Congress’s Assault on Federal Retirement and Compensation is an Assault on the Critical Government Services Americans Count On
On Wednesday, April 30, the House Oversight and Government Reform Committee is proposing to cut $50 billion over the next ten years from the Federal Employee Retirement System (FERS) and make other changes that undermine our nonpartisan civil service. Congress will be considering passing these spending cuts in a budget reconciliation bill that will include between $1.5 to $2 trillion in spending cuts to offset a portion of $4.5 trillion in tax cuts for the wealthy and for corporations (the $2.5 to 3 billion in tax cuts that aren’t offset will result in a significant increase to the federal deficit).
SEND LETTERS TO CONGRESS TO OPPOSE CUTS TO Federal Employee Retirement Benefits and Reductions in Take-Home Pay
IFPTE continues to urge Congress not to cut federal employee retirement benefits and gut civil service protections for newly hired federal workers. These cuts will not only harm federal workers and result in a mass exodus out of the federal workforce, it will also diminish the federal services Americans and our economy counts on – Social Security, Medicare, the US Postal Service, the VA, defense and national security, and all the federal functions that protect consumers and ensure food, water, and drug safety.
While $50 billion is a small percentage of the $2 trillion in spending cut target or the $4.5 trillion of tax cuts, these cuts to federal retirement benefits will have a big impact on federal workers’ compensation and benefits by reducing the take-home pay of federal workers, reducing the income of federal workers who choose to or are forced to retire early, and reducing the retirement income that future retirees receive.
The proposals also go after civil service protections by making any newly hired federal workers choose between “at will” employment and paying a lower FERS contribution rate or retaining merit system rights and paying a higher FERS contribution rate. At-will means these federal workers can be fired at any time for no reason and will not have the merit system rights to appeal their firing. Merit system rights are not merely protections for federal workers, they protect Americans by providing accountable and professional management of government that works for the American public, not partisan causes and not corrupt private interests.
Here are the provisions attacking federal employee retirement and civil service protections:
Raises the FERS retirement contribution rate for all federal and postal employees to 4.4% of their salary.
Eliminates the FERS supplement payment for federal employees retiring before age 62 (federal occupations with retirement required before age 62 are exempted).
Bases a federal retiree’s annuity payment on their average highest five earning years, instead of the current highest three earning years.
Makes new federal employee hires choose to be “at will” employees without merit system protections or choose to maintain merit system protections and pay an additional 5% FERS contribution rate, totally 9.4% of pay, which is effectively a 5% pay cut.
Charges federal employees a fee for Merit Systems Protection Board (MSPB) filings equivalent to the fee for filing a civil lawsuit in federal district court, which is $350.
The special rules for budget reconciliation bills allow the legislation to pass the Senate with a simple majority and exclude any filibuster or 60-vote threshold to advance the bill to a final vote. This budget reconciliation bill is being crafted by the majority party in the House and Senate and can pass and be enacted with only Republican votes in both chambers of Congress.
Federal employees are already facing a Trump Administration that is dismantling government agencies and laying off federal workers who perform critical functions and provide important services. So many IFPTE members in the federal workforce are already taking a pay cut to work for the federal government and serve the public. Slashing retirement benefits and reducing the take-home pay of federal workers will trigger an exodus of experienced and skilled federal workers and hollow out agencies that provide essential services and functions. Congress needs to hear from everyday Americans that lawmakers should be preserving the government’s ability to recruit and retain the best talent America has to offer to address the challenges our nation faces, support our national security and economic prosperity, provide the American people with high-quality services, and keep our communities safe.