Understanding the Retirement System for Government Employees
One of the key benefits that set the US civil service apart is the retirement benefits. The Civil Service Retirement Act came into being on August 1st, 1920, to help civil service employees maintain a decent lifestyle during their golden years. Here the details of those benefits: What is FERS? The retirement system for government employees in the US is governed by the Federal Employees Retirement System (FERS) . This plan covers the retirement benefits for employees working in the legislative, executive, and judicial branches of the US federal government. This plan doesn’t cover any employees of the state or local government or military personnel. The system is based on the following three benefit sources: a. The Basic Benefit Plan b. Social Security c. Thrift Savings Plan What do the three plans mean? The basic benefit plan is a fixed amount of pension that a federal employee receives—irrespective of the amount that he or she has contributed. Federal employees ...