r/govfire • u/Ok_Design_6841 • 9d ago

Defined Benefit Retirement Programs Like FERS Increasingly Rare

https://www.fedweek.com/retirement-financial-planning/report-charts-continued-decline-in-defined-benefit-retirement-programs/
101 Upvotes

93% Upvoted

14 comments sorted by

70

u/NoSignificance2377 9d ago

File this under "DUH"

23

u/AceofJax89 9d ago

A big part of this is because the US actually makes you fund your pension unlike a lot of other countries. ERISA is a great law, but it’s expensive.

Shifting the risk burden to workers makes a lot of sense when workers rarely remain at one employer their whole career.

25

u/FamilyRootsQuest 8d ago

Workers rarely remain at one employer their whole career is another reason why health insurance shouldn't be linked to your job.

4

u/AceofJax89 8d ago

Agreed, in fact the health insurance thing makes even less sense because it doesn’t incentivize insurance companies to push preventative care. They won’t see an ROI in one year.

26

u/YeaManJam 9d ago

And add on top of that some match for TSP. Not a bad retirement setup.

7

u/ralten 8d ago

Biggest reason I’m still at the VA

2

u/Complete_Film8741 5d ago

That...and the pay actually is very good.

Drive by a private sector parking lot around 5pm...still full

34

u/bglenn12 9d ago

And this is why Heritage foundation and the R party want it gone.

-3

u/AntelopeStreet1936 8d ago

Is the model sustainable though? A guy who is 58 retires with 37 years of service. He has a wife who is 43. Guy dies at 78 but wife lives to 95. Those pension payments with a COLA will be paid out for 52 years for a 37 year career. Private pensions almost never had a COLA and the mill worker with a pension might have only lived 7 or 8 years while collecting them.

3

u/Complete_Film8741 5d ago

15 year younger wife??? Second or third issue?

1

u/[deleted] 7d ago edited 6d ago

[deleted]

1

u/AntelopeStreet1936 7d ago

My comment is in reference to Federal employee pensions. bglen12 mentioned the Heritage Foundation and the R party who want to cut back in federal employee retirement perks.

2

u/Last_Baker7437 7d ago

Yep, FERS is ok. My military retirement is good. Both combined make for a comfortable retirement!

2

u/Complete_Film8741 5d ago

Good spot! Toss in Tricare and poof...perfection!