The House Oversight and Government Reform Committee recently passed a budget reconciliation bill that could significantly impact federal employees’ retirement benefits. The proposed changes include eliminating the Federal Employees Retirement System (FERS) supplement, requiring all federal employees to contribute toward their pension regardless of hire date, and changing the formula for calculating retirement benefits. Emily Whaley, a foreign military sales program manager at Robins Air Force Base in Georgia, expressed concern about the potential cuts.
Whaley, who has worked at the base for 38 years, had planned to retire on September 30 but may have to reconsider if the FERS supplement is eliminated. The supplement represents about 40% of her expected retirement income. The timing of the proposed changes is particularly troubling for employees who accepted early retirement offers without knowing their benefits could be reduced.
House committee modifies retirement benefits
Whaley said, “People trying to do the right thing, trying to retire so younger employees won’t get caught up in a reduction in force, but now we’re being forced to stay because part of our pension is gone.”
Financial advisor Sherri Goss sees the proposed changes as necessary for the long-term sustainability of federal retirement programs. “We’re at a point now with the debt in this country that we’ve got to fix some stuff.
I would much rather they fix it now and ensure it’s sustainable for the long run than not do anything about it and run out of money,” Goss said. Public-sector unions are mobilizing against the proposal, warning it could make federal employment less attractive and undermine job security. The American Federation of Government Employees (AFGE) union said the provisions seem designed to “make the prospect of working for the federal government so unattractive as to drive from executive branch agencies experienced and dedicated employees.”
The National Treasury Employees Union (NTEU) said the package “undercuts the ability of agencies to recruit and hire the next generation of talent needed to serve the American people.
The House committee approved the package, reflecting deep division even among Republicans.
The full House is expected to vote on the package soon, with supporters hoping to pass it by Memorial Day and implement it as early as July. If passed by the House, the bill would move to the Senate, which could advance without Democratic support if it fits within agreed budget targets, according to congressional procedure rules.
Image Credits: Photo by NORTHFOLK on Unsplash
