First Look at 2018 Pay Raises, TSP Continues to Grow
Rep. Gerry Connolly, D-Va., introduced the Federal Adjustment of Income Rates (FAIR) Act recently which would give civilians a two percent adjustment to their base pay, and a 1.2 percent average increase to their locality pay.
This combined 3.2 percent raise is less than the 5.3 percent he asked for last year, but more than the 2.1 percent combined increase feds in fact received last year thanks to a last-minute increase from then-President Obama.
Despite comments from White House Press Secretary Sean Spicer that the federal employees’ compensation package is no longer sensible, feds won’t know how President Trump view the topic until he releases his fiscal 2018 budget request. The request, which expected to call for substantial cuts to many civilian agencies, will likely be unveiled in the next few weeks in draft form.
“Federal employee health and retirement benefits continue to be based on antiquated assumptions and require a level of generosity long since abandoned by most of the private sector,” Spicer said. “Those costs are unsustainable for the federal government, just as they are proving to be unsustainable for state and local governments with similar health and retirement packages.”
As for federal employee retirement investments in the Thrift Savings Plan, the funds saw another strong month of growth in January, after finishing out December 2016 on a high note.
More good news for TSP participants came Wednesday when it was also announced that an issue causing form processing delays was resolved.
As for military service members, the TSP will now figure permanently into a new blended retirement system for military service members. For more information, read the memo from the Pentagon.
Posted in General News