C.E. Technician U.S. Forest Service Wed Sep 12, 2007 8:04 AM
Okay, I thought FERS is a defined contribution plan? Maybe the average amount saved is low because there are still CSRS folks who aren't contributing as much as they could. Perhaps the low average amount saved is because FERS is relatively new and people haven't been putting money in for long enough to raise it above the $48k.
Why Public sector is saving less
Mining Engineer USDA Wed Sep 12, 2007 9:18 AM
In general they get paid less for the similar job requirements. I started working for the Forest Service 4+ years ago and am getting approximately $7,000 less than what I was making in 2001 with the mining industry. At this point I am barely making ends meet here in Nevada.
Retirement Savings
Senior CPD Representative U.S. Dept. of Housing and Urban Development Wed Sep 12, 2007 9:29 AM
Yes, I believe the Federal sector should have mandatory investment options, because I have seen many low grades and some higher grade employees not saving nearly enough for their retirements. They live from pay check to paycheck and do not have the discipline to save. By having the mandatory savings plan they will be able to live more comfortably in retirement, instead of just living off Social Security.
Automatic TSP enrollment
Electronics Tech. FAA Wed Sep 12, 2007 11:58 AM
I believe this is a good idea. Either the "G" or the L2020
fund would be a good choice.
Public Pensions
HR Specialist IRS Wed Sep 12, 2007 2:32 PM
The federal government should treat it employees the same way the private sector does. Feds are overpaid and have too generous benefits.
Re: Public Pensions
Retiree Army Thu Sep 13, 2007 6:41 AM
No. When you factor in Fed education levels and years of professional experience in their field they are perhaps slightly underpaid. Don't fall into the trap of comparing private sector high school grads with PH.D. fed employees.
Default Plan for Automatic TSP Enrollment
Contract Specialist HHS Wed Sep 12, 2007 3:01 PM
Because it would be an "automatic" enrollment - i.e., non-voluntary - the default plan would have to be the super-safe G Fund. If this automatic feature is implemented, I would hope that there would be some basic investment training - investments 101 as it were - provided as well.
Federal Retirement
Budget Analyst DOE Wed Sep 12, 2007 5:06 PM
I find your analysis interesting but for many years, federal employees under FERS were kept to a percentage of pay and not the maximum allowed by law. Why the difference? Lost tax revenue? It was not until the last couple of years that were were able to put away the IRS limit of $15K. Before that, we were held to a percentage which increased each year. So if I made $60K per year, I was held to 10/11/12/13% etc. of my salary each year depending on the year. For lower salary staff, that does not allow them to save much. I would like to have saved more but my own employer did not allow it.
Boomers get saving
Retiree Army Wed Sep 12, 2007 5:30 PM
Federal retirees may be surprised years from now when a cash-strapped country cuts back, slowly but surely, at federal employee benefits and retirees benefits as well. Save for yourself--you can count on no one else. We will move to a retirement based on TSP only (no future annuity) and health savings accounts (no federal health insurance). Get ready.
Re: Boomers get saving
analyst dod Thu Sep 13, 2007 7:53 AM
A TSP only retirement savings plan isn't such a bad thing. Regular contributions (10-15 percent of salary a year) over 30 years (for example a career from age 25 to 55) can give you a retirement income equal to or exceeding your working income.
Federal Retirement
IT Spec DoD Thu Sep 13, 2007 9:32 AM
I came to work for DoD in August 1984 (missing CSRS by 8 months). I was only here a couple of years when I had the good fortunate to be able to attend a retirement seminar (when the person chosen to go was unable to attend). At that time, it was not given by contractors but by government employees who came to the base and had the 3 day seminar. They instilled the importance of contributing the most you could to the TSP. I have done that over the years and have built up a considerable amount (considering) into the TSP. I think that everyone should attend these seminars right away when they come on board for the government, otherwise, you will just put off contributing as much as you can. During the seminars, we were provided with figures showing how much you would get at retirement if you put "x" amount of money into the TSP . This was so essential and I have not missed it over these years even though I, too, took a $350.00 decrease in pay coming to work for DoD.
Re: Federal Retirement
Engineer Interior Wed Oct 10, 2007 9:13 AM
IT Spec gives good advice! The only caveat currently is that when the seminars are given by contractors, attendees should be careful to consider their own positions and be aware that the contractors will be (openly or not-so-openly) pushing their own products.
Public Sector Workers Saving Less
U.S. Forest Service
Wed Sep 12, 2007 8:04 AM
Okay, I thought FERS is a defined contribution plan? Maybe the average amount saved is low because there are still CSRS folks who aren't contributing as much as they could. Perhaps the low average amount saved is because FERS is relatively new and people haven't been putting money in for long enough to raise it above the $48k.
Why Public sector is saving less
USDA
Wed Sep 12, 2007 9:18 AM
In general they get paid less for the similar job requirements. I started working for the Forest Service 4+ years ago and am getting approximately $7,000 less than what I was making in 2001 with the mining industry. At this point I am barely making ends meet here in Nevada.
Retirement Savings
U.S. Dept. of Housing and Urban Development
Wed Sep 12, 2007 9:29 AM
Yes, I believe the Federal sector should have mandatory investment options, because I have seen many low grades and some higher grade employees not saving nearly enough for their retirements. They live from pay check to paycheck and do not have the discipline to save. By having the mandatory savings plan they will be able to live more comfortably in retirement, instead of just living off Social Security.
Automatic TSP enrollment
FAA
Wed Sep 12, 2007 11:58 AM
I believe this is a good idea. Either the "G" or the L2020
fund would be a good choice.
Public Pensions
IRS
Wed Sep 12, 2007 2:32 PM
The federal government should treat it employees the same way the private sector does. Feds are overpaid and have too generous benefits.
Re: Public Pensions
Army
Thu Sep 13, 2007 6:41 AM
Default Plan for Automatic TSP Enrollment
HHS
Wed Sep 12, 2007 3:01 PM
Because it would be an "automatic" enrollment - i.e., non-voluntary - the default plan would have to be the super-safe G Fund. If this automatic feature is implemented, I would hope that there would be some basic investment training - investments 101 as it were - provided as well.
Federal Retirement
DOE
Wed Sep 12, 2007 5:06 PM
I find your analysis interesting but for many years, federal employees under FERS were kept to a percentage of pay and not the maximum allowed by law. Why the difference? Lost tax revenue? It was not until the last couple of years that were were able to put away the IRS limit of $15K. Before that, we were held to a percentage which increased each year. So if I made $60K per year, I was held to 10/11/12/13% etc. of my salary each year depending on the year. For lower salary staff, that does not allow them to save much. I would like to have saved more but my own employer did not allow it.
Boomers get saving
Army
Wed Sep 12, 2007 5:30 PM
Federal retirees may be surprised years from now when a cash-strapped country cuts back, slowly but surely, at federal employee benefits and retirees benefits as well. Save for yourself--you can count on no one else. We will move to a retirement based on TSP only (no future annuity) and health savings accounts (no federal health insurance). Get ready.
Re: Boomers get saving
dod
Thu Sep 13, 2007 7:53 AM
Federal Retirement
DoD
Thu Sep 13, 2007 9:32 AM
I came to work for DoD in August 1984 (missing CSRS by 8 months). I was only here a couple of years when I had the good fortunate to be able to attend a retirement seminar (when the person chosen to go was unable to attend). At that time, it was not given by contractors but by government employees who came to the base and had the 3 day seminar. They instilled the importance of contributing the most you could to the TSP. I have done that over the years and have built up a considerable amount (considering) into the TSP. I think that everyone should attend these seminars right away when they come on board for the government, otherwise, you will just put off contributing as much as you can. During the seminars, we were provided with figures showing how much you would get at retirement if you put "x" amount of money into the TSP . This was so essential and I have not missed it over these years even though I, too, took a $350.00 decrease in pay coming to work for DoD.
Re: Federal Retirement
Interior
Wed Oct 10, 2007 9:13 AM
IT Spec gives good advice! The only caveat currently is that when the seminars are given by contractors, attendees should be careful to consider their own positions and be aware that the contractors will be (openly or not-so-openly) pushing their own products.