Though Democrats were able to excise a plan to base federal retirees’ annuity payments on their highest five years of salary, rather than the current high-3, proposals to eliminate the FERS supplement and to charge employees for their civil service protections remain on the table.
Del. Eleanor Holmes Norton, D-D.C., has brought back legislation that would create an inspector general for the Federal Retirement Thrift Investment Board, while the Senate Veterans’ Affairs Committee’s ranking member argues the department is too slow in implementing legislation.
The latest draft of the GOP’s plan to cut federal spending to pay for tax cuts and increased immigration enforcement no longer un-grandfathers federal workers hired before 2014 from increased retirement contribution rules passed in the 2010s and delays implementation of the FERS supplement.
A pair of organizations representing federal law enforcement officers urged lawmakers to strengthen carveouts of an array of proposed cuts to federal workers’ retirement benefits but stopped short of calling for their withdrawal.
Sources warn that the Trump administration has overstated both DOGE’s role in developing online retirement applications and its potential impact on the retirement process.
The department is seeking to reverse a 2021 decision by the Biden administration that placed the Office of Survivors Assistance under the Veterans Benefits Administration.
Federal workers who accepted President Trump and Elon Musk’s so-called ‘fork in the road’ fear Republicans have “pulled the rug out from under” their retirement plans.
One Republican who voted against the measure said efforts to reduce existing federal workers’ pension benefits will fail if put to a vote before the full House.
While tax withholding is automatic while working, retirees face the responsibility of ensuring their income is withheld for federal and state taxes. With that in mind, here are some options to be aware of.
Federal workers hired in 2029 would contribute nearly 10% of their basic pay toward a less generous pension if they wish to retain their civil service protections under House lawmakers’ budget reconciliation proposal.
For federal employees weighing whether to leave the TSP, five certified financial planners offer their insights on what to be aware of and what flexibilities lay in the private markets.
A proposed rule from the Federal Retirement Thrift Investment Board could recalculate how federal employees repay accrued interest on loans from the government’s 401(k)-style retirement plan.