BIPARTISAN OPPOSITION IN RESPOND TO OPM PROPOSED COMPENSATION CUTS - May 15, 2018
OPM Retirement Cut Legislative Proposal Draws Bipartisan Opposition
By Erich Wagner, Government Executive
Late last week, Pon proposed legislation for a number of retirement cuts, all of which had previously been included in both of President Trump’s annual budget proposals. The suggested legislation would: eliminate Federal Employees Retirement System supplements for employees who retire before age 62; increase employee contributions to FERS by 1 percentage point per year until they reach an overall contribution level of 7.25 percent, matching the government’s share; change the basis of defined benefit annuity payments from an employee’s highest three years of salary to his or her highest five years; and eliminate cost-of-living adjustments for FERS retirees—both current and future—and reduce Civil Service Retirement System COLAs by 0.5 percent.