Retirement benefits

[Houston]

Yes, Fed Gov't retirees get an annual cost of living bump in retirement.

Minus one percent of the calculated cost of living index. Over time you will definitely lose purchasing power.

 

[Houston]

This is base pay only no OT or premiums are figured in.

One other wrinkle. It does include locality pay. So, if two people from two different areas with the same high three retire and buy homes in a retirement village next door to each other, the one who had worked in the higher locality pay area would receive more retirement pay (not because of where he is, but because of where he was).

 

[teetee]

I thought in retirement the locality was a set amount...$28k + right now. Is that not correct?

 

[K-Dog]

Minus one percent of the calculated cost of living index. Over time you will definitely lose purchasing power.

That's ok. If things in the workplace keep going the way they have the last 20 years, you will probably be losing purchasing power your entire career anyway. Why should retirement be any different?