federal workforce
Utility Companies Are Spreading Cheer
Federal Employees Should Protect Themselves This Holiday Season
Utility companies are warning seniors and others about the increase in scammers this time of the year. Some of our previous posts have addressed this lurking evil, but to have the utility companies spread cheer by asking customers to be wary of scammers is a very good thing amidst all of the turmoil in our country.
Dominion Power Company sent out emails to its customers explaining that they do not contact customers by phone, email, text or in person asking for confidential information and/or threatening disconnection in exchange for immediate payment in cash, pre-paid cards, or through PayPal.
Dominion even offered ways to protect seniors and other customers against scams:
If you are approached by someone in person claiming to be from Dominion, or the power company, always ask for a company-issued picture I.D. Better still, don’t even answer your door. Call the power company and ask if a representative has been sent out to your home. If not, a follow-up call should also be made to the police.
If someone calls you pretending to be a power company representative and you feel pressured to provide payment or personal information, capture the phone number and hang up.
You can also verify your account information including bill amount, by signing in to your online account. Dominion also warns that scams are not limited to impersonating a utility company. Dominion is the power company in the area where I live, but this is a warning no matter who your power company happens to be.
It is wise to take extra precaution during the holiday season and not a bad idea to do it all year.
P. S. Always Remember to Share What You Know
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Critical Ages For Federal Retirement
There are Critical Ages that Federal Employees should be aware of. These ages represent opportunities for Federal Employees who might want to maximize their retirement benefits.
Federal Employee ~~ Age 50
• Begin age-based catch-up to defined contribution plans and individual retirement accounts (IRA). Beginning with the year you reach age 50, Federal law allows you to defer a certain dollar amount per year to a qualified defined retirement plan. The catch-up amount is $5,000, indexed in $500 increments. The age-based catch-up amount for IRA contributions is $1,000.
Federal Employee ~~ Age 55
• After separation from service, you may begin withdrawing from your TSP or another qualified plan without paying a 10 percent penalty tax.
Federal Employee ~~ Age 59.5
• You may begin withdrawing from qualified retirement plans, if retired, or from an IRA without incurring the 10 percent penalty. At 59.5 Federal employees can also take an in-service distribution – rolling their TSP account balance into an IRA with a private company and giving themselves more investment options.
Federal Employee ~~ Age 62
• You can begin receiving your Social Security benefits; however, the amount may be reduced by as much as 30 percent, depending on the date of your birth.
Federal Employee ~~ Age 63.5
• The Federal Consolidated Omnibus Budget Reconciliation Act (COBRA) law makes health insurance in most employers’ group health plans available for at least 18 months after separation; however, you bear the full cost, including the portion previously paid by your employer (plus a small administrative fee). Upon age 65 and your enrollment in Medicare Part B, Federal law requires access to Medigap health insurance at standard rates. Combining COBRA and Medigap effectively ensures access to health insurance beginning at age 63.5
Federal Employee ~~ Age 65 – 67
• Depending on your date of birth, you may begin unreduced Social Security benefits at some point during this age range. Further, you may earn any amount without reducing this benefit.
Federal Employee ~~ Age 65
• You may enroll in Medicare, if eligible, and purchase Medigap insurance at standard rates. Your Medigap open enrollment period lasts for six months starting on the first day of the month in which you are 1) at least age 65 and enrolled in Medicare Part B. During this period, an insurance company cannot deny you a Medigap policy, make you wait for coverage, or charge you more for a Medigap policy because of your health.
Federal Employee ~~ Age 70
• You may begin maximum Social Security benefits, if the starting date was delayed to this age. There is no advantage to delaying benefits past this age.
Federal Employee ~~ Age 70.5
• Required minimum distributions from qualified plans, IRAs, and deferred compensation plans begin the year after you turn 70.5.
P. S. Always Remember to Share What You Know.
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Will Spending Be The Same In Retirement?
Federal Retirement Spending Habits
For Federal Employees, spending will change in retirement. Some federal retirees will spend more and some will spend less based on their individual financial situation. It is useful to note that expenses today may not be expenses tomorrow. Therefore, some projections and forecasting is needed when looking at spending in retirement.
Expenses like transportation and food costs may go down. If you don’t choose to work or even if you work part-time, you will probably not spend as much money in transportation as you did before. Your budget for clothing may also decrease. Entertainment and social activities may go up or down. Because you are retired, your social calendar may not be as busy. But, on the other hand, because you are retired, your social calendar might be completely filled because you do have more free time.
Medical Expenses and Life Insurance in Retirement
Let’s take a look at medical expenses in retirement. Those expenses will probably go up because it seems to follow that as we get older, we require more medical attention. Conversely, taxes will probably go down because you will no longer have payroll taxes for Social Security and Medicare if you don’t have earned income after retirement. For instance, someone earning $60,000 in 2009 might have paid $4,590 for Social Security and Medicare Taxes, but will pay zero dollars in retirement if there is no earned income. The tax savings could also help to replace some of the salary we will need to cover in retirement. Savings should be aggressive prior to retirement. Your cost for life insurance, FEGLI or private compay life insurance, may also decrease – you should compare your FEGLI coverage and costs again private life insurance to make sure you are getting the best deal.
There are many ways in which our expenses and income may fluctuate in our retirement years. But knowing what we know, it is prudent to aggressively save prior to retirement and even more prudent to aggressively pay down debt prior to retirement. Carrying heavy debt into retirement is a disaster waiting to happen. Reducing your debt lowers interest and increases your net worth. If you have a very high debt: income ratio you will have to spend a lot of money just paying interest.
I know you are still thinking about your vision for retirement. What about insinuating “some magic dust” into your vision —- living debt free before you reach retirement? Imagine how much bigger and fantastic your vision could be if you had no heavy debt to carry around with you. A rule of thumb is to lay out your entire debt ranking the order in which they should be paid. You pay off debt with the highest interest first and then you put off the debt with the lowest interest last until you have paid everything off.
You don’t want to pay off your mortgage unless you have a lot of disposal income because you may need the tax advantages from the mortgage payment. If I had enough money to pay off my mortgage, I would do a very careful analysis of the pros and cons before taking the next step of paying off the mortgage. Paying off a mortgage might be the right thing to do for some and not for others. Each person’s financial circumstances is uniquely different. Try living by this “mantra” – What I cannot pay for in cash, I cannot afford, mortgages aside. You will be amazed how living by this mantra will curtail spending. Decision-making strategies must always be utilized when spending your money. Sometimes credit gives us too much flight to fantasy. We all need credit, but how we handle it will be key to our retirement success.
Remember when it was assumed when one retired the mortgage would also be retired. That is not always the case now-a-day. Having to make large debt payments out of a limited retirement income can easily sour one’s financial picture in retirement. Every effort must be made to leave debt behind as you move into retirement. Having a vision and dreams for retirement has associated costs. If you pay down your debt then you will have money that is not obligated for expenses to spend the way you want. It is called your vision and dream cache. The more savvy you are at managing your finances, the better that cache will look and feel. Most retirees talk about being able to travel. That is an expense that is outside of the normal day-to-day expenses especially if the travel is extensive. So we have to be very careful in planning our trip and making sure we are comparison shopping.
P. S. Always Remember to Share What You Know.
RELATED TSP ARTICLES
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Retiring In Less Than One Year
Consider the following if your retirement plans are less than one year away.
- Is there any way that I could be indebted to my employer?
- If you have outstanding travel advances.
- Overpayment of salary that has not been resolved.
- Indebtedness for failure to return government property or for damage to government property.
- Advanced leave.
When and how do I waive my military retired pay?
If you would like to waive your military retired pay to receive credit for military service in the computation of your benefit, you can write to the Retired Pay Operations Center at least 60 days before your planned retirement. Send your waiver to:
Defense Finance and Accounting Service
U.S. Military Retirement Pay
P.O. Box 7130
London, KY 40742-7130 or you can “fax” your request to (888) 469-6559
What Is The Maximum Federal Retirement Benefit I Can Receive?
The basic civil service retirement annuity cannot exceed 80% of your high-3 average salary, excluding your unused sick leave. The 80% limitation is typically reached when you have 41 years and 11 months of service, not including accumulated sick leave.
Law Enforcement Officer (LEOs) Retirement Annuities
Law Enforcement Officers (LEOs) may under special computation provisions receive the 80% limit with fewer years of service.
Service beyond the years which provides the maximum benefit will not be used to compute your Law Enforment Officer annuity. The retirement contributions you made during those years will be automatically refunded to you with interest at the rate of three percent per year, compounded annually. You have the option of using the refund to purchase additional annuities as if the contributions and interest are voluntary contributions.
However, if you have federal civilian employment periods when you did not contribute to either or FERS, excess contributions are automatically applied toward any deposit due for those employment periods.
How do I find out if I am eligible for Medicare coverage?
It is recommended that you contact the Social Security Administration at least three months before you reach your 65th birthday to apply for Medicare Benefits. The Social Security Administration will have the records pertaining to your eligibility for Medicare coverage. If there is a problem locating your records either you or your employer can obtain a statement of your earnings by writing to:
General Services Administration
National Personnel Records Center
Civilian Personnel Records
111 Winnebago Street
St. Louis, Missouri 63118
Your request should include:
- Your name as shown on your payroll records;
- Your date of birth;
- Your Social Security Number;
- Your complete mailing address;
- The years for which earnings are needed;
- The name and location of employer for each year;
- State clearly the reason for the request;
- Affix your written signature; and,
- Write a statement declaring that all other sources of information have been exhausted.
- When should I choose my exact retirement date?
If you have not already done so, start thinking about choosing your exact retirement date. Your benefit can be estimated based on the exact date you choose. Remember OPM cannot give you the best estimate until you have actually applied for retirement.
- When should I complete my application?
You should carefully read all of the information in the application package and submit the forms. You do not need to submit a resignation letter. Your completed and signed application is equivalent to a resignation. However, if you are eligible for benefits, you should not resign with the intent of retiring at some later date. If you were to expire after separation but before filing your retirement application no life insurance, no survivor benefit and no survivor health insurance coverage would be available to your survivors. All other exit procedures required by the agency should be followed and completed.
- Should I check on my military service deposit?
Your human capital office will verify with your payroll office that the deposit to give you credit in your annuity for military service you performed after 1956 has been paid, or that arrangements have been made for complete payment before you leave the agency’s rolls.
- Should I sign up now to receive my retirement payments by direct deposit?
If your retirement records are electronically transmitted by your employer via the Data Exchange Gateway (DEG), the account information for direct deposit will be sent automatically. If this is not the case, then you must submit with your retirement package, a request to receive payments by direct deposit. A letter can be submitted or SF 1199A with the application. SF 1199A can be obtained from your financial institution.
Direct deposit is generally not available to persons with a permanent address outside of the United States, except for Canada. Persons with permanent addresses outside the United States may request direct deposit to a financial institution in the United States.
P. S. Always Remember to Share What You Know.
TSP ARTICLES
Thrift Savings Plan (TSP) Withdrawal Options
For Postal Employees – LiteBlue and the TSP
Federal and Postal Employees – Choosing a Financial Professional
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Federal Retirement Benefit Analysis
Budgeting And Federal Employee Financial Plans
For Federal and Postal Employees, building a budget carries equal weight to building a financial plan.
Envision constructing a house – The financial plan is the front door to your dwelling and the budget is the back door, both are necessary if you expect to be safe and secure.
Having a sound financial plan and a budget are paramount to a successful retirement future. Having a budget allows us to direct money towards goals we establish in our financial plan. The budget acts like a navigation system, it directs our course, but only if we stick to it. Sounds familiar, a financial plan only works if you follow it and a budget is only a good navigator if you heed the directions given. A budget, like a financial plan is not etched in stone, but is meant to be flexible and SMART.
Primary Elements of a Federal Employee Retirement Budget
There are two primary elements to a Federal Employee retirement budget – income and expenses. Income may be derived from various sources: employment, interests from savings and investments. Expenses are summed up in our wants and needs. There must always be a very careful balancing act between income and expenses. When expenses become more than income, we run the risk of running out of money and that is exactly what we don’t want to do in retirement or at any other time for that matter. The budget helps us to rein in spending and make wise choices that will keep our income and expenses in harmony.
As we approach retirement it will become even more critical that we recognize what our spending habits are and employ definite strategies to ensure they fit into our financial plan and are guided by a sound budget.
When we spend money it is generally for expenses that are either fixed, variable or occasional. Most of us spend money and then think about saving what ever is left over. When we mentioned earlier the concept of PYF or pay yourself first, it is meant to do exactly that. Pay yourself first in the form of savings right off the top of your income. It need not be a particularly large amount, but it must be defined and consistent. Savings must be entered in the budget as a part of “fixed” expenses. If we treat “savings” as a variable or occasional expense, it is very clear that we will be met with significant challenges in meeting our financial goals in the future.
Federal Employee Retirement Budget
Creating a budget is easy enough. We need only list all income against all expenses to see where we stand. If expenses outweigh income, then we need to make some immediate adjustments. Most of us simply run out of money or find that we don’t have enough, without outlining everything in a budget so that we can actually see how we are spending our money. SMART budgets must be updated regulary throughout our lives. Remember as events change in our lives, we will very necessarily have to adjust our budget, our financial goals and the way we spend money.
There are many software programs that will allow you to monitor your budget and to stay on track by keeping your expenses and income in a spreadsheet. A budget is your spending plan about what you can do with your money. Warren Buffet knows exactly how much money is coming in, how much will be spent on bills and day-to-day expenses and how much to set aside for meeting large financial goals. People who are SMART with their money, no matter how much or how little, know where their money goes because they have a plan.
Once you build a budget you will know that you have mastered the objective of creating a budget when your budget is balanced to show that total income equals total expenses and that your budget supports each of your financial goals. It’s your money. You have worked hard for it and now you must make it work SMART for you!
P. S. Always Remember to Share What You Know,
LiteBlue Related Pages
LiteBlue; Online Access to More Than Just Your USPS Earnings Statement
What Postal Employees Should Do On LiteBlue Before Retirement
Changing Your LiteBlue / PostalEase Password Through ssp.USPS.gov
eRetire for Postal Employees – Retirement Applications on LiteBlue
Buy-Outs Are On The Rise
Mandatory Reduction of Workforce
There has been a lot of conversation around the Federal and Private sectors about strategies to reduce payroll by cutting down the number of employees on the rolls. The Federal sector has a mandate to reduce the rolls by 20% and a number of incentives have been put on the table to accomplish that goal. The Department of Defense has taken the lead in responding to the President’s mandate. The number of employees expected to sign on for retirement did not happen because too many Federal employees are ill-prepared to retire.
Federal Employee Buy-Outs and Incentives
The Post Office started out by asking individuals eligible to retire to do so. That didn’t get much leverage therefore a monetary incentive of $25,000 was offered to sweeten the pie. It got a little mileage but not enough to make the kind of dent the Federal Government is so desperately seeking. There is a new bird afloat that other organizations might be interested in if they can afford it. A few years back Continental and United Airlines merged. There were so many differences between the airlines that it has been difficult to impossible to come up with a contract to the mutual benefit of both sides. Continental had a pension plan, United did not – representing the biggest nut to crack.
If the airlines are going to merge into one entity then they must have the appearance of parity and equity. That is easier said than done. The airline could have a conversation with the Feds. Afterall, thus the birth of the Federal Employees Retirement System out of the old Civil Service Retirement System. Bring in the new and work towards phasing out the old. It is not easy, but the Office of Personnel Management (OPM) proved that it can be done.
Continental and United have set an agenda to shave 1,000 workers from both airlines. The initial push to ask eligible retirees to exercise that right without an incentive fell on deaf ears, the same response from Federal workers. The management at Continental and United have pulled out the big guns. The Airline is offering $100,000 for retirement eligible individuals to leave the rolls. As of this writing, there is a whole lot of conversation, but not enough takers.
A recent conversation with an employee of Continental said he was simply not ready to retire and that he was not interested in the $100,000 although it sounds good and is the biggest incentive the Airline has offered, he is declining for more time in the sky.
Individuals who have put in years of service are often conflicted in two ways about retirement. First, many are not financially able to retire and second, work has become the largest part of their lives. Cutting the umbilical cord from work to retirement is a process where early planning is the key remedy.
P. S. Always Remember to Share What You Know.
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Phased Retirement Questions – Who is Responsible?
Who Is Responsible for Making it Work?
During the public comments period for phased retirement there were a number of questions and comments that surfaced either from agencies, unions or individuals. It might add to our information to discuss a few of them and also use the questions and comments as a teachable moment.
Phased Retirement and the TSP
One question was about the Thrift Savings Plan (TSP). Will those employees participating in phased retirement still be able to participate in the TSP? The program is designed to allow phased retirement participants to work part-time and draw a part-time federal retirement annuity giving them perhaps the best of both worlds – work and retirement. Since the TSP administered by the Thrift Savings Investment Board is a defined contributions plan where contributions are made via payroll deduction, then if you are working and getting a paycheck, you can participate in the TSP. The individuals are not fully retired as in receiving a total annuity carrying the distinction of annuitant, where there are no payroll deductions. Therefore, these individuals still qualify to participate in the TSP.
Phased Retirement and Taxes
Another question came up about taxes and how OPM would look at taxes. The Office of Personnel Management in its role as custodian of all federal human capital is statutorily required to provide the Internal Revenue Service with such relevant information as requested. However, the Office of Personnel Management has no jurisdiction over administering the tax code, that matter falls completely within the auspices of the Internal Revenue Service. How the IRS manages phased retirement regarding the taxation of Social Security or a Federal Annuity has yet to be seen.
Phased Retirement – Overtime and Holidays
Then there was the concern about overtime and holidays for part-time employees or phased retirement participants. According to the Fair Labor Standards Act (FLSA) those persons falling within the category of non-exempt employees receive overtime when they have worked more than 8 hours per days or more than 40 hours in a work-week. The same would apply for compensatory time. Since the phased retirement participants are scheduled to work part-time then this factor should not impact them. If, however the situation arises, the same guidelines would be followed in accordance with FLSA. Certain categories of employees, particularly those designated as supervisors and managers are exempt from the requirements of FLSA.
If a part-time employee is scheduled to work on a day that falls on a holiday, then the day is also a holiday for the employee. If the employee works 4 hours per day, then 4 hours would serve as holiday pay. If the holiday falls on a nonworking day then the employee is not entitled to an in lieu of holiday.
The Office of Personnel Management is tasked with handling all human resource and human capital issues for the United States Government, all other matters fall within the respective agencies.
P. S. Always Remember to Share What You Know.
OTHER PHASED RETIREMENT RELATED ARTICLES
Explanation of Phased Retirement
Phased Retirement – Closing the Knowledge Gap
Phased Retirement – Participation
FERS and CSRS – Phased Retirement
CSRS and FERS Phased Retirement Eligibility
Someone asked whether both CSRS and FERS employees could participate in the phased retirement program. Yes they can, all things being equal. OPM was required to publish regulations and guidelines implementing phased retirement both under the Civil Service Retirement System (CSRS) and the Federal Employees’ Retirement System (FERS). Employees who participate in phased retirement are able to retire fully after being a part of phased retirement.
Currently OPM’s regulations state that participants work half time and receive a half-time annuity. Those percentages may change in the future according to OPM as program needs shift to align with the challenges of the 21st century. One of the strongest parts of the phased retirement program is that what might be appropriate for one agency might not be appropriate for another in terms of implementation. The agencies have a rather wide-expanse from which to customize their programs within the guidelines and parameters set by OPM.
Because retirement is always a sensitive subject and one that requires much thought and planning; entering into an agreement with your agency to participate in phased retirement must be given careful consideration. Since phased retirement is a new program, a new tool, it does not negate the primary action of taking good care of yourself by educating yourself. The more you know about anything, a more informed decision you will be able to make.
Phased retirement is certainly the new kid on the block and there are many lingering questions about what it means for employees participating on a number of fronts. What appears most important is the definition and purpose of phased retirement. It is no secret that every organization would be wise to protect, preserve and pass on institutional knowledge. That is exactly what the driving force is behind OPM’s push to create this new program or what they term a human resources tool that will protect the federal government’s institutional knowledge. Therefore, the program has little or nothing to do with anything else.
The Federal Government like many organizations realized on the back end that the passing on of institutional knowledge is a huge, irreplaceable component of any sound succession management plan. We are not going to stand in line to throw rocks at the Federal Government because I can assure you that many other organizations are guilty of a similar infraction or oversight. The difference is that the Federal Government just so happens to be the largest employer in the world. When an entity carries that distinction, operations might have to be carried out with greater efficiency. Now that OPM has implemented phased retirement which is also a work in progress, it hopefully will be a staunch reminder that the knowledge you gain in the work place, the skills you acquire in order to accomplish the duties and responsibilities of a position; be you a part of the federal, private, academic or non-profit world, do not belong to you, but to the institution. You don’t hold a patent on that information in this regard and in the end it does not make you indispensable. What it does create is a culture of costly inefficiency.
In actuality the world should have never become acquainted with the term ‘phased retirement‘ from the Federal Government particularly for the purpose for which it was created.
P. S. Always Remember to Share What You Know.
OTHER PHASED RETIREMENT RELATED ARTICLES
Explanation of Phased Retirement
Phased Retirement – Closing the Knowledge Gap
Phased Retirement – Participation
Is Living Longer a Good Thing
I suppose the question is answered best by who is answering it. I have one friend who is 85 and counting and that gentleman who mentored me many years ago in the Federal service is just as mentally alert as he was when I first met him. By the time I met Mr. Brown he had already retired twice and was heading towards his third federal retirement. He was quite a savvy fellow who knew the mysteries of the stock market. I often sat as a very attentive student during lunch breaks to learn everything I could from him. He not only introduced me to the stock market and how money and resources really worked, he introduced me to something called -humanity in the workplace. As he gave me the benefit of his wisdom, I knew our meeting was meant to be because he was further underscoring the lessons that had been passed on to me from my mother.
Mr. Brown and I now make appointments to have our phone visits. They are long, engaging, informative, spiritual and funny. He lost his wife some 17 years ago and I hope my friendship helped him to weather that most difficult storm. The Browns were married for more than 4 decades. Mr. Brown visited his wife’s resting place at Arlington National Cemetery everyday for one year and then the visits never stopped but became less frequent as he knew life had to continue. The Browns had one wonderful daughter. I never stop thanking her for sharing her Dad with me.
Mr. Brown comes from a family of long livers on his maternal side. His mother was 98 when she passed away. His father died young of TB not reaching the age of 40. Mr. Brown has been my personal teacher through the Korean War and World War II. I am a history buff and absolutely cherish hearing history from a man who lived it. Mr. Brown is up on all the local and world news. He has no signs of his mental acumen failing him. Yet, I continue to read more and more about younger people who are being stricken by the dreaded Alzheimer’s disease.
Alzheimer’s disease is a form of Dementia and generally strikes persons age 65 and older. As the nation gets older and older and is living some 30 years beyond retirement, more and more individuals are facing the disease. Quite recently, we heard about the young restaurateur and former model, Bea Smith, at age 63 now with advanced Alzheimer’s. Rushern Baker’s, (County Executive for Prince George’s County Maryland) wife has been diagnosed with Alzheimer’s. Mrs. Baker is only 53 years old.
As federal retirees look forward to living longer in retirement, they also face the illnesses that often come with growing older. Staying active, eating right, being engaged with a zest for learning new things is often regarded as steps to delay the onset of Alzheimer’s or even avoid it. Research is being done to study Alzheimer’s everyday. Genetics may have a lot to do with what happens in our lives, but Dr. Oz believes that lifestyle outweighs genetics. By the way, Mr. Brown still walks 3-4 miles a day on his walker and he still drives to his appointments and outings. His back and legs are not as strong as they once were, when I was forced to break into a trot to keep pace with this disciplined Air Force gentleman.
May we all have the staying power of Mr. Brown.
P. S. Always Remember to Share What You Know
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Federal Retirees Are Leaving the U.S. for Central America
The American economy is not improving for many citizens, including federal retirees. Because affordability is a key phenomenon for many retirees, they choose different paths to living out their retirement years. Many retirees are looking towards Central America for homes and lifestyles they can afford. They are finding living expenses are just too high to maintain the kind of lifestyle they desire to live in their retirement years.
Central American countries, like Ecuador still place them within reach of their families back in America within a day’s flight. Retirees who have moved to Ecuador report paying on average $400 for a 3 bedroom apartment that might cost them $900 or more per month in some parts of the United States. They also report spending much less for health care expenses and can spend the equivalent of $2.00 per person on a high-end lunch. These attractive economic features have many retirees looking to other shores to enjoy their fixed-income status in retirement.
Retirees report missing their friends and families when living abroad, but are comforted knowing an airplane reservation will help them make that connection relatively easy. With retirees leaving the United States, will that be yet another drain on the American economy? Dollars that could be spent in the USA are being spent other places not benefiting the U.S. economy at all. It is time that the USA started looking into ways to not only retain workers in the workforce but retain its citizens in the country after retirement.
The statement alone that retirees are leaving the U.S. for other shores that offer a more affordable lifestyle on a fixed income is more than food for thought. The US should be strategizing and finding solution-driven ways to create more home affordability for American citizens. Why should an American citizen have to leave the country of his/her birth to find affordability? If leaving the country is simply a matter of choice, then that it one thing. However, to leave because you cannot afford to live in your own country is an eye-opener and a call to action that something needs to be done without delay.
After spending 30 to 40 years on a job, the expectation should be that one can choose to live out the last years in comfort and relative security. It is terribly disturbing that a move is made because of the inability to afford the basic needs of life – a place to live, food to eat, transportation, medical care and a little something left over to do whatever you will. If that cannot be accomplished, then why spend the majority of your life working only to find out that after retirement you must hitch up your wagon and stake out a new place because your retirement money can’t pay for you stay within U.S.. borders.
We’ve got a lot of work to do to make America work for its people. As you age and have paid your dues by working long and hard, you should not have to bare the burden of looking for a place you can afford to live in. Places in the States designed for senior living are basically for high-income individuals. Let’s not forget about low-medium-high. There are people, retirees in every category. Let’s work towards accommodating them.
P. S. Always Remember to Share What You Know.
Recommended Articles
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Invest in the Youth of America
The economy is still struggling to pull itself out of the tank of sinking recovery. Jobs are not plentiful enough to employ the population of Americans in need of work. Too many jobs have been shifted overseas as a cost-savings strategy for large corporations. Each time one job is transported overseas, one more American is out of a job. Many of the young people who are trained to fulfill digital positions have been trained in the United States. The talents and skills they acquire are taken back to their home countries. Many of those young people’s education is paid for by U.S. concerns. However, those same opportunities are not available for bona fide citizens of the United States.
There is clear evidence that the American workforce is in need of digital expertise. It is also clear that the United States has an abundance of young people interested in everything digital. The next step would be to identify those students, pay for their education, train them and refuel the pipeline with talented individuals ready to advance the United States to compete on the world station in digital technology. It is as if the United States is buying into a stereotype that U. S. students are not prepared to be digital technologists. The notion is simply far fetched. Three-year olds know how to Google a game they want to play or a video they want to watch on the computer. Three-year olds know how to pull down the print menu and stroll over to print and wait for the appearance of a picture they want to color. I asked one three-year old when I witnessed this, “Can you read.” She said, “Sure, can you?” Then she asked me if I knew what an impostor was. I didn’t know where she was going with that so I simply left that three-year old to her computer.
Young people, just as that three-year old, are born into a digital world. They come out of the womb knowing about technology. It is easy to get these young people up and ready because they have a kind of thinking and innate preparedness individuals could not imagine even 30 years ago. It is time to invest in American youths. It is time to pay for their education and not have them saddled with horrendous student loan debt. We have the talent within U.S. borders to fuel the pipeline for the next generation of leaders within the Federal Government and Industry.
P. S. Always Remember to Share What You Know.
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The Aging Federal Workforce
The Federal Workforce is losing a tremendous number of employees to retirement. The Federal workforce is aging and leaving in record numbers. The Federal Government has not had great success in recruiting younger people to the workforce. The Federal Government has many self-imposed barriers to recruiting and retaining younger workers, future leaders of the Federal workforce.
It is reported that only 7% of the Federal workforce is under the age of 30 as of 2013 as compared to 20% in 1975. Workers under 30 in the private sector was estimated at 25% in 2013. The Federal Government is losing the ability to fuel the pipeline with young workers talented in technology implementation. The world is becoming increasingly digital with a need for talent to fill the digital divide. It is in indictment of the American workforce and the education system that technology work would be farmed out to countries outside of the United States. Farming the work out provides employment opportunities for young adults in those countries, denying opportunities for young Americans.
There is certainly not a deficit of young people absolutely skilled in technology and automation. Perhaps the Federal Government should have an all-out-cry to young people engaged in automation. If recruitment means providing education and training to bring the employee up to par, then it should be done.
The Government has a long, drawn-out convoluted process of hiring even through their automated systems. By the time the process of hiring comes through, talent is no longer available. On average, it takes the Federal Government 6 months or longer to bring on a new hire. Often times, when new hires are brought on board, the job offer may be rescinded because of hiring errors due to no fault of the new hire. Many times the hiring error is in indeed a hiring error which by law should be rectified with no adverse impact on the new hire. Often these hiring errors are motivated by internal politics. A person inside of the agent might have wanted the position and was not selected. When the new hire is selected, the environment is made uncomfortable and hiring error is used as the culprit.
When a hiring error is made, like the unintentional selection of a non-Vet over a Vet, then the non-Vet should not be removed from the position. The Vet who was passed over should be given priority consideration for the next position or if a similar position is open within the agency, the Vet should occupy that position. There are many horror stories told about the conduct of Federal personnel offices and selection committees that cause many young people to turn away from the process.
If the Federal Government wants to increase the pipeline with younger workers poised to become leaders, then the hiring process must be transparent, consistent, uncomplicated with immediate job placement. Individuals looking for employment do not want to wait one to two years before getting an interview and still not be selected. The lengthy process of hiring employees and engaging them once they are hired, is one of the barriers to bringing talent to the Federal Government.
P. S. Always Remember to Share What You Know.
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Explanation of Phased Retirement
