A new piece of legislation entitled the Federal Employee Pension Fairness Act of 2017 has been proposed. The act would repeal increases recently enforced on federal employees' retirement contributions.
"Taking money from from the paychecks of hard working public servants simply cannot be justified," American Federation of Government Employees National President J. David Cox Sr. said. He continued, explaining that, since 2010, federal employees have "had more than $182 billion taken from their salary and benefits and earn 6.5 percent less now than they did at the start of the decade."
This continual increase in retirement contributions in an attempt to fix the budget deficit is "inexcusable," Cox said. He explained that the legislation has the full support of AFGE.
The new legislation would help ensure the recruitment of much needed federal employees, as well as ensuring they are retained by providing better benefits.
By 2023, the increases to retirement contributions will amount to a loss in take-home pay of $21 billion for the federal employees hired during or after 2013, and the employee will not see any additional benefits during retirement either.
The retirement contribution increases happened to pass during a time when federal pay was frozen, budget cuts were threatening jobs, and unpaid absences undetermined their earnings, according to the National Active and Retired Federal Employees Association President Richard G. Thissen.
"H.R. 3031 would expand and create more flexible withdrawal options for Thrift Savings Plan (TSP) participants," Thissen said. "These changes will provide the proud men and women who serve this nation greater control over their own retirement savings and the ability to plan responsibly for their future."