Pension and Benefits for Federal Employees
The government provides a comprehensive package of benefits and retirement to all its employees. Their benefits include paid leaves, insurance funding, and traditional pensions.
For Employees Hired After January 1, 1987
For federal employees hired on or after January 1, 1987, the Federal Employees Retirement System has three parts. Under this system, federal employees are eligible to receive benefits from Social Security. Employees are also given access to a federal pension which is based on the length of their service and their highest income while working for the government. The retirement system also includes a Thrift Savings Plan that is similar to a 401(k) which anyone can have on their own or through an employer. The government pays one percent of pay for every covered employee and it also matches its worker contributions.
For Employees Hired On or Before 1986
The Civil Service Retirement System is offered to employees who were hired on or before the end of 1986. Those who are covered by the civil service retirement system do not participate in Social Security. They neither contribute nor receive any benefits from it. For these workers, the money that usually goes to Social Security is used as a pension contribution. When they retire, the pension they get is more generous than the pension under the Federal Employees Retirement System.
Civilian Benefits
Civilian government employees receive a comprehensive package of benefits which includes employer-based health, dental and vision insurance. They also get life and long-term care insurance as well as a flexible spending account.
Federal employees also receive paid leaves. Workers with one to three years of service get 13 days, those with three to 15 years get 20 days, and those with 15 years of service or more get 26 days. Federal employees also get 10 paid holidays every year.
Military Pensions
Under the military pension system, service members get annual payments that are based on the length of their service and their military pay. Typically, service members become eligible for a military pension after 20 years of service. This means that if you enlist at the age of 18, you can start receiving your pension at 38 years old.
Military Benefits
Members of the military receive paid leaves, life insurance, and health care coverage. The government also includes special benefits for surviving family members in the event that a service member dies while serving the country.
Service members receive discounts when shopping at commissaries and exchanges. They also also get allowances for food and off-base housing. Service members and their immediate families are even given the opportunity to fly for free in open spaces on military flights.
Great Things About Government Retirement
One of the most stable lines of work is public service. Aside from stability, the government also offers great retirement benefits to their employees.
These are just some of the advantages of being a federal employee:
- The pensions and Social Security that public servants get when they retire is more than enough for them to live a comfortable life. Their savings will also be sufficient to cover any of their unplanned expenses.
- Health insurance is a valuable benefit that many government retirement systems offer. This means federal employees can retire without having to spend any money on health insurance.
- When federal employees retire, they receive annuities each month for the duration of their lives. This lifetime income can be very beneficial for retirement planning purposes because retirees would know how much they will receive every month for the rest of their lives.
