Quote:
Originally Posted by Walt.
You can lose 60% of your SS if you get a government pension. If you got that same amount of pension working for a business you wouldn't be penalized.
|
I work for the Federal Government and the information you relayed about loosing 60% of your SS if you get a Federal Government pension is incorrect info. The FERS retirement system which came about around 1987 consists of SS, a Federal pension, and TSP which is a 401K plan which the employee pays into all 3 and collects on all 3. The small remaining number of employees under the old CSRS Federal retirement systems did not pay into SS unless they had a private sector job prior to or during their Federal service employment and they would lose some SS money through the WEP process. This would not be a huge financial loss because CSRS employee's retirement calculation with 30 years of service works out to about 70-75 % of the average of their top 3 salaries. For me under FERS, my combined pension and SS will yield slightly less than 1/2 of the average of my top 3 salaries, and this is the reason why I heavily contribute to my TSP to make up the difference.