House-Senate Budget Negotiators Discussed Your Pay Cut. This Is What They Came Up with

The House and Senate Budget Committees completed their conference of the FY 2016 non-binding budget blueprint at the end of April.  Although the language is somewhat vague, the conference report appears to assume the following about federal employees. For some, this could be up to a 12% pay cut. 

  • Federal workers would have to contribute approximately 6.25% more to their pensions than they currently do (cost to federal employees: $127 billion)
  • Federal Employees Health Benefits Plan (FEHBP) would be turned into a voucher program, shifting costs to federal employees and retirees (cost to federal employees: $60 billion)
  • The federal workforce would be reduced by 10% (cost to federal employees: $59 billion)

This means a pay cut of more than $3,000 a year for a GS-5 employee, the money they could use to buy groceries or pay rent.  

We know that some lawmakers argue that it is pointless to go forward until there is another deal with President Obama to lift sequestration. Others plan to forge ahead with appropriations bills until there is a tipping point.  

But this is a non-binding budget blueprint, right? 

Correct, but it doesn’t mean members of Congress won’t pass bad legislation cutting your pay, health care, and retirement. 

This budget blueprint serves as a framework for individual funding bills that congressional committees are churning out right now. 

“We are also constantly on the lookout for efforts to cut federal employees’ compensation in order to “pay-for” or offset, the cost of other legislation,” said AFGE Legislative and Political Director Beth Moten. “The most recent threat has been to cut federal workers’ retirement in order to pay for the extension of the highway bill. We are working with the transportation and building trades unions to ensure that they do not agree to such an offset.”  

Visit www.afge.org for more information about these cuts.


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