Possible hike in pension contribution


Q. I recently read your article, “Prepare now for possible hike in pension contribution.”

1. Can you respond with your thoughts regarding how proposed pension hikes would or would not affect federal employees with less than five years of service as of Jan. 1, 2013) who are subject to the 2.3 percentage-point increase signed into law by President Obama this winter?

2. How would the possible hike in pension contribution affect a CSRS employee who has over 41 years and 11 months of service?

A. 1. With about half the increase I modeled for my article, I’d expect about the half the effect.

2. It would have VERY LITTLE effect, since the reduction in savings contributions would be relatively small.


About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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