[glm]

Ronald Reagan changed the Fed Govt. pension plans. It stopped being an annuity (read taxpayer pays all of it) to one that combined social security with a 401(k)-type program. Just like a big business, the employee pays social security and contributes to financial funds (like Wilshire 500). The Fed Gov matches up to a certain amount.

So to say stop the pensions you are saying stop social security in essence. Is this what you mean? How will that affect you?

[kabar]

Reagan in his deal with Tip O'Neil on the passage of P.L. 98-21, (H.R. 1900) Social Security Amendments of 1983-Signed on April 20, 1983 agreed to make SS mandatory for all federal employees hired after 1983. The act also increased taxes and raised the retirement age for full benefits from 65 to 67.

There is still a civil service pension system, plus SS and the Thrifty Plan [the equivalent of a 401K program. Federal employees have a three-legged stool of pensions.

[Ann Archy]

Are ytou saying that Fed. Govt. ret. empl. gets SS? I don’t think so....they get WAY more than SS.

[meyer]

Ronald Reagan changed the Fed Govt. pension plans. It stopped being an annuity (read taxpayer pays all of it) to one that combined social security with a 401(k)-type program. Just like a big business, the employee pays social security and contributes to financial funds (like Wilshire 500). The Fed Gov matches up to a certain amount.

Did he do that with the entire federal government or just part of it? I know that TVA changed retirement systems under Reagan, but all the older employees on the "old" defined-benefit plan are still on that plan, while newer employees are on the newer "defined-contribution" plan.

Also, that the contribution to the new retirement plan do not come from the employee's pay but is an additional sum based on their pay. They also have social security and a 401K though.

[arrogantsob]

Federal pensions were and are (for those still under the old system) funded through employee contributions which were at a higher rate than SocSec rates, they are not all funded by the taxpayers. These pensions would be frozen by Urkle’s “idea” as well.

[SoftballMominVA]

The Fed Gov matches up to a certain amount.

Close, but not quite. The Fed Gov puts in 1% of the total annual salary no matter how much the employee puts in.

In CRCS, employees do not pay into social security. The payment instead goes to CRCS. Therefore the old school Fed employees will not get social security, they will get CRCS. UNLESS they have qualified for social security under another job. For instance, my husband will retire in 5 years. He has worked for the same agency since 1980, and only worked a couple of years in a gas station as a teen. He will get nothing from social security, because he paid nothing into it.