Shortly after Jeff Pon became Director of the Office of Personnel Management (OPM) in March, he asked Congress to act on the proposals. Then in June, the House Budget Committee issued a budget resolution on a party line vote for FY2019 that included portions of these proposals. However, so far Congress has not taken action, and the proposals remain proposals.
NTEU has worked hard on Capitol Hill educating legislators about the devastating impact the proposals would have on individual employees and the ability of federal agencies to retain and recruit workers. Here are what the packaged proposals contain:
- Significantly increasing required employee contributions for future FERS annuities, resulting in an immediate 6 to 7 percent pay cut for all employees.
- Basing future CSRS and FERS retirement benefits on the average of the high-five years of salary instead of the current high-three.
- Eliminating the FERS supplement, which approximates the value of Social Security benefits for those who retire before age 62, including law enforcement who are required to retire early.
- Eliminating the annual cost of living adjustments (COLA) for the pensions of current FERS retirees and future FERS retirees.
- Significantly reducing the COLA for the pensions of current CSRS retirees and future CSRS retirees by about 0.5 percent annually from what the current formula would provide.
The union is on guard for any attempts to turn these proposals into legislative action. As Congress wrestles with spending decisions near the end of the government fiscal year and looks to find new sources of money, cuts are always possible to federal employee retirement benefits. You can help stop that. Visit NTEU”s Legislative Action Center. And if you are not a member already, do yourself a favor and join today. Join by symply completing Standard Form 1187, Request for Payroll Deductions for Labor Organization Dues, and sending it to your chapter president. Former employees can join NTEU using the Cash Dues Form as instructed in the form.