NEWS
& NOTES
NEW STUDY SHOWS INCREASE IN FEDERAL EMPLOYEES CONSIDERING RETIREMENT
Recently , the 2020 Federal Employee Viewpoint Survey was released , highlighting results showing that the pandemic has contributed to some federal employees rethinking their current career plans . Thirty-one percent of respondents said they are considering leaving their organization within the next year . That number is up 5 % from the 26 % who responded the same way prior to the pandemic .
Overall , 29 % of respondents said they expect to retire in five years or less . That is roughly equal to the 27 % who said they have been with the government at least 20 years , suggesting that many of those employees considering retirement are already eligible under one of the standard age-and-years-of-service combinations .
HOW ARE YOU DOING IN YOUR RETIREMENT PLANNING ?
Maintaining the same or a similar lifestyle after retirement is a huge concern for Federal Employees considering retirement . The Average FERS Federal Employee receives the following :
• $ 1,600 per month from their FERS Pension
• $ 2,000 per month from Social Security
The remainder of their income comes from their TSP account in the form of supplemental income . Total retirement income ranges from $ 40,000 to $ 100,000 annually .
Many Federal Employees look to maximize this income and guarantee the income for life through some form of an annuity .
SICK LEAVE CREDIT ?
FERS CREDIT FOR SICK LEAVE AT RETIREMENT
As a Federal Employee , you earn sick leave at the rate of 4 hours for every 80 hours worked . Any sick leave on record which is unused at retirement will be credited as additional service in the computation of the FERS annuity . Sick leave cannot be used to make an employee eligible to retire , but it should be taken into account when considering when to retire and how to fund retirement .
WILL CONGRESS LOWER THE RATES ON THE G FUND ?
Many Federal Employees use the G Fund as a safe investment option in their TSP accounts .
The G Fund pays interest roughly equal to the rate of mid-term government bonds , but carries none of the risk ( to loss of principal ) if interest rates go up . Congress , especially the
House , has proposed lowering the rate on the G Fund over the past few sessions . These changes have not been passed yet , but with the increasing economic uncertainty of the postpandemic world , they could be . With rising inflation , increased gas prices , and increased tax rates , a lot of economic realities are beginning to come to fruition , and the rate of the G Fund could be one of them .
G FUND ANNUAL RETURNS
2020 0.97 % 2019 2.24 % 2018 2.91 % 2017 2.33 % 2016 1.82 % 2015 2.04 % 2014 2.31 % 2013 1.89 %
2012 1.47 % 2011 2.45 %
2010 2.81 %
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