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Benefits February 13, 2012
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.
Reported by Tara Cantore
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.”