10:32 am, May 26, 2015

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  • Not sure they will get the bang for their buck they expect
    A high five system isn't going to get them much savings. Most of the people I have seen retiring lately have been under a pay freeze for 3 going on 4 years now. They have been capped out within their grade for much more than 5 years now. A high five calculation wouldn't affect them by more than pennies and so wouldn't gain Congress by more than pennies. Besides, the last of the CSRS employees are retiring these days and will likely be exempted in any case. FERS workers don't care so much because that part of their retirement makes up only a small part of the retirement for anyone participating in TSP. I personally would be fine if they allowed me to put my retirement entirely into TSP and live with the results. I would likely end up much better off than relying on Congress to control part of my retirement. The rest of the proposals just seem like cuts to federal pay by another name. In the end, there are two different types of federal employees, lifers and pre-contractors. Lifers often stay well after their retirement benefits have been maxed out. The pre-contractors are gaining an understanding of government operations to make themselves more valuable to contractors and don't much care about the retirement plans. They never intend to retire in government service. Congress is proposing many penny pinching ideas that will end up costing much more than they ever save in the long run.
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