The House of Representatives passed a budget reconciliation package last week with a 215-214 vote, mostly along party lines. The bill included several provisions that would impact federal workers’ retirement benefits. Over the past few months, the American Federation of Government Employees (AFGE) fought hard against these cuts.
They successfully prevented some of the worst provisions from being included in the final bill. One key victory was the removal of a provision that would have required all federal workers to contribute 4.4% of their paychecks to the Federal Employees Retirement System (FERS). This would have impacted workers hired before 2014.
AFGE also blocked a change to the calculation of pensions. The proposal would have reduced pension amounts by basing the calculation on the highest five years of salary, rather than the highest three years. However, the bill still includes some concerning provisions.
One would eliminate the FERS supplement, which provides critical income for federal workers who retire early until they can collect Social Security at age 62.
Budget threatens federal pension benefits
The bill also introduces new fees that could hurt workers.
A “workplace protection fee” would charge new employees 9.4% of their salaries, unless they waive their labor protections and become at-will employees. An appeals fee would be imposed on workers who file claims with the Merit Systems Protection Board. AFGE plans to continue fighting these provisions as the bill moves to the Senate.
The union expects the Senate to make significant amendments to the House version. According to the Congressional Budget Office, the tax cuts in the bill would primarily benefit the wealthiest Americans. At the same time, cuts to programs such as Medicaid and food aid would disproportionately harm the poorest households.
In other news, a judge recently ruled that President Trump cannot implement mass layoffs of federal workers without Congressional approval. This was a significant victory for AFGE and federal employees. As the budget process continues, AFGE remains committed to protecting the interests of the federal workforce.
The union urges its members to stay informed and engaged in these important issues.
