There are three numbers to keep in mind when trying to determine what the 2020 raise for federal workers will be: 2.6%, 3.1%, and 3.6%. The President proposed a wage adjustment of 2.6% that would give workers in designated localities (such as Washington, DC) 3.1%. The House of Representatives still has a say in the matter, according to Federal News Network, as they could approve a 3.1% increase across the board, which would then leave those with locality pay at 3.6%. Pro-fed advocates are pushing for 3.6% for all feds, but this is viewed as unlikely. The consensus seems to agree at least 2.6% can be expected.
For those thinking about retiring, attending a federal benefits seminar or meeting with a Chartered Federal Employee Benefits Consultant (ChFEBC) is a great way to learn how your saved annual leave is impacted by the annual raise percentage, and whether it makes sense to retire before or after December 31, 2019.
Until Next Time,
**Written by Benjamin Derge, Financial Planner. The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Benjamin Derge and not necessarily those of RJFS or Raymond James. Links are being provided for information purposes only. Expressions of opinion are as of this date and are subject to change without notice. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors.