The Story of Federal Retirement Savings Getting A Bump

November 24, 2015

Slight Bump in Retirement Savings

Recently an announcement was made according to which there would be no cost of living adjustment made in the retired federal officers’ benefits. This has only been done for the third time in over a span of 40 years. The retirees will thereby not be seeing an increase in their benefits which is something that’s really striking to say the least. Having said that, compared to this, the pay raise that the Federal employees got (from 1 percent to 1.3 percent) looks very handsome.

This is a matter that has divided the community and people are having polar remarks about this move. The congress has been keen to stress on the fact that they are not being ignorant to the financial demands and request of the federal employees. The senate has recently agreed to pass a bill that is going to make the collection of federal officer retirement payments by anybody other than the employee themselves illegal. This prohibits the misuse of money and prevents any further liquidations of the fund money to cash.

This is a step that can be looked at positively and the head of the Senate’s security department, James Lankford said that according to him, now people will at-least have to think twice before they actually go ahead and commit identity fraud on a federal employee that has retired. When you look at it that way, he does make sense but there have been large voices being made heard by many critics who are stressing on the fact that even though the government hasn’t increased the percentages for the plans of the retired officers, they have claimed to make identity fraud a lot harder when in truth it is still achievable.