Bad timing for feds nearing retirement
With the leaders of the president’s debt reduction panel calling for a three-year freeze on federal civilian pay, and with budget hawks about to take control of the House, chances are probably good that President Obama’s proposed two-year civilian pay freeze will get through Congress and make its way back to his desk.
If that’s the case, then it will be a major bummer for feds a year or two away from retirement, many of whose high three calculations—barring step increases or promotions—could be squeezed by two years of static pay.
Worse yet, the president has just announced his decision to invoke his emergency powers to freeze 2011 locality pay (which also factors into annuity calculations) at 2010 levels.
We’ll wager that a lot of prospective retirees are running the numbers right now.
Will your plans change?
Posted by Phil Piemonte on Dec 01, 2010 at 4:02 PM