Jul 14, 2017

Federal Retirees Nervous About COLA Plan

"...Lots of federal workers, both active and retired, are really sweating the Trump administration’s plan to eliminate cost-of-living adjustments for current and future retirees under the FERS retirement plan. And they are worried for good reason.

Dropping COLAs in the future would save the government lots of money. And it would quickly eat into future benefits for all FERS retirees. Big time.

Financial planner Arthur Stein says that while all federal retirees will have lifetime income in the future, the zero COLA plan would dramatically eat into the money they have to spend in retirement. ..."

Read more at Federal News Radio

May 24, 2017

Trump Budget Trims Payouts for Federal Retirees

"...President Donald Trump’s “taxpayer focused” budget for fiscal 2018 includes smaller cost-of-living adjustments for veterans benefits payouts and eliminating those adjustments for some federal civilian retirees altogether.

The controversial suggestions are likely to be met with opposition from outside advocates and some lawmakers, but White House officials insist the moves are part of a broader strategy to balance the budget without sacrificing essential government services..

Trump’s plan calls for eliminating annual cost-of-living increases Federal Employee Retirement System enrollees completely, and lowering the adjustments for Civil Service Retirement System enrollees by 0.5 percent..."

Read more at militarytimes.com

Apr 20, 2017

Using Military Service to Increase Your FERS Pension

"...There’s a provision in FERS that allows you to make a deposit, or “buy back”, your active duty military service—and that time will count as creditable service for FERS retirement. Creditable service is important because it’s used to figure out when you can retire with a FERS pension AND how much your monthly pension will be!

Military service with a deposit counts as though you worked under FERS during that time—years, months and days are added to your creditable service. This can really add up to a tidy sum in retirement!..."

Read more at fedsmith.com

What Happens to Pay and Benefits During a Government Shutdown

"...When lawmakers return to Washington next week, they will have only a few days to approve a spending measure in order to avert a government shutdown beginning April 29...

Here’s what federal workers can expect in the realm of pay and benefits if the government closes, based on guidance from the Office of Personnel Management from the last shutdown in October 2013..."

Read more at govexec.com

Apr 10, 2017

Tax Tips

"...If you have recently retired, you may be learning that their are some benefits to leaving the workforce when it comes to income taxes.

For those of you in the planning stages, it might be a good time to think through the tax implications of preparing for your separation from federal service...."

Read more at Government Executive

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