SUMMARY: NTEU sent a letter to every member of the House of Representatives urging a “no” vote on H Con Res 96, the House Budget Resolution
Today, NTEU sent a letter to every member of the House of Representatives urging a “no” vote on H Con Res 96, the House Budget Resolution authored by Congressman Paul Ryan (R-WI). The House will vote later this week. NTEU made clear to the Representatives that this budget would put hugely disproportionate burdens on federal employees and reminded them that federal employees have already contributed $138 billion in deficit reduction, more than any other group.
The Ryan budget calls for $125 billion in savings from the federal retirement system, including higher pension contributions (or the equivalent of pay cuts) for all federal employees which could amount to 5 to 6% of salary and the end of the FERS supplement, which substitutes for Social Security payments for employees eligible to retire before age 62. While these two proposals have been included in Chairman Ryan’s proposals in the past, the FY 2015 proposal also calls for a transition to a defined contribution plan, in other words, the end of any defined benefit annuity and a change to the 401(k)-type, TSP-only plan.
The Ryan budget also proposes limiting federal hiring to one replacement for every three employees who leave, along with other unspecified cuts to federal pay and benefits. And it proposes to eliminate repayment by the government of student loans for federal employees. It also extends sequestration an additional three years, until 2024. A copy of the letter is attached.
Full text of letter: NTEU Urges No Vote on HConRes96