via the Denver Post is reportingTrump’s fiscal 2018 budget would: Increase Federal Employees Retirement System contributions from workers by 1 percentage point each year until they equal the government’s contribution. 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. Eliminate supplement payments for FERS employees who retire beginning in 2018. –
- 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.
Most of these proposals have been in the Republican playbook for years. With that party now in control of the White House and Congress, chances increase that some or all of them will become law, even as the probability is low that Trump’s entire budget will be enacted as proposed.
The National Active and Retired Federal Employees Association (NARFE) Responds To Reported Threats in the President’s 2018 Budget
In response to a report by The Washington Post regarding President Trump’s fiscal year 2018 budget, NARFE President Richard Thissen said the following:
“The rumored details of President Trump’s first full budget with respect to federal employees and retirees are nothing short of an egregious attack on federal service and seniors. The President purports to defend government annuities like Social Security and then proposes to eliminate cost-of-living adjustments for some and limit COLAs for those already retired and living on fixed incomes. It is beyond insulting. It is downright mean. Simultaneously promoting tax cuts and forcing a tax on just federal employees, through an increase in retirement contributions, is the height of hypocrisy.
“This Administration, more than any before it, and this country need a quality and experienced civil service to ensure the faithful execution of our laws and the delivery of services critical to hard-working taxpayers. Arbitrarily decreasing benefits will not only lead to an exodus of experienced employees, but will also threaten the very safety of our nation.
“Federal families are taxpayers, too. The disrespect this budget shows to those who defend our country undermines morale and denigrates the integrity and commitment of those civil servants who serve in every American community. This rumored budget proposal is unconscionable. I urge Congress to recognize the President’s Budget for the flawed document it is. Every day, federal employees and retirees put country first. Our spending priorities should as well. This budget is a giant leap in the wrong direction.”