House Budget Committee to Consider Federal Retirement Cuts
Posted by Bob Levi on 07/18/17
Tomorrow, the House Budget Committee will begin consideration of a budget resolution drafted by committee chair, Rep. Diane Black (R-TN). The proposal would, in part, increase federal and postal employee contributions for the Federal Employee Retirement System (FERS) and eliminate the supplemental retirement for FERS employees who retiree prior to Social Security eligibility. These two proposals are included in President Trump's fiscal year 2018 budget.
As was discussed at UPMA's February Legislative Advocacy Day, one of the most dangerous threats against UPMA member retirement benefits is the congressional budget process -- more specifically, "budget reconciliation." Budget reconciliation is a vehicle buy which the Budget Committee assigns cuts to the committee with jurisdiction over certain federal programs. The House Budget Committee's just-released budget document instructs the House Oversight and Government Reform Committee, the House committee responsible for federal retirement, to come up with $32 billion in budget savings. This amount reflects a 6-year phase-in of a 6% increase in FERS contributions and the elimination of the FERS supplement. The budget document also contemplates the elimination of FERS. It also appears that the budget savings will be used to boost military spending and fund tax cuts.
UPMA members should contact their members of Congress to oppose the federal and postal retirement hits.