We are aware of the recent budget proposal from the White House and its potential impact on past and present federal government employees. It is important to remember this is just a proposal and is part of a first proposal. Similar ideas have been proposed in the past with no action.
Some of the highlights of the proposal include..
- Increasing the required FERS employee contribution by 1% in 2018 and an additional 1% over the next five to six years
- Stopping cost of living adjustments to FERS recipients while shaving .5% off the living adjustment for CSRS recipients
- Changing the FERS pension calculations by using "high 5" income vs. the current "high 3"
- Eliminating the FERS "Special Retirement Supplement"
We are following this closely but do not recommend modifying your financial plan until we receive more clarity. We do understand, however, the anxiety things like this may cause so feel free to reach out if you’d like to discuss.