Rep. Mike Turner Challenges Proposed Pension Contribution Increases for Federal Workers

Rep. Mike Turner (R-OH) has expressed his disagreement with the House Oversight Committee’s plan to raise pension contributions for federal employees as part of a budget deal.

During a markup session held on April 30, where the proposed cuts to federal employees’ retirement benefits were discussed, Turner voiced his opposition. He remarked, “I think it’s unfair to alter pension benefits when someone is currently employed. Changing the rules while individuals are already relying on them just seems wrong.”

Turner indicated that there is significant pushback from other members of the House as well.

In a Thursday interview, he reiterated his stance against raising contributions to the Federal Employee Retirement System (FERS). Reports suggest he feels this approach is unjust and anticipates that many other House Republicans will share his view.

He shared, “This is fundamentally about fairness. If you work hard and earn certain benefits, altering them during your employment feels like changing the game while it’s still in play.”

Turner made it clear that if these cuts remain in the final version of the bill, he would still support it when it goes to a vote in the House.

Rep. Don Bacon (R-NE) agrees with Turner’s sentiment, stating, “We shouldn’t be making changes to pensions for current federal employees. For those who are newly hired, sure, go ahead. But applying cuts to current employees? Perhaps we should start with Congress’s own pensions first.”

The House Budget Committee reviewed the Budget Act on May 16 but rejected it due to more conservative Republicans demanding additional cuts. They are scheduled to reconvene on May 18 at 10 PM for further discussions.

It’s still uncertain whether this proposal, or others regarding pension reductions, will be included in the final legislation. According to Rep. Stephen Lynch (D-MA), there may be about nine Republicans ready to join Democrats in opposing pension cuts during a House vote.

Proposed Increases to Pension Contributions

The proposal involves raising the pension contribution amount required from federal employees under the Federal Employee Retirement System (FERS), although law enforcement officers and similar groups would be exempt from these changes.

Most federal employees who joined FERS by January 1, 2014, would be directly affected, including congressional members and their staff. The increases would be phased in over two years. Those in Congress who joined before 2013 will face larger contributions than those hired later.

Currently, federal employees hired before 2013 contribute 0.8% of their salaries to FERS, compared to 3.1% for those hired in 2013 or those re-employed from private service in the past five years. The rate for new hires since January 1, 2014, stands at 4.4%, and the proposal aims to raise contributions for many of these groups to that same rate.

Projected Financial Impact

The Congressional Budget Office (CBO) estimates that these proposed changes could generate $34.5 billion from 2025 to 2034. This proposal is just one of several aimed at reducing the federal deficit by $50 billion.

Further Information

For a deeper dive into this topic, refer to the resources listed below.