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Why is Fed retirement SO bad?

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  • #31
    Question, if I’m going into a non 6c covered position and do a few years like, 2 or 3 years and decide to go to a covered 6c position like USCP, how does the time transfer? Since it’s still federal time, does it subtract on the 20 years?

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    • Calitown
      Calitown commented
      Editing a comment
      merlin436 It's essentially the same thing as 6c bud. They retire at the same percentage, and can lateral their time into other covered positions. Literally there is like zero difference...So not sure why you even brought it up.

    • merlin436
      merlin436 commented
      Editing a comment
      @Calitown.

      Essentially the same does not equal the same..and there are numerous examples of CBP Officers who have issues in lateraling to traditional 12D positions., especially within the aforementioned "post-37" crowd.

      In addition, there's the perks of being defined "LE" under Title 5...like GL pay. The CBPO position lacks all the perks.

    • Badger99
      Badger99 commented
      Editing a comment
      I’ll just also add that State Dept Foreign Service retirement is also like 6c. It’s 20 years by Age 50 or 25 years at any age, at 1.7% like 6c. Only Diplomatic Security agents get LEAP included but basically a retired diplomat gets the same retirement as retired FBI, sans the LEAP in the salary calculation.

      Note: Not including State Dept civil service retirement, a separate system from Foreign Service retirement.

    • Calitown
      Calitown commented
      Editing a comment
      @merlin436

      You do realize GL pay is only up to a point for most if not all covered positions. GL drops off after 9 than turns into GS.

      Also, the ones you're speaking of who weren't able to lateral over to 12d/6c positions were non-vets/old timers who were with customs before the 2008 conversion. It does not apply to those who are in customs right now looking to transfer over to an 1801 6c or any 1811 position. All that time counts.

      .

  • #32
    FWD1987 The 37yo cut off age will only be waived for Veterans. Each agency approaches that age waiver differently for Veterans as well. That's why it is so important if you are close to 37yo you need to get in any 6c position to stop your clock. As exbpa pointed out, non-covered positions don't count toward your required years, but do count on the back end so to speak. Covered is 1.7% and non-covered is 1%.

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    • #33
      Originally posted by denver_bound View Post
      Yup max out TSP. Also if you can afford to do so, max out IRA as well. You'll need both if you wish to retire "comfortably". Otherwise you'll have to get a second job.
      This argument only really applies to states like CA which has a better retirement percentage and no cap on their high 3's. I know former CA correction officers making more from their retirement then when they were actually working...A lot of them take home 7K+ a month doing jack ****.

      For the rest of the nation, a covered federal retirement is better however the basic regular federal retirement is garbage, the difference between the two is about 14 percent.

      With the Feds, you get your TSP and also your full social security pension. .Essentially double dipping. Most states, only allows you to choose their pension program and opt out of SS...
      Last edited by Calitown; 09-06-2022, 01:38 AM.

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      • #34
        After reading this thread, I am SO glad I didn't go federal.

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        • IroqouisB
          IroqouisB commented
          Editing a comment
          I've read into it here and there, but didn't realize the pension formula was this bad. Local pensions have been watered down, but even they far exceed what the highest expectation of federal retirement would be (even with TSP).

        • Exbpa340
          Exbpa340 commented
          Editing a comment
          There will always be someone better off but my retirement/supplemental at age 50 (in just over a year) will be approx 75K per year. This is without including TSP or VA. Add in those and I will be well over 6 figures. Once I hit 62 I can collect SS and add to the mix.

          Will some local LEOs from places like CA make out better? Probably but overall the feral pension is not bad when you have the right position. If you are a non LEO at a lower graded position then things will not be so good in your golden years.

      • #35
        Originally posted by Calitown View Post

        This argument only really applies to states like CA which has a better retirement percentage and no cap on their high 3's. I know former CA correction officers making more from their retirement then when they were actually working...A lot of them take home 7K+ a month doing jack ****.
        I had no cap on my high-3, made good money, my OT counted towards my retirement, and I ended up with a retirement pension MUCH better than the federal retirement pensions I'm reading about in this thread. My last day on the road was at age 55, and I'll never have to work again.
        Last edited by Aidokea; 09-06-2022, 07:25 PM.

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        • #36
          Originally posted by scotty_appleton814 View Post
          I don't think anyone has mentioned this. But don't feds have free healthcare or at least affordable healthcare in retirement? At least around where I am at in the suburbs of Chicago, when it comes to healthcare us newer LEOs are on our own when it comes to healthcare. I know a guy who just retired and his pension alone is somewhere around $70k, but he pays around $2200/month to keep his family on the city insurance because he has that option. If I had the choice between that and a pension at about $55k with decent priced healthcare, I am taking choice 2 all day and twice on Sunday. Personally I am ok when it come to healthcare in retirement due to VA....but when I retire at 55 I will have the wife to worry about.

          It's great that people are trying to line dollars up for retirement, but this copper right here who is about 5 years into a 28 year career is thinking about healthcare. As mentioned earlier, I can't rely on Social Security because the gov is going to make that go away to pay for these tax cuts (at least thats my thoughts). So my question is, what do you other young(er) LEOs plan on doing for healthcare?
          $2200 a month!? Insane. I pay $10.47 a month for my family plan. This includes me and my wife for as long as I live. I'm glad I stayed with the NYPD. I had to double check my quarterly statement to verify that.

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          • #37
            I would say a 20 year LEO pension with FERS supplement is close to 50%. The next pay is over 50% since no longer paying SS, pension contributions and often no state tax. Another thing to I consider is fed LEO pensions get COLA every year after first year of retirement. Many state pensions are fixed. For someone who retired at 50 from a fed agency vs state/local, that COLA can add up to quite a bit over next 10 years.

            Comment


            • #38
              Originally posted by BNWS View Post

              $2200 a month!? Insane. I pay $10.47 a month for my family plan. This includes me and my wife for as long as I live. I'm glad I stayed with the NYPD. I had to double check my quarterly statement to verify that.
              I get free medical for life. It actually covers most of my wife's medical too.

              Comment


              • Exbpa340
                Exbpa340 commented
                Editing a comment
                You appear to have gotten the golden parachute of LEO retirements. Doesn’t seem to be the norm for most.

              • scotty_appleton814
                scotty_appleton814 commented
                Editing a comment
                I thought I've heard you mention in these threads somewhere that you had a medical retirement. Most medical or disability retirements lead to insurance benefits being a part of the package.

                There are some big PDs that offer insurance in retirement, but that is far from the norm.

              • Aidokea
                Aidokea commented
                Editing a comment
                My medical was part of regular retirement too. I had it even before my retirement due to an injury in the line of duty was finalized.

            • #39
              Originally posted by ICEMAN550 View Post
              I would say a 20 year LEO pension with FERS supplement is close to 50%. The next pay is over 50% since no longer paying SS, pension contributions and often no state tax. Another thing to I consider is fed LEO pensions get COLA every year after first year of retirement. Many state pensions are fixed. For someone who retired at 50 from a fed agency vs state/local, that COLA can add up to quite a bit over next 10 years.
              I get a percentage-based raise every year too.

              Comment


              • #40
                Originally posted by Aidokea View Post

                I get a percentage-based raise every year too.
                Just out of curiosity when did you retire? Does the agency you worked for still offer the same benefits? If so, can you direct me that way?

                Comment


                • Aidokea
                  Aidokea commented
                  Editing a comment
                  I retired late in 2019, although it took another year for my injury in the line of duty retirement to be finalized.

                  No, they do not still offer the same benefits. People hired just a few years after me, have to work 5 years longer, for 20% less, and their OT doesn't count towards their pension calculations. I don't know if they get free medical or not- I suspect not.
                  Last edited by Aidokea; 09-07-2022, 08:19 AM.

              • #41
                Too many people dont factor in the health care benefits. I have a family member with a serious illness. I have statements for procedures, operations, hospitaliations, treatments well into the hundreds of thousands of dollars. The only thing I've had to pay so far is co-payments thay only run into the hundreds maybe a thousand or so.
                The NYPD is a dysfunctional agency but New York City benefits are great. I urge young people to look at the whole package when choosing a job. I never expected my family to be in the position it's in at this age but my medical benefits are "payng off" without destroyng me financially.
                Last edited by BNWS; 09-07-2022, 08:17 AM.

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