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Retirement Discussions / Retire Early Liberal Edition
|Subject: Re: OT: house values...||Date: 2/17/2007 2:13 PM|
|Author: johnmoni||Number: 2208 of 63362|
"Gov't workers don't get SS..never pay it...they get pensions from the Fed saving plan when they are eligible to retire at whatever age - 50, 55, etc...same for military)"
Just a slight clarification for you regarding Government pensions (this applies to almost all, but not 100% of, Govt. civilian employees.)
Federal employees hired before 1986 participate in the Civil Service Retirement System (CSRS.) It is a traditional-pension based system, in which they make regular payroll contributions (7% of salary) to the fund, and the annuity is calculated based on a formula that considers age, employee's "high-3" average salary and number of years in the system. CSRS participants do not pay into Social Security (but can't collect based on those years of employment either.)
Those hired starting in 1986 and thereafter, participate in the Federal Employees Retirement System (FERS.) In that system, their retirement is made up of 3 components: a very small traditional pension, Social Security and their Federal 401K (known as the Thrift Savings Plan - TSP) savings. The TSP component for FERS participants also offers matching payments on a graduated scale, similar to that in which many private sector employees are enrolled.
More info here:
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