Shows & Panels
- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- Ask the CIO
- Connected Government
- Consolidating Mission-critical Systems
- Constituent Servicing
- Continuous Monitoring: Tools and Techniques for Trustworthy Government IT
- The Data Privacy Imperative: Safeguarding Sensitive Data
- Eliminating the Pitfalls: Steps to Virtualization in Government
- Federal Executive Forum
- Federal Tech Talk
- Government Cloud Brokerage: Who, What, When, Where, Why?
- Government Mobility
- Mission-critical Apps in the Cloud
- Mobile Device Management
- The Modern Federal Threat Landscape
- The Path from Legacy Systems
- Understanding the Intersection of Customer Service and Security in the Cloud
Shows & Panels
More feds doing life sentences
Thursday - 10/6/2011, 2:11am EDT
The dominant federal retirement plan — FERS — was designed to provide three streams of post-work income:
- A civil service benefit that is less costly and less
generous than the older CSRS program,
- Social Security and
- Income from the Thrift Savings Plan. To encourage investment the government will make a pre-tax contribution of up to 5 percent.
Since January, the I-fund (international stocks) has lost 15.70 percent. The S-fund (small cap stocks) is down 14.85 percent and the C-fund (invested in the top 500 U.S. corporations) is down 7.03 percent. This may represent a great buying opportunity — if you are in government for the long haul. Or not.
The up-and-down, scary performance of the stock markets over the past few years has derailed retirement schedules of many long-time feds. Yet wars, natural disasters in Japan, economic problems in Greece and Spain (not to mention here), and the Arab spring events have all conspired to make Wall Street — which is easily spooked anyhow — downright crazy. Unemployment won't go down and the markets won't go up.
Feds with law enforcement or intelligence backgrounds and homeland security skills (and that all-important Top Secret clearance) find there are fewer places in the private sector to go when they hit mandatory retirement age.
White-collar civil servants are in the midst of a two-year pay freeze. Retirees haven't had a cost-of-living adjustment for two years. Although they are likely to get a COLA in January (the exact amount won't be announced until the middle of this month), it is too late for people to retire and get in on the 2012 adjustment.
The number of retirement-eligible feds (people with more than enough time in government) may be at an all-time high. Congress keeps threatening to make federal employment less enjoyable and lucrative.
But the bottom line is that the "retirement tsunami" first predicted in 1999 still hasn't hit. And even if agencies open the door by offering $25,000 buyouts, there is no indication that hordes of people will flee the government for retirement or unemployment. Retirements have held steady (in the 60,000 range) year after year, and the quit rate is actually down. That's probably a reflection of the miserable nonfederal job market.
The mood in Congress seems to be "The beatings will continue until morale improves." Yet the rotten state of the economy — for which Congress deserves a lot of credit — seems to be keeping feds on the job even though politicians wish many of them would go away.
For whatever reason, feds seem to be holding on. It may be the stock market impact on their TSP retirement accounts, lack of jobs on the outside or just a wait-and- see thing.
So, are you hanging on and, if so, what are you waiting for? Would a buyout convince you to leave, or are you waiting until your TSP balance goes up? Drop me an e-mail at mcausey@federal newsradio.com
NEARLY USELESS FACTOID
By Jack Moore
It turns out controlling your bladder may also help control other impulses.
A study conducted by Mirjam Tuk, a visiting professor at INSEAD, an international graduate business school, found that unconscious efforts at self-control — as experienced when holding it in — may help control other urges, such as spending money.
Just how manly is Mike Causey? Find out in this week's Mike's Take.
MORE FROM FEDERAL NEWS RADIO
'cronyism,' State's Amin takes temporary leave
Kirit Amin, the chief information officer of the State Department's Bureau of Consular Affairs, said he will take a 120-day reassignment with the State Department CIO, citing frustration with management.
USPS proposal would
oust FEHBP for single health plan
In August, the cash-strapped Postal Service proposed a budget plan that included pulling its employees out of the Federal Employee Health Benefits Program and creating its own health system. But will it save money?
What does a cloud-
based federal workforce look like?
magine a future federal workforce that includes a group of "free agents" ï¿½ feds who are ready at a moment's notice to help across government agencies on special projects. That's the idea behind Deloitte's Fed Cloud workforce model.