Gov Career

By Phil Piemonte

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Ho-hum, more bad news for feds

Well, to add insult to injury (no COLA, pay freeze, higher health insurance premiums, etc.), the new tax bill just approved by the Senate does not include Civil Service Retirement System feds among those who will benefit from a 2 percent reduction in payroll taxes next year.

Private-sector employees and Federal Employee Retirement System feds both will enjoy this “tax holiday” if the bill passes through the House unscathed. Unions continue to press to have CSRS feds included in the measure.

Bet you can’t wait for Congress to adjourn for a few weeks.

Posted by Phil Piemonte on Dec 15, 2010 at 4:02 PM

Reader comments

Tue, Jan 4, 2011

I'm in FERS. Husband in CSRS. I'm putting the max in TSP over 50 (22,500) and my retirement income will never match what my husband receives after 34 years. Contributed much more of my pay over my lifetime then he did towards retirement. Fortunately WEP doesn't apply to FERS receipients.

Fri, Dec 24, 2010

Just to be accurate: A CSRS retiree with 20 years gets 36.25 of his high three.

Also, when comparing CSRS and FERS remember for the same paypole dedution
FERS get their 1%of high 3 per year of service, plus Social Security and the opportunity for 5% of their salary in matching TSP contributions.

CSRS get 2% of high 3 per year of service (minus 3.75)

I like my CSRS OFFSET better, but the differences are not big enough to scream about.

What I don't get is if the fed is creating breaks to stimulate the economy why freeze our pay and not give us equivalent payrole tax break. I know I'm fortunate to have a good job, but this is the first time I've really felt this singeled out.

By the way, the feds don't get COLA in salary. We get comparability adjustments. Except when a national crisis allows the president to reduce the raise. Supposedly the data is there and I'm willing to live with it, but please don't make gross comparisons between government and private sector pay rates. The fed work force is more highly educated and experienced. And believe it or not, most are more conscientious than the private sector work force I experienced in a large shipbuilding company.

One more point, many government employees are regulators working to ensure the fair treatment of private sector workers. When I was in the private sector, I was pleased to know that the fed was "good employer," How can you expect someone to advocate for benefits for others that he can't have himself.

Sat, Dec 18, 2010

RE: 12/16 VA's comment:

FYI. CSRS pays 7% towards their retirement.
FERS pays .8% towards their retirement. You do the math......

Gee 7% - .8% = 6.20% (the same amount you have withheld for OASDI.....

Sat, Dec 18, 2010

To the person who said that CSRS employees have one of the best retirement pkgs around-50% with 20 years of service, you are incorrect. A person who has 20 years of service at retirement would receive 37.25% of the averaged highest 3 consecutive years of pay. Retirement is based on 1.5%/yr for the first 5 yrs, 1.75% for 6-10 years, and 2% for the years thereafter. In addition, when CSRS employees make contibutions toward retirement, the government does not match any portion of those contributions.

Fri, Dec 17, 2010 Jack

The only other time I felt this badly about serving my country was when President Reagan attempted to make a hiring freeze retro-active to November 1980 when he won the election. It didn't happen but still.....I had no idea if my job was safe until June 1981. Heckuva country, eh? The propaganda about federal workers has become harsher over the years building to a serious crescendo this year. And, I believe that virtually all of the political bravado is because of an incredibly stupid, naive president of the United States who has not demonstrated qualifications to lead this once great country. I don't ever recall questioning my loyalties so seriously until this administration.... Being "rewarded" by legalized theft of benefits that I worked for, paid dues for and endured so much BS to get is not acceptable....for any of us. I feel especially sorry for the young feds just starting out and now, for the first time, I am beginning to wonder if I would've been better off going to Canada when my country "needed" me and my draft number was so low. Love it or leave it, indeed! I'm so mad I could spit! Our elected officials should be ashamed of themselves....but there apparently is no shame in Washington D.C. "Ignorant Jackass" has taken on a whole new meaning to me these days, and.....I guess I have inadvertently become one as well. Could this be a taste of how conscientious, educated government employees in new dictatorships feel while being stripped of their dignity and life's work? Awe....never mind. It don't mean nuthin'.

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