2013 Budget Calls for Increase in FERS Pension Contributions

February 13, 2012 (PLANSPONSOR.com) – President Obama’s 2013 budget calls for federal employees to contribute more to their pensions. 

According to news reports, the proposed budget calls for increasing federal employees’ retirement contributions by 0.4% per year for three years, or 1.2%. This would increase Federal Employees Retirement Systems (FERS) employees’ contributions from 0.8% to 2%, and Civil Service Retirement System contributions from 7% to 8.2%.

Future federal employees would also lose a supplemental payment that current FERS retirees that are not eligible for Social Security yet receive, said the report.

In a statement, National Federation of Federal Employees (NFFE) National President Bill Dougan said: “Though we applaud the president for proposing an end to the two-year federal pay freeze, we strongly oppose all budget provisions impacting federal retirement security. After two years of frozen pay resulting in $60 billion in savings, it is unfair to ask federal workers to pony up yet again for deficit reduction.”