All of these programs have faced some modification over their lifetimes, and there’s likely to be more changes forthcoming. Image: 365 Focus Photography / Shutterstock.com
By: John GrobeThere are several important anniversaries coming up for our retirement benefits over the next few months.
August 1st will be the 105th anniversary of federal retirement.
It was back on that date in 1920 that the Civil Service Retirement System came into being. CSRS served as the federal retirement system for 67 years until the Federal Employee Retirement System was introduced. FERS came about on January 1, 1987, and was followed by the TSP going on line (with only one fund) on April 1st.
Social Security reaches the age of 90 on August 14th. Franklin Delano Roosevelt signed the Social Security Act into law that day, though the first monthly benefits were not paid until 1940.
The amount of the first monthly Social Security check was $22.54. Many changes have been made to Social Security over the years. There were no annual cost of living adjustments until 1975. In 1961 the minimum age for collecting Social Security benefits was lowered from 65 to 62, though benefits were reduced by 20% if claimed at 62 rather than 65. Then in 1983, the full retirement age for SS benefits was raised to 67 for those born in 1960 or later.
Note that federal pensions preceded Social Security. In fact, the Social Security Act allowed employers who had their own pension plans to opt out of Social Security – and Uncle Sam did just that. CSRS employees did not pay into Social Security and got no credit (or benefits) from their federal work. When FERS came into being, federal employees hired January 1, 1984 and later were covered by Social Security.
July 30 will be the 60th anniversary of Medicare, which was signed into law by Lyndon Johnson on that day back in 1965. There have also been changes to Medicare over its life, including drug benefits and Medicare Advantage plans.
All of these programs have faced some modification over their lifetimes, and there’s likely to be more changes forthcoming. What those changes will be and when they might happen are unknown at this time.
Protect your interest in these programs by paying attention to any proposed changes and making your opinion known to your elected representatives.
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See also,
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