Pension Reform Showdown: Lawmakers Oppose FERS Contribution Hike

Opposition to proposed retirement benefits cuts for federal employees among House lawmakers may put the legislative proposal in jeopardy.

Congressman Mike Turner (R-OH) is still holding firm in his opposition to the House Oversight Committee’s plan to increase retirement pension contributions for federal employees as part of its budget reconciliation proposal.

When the House Oversight Committee held its markup session on April 30 to debate the proposed cuts to federal employees’ retirement benefits, Turner spoke out against the measure. He said during the hearing, “I believe that making changes to pension retirement benefits in the middle of someone’s employment is wrong. Changing the rules, especially when someone’s already been vested, is wrong.”

Congressman Mike Turner (R-OH)
Congressman Mike Turner (R-OH)

Turner also said that he thought there was enough opposition from other House lawmakers to cause the measure to ultimately not be included in whatever final legislation was passed by Congress.

Turner reaffirmed his opposition to the measure to increase some federal employees’ contributions to FERS in an interview on Thursday. The Dayton Daily News reported that Turner still thinks the measure is unfair and that other House Republicans agree with him.

“It’s a very basic American principle that if you go to work every day and earn benefits that those earned benefits should not be changed mid-game. I believe it has to change,” Turner said in the Thursday interview.

He made it clear that if the proposed benefits cuts remain in the final bill, he will vote against it on the House floor.

Congressman Don Bacon (R-NE) agrees with Turner. He said in remarks made on Thursday, “We should not be changing Federal employee pensions for those who are already serving. For new folks, the change is fine. If you want to reduce employee pensions for those already serving, then you better start with all of our Congressional pensions.”

The budget legislation was considered by the House Budget Committee on Friday, May 16 but was rejected by more conservative Republicans who want to see more spending cuts. The Budget Committee is scheduled to reconvene on Sunday, May 18 at 10 PM to continue deliberations.

There is no way to know if this or the other benefits cuts provisions will get passed into law in the final legislation. Politico reported that according to Congressman Stephen Lynch (D-MA), there could be approximately nine Republicans who would vote along with Democrats in opposing the pension plan in a House floor vote.

Proposal to Increase Pension Contributions for Some Federal Employees

The proposal in question would raise the amount some federal employees have to contribute to the Federal Employees Retirement System (FERS) regardless of when they were hired. Law enforcement officers (LEOs) and related groups would be exempt.

Individuals who entered FERS before January 1, 2014, would be impacted, specifically, most federal employees, Members of Congress, and Congressional staff. The increases would be staggered over a two-year period, however. Members of Congress and Congressional staff who entered FERS before 2013 would also have a larger increase than federal employees.

Federal employees who were hired before 2013 contribute 0.8% of their salaries to FERS, and those hired in 2013 or were rehired with less than 5 years of civilian service contribute 3.1%.

The current contribution rate for those hired January 1, 2014, and after is 4.4%. This proposal would raise the contribution amount to 4.4% for most of the aforementioned groups.

The table below illustrates the increased pension contributions and who would be impacted:


202520262027
FERS, Entered FERS Before 2013



Regular Federal Employees0.8%2.6%4.4%

Members of Congress, Congressional Staff1.3%3.1%4.9%

Enhanced-Benefit Recipients Subject to Mandatory Retirement1.3%1.3%1.3%
FERS RAE, Entered FERS In 2013



Regular Federal Employees, Members of Congress, Congressional Staff3.1%3.75%4.4%

Enhanced-Benefit Recipients Subject to Mandatory Retirement3.6%3.6%3.6%
FERS FRAE, Entered FERS After 2013



Regular Federal Employees, Members of Congress, Congressional Staff4.4%4.4%4.4%
FERS = Federal Employees’ Retirement System; FRAE = Further Revised Annuity Employees; RAE = Revised Annuity Employees
Source: CBO

A Congressional Budget Office (CBO) report regarding this proposed change estimates that it would raise $34.5 billion over the 2025-2034 period. The proposal is one of several put forth by the House Oversight Committee to cut the federal deficit by $50 billion.

Additional Resources

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About the Author

Ian Smith is one of the co-founders of FedSmith.com. He has over 20 years of combined experience in media and government services, having worked at two government contracting firms and an online news and web development company prior to his current role at FedSmith.