Feds vs. contractor pay, pensions, perks: Who’s really got it made?

Many federal workers believe they would be better off in the private sector. Especially if they became federal contractors.

Many private sector workers say try it!

Both sides have “data” that when carefully selected and analyzed proves they are correct.  One may make more money. The other has a much better benefit package.  One may have job security, the other more mobility and promotion potential.  The grass is always greener …

When it comes to planning for retirement, federal and postal workers do have some obvious advantages. Like sick and annual leave.  Feds get it and can accumulate some or all of it. And get paid for unused annual leave and get service credit for unused sick leave.  Many private sector workers don’t get sick or annual leave, period.  And for many who do it is minimal and is a use-it-or-lose-it deal.

Defined benefit retirement plans, like CSRS and FERS, are rare and getting even more so in the private sector.  Employers expect workers (thorough 401k plans and Social Security) to finance their own retirement.  And few remaining  company 401(k) plans are a generous as the TSP with its 5 percent government total match option. Then there are the FEHBP health plan options where the employer pays the bulk of the premiums.

The fed benefits package make retirement planning all the more important for government workers.

On yesterday’s Your Turn show, benefits expert Tammy Flanagan covered both the pre-retirement waterfront and things people should be doing once they are retired. Example:

• Life insurance: She said, “You probably don’t need what you once did.” With the upcoming open season you may want to reevaluate your coverage, or go outside the federal program.

• Health Plans:  Don’t get locked into one health plan.  Flanagan says there are lots of choices and some of the less-costly plans may actually give you better coverage.

• Medicare Part B:  It’s expensive but you can benefit by taking it.  Are you one of them?

• Self Plus One Option: Next year the federal health program will offer a self-plus one option in addition to the self-only and family plan. Will this help you?

• Long Term Care Insurance:  If you like your independence, and like your kids, consider it.  Flanagan said there are good deals in and outside of government. She said having LTC coverage is like a permanent Christmas present for your children and others who take care of you when you can’t help yourself.

• Found Money: What is it, where is it, and what do you do with it?

• Best Dates To Retire:  Dec. 31 and Jan. 3 are often the best dates.  But how come? And did you know there are others?

For all of the above and a lot more listen to yesterday’s Your Turn show by clicking here.

Nearly Useless Factoid:

By Michael O’Connell

The son of a village blacksmith, Conan the Barbarian was born on a battlefield.

Source: Wikipedia

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