"Two years of pay freezes and no pension adjustments haven't made federal employees and retirees very happy, but they have had one benefit: eliminating part of the retirement systems' unfunded liabilities.
The Federal Employees Retirement System at one point was predicted to be about $9.7 billion in the red. But the Office of Personnel Management on Oct. 7 told Federal Times that due to freezes in pay and cost-of-living adjustments, FERS has not only eliminated its unfunded liability, but is now projected to be in surplus for 2011. This is because the cost of future pension payments will be lower than originally expected.
The older Civil Service Retirement System is still carrying a massive unfunded liability, however, of $663 billion when fiscal 2010 began".............READ MORE
No comments:
Post a Comment