House GOP Budget Proposal Includes Federal Retirement Cuts

After initially displaying reticence to go along with the cuts to federal employees proposed in President Trump’s budget blueprint, House Republicans this week included similar measures in their own budget blueprint.

The proposal would require federal employees to increase their own contribution to their retirement plan, while also doing away with annuity supplements for those under the Federal Employee Retirement System (FERS).

However, neither the scope of the increased individual contribution, nor which specific employees would lose annuity supplements are outlined in the proposal. Instead, the budget will be sent with reconciliation instructions to the House Oversight and Government Reform Committee with a mandate that the committee cut a minimum of $32 billion in a manner of their choosing.

If the increased contribution ends up being the same as that proposed under President Trump’s budget plan – a one percent increase per year until individual contributions equal those under FERS – the increased contribution will amount to a six percent pay cut after a six-year span.

According to Government Executive, “Combined with reduced cost of living adjustments for people under the Civil Service Retirement System, the provisions in the Trump budget alone were estimated to decrease the deficit by $63 billion over the next decade, about twice the House bill’s required reduction.”

Government Executive also cited Jessica Klement, legislative director at the National Active and Retired Federal Employees Association, who “noted that eliminating FERS annuity supplements would leave law enforcement officers, firefighters and others with early mandatory retirement ages with limited income until they became eligible for Social Security. She called this situation ‘doubly cruel.’”

As the Washington Post points out, the proposed cuts are only the latest in what has become a recent trend of targeting federal employees’ retirement, with two previous cuts in recent years targeting federal employees hired after a future date.

The GOP budget resolution is scheduled to be marked up by the House Budget Committee tomorrow.