Federal Retirees Need To Tighten Belts While Current Employees Expect To See Pay Increases

Article Excerpt: "...Later this fall, the Federal Employees Health Benefit Program (FEHBP) will announce health insurance premium increases for 2017. It is expected that premiums could jump due to medical inflation, which is currently triple the overall inflation rate. Total health care spending growth is expected to average 5.8 percent annually over 2015-2025, according to a report just published by the Centers for Medicare & Medicaid Services’ (CMS) Office of the Actuary (OACT). All of these issues, including Medicare Part B premium increases..."

Resource: www.fedsmith.com

A Retirement-Savings Tip for Clients Who Are Federal Employees

Article Excerpt: "...Those who have worked for the government since before 1984 are covered by the Civil Service Retirement System, or CSRS. This system grants enrollees a pension, but it also offers the little-known VCP. With a VCP, employees can set aside up to 10% of their lifetime earnings in a fund designed to operate as a supplement to their pension. Contributions are made with after-tax dollars, and tax on the earnings is deferred..."

Resource: www.wsj.com