Federal Republicans contemplating cuts to civil servants' wages, benefits, and job security within the government
The Republican Party has unveiled a 50-page document outlining potential provisions for a budget reconciliation bill, which includes several proposals to change pensions and healthcare for federal employees.
One of the key proposals is the revamp of the Official Time practice, where agencies pay union employees their normal salary for time spent on representational matters. The document suggests charging unions for this official time, a policy that was floated during the Trump era.
Another significant change concerns federal employee buyouts. The document establishes a $2 billion Voluntary Separation Incentive Payment Fund, with an increased buyout cap from $25,000 to $40,000 for all civilian employees. The buyout cap is already $40,000 at the Defense Department.
The document also proposes a lower eligibility threshold for buyouts, from 20 to 15 years. Additionally, it suggests beginning to charge a fee for federal workers seeking to appeal an adverse personnel action to the Merit Systems Protection Board.
Regarding retirement benefits, the document calls for an audit of FEHBP for improper enrollments by the Office of Personnel Management (OPM). OPM has stated that under the current 'decentralized' nature of the program, it does not have the capabilities to conduct such an audit.
The document also proposes reforming the FEHB and PSHB programs by replacing the current premium-sharing structure with a voucher, which would not be subject to income and payroll taxes. This could potentially lead to a shift towards a 'voucher model' for federal healthcare benefits, as proposed by the House GOP.
In terms of pensions, the document proposes a new classification system for future federal employees. Those who elect an at-will classification would have a lower FERS annuity contribution rate, while those who choose the current merit-based civil service system would have a higher rate.
One of the most impactful pension changes is the proposal to eliminate the FERS supplement for employees who retire before reaching Social Security eligibility at age 62. This would particularly affect federal law enforcement officers who retire at age 57.
The document also revives a proposal to base federal retirees' annuity payments on the average of the highest five years of an employee's salary, rather than the current 'High-3' calculation.
These proposals, if enacted, would significantly alter the benefits and working conditions for federal employees. The document is currently under review and discussion, with potential implications for the future of federal employment.
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