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Federal Daily News

House OKs measure to raise employee contribution to retirement

The House on May 10 passed a budget reconciliation package that includes a measure to require federal employees to pay an additional 5 percent of salary toward retirement. The increase would be phased in over five years, starting in 2013. The Sequester Replacement Reconciliation Act of 2012 (H.R. 5652) passed on a vote of 218 to 199.

The bill also would require new federal employees who are hired after 2012 and have fewer than five years of previous federal service to immediately begin paying 5.8 percent of salary toward retirement. Additionally, the bill would eliminate the annuity supplement for employees hired after 2012 who retire before they are eligible for Social Security.

Federal Employees Retirement System employees currently contribute 0.8 percent of salary toward a defined benefit pension, and 6.2 percent to Social Security. Civil Service Retirement System employees currently contribute 7 percent toward a defined benefit plan.

National Treasury Employees Union President Colleen Kelley issued a statement after the bill’s passage condemning the measure. “The latest budget measure pushed by House leadership assaults Americans’ sense of fairness by undercutting vital services and singling out middle-class federal employees to yet again foot the bill,” Kelley stated.


 

Reader comments

Thu, May 24, 2012

My name is Tim H. and I am a Federal Employee.

I’m Mad as hell and I am not going to take it anymore!

The 5th shaft I have received from the government and is very evilly hidden in legislation that sounds like a benefit for our ailing economy, Middle Class Tax Relief and Job Creation Act of 2011 (Engrossed in House [Passed House] - EH) [H.R.3630.EH]hidden on page 355, is the process of abolishing what has been touted as the third tier to my Government retirement benefits. The Social Security supplement is a benefit for Federal employees; that are received at their minim retirement age, in my case 56. It is a check derived from a percentage of Social Security I would receive at 62, and is paid to me monthly from 56 to 62. This represents $90,000 to me and most other Federal employees, it is stated in the bill to end December 29, 2012 1.5 years before I am eligible to get it.

With this benefit abolished I will have to work 6 years longer than originally planned.

Most Government employees do not even know this is going on and it is being covertly piggy backed on a complex bill in congress.

I remember hearing on the news in 1986, that the Congress was diligently trying to put a stop to a bill already put in place by them, that would automatically give them a 100% rise if they did not vote against it, yes you guessed it, they did not get it stopped and their pay went for $86,000 to $156,000, who gets these kind of raises? Not I, not you, my pay has been frozen for the last several years.

What do you think? Our Senators and Congress after one or two terms get a retirement for the rest of their lives and I am sure it is more than I will get from both my military and Civil Service retirements I spent over 34 years for. Do you think they are slipping in legislation to reduce their benefits, I think not!

Like I said I am mad as hell and I am not going to take it anymore, I am not rolling over on my overtime benefits, the law is in my side. Also I am getting the word out to federal employees what they are trying to do to our Social Security benefit supplement; I also am looking had into what I can do next to stand up for what I have earned and am entitled to.

Peace,

Tim H.




Fri, May 18, 2012 Larry Washington, DC

The Daily posts that if the bill were to be passed that FERS employees hired after 2012 would lose the annuity supplement. That tells me that it is to be grandfathered in but that isn't how it appears to be workded in the actual bill. What is the real truth concerning this? Does anybody know? Although it doesn't look like the Senate will pass it anyway, but the republicans sure will since they have it in for the Federal Employee. Lets wipe out any semblance of a middle class and make it just the rich and the poor.

Tue, May 15, 2012 Texas

Lets look at this another way - they wanted to freeze our pay for 5 years starting this yearand now they are cutting our pay by 5% 'phased' over 5 years starting 2013 - - sure looks like a pay cut to me. So when the bill collectors take me to court should I direct them to sue Congress instead? I had hoped to retire in 3 years, at 66, but now may have to dig in and hold onto this job just to keep my nose above water!!! Thank You Congress and you too Mr. President for helping to increase the sales of lottery tickets across our country!!

Mon, May 14, 2012

I do mind the additional 5.8%. If they take any more money out of my current check that is less money I can put into the TSP. I can only contribute 6% now, so there goes my entire voluntary TSP contribution in a few years. I better start looking for a good sturdy cardboard box for my family to live in once I retire because I won't be able to make a house payment using only my federal annuity; I will need my TSP to get me through each month. Some of us have parents and handicapped children that WE will support in our retirement. No one else is going to be around to bail me out when I get behind in payments. All because the "House" thought I have extra money to give - NOT!

Mon, May 14, 2012 Washington D.C.

Is Congress also taking a financial hit on their benefits? I think not!!! They should require any financial hits that federal employees take, Cangress must take also.

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