The House Rules Committee is set to advance to the House floor a budget reconciliation bill in the early morning hours of Wednesday, May 21, with plans for a House vote this week. The current bill includes cuts to earned federal benefits, but some changes were made to the language approved by the House Oversight and Government Reform Committee.
The House Rules Committee Print, the current language under consideration, included several significant changes to federal benefit provisions in the original bill. Notably, the bill (i) no longer includes any increased contributions toward retirement for employees covered by the Federal Employees Retirement System (FERS), (ii) shifts the effective date for elimination of the FERS annuity supplement to apply to retirements on or after 1/1/28 (previously it was on or after the date of enactment), (iii) exempts individuals subject to mandatory early retirement from the provision eliminating the FERS annuity supplement (previously only those forced to retire early due to mandatory retirement provisions were exempt), (iv) shifts the effective date for basing new retirements on the highest five years of salary rather than the highest three years of salary to 1/1/28 (previously it was 1/1/27), and (v) exempts those subject to mandatory early retirement from the provisions forcing employees exiting their probationary period to choose between at-will employment or a 5 percent pay cut (via an additional 5% contribution towards their retirement).
While NARFE appreciates the notable improvements to the bill, we still strongly oppose provisions that (i) cut retirement benefits for vested employees, and (ii) undermine the merit-based civil service. The bill still cuts retirement benefits that were earned from past service. Specifically, it eliminates the FERS annuity supplement and changes retirement calculations to be based on the highest 5 years instead of the highest 3 years of salary for individuals vested in the system, including those currently retirement eligible or approaching retirement eligibility, who have relied on the promise of such benefits in financial planning. It also continues to undermine the merit-based civil service through its incentives for at-will employment and fee on appeals to adverse actions to the Merit Systems Protection Board.
NARFE’s letter in opposition to the bill is available here. We also expect to send an updated letter prior to floor consideration related to recent and any additional changes that may occur prior to the floor vote.
Now is a critical time to weigh in, as House Republicans continue to negotiate within their conference regarding the bill’s final provisions. Contact your members of Congress via our Legislative Action Center to make your voice heard.
