Skip to main content

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

Comment Preferences

  •  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?

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site