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Anyone else out there in the same boat as me? That is being a federal employee in the federal employee retirement system?

It seemd that the guv-mint treats us like 2nd class citizens. I'm limited to 10% of base pay in my FERS account(read 401k for non-feds) while, in the free world the limit is $10,000. So I can ony contribute 1/2 as much to my own retirement as someone in private industry.

Any comment on 1/3rd of our retirement being based on social security? Really think it's gonna be there?

Any comment on high management fees charged by the management organization?

I've set up a roth IRA, anyone else?

Just a few comments for the civil servants out there.
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I'm a federal employee, but since I'm getting close to retirement I opted to remain in the old CSRS defined- benefit system. I don't feel like a second class citizen and neither should you. The defined-benefit pension as administered by the Federal Gov't is the Cadillac of pension sytems. If I wish to stay long enough I can retire on 80% of my "high-3" pay and this puppy is indexed to the CPI to boot.

If I hadn't had so much of an investment in the old system, I would have strongly considered FERS. There are many differences in the systems, but FERS still has an indexed defined-benefit portion in addition to social security coverage. What's more, you automatically earn 100% on your first 5% invested. I participate in the TSP as a CSRS employee, even though I don't get any matching funds. Also the expenses incurred in the operation of the stock fund (C) are actually pretty good. I havent't checked recently but in 1994 I remember the expense ratio was .11%

If you continue to max out on the TSP and fully fund a Roth as well, you will not be disappointed upon retirement.

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