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House Republicans Attack Postal Retirement Benefits

From the American Postal Workers Union:

The House of Representatives voted 243-193 on Dec. 13 to pass the so-called “Middle Class Tax Relief and Job Creation Act of 2011,” which would cut take-home pay for postal and federal workers by increasing their contributions to the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS). The bill also would slash unemployment benefits, place unreasonable burdens on unemployed workers, and cut vital healthcare programs.

Voting in favor of H.R. 3630 were 224 Republicans and 10 Democrats. Fourteen Republicans and 179 Democrats voted no. Action on the bill now moves to the Senate.

The bill was introduced by Rep. Dave Camp (R-MI), and co-sponsored by Reps. Spencer Bachus (R-AL), Frank Lucas (R-OK), Dan Lungren (R-CA), Ileana Ros-Lehtinen (R-FL), and Fred Upton (R-MI).

The bill also would change the calculation of pensions for new hires with less than five years of creditable service and eliminate the FERS annuity supplement, which is designed to provide a benefit approximating the pension retirees would receive once they become eligible for earned Social Security benefits.

If enacted into law, employee contributions to CSRS would increase from the current rate of 7 percent to 8.5 percent of salary over a three-year span beginning in calendar year 2013. Contributions for employees covered by FERS would increase from 0.8 percent to 2.3 percent over the same period.

The bill would increase the contribution rate for postal and federal employees hired after Dec. 31, 2012, with less than five years of creditable service, from the current rate of 0.8 percent to 4 percent of salary. The pension formula for these employees would be based on the employees’ “high-five” years of service instead of the current “high-three” formula. Pensions for current employees’ would continue to be based on the “high-three.”

President Obama issued a statement before the House vote threatening to veto the bill if it reaches his desk.

APWU members are encouraged to immediately contact their senators and urge them to oppose this unfair and misguided attack on postal and federal workers when the bill is considered in the Senate.

via House Republicans Attack Postal and Federal Retirement Benefits.

  • rkc

    we’ve got to change how we think about our elected government. If your car breaks down, you don’t ask a politician to fox it, right? So, why do we continue to think that politicians can fix something as complex as a broken economy? Why don’t we start hiring technocrats who at least have the expertise to properly address and repair all that’s broke in this society! Just throwing money around, even our own fiat currency, is not going to solve the myriads of issues facing our society. Politicians from the two dominant parties don’t have any skill sets needed for an evolving world economy. We need people with engineering skills, resource management skills, marketing skills and social engineering skills.

  • jake

    How is that a cut in pay? you just get it later when you retire

  • Wake up

    FERS began Jan 1984. Fast forward the 30 years required for retirement and you arrive at Jan 2014 just two years away. The big push to dismantle the USPS ASAP is to prevent retiring FERS employees from receiving the social security supplement beginning Jan 2014!!!!!

  • BOGUS FINANCES

    Jake, would you rather have $10 today, or wait until next week?

  • Trebor11

    How is it less for retirement? If employee increases what is withheld for retirement by 1.5%, the government will decrease what they pay toward your retirement. This will mean that the same amount is paid toward your retirement and you will receive same amount as before bill. Only now you pay 1.5% more and government pays 1.5% less. Also, will be computed on your high-5 years of base salary, instead of current 3-years. Therefore, you will actually receive less in retirement, while paying 1.5% more toward your retirement.

  • City Carrier

    How is it a cut in pay? Did you really ask that? You can’t see that employees would be paying more into retirement for LESS of a pension than before!!!! Going from high 3, to a high 5 is a serious cun in benifits all by itself, not considering the higher percentage payed into the system…

  • BigO

    I am amazed that many employees under FERS do not realize what the Social Security annuity is or that we recieve it at our minimum retirement age. Under FERS if you retire at 56 you collect a pension, a TSP annuity PLUS the Social Security annuity which pays you an additional payment of what you would recieve at 62, if they take this away you will not recieve the benefit till 62. Say if that payment was 1000 a month for 6 years that’s 72,000 dollars you will never see.

  • A Smart Letter Carrier

    Please sign a petition to halt the destruction bill provided by the Middle Class Radical Killing Party, which is known as, “The Tea Party”. The billionaires and Oil Companies want to pad their pockets even bigger, so a remedy lies below.

    Sign this at the website below and help:

    http://dccc.org/payroll

  • patheticsh**

    Senate passed H.R. 3630 just after House.NO more s.s.supplement for FERS that retire after 12/31/12.FERS retirement now a 2-legged stool.After 30 years you get a 30% retirement….WOW! I now have to stay until 62….&^%%$#*@@$$%!!!!!