The House Budget Committee has approved a measure that would increase pension contribution amounts for federal employees.
Passed on Monday, the legislation would require current federal employees to pay five percent more towards their retirement plans beginning in 2013 over the next five years. Federal employees hired in 2013 and beyond would be brought in under the new plan and be paying the extra five percent from the outset of their employment. Members of Congress would have to contribute an additional 8.5 percent to their retirement plans over the same five year period.
The proposed legislation also eliminates a current provision in the law that supplements the benefits of federal workers who are not subject to mandatory retirement, are covered under FERS and who retire before age 62 or the age at which their Social Security benefits can begin. It would apply to employees hired starting in 2013.
If this all sounds familiar, it is because similar provisions have been presented before, some of which appeared originally in a bill that was sponsored by Dennis Ross (R-FL). In late April, the House Oversight and Government Reform Committee approved legislation with the same terms on pension contributions.
Under current law, a series of cuts to the federal budget will take place automatically starting on January 2, 2013, namely a 10% cut to DoD programs.
Republicans in the House want to avoid the automatic cuts and have put forth legislation to reprioritize the automatic cuts by making cuts in other areas such as federal employees’ retirement programs, automatic increases in food stamp benefits, and duplicative federal programs.
The full legislation as it currently reads is available on the House Budget Committee web site.