Oct 16, 2017

NAGE Opposes FY18 House Budget

On Wednesday, October 4, 2017, the House of Representatives passed a budget resolution (H. Con. Res. 71) for Fiscal Year 2018.

The resolution includes reconciliation instructions which tasks the House Oversight and Government Reform Committee to draft legislative proposals to reduce the deficit by $32 billion over the next 10 years through civil service pension reform. However, Rep. Gerry Connolly, D-VA., ranking member of the House OGR Committee, stated “the overall cost of the overall budget to federal workers and retirees could reach as high as $163 billion over the next decade.” Such reforms will include:
  • Six percent point Increase employee contribution to the Federal Employee Retirement System over the next six years;
  • Elimination of cost of living adjustments for FERS employees;
  • 0.5 percent reduction in COLAs for Civil Service Retirement System enrollees;
  • Elimination of FERS supplemental payments to employees who retire prior to age 62;
  • Basing value of retirement benefits on the highest five years of the employee’s earnings instead of current three highest years;
  • Reducing the rate of return for thrift savings G Fund.
The resolution also includes a provision that advocates changing how the Office of Personnel Management formulates the government’s maximum contribution to insurance premiums through the Federal Employees Health Benefits Program.

Only a life lived for others is a life worthwhile. - Albert Einstein
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