Federal Republican lawmakers consider proposals to reduce federal employees' salaries, benefits, and employment stability
The U.S. House of Representatives' GOP members have compiled a 50-page document outlining potential provisions for a budget reconciliation bill. This bill, aimed at securing and potentially expanding President Trump's tax revenues and financing expanded immigration controls, includes proposals to significantly impact federal employees' retirement and benefits.
One of the key proposals is the elimination of the FERS supplement for employees who retire before age 62. This change, particularly affecting federal law enforcement officers who retire at age 57, could alter the retirement landscape for many federal employees.
The document also establishes a $2 billion Voluntary Separation Incentive Payment Fund for governmentwide employee buyouts. This fund could encourage early retirement, reducing the federal workforce and potentially saving costs. The buyout cap is increased from $25,000 to $40,000 for all civilian employees, and the eligibility threshold is lowered from 20 to 15 years.
Current FERS participants contribute 0.8% for hire before 2012, 3.1% for hire in 2013, and 4.4% for hire in 2014 or later. However, the proposed standardised contribution rate for Federal Employees Retirement System enrollees is 4.4%. This increase in contributions could place a burden on federal employees, especially those nearing retirement.
The document calls for an audit of FEHBP for improper enrollments. Prior to the presidential transition, OPM sent a legislative proposal to revamp how it administers FEHBP for better oversight. This audit could lead to increased transparency and efficiency in the federal health benefits programme.
Another proposal suggests charging unions for official time granted to union officials. This practice, which represents a compromise at the centre of the 1978 Civil Service Reform Act, could impact the functioning of unions within the federal government.
The bill also aims to lock in and potentially expand President Trump's 2017 tax cuts and fund expanded immigration enforcement. To achieve this, the bill proposes increasing federal workers' contributions to their retirement and health care benefits.
A new option is proposed, offering a lower FERS annuity contribution rate but removing merit-based civil service protections. This choice could provide an alternative for newly hired federal workers, allowing them to choose between better retirement benefits and civil service protections.
The document revives a Trump-era policy to charge unions for use of agency property, including office space, computers, and other equipment. This change could impact the resources available to unions within the federal government.
Finally, the bill proposes requiring newly hired federal workers to choose between better retirement benefits and civil service protections. This requirement could have significant implications for the future of the federal workforce and the protections they enjoy.
The Office of Personnel Management (OPM) has stated that it does not have the capabilities to conduct such an audit due to the decentralized nature of the program. This could present a challenge in implementing some of the proposed changes.
In conclusion, the proposed budget reconciliation bill could significantly reshape federal employee benefits and retirement plans. The impact of these changes on federal employees and the federal workforce as a whole remains to be seen.
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