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2013 Budget – Pay Changes – .5% Pay Raise, Increase Retirement Contribution by .4%, FERS Supplement Cancelled

The White House just announced their fiscal 2013 budget request.
Some good recap from GovExec & Washington Post

A couple big pay updates:

1) Pay raise -Bump of .5% pay raise in 2013 for civilians, 1.7 for military

2) Increase retirement contribution – Increase the percentage feds pay into their retirement by 1.2 (.4 percent each year for over 3 years by 2013. This is for the FERS supplement that folks often don’t talk about – it’s a smaller version of t

3) Eliminate the FERS Annuity supplement for new employees – This is a big deal and not getting a whole lot of press. Right now if you have joined the federal government in last decade, you have the Thrift Savings Plan (which is basically a 401k plan) as well as a FERS annuity supplement. The FERS supplement is a defined benefit plan that roughly equals 1% of your salary X number of years you worked. So if you worked for 30 years in govt, you get 30% of your salary + your TSP. Eliminating this piece is big although it is increasingly common these days

What’s your take?

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