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Legislation Report

AUGUST 2017

Hard earned benefits for the Federal community are threatened by stark proposals in Congress. The House Budget Committee recently passed a resolution that according to NARFE "specifically instructs the House Committee on Oversight and Government Reform to find at least $32 billion in savings from mandatory spending under the Committee's jurisdiction. This would likely require a cut to existing retirement benefits, which is nothing more than a retirement tax on federal employees. These revenue increases would offset the cost of tax reform, a top legislative priority for congressional leadership and the current administration." The budget plan released by Committee Chairwoman Diane Black (R-Tenn.) also would end the "special retirement supplement," which pays FERS employees "the equivalent of their Social Security benefit at an earlier age." In addition, current Federal employees under FERS will increase individual out-of-pocket payments toward retirement by 1 percentage point each year until they equal the government's contribution for those in the Federal Employees Retirement System (FERS). This change will result in a 6 percent pay cut over 6 years. Retirees who receive their annuity through the CSRS may face a .05 percent reduction in their COLA. According to NARFE this reduction could have a devastating impact on CSRS retirees over time. Also, the NARFE Federal Benefits Institute recently sponsored an informative webinar about proposed cuts to our benefits. This webinar is available on line at http://www.narfe.org/legislation/articles.cfm?id=4241

Jon Lampman
Legislation Chair
ph: (925) 228-8501

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