The Senate parliamentarian has ruled that most proposals aiming to cut federal employees’ retirement benefits and civil service protections violated the Byrd Rule. This rule requires reconciliation bills to focus solely on budgetary concerns. As a result, provisions targeting federal worker benefits and unions have been removed from the Senate reconciliation package.
Late Saturday, the Senate voted to open debate on a Republican-backed budget reconciliation package. The package aims to cut federal spending to facilitate tax cuts for the wealthy and fund increased immigration enforcement. However, measures burdening federal employees have been significantly reduced.
According to a statement released by the Senate Budget Committee, the legislation no longer targets federal workers’ retirement benefits, civil service protections, or their labor unions. Initially, the House’s version of the bill included measures that would have required federal employees to contribute more to their Federal Employees Retirement System (FERS) pensions and reduced the value of those benefits.
Senate removes worker benefit cuts
It also proposed eliminating the FERS supplement for many federal employees retiring before age 62. The Senate Homeland Security and Governmental Affairs Committee, led by Chairman Rand Paul (R-KY), removed the provision that eliminated the FERS supplement. However, the committee sought to increase the retirement contributions required from future federal employees.
Additionally, both the House and Senate drafts included a $350 filing fee for federal workers appealing adverse personnel actions to the Merit Systems Protection Board. The initial Senate version also granted President Trump the authority to reorganize federal agencies and allocated $100 million to the Office of Management and Budget (OMB) to support this initiative. Other proposals included a 10% processing fee for elective payroll deductions that benefit charities in the Combined Federal Campaign and federal employee unions, as well as charges for labor groups using agency property and official time.
However, the Senate parliamentarian’s decision resulted in the removal of these proposals. The current draft maintains instructions and funding for the OMB to audit the Federal Employees Health Benefits Program for ineligible dependents. It provides $100 million for OMB to seek budget and accounting efficiencies.
