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, 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.

Mon, Mar 25, 2019

If you get rid of inept management bloat there would be amazing savings to the tax payers and career civil servants would not be insulted, demoralized and hampered to carry out their responsibilities in serving the public.

Fri, Mar 22, 2019 HR Retired Fed

To the confused Fed: If you served 20 yrs ago on a TERM Appt, Regs state you cannot be covered by CSRS; however, if you come back into Fed Service, you can pay a deposit to the CSRS and gain credit for it in retirement!

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Edward A. Zurndorfer Certified Financial Planner
Mike Causey Columnist
Tom Fox VP for Leadership and Innovation, Partnership for Public Service
Mathew B. Tully Legal Analyst

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