Federal Daily News

Payroll tax bill could include federal pension provisions

A tentative agreement on a bill in Congress to extend the soon-to-expire payroll tax holiday may include provisions to require federal employees to pay more for their retirement, reports the Washington Post

The proposed compromise legislation also would fund unemployment benefits and prevent cuts to the Medicare payments received by doctors.

As negotiators continued to work on the bill, a source cited by the paper suggested that Democratic negotiators, when faced with a choice between a continued federal pay freeze or a provision to require feds to contribute more toward their pensions, may lean toward the latter option.



 

Reader comments

Thu, Feb 16, 2012 Tom Ward Retired

If the U.S. was not spending TRILLIONS of dollars in the middle east, we wouldn't be in the financial mess we are now in.

Thu, Feb 16, 2012

I think that the tax holiday should go away in favor of funding the unemployment benefits, and minimize medicare cuts. There is no reason to change our retirement system.

Thu, Feb 16, 2012

Once the get us paying more toward retirement, they'll be back later to freeze COLA and Step Increases again... To bad that the cost savings will be small compared to the damage it will do toward attracting and retaining highly qualified Federal Employees...

Thu, Feb 16, 2012

Do the fools we sent to Washington realize that they are trying to penalize Feds twice in order to look good to others? Those of us long-suffering Feds who are under the CSRS have not and will not benefit from this popular "tax holiday", so we get less to spend into the economy and then are asked to pay for the tax breaks for others. On top of a possible 4 1/2 year pay freeze that is not imposed on the private or municipal sector. Does it never end!! I will be so glad when we can vote them back out in the Fall. It will have been a short-lived victory for them, then they can go look for a job and do some real work (unless they just want to live off their millions in investments).

Thu, Feb 16, 2012

my guess is we'll see both, the pay freeze thru 2013 & increased pension contributions.

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