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If the proposed budget deal becomes law, new federal workers will see a total of 10.6 percent of their salaries automatically withheld from their paychecks to cover their retirement benefits. That could lead to them contributing less or not at all to their voluntary Thrift Savings Plan accounts, experts said.
Newly hired federal workers will be required to contribute more toward their pensions and some military retirees will see smaller cost-of-living adjustments under a budget deal announced by Rep. Paul Ryan (R-Wis.) and Sen. Patty Murray (D-Wash.) Tuesday evening. The budget deal, which sets funding levels for the next two years, eases some of the bite of the automatic spending cuts, known as sequestration. The pact restores about $63 billion to agency spending through the end of fiscal 2015, split about evenly between Defense and civilian agencies.
John Koskinen, President Barack Obama's pick to lead the embattled Internal Revenue Service, pledged to restore public trust in the agency following the recent uproar over revelations of purported political bias by IRS employees. Speaking before the Senate Finance Committee Tuesday morning, Koskinen also said he'd work to turn around the declining employee morale.
Lawmakers, who face a self-imposed Friday deadline to come up with a fiscal 2014 budget plan, appear to be making progress toward a limited deal that would stave off another shutdown and give agencies the certainty of funding for the remainder of the year.But lawmakers with districts surrounding Washington, D.C. are preemptively speaking out against any proposal that, in their words, would "throw federal employees under the bus." Rep. Frank Wolf (R-Va.), says that too often in the past federal employees' pay and benefits have "been used as pawns in budget negotiations."
The number of federal employees filing for retirement is on a downward swing. For the fifth month in a row, fewer federal employees than expected filed for retirement, according to new data from the Office of Personnel Management. However, OPM's efforts at processing federal-employee retirement applications also took a nosedive last month. OPM processed just 5,700 claims in November, less than half of what it predicted it would and nearly half the number of cases the agency cleared last month.
With the official start of winter just two weeks away, the Office of Personnel Management is tweaking its closure and dismissal guidelines. The updated policy changes the way OPM will communicate delayed arrivals and continues to call on agencies to ensure all federal employees who are telework-ready actually do so when OPM gives the say-so during inclement weather.
When veterans and their families, who receive disability compensation and retirement benefits from the Veterans Affairs Department, receive their annual cost-of-living increase next month, for the first time ever, it won't be rounded down to the nearest dollar. Overall, the COLA for veterans benefits will increase 1.5 percent. Until this year, the COLA for veterans' benefits was rounded down to the nearest dollar. That will change with payments beginning in January.
A string of recent budget crises, doomsday deadlines and last-minute deals has complicated agencies' longer-term budget planning. However, most agency budget professionals say they're plowing through the uncertainty and will be able to meet spending targets for fiscal 2015 mandated by the Office of Management and Budget, according to a recent survey by Grant Thornton and the American Association for Budget and Program Analysis.
Rep. John Mica (R-Fla.), chairman of the House Oversight's Subcommittee on Government Operations, said the Federal Trade Commission and the General Services Administration are "thwarting" his proposal to force the FTC to relocate out of its historic headquarters building and into leased space in Southwest Washington, D.C.
The Office of Special Counsel, the agency tasked with investigating federal-agency whistleblower claims and protecting whistleblowers, themselves, from retaliation has seen demand for its work skyrocket in the wake of recent legislative changes. Now, Carolyn Lerner, the head of the OSC, said she hopes the small agency's budget will keep pace.