Q: The House passed a bill that would cut fed pay and benefits. What exactly does this mean in terms of the annuity calculation? What does this 5 percent increase on the backs of federal workers have to do with saving the government anything? Will Congress as a body of federal employees be exempt from the increase?
A: The House passed a resolution containing the Republican majority’s proposals for the 2012 budget. As far as I can tell, it contains nothing that would affect the way annuities are calculated. It does, however, propose that the share that everyone covered either by FERS or CSRS now contribute toward their retirement be raised, thus reducing the amount that the government has to contribute. It seems unlikely that this proposal would clear the Senate as written.
