AFGE Applauds House Bill to Repeal Federal Workforce Pay Cuts
Rep. Edwards' proposal would boost recruitment and retention of next generation of workers
WASHINGTON, Feb. 5, 2015 /PRNewswire-USNewswire/ --The American Federation of Government Employees today praised the reintroduction of legislation by Rep. Donna Edwards of Maryland that would repeal massive pay cuts to new federal employees. The legislation would reverse the large retirement contribution increases imposed on federal employees hired after 2012 as part of prior budget agreements.
"Federal employees hired beginning in 2014 are paying five and half times more toward their retirement than employees hired just two years earlier, while those hired in 2013 are paying four times more," AFGE National President J. David Cox Sr. said. "This is a major financial burden on these employees and it's time for Congress to do the right thing and roll back these unfair increases."
The increases in retirement contributions are among $159 billion in compensation cuts imposed on federal employees since 2011 to help reduce the federal deficit or pay for unrelated programs such as unemployment insurance. The Federal Employees Retirement System is fully funded, and employees are getting no additional benefit for the extra money they are forced to contribute.
"While these higher retirement contributions were sold as a way to fund temporary increases in unemployment insurance and to pay for the stimulus that got the nation out of the Great Recession, Congress made them permanent," Cox said.
Employees hired since the beginning of 2014 now pay 4.4% of their salaries toward the FERS defined benefit, reducing their take-home pay by $21 billion over 10 years, while employees hired during 2013 are paying 3.1%. Employees hired before 2013 pay 0.8% toward the pension system. In addition, employees pay 6.2% of their salary to Social Security and must contribute 5% toward the government's 401(k)-style retirement plan to get the full match.
"These higher retirement contributions make it more challenging for agencies to recruit and retain new employees," Cox said. "A Border Patrol agent hired today at a starting salary of about $48,000 a year will pay $1,700 more for his or her pension each year than someone in the exact same job and location hired in 2012 or before."
Cox commended Rep. Edwards for introducing the legislation, as she did in the previous Congress.
"Everyone who believes we should be creating a better future for our children and grandchildren should be outraged by these budgetary gimmicks, which hit middle class workers the hardest," Cox said. "The next generation should be better off, not worse, but Congress said exactly the opposite in passing these retirement cuts. Congress should pass the Edwards legislation and restore the promise of economic security for the next generation."
AFGE also thanked original cosponsors Elijah Cummings of Maryland, Gerry Connolly of Virginia, Matt Cartwright of Pennsylvania, Keith Ellison and Betty McCollum of Minnesota, Eleanor Holmes Norton of the District of Columbia, Charles Rangel of New York, Marcy Kaptur of Ohio, Stephen Lynch of Massachusetts, and Grace Napolitano of California.
The American Federation of Government Employees (AFGE) is the largest federal employee union, representing 670,000 workers in the federal government and the government of the District of Columbia.
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SOURCE American Federation of Government Employees
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