Doges dismissals disrupt the retirement plans for federal workers

When Katherine Ann Reniers bought a house in Rockville, Maryland, two years ago, she thought that her financial future was traced.

Reniers, 53, was on the right track for having served two decades in the federal government in November 2025. At this time Pension which paid nearly $ 6,000 per month and covered health insurance, according to documents examined by Business Insider. These monthly retirement checks would increase for each year that Reniers was working beyond their 20th anniversary.

Reniers’ plans suddenly changed in March, when she received emails informed her before that her position at the American agency for international development would be abolished on July 1 in the scanning of dismissals known as the force reduction commanded by the Doge de la Maison Blanche – five months short of 20 years of Reners.

The gap means that Reniers will not be able to receive his full federal pension up to 62 years old, And on the basis of federal rules for retirement from the external service, its monthly payments will be estimated at $ 3,000 less than her planned.

“I panicked,” said Reniers, a single mother of two children, in Bi. “I realized that it was not enough to cover my mortgage loans and my monthly medical bills.”

Reniers is one of the tens of thousands of government employees whose life has been turned upside down by DOGE movements reduce federal agencies and reduce costs. The changes create an economic uncertainty for many Americans, especially those close to retirement.

An administration official told BI that “the State Department is committed to providing additional resources and advantages to ensure the security of USAID employees of the service”.

Reniers thought she was “essential”

After the arrival of Doge at USAID in January, chaos ensued. Employees received “Road fork“Email offering complete remuneration and benefits until September to those who resigned voluntarily. They were temporarily locked from computer systems and said they stay at home as Washington, DC The headquarters was closed.

In February, Reniers said that management initially told her that she was an “essential” employee. Reniers has become head of division for Europe at the USAID USAID humanitarian office. The office provides food, water and sanitation, an emergency shelter and health care for people confronted with various crises around the world. The Reniers division covered Ukraine, Turkey and other countries.

It made it think of Reniers that she was protected from widespread layoffs.

“So I didn’t take the fork, and now I get out of the foot,” said Reniers.

On February 24, Reniers received an email indicating that it was placed on administrative leave and that a subordinate would take control of its functions. On March 27, she was informed that her position was abolished.

Another email asked employees to volunteer to “support critical work” while the agency transforms tasks to the State Department. Reniers said she was planning to come back for a few weeks because her colleagues are exhausted and need help.

Secretary of State Marco Rubio On March 28, Congress informed Reorganization and previously indicated that around 83% of the agency’s programs had been reduced.

Backup plan

Meanwhile, Reniers said she had panic attacks while trying to find a financial backup plan. She did not intend to retire for at least four years, when her son obtained her graduate of high school.

Now that Reniers will not reach 20 years of federal service, she estimated that her retirement services will represent about half of which she would have qualified in November. For external service employees with less than two decades of service, monthly retirement calculations Follow this formula: The highest annual salary of an employee, multiplied by 20, multiplied by 1% and divided by 12. Reniers won $ 177,200 per year, which makes his new pension just under $ 3,000 per month under this formula.

If it had reached 20 years old, this 1% would have been 1.7% more. This higher rate, as well as an additional annuity, would have given it a pension of around $ 6,000 per month – about double what it expects to get now.

In addition, when she could have retired at any time after her 20th anniversary and having received this full board, she will not be eligible for the small pension before the age of 62.

Reniers will receive a starting indemnity of an annual salary value of one year and also plans to sell an apartment that she has in Belgium to help establish a financial security net for monthly expenses.

“I’m lucky to have that, so I can make sure to keep my house in Maryland,” she said. “How can I find a job with a similar salary when I am 53 years old with a handicap?”

When Reniers is 59 years, she can start receiving payments from a separate federal retirement account called penalty savings plan. At 62, his pension and his social security come into play.

In the short term, finding affordable health insurance is the main concern of Reniers. It was diagnosed with rheumatoid arthritis several years ago and has injections of bihebdomadaire drugs to manage inflammation and joint pain. Once dismissed on July 1, she will have federal health insurance until the end of the month, but must then find another police for her family, which will probably be more expensive.

“I’m so angry at the moment,” said Reniers, adding that participating in demonstrations and talking to Capitol Hill legislators helps facilitate part of anxiety. “This is what I want to spend my time.”

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