Browsing: pension

Ryan budget would kill FERS supplement, tuition assistance

12

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…

Boehner pushes COLA cuts in fiscal cliff talks

8

Multiple news organizations are reporting that House Speaker John Boehner included the so-called chained Consumer Price Index in his latest proposal to President Obama seeking to avert the fiscal cliff. This would put a big dent in the deficit — perhaps raising more than $290 billion over a decade — but it would hit federal and military retirees right in their pensions. Economists say the chained CPI is a more accurate method of determining inflation that is usually 0.25 to 0.30 percentage points lower than the current method. Adopting it for pensions, Social Security benefits and other indexed portions of…

OPM continues to whittle away at pension backlog

33

The Office of Personnel Management has cut its backlog of unprocessed pension claims by 21 percent in the five months since it unveiled a new strategy to fix the longstanding problem. According to statistics posted online today, OPM cut the backlog by 1,150 cases in June, bringing the backlog down to 48,323 unprocessed claims. In January, when OPM announced its plan to fix its problematic pension process, the inventory was 61,108. But even though OPM has made progress so far in 2012, the size of the backlog is still far greater than it was in October 2010, when OPM Director…

Pension processing picks back up in May

0

The Office of Personnel Management saw a hiccup in its pension processing efforts in April, when the number of claims processed dropped to 8,028. That was slightly below the 8,300 claims it expected to process that month, and noticeably below the 12,386 claims it processed in March. But May brought slightly better news for OPM. According to monthly stats released today, the number of claims processed in May jumped back up to 9,066 — about 500 more than OPM anticipated it would process last month. This helped bring the size of the backlog down to 49,473 — about 5,100 fewer…

Retirement claims slow in April

6

For several months, we’ve been tracking a disturbing increase in federal retirements — one which both complicated the Office of Personnel Management’s efforts to fix the pension process and suggests many feds have had it with the proposed pay and benefit cuts. But OPM’s latest stats show a surprising drop in the number of feds retiring. OPM said it received 6,616 retirement claims in April. That’s 17 percent less than the 8,000 it expected to receive last month, and 15 percent less than the 7,773 feds who retired in April 2011. Up until this point, retirement claims for the first…

Union fears pay cuts could hurt TSP savings

1

Federal employees’ Thrift Savings Plan accounts could end up collateral damage in the push to hike federal employees’ pension contributions, the American Federation of Government Employees said yesterday. At Monday’s meeting with the Federal Retirement Thrift Investment Board, AFGE public policy director Jacque Simon asked for more granular, grade-by-grade data on TSP contribution rates. Simon said she wants to know whether lower-paid federal employees are pulling back on their TSP contributions in response to proposals to increase pension contributions by anywhere from 1.2 percent to 5 percent. “It’s going to be increasingly important to have access to data like that,”…

GOP budget plan would drastically hike FERS contributions

8

The Republican Study Committee yesterday proposed steep increases to the amount federal employees would contribute to their pension plans. The committee’s budget plan for next year — called “Cut, Cap and Balance: A Budget for Fiscal Year 2013″ — calls for federal employees to split the cost of their pensions with taxpayers. Federal Employees Retirement System employees now contribute 0.8 percent of each paycheck toward their pensions; the government covers the remaining 11.7 percent. This would mean FERS employees would pay 6.25 percent of each paycheck toward their pension. (Plus another 6.2 percent towards Social Security, of course, and their…

Unemployment deal would cut Congress' cushy pension

5

Key congressional negotiators have just signed off on a conference report to extend the payroll tax cut and unemployment insurance, and there’s an unexpected surprise in there. New members of Congress would no longer get a cushy pension, and would instead get the same annuity as rank-and-file federal employees, according to Ali Ahmad, who is a spokesman for Rep. Darrell Issa, R-Calif. Feds under the Federal Employees Retirement System have their pension calculated at either 1 percent or 1.1 percent, depending on their age. But lawmakers under FERS have their pension calculated at 1.7 percent. That, when combined with their…

Bill cutting federal pensions hits House Rules Committee tonight

5

A bill that would increase the amount federal employees pay toward their pensions and steeply cut the pensions of future federal employees is continuing to work its way through the House. The House Rules Committee is scheduled to consider HR 3813, the Securing Annuities for Federal Employees Act, at a 5 p.m. meeting today, where it could be amended. The committee’s approval is the final step before it heads to the House floor. Fred Piccolo, the chief of staff for bill sponsor Rep. Dennis Ross, R-Fla., said it’s unclear when debate on the bill will begin, but said it could…

Bill cutting federal pensions heads to full House

10

The House Oversight and Government Reform Committee this evening passed a bill cutting federal pensions on a party-line vote. HR 3813, the Securing Annuities for Federal Employees Act, would raise the amounts federal employees contribute to their pensions by 1.5 percentage points, eliminate the Federal Employees Retirement System supplement for retirees who aren’t yet eligible for Social Security, and drastically cut pensions for future federal retirees. Read more about the bill here. Rep. Dennis Ross, R-Fla., the bill’s sponsor, said federal pensions are too expensive for the cash-strapped government to continue to cover. But Democrats unanimously blasted Republicans for treating…

1 2