News for Federal Retirees

May 28, 2012

Cyberattack on TSP May Have Exposed Personal Data of 100K Feds

"...The personal information of over 100,000 federal employees -- possibly including members of Congress -- may have been exposed after a cyberattack last July on the Thrift Savings Plan (TSP), Fox News confirmed Friday.

The retirement savings plan is available to almost all current and retired employees in every branch of the government, including civilian and military personnel of the Department of Defense. Its assets total $313 billion.

The cyberattack occurred against a TSP contractor, Serco Inc. The FBI notified both Serco and the TSP last month about the attack..."

May 25, 2012

USPS Offering $15,000 Buyouts to Handlers

"...It’s official: The U.S. Postal Service is dangling more employee buyouts.

The buyouts, available to most mail handlers, will amount to $15,000 total, payable in separate $7,500 installments this December and December 2013, according to a Thursday bulletin on a Postal Service web site. With a few exceptions, all career employees covered by the Postal Service’s national agreement with the National Postal Mail Handlers Union are eligible, the bulletin says. Full-time employees wanting to sign up must do so by July 2, and agree to leave or retire by Aug. 31..."

CBO: Phased Retirement for Feds Would Save Money

"...Allowing federal employees to phase into retirement by working part-time while collecting a partial annuity would reduce the government’s costs and increase its income, according to an analysis that could boost the plan’s prospects.

The Congressional Budget Office estimated that the plan would reduce spending by $427 million over 10 years because the government would be paying less than the full annuities that the employees have accumulated. Meanwhile, because phased retirees would continue to pay into the federal retirement fund from their salaries, revenues would rise by $24 million over that time, CBO said.

Under the proposal, an agency could offer phased retirement to employees once they hit retirement eligibility..."

May 24, 2012

TSP Funds Down Due to Europe's Economic Troubles

"...Six of the eight Thrift Savings Plan funds are down over the last month as global economic problems reverberate into the government's retirement accounts.

The I fund is likely to take the biggest hit in May as it's already down by $1.63 over the last month.

"You read the papers now and given the things going in Spain, Greece and the overall eurozone, that is obviously creating quite a churn in the market," said Kim Weaver, the director of External Affairs for the Federal Retirement Thrift Investment Board (FRTIB), in an interview with Federal News Radio.

Along with the I fund, three other investment accounts are down by more than a dollar since May 1: the S fund is down $1.60; the L2040 fund is down by $1.04; and the C fund is down $1.09..."

May 21, 2012

Auto Escalation of TSP Proposed in Senate

"...Newly hired federal employees participating in the $313 billion Thrift Savings Plan, Washington, would have automatic escalation of their contributions under legislation introduced in the Senate.

Since 2009, federal employees have been automatically enrolled in TSP at a default employee contribution rate of 3% of salary. The employer contribution for the $412 billion Federal Employees Retirement System is capped at 5%...

The proposal, introduced Monday by Sen. Daniel Akaka, D-Hawaii, would authorize the Federal Retirement Thrift Investment Board overseeing TSP to add auto escalation of 1% per year for at least two consecutive years, to reach a savings goal of 5%. Employees could opt out of either feature..."

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