Federal employees face retirement benefit cuts

by / ⠀News / May 13, 2025

Federal employees at Robins Air Force Base in Georgia are facing significant cuts to their retirement benefits under a House Republican plan. The budget reconciliation bill would eliminate the Federal Employees Retirement System (FERS) supplement, which provides income to federal workers who retire before age 62 when Social Security benefits begin. Emily Whaley, a foreign military sales program manager at Robins AFB, says the FERS supplement represents about 40% of her expected retirement income.

“One of the biggest concerns is, like for me and for instance, I’ve been here 38 years. There’s people who have been on base, you know, 30-plus years. And we expected our retirement to be intact when we got ready to use it,” Whaley said.

The bill would also require all federal employees to contribute toward their pension regardless of when they were hired. Currently, contribution rates vary depending on hire date, with many long-serving employees paying as little as 0.8%. Additionally, the formula for calculating retirement benefits would change, resulting in lower monthly payments for most retirees.

Whaley had opted into the deferred resignation program (DRP) with plans to retire on September 30. “If I decide to retire 30 September, which was my plan.

Federal retirement changes spark controversy

If they take away the first supplement, then I won’t be able to,” Whaley said. The timing is particularly troubling for employees who accepted early retirement offers without knowing their benefits could be reduced. Sherri Goss, a financial advisor, sees the proposed changes as necessary for the long-term sustainability of federal retirement programs.

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“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 make sure it’s sustainable for the long run than not do anything about it and then run out of money,” Goss said. Whaley, who says she voted for President Trump, is now calling on Republican lawmakers to reconsider how the changes would affect long-serving employees.

“I would just say to take a look at the bill and consider grandfathering people who are already late in their career and are ready to retire. Don’t take away a significant part of our retirement at this late time in our careers,” Whaley said. 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. Public-sector unions are mobilizing against the proposal, warning it could make federal employment less attractive and undermine job security. If passed by the House, the bill would move to the Senate, where it could potentially advance without Democratic support if it fits within agreed budget targets.

About The Author

Kimberly Zhang

Editor in Chief of Under30CEO. I have a passion for helping educate the next generation of leaders. MBA from Graduate School of Business. Former tech startup founder. Regular speaker at entrepreneurship conferences and events.

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