Proposals to raise employee contributions toward retirement and to switch to a voucher arrangement in the FEHB date back many years and traditionally have made little progress (except for changes enacted in 2012 and 2013 imposing lesser increases in contributions by those first hired into the government afterward). In addition to those, the House originally mentioned other often-raised ideas that would produce much smaller savings. Those would target the special retirement supplement for FERS employees who retire before age 62 and restrict the government share of FEHB premiums for those who retire with relatively few years of service. Also included was a long-running call to cut the federal workforce not involved with security or defense functions by 10 percent by attrition, and a new idea to reduce the rate of return, and thus the amount the government pays in interest, in the TSP’s government securities G fund. Also proposed recently, although not mentioned in the earlier House report, was a long-running plan to base annuities of future retirees on the highest five consecutive salary years rather than the currently used three years. All of those proposals come with numerous questions regarding exactly who would be impacted, how and when—questions that would have to be addressed when and if the ideas move forward.
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