Current budget environment is driving Federal Government Departments to downsizing their workforce and cut costs. Current tools are separation incentives and early retirement options with two options 1) 25 years, any age and 2) 20 years, age 50. For FERS employees, the federal pension is only one small part of a retirement package, approximately 1% of pay per year of service. If more employees could retire with 20 years or over at any age (similar to military service), more employees may be willing to take retirement early. This would give agencies more flexibility and tools in downsizing times. Younger employees could move on and start other businesses, innovate and create jobs in the private sector. The savings would be in both salary and long term reduction in annual retirement costs.
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