Federal Daily News

Federal employee groups find little to cheer about in president's budget proposal

Employee groups reacted sharply to President Obama’s fiscal 2013 budget proposal which—although it would end the two-year pay freeze and give feds a modest 0.5 percent pay raise—includes proposals to raise feds’ contributions to their retirements by 1.2 percent over three years, and would do away with the Federal Employees Retirement System supplement for new employees.

“In order to make reasonable changes to Federal worker retirement, while maintaining the ability to attract and retain highly qualified individuals, the Administration proposes to increase the employee contribution toward accruing retirement costs by 1.2 percent over three years beginning in 2013,” stated the budget text released today.

“Under the proposed plan, the amount of the employee pension would remain unchanged,” the budget stated. “We estimate this proposal will save $27 billion over 10 years. In addition, the Administration is proposing to eliminate the FERS Annuity Supplement for new employees. Overall, these changes are not expected to have a negative impact on the Administration’s ability to manage its human resources, nor inhibit the Government’s ability to serve the American people.”

The head of the largest federal employee union immediately shot back his reaction.

“Federal employees have already contributed $60 billion with pay freezes,” said American Federation of Government Employees National President John Gage in a Feb. 13 statement. “It’s been $60 billion, plus now $27 billion and I don’t see any jobs created. The White House is putting money into creating new jobs and then attacking the jobs that we have. “

Gage called the hit on federal retirements “a sop to the right wing,” and said that “the White House and congressional leaders should not treat federal employees’ paychecks like an ATM machine.”

The Federal Managers Association, as well as other groups, noted that the increased pension contribution would make the proposed 2013 pay increase a wash-out. “Under this proposal, civil servants would see an immediate loss of 0.4 percent in take home pay, effectively canceling out the 0.5 percent increase in pay proposed by the president,” FMA said.

“We at FMA continue to oppose any proposal which calls for federal employees to contribute more towards their retirement plan, which is an immediate decrease in the take home pay of 2 million hard working Americans,” FMA National President Patricia Niehaus said in a statement. “While Congress is simultaneously debating how to put more money into the paychecks of American citizens, it is incomprehensible that the same rationale does not apply to federal employees.”

The National Treasury Employees Union struck a tone that was a bit more conciliatory on one issue, noting that the budget limited the elimination of the FERS early retirement supplement to new hires.

“Retaining the FERS supplement for current employees clearly is the right thing to do,” said NTEU President Colleen Kelley in a statement. “It would be unfair to change the rules to take this from current employees at or near meeting the age and service requirements to retire prior to the age of 62.”

The National Federation of Federal Employees, on the other hand, stood firm on the annuity supplement, stating in a press release that “NFFE will never support a bill that treats new employees any different than their predecessors.”

The union also offered some quick math on the effect the proposed budget would have on an employee making $50,000 in 2013.

“[An] employee making $50,000 per year would see a 0.4 percent increase in their retirement contribution along with a 0.5 percent increase in their pay,” the union said. “This results in a net 0.1 percent pay increase, amounting to a total of $50 for the year, or $4.16 each month. After adjusting for inflation, this turns into a third year of net pay loss for federal employees.”



 

Reader comments

Tue, Feb 28, 2012 WTF!

Guantanamo detainees get new $750G soccer field!
Forgive me for thinking this is a waste of my tax dollars! For this I have been kicked around as a federal employee---again I ask what the???

Fri, Feb 17, 2012

$27 billion....big deal! At the cost of the working class. Let's take a look at the "pork" spending that continues to go on and I will bet you will find a whole lot more than $27 billion.

Wed, Feb 15, 2012

Federal employees have already contributed over $60 billion with pay freezes and what if any jobs were created and what savings were realized.. The fact of the matter is - there were no jobs created as we have been under a hiring freeze and we still are....

Wed, Feb 15, 2012

Does anyone really think for one second that you as a Federal Employee matters to the the top 1%? When TSHF the lawmakers and the millionaires will be in their bunkers while the rest of us are left twisting in the wind.

Wed, Feb 15, 2012

USA Today writes:
US Recovered More Than $4 Billion In Healthcare Fraud Losses. CNN (2/15, Cratty) reports on its website, "The federal government recovered almost $4.1 billion stolen in health care fraud schemes during fiscal year 2011, Obama administration officials announced Tuesday. The figure is up 58 percent from 2009. 'This is an unprecedented achievement -- and it represents the highest amount ever recovered in a single year,' said Attorney General Eric Holder. The Justice Department reported more than 1,400 people were charged with fraud in 500 cases," with more than 700 convictions.

So my question to Congress and President Obama is how do they think this $4 Billion recovery came about? It happened because of the hard working federal employees who prosecute and staff that support and perform the many long hours of work and dedication to protect the American taxpayers from these fradulent schemes. This type of excellence occurs every day in all of government because government employees, with some exceptions who give us all a bad name, care about their work, their government and keeping America strong. So, thank you, Congress and Mr. President, for your show of respect and support by continuing to chip away at our livelihood. Being paid for what you do, as well as being allowed to advance in pay and job position, is how job satisfaction works- it fosters good morale and helps retain good employees. The worst part of all of this is, by continuing to freeze or take away benefits, they are representing (poor choice of word there) to the public that they do not respect or care about the work that we do and the work that we do ironically enough is to carry out and implement the laws and mandates THAT THEY PASS.

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