Most federal civilian employees are now on a 401(k) equivalent.
Air Traffic likes to mention how they are one of the ones left with a pension, but clearly, nothing is guaranteed.
We get both. A 401k equivalent called TSP (Thrift Savings Plan) and FERS. People hired after a certain year ( i wanna say 2011 or 2013) pay substantially more into FERS than people hired before (less than 1% vs 4.3% of pay). I don’t expect either to pay out in my lifetime tbh.
TSP is also unique in that you can take a loan from it directly, not using it as colateral. Any interest paid goes right back into your TSP.
Neither of those are unique from a majority of 401(k) plans in the U.S - taking out a loan against it included.
You’ll still take a sizeable tax hit on an early distribution from any retirement plan - TSP included. You should be able to do a direct rollover to any active 401(k), 403(b), or IRA penalty free.
I worked in the government for 5 years, and a financial planning firm for just about 2.
I’m pretty sure the idea is to get rid of dissenters in an easy and legal way, while keeping those like-minded individuals who will toe the line.
I think the idea is to scare dissenters into quitting, because otherwise their position may get downsized otherwise and they lose out on any benefits and pension.
I dunno, how does 8 months pay sound more appealing than a pension?
Most federal civilian employees are now on a 401(k) equivalent. Air Traffic likes to mention how they are one of the ones left with a pension, but clearly, nothing is guaranteed.
We get both. A 401k equivalent called TSP (Thrift Savings Plan) and FERS. People hired after a certain year ( i wanna say 2011 or 2013) pay substantially more into FERS than people hired before (less than 1% vs 4.3% of pay). I don’t expect either to pay out in my lifetime tbh.
TSP is also unique in that you can take a loan from it directly, not using it as colateral. Any interest paid goes right back into your TSP.
This is also an option if jumping ship:
https://www.opm.gov/frequently-asked-questions/retire-faq/leaving-the-government/how-do-i-apply-to-have-my-retirement-contributions-refunded-to-me-in-a-one-time-payment/
Neither of those are unique from a majority of 401(k) plans in the U.S - taking out a loan against it included. You’ll still take a sizeable tax hit on an early distribution from any retirement plan - TSP included. You should be able to do a direct rollover to any active 401(k), 403(b), or IRA penalty free. I worked in the government for 5 years, and a financial planning firm for just about 2.
I’m pretty sure the idea is to get rid of dissenters in an easy and legal way, while keeping those like-minded individuals who will toe the line.
I think the idea is to scare dissenters into quitting, because otherwise their position may get downsized otherwise and they lose out on any benefits and pension.
Just think of how you could retire if you put all of that into Trump and Malania coins. Heck, maybe even a Baron coin!