With TSP and FERS, the retirement benefits aren't nearly as wonderful as they were under the old retirement system. Now Federal employees have to plan and save for their futures just like everyone in private industry has to do, and the markets have the same dramatic effects on those savings.
I'd have given my left nut to be grandfathered into the old plan though... under that system, current GS 14/15 retirees with six-digit salaries live like kings!
All at our expense, of course... which is why they changed it.
I have no problem with Government employees receiving a 2% raise if they're doing a good job. However, one of the biggest problems in Government is in determining who is actually doing a good job, and then in getting rid of those who aren't. They tried to fix these problems with the implementation of a pay-banding system to replace the old GS scale, but every agency that switched has since gone back to the standard GS because of all the new headaches they encountered with the banding rating schemes.
But, if you think that new or recent Government employees have drastically better retirement plans than you, you're wrong. Everyone is in the same boat now -- completely dependent on savings and markets -- so private and government employees alike need to ensure that our boat doesn't sink!