Isn’t all of the govt under fers? Which is not a defined benefit plan. I know when I started with Uncle Sugar in the 80’s our retirement was 401k - not defined benefit.
Regardless - I’m all for cutting DC down to 1/20th of what it is now. Chainsaw time baby.
“Isn’t all of the govt under fers? Which is not a defined benefit plan.”
You are right. FERS is a defined contribution plan. I too assumed that pretty much the entire Federal workforce is under FERS. Postal workers and some others may be treated differently.
Only those employees initially hired after 1986 are under FERS. Of course, those hired before 1986 are a rapidly declining number.
FERS is a defined benefit program based upon salary history and time in service. Essentially, a FERS receives around 1% for each year of service. It is usually based upon the average salary for the last three years of service. Actually, the three highest years but that is usually the last three. There is also a 401k available.
. Isn’t all of the govt under fers? Which is not a defined benefit plan.
While FERS has the 401K-like Thrift Saving Plan, it also has a defined benefit pension portion of 1% of your gross salary for every year worked, if I recall. Not as generous as the old CSRS plan, but still defined benefit.