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GOP budget boosting fed pension contributions passes House

Apr. 10, 2014 - 06:00AM   |  
By ANDY MEDICI   |   Comments
Leading Conservatives Attend 40th Annual CPAC
U.S. Sen. Paul Ryan (R-WI) authored the budget proposal passed by the House 219 to 205April 10. (Photo by Alex Wong/Getty Images) (Alex Wong / Getty Images)

The federal workforce would be cut and pension contributions would increase under a Republican budget bill passed by the House April 10.

The Path to Prosperity budget authored by Rep. Paul Ryan, R-Wisc., the chairman of the House Budget Committee, would allow federal agencies to hire one replacement employee for every three that leave. Some national security positions would be exempt.

Pension contributions could rise to as much as 6.35 percent of employee salaries while newer employees would transition from pensions to a defined contribution plan. Federal employees hired before 2012 contribute .8 percent of their paycheck toward their pension while employees hired afterward contribute up to 4.4 percent.

The legislation also calls for military pay reform and calls by pointing to “explosive growth” in compensation costs but does not lay out specific cuts, only a call for the military to review pay scales. But the bill would also provide funding to head off planned force reductions.

The legislation also calls for agencies to sell off a portion of the federal fleet and a portion of federal real estate as well as government land — excluding national parks and wildlife refuges.

It would also keep agency funding mostly at sequestration levels and would also eliminate agency student loan repayment plans for federal workers.

The overall budget proposes $5.1 trillion in spending cuts over the next 10 years, mostly through cuts in the Affordable Care Act provisions and agency discretionary spending.

The legislation is nothing more than a poorly disguised pay cut, according to Joseph Beaudoin, the president of the National Active and Retired Federal Employees Association.

“These cuts would diminish the government’s capacity to perform essential functions. Ultimately, attrition proposals such as this fail to save much money, as work is simply shifted to contractors,” he said in a statement.

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