[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]This question is not tricky, but it becomes a trick question if the government commences an open season that is special to allow a person to change their retirement plan. The question that arises is if that person will pick the old program of Civil Service Retirement System (CSRS) or the new one that replaced it in the 1980s the Federal Employees Retirement System (FERS).
Majority of feds still working up to date are all under the new FERS plan, and most of the individuals under CSRS are the federal retirees.
- Also Read: How the Wrong Federal Retirement Choices Could Shrink Your Pension More Than You Think
- Also Read: 4 Reasons Why Medicare Could Be a Smarter Choice Than FEHB for Some Federal Retirees
- Also Read: Leaving Your TSP Alone Can Be Risky—Especially If You’re Already Retired
Asking the question to a typical CSRS employee or retiree, they will highlight some FERS super benefits. For instance, Social Security covers the employees allowing them to qualify for a government match of 5 percent to their Thrift Savings Plan accounts. Majority of people under FERS take a stride in extra investment and those that do not get it only dream of it.
Employees under CSRS contribute much more than FERS workers to their retirement plan, but those under FERS will be required to pay Social Security.
Workers under FERS get contribution matches in their TSP accounts in amounts that can be quite significant. CSRS retirees do not receive contribution matches.
If you have questions regarding your own retirement plan, make sure to reach out to a trusted financial advisor.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”34325″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]
