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do you vote for or against private industry pensions or school teacher's pensions? Do I think government pensions are too generous? Yes, but do I think I should decide what they should be? No.
Not trying to be argumentative or sarcastic--but can you tell what about them you think is too generous? I'm merely referring to federal government pensions versus state or local pensions as they are all over the map.
For a federal employee:
1. FERS pension: Employee kicks in 4.1% of the their salary towards the pension, the government pays a matching amount. This pension gives you 1% of your high-3 years salary times the number of years you worked. For simplicity, if you top out at $100,000 a year, and work for 25 years, your pension will be $25,000 per year.
2. Thrift Savings Plan (AKA, 401K). Funded by employee with a government match. The first 3% is match dollar-for-dollar and the next 2% is matched 50 cents on the dollar.
3. You can continue to purchase your healthcare after retirement.
Now, I think that's a fairly standard pension as pensions go. My husband has a pension from his private sector company that is far more generous than this. His pension will be approximately $55,000 per year. He also gets a fully funded annuity (401K-type thing) that he does not contribute to at all that is now sitting at about $500,000. He gets a gap health insurance policy for free.
why do so many people whine and complain about federal government workers?! If you want to work for the federal government and enjoy the benefits of a government job....go to college, get a degree, and apply.
Nothing funnier to me than people complaining about federal workers always being lazy, milking their "privileges," getting paid retroactively during furloughs, etc, etc.
Get a fed job if you think they've "got is so good."
Why do you think people work for the government? Because it offers a stable middle class life with a challenging career. You are free to apply for govt jobs. Uncle Sam underpays people, especially at the professional level. But people choose to still work because of delayed gratification, especially when it comes to retirement.
A huge number of jobs in the government are PhD and MD level scientists, engineers and physicians. Don't really want to hire idiots running and protecting the country or do you want the government to have a snowball's chance in hell vs private industry at hiring and retaining the best and brightest minds this country produces?
My neighbor protects pregnant women and children every single day from companies who want to test new ideas and treatments on them with faulty or manipulated science. She is on the SES scale and makes $182,000 and will probably have a sizable pension. I still think she's underpaid for how important her work is at protecting millions of people everyday. She could easily go to industry and make $200-300k doing consulting work or running a company's regulatory department, but she doesn't because some people have a higher calling than just making as much money as possible and like what they do. She also sticks around and takes lower salary for the pension. I sure as hell want someone with 30 years experience with vast pools of knowledge very few people on the planet have making decision about whether or not a company is allowed to test on children and pregnant women.
Federal workers also pay a ton of money into the system. It isn't free.
True, the government underpays at the very top. But for the average HS graduate working a lower- to lower-mid- range job, there are significantly overpaid (compared to private). At the mid, they are overpaid slightly. Only when you move into the GS 15 and SES are they underpaid.
why do so many people whine and complain about federal government workers?! If you want to work for the federal government and enjoy the benefits of a government job....go to college, get a degree, and apply.
Nothing funnier to me than people complaining about federal workers always being lazy, milking their "privileges," getting paid retroactively during furloughs, etc, etc.
Get a fed job if you think they've "got is so good."
Very few people quit the government (since they can't get a better offer elsewhere) and even fewer are fired for incompetence. Openings are scarce, and often they are already slated to an insider. Don't act like it's so easy to get a government job - EVERYONE knows they're a better deal.
Not trying to be argumentative or sarcastic--but can you tell what about them you think is too generous? I'm merely referring to federal government pensions versus state or local pensions as they are all over the map.
For a federal employee:
1. FERS pension: Employee kicks in 4.1% of the their salary towards the pension, the government pays a matching amount. This pension gives you 1% of your high-3 years salary times the number of years you worked. For simplicity, if you top out at $100,000 a year, and work for 25 years, your pension will be $25,000 per year.
2. Thrift Savings Plan (AKA, 401K). Funded by employee with a government match. The first 3% is match dollar-for-dollar and the next 2% is matched 50 cents on the dollar.
3. You can continue to purchase your healthcare after retirement.
Now, I think that's a fairly standard pension as pensions go. My husband has a pension from his private sector company that is far more generous than this. His pension will be approximately $55,000 per year. He also gets a fully funded annuity (401K-type thing) that he does not contribute to at all that is now sitting at about $500,000. He gets a gap health insurance policy for free.
True on all points. My OPM pension amount is no great shakes; it's less than one of the TIAA-CREFF pension amounts I receive from my late husband. However, I knew that the primary reason I wanted a final career with the Federal government (I worked for several Fortune 500 companies before becoming a Fed) was that I wanted to have the option of continuing Federal health care after retirement. Combined with Medicare, it has meant zero bills through and since my recent heart issues.
I was working for one of the rare companies that had one, but they abolished it. I could see where they could have abolished it for new incoming employees, but they abolished it for everyone more than 10 years away from retirement.
Personally, I think they should keep the government pensions for current workers, but cap the payout at $80,000 max. That's more than adequate. New employees should be responsible for funding their own retirement plan, with a match from the government.
I vote in EVERY election, and study the sample ballots and research the candidates & issues.
I don't EVER recall voting for, or against, any government pensions. So, how to they exist? They must be created and awarded by government workers for government workers.
If so, where are the checks and balances?
I keep reading where government pension funds are all underfunded, and heading for a train wreck, but I keep scratching my head wondering how they got there in the first place, & how can that be fair to taxpayers.
Please enlighten me.
No retirement benefits for politicians. Term limits now. 12 years max then out.
I vote in EVERY election, and study the sample ballots and research the candidates & issues.
I don't EVER recall voting for, or against, any government pensions. So, how to they exist? They must be created and awarded by government workers for government workers.
If so, where are the checks and balances?
I keep reading where government pension funds are all underfunded, and heading for a train wreck, but I keep scratching my head wondering how they got there in the first place, & how can that be fair to taxpayers.
In most cases, pensions are a product of collective bargaining and unions have political clout especially at the state and local level.
Fairness depends upon comparable compensation/benefits/ market value of skills in the private sector.
In many cases, the employee pays into the pension so it's really an annuity. Also, some public sectors have opted out of social security and in lieu of social security taxes pay into the pension plan. So, the public sector emplyee receives a pension in lieu of social security.
WIthout getting into a lot of detail, I believe a major problem stems from pension plans with formulas that are very rich and poor investment performance of the pension plan managers (some of whom are cronies of politicians).
Finally, there is the problem of the "golden handcuffs", employees staying in government jobs only to maximize their pension.
I worked for 30 years with the Federal Government. I made, at the end, as a Senor Attorney, $115,000.00 per year.
My pension is $2,2100 per month.
Let me know your thoughts. Am I evil?
I did a little better than that with 35 years in a steel mill. Good for you! When I see that someone has a better situation than mine, my first instincts are to raise myself up, not lower that person down.
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