The Federal Employees Retirement System (FERS) requires some-to-considerable thought and work from those who want to maximize their total retirement benefits.
A cost of living adjustment this size carries a double message. First, that inflation is back, and second, that not everybody will get the full increase. Some will even get nothing, meaning even more belt-tightening!
For the vast majority of feds still on the payroll, plus a growing number of those already retired under the newer Federal Employees Retirement System (FERS), big COLAs mean fiscal heartburn.
Currently, most feds in retirement left under the CSRS program so they get full COLAs. But the overwhelming majority of people working for Uncle Sam now are under the FERS program.
Time, especially for federal workers under the Federal Employees Retirement System (FERS), can be on your side. If you plan wisely and begin early.
Do you suffer from pension envy? Many current and retired federal employees do!
With inflation on the rise, a growing number of feds are crunching the numbers to weigh the financial benefits of working another year or two.
By avoiding some common mistakes, you can prepare yourself for a much easier retirement.
The 22% increase in federal retirements from June to July has led to a growing claims backlog.
Once again, there are dueling agendas to eliminate or offset the Windfall Elimination Provision, a pesky nuance that reduces Social Security benefits for some federal retirees.
A higher January COLA could mean the nation is in for an extended period of higher inflation.
The decision to collect your Social Security now or later can be a tough one. There are a number of tradeoffs.
Retirement with debt is a bad idea, especially if you are under the FERS program with its diet-COLA formula.
January 2022's cost of living adjustment for federal retirees will depend on not only their plan, but also inflation.