Trump’s budget calls for hits on federal employee retirement programs

The Washington Post is reporting that Donald Trump’s proposed budget, due to be unveiled on Tuesday, would cut federal workers’ retirement benefits.

The Post story by Joe Davidson, lists the following changes to federal retirement benefits:

  • Increase Federal Employee Retirement System (FERS) contributions from workers by 1 percentage point each year until they equal the government’s contribution. This would take five to six years and would result in increased out-of-pocket payments of about 6 percent over that period. Out-of-pocket payments by federal law enforcement officers would increase by the same amount, but would not equal the greater contributions from law enforcement agencies.
  • Base future retirement benefits on the average of the high five years of salary instead of the current high three
  • Eliminate cost of living adjustments (COLA) for current and future FERS employees
  • Cut the COLA for Civil Service Retirement System (CSRS) employees by 0.5 percent from what the formula would allow
  • Eliminate supplement payments for FERS employees who retire beginning in 2018. The supplement approximates the value of Social Security benefits for those who retire before age 62.

While postal workers pay and benefits are governed by collective bargaining agreements, they are covered by the same retitrement programs, with the same benefits, as other federal employees.

Source: Trump’s budget calls for hits on federal employee retirement programs – The Washington Post

  • Bob D

    Vote republican, they’ve got your back. Just keep checking for knives

  • Keith Kushner

    “While postal workers pay and benefits are governed by collective bargaining agreements, they are covered by the same retitrement programs, with the same benefits, as other federal employees.”

    Really? Then how come they’re currently trying to take away our FEHB plans, by forcing us into Medicare and a non-FEHB, USPS-retiree-specific, Medicare+ plan? Not happening to other retired feds, no? At least not yet….

    Cutting our COLA (where even the current formula screws us) by 0.5% is also typical: cheat on deals you’ve made, claim exigency, and since the people you’re screwing haven’t any real power over you, get away with it.

    Both parties, BTW: the Medicare deal was bi-partisan.

  • postalnews

    Yes, really. Postal workers are “covered by the same retirement programs, with the same benefits, as other federal employees”.Everybody knows that USPS and the politicians and union leaderships want to change the treatment of health insurance.. (You may have read about it on this site?)

    That has nothing to do with the fact that we have the same pension plans, and Trump’s cuts would hit us all the same way.

  • yudhisthira

    If this applies to carriers, then the paycut in the the 6th year is $3,738 per year.

  • Egg Chan

    Except federal retirement programs come from taxpayers. You libtards never get that .

  • William James Ward

    So our cost in insurance goes up, big woop, I will retire and not be able to afford
    the high cost now, I am on my own. I will take the $500. plus and put it towards
    living a healthy life, what is left of it………………….the retirement fund is nothing
    compared to other retirements, in the PO unless you started very early in
    life you have nothing to look forward to but scraping by……………..William

  • Bob D

    The Postal Service pays it’s own way for retirements, it doesn’t come out of your pocket unless you use the Post Office, egg-on-face.

  • Egg Chan

    Go get your restrictions updated you fu**ing cripple

  • Carl Buick

    You are still wrong Egg Chan…the Postal Service is required to pre fund the retirements out 70 years into the future. If anyone is retarded, it’s a conservative.

  • C Keller

    Would this also include current FERS Retired personnel?

  • Thomas M Long Jr

    The prefund is for future health benefits for future employees. The 2006 PAEA is not for funding pensions or retirement pay.

  • lg

    going to retire next MAY..30 years plus would be getting the supplement.Now, maybe not?? This would really suck, planned my retirement on it. If i don’t get it, I will leave. not worth it
    to stay. How can they do this to employees so close to retirement? if anything, make these new rules for new hires only not us!!!

  • Jim Carroll

    As far as the Cola goes…the way I read it… Yes. If you’re already retired and receiving the “Bridge” they can’t take that away.

  • Jim Carroll

    I missed the early retirement offer at the end of 2012 by 2 years as far as the age requirement went and by “years of service at ANY age” – I missed THAT requirement by 8 months. Back then I said: ” Oh well, at least in 8 years I’ll be able to take advantage of the “Bridge” ( the ability to retire at 56 with a minimum of X number of years of service and receive a Social Security “supplement” until you hit 62 and then get your Social Security at age 62 ) It looks like I’ll miss it AGAIN by 36 Months with regard to age IF… IF this abomination gets passed by Congress. I SERIOUSLY don’t believe that it will pass both Houses of Congress ( The House of Representatives and the Senate ) Here’s why: There are Millions of Government workers, from ALL departments of the Government including THE MILITARY, that are covered by these retirement programs and rules. There is going to be a FIRESTORM of mail and E Mail going to Senators and Congressmen warning them that the mid term elections are coming up and if they vote for this baloney they will not be re elected. I believe this is just the Government’s way of shaking the tree to cause people to panic and retire. After this legislation is SHOT DOWN rumors of early out retirement offers will begin to circulate. It’s just a pattern of behavior – I’ve seen it before in the last 28 1/2 years that I’ve worked for these Lean ( sick ) Sigma fanatics. BTW…Lean Six Sigma means ” Pass the cost of doing business onto the next administrator after you’ve got your HIGH THREE years in starving whatever department it is that you’re running ! “

  • Daveminn

    This would affect all federal retirees under FERS. Not just postal employees.

  • Daveminn

    Egg, you’re wrong. The USPS is self-sufficient when it comes to funding. The only time they are not was maybe back in 2009-2010 when deficits exceeded income. Otherwise, they are the ONLY federal agency that is self-sufficient.

  • CK

    My concern is that as an “already retired FERS Postal employee” I realized that between age 56 and 62 I “would not” be included in future COLA’s and planed for that scenario, however after age 62 I understood that future COLA’s would be included in my retirement so did not plan on that. If an average cost of living over 25 years were to run at 2.5% that would be a huge reduction in income not planned for….;o(

  • postalnews

    Ummm, yeah- isn’t that what I said?