IN THE NEWS – COMING OR GOING
It is so confusing,t where is the logic. We are talking about the revolving door of Federal employees coming and going. There are mandates across agencies to reduce the number of Federal employees on the rolls. Several strategies have been offered from the threat of a RIF (Reduction-in-Force), to offering buy-outs. The mandate calls for reducing the rolls by 20% across agencies. If the rolls need to be reduced, then once again why is there the need for Phased Retirement. If there is a need for employees to leave the Federal service to reduce costs, then why expend the money, time and energy to keep those employees who might be preparing to leave government via Phased Retirement.
Initially, the Federal Government feared too many employees would retire, leaving gaps in institutional knowledge and a misalignment of staffing. The Department of Defense has taken the lead in terms of reducing the number of employees on the rolls. Some agencies are saying that too many employees are retiring and other agencies are saying that too few employees are retiring. Initially, agencies simply stressed the eligibility for retirement and didn’t get a lot of takers. Then a $25,000 buyout was offered. There were some takers but not as many as expected. The Postal Service is also dealing with how to effectively downsize with Postmasters being the hardest hit.
Many Federal employees eligible for retirement find they cannot retire from an economic perspective. That position rests with a number of Federal employees perhaps more than we want to imagine. Employees under the Civil Service Retirement System have a more lucrative pension plan particularly if they work 41 years and 11 months for regular employees. Special category employees do not have to meet the 41 year, 11 months requirement in order to realize the 80% maximum benefit. Federal employees would be more willing to retire after reaching the age and service requirements, if the Federal service would take a greater responsibility in helping such a large workforce prepare for retirement.
Times are economically hard for most Americans after teethering on the edge of a depression since 2008. The downslide probably started somewhere around 2005 and ballooned in 2008. We can see the light at the end of the tunnel and things are imporving, but there remains a steep climb to economic stability for all Americans.ly However, those Federal employees most likely to encounter not having the kind resources imagined in retirement will be individuals retiring under the Federal Employees Retirement System. It is a good step forward that new employees coming into the Federal service are automatically enrolled in the TSP. The TSP represents the largest component of the Federal Employees Retirement System. Yet, too many employees are not fully participating in the TSP by maximizing contributions. Education is key to sustaining Federal employees both financially, psychologically and emotionally in retirement. The employees must be educated about the importance and the urgency of participating in the TSP. The education must start at the beginning and not 5 years prior to retirement. If not too late, it is certainly treading dangerous waters.
While it is admittedly never too late to start preparing for your future, it is far more prudent to start early giving employees the opportunity to save more. The coming and going of Federal employees has to do with planning or the lack thereof for retirement. It is easier said than done – prepare for retirement, get your house in order. The average person is so busy just living that what is in the inevitable future is often dismissed as – I will attend to that later. Unfortunately, later will attend to itself, leaving many of us wondering how we are going to survive an estimated 20-30 years in retirement.
We continue talking about the future of Medicare and Social Security. Will the programs be around for future generations? There might be another concern that needs to be addressed and that is how strong will the Medicaid program be. Will there be enough dollars in Medicaid to take care of the countless number of people who will eventually end up on Medicaid because they cannot afford to pay for the additional services they need in old age, primarily nursing home care? As a retirement educator, I am passionate about the road ahead because I talk to so many wonderful people who have worked hard and long all of their lives and simply do not have the resources to even think about retirement.
People are busy trying to live, send children to college, help take care of children who cannot find jobs and have returned home with families to the homes of their parents. The nation is in need of something amazing – EDUCATION about real life and its consequences. Human Resources professionals need to reassess their roles and responsibilities for preparing the nation’s workforce for retirement. The task is equally as important as recruitment and hiring and perhaps even more so. We tend to hire for the most part – young, vibrant and healthy people. That is the picture we see from the windshield. The picture we see from the rear-view mirror is quite different – older faces with more measured steps and folks in greater need for health care services.
Human Resources is a service armof an organization and we need to do much more to assist employees be they in the public or private sector. Human Resources personnel would benefit the entire workforce by becoming more proactive and leading employees through a comprehensive outlook of what the work life cycle really means – from the front door to the last day you answer the call as an employee.
P. S. Always Remember to Share What You Know.
Dianna Tafazoli
