OPM Officials Tout Agency’s Transformation Under Biden

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OPM Officials Tout Agency’s Transformation Under Biden
Leaders at the federal government’s dedicated HR agency said the organization has come a long way since being targeted for elimination by the first Trump administration.
Just six years removed from an unsuccessful bid to break up the federal government’s dedicated HR agency, officials at the Office of Personnel Management are touting the agency’s transformation during the Biden administration. Follow link to read more from Government Executive. https://www.govexec.com/…/opm-officials-tout…/402180/

This 401(K) Change Could Maximize Your Savings

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This 401(K) Change Could Maximize Your Savings

 Source: NewsNation 

  • New contribution limit for those 60 to 63 years old is $11,250
  • The 2025 change increased the limit by $3,750
  • If you exceed the contribution limit, you will be double-taxed

A change in 401(k) plans takes effect this year, which means some people who save in their retirement plans could maximize their savings.

The change — which applies to 401(k)s as well as 403(b)s, governmental 457(b) plans and the federal government’s Thrift Savings Plan — is a result of the Secure 2.0 tax law passed in 2022. It’s meant to give those who are approaching retirement age an opportunity to save more money. Follow link to read more. https://www.newsnationnow.com/business/your-money/contribution-limit-increase-401k/

OPM Retirement Center 

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OPM Retirement Center 

Do You Know About the OPM New Retirement Resources? 

OPM is here to help you transition from serving the American people to enjoying your retirement. These links are useful to new and existing retirees throughout their retirement journey.

Explore the Retirement Quick Guide

Retiring Soon?

Tax Help for Annuitants

 Follow link to read more about the new retirement resource center. https://www.opm.gov/retirement-center/

 

The GPO-WEP Repeal Bill

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The GPO-WEP Repeal Bill

The “windfall elimination provision” affects how the amount of your retirement or disability benefits is calculated if you receive a pension from work where Social Security taxes were not taken out of your pay. A modified formula is used to calculate your benefit amount, resulting in a lower Social Security benefit.

The GPO-WEP Repeal Bill has been signed into law, marking a significant development for those affected by the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). With the bill now in effect, the process for retroactive payments is set to begin. This legislation aims to provide fairer Social Security benefits to individuals who have contributed to pension plans while working in public service jobs. As details unfold, beneficiaries will be looking forward to the adjustments and payments that will be coming their way.

How Could Federal Employee Retirement be Affected as the Trump Administration Assumes Power

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How Could Federal Employee Retirement be Affected as the Trump Administration Assumes Power

The transition of power to the Trump Administration raised several questions regarding federal employee retirement benefits. Changes could potentially stem from policy shifts aimed at reforming government spending and programs. Here are some key considerations:

  1. Proposed Reforms: The Trump Administration expressed support for changing retirement plans for federal employees, potentially moving away from traditional pension plans towards more defined contribution plans, akin to 401(k)s. This could affect future federal employees’ retirement security.
  1. Budget Cuts: There was ongoing discussion about reducing the federal budget, which might include cuts to retirement and health benefits. Such cuts could impact the overall retirement package for federal employees, alongside other benefits.
  1. Legislative Changes: Changes in Congress might lead to new laws affecting federal retirement systems. For example, proposals to increase employee contributions to the Federal Employees Retirement System (FERS) or altering cost-of-living adjustments for pensions could emerge.
  1. Impact on Current Employees vs. New Hires: Any adjustments might primarily target new employees rather than those already in the system. This would create a two-tier system where current employees retain their benefits while new hires face different terms.
  1. Political Climate: The partisan divide in Congress could influence the likelihood and extent of changes to retirement benefits. Depending on the composition of Congress, some proposed reforms may face significant pushbacks.
  1. Public Reaction: Changes to federal retirement benefits could provoke backlash from federal employee unions and advocacy groups, potentially influencing the political discourse and leading to negotiations or compromises. Overall, while the Trump Administration indicated an interest in reforming federal employee retirement benefits, the actual impact would depend on various political, economic, and legislative developments. Staying informed about proposed measures and their implications is essential for current and future federal employees.