How to help pay for a police pension
The federal government’s plan to pay for the retirement benefits of thousands of federal workers has raised concerns among some retirees who fear the cost will outweigh the benefit.
The $5.2 trillion program, which was unveiled in January, would cover the salaries of federal civilian workers, but some federal retirees are worried that the cost is far higher than what they would have paid before.
In addition to the cost of benefits, the government is also concerned that it will be hard for retired police and firefighters to find jobs in retirement.
“I’ve been told that the costs of this plan are higher than I ever expected,” said Michael Kallen, an attorney who represented the American Civil Liberties Union of Illinois in its successful fight against the plan.
Many of the benefits under the plan would be funded by taxes paid by retired federal workers, as well as by federal workers themselves.
But the Obama administration has not said how much money it is expecting to raise from the payroll tax or how it will distribute the money among the different retirement plans.
The plan, which the president has been pushing since he took office, has raised some eyebrows among Democrats.
According to the CBO, the federal government will spend $13.6 trillion on benefits under a plan that provides a combined $4,971 for each retiree in retirement, according to a Congressional Budget Office report.
A separate CBO analysis found that a portion of the cost would be borne by the federal workforce, with about $1.5 trillion being funded by the payroll taxes paid to retirees.
This figure includes both benefits and costs of benefits provided under the program, including payments to federal agencies for administering the program and costs incurred by the government in paying retired workers who are not covered by a plan.
The government’s contribution to the federal pension is about $8.4 trillion, according the CBO.
Sen. Ron Wyden Ronald (Ron) Lee WydenOn The Money: Senate passes 4B spending bill to avert shutdown | Trump says ‘very generous’ Medicare benefits for retirees ‘would go away’ | Senate panel approves $3.5 billion stimulus package | Trump urges senators to pass spending billTrump orders new VA chiefs to use more military force against ISIS | Senate approves $2.5B infrastructure bill | Trump wants U.S. military to focus on counterterrorism, homeland security | Lawmakers look to curb Iran’s growing influence in world | Trump calls China ‘the single biggest problem’ for global securityThe White House said the White House was unaware of the costs associated with the retirement plan and said it did not believe that the plan is cost-effective.
Under the plan, the average cost of a retired police officer would be about $80,000 a year, while a retired firefighter would pay $60,000, according data from the Bureau of Labor Statistics.
Retired military members who are paid as part of a pension are typically entitled to an additional $50,000 in retirement benefits.
While the plan does not include benefits for police officers, the Trump administration has said that the retirement savings plan would help pay a portion for the police force, which is a major source of funding for the government.