Federal retirees under the old Civil Service Retirement System receive the full COLA amount.

However, there is a slightly different system for retirees under the Federal Employees Retirement System. If the COLA is more than 3 percent, FERS retirees will receive 1 percent less than the general increase. If the COLA is between 2 percent and 3 percent, FERS retirees receive just a 2 percent increase.

For example, with a COLA of 3.6 percent, FERS retirees can expect to receive a 2.6 percent increase.

However, most FERS retirees will not have the COLA applied to their annuity until age 62.

via Social Security announces 3.6 percent COLA – FederalNewsRadio.com.

A recent Federal Times article discusses the “problem” in some detail, and comes to a surprising conclusion: there isn’t a problem!

But there’s no evidence to suggest federal pension plans are a financial bomb waiting to go off. That was defused when CSRS was ended, and since FERS is legally required to be fully funded, the unfunded liability will fade over time.

OPM and outside observers such as Adcock and Palguta aren’t the only ones saying the system is sound. The Congressional Research Service has published several reports in recent years on federal pension programs, all of which concluded the programs are on solid ground.

"Although the civil service trust fund has an unfunded liability, it is not in danger of becoming insolvent," CRS said in a January report.

Audit firm KPMG has consistently given OPM’s financial statements and retirement programs unqualified opinions, meaning they found no significant problems.

And the Government Accountability Office said in a 1995 report that CSRS’ flaws, which resulted in the unfunded liability, were resolved with the creation of FERS.

"Provisions have been made for the retirement fund to always have sufficient budget authority to cover future benefit payments," former Assistant Comptroller General Johnny Finch said at a House hearing.

via Fed pensions underfunded by $673B – FederalTimes.com.

THIS SECTION ADDRESSES SPECIFIC RIF NOTICE QUESTIONS RELATED TO THE 2011 REDESIGN. FOR A MORE COMPREHENSIVE LIST OF QUESTIONS AND ANSWERS, CLICK ON THE ORGANIZATIONAL CHANGE/RIF FAQS (GENERAL FAQS).

21. I received a May 27, 2011 Specific RIF Notice that states that I will be assigned to another position. When does this new position become effective? Can I apply for other positions during the job posting period that begins on June 14? (Added 05/26/2011)

Assignment to your new position as stated in the May 27, 2011 Specific RIF Notice—either a demotion to a lower-grade position or a reassignment to a same-grade position—will be effective on September 10, 2011, which marks the end of the 2011 Organizational Redesign process.

A PS Form 50 effecting your RIF assignment on September 10, 2011 will be processed and mailed out in mid-September. However, you may be expected to begin performing the duties of your RIF assignment prior to the September 10 effective date. Managers will discuss these details with their respective employees.

Jobs will be posted in eCareer beginning on June 14, 2011. If you meet the eligibility requirements indicated in a job posting, you can apply. If you are selected for a position, a PS Form 50 specifying the new position and effective date will be processed.

22. I received a May 27, 2011 Specific RIF Notice that states that I did not receive an assignment and will be separated. When does this separation become effective? Can I apply for positions during the job posting period that begins on June 14? (Added 05/26/2011)

Your separation will become effective close of business on September 9, 2011.

Jobs will be posted in eCareer beginning on June 14, 2011. If you meet the eligibility requirements indicated in a job posting, you can apply. If you are selected for a position, a PS Form 50 specifying the new position and effective date will be processed.

23. I didn’t receive a May 27, 2011 Specific RIF Notice. Why not? Can I apply for positions during the job posting period that begins on June 14? (Added 05/26/2011)

Based on information available at the time, the RIF process was conducted in May as necessary in competitive areas impacted by the 2011 Organizational Redesign. Then, Specific RIF Notices were generated and sent on May 27, 2011 to the following categories of employees:

* employees who did not receive an assignment;
* employees who received a demotion to a lower-grade position; and
* employees who received a reassignment to a same-grade position.

If you did not fall within one of the three categories of employees identified above, you were not sent a Specific RIF Notice.

Jobs will be posted in eCareer beginning on June 14, 2011. If you meet the eligibility requirements indicated in a job posting, you can apply. If you are selected for a position, a PS Form 50 specifying the new position and effective date will be processed.

24. If I didn’t receive a May 27, 2011 Specific RIF Notice, is it possible for me later to receive one? If I did receive a May 27, 2011 Specific RIF Notice, is it possible for the result stated in the notice to later change? (Added 05/26/2011)

After the mailing of the Specific RIF Notices on May 27, 2011 and on or before the RIF effective date at the close of business on September 9, 2011, circumstances can change in a competitive area—for example, an employee’s preference eligibility status—that changes the impact of the RIF process on one or more of the competitive area’s employees. Therefore, it is possible for an employee who was not sent a May 27 Specific RIF Notice to later be sent one. It is also possible for an employee’s May 27 Specific RIF Notice to later be amended to provide a different result, or to be rescinded.

* Note: Please be aware that if you choose an April 30th effective date, you may experience a delay in receipt of your first interim annuity payment from OPM due to the short processing time involved.

Update: The C-fund fell another 5% on Tuesday, to $11.43, a level not seen since 2004. The cumulative loss in the last month now stands at 20%.

TSP Funds Historical Prices

November 28, 2008 – VER Offer packages will begin being mailed to VER eligible employees.

December 03, 2008 through January 16, 2009 – VER Window Period

The VER effective date is Tuesday, March 31, 2009.

More information will follow when received.

NAPUS.

The current FERS program likely will result in either the most productive or skilled employees leaving well before 30 years for better paying opportunities. This will likely include contractor jobs where the taxpayers pay more for the same services…

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