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Retirement Planning


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BlueWave  
#1 Posted : Monday, November 9, 2020 6:33:28 AM(UTC)
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Amongst other changes to the current Federal retirement plan, the FY21 Budget proposes changing the current Federal retirement from high-3 to the high-5.

How likely is this to occur?

Would it effect the current workforce, or go into effect for new hires?

What's the likelihood of this change being approved?

GWPDA  
#2 Posted : Monday, November 9, 2020 7:08:07 AM(UTC)
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You may have noticed a change in the government of the United States in the last several days. The 'changes' you describe were all proposed under the old regime. They have not been confirmed and they are not going to be. Neither will there be new 'Schedule F' employees.

BlueWave  
#3 Posted : Tuesday, November 10, 2020 5:35:40 AM(UTC)
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GWPDA,
Thanks for the response. Yes, I'm aware of the upcoming change in gov't that is about to occur; however, the verbiage is embedded in the FY21 WH budget.

Do you believe that the the current CR will continue past DEC 11, or could/will the senate approve the President's Budget by DEC 11, even if Congress disagrees?
FatHappyCat  
#4 Posted : Tuesday, November 10, 2020 6:34:55 AM(UTC)

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Originally Posted by: BlueWave Go to Quoted Post
GWPDA,
Thanks for the response. Yes, I'm aware of the upcoming change in gov't that is about to occur; however, the verbiage is embedded in the FY21 WH budget.

Do you believe that the the current CR will continue past DEC 11, or could/will the senate approve the President's Budget by DEC 11, even if Congress disagrees?


It doesn't matter if it's in the FY21 WH budget, that's just basically a wish-list. It actually has to be in the CR spending plan which Congress writes. The prez just agrees or disagrees, they can't make any changes.

Though it wouldn't surprise me if Trump refused to sign the CR especially if he believes that the election results are not certain.

Edited by user Tuesday, November 10, 2020 6:36:32 AM(UTC)  | Reason: Not specified

GWPDA  
#5 Posted : Tuesday, November 10, 2020 7:18:37 AM(UTC)
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"It doesn't matter if it's in the FY21 WH budget, that's just basically a wish-list. It actually has to be in the CR spending plan which Congress writes. The prez just agrees or disagrees, they can't make any changes.

Though it wouldn't surprise me if Trump refused to sign the CR especially if he believes that the election results are not certain."

Precisely.
BlueWave  
#6 Posted : Wednesday, November 11, 2020 3:28:29 PM(UTC)
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Thanks for the replies, and I understand its' hard to gauge what will, or will not occur although, can you answer this hypothetical question;

If the verbiage stays in the FY21 budget to change FERS retirement to a high-5 versus the current high-3 will the effective date be as of OCT 1, 2020, and will it apply to everyone in the current workforce, or will there be a grandfather clause based on the original terms of the FERS retirement plan that was in-place when you entered federal service?

If not, how is this okay to just change the current federal retirement terms without notice? That wasn't the retirement plan that I agreed to when I signed-up for a career in the federal service, over 27 years ago. This is what is called 'bait and switch'.

NOTE: If you've been in the same locale for 5+ years, and/or haven't had a significant salary change then, there may be a slight impact to your monthly retirement amount; however, if you've been working OCONUS for 2, of the last 5 years then, your monthly calculation can be significantly lower, if changed from the highest consecutive 3 years to high 5. Federal employee's don't receive locality pay when working in OCONUS areas, only base pay. Yeah, that's a big difference especially when your retirement date is 4 months away.

Edited by user Wednesday, November 11, 2020 3:29:32 PM(UTC)  | Reason: Not specified

smithandjones  
#7 Posted : Wednesday, November 11, 2020 6:26:16 PM(UTC)

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I would put the likelihood of a government shutdown at about 73% due to the Chief Whiner being unlikely to agree to anything that helps anyone anymore. The only hope is that he goes ahead and resigns at some point. And yes, there is at least a 27% chance that happens.

As others have said, the high 3 to 5 scenario is not worth worrying about right now.
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