STWS Advisor Jennifer Meyers explores how HSAs can help you save smarter for retirement
With little fanfare, the 2021 1% pay raise slated to take effect according to the President’s budget proposal earlier in 2020 looks to be intact. If there was to be any wavering from that plan, action was required to have taken place by August 31, 2020. Since there was no additional action taken, the assumption is that the 1% raise recommended by President Trump will be passed in a post-election session.
One would expect that election years would be an ideal time for significant pay increases for federal employees. Across the U.S. federal employees can be found in all types of geographic regions. Whether North, South, East or West, urban or rural, low income or high income, there are likely federal employees supporting the local economy in virtually every city and state. This could incite incumbent lawmakers to push for pay raises to support their re-election bids. However, in this year of multiple American crises, from the COVID pandemic, to social and racial inequality, to economic uncertainty, and finally to the most recent headline regarding the replacement of a Supreme Court Justice during an election season, perhaps lawmakers are forced to chose their battles and have decided a 1% pay raise for 2021 following 2020’s 3.1% increase is good enough.
Look for my follow up article regarding the COLA increase for retirees and recently announced higher healthcare premiums coming soon!
**Written by Jennifer Meyer, 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 Jennifer Meyer and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.**
2021 Federal Pay Raise