Our earned benefits continued to be vulnerable because Congress created a Super Committee with a mandate to cut spending. This panel, consisting of six Republicans and six Democrats representing both the House and the Senate, is required to draft legislation by November 23 that will reduce the deficit by $1.5 trillion over 10 years through spending cuts or revenue increases. This bill must be voted on by members of the House and Senate by December 23 with no amendments allowed. Also, the president retains veto power.
If the Super Committee’s legislation does not become law by January 15, 2012, automatic across-the-board spending cuts begin in 2013. However, federal retirement, pay and the FEHBP will be exempt, along with Social Security and veteran’s benefits. Medicare cuts would only apply to health providers and insurance carriers.
Since NARFE believes a bill including reductions to federal civilian retirement, pay and health benefits may become law, we must continue to tell our elected lawmakers not to allow federal workers and retirees to be unfairly singled out for these reductions. You can contact your members of Congress at the Legislative Action Center at NARFE.org.
On October 14, 2011, the House Oversight and Government Reform Committee recommended to the Super Committee reductions in federal civilian pay and retirement totaling $375 billion in savings over 10 years. These specific recommendations follow:
1. Change the pension formula salary base to highest-five years’ average salary.
2. Increase the employee Federal Employee Retirement System (FERS) contributions by 6.2%.
3. Increase the employee CSRS contribution from 7% to 10% beginning in 2013.
4. Eliminate FERS for new hires.
5. Limit the FERS minimum supplement to employees subject to mandatory retirement.
6. Reduce the federal workforce by 10% through attrition, hiring one new worker for every three who leave. Also, extend the pay freeze through 2015.
7. Eliminate periodic step increases.
