Read the following. Do you think these are drastic or unfair changes?
Before you answer, keep in mind you are paying for these benefits and for most federal civilian workers their total compensation is now 44% or more higher than average in the private sector.
The fact is none of these proposed changes are drastic given the generous nature of the benefits. After they are implemented the benefits will still be above the level of the private sector, even for private sector workers who are lucky to have an employer pension.
In the real world where money matters and you can’t endlessly add to debt, or demand money from your neighbors, these are far from significant cuts.
President Trump’s 2019 budget proposal included asking Congress to approve a 2019 pay freeze for all civilian employees and several significant cuts to retirement benefits, including:
• increase federal employee contributions to the Federal Employees Retirement System (FERS)
• by 6 percent — phased in over period of six years
• eliminate cost of living adjustments (COLAs) for FERS retirees, and would reduce CSRS retiree COLAs by 0.5 percent
• Eliminate the FERS Special Retirement Supplement for those who retire before age 62
• Calculate future federal retirement benefits on the average of an employee’s highest five years of salary for those retiring later than 2019 (it is currently is based on the highest three years salary)
The White House’s 2019 budget proposal also included implementing a pay-for-performance model of compensation and slowing the in-grade pay step increases. Source: my federalretirement.com