GOP Seeks Higher Pension Contributions for Feds, Much Lower Spending for Civilian Agencies
By Eric Katz
March 17, 2015
This story has been updated.
House Republicans have once again called on federal employees to contribute more to their retirement, bringing back the effective pay cut in their fiscal 2016 budget blueprint.
Following the precedent set by Rep. Paul Ryan, R-Wis., who no longer sits on the House Budget Committee, new Chairman Rep. Tom Price, R-Ga., included a pension contribution hike for feds as part of the $5.5 trillion in total savings the budget proposed over the next 10 years.
“In keeping with a recommendation from the National Commission on Fiscal Responsibility and Reform, this budget calls for federal employees—including members of Congress and congressional staff—to make greater contributions toward their own retirement,” thelegislative text stated.
While the plan did not specify exactly how much pension contributions would increase, the commission on fiscal responsibility – known as the Simpson-Bowles Commission – recommended “gradually” increasing federal civilian pensions “so that new federal employees ultimately pay about one-half the cost of their pensions, and existing federal employees pay one-quarter.”
A Budget Committee spokesman confirmed that the 50-50 split would amount to a 6.35 percent contribution level from feds, the same level Ryan’s budget recommended last year.
Seems to be a good idea, full steam ahead.
Ditto for Ridgewood, we should cap final comp for pension calculation at $110,000 and only allow 50% of that for pensions like California, would mean our 52 year old retirees can only earn $55,000 a year, not the $100,000 plus they’ll get when they retire by the end of 2016 at 65% of final comp well above $150K. Think about it, if a 52 year old retiree in Ridgewood today lives to their mid 80s, they;” make more in pension checks – at least $3 million – than they did in their 25 year working career. That’s a ponzi scheme !