patrick.net

OkDOGEisAmountingToSomething says

AD says

For Federal Employee Retirement System its 1% a year for each year and I think if they retire at 60, then they get 1.1% for each year based on high 3 year salaries.

So someone with 20 years (a "late hire" who worked 20 years prior as a government contractor) then they would get for an average high 3 year salary of $120,000 as a GS-13

(1.1/100) x 20 x $120,000 = $26,400 per year

Based on a 4% annuity that is like having $26,400 / 0.04, or $660,000 in the bank for the annuity.

Are you serious? They get a 401k type investment system that pretty good AND kick ass medical bennies. You are not counting the net present values of those.

The $26,400 per year is the amount they would receive if they retire today, so its equivalent to having a 4% annuity withdrawn from a $660,000 savings account.

In addition to Federal Employee Retirement System I think also the federal civil servants get a match of a maximum of 5% for their Thrift Savings Program (TSP), so if you contribute 5% of your pay to your 401K (aka: TSP) then the federal government matches 5%.

I am not sure about the medical insurance when one can retire at minimum retirement age (MRA) which I think is usually 57 years if you have at least 20 years of federal service.

If not, then I think the retirement age is 62 years.

.

AD says

The $26,400 per year is the amount they would receive if they retire today, so its equivalent to having a 4% annuity withdrawn from a $660,000 savings account.

Context I am not sure your are keeping in mind:

Federal worker: I am going to lose my pension!

Private Sector Worker: What's a pension?

OkDOGEisAmountingToSomething says

AD says

The $26,400 per year is the amount they would receive if they retire today, so its equivalent to having a 4% annuity withdrawn from a $660,000 savings account.

Context I am not sure your are keeping in mind:

Federal worker: I am going to lose my pension!

Private Sector Worker: What's a pension?

Yes I appreciate context and yes, "context matters".

I think the argument back in the day (~1980's to 2010) was that a private sector worker received more pay so they could save more in their 401K's and IRA's.

Now from a buddy of mine who works as a "support contractor and naval engineer" at US Coast Guard headquarters, the civil servant counterparts make more money than the private sector.

.

AD says

OkDOGEisAmountingToSomething says

AD says

The $26,400 per year is the amount they would receive if they retire today, so its equivalent to having a 4% annuity withdrawn from a $660,000 savings account.

Context I am not sure your are keeping in mind:

Federal worker: I am going to lose my pension!

Private Sector Worker: What's a pension?

Yes I appreciate context and yes, "context matters".

I think the argument back in the day (~1980's to 2010) was that a private sector worker received more pay so they could save more in their 401K's and IRA's.

Now from a buddy of mine who works as a "support contractor and naval engineer" at US Coast Guard headquarters, the civil servant counterparts make more money than the private sector.

.

Depends on the job. For entry level, typically govt jobs pay less than private industry but as you promote in govt jobs or move up in steps or paygrade as service time increases, govt employers tend to surpass private industry.

Also depends on classification. I know one recent specialized job caps out in the place I work at just over $100k a year. I know a guy doing it in private industry on a direct apples to apples basis and making almost $200k. This is most frequent with blue collar semi skilled positions. The jobs that consistently pay more than private industry is clerical series jobs and the jobs that pay to little compared to private industry are STEM related jobs. Engineers and IT people in govt are quite underpaid.

AD says

The $26,400 per year is the amount they would receive if they retire today, so its equivalent to having a 4% annuity withdrawn from a $660,000 savings account.

I think you are missing the inflation indexed component. Once you factor in the increase each year for the CPI increase, the dollar amount of the annuity needed is much, much higher.

Misc says

AD says

The $26,400 per year is the amount they would receive if they retire today, so its equivalent to having a 4% annuity withdrawn from a $660,000 savings account.

I think you are missing the inflation indexed component. Once you factor in the increase each year for the CPI increase, the dollar amount of the annuity needed is much, much higher.

Yes, that $26,400 annuity from Federal Employee Retirement System increases each year at the same rate as Social Security increases, so yes the equivalent of $660,000 is for the first year of the pension.

.

https://www.usatoday.com/story/news/factcheck/2025/02/28/6-percent-federal-employees-in-person-fact-check/80526282007/

Only 6% of federal employees report to an office for work? Not true | Fact check

This is still BS that only 54% of federal workers are showing up to the office for pre COVID conditions (Full Time onsite)