Return to Article: Changes for 2008

By Tammy Flanagan National Institute of Transition Planning January 11, 2008
  • 41339

    "Basic Benefits: CSRS survivor annuity benefits and CSRS retirement annuity benefits were increased by 2.3 percent on Jan. 1. FERS basic retirement annuity benefits and FERS survivor annuity benefits were increased by 2 percent."

    Re CSRS-Offset retirement annuity benefits, does the annual increase apply to the entire annual annuity payment (including the SSA payment) or only the CSRS Offset portion?

    Connie Skelton Posted January 11, 2008 11:29 AM
  • 41328

    I think that you should note that The House Social Security Subcommittee has scheduled a hearing on January 16 that will include discussion of the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP). H.R. 82 has 337 Cosponsors and would eliminate both GPO and WEP! The companion S 206 would do the same and has 36 cosponsors. All federal employees should be informed of this and of course support those trying to eliminate these unfair provisions.

    Paul Raetsch Posted January 11, 2008 10:37 AM
  • 41327

    I have considered the VC as an endgame option just prior to retirement. Here is my understanding. The upside is good rate of return annuitization. The downsides are: another annuity is duplicative of CSRS; no access to the principal; and if you die early, there is nothing for your heirs.

    Art Beller Posted January 11, 2008 10:35 AM
  • 41313

    I plan to retire on January 3, 2009 at age 67. It would appear that if I make a voluntary contribution (VC) of $10,000, I will earn at least 9 percent annually, and if the money is not subject to state income tax, (pensions are not, interest is) it would amount to a yield of 12%. Why isn't that a very popular option? A surviving spouse will still earn at least 4.5 %

    Gerald Kobell Posted January 11, 2008 8:47 AM

Post a Comment

To post a comment, you must provide a name and a valid e-mail address. Messages must be limited to 400 words. By using this Service you agree not to post material that is obscene, harassing, defamatory, or otherwise objectionable. Although Government Executive does not monitor comments posted to this site (and has no obligation to), it reserves the right to delete, edit, or move any material that it deems to be in violation of this rule.

Changes for 2008
*
*
*
Vendors Solutions Center