Trump isn’t the only one targeting federal employees. House Republicans are pushing cuts to pension benefits
Context:
Federal employees are facing potential changes to their retirement benefits as House Republicans push for cuts to help fund tax and spending reductions. The House Oversight Committee's recent plan aims to save $50 billion over the next decade by increasing employee contributions and altering pension calculations. This has led to concerns among federal workers, particularly those nearing retirement, who may rush to retire to secure current benefits. Despite opposition from some lawmakers, the plan has not yet been finalized and requires approval from both the House and Senate. Union leaders warn that the changes could significantly impact workers, especially those in law enforcement and correctional facilities, who often retire early due to the demanding nature of their jobs.
Dive Deeper:
House Republicans are targeting federal workers' pensions to fund their tax cuts, with proposed changes that could push employees to retire sooner to lock in existing benefits.
The House Oversight Committee's plan seeks to extract $50 billion in savings over a decade by raising contribution rates and changing the formula used to calculate pension benefits.
If implemented, the plan would require many federal employees to contribute 4.4% of their salaries to their pensions, affecting those hired before 2014 who currently contribute less.
The proposal would also eliminate supplemental payments for new retirees ineligible for Social Security until age 62, and base pension calculations on the highest five earning years instead of three.
Certain groups, like law enforcement and air traffic controllers, would be exempt from some changes but would face delays in receiving supplemental pension payments.
Federal workers express frustration and concern over the perceived 'bait and switch,' as many consider retiring early to avoid financial losses under the new system.
The policy changes face opposition, including from Ohio Rep. Mike Turner, who argues against reducing federal spending by cutting pension benefits promised to dedicated workers.