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Federal Daily News

Obama signs federal pension provision

It’s official—President Obama on Feb. 22 signed into law the requirement that employees who join the federal workforce after Dec. 31, 2012, pay a higher percentage of their salary toward their pensions. Current federal employees will not be affected by the new requirement.

Those new employees hired after Dec. 31 who have less than five years of creditable federal service will pay 3.1 percent toward their pensions, 2.3 percent more than the 0.8 percent paid by current employees under the Federal Employees Retirement System.

The change was part of H.R. 3630, the Middle Class Tax Relief and Job Creation Act, which extends through Dec. 31, 2012, the payroll tax cut, funding for unemployment insurance benefits, and a delay in the reduction of Medicare payments paid to physicians.


 

Reader comments

Tue, Dec 18, 2012

As it is the physicians don't get much from Medicare as it is and now they are going to get less. You know what will happen? Physicians won't take Medicare, and the Medicare Patients will have to go to lower-grade physicians and won't get the quality service they deserve. As it is the Goverment was taking money out of Medicare to put into other programs and expenses. What a shame.

Fri, Feb 24, 2012 Arizona

Yeh for the middle class tax relief except for federal employees that are middle class and then we don't care about them. What a bunch of lies it all is.

Fri, Feb 24, 2012

The Name of the bill should be changed from Middle Class Tax relief, because it is not. We could change the name to "throw the Federal Employees Under the Bus Act"

Fri, Feb 24, 2012 DonS

Looks like this GOV believe its the Fed employees who are the problem with the economy. Its not the big union bailouts, enept Congress, paid off WH Or is it just the fact that they can use us like a disposable comodity.

Fri, Feb 24, 2012

The flaw to this is, it doesn't mention that new hires for Fed employees also contribute the same as everyone else toward social security and that FERS is a far cry from CSRS. I believe the public still thinks that Feds get it all handed to them, when in reality we pay it all. It really is going to be impossible to recruit new hires. But, with the continuous cuts to budgets, there won't be any jobs anyway. It's all going to crumble and people will wonder why they no longer get their tax refunds or their social security checks, but that just touches the surface. What do they think fed workers do, anyway? It's no gravy train.

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