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NTEU Supports Bill to Roll Back Pension Contribution Hikes from New Hires

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NTEU offered strong support for proposed legislation which would eliminate increased pension contributions imposed on new federal hires in 2012 and 2013.

President Colleen M. Kelley offered that support in a letter to Rep. Donna Edwards (D-Md.), who introduced the bill. The measure would return new employee contributions under the Federal Employees Retirement System (FERS) "to a reasonable percentage," Kelley wrote.

FERS contributions from new hires were boosted in 2012 to help pay for an extension of unemployment insurance, and again in 2013 to help offset spending in a budget agreement.

FERS covers the bulk of the federal workforce, and often is held out as a model pension program, among other reasons for the fact that it has no unfunded liabilities.

In her letter, President Kelley noted pointedly that while pension contributions were raised for new hires two years running, there were no corresponding increases in benefits, thus making the higher pension deductions from their paychecks "little more than a selective tax on federal employees." More

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Act NowAsk your member of Congress to co-sponsor the Federal Employee Pension Fairness Act.

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Act NowSupport H.R. 4306, the FAIR Act, which would provide federal employees with a 3.3 percent pay increase effective January 2015.

Act NowAsk your senator to co-sponsor S. 1192, the “Commonsense Contractor Compensation Act."

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