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SAN FRANCISCO, CA

Legislation Report

July 2011

LET YOUR VOICE BE HEARD: For those members without internet access, we ask you to copy this letter and mail copies to President Obama, Senator Boxer, Senator Feinstein, and Rep Pelosi or Rep Speier:

I'm writing today to express my strong opposition to any plan to impose an additional tax on federal workers by increasing the amount they are required to contribute to their annuities. According to recent reports in the Washington Post, House, Senate, and White House representatives in budget negotiations are open to changes in federal civilian retirement funding - even though the Federal employee annuity fund is actuarially sound and federal workers, who did not cause our budget crisis, have already accepted a two-year pay freeze to help solve the budget problem.

If such a retirement annuity funding plan goes through, 17.4 percent of a federal employee's salary before taxes would go to the government. This proposed tax will overburden lower-wage earners who, because of the tax, won't be able to contribute as much of their salary to their Thrift Savings Plans.

Private companies do not require their workers to contribute to their pension funds, but federal workers have been paying into our trust fund since it was created. It is unfair to expect federal workers to pay even more. Just like those before them, current federal workers continue to serve the federal government at an estimated 22 percent lower wages than their private sector counterparts. The Federal Employees Retirement System (FERS) annuity is, on average, $944 per month. In fact, because of the two-year pay freeze, federal employees would pay more for a smaller annuity. Losing this incentive puts the nation further at risk of not maintaining a talented and capable work force.

In addition, I am strongly opposed to any other attacks on federal workers or retirees, including any reductions in the Federal Employees Health Benefits Program. Federal workers are the inspectors who ensure the food our families eat is safe, and the federal intelligence officers who just did their part to catch the world's most wanted terrorist - they protect America's heartbeat, and should not be made into budget scapegoats and singled out unfairly. WE NEED YOU TO ACT NOW!

 

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