The Civil Service Retirement System that we knew and loved hasn’t existed for a number of years. Now, most of those I know who are still in the Fed workforce say that they won’t be able to retire until they are 66, and the even younger employees won’t be able to retire until 67, since their pension is now linked to Social Security.
It wouldn’t surprise me any if there was a reduction in the amount of matching funds that the government provides to current workers who invest in the Thrift Savings Plan. My son now works for the Feds, so he’ll keep me posted on any changes they make.
Nothing stops federal employees from taking early Social Security retirement if they choose. Of course, staying until full retirement age is generally attractive if you like your job.
In addition to regular Social Security, federal employees have a voluntary thrift savings plan (the TSP), which is a very standard 401(k) type plan, plus a basic pension calculated on the basis of one percent of your high-three times years of service. If you were making $100,000 in your last three years of service, and worked under FERS for 30 years, your basic pension would be $30,000. Plus whatever you put into the TSP. Plus Social Security.