Happy New Year!  It’s time to make some predictions for 2014 that affect Federal Employees and Veterans.

1. Feds, You’ll get your 1% raise, (if you’re still working). 

2. Then again, maybe you won’t.  
There’s no guarantee there won’t be another round of furloughs this year once the Defense Service Chiefs figure out they are going to run out of ‘Gas Money’ by August.

Sen. Murray and Rep. Ryan recently inked a compromise to avert another government shutdown.  Here’s how the Deal affects Federal Employees and Veterans.

Short answer:  No effect on benefits for Active Military and Active Feds, minor effect on Retired NG/Reserves, much effect on Active Duty Retired Veterans, Retired Feds, and Future Feds.

This is what showed up on my RSS newsreader this week….

 Notice a recurring theme here?  Federal Employee Morale stinks.   This is because overall Federal Employee compensation is shrinking while workloads are expanding (due to hiring freezes).  Pay, benefits, and the FERS Annuity itself are once again bargaining chips on the table.

No wonder 12,000 Feds bailed out in October.

Two Navy commands I met with last month were both mentally preparing themselves for the Next Shutdown (in January 2014).

What to do? Continue reading

TSP Hardship Withdrawal Costs

TSP Hardship Withdrawal Costs Some tough times for Feds during the past month.

Last week the TSP announced that TSP Hardship Withdrawals totaled 8,200 during the 16-day Government Shutdown (versus 5,500  during the same period in 2012).  So far in 2013 the number of TSP Withdrawals adds up to over 104,000 transactions.

Over 8,000 TSP hardship withdrawals in 2 weeks is pretty staggering considering that nobody actually lost income (all Federal Employees were made whole for lost pay and leave following the shutdown).  Paychecks were never forfeited- just delayed.   But I guess a lot of folks are in some pretty dire cash flow conditions, considering that eligibility to make a TSP Hardship Withdrawal requires one of the following: Continue reading