Trump isn’t the only one targeting federal employees. House Republicans are pushing cuts to pension benefits By Tami Luhby, CNN Updated: 9:00 AM EDT, Sat May 10, 2025 1/2
After months of contending with the Trump administration’s multi-pronged effort to downsize the federal workforce, government employees are now facing the possibility of another major change that could push even more of them out the door.
House Republicans are looking to make several big adjustments to federal workers’ retirement benefits to help pay for the party’s sweeping tax and spending cuts package.The House Oversight Committee last week approved a plan that would squeeze $50 billion in savings out of the retirement system over the next decade.
“They’re going to charge people more for the benefit, and then they’re going to reduce the benefit by changing the formula for how the benefit is calculated,” Jacqueline Simon, policy director of the American Federation of Government Employees, the largest federal workers union, told reporters on Monday.
The cuts could lead workers eligible for retirement to head for the exits in an effort to lock in their current benefits, union leaders say.
Congressional Republicans have long wanted to overhaul federal staffers’ pension system, as did President Donald Trump during his first term. But their efforts typically did not advance far.
In the current political environment, however, the policy push may have a greater chance of succeeding. Republicans’ “big, beautiful bill” has not yet been finalized and must still be approved by the full House and the Senate.
Rep. James Comer, the committee’s chair, described the effort as a way to save Americans money.
“The simple truth is that a significant amount of the costs associated with all of these benefits are funded by hardworking taxpayers in the private sector and increasingly now federal government borrowing,” Comer said in his opening remarks when the committee examined the plan.
At least one House Republican has already come out against the measure.Ohio Rep. Mike Turner joined Democrats in voting against the committee’s plan last week.
“I oppose any and all efforts to reduce federal spending by taking money from the hard-earned pensions of federal workers,” he said in a statement. “These pensions are not giveaways – they are promises to federal workers in exchange for their dedicated service.” (So Mike Turner, it doesn’t matter to you when citizens retire and get no benefits, but only hard earned pension federal workers are entitled to it? He hates Trump)
Hiking the contribution rate
The most significant measure approved by the committee would raise the Federal Employees Retirement System contribution rate for many current civilian and postal employees to 4.4% of their salary.Those hired prior to 2014 generally contribute either 0.8% or 3.1%, while more recent hires typically already contribute 4.4%.
For new retirees who are too young to collect Social Security benefits, the plan would eliminate an additional payment that’s currently available to retired federal workers until they turn 62. (how do they get a pension and SS?)
The plan would also base retirees’ pension payments on their average highest five earning years, instead of highest three years, which could reduce benefits by thousands of dollars annually.
https://lite.cnn.com/2025/05/10/politics/federal-employee-pension-benefits-republicans