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Re: Captain_Jack post# 58040

Saturday, 12/21/2002 8:51:16 PM

Saturday, December 21, 2002 8:51:16 PM

Post# of 704019
Captain, I find your post on CSRS to be less than accurate. As an ex federal employee, I can tell you that no one who was on the CSRS system was forced to switch to the new system, FERS. Everyone had the option to switch and very few with any number of years of service switched to the new system. Both systems still exist and will until the last worker under the old system retires. Only new workers hired after FERS came into existence were forced on to FERS. Those on CSRS were not relying on Soc Security - they have a very generous formula which usually provides 55-60% of your ending salary in retirement with full medical coverage. You do have to work until 55 with 30 years service to get the best benefits.

As for new workers on FERS, they get generous matching on 401k plan, and most I know did not have all their money in the C fund (S&P 500) - most took a balanced approach with the F(bond fund) and have probably lost far less than most market participants.

As an aside, I was surprised when I saw a study in the Federal Times that said federal workers in general did not save well for retirement and many lived average or worse lifestyles in retirement. I had thought my fellow fed workers would be more conservative and save for a rainy day, but apparently not. Not the fault of the retirement plan though - I found it to be top notch.

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