Browsing: new hire

Q. I am going to be starting with the federal government in December. How much will I be contributing to my pension account? Will it be 0.8 percent or 3.1 percent? This will be my first job with the federal government. A. If you are hired before Dec. 31, you’ll be contributing 0.8 percent of basic pay. Anyone hired after that, or who returns to government employment with fewer than five years of service, will be contributing 3.1 percent.

Q. I am a FERS employee with less than five years of service. If I accept a new position with the government after Jan. 1, will I pay the new, higher FERS contribution rate or will it be considered a transfer (i.e. not a “new hire”) and thus exempt from the new contribution rate? A. It would be considered a transfer and not subject to the “new hire” rate.