Mixed Reviews for Proposed Pension Contribution Hikes

Mixed Reviews for Proposed Pension Contribution Hikes

J. David Cox, AFGE National President
J. David Cox, AFGE National President AFGE

The budget deal has been struck.

To review, the compromise package to roll back sequestration cuts required by the 2011 Budget Control Act for two years targets federal employees’ pensions as expected. While current workers were spared, civil servants hired after 2013 would pay 4.4 percent of their annual salaries toward their defined retirement benefit. This marks a 1.3 percent increase from the current contribution requirement for new hires, though any employee hired in or before 2012 pays only 0.8 percent of their salary toward their pension.

Military retirees’ pensions would also take a hit, as the deal requires a less generous annual cost of living adjustment. Overall, the plan takes $12 billion in savings from federal workers. Continue reading “Mixed Reviews for Proposed Pension Contribution Hikes”

Democrats, Unions Demand Complete Government Reopening and Back Pay

Democrats, Unions Demand Complete Government Reopening and Back Pay

House Minority Whip Rep. Steny Hoyer

House Minority Whip Rep. Steny Hoyer Evan Vucci/AP

House Democrats and federal employee unions gathered in the shadow of the Capitol Building Tuesday to call for the immediate reopening of government and retroactive pay to furloughed workers.

Democratic Whip Steny Hoyer, Md., led a coalition of lawmakers from the suburbs of Washington, D.C. — areas that are home to a large number of federal employees — in the press conference. The lawmakers and union representatives said House Republicans were taking federal employees hostage, and called Tuesday, the first day of the government shutdown, a “tragic day” for the workforce.

“Our federal employees play a crucial role in keeping America strong, safe and free,” Hoyer said, flanked by dozens of workers who held up signs that read “let us work” and children with posters that said “Congress ruined my vacation.” Continue reading “Democrats, Unions Demand Complete Government Reopening and Back Pay”

Obama to Back 1 Percent Pay Boost for Feds Next Year

Obama to Back 1 Percent Pay Boost for Feds Next Year

Pablo Martinez Monsivais/AP

President Obama is proposing a 1 percent pay increase for federal civilian employees in fiscal 2014, according to federal employee labor unions.

The White House announced the decision to recommend the pay bump in Obama’s fiscal 2014 budget proposal during a phone call with labor leaders on Friday. Obama is seeking a 0.5 percent pay increase for federal employees this year, scheduled to take effect after March 27, unless Congress blocks it. Federal civilian pay has been frozen since 2011. The Defense Department this week said it would recommend a 1 percent pay increase for troops in fiscal 2014. Continue reading “Obama to Back 1 Percent Pay Boost for Feds Next Year”

Obama to Unfreeze Federal Worker Pay in 2013 Budget

Obama to Unfreeze Federal Worker Pay in 2013 Budget

January 6, 2012

The White House will propose a 0.5 percent pay increase for civilian federal employees as part of its 2013 budget proposal, according to two senior administration officials familiar with the plans.

The modest across-the-board pay jump would be the first increase for federal workers since before a two-year freeze began in late 2010. Raises for within-grade step increases and promotions have continued during the freeze.

The proposal, which requires congressional approval, differs from Republican plans supported by lawmakers and presidential candidates that would freeze basic pay rates for one more year. Some of those plans also call for denying within-grade raises. In recent weeks, GOP lawmakers have called for extending the pay freeze as a way to pay for a payroll tax extension. Continue reading “Obama to Unfreeze Federal Worker Pay in 2013 Budget”

Federal agencies bracing for cuts after ‘fiscal cliff’ deal

Federal agencies bracing for cuts after ‘fiscal cliff’ deal

Video: President Obama is praising the bill that staves off the “fiscal cliff” tax hikes and spending cuts. The House of Representatives followed the Senate’s lead and passed the bill late Tuesday.

By and , Published: January 2

The fiscal pact Congress reached hours into the new year will delay $109 billion in automatic across-the-board spending cuts for two months. But it will make a down payment on those reductions that will affect federal operations this year and next.

The eleventh-hour agreement to avoid a “fiscal cliff” of higher taxes put off the major cuts known as a sequester until March 1, when another showdown is expected over the federal