Joe Davidson writes in the Washington Post:
“The budget proposal President Trump plans to unveil Tuesday would give to federal employees with one hand, while taking away with five others.
It calls for a 1.9 percent pay raise in January for civilian workers and a 2.1 percent hike for the military.
But in real terms, the civilian increase would be less than it looks if proposed hits on retirement benefits are adopted. Trump’s fiscal 2018 budget would:
Increase Federal Employee Retirement System (FERS) contributions from workers by 1 percentage point each year until they equal the government’s contribution. This would take five to six years and would result in increased out-of-pocket payments of about 6 percent over that period. Out-of-pocket payments by federal law enforcement officers would increase by the same amount, but would not equal the greater contributions from law enforcement agencies.
Base future retirement benefits on the average of the high five years of salary instead of the current high three
Eliminate cost of living adjustments (COLA) for current and future FERS employees
Cut the COLA for Civil Service Retirement System (CSRS) employees by 0.5 percent from what the formula would allowed
Eliminate supplement payments for FERS employees who retire beginning in 2018. The supplement approximates the value of Social Security benefits for those who retire before age 62.
FERS, which covers employees first hired after 1986, and CSRS have different requirements. Those covered by CSRS, for example, do not receive Social Security benefits.
Senior Office of Management and Budget officials, who declined to be identified because the budget has not been released, said that the increase in retirement contributions would not apply under CSRS because the employer and employee shares under that system already are equal.
Similarly, they said that eliminating the FERS retirement inflation adjustment while only reducing it for those retired under CSRS takes into account that FERS retirees receive Social Security, which is fully inflation-adjusted, as part of their benefits.
The retirement changes supposedly would take effect with the fiscal year that begins in October. Since the federal budget rarely is finished by that deadline, any measure including them likely would set a different effective date.
Most of these proposals have been in the Republican playbook for years. With that party now in control of the White House and Congress, chances increase that some or all of them will become law, even as the probability is low that Trump’s entire budget will be enacted as proposed.
The thought of Trump’s assault on federal retirement programs becoming law enrages federal employee leaders.”
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As pointed out by Davidson, this slap in the face to hard-working career Feds is based on a longstanding GOP “wishlist.”
PWS
05-20-17