CBO: 30% Growth in Retirement Benefit Spending Likely

1 min read

The Congressional Budget Office predicts the number of federal retirees will increase by 10 percent over the next decade, helping spur a close to 30 percent increase in retirement benefit spending over that period.

Total spending on federal retirement will likely grow from $73.9 billion to $95.7 billion, while Social Security spending on federal retirees will grows substantially over the next decade, according to CBO’s projection.

CBO projects combined benefit spending from these programs to grow from $660 billion to $1.3 trillion as the number of total beneficiaries, including retirees and family members, to grow from 52.5 million to 74.1 million.

Research released in September showed the federal government was not setting aside enough money for retirement programs, resulting in a multi-trillion-dollar shortfall.

The federal government has two retirement systems: the Civil Service Retirement System for employees hired before 1984 and the Federal Employment Retirement System for employees hired since.

CBO says nearly 80 percent of federal workers fall under FERS and the same percentage draw benefits under CSRS.

There are nearly 1.5 million CSRS annuitants and they individually receive, on average, $3,123 per month.

Nearly 543,000 survivor beneficiaries receive, on average, $1,429 per month.

CBO says the number of FERS retirees will grow from 461,000 to 1.1 million over the next ten years and average monthly benefits will rise from $1,147 to $1,671.

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