OPINION:
Forget the federal pay schedule. Those of us in the private sector should be taking a closer look at the Thrift Savings Plan, which is the federal 401(k). The expense ratio on it is between 3 and 4 basis points. The expense ratio for the rest of the workforce has a median of approximately 125 basis points.
Do you know what the difference is between 3 basis points and 125 basis points over a 30-year period? If you start with a base return of 7 percent, the average private-sector 401(k) loses 30 percent over that time frame, compared with only about 11 percent for the federal workforce. Why this does not constitute a scandal is beyond me.
SAMUEL BURKEEN
Reston, Va.
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