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View Diary: Obama budget raises federal worker pension contributions but cuts pension payouts (82 comments)

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  •  How much do they pay in now (0+ / 0-)

    In Ohio, we pay 10% and our employer puts in 14% AND OPERS is considered one of the most solvent plans in the country (and we still had to raise the retirement by 2 years recently).  The fact is that returns have been lower than projected and if you want a solvent pension plan you have to pay for it.  

     

    •  FERS is REQUIRED to be solvent, and is (3+ / 0-)
      Recommended by:
      merrily1000, waztec, Ramoth

      FERS is the Federal retirement system for everyone hired since 1984. It is funded by contributions from both employees and the agency they work for. If projections show a shortfall in a particular fiscal year, the agency contribution for the next year is automatically increased to compensate.

      The result is that FERS tends to run small surpluses, with the occasional small deficit triggering a rise in the agency contribution that guarantees a surplus the following year, bringing things back in line overall.

      One thing I've wondered, is the proposed increase in FERS employee contributions intended to allow smaller agency contributions, thereby increasing an Agency's available funding in a backdoor manner? That would be a small silver lining to the ugly business.

      Or is it meant to allow a FERS surplus that can be raided for other purposes?

    •  OPERS vs. Federal Pay (1+ / 0-)
      Recommended by:
      mike101

      Federal employees pay into Social Security AND the Federal Employees Retirement System. State of Ohio Employees do not pay into Social Security.

      I know, I'm a retired Federal employee and my partner works for the State of Ohio, and we've compared pay stubs. For those who don't know, FERS was modeled on the benefits that private industry was giving its employees in the 1980s when it was created.

      It works out to being about the same, if you're in an administrative (read "clerical") position. Where my partner pays into OPERS, I paid into FERS and SS, plus putting whatever I could afford to into my Federal TSP account. My partner pays about what I put into TSP into her IRA.

      But FERS is required by law to be solvent, so the contribution to that can (and does) go up. I've never seen it decrease.

      Yes, it's a damn shame that private industry scuttled their pension plans -- whose fault is it that they did so? The same people who crippled the Unions...people bought into the meme Union=Evil, now there are few left to defend the benefits the Unions fought for...

      Wouldn't it be better to fight for better benefits for everyone, rather than beating up public employees because their benefits are now better those working in private industry?

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