POTUS to cap active duty pay

[BobR]

Most of what I want to say will not fly here. :(

So I will just leave to others to express their disdain at the move much more eloquently than my vocabulary picked up during my 21 years in the Navy will allow me.

In his letter, Obama said that he is, “strongly committed to supporting our uniformed service members, who have made such great contributions to our Nation over the past decade of war.” However, he insisted that this move is necessary to, “maintain efforts to keep our Nation on a sustainable fiscal course.”

President Obama sent a disappointing letter to Congressional leaders last week stating that he plans to use his executive authority to cap military pay for the third consecutive year.

In 2014 and 2015, pay raises were capped at 1 percent. The president intends to cap 2016 pay raises at 1.3 percent, instead of the 2.3 percent raise called for by law.

The troops’ last four raises averaged less than 1.4 percent, with the FY14 and FY15 pay raises being the lowest in 50 years.

http://www.moaa.org/Content/Take-Action/Top-Issues/Currently-Serving/POTUS-Caps-Pay.aspx#sthash.O63YXwbZ.dpuf


  

bob

[makattak]

"Sustainable fiscal course" is only important when talking about things liberals hate. Which is, of course, the military.

[RevDisk]

I'm curious if this applies to DOD civilians as well as uniformed military. For the life of me, I will never understand why DOD civvies get a 401k and other arguably better benefits than uniformed side. Admittedly, uniform side has a pension (if and ONLY if you put in 20) and GI benefits.

[wmenorr67]

To piggyback in on the 401k thing, there is what they call a Thrift Savings Plan, similar to a 401k that there was I believe an unfunded mandate that the DoD was supposed to match.

That sure hasn't happened and never will, at least not before I retire in the next 3-4 years, current thoughts.

[Ben]

I'm curious if this applies to DOD civilians as well as uniformed military. For the life of me, I will never understand why DOD civvies get a 401k and other arguably better benefits than uniformed side. Admittedly, uniform side has a pension (if and ONLY if you put in 20) and GI benefits.

The pay cap sucks for those in uniform, but they do now (for the last six or so years?) get to do the TSP.

Bill beat me on the TSP. I didn't know there was no matching. For civvies, it's 100% for the first 2% and 50% for the next 3%.

[Scout26]

Did he also cap increases on all other .gov employees, Welfare, Section 8, Food Stamps and other transfer payments to help “maintain efforts to keep our Nation on a sustainable fiscal course.” ??

Put me in the corner with BobR, should I truly express how I feel about this.

[Angel Eyes]

Did he also cap increases on all other .gov employees, Welfare, Section 8, Food Stamps and other transfer payments to help “maintain efforts to keep our Nation on a sustainable fiscal course.” ??

Now that's just crazy talk.

[Firethorn]

Okay, as a retired guy who actually did a 'fair bit' with the uniformed services TSP

On matching - the law is actually that the services are authorized to offer matching, such as part of a retention policy, but are not required to.  There's not even a 'should' for it.  I am unaware of any significant interest by service members to have matching, as opposed to regular bonus pay and such.  We tend to be short-sighted that way.  Thus, no real prospect of that option being used in the current atmosphere.

Other thoughts:  While a 401k is the closest program that the TSP can be compared to, it is NOT a 401k program.  In many ways it's more limited(many 401k programs offer more funds, for example), but it has some very nice advantages.  For example, the ability to borrow up to half the money in the account for a down-payment on a house, at incredibly low interest rates that you pay yourself.  Or even for any reason at all.  Pay back over the next 15 years or so.  Or 'any reason', though the amount is more limited and you only have 5 years to repay that.

*payments back not being included for ease.

Ben - TSP availability is closer to 16 years than 6.  I know I started my 10% contributions way back when it became available for uniformed members.

[lupinus]

I have words. I won't say them, but I sure can think them.


Sent from my iPhone. Freaking autocorrect.

[Ben]

Ben - TSP availability is closer to 16 years than 6.  I know I started my 10% contributions way back when it became available for uniformed members.

Dang - I had no idea. I seem to remember some big to do about TSP and uniforms around 6 years ago. Maybe it was a change to the .mil side of the program? The other good thing about TSP is the very low fees. Also the G and F funds seem too be a better place to safely park some money at (over time) a better interest rate than at the commercial brokerages. It's a good enough program that I chose to leave all my contributed money there versus transferring to my Vanguard accounts.

[wmenorr67]

I am currently contributing to TSP, not sure what funds right now, but plan on keeping my money in there.

I do wish that they Army would match my funds that I put in there.  Of course at this stage of my career I will not get anymore bonuses to stick around.  If I complete my current contract I will have 23 years of service.

[BobR]

The G fund in TSP may not be a barn burner but it is slow and steady. I feel the money in there is fairly safe.

bob

[wmenorr67]

I am still young enough, 47, 48 in November, that both my TSP and 401k money is in fairly aggressive funds.  I figure I can scale back and put in "safer" funds in another 15-20 years.

[Firethorn]

Dang - I had no idea. I seem to remember some big to do about TSP and uniforms around 6 years ago. Maybe it was a change to the .mil side of the program? The other good thing about TSP is the very low fees. Also the G and F funds seem too be a better place to safely park some money at (over time) a better interest rate than at the commercial brokerages. It's a good enough program that I chose to leave all my contributed money there versus transferring to my Vanguard accounts.

Six years ago?  Oh I know - that's when the 'targeted retirement date' funds came out!  What they do is utilize a standard mix of the various funds, automatically balanced, that becomes more conservative over time so that you, at least theoretically, have a nice stable income when you retire, but are aggressive enough for good growth while you're still young.

And yes, I'm leaving the funds in the TSP.  Part of that is the tax bennies from my deployments.  Would be tough to get the money out and keep those.

I am currently contributing to TSP, not sure what funds right now, but plan on keeping my money in there.

If you're not sure, you're probably invested in the G fund, US Savings bonds paying approximately 3%/year, 10 year average.  Meanwhile the S fund has a 9% 10 year average.  But it's so volatile that it loses money half the years.  It's just that one year it's down 5%, the next up 15%.

[Battle Monkey of Zardoz]

Yep. Big green weenie, BOHICA.  If the idiot POTUS wants to save more $$, yet pay our military more, start cutting entitlement welfare programs by 40% to start, the get rid of them all.

[Ben]

Six years ago?  Oh I know - that's when the 'targeted retirement date' funds came out!  What they do is utilize a standard mix of the various funds, automatically balanced, that becomes more conservative over time so that you, at least theoretically, have a nice stable income when you retire, but are aggressive enough for good growth while you're still young.

And yes, I'm leaving the funds in the TSP.  Part of that is the tax bennies from my deployments.  Would be tough to get the money out and keep those.

Okay, that was it!

I currently have 50% of my money in the targeted fund, 25% in the G&F funds, and the other 25% in the yoyo C,S and I markets.  

[Ben]

The G fund in TSP may not be a barn burner but it is slow and steady. I feel the money in there is fairly safe.

bob

Yup. The money I have in that is my "If everything else goes to hell, I'll still have my G fund money" money. :)

[Firethorn]

Okay, that was it!

I currently have 50% of my money in the targeted fund, 25% in the G&F funds, and the other 25% in the yoyo C,S and I markets.  

I'm about equally split(been a while since I balanced funds) between the yoyo funds.  I'm not in G&F at all. 

On the other hand, I have bond  and midcap funds on vanguard, so I'm diversified. 

My 'everything else goes to hell' is my pension.

[wmenorr67]

If you're not sure, you're probably invested in the G fund, US Savings bonds paying approximately 3%/year, 10 year average.  Meanwhile the S fund has a 9% 10 year average.  But it's so volatile that it loses money half the years.  It's just that one year it's down 5%, the next up 15%.

I actually had the option to put it in more than just two I believe.  I know that it is 5% of my pay going into the fund and if it is one of the two you listed it was the S fund.  But I think I put it in something more volatile than that even. 

[brimic]

Why does obama continue to urinate all over groups that have all the guns?

Hey! Didn't obama give HUGE pay raises to federal employees early on in his presidency?
Let that sink in for a bit...

[BobR]

I don't know what you mean by huge but the largest raise for federal employees since 2009 has been 3.9% in 2009, followed by a 2% raise the following year and then 0% for 3 years and 1% last year.

The last huge raise would have been in 1972 @ 10.9%.

http://www.fedsmith.com/2015/02/08/pay-raises-inflation-and-the-federal-workforce/


bob

[vaskidmark]

My thoughts on how this reflects his attitude towards the military are not fit for a cur dog who just peed on my pants leg to hear.

However, he insisted that this move is necessary to, “maintain efforts to keep our Nation on a sustainable fiscal course.”

Translation:  The stuff we are giving to the FSA to buy their votes costs more every year,and there are more of them every year.

stay safe.

[brimic]

I don't know what you mean by huge but the largest raise for federal employees since 2009 has been 3.9% in 2009, followed by a 2% raise the following year and then 0% for 3 years and 1% last year.

The last huge raise would have been in 1972 @ 10.9%.

http://www.fedsmith.com/2015/02/08/pay-raises-inflation-and-the-federal-workforce/


bob

My bad, I thought he gave enormous raises to some political appointees and department heads, but I couldn't find a link to support that.

[Ben]

My bad, I thought he gave enormous raises to some political appointees and department heads, but I couldn't find a link to support that.

Bonuses vs raises.

[Firethorn]

I actually had the option to put it in more than just two I believe.  I know that it is 5% of my pay going into the fund and if it is one of the two you listed it was the S fund.  But I think I put it in something more volatile than that even.

The standard funds are:
G - Federal bonds
F - Fixed income (Bond index)
C - Common stock
S - Small-Cap
I - International.

Listed in order of volatility.

But, at least when I joined, the default was straight into the G fund; you had to log in with your account to change it.