Pay Increases for Federal Retirees

The commentary of Keith unfortunately ignores the facts of the federal retirement system and basic economics.

Assuming a federal employee made $40,000 per year, his yearly contribution (7%) to the retirement system would be $2,800, which is matched by the federal government for a total of $5,600. After 30 years and at age 55, approximately $327,000 would have accumulated (assuming a conservative 4% yearly return on these contributions). That person would be entitled to a pension of 56.25% or $22,500. Again, assuming that those funds would continue to earn 4% interest, it would take 22 years before the $327,000 would be exhausted. At that point the retiree would be 77, which is approximately the average life expectancy today.

The average government worker does not receive an overly generous pension including the COLA provisions. However, those elected officials, like Keith, who receive inflated salaries and pensions that in many cases they have voted for while in office, are the true individuals receiving gross federal benefits and something needs to be done to rectify that situation.

ROBERT S. HOFFMAN

Huntington Beach