Since coming to office in January, the Trump administration has set its sights on reducing the size of government. This desire has manifested itself in several ways, including an executive order signed in March mandating that agencies develop plans to reduce their budgetary footprint and a proposed budget that slashes $54 billion in discretionary spending to make way for increased defense spending and immigration enforcement.
At the request of the TSP, Senators Portman and Carper have introduced Senate bill S. 873 that would help eliminate some of the statutory restrictions of Thrift Savings Plan (TSP) withdrawal options. This week’s column discusses what these restrictions are and how S.873 would help ease these restrictions. Also presented are some of the advantages and disadvantages of these restrictions.
This week, FEND’s Nathan Abse speaks with Adam Stanton Chodorow, a law professor specializing in taxation policy at Arizona State University. Chodorow is opposed to outsourcing tax debt—and has written on the checkered history of past efforts.
Question: I was a civilian federal employee from Sep. 4, 2012 to Nov. 1, 2015. I bought back three years of military time during the above time period. I re-entered civilian federal service Jan. 9, 2017. In looking at my LES, I noticed I was paying $107 in retirement as opposed to the $17 I paid in my previous stint. HR is telling me that I am enrolled in FERS-FRAE and am not eligible for my old retirement program. Over 20 years, this is a $40,000 to $60,000 issue. Do I have any options here?"
The Partnership for Public Service, a nonprofit focused on improving management and best practices in government, issued a report card of sorts for the Trump White House on just how well leadership is doing on improving efficiency in government.
When looking at an early retirement, it is important to understand the big picture, specifically how your benefits are impacted by different retirement options. In Part two of this series, in addition to the impact on the annuity payments themselves, we will now dig deeper into the impact early separation has on other aspects of your benefits.
Thrift Savings Plan Share Prices as of April 26, 2017.