. The government is not well-positioned for that fight.
Folks under the old Civil Service Retirement System, like people who get Social Security benefits, are protected from inflation. But most people on the federal pay roll are under FERS.
Allan Roth, founder of Wealth Logic and a nationally syndicated financial columnist, said that when it comes to investing, his motto is "Dare to be dull," as in boring.
Nearly 12,000 more federal employees retired in 2018 than the previous year. It may not be a "tsunami," but the federal community has said it could be the start of a retirement wave.