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Article: Lump-Sum Flip-Flop
- Article from:
- The Washington Post
- Article date:
- August 2, 1987
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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In the 14 months since Congress gave federal workers the option
of getting a lump-sum pension payment, the once-attractive
benefit-which for some would have meant a tax-free check worth
$70,000 or more-has been devalued because congressional rule changes
have left most of the potential takers angry or confused.
Many would-be retirees who planned to take the big payment have
found that after-the-fact changes by Congress have gutted the benefit
to the point where it isn't worth it.
As originally passed, the lump-sum benefit (equal to all the
money an individual paid into the civil service retirement fund while
working) was to be returned to workers, tax-free, when they retired.
Depending on ...