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To: kabar
FERS is a defined benefit system. It replaced CSRS.

I suppose that depends on how one defines a "defined benefit system".

CSRS is a classic defined benefit system in that the employee pays a percentage of his salary into the plan and can determine what his pension will be based basically on years of service.

FERS relies heavily on a Thrift Savings Account, similiar to 401K, with employer matching some of the employee contributions.

FERS also relies heavily on Social Security, much like the private sector, as part of its plan.

59 posted on 12/31/2011 9:25:15 AM PST by sonofagun (Some think my cynicism grows with age. I like to think of it as wisdom!)
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To: sonofagun
FERS is separate from TSP and SS. It is a defined benefit pension system period.

Compared to CSRS, there were changes in FER related to pension computation and COLAs, but it is still a defined benefit pension system.

As a retired USG employee with 36 years service, I had to decide whether to join FERs in 1983 or stay in the old system. I chose the latter for a number of different reasons.

61 posted on 12/31/2011 10:22:02 AM PST by kabar
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