Fedweek

Both the House and Senate plan votes this week on spending outlines that say little but assume a lot regarding federal employment. The House plan specifically would increase employee contributions toward retirement benefits to equalize the employee and employer share of the costs—in most cases that would mean about a 6 percentage point increase on the employee side (with an offsetting reduction on the government side). While the budget measure itself, first released last week, does not specify other planned changes, a report released earlier this week contains what it calls assumptions and illustrative options for achieving savings to meet the spending levels it sets. Those include reducing the workforce by 10 percent by attrition, with exceptions for national security functions; capping the increase in the government’s share of FEHB premiums to general inflation, which is typically below the rate of increase in premiums; limiting government contributions toward FEHB premiums for retirees who had relatively short working careers; ending the FERS special retirement supplement, a benefit add-on paid to many who retire before age 62; and reducing the rate of return in the TSP’s government securities G fund. Even the report is largely void of detail on them, however.