In a move that could significantly impact federal employees nationwide, House Republicans have introduced a comprehensive plan aiming to overhaul the Federal Employees Retirement System (FERS). The proposed changes are part of a broader legislative package designed to reduce federal spending and fund tax cuts.
Key Proposals in the GOP Plan
The House Oversight Committee’s proposal includes several notable adjustments:
- Increased Employee Contributions: Current FERS employees would see their retirement contributions rise to 4.4% of their salary, a substantial increase from the existing rates of 0.8% for those hired before 2014 and 3.1% for those hired in 2013.(Government Executive)
- Revised Annuity Calculations: Retirement benefits would be based on the highest five consecutive years of salary, replacing the current “High-3” system. This change could lead to reduced annual benefits for many retirees.(Government Executive)
- Elimination of Special Retirement Supplement: The plan proposes ending the Special Retirement Supplement, which provides additional benefits to FERS retirees under the age of 62, potentially affecting federal law enforcement officers and other employees with mandatory retirement ages before 62.(Fedweek)
- Voucher System for Health Benefits: The Federal Employees Health Benefits Program (FEHBP) could transition to a voucher system, where the government provides a fixed amount toward premiums, potentially increasing out-of-pocket costs for federal employees.(NARFE)
- At-Will Employment Option for New Hires: New federal employees might be given the choice between traditional civil service protections and an “at-will” employment status, which would come with fewer job protections but lower retirement contribution rates.(Government Executive)
Reactions and Concerns
The proposed changes have sparked significant concern among federal employees and their representatives. Jacqueline Simon, policy director of the American Federation of Government Employees (AFGE), criticized the plan, stating that it would “charge people more for the benefit, and then they’re going to reduce the benefit by changing the formula for how the benefit is calculated.” Union leaders fear that these adjustments could prompt eligible workers to retire early to secure current benefits before the new rules take effect.
Brandy Moore White, president of the AFGE’s Council of Prison Locals, expressed frustration, noting that the changes could be “devastating” for correctional officers and staff who often retire in their 40s or early 50s after years of service.
Political Dynamics
While the proposal has garnered support from many Republicans, not all members of the party are in agreement. Rep. Mike Turner of Ohio joined Democrats in voting against the plan, emphasizing that federal pensions are “promises to federal workers in exchange for their dedicated service.”
The legislative package, which also includes provisions for tax cuts and increased funding for immigration enforcement, is still under negotiation. If approved, these retirement benefit changes could take effect in the coming years, leading to significant shifts in federal employment and retirement planning.(AP News)
As discussions continue, federal employees and their advocates remain vigilant, urging lawmakers to consider the long-term implications of these proposed changes on the workforce and the commitments made to public servants.
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