Government Hiring, but Retirees Running for Cash Advance Loans
Uncle Sam Tightening his Belt
Defense establishments in the country are on a hiring spree, and have hired 97,445 people in the first nine months of 2009. There’s more to this than meets the eyes as the government is also looking to retire a number of employees in order to control the budget. Should people be happy or sad? While some are getting much needed jobs, others are losing them and making a beeline for a cash advance to meet expenses. People who planned for such a day are not the ones who are worrying, but rather, those who had no plans are scurrying to find extra cash.
The departments of Defense, Homeland Security and Veterans Affairs hired a total of 97,445 personnel in the first nine months of 2009. At the same time, they offered early retirement plans to 37,000 employees working in seven other departments, which included buyout offers of an average of $25,000 for early retirement. These amounts depended on the length of service, if they had completed 25 years in service or more. The postal department made the maximum offers accounting for 81% of all offers made, and surprisingly, nearly 70% of all people who had received these offers have accepted them before the deadline, which expires at the end of the year. Other agencies are also looking at similar offers and giving their employees extended time limits to accept them. There have been no reports as to the response of the employees offered these buyouts, but what is inevitable for people who have not planned for this day is a quick visit to the loan store for a cash advance.
Agencies that are looking to lay off employees are doing so with the intention to reorganize themselves in a different way, but this does not indicate that the current employees were in any way ineligible for the jobs. The agencies may be looking to cut costs or even improve productivity with more employees. However, they are doing so at a cost, which may to some appear small, as the retirement buy outs are starting from $15,000 to $25,000.
Win Sum, Lose Sum
There have been some people who have accepted these offers, and were happy to get out of their departments and finally say good bye to their long standing government positions. These are the people who had planned for their early retirements and get involved in the community rather than look for another job. They were relieved that they had received such an offer and made the best of it. Others, however, were not so lucky, as they may have debts to pay off and responsibilities to meet and will rue their wasted opportunity if they dare accept such an offer. The buy out package, or early retirement benefit, that they get may go towards the cash advances that had already borrowed, or they may be able to put it in a savings or investment account while they look for a different job. This is a difficult time for all.