Lots of federal workers think they would be better off as federal contractors, to which contractors say no way. Senior Correspondent Mike Causey says they each ...
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:
For all of the above and a lot more listen to yesterday’s Your Turn show by clicking here.
The son of a village blacksmith, Conan the Barbarian was born on a battlefield.
Source: Wikipedia
Copyright © 2024 Federal News Network. All rights reserved. This website is not intended for users located within the European Economic Area.
Mike Causey is senior correspondent for Federal News Network and writes his daily Federal Report column on federal employees’ pay, benefits and retirement.
Follow @mcauseyWFED