The government could save about $280 billion during the next decade by paring the size of the federal workforce, spending less on federal pay raises and pensions, and adopting a more conservative inflation gauge to calculate cost-of-living adjustments for civilian retirees and other participants in federal benefits programs, the Congressional Budget Office said in its latest rundown of deficit cutting options.
The update comes as a House-Senate conference committee looks at ways to avoid another round of sequester-related budget cuts next year as well as means for reducing future deficits over the long haul. Both congressional Republicans and the Obama administration, for example, have endorsed replacing the current consumer price index with the “chained CPI” to set COLAs for federal retirees, Social Security recipients and other federal program beneficiaries. By 2023, that shift would save about $162 billion, the CBO estimated.
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Federal workers, military personnel and veterans could take a hit under more than a dozen deficit-reduction options the nonpartisan Congressional Budget Office detailed in a new report Wednesday.
The potential impacts range from reduced pensions and cost-of-living raises for federal employees to capped pay increases for military personnel and stricter eligibility requirements for veterans’ disability.
Sen. Patty Murray (D-Wash.) talks to an aide during a conference on the budget. (Alex Wong/Getty)
The agency released its report shortly after a congressional conference committee held its second meeting to discuss budget matters and ways of avoiding another government shutdown like the one that occurred in October. The talks have yielded few signs of progress so far. Continue reading “Deficit-reduction plans could impact federal workers, military and veterans”
Some of the major proposals floated by lawmakers and the Obama administration to reduce the pay and retirement benefits of federal employees and service members would save the government at least $265 billion over the next decade, according to a new analysis from the nonpartisan Congressional Budget Office.
CBO detailed 103 policy options for decreasing government spending and increasing revenue over the next decade in a 305-page report released on Wednesday, including several that would affect the pay, benefits and size of the federal civilian and military workforce. The office does not make policy recommendations; it provides cost estimates of legislation and federal spending projections and analyses. The latest comprehensive report on options for reducing the deficit looks at possibilities for savings across a range of areas, including defense, health care, Social Security, taxes and veterans’ benefits, as well as federal employment.
Continue reading “Government Could Save Billions By Reducing Federal Pay and Benefits”