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Shows & Panels
POLL: Deficit commission recs hit feds
Wednesday - 12/1/2010, 5:20pm EST
Here are some of the commission's recommendations:
- Bring federal pensions in line with private sector
The recommendation includes moving from a high-three to a high-five calculation of federal retiree benefits. Feds' retiree benefits are currently based on the average of the highest three years of salary. The commission wants to use the highest five years of salary.
The commission also wants to defer cost of living adjustments for retirees until age 62.
- Three-year pay freeze
The freeze would impact feds and civilians in the Defense Department. The commission estimates the cost savings to be $20.4 billion in 2015.
- Reduce federal workforce through attrition
For every three workers who leave, an agency can hire two new workers. The goal is to cut the federal workforce by 10 percent or 200,000 workers.
- Pilot FEHB Program
The Commission recommends transforming the Federal Employees Health Benefits Program into a defined contribution premium support plan that offers feds a fixed subsidy that grows by no more than GDP plus 1 percent each year.
- Reduce Congressional and White House budgets by 15 percent
Between FY2000 and FY2010, the budgets for Congress and the Executive Office fo the President have grown 50 percent. Reducing the budgets by 15 percent would save $800 million in 2015.
Do any of these recommendations sound like a good idea to you? Take our poll!
Do you have a good idea not on this list? Email us your ideas and comments.