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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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To: kabar; sonofagun
...whether to join FERs in 1983

1987 vice 1983. 1983 was when all new hire federal employees had to join SS.

62 posted on 12/31/2011 10:26:36 AM PST by kabar
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To: kabar
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.

FERS is a three tiered system, two of which are SS and TSP.

"In economics, a defined benefit pension plan is a major type of pension plan in which an employer promises a specified monthly benefit on retirement that is predetermined by a formula based on the employee's earnings history, tenure of service and age, rather than depending on investment returns." Source

The fact that TSP, an entirely investment return source, is part of FERS removes FERS from the defined benefit system.

CSRS, of course (and the reason you and I chose CSRS), is a defined benefit system.

BTW, I currently have 40 years of Navy civil service under my belt.

63 posted on 12/31/2011 2:59:39 PM PST by sonofagun (Some think my cynicism grows with age. I like to think of it as wisdom!)
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