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The author says that the chained CPI which the president recently dropped from his budget proposal would actually have been a good thing because of its potential to help with reducing the national debt. He notes that the actual cost to federal retirees from the chained CPI would have been less than the cost of a pizza each month and illustrates its financial impact for federal pensioners.
As a general rule, your military service in the Armed Forces of the United States is creditable for federal Civil Service Retirement purposes as long as certain conditions are met. There is an exception, however, which the author explains.
The Windfall Elimination Provision (WEP) means if you are getting a Social Security benefit as well as a pension where you did not pay into Social Security, your Social Security benefit is reduced. The author provides examples of the financial impact this can have on your earnings.
When it becomes fully operational, the phased retirement program will allow pre-approved employees to reduce their work schedule to part-time, while simultaneously paying them a partial annuity. Will this be a net gain for employees?
Several readers have asked if they will have a COLA applied to their retirement annuity and to Social Security. Readers have also asked about the Government Pension Offset and Windfall Elimination Provision. This information may be helpful in understanding these complex topics.