Trump Budget Targets Federal-Postal Community; Chaffetz to Exit Congress June 30Posted by Bob Levi on 05/19/17
Early next week, the White House Office of Management and Budget will unveil President Trump’s detailed fiscal year 2018 budget proposal. According to press accounts, UPMA members should be prepared to actively communicate their strong objection to numerous provisions included in it. Among the most severe attacks are those directed against federal and postal retirement. The Trump Budget would:
- Increase FERS employee contributions by 1 percentage point each year until it equals the employer contribution. This could be about a 6 percent increase in the employee contribution.
- Base future retirement benefits on the average of the highest 5 years of salary, rather than the current high-3
- Abolish COLAs for current and future FERS annuitants
- Reduce the CSRS COLA by 0.5 percent
- Eliminate supplemental payments for FERS retirees who leave service, beginning in calendar 2018.
On Thursday, House Oversight and Government Reform Committee Chairman Jason Chaffetz (R-UT) announced that he will vacate his congressional seat on June 30. His departure may complicate House of Representatives consideration of HR 756, the Postal Reform Act of 2017. This the postal relief bill that he introduced with the ranking Democrat on the committee, Rep. Elijah Cummings (D-MD).