Any other families planning for a furlough?

[psimon]

I hope she didn't, either. I also don't think everyone realizes how hard it is going to be for all the federal employees that support the military (including deployed). Those employees have to attempt to do as good a job as they humanly can while it's all giggles, games, and snarkiness in DC. These furlough days aren't vacation days. For many furlough means forced time away from the mission of supporting our troops.



Lots of possible effects, not a lot of answers. Some seem to be planning to leave the TSP as it is, (knowing it will change some as pay declines) others will reduce or stop their contribution for awhile.
The one thing I am hearing more and more-folks are completely eliminating their CFC contributions this year.

If you are contributing to your TSP as a percentage, then, yes, you contribution would go down. It follows your actual paycheck. If you are contributing a fixed $ amount each check, then there would be no change.

As to life insurance premiums, I believe they would stay the same. On the books, you are still the same grade and level with an associated pay. That pay is what your premiums are based on (as is your high 3 for retirement). Consequently, and don't tell your beneficiary , you are worth more if they collect life insurance on you than while you are alive and working, especially with a furlough!!!

---Paul in Southern NJ

 

[eyor44]

We were sent a Furlough Estimate Calculator to help with planning. I wish I could figure out how to post it here although one figure is a bit off. To answer the question of TSP: yes, your contribution will go down and so will the matching from the government. Health and Life Insurance stays the same but everything else goes down.

I too have heard of people canceling their CFC contributions, part of the trickle down effect.

 

[smitch425]

DH contributes a set amount to his TSP. He currently has it set to the highest possible amount. We are going to wait until his first furloughed check comes before deciding if we need to change it.

 

[mrsbornkuntry]

I think we will have to lower our TSP contributions, I hate to do it, but I think it will be necessary. If I had seen this coming I would have cancelled our vision insurance during open enrollment, too. I don't think we've even used it this year, we could've cancelled it and re-enrolled next year, but now we're stuck with it.

I started applying for more jobs in earnest (I'm a SAHM). I haven't had any luck in the past two years and have gotten discouraged, but there has to be something.

 

[Swimalie]

We were sent a Furlough Estimate Calculator to help with planning. I wish I could figure out how to post it here although one figure is a bit off. To answer the question of TSP: yes, your contribution will go down and so will the matching from the government. Health and Life Insurance stays the same but everything else goes down.

I too have heard of people canceling their CFC contributions, part of the trickle down effect.

Thank you for the information. I hadn't even thought about the life ins. As for TSP, we will just increase what he pays in to his Roth to make up for it, if needed.

 

[sharon_wv]

I think we will have to lower our TSP contributions, I hate to do it, but I think it will be necessary. If I had seen this coming I would have cancelled our vision insurance during open enrollment, too. I don't think we've even used it this year, we could've cancelled it and re-enrolled next year, but now we're stuck with it.

I started applying for more jobs in earnest (I'm a SAHM). I haven't had any luck in the past two years and have gotten discouraged, but there has to be something.

Do you think this counts as one of those "life events"'that you can change things even though its not open season?? Probably not, but maybe??? It's worth looking into at least...

 

[mistysue]

Do you think this counts as one of those "life events"'that you can change things even though its not open season?? Probably not, but maybe??? It's worth looking into at least...

That was my thought too. Life events include employment changes so depending on how they word things while notifying people, it is definitely worth checking if a significant pay decrease is a life event.

 

[smitch425]

Do you think this counts as one of those "life events"'that you can change things even though its not open season?? Probably not, but maybe??? It's worth looking into at least...

Dh was told that it is not considered a life event.

 

[sweetdana]

I hope she didn't, either. I also don't think everyone realizes how hard it is going to be for all the federal employees that support the military (including deployed). Those employees have to attempt to do as good a job as they humanly can while it's all giggles, games, and snarkiness in DC. These furlough days aren't vacation days. For many furlough means forced time away from the mission of supporting our troops.

Lots of possible effects, not a lot of answers. Some seem to be planning to leave the TSP as it is, (knowing it will change some as pay declines) others will reduce or stop their contribution for awhile.
The one change I am hearing about more and more-folks are completely eliminating their CFC contributions.

Not meant to be snarly, my words were misunderstood/ lack of tone, and emphasis was put on wrong part.

Point was ..simply it is not a perm solution. Can't be. For 22 paid days off I think most people can make it. Budgeting yup. Struggling yup.. Learning yup.

I took a 60-75% ish pay cut in 2009 1 sad day in aug everything died. ..(comm LO) Honestly, it helped us, Dh and I now aim for debt free, and now budget and mostly live off 1 income. No way would we if it had not happen, it was a God sent. We will not finance anything.

Today, market thriving, I pick up bunches of extra hrs 6+ days a week. Cause we learned in a second you can go from a huge income to nothing.

When things came back, we paid off our 2nd mort, all cred cards, and pay cash for cars, dvc, everything .. cause we learned a priceless lesson.

I truly enjoyed spending unpaid vac days I was required to take, with kid at the time. ( same thing on comm.)

Prior to this new garbage possibly being perm, . 22 days of learning what you have to be thankful for and an end in sight, can be good. Learning things like Tim hortons for coffee is really really expensive daily, or buying a 6 yr old car having no car payment may be better than having a new car you cannot afford.

My words were stronger than I meant. I am so sorry for that. They were meant for 1 end in sight is reasonable and 2 that this cannot be a perm solution it can't ... . is not a reasonable.
...-and I think peeps in congress should suffer the wrath of thur own decisions.

Side note:
I also I think a positive spin on things in life is better. I am so sorry for those it is effecting. I really truly mean that.

 

[madge]

I am so sorry for those families effected by this. I did not feel to bad when it was initially for 22 days, I think most families can manage that. Being 3/4 day weekends every other week IMO for summer would be a God sent. . But a proposition to make semi- perm is not a solution. It is a joke. ... Only With people's lives.

it isn't 3 day weekends every other week.

it's a 4-day work week with an unpaid day of every week from late April until the end of September.

not God sent. not for us, or for any of the guys under my DH who live check to check as it is ... this will be devastating for them.

 

[madge]

I think we will have to lower our TSP contributions, I hate to do it, but I think it will be necessary. If I had seen this coming I would have cancelled our vision insurance during open enrollment, too. I don't think we've even used it this year, we could've cancelled it and re-enrolled next year, but now we're stuck with it.

we would've made different choices during open season, had we known this was coming at the time. I wish they'd let us have another open season, just this one time ...

 

[Deb & Bill]

GS-10, 11, 12, 13, etc will survive. GS-1,2,3 etc will have a harder time since they aren't making that much to begin with. Especially the ones who rely on overtime to make some extra.

 

[Swimalie]

GS-10, 11, 12, 13, etc will survive. GS-1,2,3 etc will have a harder time since they aren't making that much to begin with. Especially the ones who rely on overtime to make some extra.

I think that all depends on where you live as well. Yes, the higher GSs get paid more but in some cases, they live in a high cost of living area with little help in the locality pay. We moved here from a lower cost of living area but the locality pay is the same. Same income, much higher cost of living here. So our pay gets stretched a lot more here. I'm sure that is the case for others as well, no matter the GS level.

 

[psimon]

GS-10, 11, 12, 13, etc will survive. GS-1,2,3 etc will have a harder time since they aren't making that much to begin with. Especially the ones who rely on overtime to make some extra.

Don't quite agree....

A co-worker is a GS-14. 2 kids in college, one with medical issues. no car loans but a mortgage (not an mansion or huge house either). Wife has been trying to get a job for 3 years with no luck. No one is hiring here. They are just barely keeping heads over water and its getting really close. This WILL put them under and nothing can be done to help them. No amount of budgeting will fix it. They don't eat out, they don't take vacations....

Not a pretty picture. The stress being placed on them right now is unreal.

So.... not so sure the higher grade folks will do well through this either!

---Paul in Southern NJ

 

[worm761]

Not meant to be snarly, my words were misunderstood/ lack of tone, and emphasis was put on wrong part.

Prior to this new garbage possibly being perm, . 22 days of learning what you have to be thankful for and an end in sight, can be good. Learning things like Tim hortons for coffee is really really expensive daily, or buying a 6 yr old car having no car payment may be better than having a new car you cannot afford.

We are very grateful for everything that we have. And we don't need to have 22 unpaid days to realize it.

As for your expensive lessons, DH takes coffee made from home to work with him. If he wants more than that, it is made in the office. He takes water from home to drink in the office. He takes lunch from home to eat in the office. We don't have those things to cut from our budget.

I am sorry that you had to learn those things the hard way but it doesn't mean that we all do that stuff. We are already about as frugal as we can get. Next is cutting out cable but we have to keep internet as I work from home and it is a necessary evil. The only other place to cut is the food budget. We don't go to movies. Don't go out to eat. I do plan to buy a zoo membership so we have something to do for some fun since everything else is cut out. But we will pack lunches when we go.

People seem to be under the mistaken impression that federal employees make a ton of money. They don't. DH said that the majority are GS9 and below. The highest paid GS9 is still only at around $54,000. Losing 20% at that rate will be devastating to some families. And we have had a pay freezer for a few years. No pay increases, no cost of living increases. In the meantime, gas has gone up, groceries have gone up, everything has gone up but our pay.

 

[madge]

People seem to be under the mistaken impression that federal employees make a ton of money.

THIS. MAKES. ME. CRAZY. I guess we have the media and misguided politicians to thank for perpetuating this nonsense. SOME feds make a lot of money. But you know what? In many cases, they SHOULD. I want the best of the best working for our country!

The other thing that makes me crazy is I keep reading that people think fed salaries should be brought in line with the private sector. Oh, to dare to dream ....

 

[Jasonkat]

People seem to be under the mistaken impression that federal employees make a ton of money. They don't.

My wife and I are federal employees. Until very recently should could have made more in the private sector but last summer she got promoted a grade and now she's on par with the private sector.

I could quit my job tomorrow and make 25% more in the private sector.

That is the part where I agree with your point. A "specific" person could make more in the private sector than in the government.

HOWEVER it is also a fact that the "average" federal employee makes $75,000 where the "average" private sector employee makes $45,000.

In this day and age of "stick it to the rich guy" the federal employees have become "the rich guy" and private sector workers are welcoming the sequester because it "sticks it to the rich guys".

The 45k vs 75k statistic is misleading because it doesn't factor in experience, education, and job classification. But that's how politicians work.

It's the exact same situation with the woman vs man disparity. It is a FACT that the average woman makes 75% of what the average man makes. It is also a FACT that when you factor in experience, education, and job classification men and women make the exact same amount.

So depending on which story you want to push: fed employees are overpaid, women are underpaid, the "Facts" will be there to back you up.

 

[crayon3448]

I've followed this thread a bit, but haven't posted yet. My DH works at a company that is contracted by the Department of Defense. Last month in their monthly meeting, it was mentioned that they might have to go down to 4 days a week if the funding is cut. He hasn't heard anything since, but has the monthly meeting today so hopefully we'll find out what is going on.

I started to SAH last year when we had our DD and we have a tight budget to make it work, so if his pay is cut then I'll have to go back to work, at least part-time because we don't want to use our savings. Good thing I left a job where I know I can go back at anytime. It's not ideal, but I know that we'll be able to manage. I am really hoping for good news today!

I am sorry for everyone going through this.

 

[sweetdana]

We are very grateful for everything that we have. And we don't need to have 22 unpaid days to realize it.

As for your expensive lessons, DH takes coffee made from home to work with him. If he wants more than that, it is made in the office. He takes water from home to drink in the office. He takes lunch from home to eat in the office. We don't have those things to cut from our budget.

I am sorry that you had to learn those things the hard way but it doesn't mean that we all do that stuff. We are already about as frugal as we can get. Next is cutting out cable but we have to keep internet as I work from home and it is a necessary evil. The only other place to cut is the food budget. We don't go to movies. Don't go out to eat. I do plan to buy a zoo membership so we have something to do for some fun since everything else is cut out. But we will pack lunches when we go.

People seem to be under the mistaken impression that federal employees make a ton of money. They don't. DH said that the majority are GS9 and below. The highest paid GS9 is still only at around $54,000. Losing 20% at that rate will be devastating to some families. And we have had a pay freezer for a few years. No pay increases, no cost of living increases. In the meantime, gas has gone up, groceries have gone up, everything has gone up but our pay.

That is great for you!!! You are already doing the right things. And you are correct, for those that already know, maybe they will learn nothing from the unpaid days. I can tell you from credit reports daily.. YOU are an exception, not the rule. I hope you realize that! (Most people can cut from there budget. Nearly everyone finances cars, instead of buying something they can afford for cash.)

I am so sorry if you already have, and there is nothing left. Maybe pick up a side job, or something, and hopefully it is only through Oct, and you can manage.
I hope you are able to make the best of it, and I am so sorry.


I as well cut my home phone and cable about 1.5 yrs ago. I SWEAR by it. I hardly miss it. Best 100$ a month we save. The zoo pass is also tax deductible ( at least in MI it is) it is a donation. We did this when DD was 3, and went a lot! ( similar timing not having any $$.)



I look at a doz pay stubs a day due to what I do. Many many make more and many many many make less then 54K ( even 80% of 54K). Many families would be very grateful for this. I have helped people with house hold incomes of 12K buy homes and 2 Million. (and everything in between. ) I would say 1 person income at 54K a yr (esp in a 2 income home) would for sure be on the high end of what I see, but certainly not buying a 2nd home or not budgeting either. Not down playing it. YOU have an income you budget off of, and someone comes and squashes it.. no matter what you make that is tough. I again I am so sorry.

 

[robsmom]

That is great for you!!! You are already doing the right things. And you are correct, for those that already know, maybe they will learn nothing from the unpaid days. I can tell you from credit reports daily.. YOU are an exception, not the rule. I hope you realize that! (Most people can cut from there budget. Nearly everyone finances cars, instead of buying something they can afford for cash.)

I am so sorry if you already have, and there is nothing left. Maybe pick up a side job, or something, and hopefully it is only through Oct, and you can manage.
I hope you are able to make the best of it, and I am so sorry.


I as well cut my home phone and cable about 1.5 yrs ago. I SWEAR by it. I hardly miss it. Best 100$ a month we save. The zoo pass is also tax deductible ( at least in MI it is) it is a donation. We did this when DD was 3, and went a lot! ( similar timing not having any $$.)



I look at a doz pay stubs a day due to what I do. Many many make more and many many many make less then 54K ( even 80% of 54K). Many families would be very grateful for this. I have helped people with house hold incomes of 12K buy homes and 2 Million. (and everything in between. ) I would say 1 person income at 54K a yr (esp in a 2 income home) would for sure be on the high end of what I see, but certainly not buying a 2nd home or not budgeting either. Not down playing it. YOU have an income you budget off of, and someone comes and squashes it.. no matter what you make that is tough. I again I am so sorry.

I think any real sympathy in your posts gets totally overridden by the lecturing. I am not a federal employee or spouse of a federal employee but I can still have empathy. Suggesting that people can just cut from their budget and question their spending is a generalization. When my company had to do this we were asked to take 10 days in the year. This is less than 1/2 of what the government employees are now being asked. I saw first hand all aspects of the impact. Yes there were some that viewed it as an extra vacation opportunity, there were many that just tightened the belt a little, and there were some that really struggled. We can sit and judge those that struggled, but without knowing every detailed of their lives, who are we to say if they struggled due to poor decisions/over spending or other unexpected circumstances. Some people had both spouses working for our company and got double hit. Some people had a spouse that was already unemployed. Others had made decisions to have one spouse at home with the kids and were living frugally already. I know one co-worker who had recently rescued a teenage relative from a bad home environment. At age 13 she had never been to a dentist and needed alot of work. She also needed therapy and many other things. My point is that this should be a time of sympathy and support for those that are impacted. The overall economic situation has hurt many people in the last 5 to 6 years. Right now it is hitting the federal employees and contractors the hardest. A few years back the entire state of Michigan was highly impacted. I live near Philadelphia and in 2009 several of the largest law firms in the city basically imploded. Whether it was an hourly auto worker or a highly paid law partner, they all struggled as a result. Instead of looking at it as I suffered so it is only fair that xyz group suffers too, can't we look and say it is terrible that anyone should go through this. We an interwoven economy and society, when one part is hurt we all hurt. Let's be sympathetic and hope that the economy improves and we are all more prosperous. OK off the soapbox now.