Although the details of House Republicans’ narrowly approved budget framework are still up in the air, some initial proposals show the possibility of changes to federal benefits, mainly in retirement and health care.
As part of the GOP budget resolution, the House Oversight and Government Reform Committee is looking at cuts of at least $50 billion from its mandatory spending, according to the framework that lawmakers approved in a vote of 216-214 on Thursday. That level of spending cuts would almost certainly dig into federal benefits, the National Active and Retired Federal Employees Association (NARFE) said.
Proposed changes to FERS contributions
The budget resolution could additionally include changes to retirement benefits for many federal employees and annuitants through the Federal Employees Retirement System (FERS).
Changing high-3 to high-5 for retiring feds
Republicans have also been eyeing possible changes to the current “high-3” calculation for determining the value of federal employees’ retirement annuities.
Possibilities for changing FEHB/PSHB premiums
A handful of proposals on the table as part of the budget resolution would make changes to the Federal Employees Health Benefits (FEHB) program. Notably, one of the proposals for the Oversight Committee would switch the FEHB program from its current shared premium model to a flat-rate “voucher” model.
But under a possible switch to a “voucher” model for both FEHB and the Postal Service Health Benefits (PSHB) program, the government’s contributions toward health premiums would instead likely be tied to consumer price increases.
