Today, both baby boomers and Generation Xers are concerned about retirement.  In a recent study, over two thirds of Americans between the ages of 27 and 42 believe they will never be able to stop working.

Fear stems from the country's overuse of credit, little faith in the depleting social security system, and rapidly escalating prices for goods and services.   Unless you're sitting on a mountain of cash, few see any "nest egg" to rely on in their future.

For those that choose a profession in government, the story is a little different. While federal employees share the same concerns regarding the viability of Social Security two decades from now, they also have a comfortable retirement plan called the Federal Employees Retirement System (FERS).

FERS became effective in 1987, and almost all new Federal civilian employees hired after 1983 are automatically covered by this new retirement system. Many of its features are "portable," so that employees who leave federal employment may still qualify for the benefits.     

The retirement system is a three-tiered retirement plan. The three components are: Social Security Benefits, a Basic Benefit Plan, and a Thrift Savings Plan.

The Social Security plan is the same as the rest of the country.  It provides monthly payments if you are retired and have reached at least age 62 or become disabled, monthly benefits for your eligible survivors, and a lump sum benefit (to family members) upon your death.

The Basic Benefit Plan is financed by a very small contribution from the employee (0.8% of the total basic pay) and a contribution of 11.5% of the employee's basic pay from the government.

Eligibility for Basic Plan Benefits depend on the employee's age and number of years of federal service.  Benefits are paid out monthly and the amount paid out depends upon the salary level of the employee.  The higher the salary, the higher the contributions, the higher the benefits paid out.

The third part of the FERS benefit is the Thrift Savings Plan-a tax-deferred retirement savings and investment plan that offers the same type of savings and tax benefits that many private corporations offer their employees under 401 (k) plans.

When you join FERS, an employee's agency sets up a Thrift Savings Plan account in his/her name. Every pay period, the agency automatically puts in an amount equal to 1% of the employee's basic pay. This money is called the Agency Automatic (1%) Contribution.  It is not a deduction from a paycheck. The agency simply contributes this amount on top of basic pay based on the employee's pay level.

Federal employees may contribute up to 10% of their basic pay per pay period up to $15,500 to their Thrift Savings Plan account. If they contribute to the Thrift Savings Plan account, they will also receive Agency Matching Contributions as follows:

• The first 3% they save each pay period will be matched dollar for dollar, and
• The next 2% they save each pay period will be matched 50 cents on the dollar.

FERS is a flexible plan for a flexible workforce - a workforce that is more likely to work for several different employers during the course of a career. It also allows for the fact that many employees may not spend their entire careers in the Federal government but can still enjoy the benefits. 

So if you are one of those concerned Generation Xers (or other) who's bearish on the prospect of ever having enough to lounge around on a boat or golf course in Florida, you may want to try public service.