Ohio lawmaker opposes Pon's retirement cuts proposal
- By FederalSoup Staff
- May 11, 2018
While the Office of Personnel Management director wants to make federal employee retirement benefits more in line with the public sector, one lawmaker says the proposed changes only make the federal government a less attractive employer than the private sector.
“With the United States’ growing economy and a tightening labor market, we cannot afford to make the federal government a less attractive place to work by diminishing the very benefits that help the government keep pace with jobs in the (often higher-paying) private sector,” Rep. Mike Turner (R-Ohio) said in a letter to Office of Personnel Management Director Jeff Pon.
Last week, Pon proposed four major changes to federal employee retirement benefits: 1) eliminate the Federal Employees’ Retirement System annuity supplements for new retirees and survivor annuitants; 2) increase the Civil Service Retirement System and FERS average pay period to five years from three years; 3) increase FERS employees’ contribution to their retirement to one percent each year until they reach 7.25 percent of basic pay; and 4) reduce or eliminate retirement cost-of-living adjustments.
The Dayton, Ohio region—in which Turner represents— has more than 30,000 federal employees. Employees that Turner says have already been burdened by a three-year pay freeze, followed by a menial pay increase, and have forgone about $182 billion in pay and benefit cuts. The proposed changes are expected to save $143 billion over 10 years if all four changes are enacted.
“We should not arbitrarily make changes to policies that families have planned their lives around…” Turner said.
Read the full letter here.