Blog Archives

Obama’s proposed 2014 budget: contribute more, but maybe see a pay increase

“For the third year in a row, the president’s budget blueprint disproportionately takes aim at federal employees in an effort to balance the budget,” National Active and Retired Federal Employees Association President Joseph Beaudoin said. “Federal employees who are currently enduring a three-year pay freeze have already sacrificed $114 billion from their pocketbooks for US budget savings over the next decade. Enough is enough.” This statement is in response to President Obama’s budget...

A Checklist for New Federal Retirees

OPM receives more new retirement claims in January than any other month, because federal employees like to take advantage of accumulating a large sum of annual leave by retiring at or near the end of the “leave year.” So there are a lot of new retirees right now, which has led to a backlog in the processing of new benefits claims. Unfortunately, it can take OPM five to eight months to process your retirement application, and in the interim you may receive only partial payments. Although there isn’t much...

Federal Employee Retirement Income Versus the Tax Man

You’ve probably heard the Benjamin Franklin once said “The only certain things in life are death and taxes.” But that doesn’t tell you exactly how much you’ll pay in taxes, so how is your retirement income taxed for federal income tax purposes? Let’s take a look. Most of your CSRS or FERS pension will be taxable. Because your retirement annuity was already taxed, the payments you receive will not be taxable again. Unfortunately, you receive the annuity spread out over your life expectancy....

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