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UPDATE 1: On Sunday, May 18, the House Budget Committee assembled the text of a budget reconciliation bill from proposals from various committees. This budget reconciliation text has some good news for federal workers: the provision to increase the FERS contribution rate to 4.4% for federal employees paying below that percentage (those hired before 2014) has been removed from the text. Also, the elimination of the FERS supplement will not take effect immediately, as drafted in the House Oversight-passed text, but takes effect in 2028, allowing those who took the deferred resignation offer or other voluntary separation offers to qualify for the supplement if they are eligible in the next two years.

UPDATE 2: On Thursday, May 22, the House of Representatives passed a budget reconciliation bill that does include the changing the basis for federal retirees' annuity payment from the current highest 3 years of earnings to the highest 5 years. It also does not include the provision to increase the FERS contribution rate to 4.4% for federal employees paying below that percentage

THESE CHANGES TO PROTECT FERS COULD NOT HAVE HAPPENED WITHOUT GRASSROOTS ADVOCACY. We ask you to continue to contact your Senators and advocate for the removal of the remaining provisions targeting federal retirement benefits and merit protections.

The remaining provisions in this section of the House-passed budget reconciliation bill should still be removed: 1) the eliminate the FERS supplement, 2) make new hires choose to be "at-will" or pay 5% of their salary for civil service protections, and 3) charge federal employees a $350 fee to file a case at the MSPB.

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On Wednesday, April 30, the House Oversight and Government Reform Committee advanced a set of proposals to cut $51 $19 $16 billion over the next ten years from the Federal Employee Retirement System (FERS) and make other changes that undermine our nonpartisan civil service. Congress will be considering passing these spending cuts in a budget reconciliation bill that will include $1.6 trillion in spending cuts to offset a portion of $4.5 trillion in tax cuts for the wealthy and for corporations (the $2.9 trillion in tax cuts that aren’t offset will result in a significant increase to the federal deficit).

While $51 $19 $16 billion is a small percentage of the targeted $2 trillion in spending cuts, these cuts to federal retirement benefits will have a big impact on federal workers’ compensation and benefits by reducing the take-home pay of federal workers, reducing the income of federal workers who choose to or are forced to retire early, and reducing the retirement income that future retirees receive.

The proposals also go after civil service protections by making any newly hired federal workers choose between “at will” employment and paying a lower FERS contribution rate or retaining merit system rights and paying a higher FERS contribution rate. "At-will" means these federal workers can be fired at any time for no reason and will not have the merit system rights to appeal their firing. Merit system rights are not merely protections for federal workers, they protect Americans by providing accountable and professional management of government that works for the American public, not partisan political causes and not corrupt private interests.  

Here are the provisions attacking federal employee retirement and civil service protections that Congress is considering:

• Raises the FERS retirement contribution rate for all federal and postal employees to 4.4% of their salary. [REMOVED in Sunday, May 19 House Budget Committee budget reconciliation text]

• Eliminates the FERS supplement payment for federal employees retiring before age 62 (federal occupations with retirement required before age 62 are exempted). [NOTE: this provision has been changed to take effect in 2028, instead of immediately]

• Bases a federal retiree’s annuity payment on their average highest five earning years, instead of the current highest three earning years.[REMOVED in the May 21 House Rules Committee managers amendment text, which was passed by the House on May 22 and sent to the Senate]
  

• Makes new federal employee hires choose to be “at will” employees without merit system protections in exchange for higher take-home pay or choose to maintain merit system protections and pay a higher 9.4% FERS contribution rate and lower take-home pay.

• Charges federal employees a fee for Merit Systems Protection Board (MSPB) filings equivalent to the fee for filing a civil lawsuit in federal district court, which is $350.

The special rules for budget reconciliation bills allow the legislation to pass the Senate with a simple majority and exclude any filibuster or 60-vote threshold to advance the bill to a final vote. This budget reconciliation bill is being crafted by the majority party in the House and Senate and can pass and be enacted with only Republican votes in both chambers of Congress.

Federal employees are already facing a Trump Administration that is dismantling government agencies and laying off federal workers who perform critical functions and provide important services. So many IFPTE members in the federal workforce are already taking a pay cut to work for the federal government and serve the public. Slashing retirement benefits and reducing the take-home pay of federal workers will trigger an exodus of experienced and skilled federal workers and hollow out agencies that provide essential services and functions. Congress needs to hear from everyday Americans that lawmakers should be preserving the government’s ability to recruit and retain the best talent America has to offer to address the challenges our nation faces, support our national security and economic prosperity, provide the American people with high-quality services, and keep our communities safe.

Email Your Representative and Senators and urge them to oppose any cuts to federal employees' retirement benefits, any reductions to take-home pay, and any effort to force newly hired federal employees to choose between pay and civil service protections.

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