At Work

Federal workers still out of touch with the rest of America 

Do you feel sorry for federal workers? You know, those people with a pension, good benefits, good job security and very limited performance criteria on the job.🤢 

How do average private sector workers pay their higher premiums with no raise and no COLA? And by the way, President Obama recently changed those raises from 1.6% to 2.1%.

Many federal workers and most federal retirees have a cash-flow problem.

How do they pay higher health premiums next year with a tiny pay raise and an all-but-invisible cost of living adjustment?

White-collar federal workers, depending on where they work, are looking at a raise of between 1 percent and 1.6 percent. Feds in Houston, San Francisco, Los Angeles, Houston, Chicago and Washington-Baltimore will be on the high end of the hike, whereas those in Richmond, Louisville, Omaha and other government outposts will get the shorter end of the pay stick.

The $$$ outlook is even grimmer for retirees. Their inflation-catch up COLA in January will be less than half-of-1 percent. So small that many won’t notice it unless they compare their December 2016 annuity with the amount they get in January. To add insult to injury, many of the retirees will be hit with higher Medicare Part B payments.

The problem facing many workers and retirees, especially those at the lower end of the pay or pension scale is that premiums in the FEHBP program are going up an average of 6.1 percent. Some plans will go up higher, some lower. But the average is 6.1 percent, just over 6 percent.

So how do folks reconcile the differences in what goes up and what’s going down? Short answer: Carefully

Source: My federalretirement.com

Modest raises, insignificant pension COLA, higher health insurance premiums; sounds pretty bad 😤😤😤 until you realize that most Americans aren’t concerned about a pension COLA …because they don’t have a pension or employer-sponsored retiree health insurance. 

And about lower health care costs; well 6.1% is still more than three times general inflation not unlike in the 1980s when we thought things were bad😗

Advertisements

2 replies »

  1. Pension COLA? I wish I would get a raise in retirement for doing nothing. There are several good things about my private pension. 1) I am VERY, VERY LUCKY to have one. 2) I will never complain about not receiving a pension COLA because I’ll never get one therefore I expect nothing more in my check, just less from higher taxes. I just hope nothing happens for them to take away what was promised in my pension this late in my life.

    Like

  2. You are correct in your opinions about fed workers. Great benefits and high pay in many jobs compared to outside similar positions. My daughter works at a private convalescent facility and she would make over twice as much working at the VA for a similar job. And you correctly point out with nice pensions and healthcare benefits and great job security. I volunteer at a local VA facility and am amazed at how little work many of these ees do! Based on personal observations seems like some the VA ees don’t take the best care of our vets. Hopefully Trump will appoint a VA Secretary to improve things. Lots of luck with the bloated VA bureaucracy and the civil service challenges! I suspect we could cut the size of govt ( other than military)significantly with no impact as there is over staffing currently.

    Like

What's your opinion on this post? Readers would like your point of view.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s