Originally Posted by: Raoul 
The whole comparison will become moot...In 25 years someone will ask what is CSRS?
Furthermore, I predict FERS will be eliminated sooner than we think.
Replaced with a greater TSP match. No more defined benefit.
Future employees will rely solely on TSP and SS.
New FERS employees (those hired after 2013) already receive less value than "oldtimers" like me.
They pay 4.4% into the federal retirement system instead of the .8% that I pay.
An increase of 550%.
FERS (classic FERS anyway) is closed to new members. It's now called FERS-FRAE and FERS-RAE.
I can't complain. For literally less than 1% of my salary, I receive a FERS annuity, FERS supplement, TSP automatic (matching available).
All for less than $500 a year.
Full disclosure: I'm very defensive when it comes to my FERS retirement :)
When I was hired, it was "common knowledge" that CSRS was far superior. Everyone knew it. The "oldtimers" had it better off.
Most gloated, some had pity.
But the more I looked into it, I was better off with FERS under virtually every scenario.
There was a shocking lack of understanding. To be fair, it was pre-Internet. I "discovered" the supplement and many other hidden gems that added value to FERS.
Few in my office knew much about FERS. Only that it was worse than CSRS. Why would the government offer us something better? There must be a catch.
Most were skeptical. Most still are.
To this day, many employees are clueless about the supplement. They've never heard of it. When you explain it, they don't believe it.
Many also don't believe they can access their TSP at age 55 (without penalty). They insist it's 59.5. I have this argument/discussion with someone every year.
Edited by user Tuesday, July 21, 2020 10:46:18 PM(UTC)
| Reason: Not specified