New 2020 budget calls for eliminating pensions for some new feds

A senior administration official has confirmed that the Trump administration's fiscal year 2020 budget request would establish a new retirement program for some federal workers that would bring federal benefits more aligned with the private sector, which often does not offer pensions, Government Executive reports.

Under current system, term employees are all enrolled in the Federal Employees Retirement System, which consists of a defined benefit annuity, the TSP, and Social Security, and under the proposal, all new term appointments would receive access to the TSP and a higher employer contribution, but they would not be able to benefit from the defined benefit portion of FERS, according the to the report.

The report notes that a National Active and Retired Federal Employees Association official said that while it seems to be a good idea, she is concerned about what it means for employees who use term appointments as a spring board into a career in civil service, adding that under the current system, anyone who renews their term employment could gain access to the FERS annuity after five years of federal service, but that would no longer be possible under the proposed change, and term employees who eventually join the competitive service get no credit toward retirement for the time they spent under contract.

Reader comments

Sun, Feb 2, 2020 FED-Up Yet?

I don't know where to start I see so much misinformation in these comments. Not intentional, I don't think. First, and maybe my only comment, some of you should spend some time researching the history of Employee Benefits in the US. Essentially this concept initially formed to address recruitment and retention. 2nd and last, I took my current job 10 years ago because I saw my former industry change in ways I didn't like. Now, my virtual SOLE reason for staying a Fed is the pension, such that it is. Kill the pension, I think you cripple the workforce.

Thu, Aug 29, 2019 WAKE UP Civil Servant Washington, DC

US Congress & Senate must be in the same retirement plan as Civil Service workers. In fact I argued they should have the same medical insurance plan/opportunities. God knows it will be nice to vote and approved my pay raise, over $24K last time. Down to Brass tax... Eliminate all political appointees. In most cases their lack of knowledge in the appointed areas, lead to bad decision costing agencies thousands of dollars. Their fast turnover eliminate continuity and exacerbate the situation rather than improve it. Is unfortunate the current administration lack of experience is damaging the current Federal Workforce imposing rules and regulations used on industry. They already eliminate retirement pensions out of the Department of Defense. They are entitle to TSP only. They want to do the same with the rest of the Federal Force. I say, NO. There is fat to be trim from multiple other unnecessary programs, rules and golf trips. Is time for a change and revamp of the Government branches. Executive with over 5M employees, MOST political appointees, and Legislative. Let's place ALL... ALL Senators and Congress man/woman under identical retirement the Federal workers enjoyed. Then and only then we can fix the mess.

Sun, Apr 7, 2019

Better start with the Congress and the Senate, but we know that won't happen.

Tue, Apr 2, 2019 Big Dave

Called it a few years ago; we had CERS replaced by FERS, now the new system will be called YERS, as in "you're on your own"

Tue, Mar 26, 2019

Eliminate 85% of ineffectual management bloat; SES appointees; title 42 employees and other political appointed minions, the American tax payer would see savings in their hard earned paychecks. Rank and file federal employees would be able to become more creative and this would benefit everybody.

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