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

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  •  FERS and TSP -- two separate streams (0+ / 0-)

    TSP does not fund your FERS pension. Where you may be getting confused is that both you and your agency contribute to both items.

    When you retire, you will receive monthly pension payments from the Office of Personnel Management based on your three highest paid years -- this is your FERS pension.

    You will have to contact TSP separately from OPM and make arrangements as to how you wish to receive payments from your personal account. You may take a lump-sum, or monthly pay outs, roll it into an IRA, or leave it in TSP until you need it.

    You should look into attending a Federal retirement seminar, our agency sent us to them after we vested in FERS, then when we had been employed for about 15 to 20 years, and another about 3 to 5 years before we reached Minimum Retirement Age.

    •  I know that the TSP does not fund the FERS pension (0+ / 0-)

      sorry if I made it sound that way in my post.  I was using the term "FERS" to describe the federal retirement plan as a whole, i.e. the federal pension, TSP, and social security.  I would like to attend a Federal retirement seminar.  I just haven't seen the point recently since I'm not contributing much to my TSP.  

      •  Did you know... (0+ / 0-)

        ...that your contribution to TSP reduces your income tax? Which means more take home pay.

        Even if you're not contributing much NOW, at some point you will want to increase it. I was only able to contribute a full 15% of income for a few years, but it really made a difference.

        Good luck in your career. I really enjoyed helping people, which why the beatdown on public employees really depresses me.

        •  No I didn't know that. (0+ / 0-)

          Thanks for the tip!  :)  I am definitely planning on contributing more soon; I've just been waiting for hubby to finish school.  Anyway, yes, the whole "helping people" bit is getting completely lost in the hatefest towards public employees.  It is indeed depressing.  It's actually even getting the Republicans in my office down.  In fact, some of the most vociferous defenders of our agency amongst my co-workers happen to be Republican.  Too bad they can't seem to translate those feelings to others outside of themselves.  

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