Lawmakers urge OPM's Pon not move forward with proposed cuts to fed benefits

A group of 26 lawmakers is urging Office of Personnel Management Director Jeff Pon not to make the cuts to federal employee retirement benefits he proposed last month.

“We write to you to oppose the changes to federal employee retirement benefits included in your May 4, 2018 letter to Speaker Paul Ryan, and to voice our strong concern for the impact these proposals would have on the financial planning of active and retired federal employees and the federal government’s ability to recruit and retain a strong civilian workforce,” the group wrote in a letter to Pon dated June 13.

In the letter to House Speaker Paul Ryan (R-Wis.), Pon proposed four main changes to federal employee retirement benefits that will affect 2.6 million federal retirees and survivors who receive monthly annuity payments:

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 agency expects to save an estimated $143 billion over ten years if all four proposes are enacted.

“We fear that these cuts are motivated by an ongoing effort to balance the budget on the backs of federal workers rather than an effort to provide a comprehensive approach to modernizing federal employee compensation,” the letter continues.

The group is asking Pon to instead develop comprehensive reform proposals that would modernize the federal government’s compensation system while still making it an attractive place to work.

Read the full letter here.

Reader comments

Tue, Jul 17, 2018 Howard

Typical BS & I don't give a rats move by OPM. 1st, they allow our personal info to be compromised, only to give us some BS "credit monitoring" service for free. It ain't worth a hill of beans. Now they want to kill our retirement. My point to Mr. Pon.... EFF YOU!

Wed, Jul 11, 2018 DJ

This a despicable move on Federal employees, if it happens... When I got into Civil Service (1985)I was given a CSRS retirement, but that got taken from me shortly after employment (no option - too bad, so sad). Now, after 37 years of service, and planning to retire in a couple of years, FERS is now under attack. Like most, I've served my country with an impeccable service record, while getting paid well below my contractor counterparts. This possible move is beyond sad, it's criminal!

Fri, Jun 22, 2018 Virginia

Working in the Acquisition field I have seen a steady increase of Government Contractors steadily increasing in numbers and salaries. We are getting to a point where there isnt adequate oversight for all these contractors and their primary objective is to increase PROFIT! My objective is to protect the tax dollars and get an honest hours worth of work for every tax dollar paid. Problem is I'm outnumbered at least 20 to 1.

Thu, Jun 21, 2018 Steve B

I agree folks. Again we/us have no real representation in DC. Some one tell why do the government employees of this United States continually bear the conquestes of a few hundred poor performing employees. Dollar for Dollar we are paid 25% less of the equivent salary in the civilian world When I first started 30 years. It was job security at a time when the country was experiencing a major fiscal crises. But I don't remember my retirement being discuss as a possible $$ value to either being reduce or even having to contribute even more to support the newly hired. so much for a retirement nest egg.

Wed, Jun 20, 2018

Were are the federal employee unions, they do nothing except take money from their members, get paid large salaries and go along with the benefits and salary cuts that the Clinton, Bush and Obama administrations enacted. weak worthless talk a lot do nothing outfits,

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Edward A. Zurndorfer Certified Financial Planner
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