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Showing posts with label government jobs. Show all posts
Showing posts with label government jobs. Show all posts

New Law makes it Easier to Withdraw from Government Retirement Accounts (Lord Abbet)

New Exception to Early-Distribution Penalty

July 31, 2015 9:10 AM
By Brian Dobbis
54 Views
New law extends the exceptions on early-distribution penalties to federal employees and includes all governmental retirement plans.
THE ROAD TO RETIREMENT with BRIAN DOBBIS 
On June 29, 2015, President Barack Obama signed a law that expands the universe of retirement plans that will not be subject to the 10% early-distribution penalty. The "Defending Public Safety Employees’ Retirement Act" broadens both the number of workers and the types of plans eligible for the exception.
Generally, early distributions from retirement accounts are subject to both income tax and penalties when the account holder is younger than 59½. However, a number of exceptions apply that allow participants to avoid the penalty when making early withdrawals from employer workplace plans and/or IRAs.
The Pension Protection Act of 2006 made special allowances for “qualified public safety employees,” allowing state and local workers who separated from service after reaching age 50 to take penalty-free early withdrawals from governmental defined-benefit plans. The rationale was that these workers, who included police and firefighters, are able and required to retire earlier than the general public, and, therefore, should have earlier access to their retirement funds.
The act did not, however, extend to federal workers performing the same public safety jobs as state and municipal workers, nor did it apply to withdrawals from IRAs or other employer-sponsored plans. (It should be noted that distributions from governmental 457(b) deferred-compensation plans are not subject to the 10% distribution penalty, regardless of the participant’s age at distribution.)
The new law expands the definition of “qualified public safety employees” to include federal workers, and extends the exception to governmental defined-contribution plans as well.
By expanding the definition of “qualified public safety employees” to include federal workers, the law opened the door to thousands of customs workers, border-protection officers, and air-traffic controllers, as well as law-enforcement officers and firefighters, all of whom now have the potential to make early withdrawals from their retirement plans without incurring penalties. Of course, they still will be expected to pay regular income tax.
Similarly, by allowing qualified penalty-free withdrawals from any governmental plan as defined by Code Section 4149(d), including defined-contribution plans, the government significantly enlarged the pool of potential participants who may be eligible for penalty-free early withdrawals.
The new legislation becomes effective on January 1, 2016, and will apply to distributions made after December 31, 2015. Sponsors of governmental defined-contribution plans are advised to review their administrative procedures to accommodate this expanded exception to the 10% penalty tax on early distributions.

Tips on Investing in the TSP (Thrift Savings Plan for Federal Workers) by Morningstar

Does the Government's Retirement Plan Measure Up?
By Christine Benz | 08-17-10 | 06:00 AM |

Question: As a government worker, I'm eligible to invest in the Thrift Savings Plan for my retirement. I'd like an objective view of the quality of the options, and I'd also like to be able to enter my complete portfolio on your site but can't find matches for the TSP funds on Morningstar.com. What do you think of the plan, and can you think of any funds that would be good proxies for the TSP's holdings? What is it missing?


Answer: I recently wrote an article about workarounds in case you can't find information for one of your investments on Morningstar.com. And the TSP options, while they have millions of investors in the U.S. government and armed forces, fall into that category. In short, I'd call the plan a winner and well worth investing in if Uncle Sam is your employer.


Cheap, Simple, and Effective
Although some retirement plans are chock-full of overpriced investment options and layers of administrative costs, the TSP lands at the opposite end of the spectrum. Most of the options are index funds (or index-based funds), meaning they track a given market benchmark and don't need to pay an active stock-picker for his or her services. ( BlackRock BLK) manages the index funds in the plan.) TSP participants paid just 0.028% in total costs in 2009, meaning that $0.28 of every $1,000 invested went for expenses. Although that's a touch more than what participants paid in 2007 and 2008, it's still an amazing deal.


The plan also earns points for simplicity and ease of use. The streamlined lineup, with four index funds, a government-securities offering, and five target-maturity vehicles, is about as utilitarian as they come, and provides exposure to the basic asset classes that should form the foundation of every investor's portfolio.


Here's the lowdown of the investment options in the TSP, as well as ideas for proxies you can use in Morningstar's portfolio-tracking and X-Ray tools. Note that the proxies aren't perfect because in all cases their expenses are higher than the options in the TSP.


C Fund (Common Stock Index)
The C Fund tracks the S&P 500 Index, which focuses on large-cap U.S. stocks.


C Fund Proxy: iShares S&P 500 (SPY SPY) or Vanguard Institutional Index (VINIX)


S Fund (Small Cap Stock Index)
The S Fund tracks the Dow Jones U.S. Completion Total Stock Market Index, which consists of U.S. companies not included in the S&P 500 (mainly small- and mid-caps).


S Fund Proxy: Fidelity Spartan Extended Market Index (FSEMX)


I Fund (International Stock Index)
The I Fund tracks the MSCI EAFE Index, which tracks the performance of developed foreign markets.


I Fund Proxy: iShares MSCI EAFE (EFA)


G Fund (Government Securities)
The G Fund invests in short-term U.S. Treasury securities that are specifically issued to the TSP.


G Fund Proxy: It's tricky to find a precise proxy for the G Fund, mainly because the securities it owns are for G Fund participants only; you won't find them in other mutual funds. However, Vanguard Short-Term Treasury (VFISX) is a reasonable stand-in.


F Fund (Fixed-Income Index)
The F Fund is a total market bond market index fund that tracks the Barcap U.S. Aggregate Bond Index, which includes U.S. government bonds, mortgage-backed bonds, and corporate bonds.


F Fund Proxy: Vanguard Total Bond Market Index (VBMFX) or iShares Barclays Aggregate Bond (AGG).


L Fund
The L Funds are target-date offerings composed of the above-mentioned funds. In general, the L Funds tend to be more conservative than other target-date offerings geared toward the same retirement date; that conservatism is especially pronounced in the funds for investors nearing retirement. Not only do the funds have more bonds than the typical target-date fund for that same age band, but they also feature heavier exposure to government bonds.


L Fund Proxies: Because target-date funds vary so broadly in terms of their asset allocations and underlying holdings, L Fund holders would do well to find the allocations of their particular L fund, then use the proxies above to simulate an L fund's weightings in each holding.


What It's Missing
As good as the TSP is, it doesn't provide exposure to every nook and cranny of the market. Thus, investors looking to add to their holdings outside the TSP (such as in an IRA or Roth IRA) should explore a few key areas.

For example, the two bond funds in the plan, while solid, don't provide exposure to Treasury Inflation-Protected Securities; nor do they own lower-quality (junk) bonds or international or emerging-markets bond funds. Thus, TSP investors might devote a small share of their fixed-income portfolios to these asset classes. Morningstar's Fund Analyst Picks are a good place to start. (The inflation-protected bond and multisector bond categories would be good ones to explore.)


And though the I Fund provides broad-based foreign-stock exposure, the MSCI index it tracks doesn't encompass fast-growing emerging markets such as those in Asia, Latin America, and Eastern Europe. Thus, risk-tolerant investors might want to venture into an emerging-markets stock or small-cap international stock fund for a small share of their portfolios.


Finally, as noted above, the L funds within the TSP lineup are generally pretty conservative, so risk-tolerant, longer-term investors in the L funds might consider tipping more of their portfolios into equities than is the case for the prepackaged target-date versions.

Where the Jobs Will Be (WSJ)

Landing a Job of the Future Takes a Two-Track Mind
Career Experts Say Positions in Growing Fields Will Require an In-Demand Degree Coupled With Skills in Emerging Trends


By DIANA MIDDLETON

If you're gearing up for a job search now as an undergraduate or returning student, there are several bright spots where new jobs and promising career paths are expected to emerge in the next few years.

Technology, health care and education will continue to be hot job sectors, according to the Bureau of Labor Statistics' outlook for job growth between 2008 and 2018. But those and other fields will yield new opportunities, and even some tried-and-true fields will bring some new jobs that will combine a variety of skill sets.



The degrees employers say they'll most look for include finance, engineering and computer science, says Andrea Koncz, employment-information manager at the National Association of Colleges and Employers. But to land the jobs that will see some of the most growth, job seekers will need to branch out and pick up secondary skills or combine hard science study with softer skills, career experts say, which many students already are doing. "Students are positioned well for future employment, particularly in specialized fields," Ms. Koncz says.

Career experts say the key to securing jobs in growing fields will be coupling an in-demand degree with expertise in emerging trends. For example, communications pros will have to master social media and the analytics that come with it; nursing students will have to learn about risk management and electronic records; and techies will need to keep up with the latest in Web marketing, user-experience design and other Web-related skills.

Technology Twists


More than two million new technology-related jobs are expected to be created by 2018, according to the BLS. Jobs that are expected to grow faster than average include computer-network administrators, data-communications analysts and Web developers. Recruiters anticipate that data-loss prevention, information technology, online security and risk management will also show strong growth.

The Next Finance Hiring Hot Spots
A computer-science degree and a working knowledge of data security are critical to landing these jobs. Common areas of undergraduate study for these fields include some of the usual suspects, such as computer science, information science and management-information systems.

But those might not be enough. That's because not all of those jobs will be purely techie in nature. David Foote, chief executive officer of IT research firm Foote Partners, advises current computer-science students to couple their degrees with studies in marketing, accounting or finance. "Before, people widely believed that all you needed to have were deep, nerdy skills," Mr. Foote says. "But companies are looking for people with multiple skill sets who can move fluidly with marketing or operations."

Social media has opened the door to the growth of new kinds of jobs. As companies turn to sites like Twitter, LinkedIn and Facebook to promote their brands, capture new customers and even post job openings, they will need to hire people skilled in harnessing these tools, Mr. Foote says. In most cases, these duties will be folded into a marketing position, although large companies such as Coca-Cola Co. are creating entire teams devoted exclusively to social media.

Similarly, employment for public-relations positions should increase 24% by 2018. Job titles—like interactive creative director—will reflect the duality of the required skill sets.

Back to School
Students will have to study strategy to maximize relationships between third-party content providers and their company's Web team. Other key skills will be search-engine optimization to maximize Web traffic and marketing analytics to decipher the company's target demographic, says Donna Farrugia, executive director of Creative Group, a marketing and advertising staffing agency in Menlo Park, Calif.

Many universities and community colleges are offering certification programs focused on burgeoning sectors. For example, the University of California at Los Angeles's extension program offers a certificate in information design.

That, program, like similar certificate studies at other schools, aims to give students an edge in Web site search optimization—a major attraction for Web-based companies who want to boost user traffic, says Cathy Sandeen, dean of UCLA's extension program.

User-experience design—a sort of architecture for information that Web viewers see—is another emerging field. Jobs there include experience specialists and product designers at firms ranging from computer-game companies to e-commerce Web sites.

Ms. Sandeen says the school will offer a certificate program for user-experience design as well, at a cost of about $3,000 to $5,000. The program will run one to two years, depending on a student's schedule, and will couple product design with consumer psychology and behavior.

"Our students [will] learn to think like anthropologists, evaluating how easy it is to utilize the products," she says.

Not surprisingly, green technology, including solar and wind energy and green construction, are also booming areas. Engineers who can mastermind high-voltage electric grids, for example, will have a great advantage over other job applicants, says Greg Netland, who oversees recruiting for the U.S., Latin America and Canada for Sapphire Technologies, an IT staffing firm in Woburn, Mass. that is a division of Randstad.

"Global sustainability will become more important to employers," Mr. Netland says. "It cuts costs, making experts in the field highly attractive to employers."

Jobs in alternative-energy systems, including wind and solar energy, will require a variety of skills: engineers to design systems, consultants who will audit companies' existing energy needs, and those who will install and maintain the systems.

Financial Opportunities
Despite the slashing of positions seen in the financial sector during the economic crisis, recruiters also expect thousands of new jobs to be created in the compliance field, says Dawn Fay, district New York/New Jersey president of Robert Half International.

Ms. Fay counsels job seekers to look at the misdeeds of the past year or two to identify where new jobs will bloom in the financial sector. "It was a year of Ponzi schemes and banking meltdowns," she says. "Be strategic and position yourself as someone who can mitigate those risks."

That makes risk management an emerging specialty with strong growth in jobs expected. Those on track to be financial analysts can get additional certification in risk management through organizations like the Risk Management Association or the Risk and Insurance Management Society.

"Risk management was a mainstay in financial companies, but I believe it will be present in every Fortune 500 company," says Jeff Joerres, chairman and chief executive officer at staffing firm Manpower Inc.

Hospital Upgrades
Health care is expected to continue to see a surge in hiring, with more than four million new openings estimated by 2018, according to the BLS. Hiring for physical and occupational therapists will likely be strongest. But new specialties are popping up, particularly in case management, says Brad Ellis, a partner with Kaye Bassman International, an executive-search firm based in Plano, Texas.

Case managers do everything from managing the flow of information between practitioner and insurance company to mitigating risk to the hospital.

"If you're a licensed nurse, for example, getting a certificate in risk management from the state board of health would make you extremely competitive," Mr. Ellis says.

Harris Miller, president of the Career College Association in Washington, D.C., says IT will be increasingly important in the quest to drive down health-care costs, too. Students specializing in nursing informatics, which combines general nursing with computer and information sciences, at the master's degree level will swap a clipboard for a smart phone to manage patient data. Schools like Vanderbilt University are offering nursing informatics degrees via distance learning, and certification is offered through American Nurses Credentialing Center, based in Silver Springs, Md.

The strong push toward making medical records and information more accessible through computerized record-keeping means opportunity, Mr. Miller says. "This is going to require people who are skilled in the hardware and software of nursing informatics."

Write to Diana Middleton at diana.middleton@wsj.com

Economic Stimulus Plan Jobs - Where to Look (Kiplingers)

Land a Government Job Now
Most of the new jobs being created by the President's economic-stimulus package are outside the Washington, D.C., area. Here's how to benefit, no matter where you live.
By Marty Nemko, Contributing Columnist, Kiplinger.com
May 21, 2009

President Obama's budget projects hundreds of thousands of new job openings in government and for government contractors during his first term. How do you find and land one well suited to you? Here's a guide.

Where are the jobs?

Especially when aiming for a government job, I reject the standard career-counselor advice to use your network to gain access to people with the power to hire you. My clients increasingly find that it's more time-effective to search the best job Web sites regularly by keyword and zip code for on-target job openings and then craft a top-notch application for each.

So where are the jobs?

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About 85% of federal jobs are not in D.C. They're typically in major cities, both around the country and overseas.
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To access the federal-job postings, start with www.usajobs.gov, which, as of this writing, lists 47,059 openings. That site has recently added a link for positions created by the stimulus package. Many of those positions will be filled through accelerated hiring procedures. To access that directly, go to http://jobsearch.usajobs.gov/a9recoveryjobs.asp.
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Visit the individual Web sites of your favorite federal agencies. You can access the major ones from http://dcjobsource.com/fed.html. An agency may have special positions and recruitment programs listed only on its site. That means you'll be competing with fewer job seekers. Also, some federal agencies -- for example, the FBI, Federal Reserve, Government Accountability Office and CIA -- don't have to advertise their jobs on www.usajobs.gov.
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An even more under-the-radar source of federal jobs is www.fedbizopps.gov. It lists positions, including many overseas (Iraq or Afghanistan, anyone?), that are filled via personal service contracts. Those jobs are less secure than government jobs but usually pay more.
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Federal agencies, especially the EPA, State Department, FBI, FDIC and Treasury Department, often fill unadvertised openings at job fairs. Some are listed at www.govcentral.com/careers/articles/1871 and at www.fedjobs.com/chat/jobfairs.html.
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Some private temporary agencies staff federal temp positions. Some of those agencies are listed on www.state.gov/m/dghr/flo/c21666.htm.
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If you're a student, a good route to a permanent government job is a federal internship. The site www.makingthedifference.org lists 200 federal internship programs. Also see www.studentjobs.gov.
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There's a directory of federal jobs set aside for veterans and people with disabilities: apps.opm.gov/sppc_directory.
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For state, county and city jobs, visit your local government's Web site. To find yours, enter, for example, "government jobs" and "Chicago" in a search engine.
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Lots of stimulus dollars are going to federal contractors -- independent firms that the government hires to do its bidding. Want to become one? The government's portal for potential contractors is www.fedbizopps.gov. Also see www.recovery.gov, which reports where stimulus dollars are going. Want to work for a government contractor? The 100 largest are listed at www.usaspending.gov. Smaller contractors list openings on their own site. The good news is that many or most such openings are aggregated, along with literally millions of other job openings, at www.indeed.com and www.simplyhired.com. Another approach: Regularly check the business section of your local newspaper or a dedicated business periodical, such as Crain's or Business Times, for announcements or articles about companies that have just received government contracts.

Which jobs should you apply for?

1.

Because there are so many applicants for most government jobs, you probably won't stand a chance unless you at least minimally meet most or all the requirements listed in the job announcement. Save your energy for the good fits. There are so many government openings, for everything from chef to chief, you'll likely find plenty.
2.

Federal jobs will be most abundant in areas the Obama administration has listed as priorities: renewable energy, the environment, infrastructure, health care and education. Lily Whiteman, author of How to Land a Top-Paying Federal Job, says jobs are particularly plentiful for contracts and grants managers, procurement officers, financial managers/auditors, IT specialists, intelligence experts, and people with knowledge of the culture and language of Middle East countries.
3.

Don't worry if your first government job isn't perfect -- your priority should probably be just to get into the government. That means applying for jobs you're fully or even overqualified for. Once you're a government employee, you'll find it easier to transfer to something you'll like better.

Landing the job

Finding on-target job openings is the easy part. The challenge is to become the winning candidate -- especially now, with all the publicity around ObamaJobs and the private sector offering so few full-time, long-term positions with benefits.

Applying for a government job is usually cumbersome. That's good news for you. So many people get frustrated with the application process that they do a shoddy job. If you craft a solid application for all the jobs you can, you'll likely prevail. And remember, the pot at the end of the rainbow is quite golden: moderate work hours, unmatched job security, great benefits, and ample vacation and holidays. Thank you, taxpayers.

My job-seeking clients are finding these to be the most potent approaches to beating out the competition:

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Research your target agency. Whiteman suggests you review its Web site and, particularly, its recent press releases. Then reflect your knowledge of the agency in your application.
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Call the hiring manager to get application tips. Yes, there's a chance you'll be viewed as pushy, but there's a greater chance you'll get inside information or even develop enough of a relationship to gain an edge against the competition.
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Use a two-column cover letter. Hiring managers are overwhelmed with applications, so yours should quickly and clearly demonstrate that you're a great fit for the position: On the left side, list the job's major qualifications; on the right, say how you meet each requirement.
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Tell PAR stories. In interviews and in job-application essays (in federal job applications they're usually called KSAs, which stands for knowledge, skills and abilities), tell one or more anecdotes that demonstrate you have one or more key attributes listed in the job announcement. Each anecdote should usually follow the PAR formula: a problem you faced, how you approached it, and its positive resolution.
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Create a portfolio. Consider creating a Web site consisting of your work products and resume. Of course, include its URL on your job applications.
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Make sure your message is clear. Whiteman says that before submitting an application, it must pass the "30-second-test." Ask a person you trust to identify your best attributes from your application in 30 seconds. If he or she can't, it's unlikely a hiring manager will be able to do so.

Marty Nemko (bio) is a career coach and author of Cool Careers for Dummies.