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Deferred Annuities Would Be Indexed To Inflation Under Proposed Bill

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March 28, 2010

Congressman James Moran (D-VA) introduced legislation on Thursday that would require deferred annuities for departing federal employees be indexed to inflation.

"At a time when the federal government needs to recruit the best and brightest into service, H.R. 4979 is an important recruitment tool," said Margaret Baptiste, president of the National Active and Retired Federal Employees Association (NARFE) "With indexation of deferred annuities, young workers joining the federal workforce know they can begin a long and fulfilling career in public service and still retain the full worth of their retirement benefits, regardless of other career choices they make in the future."

Currently, according to NARFE, if federal employee decides to leave the federal service prior to age 62, the annuity earned must either be deferred until age 62, or contributions the employee made during service must be immediately withdrawn from the Civil Service Retirement and Disability Fund (CSRDF). The annuity is not indexed to inflation; so many younger employees take out their contributions knowing that if they defer the benefit, it will decrease in value over time.

Posted with permission from: MyFederalRetirement.com



Deferred Annuities Would Be Indexed To Inflation Under Proposed Bill
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