• Everyone, please help make our jobs easier and choose the correct category. Thank you

FERS retirement now requires 4.4% payroll deduction

CommonSense

Well-known member
Called shared services and was told neither I, nor anyone else - presumably, can opt out. Perhaps this will be the funds saving grace.
Just started FT and have no other creditable service.
It appears I'll have to work till 62 to take full advantage of this mandatory deduction. Not happy about that at all. (Have been saving in IRAs, spouse's 401-k, and rental properties for many years with the hope of retiring around 57. Am enrolled in the TSP at 5% before tax contribution.)

Wise words of wisdom greatly appreciated.
 
Last edited:
This was one of the concessions from last contract...which very few read. Also, it mandated new full-time personnel to pay much higher than .8% towards pensions than the old carriers paid. They want to affirm that people are funding their retirement. It's shocking how many people became regular and never participated in tsp beyond the old 1% mandated. It's compound interest - if you work 20 years as career, the first five years of tsp savings will generate 80% of your total tsp fund due to interest growth.

Edit: tsp election is now mandated at 3%. Frozen toes you are correct, I messed up. I had just come off a 36 hour shift - I was probably a bit loopy still. Tsp has a great PDF for new hires.
 
Last edited:
This was one of the concessions from last contract...which very few read. Also, it mandated new full-time personnel to pay much higher than .8% towards pensions than the old carriers paid. They want to affirm that people are funding their retirement. It's shocking how many people became regular and never participated in tsp beyond the old 1% mandated. It's compound interest - if you work 20 years as career, the first five years of tsp savings will generate 80% of your total tsp fund due to interest growth.
Are you sure?

Fers contribution
 
Actually it's a Fed-wide thing... not contract specific...

Started 3 or 4 years ago... new peeps pay the jacked up retirement (FERS) contributions... us old-timers still payin' less than 1%...

Sometimes it's good to be old...

Table 2er's not only got docked on pay... they also took it in the shorts for this other 4.4% of salary for retirement... just sayin'... sucks to be you.... hail, will you even have a retirement by then??? :oops:
 
Last edited:
The fers retirement funding calculation changed awhile back. I'll be honest, since I stepped down a few years ago I haven't been nearly as diligent about keeping up with changes to new hires as I no longer have to answer their questions.

But the bottom line is table two pay more towards any benefits while making less wage. Just more incentive for members to read whatever the new contract proposes...before voting on it.
 
When this 1st started we had a new Reg, and somehow they witheld at the OLD lower rate on them for about 6 or 8 months... then they figured out he needed to pay the HIGHER rate and so they sent him a letter of demand... DOH!?!? and it was a pretty good chunk of change by then as well... if the USPS can screw ya... well, let's just say they don't miss any opportunities... ?
 
It appears I'll have to work till 62 to take full advantage of this mandatory deduction.
There are numerous hurdles to take advantage of different aspects of retirement. Age 62, with minimum of 5 years covers some things. Getting 1% for each year of service simply requires 5 years of service and waiting till retirement age to collect. You can get your money back (your 4.4% contribution) as a lump sum as opposed to getting it as an actual retirement. There is more to it than just getting the max, which depending on your age may not even be possible by age 57.
 
Wish I never joined this site...coming up on a year as an rca and enjoy the job, but after reading threads on here the past few weeks my job search has commenced!
One of the motto's of this site is... ignorance really ISN'T bliss...

If you wanna kid yourself that you have a bright future with the good ole USPS... I say keep on those rose-colored glasses, and good luck to ya...
 
One of the motto's of this site is... ignorance really ISN'T bliss...

If you wanna kid yourself that you have a bright future with the good ole USPS... I say keep on those rose-colored glasses, and good luck to ya...
Yep, if just starting out I think there are better ways to make a living nowadays.
Heck Bank of America just raised their min wage to $20, we just can't keep up with others nowadays.
 
DB.Cooper et al -- "One of the motto's of this site is... ignorance really ISN'T bliss... "

-- Another motto should be: What you don't know CAN HURT YOU!!
 
stingrayiii et al -- "Bank of America just raised their min wage to $20, we just can't keep up with others nowadays."

-- Their min wage will increase to $17 / hr on 01 MAY 19 and reach $20 / hr in 2021.

-- Hopefully BOA is better at hitting planned implementation dates than some other unnamed company.

-- Even better, BOA will freeze health costs increases for lower-paid workers. ( what a novel idea - even more of a pay increase )

-- Must give the CEO of BOA a warm fuzzy feeling, after all, he earned $23 MILLION in 2017.

-- "With the success our company has ... we have to share that success with our teammates." ( not a quote by the USPS )
 
For myself, after working as an RCA for 12.5 years before becoming regular, this deduction is extremely disappointing. I have always envisioned a retirement based on net assets instead of age. It appears I must now do the exact same thing most everyday for the next 12 years.
I am now very unhapppy as a regular rural carrier. Perhaps Bank of America will bail me out.
 
Last edited:
This was one of the concessions from last contract...which very few read. Also, it mandated new full-time personnel to pay much higher than .8% towards pensions than the old carriers paid. They want to affirm that people are funding their retirement. It's shocking how many people became regular and never participated in tsp beyond the old 1% mandated. It's compound interest - if you work 20 years as career, the first five years of tsp savings will generate 80% of your total tsp fund due to interest growth.
Compound interest? This money (4.4%) is not invested, at least partially, in stock market indices?! Dividend paying stocks, as well as 100% plowback ones, behave far differently (as investments) than long term CDs. Dollar cost averaging is just a simple example.
***I do appreciate the contractual info.***
 
Last edited:
Compound interest? This money (4.4%) is not invested, at least partially, in stock market indices?! Dividend paying stocks, as well as 100% plowback ones, behave far differently (as investments) than long term CDs. Dollar cost averaging is just a simple example.
***I do appreciate the contractual info.***

They have everything set up that most people do not understand, all for a reason. Just like our mail count, insurance and so many other things. They know most Americans don't take the time to read all the fine lines and if they do they know most won't understand. Knowledge is Power they fear this.
 
It's ok, eventually, with all my records (most in hard copy form in the case of hard drive failure), it may make for a good book, after reviewed by my attorney.
So what should the title be: Good enough for Government Work - The Fallacy of Federal Employment?
A little help?
 
Last edited:
I'm on table 2 paying 4.4% into fers and 5% into tsp. As an RCA on the lower pay scale I made much more money and struggle now because of deductions. They cut my route an hour during the special count and I fought it but they still took it away. My DR said he didn't want to pursue it, to which I think it bull$_-+. I thought I would feel better about my job after going regular but I do feel worse. I think they will try to take some of my mileage away after this gps study and route inspections too. I feel trapped in this job. My mother retired as a rural carrier a few years ago and my grandfather's brother was also a retired rural carrier. It's not the same post office, I know things change over time.
I should have more pride but mostly feel depressed. Knowing that I make so much less, pay more for the same retirement benefit and feel like I'm stuck on this crappy route really gets into my head day after day. I think someone should write a book or start a podcast to out this information. Everyone I know thinks we have such a great job outside of the PO, rumors of great pay and retirement but that's not exactly true to how I feel. After health insurance and everything else I'm bringing home about $13/hour. It's hard to support a family and pay my obligations on that. This is pretty close to what I posted on Facebook a while back in regards to fers and got bombarded by other regulars saying that the problem with my generation is that millennials think they are owed everything, well I'm indeed a millennial but I'm also in my 30s have a wife and 3 children. I work the same job as my mother did, in fact in the same office alongside my mother for 2 years doing the same job.
Something needs to be done for table 2 regulars before too many feel like me and find something else. Believe me, I think about other options daily. I also wonder about the future of the PO. Bottom line is, the majority of the people working here, are here for the money and security of the job, what if both of those are constantly up for debate? I've seen what they were trying to do to the clerks union. It probably won't be better for us or improve in the future. Please don't be disrespectful and tell me "the door swings both ways", I've heard that before and it's not funny.
 
stingrayiii et al -- "Bank of America just raised their min wage to $20, we just can't keep up with others nowadays."

-- Their min wage will increase to $17 / hr on 01 MAY 19 and reach $20 / hr in 2021.

-- Hopefully BOA is better at hitting planned implementation dates than some other unnamed company.

-- Even better, BOA will freeze health costs increases for lower-paid workers. ( what a novel idea - even more of a pay increase )

-- Must give the CEO of BOA a warm fuzzy feeling, after all, he earned $23 MILLION in 2017.

-- "With the success our company has ... we have to share that success with our teammates." ( not a quote by the USPS )
Question- I do not need health insurance or retirement can I bypass these deductions IF I make regular ?
 
Back
Top