Benefit Programs Generally Left Alone

Other than the funding shift proposal, the White House budget makes little mention of basic federal employee benefits such as retirement and insurance programs, other than to project spending obligations for them. There were no proposals to reduce retirement benefits or cost-of-living adjustments or to change the cost-sharing in FEHB, for example. The budget does repeat language from last year that the administration is interested in better coordinating FEHB and Medicare, and said it will “look to the practices of the private sector to ensure high quality, cost-conscious choices for retirees.” It also said it will propose legislation to change the computation of annuities for CSRS employees who switch to part-time work late in their careers to remove an “unintended adverse effect”-that is, a potentially significant reduction-in their annuities.