Just the hint of a long-shot proposal to boost buyouts from $25,000 to $40,000 has many long-time feds, who were resigned to work-till-they-dropped, suddenly reconsidering the joys of retirement.

Word that the Defense Department had asked Congress for permission to sweeten the buyout amount prompted lots of feds to say “show me the money!” And while there is little chance Congress will boost the buyout this year, it caused many to rethink retirement.

The retirement tidal wave — first forecast in the late 1990s — still hasn’t formed, much less hit land. Every day scores of civil servants hit the magic day when they are old enough and have enough service time to retire on an immediate annuity. But they stay on. The weak job market outside of government has kept many civil servants on the job. Ex-feds are highly desirable in the contract world because of their knowledge, contacts, and the fact that they have their own retirement package, health insurance and many have expensive and up-to-date security clearances. But the jobs have to be there.

After a three-year pay freeze (2011, 2012  and 2013) federal workers have received very small raises, 1 percent before locality pay in 2014, 2015 and 2016. But it has been even tougher for retirees, whose cost-of-living adjustments are based on the rise (if any) in inflation. Retirees got no COLA in 2016. In 2015 and 2014, the COLAs were 1.7 percent and 1.5 percent. And they may not get anything in January 2017, when the next COLA is due.

This month’s issue of The Foreign Service Journal has tapped in on the upsurge in interest on the subject of retirement. It covers subjects like should you retire, what pre-planning is required and what’s next? It has a number of examples of State, USIA and AID employees who got out and became police officers or volunteers, or rejoined the government as reemployed annuitants and networked into contractor jobs. Even one who now teaches Okinawan karate! Lots of talent out there, including maybe you.

So how to prep for the next big step, which is when and where you will retire and what happens after that first Monday when you don’t have to get up and go to work? So listen and find out:

At 10 a.m. today on our Your Turn radio show, we’ll talk with Dean J. Haas, a retired Foreign Service officer. He’s a fan of early retirement and he’ll have lots of tips — whether you are FS, CSRS or FERS —about what to do while in the planning stage, then what happens when you launch your second career: Retirement.

Nearly Useless Factoid

By Michael O’Connell

The American Film Institute named Atticus Finch, as portrayed by Gregory Peck in the movie version of To Kill a Mockingbird, as the top hero on AFI’s 100 Years… 100 Heroes and Villains list. Dr. Hannibal Lecter, played by Anthony Hopkins in The Silence of the Lambs, was the top villain.

Source: Wikipedia

Copyright © 2024 Federal News Network. All rights reserved. This website is not intended for users located within the European Economic Area.