This is historical material “frozen in time”. The website is no longer updated and links to external websites and some internal pages may not work.

Allow U.S. Federal Government Employees to Opt-out of the FERS Pension System.

Created by B.H. on January 09, 2013

As part of a plan to deal with the fiscal cliff, legislation was proposed to increase the FERS pension contributions of federal government employees by over 500%. While this isn't law yet, it is very likely it will come up again to deal with sequestration.

Another way to reduce the long term commitments of the federal government is to allow federal government employees the option to opt-out of the FERS pension plan and just put that money into the Thrift Savings Plan (the federal government "401k" plan).

Many state and local governments are having issues making pension payments and since the federal government has difficulty making sound long term financial plans, this clearly will provide the oppurtunity for employees to have more control over their retirement planning.

Budget & Taxes
Economy & Jobs
Government & Regulatory Reform
Return to top