Pay (FAQ)

[DankVectorz]

So you can move up a level, and get a 6% pay raise but still take a paycut?

Hell my buddy went from a 7 in a very low cost of living area to an 11 in a very high cost of living, high tax area and pretty much took a pay cut in take home pay.

 

[Highinthesky]

Is going from a 10 to a 12 8% also?

 

[Stinger]

Hell my buddy went from a 7 in a very low cost of living area to an 11 in a very high cost of living, high tax area and pretty much took a pay cut in take home pay.

But the base pay is still higher. That's a little different than being at SFO (10) and transferring to ZME (12) and getting an 8% raise, but your pay+locality is higher at SFO than at ZME.

Is going from a 10 to a 12 8% also?

Yes.

 

[Move78]

Is going from a 10 to a 12 8% also?

Or the bottom of the basic band whichever is higher

 

[dsgb]

Depends on the facility levels involved and what your current pay is.
But a Level 12 CPC going to a level 4 FLM is still considered career enhancement and would be eligible for save-pay for three years. After that, they would drop to the top of the level 4 MSS2 payband.
There is all sorts of rules, so can you give a more specific example?

Thank you. ex: CPC-IT washes out from a 12 and gets picked up for a supervisor position at same level (level 7) they were a CPC at prior to the washout. Would the save pay for three years still apply and would it be a 8% increase?

 

[Move78]

Thank you. ex: CPC-IT washes out from a 12 and gets picked up for a supervisor position at same level (level 7) they were a CPC at prior to the washout. Would the save pay for three years still apply and would it be a 8% increase?

Contract says once you wash your pay is set to as if you never that 7. And your offer for a sup job is not BUE so I believe the offer can vary

 

[Stinger]

Thank you. ex: CPC-IT washes out from a 12 and gets picked up for a supervisor position at same level (level 7) they were a CPC at prior to the washout. Would the save pay for three years still apply and would it be a 8% increase?

The CPC-IT would have received half of the total raise when he was in training at the level 12. As long as he's still in the building and takes the level 7 sup job, I think pay would be calculated off his current salary. If the current pay is within the level 7 MSS2 band, he may receive a raise of 0-15%. If the current pay is above the max of the level 7 MSS2 pay, then he may receive a bonus of 1-7% instead of a raise and keep the same salary.

That's how I see it, since the pay would never have a chance to reset to the original level 7 CPC pay band.

 

[jetsetsex]

Hardship pay question. If you hardship to a new facility, I know your base pay remains the same until certification. Do you receive the new facility locality pay (lower or higher) and the new facility CIP (lower or higher)? Or is your pay exactly as it was at your old facility until you certify as if you have not left?

 

[Stinger]

You'll get the new locality when you arrive. Should be the same for CIP too.

 

[jetsetsex]

Thank you.

 

[omnivector]

I just ran the numbers. With the current FERS contribution rate I am better off skipping the entire program and pocketing the 4.4% of salary or whatever it is instead of going the pension route. Is there any way to opt out of FERS?

 

[jdatc]

I just ran the numbers. With the current FERS contribution rate I am better off skipping the entire program and pocketing the 4.4% of salary or whatever it is instead of going the pension route. Is there any way to opt out of FERS?

Retire FAQ - Can an employee opt out of FERS contributions?


No.

 

[Omm]

I just ran the numbers. With the current FERS contribution rate I am better off skipping the entire program and pocketing the 4.4% of salary or whatever it is instead of going the pension route. Is there any way to opt out of FERS?

I would like to see that math.

 

[omnivector]

I would like to see that math.

Sure, can you tell me what my pension would be using the following? I am real bad at calculating the pension thing

Assumptions -

22 years remaining for me to work until retirement. Been in the agency 3 years.

Avg salary over 25 years - $100000

Average of high 3 years - $140000

FERS contribution rate - 4.4%

 

[OKbusyB]

So this might be a dumb question, but when ranking possible locations with the pay charts on here, is the locality percentage already listed in the calculated yearly salary or do you add in the percentage to get the yearly amount?

 

[MJ]

So this might be a dumb question, but when ranking possible locations with the pay charts on here, is the locality percentage already listed in the calculated yearly salary or do you add in the percentage to get the yearly amount?

Everything is in the salary number

 

[Omm]

Investing 5k a year with for 20 years will not beat a pension unless you plan on killing yourself within 5 years of retirement.

 

[omnivector]

5k a year over 20 years at 9% (historic market rate) is 278,822.65. How long would it take a pension to bring that in?

 

[jdatc]

5k a year over 20 years at 9% (historic market rate) is 278,822.65. How long would it take a pension to bring that in?

25 years is basically a 39% pension for ATC. 20*1.7% then 5*1%. 39% of 140k is roughly 54,600 a year without accounting for any decrease in electing survivor benefits.

If you got 280k, and then withdrew at say 5% a year, as that is a normal assumption, you would be getting out only 14,000 a year. However, this would be tax free since it would just be your investment account. Does that 278k number account for possible capital gains taxes over the course of 20 years?

It’s tough to beat the pension, assuming it’s still around and not messed with. Hopefully we keep the social security supplement too.

 

[GMX]

...If you got 280k, and then withdrew at say 5% a year, as that is a normal assumption, you would be getting out only 14,000 a year. However, this would be tax free since it would just be your investment account. Does that 278k number account for possible capital gains taxes over the course of 20 years?...

I just wanted to comment on the tax free part in bold. In the Traditional TSP or Traditional 401K one's contributions are tax deferred meaning they go in before taxes, then once they start to withdraw money in retirement they pay tax on the amount in there. In the Roth TSP or Roth 401K, one's contributions go in after tax so the money grows tax free and no tax is paid when taking it out.

If it was me I'd invest a lot more than $5K per year whether it's in the Traditional or Roth TSP. I think the Roth is better but $5K is too low. If I could swing it, I'd put in the maximum the IRS allows each year. Otherwise, I'd aim for something like 15% (or more) of my gross income to the TSP. If I hit the IRS cap and wasn't at 15% yet then I'd invest the rest in mutual funds outside of the retirement plan.

If I did this for 25-30 years and got my money into the good funds then I wouldn't need the pension, it'll just be icing on the cake and if FERS becomes insolvent, well I'd be safe.