Great news: Fed workers make twice their private counterparts

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Originally Posted by LnGrrrR

I wouldn't be surprised to see the double pension go away. Still, I don't see how he got three pensions unless he retired at 77 or something.

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Definitely agree that the double pension has got to go. Of course you'd still have a group of people who will work for the federal govt for a while then go work for a state or local gov and double dip that way. Still, you've got to start somewhere.

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Originally Posted by LnGrrrR

I wouldn't be surprised to see the double pension go away. Still, I don't see how he got three pensions unless he retired at 77 or something.

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I don't remember the details but I think his timing was good and he got to take advantage of some downsizing "early out" options...I know civil service did it when they started privatizing some functions...

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Originally Posted by DarkReign

But doesnt Obamacare make benefits taxable if you earn a certain amount?

Serious question.

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They make benefits taxable if they are too rich (unless you are a member of a union - which many federal employees are).

I wouldn't blame private business. I would blame the big corps in a race to the bottom, offshoring jobs and production with the profits going to their execs and shareholders, but certainly not going to US workers. Other businesses, especially small businesses, are caught up in a price squeeze. This does not seem like a good long-term strategy because poorer US workers do not buy so much.

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Originally Posted by CosmicCowboy

I don't remember the details but I think his timing was good and he got to take advantage of some downsizing "early out" options...I know civil service did it when they started privatizing some functions...

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Ahh.. I gotcha. I'm pretty sure in the military that they don't give you pension if you opt out, but could be for civil service. Lucky guy.

I've heard rumors that there's talk of putting off active duty retirement pay until the age of 60... doubt that gets passed though.

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Originally Posted by ElNono

What do you call 'a few'? Some quick math tells me at least 25k for 80 years to get to $2 million...

25K is a good chunk of change. Heck, a couple of years ago I wasn't making 25K for the entire year.

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If you set aside $2,000 a year for 45 years in an IRA or 401k that returns 4% better interest than inflation, you have about $250k today's value. That would yield about $2,000 monthly for about another 10 to 15 years in safer investments. That supplements SS nicely.

The more you invest, the better.

Compound interest is your friend in savings, your enemy with credit cards.

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Originally Posted by Nbadan

...Guess what? If 'some government pension' is worthless then your 401k is worthless too because the government just defaulted on its obligations and all money is now worthless.....get a clue...

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If you only have government securities in your 401k mix, you are a fool.

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Originally Posted by LnGrrrR

I wouldn't be surprised to see the double pension go away. Still, I don't see how he got three pensions unless he retired at 77 or something.

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Triple dipping includes the Social Security. 20 years military then = 50% base pay. Civil service, and the older postal retirement is the same pool of money. He would have received a pension based on his wages with time accredited for both combined. I think CRS pays 2.5% of your wages per year accrued, but I would have to ask a friend.

I may be slightly mistaken, just looked this up:

CSRS Retirement