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Trump administration will offer all 2 million federal workers a buyout to resign (www.nbcnews.com)
submitted 2 years ago by to c/politics@lemmy.world
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[–] 36 points 2 years ago (5 children)

I dunno, how does 8 months pay sound more appealing than a pension?

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  • [–] 11 points 2 years ago (2 children)

    Most federal civilian employees are now on a 401(k) equivalent. Air Traffic likes to mention how they are one of the ones left with a pension, but clearly, nothing is guaranteed.

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  • [–] 4 points 2 years ago (1 child)

    We get both. A 401k equivalent called TSP (Thrift Savings Plan) and FERS. People hired after a certain year ( i wanna say 2011 or 2013) pay substantially more into FERS than people hired before (less than 1% vs 4.3% of pay). I don't expect either to pay out in my lifetime tbh.

    TSP is also unique in that you can take a loan from it directly, not using it as colateral. Any interest paid goes right back into your TSP.

    This is also an option if jumping ship:

    https://www.opm.gov/frequently-asked-questions/retire-faq/leaving-the-government/how-do-i-apply-to-have-my-retirement-contributions-refunded-to-me-in-a-one-time-payment/

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  • [–] 1 point 2 years ago*

    Neither of those are unique from a majority of 401(k) plans in the U.S - taking out a loan against it included. You'll still take a sizeable tax hit on an early distribution from any retirement plan - TSP included. You should be able to do a direct rollover to any active 401(k), 403(b), or IRA penalty free. I worked in the government for 5 years, and a financial planning firm for just about 2.

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  • [–] 6 points 2 years ago

    I’m pretty sure the idea is to get rid of dissenters in an easy and legal way, while keeping those like-minded individuals who will toe the line.

    I think the idea is to scare dissenters into quitting, because otherwise their position may get downsized otherwise and they lose out on any benefits and pension.

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