Federal Employee Pension Contributions To Be Increased

New federal employees will pay 2.3% more toward their government pensions under a new deal approved by Congress.

According to news reports, federal employees hired after December 31, 2012, and those with less than five years of federal service will need to contribute an additional 2.3% for a total of 3.1% to their pension plan to help pay for a year-long extension of unemployment benefits and the payroll tax cut extension. The pension hike is a permanent change.

There are still other legislative efforts pending in Congress, which would affect federal pay and benefits. President Obama’s FY 2013 budget proposal recommends increasing the amount federal employees contribute to their pensions by a total of 1.2% over three years starting in 2013.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

Prudential Launches Retirement Readiness Campaign

To coincide with America Saves Week 2012, which begins February 19, Prudential Retirement is launching a campaign called “How Do I Know if I’m on Track for Retirement?”

The campaign encourages participants to use the Retirement Income Calculator to assess their accounts, gauge their retirement readiness and refine their contributions and plans.

Prudential will also offer “Overcoming Today’s Challenges, Improving Tomorrow’s Outcomes,” a year-long webinar series for its plan participants, designed to help employees solve their personal retirement challenges. Upcoming webinars include “The Generational Challenger: How Do I Save for Retirement?” and “The Power of Your Workplace Retirement Plan.”

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

«