Proposed payroll deductions unpopular with federal workers
A budget-trimming proposal to increase federal workers' payroll deductions in order to contribute to the federal pension fund may spur employees to leave the federal service, according to the Washington Post. Additionally, potential future workers may be dissuaded from applying.
Dan Adcock, legislative director for the National Active and Retired Federal Employee Association, estimated that the majority of federal employees may be required to give up about 17 percent of their earnings to pay Social Security and payroll taxes, and make contributions to the Thrift Savings Plan.
Civilian federal workers, who currently give 0.8 percent of their salary to the Federal Employee Retirement System, would have to pay 6 percent under the new plan, which is being pushed by Republicans - the equivalent of more than a 5 percent pay cut.
According to the president of the nation's largest public union, the American Federation of Government Employees, union members have been expecting the proposal and plan to mobilize in opposition.
"We're going to ... remind them that we aren't a bunch of faceless bureaucrats, we're VA nurses, Social Security workers, border patrol agents," John Gage told the news source.
Treasury secretary Timothy Geithner recently suspended investments into two federal pension funds as a result of the U.S. hitting the debt ceiling.
Dan Adcock, legislative director for the National Active and Retired Federal Employee Association, estimated that the majority of federal employees may be required to give up about 17 percent of their earnings to pay Social Security and payroll taxes, and make contributions to the Thrift Savings Plan.
Civilian federal workers, who currently give 0.8 percent of their salary to the Federal Employee Retirement System, would have to pay 6 percent under the new plan, which is being pushed by Republicans - the equivalent of more than a 5 percent pay cut.
According to the president of the nation's largest public union, the American Federation of Government Employees, union members have been expecting the proposal and plan to mobilize in opposition.
"We're going to ... remind them that we aren't a bunch of faceless bureaucrats, we're VA nurses, Social Security workers, border patrol agents," John Gage told the news source.
Treasury secretary Timothy Geithner recently suspended investments into two federal pension funds as a result of the U.S. hitting the debt ceiling.
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