House Republicans Propose Changes to Federal Workers’ Retirement Benefits
On Monday, House Republicans introduced modifications to their proposed cuts to federal workers’ retirement benefits, trying to make the changes more acceptable after receiving bipartisan criticism.
Last month, the House Committee on Oversight and Reform moved forward with parts of the GOP’s budget settlement bill, which aimed to reduce federal spending while funding some tax cuts for wealthier individuals involved in immigration enforcement.
This legislation included stipulations targeting employees hired before 2014, who were previously excused from a 10-year increase in federal contributions towards their retirement benefits.
Additionally, it proposed eliminating FERS supplements for those retiring before they can collect Social Security at 62. New federal employees would also see a shift, potentially receiving around 10% of their citizens’ protection rather than the existing High-3 model that relies on their average salary over five years.
However, Rep. Mike Turner from Ohio mentioned that he, along with some fellow Republicans, would oppose reducing retirement benefits for federal workers who have earned pensions. This proposal has also incited protests from federal employees who previously agreed to a voluntary early retirement program.
The latest draft of the bill, released early Monday morning, scrapped the prior plans regarding employees hired before 2014 and the associated retirement benefit contributions.
Laws concerning FERS supplements— which can account for about a third of federal retirees’ income until they qualify for Social Security— have been broadened to include all federal workers needing to retire early, such as air traffic controllers and federal law enforcement. The enforcement date has now been postponed to January 1, 2028, ensuring that federal employees maintain eligibility for supplements if eligible before that date.
In this recent draft, adjustments to pension calculations for federal retirees have postponed the transition from the average salary model by a year, now set for January 1, 2028.
John Hutton, the vice president of policy and programs for the National Association of Active and Retired Federal Employees, expressed that while his organization views the changes as a positive step, more needs to be done to safeguard employees who have already secured retirement benefits.
“From our perspective, it’s definitely an improvement—a huge improvement,” he stated. “However, the removal of FERS supplements, along with the five proposals, undermines the commitments made to federal retirees. These benefits should still reflect individuals’ work histories. If they are entitled, they have invested in that system.”
