CSRS / FERS Federal Retirement Planning Tools and Resources: Thrift Savings - TSP, FEGLI, FEHB and more.
Home     Articles     News     Resources     GS Pay Scale 2014     Find A Professional     Retirement Seminars     FREE NEWSLETTER    
 Financial Professionals Directory

Find a financial professional in your area. Click here


 Retirement Seminars

Federal retirement seminars for agencies.
Learn more
.


 Top 5 Resources

1. TSP Roth option
2. GS pay scale 2014
3. Best dates to retire
4. Latest TSP returns
5. Discount dental plans


 CSRS Retirement
 Overview - CSRS
 Eligibility - CSRS
 Creditable Service -CSRS
 Survivor Benefits - CSRS
 Annuity Calculation-CSRS
 FERS Retirement
 Overview - FERS
 Eligibility - FERS
 Creditable Service -FERS
 Survivor Benefits - FERS
 Thrift Savings Plan
 Thrift Savings -Overview
 TSP Investment Choices
 TSP Loan Program
 TSP Contributions
 TSP Roth Option
 TSP Withdrawals
 TSP Returns
 TSP.gov Account Access
 TSP Forms Library
 TSP Talk Online Forum
 Insurance
 FEGLI - Life Insurance
 FEHB - Health Benefits
 Medicare
 FEDVIP - Dental/Vision
 FLTCIP - Long-Term Care
 FSAFEDS - Flex Spending
 Financial Planning
 Calculators
 Tax Tips
 Find A Professional
 Retirement Seminars
 Retirement Benefits Tax
 Retirement Living
 Relocation / Real Estate
 Retirement Jobs

_

Home | Articles | House Budget Plan Extends Federal Pay Freeze to 2015, Increases Retirement Contributions

House Budget Plan Extends Federal Pay Freeze to 2015, Increases Retirement Contributions
March 20, 2012 - updated 6:13 pm ET
Printer-Friendly Format



The GOP House Budget Committee's fiscal 2013 budget plan proposes extending the federal pay freeze through 2015, cutting the federal workforce by 10 percent, and increasing federal retirement contributions of employees.

The plan, released this morning by Committee Chairman Paul Ryan (R-WI), gave the following specifics that are of particular interest to federal employees:

The federal government has added 147,000 new workers since the President took office. It is no coincidence that private-­-sector employment continues to grow only sluggishly while the government expands: To pay for the public-­- sector's growth, Washington must immediately tax the private sector or else borrow and impose taxes later to pay down the debt.

The federal government's responsibilities require a strong federal workforce. Federal workers deserve to be compensated equitably for their important work, but their pay levels, pay increases and fringe benefits should be reformed to better align with those of their private-­-sector counterparts.

Compensation for federal workers continues to outpace pay for their private-­-sector counterparts. The non-­-partisan CBO recently released a study saying that federal workers are, on average, compensated 16 percent higher than comparable private-­-sector employees.21 Immune from the effects of the recession, federal workers have received regular salary bumps regardless of productivity or economic realities.

The reforms called for in this budget aim to slow the federal government's unsustainable growth and reflect the growing frustration of workers across the country at the privileged rules enjoyed by government employees. They reduce the public-­-sector bureaucracy, not through layoffs, but via a gradual, sensible attrition policy. By 2015, this reform would result in a 10 percent reduction in the federal workforce.

Additionally, this budget freezes federal pay through 2015 and asks federal employees to make a more equitable contribution to their retirement plans. When combined, these proposals will save taxpayers approximately $368 billion over ten years.

Federal Employee Groups Sharply Rebuke Budget Plan

Joseph Beaudoin, president of the National Active and Retired Federal Employees Association (NARFE) stated today, "Chairman Ryan's belief that it is permissible to penalize middle-class federal workers, who protect Americans and keep our nation moving forward, is frightening. Whatever happened to 'shared sacrifice'? What does he hope to gain by prolonging pay freezes, pinching paychecks, and eliminating employees, including those who inspect the safety of our food and nuclear power plants? It's worth remembering that losing one in 10 federal workers means losing 100,000 employees at the U.S. Departments of Defense, Veterans Affairs, Justice and Homeland Security."

American Federation of Government Employees (AFGE) national president John Gage responded to the House GOP budget plan today stating, "Federal employees already have had their pay frozen for two consecutive years, an unprecedented action that will save the government $60 billion over 10 years. And new federal employees will pay four times as much in retirement contributions, saving taxpayers an additional $15 billion. That's a total of $75 billion in savings. It is fundamentally wrong for federal employees to be required, yet again, to serve as the Automated Teller Machine for the nation. Enough is enough."

"The Ryan budget proposes to cut the federal workforce by 10 percent, and with its extension of the pay freeze and proposed pension contribution increases would drive many federal workers out of public service," said the National Treasury Employees Union (NTEU) president, Colleen M. Kelley. "It is almost as though the authors of this budget don't know, don't understand or don't care about the key role federal employees play in helping keep our nation safe, ensuring that our food and medicines are safe and effective, that our air and water are safe, and performing so many other services that people not only expect and want, but need, as well," the NTEU leader added.

To read the full budget plan, go to:
http://budget.house.gov/fy2013Prosperity/



·  Federal Employee Pay Freeze Calculator
·  White House 2013 Proposal for 0.5% Pay Raise, Cuts to Retirement Benefits Blasted by Employee Groups
·  How Will the 2011-2012 Pay Freeze Affect Federal Employees Expecting to Retire During the Next Three Years?









Featured Columnist
Read federal retirement articles written by federal benefits expert and Certified Financial Planner, Edward Zurndorfer

Recent Articles & Resources
 Comparing a Phased Annuitant and a Reemployed Annuitant Part II: FERS
 Comparing a Phased Annuitant and a Reemployed Annuitant Part I: CSRS
 Federal Employees Health Benefits (FEHB) Premiums to Increase in 2015
 Thrift Savings Plan (TSP) Returns: Monthly and Annual - G, F, C, S, I and L Funds Updated: Octob
 Annuitants Likely to Receive Larger COLA Than Employee Pay Increase For the Second Consecutive Year