HOUSE AND SENATE PASS BILL AFFECTING FUTURE EMPLOYEES – NRLCA OPPOSES

On February 17, 2012, the House and Senate both passed a provision affecting the pension benefits and contributions of all future federal employees. The measure is expected to be signed by President Barack Obama when he returns to Washington, DC. Current federal and postal employees will not be affected.

The House of Representatives convened in a late morning session and voted on a conference report of H.R. 3630, a bill that extends the payroll tax cut and unemployment insurance for all Americans. The measure passed 293-132.

Attached to the bill, which many Members of Congress viewed as “must-pass” legislation, were provisions that affect all future federal employees hired after December 31, 2012, with less than five years of federal service. New hires after this date are subject to a 2.3% increase to their pension contribution into FERS. As part of the ongoing negotiations throughout the week, all provisions affecting current federal employees (i.e. increased pension contirbutions, high-3 to high-5, elimination of social security supplement, etc) were spared. However, the NRLCA fully expects future legislation to contain such provisions. Without them, the federal employee portion generated $15.5 billion dollars, a small chunk of the larger $42 billion windfall generated by H.R. 3813 (which includes changes to current employee pension benefits).

Soon after the House vote, the U.S. Senate voted to pass the measure. The final Senate vote was 60-36.

The NRLCA will continue to urge Members of Congress to maintain federal and postal employee benefits, emphasizing the sacrifice of those who serve in the public sector.

NRLCA Position:

Federal and postal employees work hard to maintain a commitment to public service which should not be burdened with an increased contribution to pension funds in order to pay for non-related government functions, such as transportation, energy, or unemployment.

via National Rural Letter Carriers’ Association.