Posted on 07/21/2017 7:52:09 AM PDT by freedumb2003
House Republicans greeted current and future federal employees with two controversial body blows in recent days — one amounts to a pay cut and the other would allow new feds to be fired for “no cause at all.”
The House Budget Committee approved a spending plan that would save the government $163.5 billion over 10 years by taking that amount from federal employees.
(snip)
Republicans call their plan “Building a Better America.” But the Americans now working to build a better country through their federal jobs would be called on to sacrifice again, as they have repeatedly over the years.
(snip)
This represents no understanding that civil service protections are designed to protect not just staffers, but also the public from a government bureaucracy riven with political favoritism, as was the case under the spoils system. Even members of Congress eager to fire feds faster must know that this drastic proposal runs afoul of a basic and long-standing principle that says government staffers should be protected from willy-nilly punishment by political operatives.
(snip)
“Congress and the administration cannot balance the federal budget on the backs of our federal workers,” said one of the letter signers, Rep. Barbara Comstock (R-Va.), after the House plan was released Tuesday. “Many of our federal employees work at the CIA, Pentagon, FBI, law enforcement, homeland security and intelligence agencies. They and our federal workforce are dedicated hard-working professionals who work day and night to protect our homeland and national security, cure diseases, and provide services that help the American people.”
(snip)
“This is a plan that the entire House Republican Conference can support,” Black said after her committee advanced the legislation. “I look forward to passage on the House floor.”
Feds look forward with dread.
(Excerpt) Read more at washingtonpost.com ...
>> Including congressmen and senators and their staffs.<<
Staffs yes.
All congresspeople — in fact all elected positions — are by definition at-will.
No, they have a defined two or six year contract. They can't be fired outside of that.
But realistically I was talking about the hits to pension plans. If that's only civil service employees then that means once again Congress passes laws that don't apply to them.
>>Hate to say this, but if you are dependent on social security you are a Government mind numbed robot. <<
Social Security is a big zero in my retirement plan (which I will pull the trigger on in a few years). I have it set to start taking SS benefits at age 70, maximum benefit level. If is is there, great. If not, it won’t change my lifestyle a whit.
But remember, SS (not SSI) was something people payed into and are supposed to get back. It isn’t welfare so people who plan on it are NOT “mind-numbed robots” anymore than people who paid into a bank-based retirement account.
Since 1985, all Federal employees are under Social Security, not the Civil Service Retirement System (CSRS). Only those who —before 1985—made the choice to stay under CSRS receive that form of retirement.
But, what you NEVER hear about, is that they have access to TSP—the Thrift Savings Plan—which allows them to put a designsted portion of their pay into a variety of investment opportunities, including high risk stocks.
No doubt Congress critters who have TSP have made fortunes under it since they get insider info re many investment opportunities, including “high-risk” stocks.
““Congress and the administration cannot balance the federal budget on the backs of our federal workers,””
Just give all federal workers a 5% increase, tell them they are now responsible for their own health insurance, which means they now have to buy Obamacare. Include in this combining departments and having 10% reduction in workforce.
That should take care of it.
>>No, they have a defined two or six year contract. They can’t be fired outside of that.
<<
I am pretty sure there are unseating/impeachment provisions for all federal positions except, I think, SCOTUS.
I know California has the recall for all elected positions (thanks, Hiram Johnson), but as for the rest, the “at will” part is the election.
Having worked for the US GVT for over 40 years my advice is to take what can get now, do not wait. If the GVT recommends you wait it is for their benefit, not yours.
But great luck to you, hope it works.
The Thrift Savings plan or TSP option called the C Fund allows an individual to invest in the stock market in an S&P 500 index fund managed buy Blackrock Inc. An individual TSP participant cannot select individual quote hi risk unquote stocks. Period.
There are private S&P 500 index funds that do both better and worse than the Federal Employee Retirement System Thrift Savings Plan C fund which is nothing more than the S&P 500 index fund.
You cannot use the TSP plan as a vehicle to commit insider trading to benefit oneself.
Unfortunately, it is my understanding that members of the house and senate are immune from the insider trading laws through private brokers and from their annual financial disclosure statements it would be safe to assume they appear to take full advantage of that fact.
Regular civil service employees are not immune from insider trading laws. I think Martha Stewart could fill you in on that.
>>Having worked for the US GVT for over 40 years my advice is to take what can get now, do not wait. If the GVT recommends you wait it is for their benefit, not yours.
But great luck to you, hope it works.<<
That is an interesting perspective. Since I am not depending on it (I could retire today so it isn’t really needed) it might make sense.
I already have started taking my California pension (not much but it covers my Medical Insurance as I am self-employed) based on a similar analysis.
I will think about it and rerun the calculations with some different start date parameters.
What to note.
If you die tomorrow, what will the GVT pay? Note that the US GVT is under no obligation to pay your heirs anything. And other than your wife, your heirs most likely have no claim on what you paid to SS.
In my case I have a 4 year old daughter, she has a claim.
So if I die tomorrow she gets 14 years of benefits, I am OK with that as she does not need it.
It’s the people who want to outlaw Silver Spoons who frighten the Hell out me.
This bill has got a long way to go before it becomes law in its present form. I suspect this will be greatly watered down, if it passes the Senate at all.
We can cut the military down greatly also. Our armed forces serve to subsidize the welfare states of our allies all over the globe. The nation will not long accept defending nations who have more robust social safety nets than we have.
It is interesting that an argument against easing termination requirements is that the bureaucrats need to be free from political interference. The whole reason most Americans are opposed to bureaucratic “tenure” is that the bureaucracy has shown how political it is in its opposition to Trump and the Republicans. The bureaucracy is rife with liberal activists who are using their unconstitutional administrative powers as combined legislators, judges and enforcers to impose their zeitgeist on the nation.
I worked a job for 17 years as an at will employee meaning I could be terminated any time without cause.
I’m retired CIA. My wages, given the hours I worked, sucked. I could have earned at least triple outside. Retirement is PERS - which is just a pretty standard 401k. So not any different than ‘average’. Given my wage disparity - much worse than average for me.
A few Agency employees qualify for a special retirement benefit which amounts to around a whopping $1500 a month and only lasts 15 years or so. Not much and we bloody earn it.
I don’t think pay or benefits are really out of line - especially for case officers, FBI special agents etc. who work stupid amounts of hours mostly for free.
But ‘tenure’ has got to do.
PERS is a pension, NOT a 401K.
From the site https://www.opm.gov/retirement-services/fers-information/computation/:
Your basic annuity is computed based on your length of service and “high-3” average salary. To determine your length of service for computation, add all your periods of creditable service, then eliminate any fractional part of a month from the total.
Your “high-3” average pay is the highest average basic pay you earned during any 3 consecutive years of service. These three years are usually your final three years of service, but can be an earlier period, if your basic pay was higher during that period. Your basic pay is the basic salary you earn for your position. It includes increases to your salary for which retirement deductions are withheld, such as shift rates. It does not include payments for overtime, bonuses, etc. (If your total service was less than 3 years, your average salary was figured by averaging your basic pay during all of your periods of creditable Federal service).
| Age | Formula |
|---|---|
| Under Age 62 at Separation for Retirement, OR Age 62 or Older With Less Than 20 Years of Service |
1 percent of your high-3 average salary for each year of service |
| Age 62 or Older at Separation With 20 or More Years of Service | 1.1 percent of your high-3 average salary for each year of service |
Is your retirement compensation different?
FERS is a retirement plan consisting of three parts.
Part 1.
Is an annuity (pension if you will) based upon average highest three annual salaries as you mentioned but its capped at a maximum of 33 percent of your high 3 average salary. If you work 50 years you are not going to get 50 percent of you average high 3 salaries. You get a maximum of 33 percent.
Part 2.
Is Social Security, which is deducted from your pay check throughout your years of service like any other Social Security participant in the private sector.
Part 3.
Is a 401k plan with multiple investment options from US Treasury Bonds to an S&P 500 Index fund. Employee contributions to the 401k in effect will be matched up to 50 cent on the dollar for up to 10 percent of your pre-tax income. The rules of standard 401k’s apply to this component of ones retirement after one retires.
If you fully participate, 16.5 percent of your paycheck is applied to your Soc. Sec. and annuity before your W-2 form withholdings for taxes are pulled.
I had years wear 40 plus percent of my Gross pay was with held for taxes and Soc. Sec and retirement.
I further annually saved 10 percent of my salary and invested it because I don’t believe Social Security will be solvent and available at some point in my retirement. I doubt I’ll receive a penny of Soc. Sec. benefits when I’m eligible because it will be insolvent and planned as best as possible accordingly.
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