Congress

Rep. Edwards makes another bid to repeal pension contribution increase

Rep. Donna Edwards reintroduces the Federal Employee Pension Fairness Act to rescind the laws requiring feds hired after 2013 to pay more into their pensions th...

Jason Miller@jmillerWFED

February 6, 2015 4:47 am

3 min read

Rep. Donna Edwards (D-Md.) is trying once again to roll back the changes to federal employee benefits detailed in the Bipartisan Budget Control Act of 2013 and the Middle Class Tax Relief and Job Creation Act of 2012.

In the budget control act, employees hired after 2013 and without five years of previous federal experience would contribute a total of 4.4 percent of their salary to their pensions, up from the 0.8 percent workers are paying today.

That increase came after Congress also approved an increase to 3.1 percent for new employees hired in 2013 in the payroll tax cut bill.

Edwards wants both increases repealed.

“Enough is enough. It is our duty to ensure the fair treatment of the federal employees who have served our nation so well, especially during times of economic strain,” Edwards said in a release. “We must stop saddling our federal workers with such disproportionate burden, and start asking wealthy corporations to pay their fair share. I look forward to the opportunity to work with my colleagues in Congress to pass this bill that would bring needed relief to those who work tirelessly to keep us safe and our government running.”

Edwards’ bill, the Federal Employee Pension Fairness Act, would revert back to require feds to contribute 0.8 percent of their salary toward their pensions, and instead close corporate tax loopholes for companies that are incorporated overseas, but managed and controlled in the United States.

Edwards introduced the same bill in July. That bill never got heard in the any of the three committees it was referred to last year.

The America Federation of Government Employees (AFGE) applauded Edwards’ bill.

“While these higher retirement contributions were sold as a way to fund temporary increases in unemployment insurance and to pay for the stimulus that got the nation out of the Great Recession, Congress made them permanent,” said AFGE President J. David Cox in a release. “This is a major financial burden on these employees and it’s time for Congress to do the right thing and roll back these unfair increases.”

AFGE says the increased retirement contributions are among the $159 billion in compensation cuts since 2011, which included a pay freeze.

“These higher retirement contributions make it more challenging for agencies to recruit and retain new employees,” Cox said. “A Border Patrol agent hired today at a starting salary of about $48,000 a year will pay $1,700 more for his or her pension each year than someone in the exact same job and location hired in 2012 or before.”

The National Treasury Employees Union said eliminating the pension contribution increases is one of its top legislative priorities this year.

“Forcing newer employees to pay more toward their retirement is unfair and unnecessary. It reduces their take-home pay and is a tax increase imposed selectively,” said Colleen Kelley, NTEU president. “We applaud Rep. Edwards and others for once again taking action to end this discriminatory treatment faced by the newest members of the federal workforce.”

Edwards has 10 co-sponsors to the bill, including Reps. Gerry Connolly (D-Va.), Elijah Cummings (D-Md.), Eleanor Holmes Norton (D-D.C.) and several others.

New feds’ pension contributions increase under payroll tax cut deal

Rep. Edwards proposes restoring lower retirement contributions for feds