The House Budget Committee’s report on Rep. Paul Ryan’s fiscal 2014 budget fills in a few more details on how it would affect federal employees. The budget, which the House passed March 21, would get rid of the Federal Employees Retirement System supplemental payment beginning in January 2014. That supplement is paid to FERS employees who retire before age 62, to replace the Social Security payment for which they are not yet eligible.
The bill also would eliminate student loan repayments for federal employees. And its 10 percent federal workforce cut would be achieved by allowing agencies to only hire one new employee for every three who leave.
Ryan’s budget also takes a page from the Simpson-Bowles commission and increases the amount federal employees contribute to their pensions. The House Budget Committee said the retirement benefit cuts could save $132 billion over a decade.
The Ryan budget is sure to run aground in the Democratic-controlled Senate. But some of these proposals could be resurrected later this year, as part of budget negotiations.