Retirement Cuts on Table

Federal unions and managers' associations are concerned that President Clinton is set to propose $10 billion in benefit cuts for federal retirees for the second consecutive year.

The employees' groups have been lobbying for several weeks to persuade the White House to drop provisions in its draft fiscal 1998 budget that would require agencies and employees to contribute more to the Civil Service Retirement and Disability Fund and would delay federal retirees' cost-of-living adjustments by several months each year.

Last year, Clinton proposed $10 billion in savings from retirement programs as part of his balanced-budget package. But Congress was unwilling to take on the issue in an election year. In 1995, Rep. John Mica, R-Fl., chairman of the House Government Reform and Oversight Subcommittee on the Civil Service, proposed a plan to require federal employees to contribute 2.5 percent more per pay check toward the retirement fund while simultaneously reducing benefits by up to 4 percent. The idea didn't fly.

This year, Congressional Quarterly recently reported, House Republicans intend to leave federal retirement programs alone in their budget plans.

In a letter to President Clinton, Federal Managers Association President Michael Styles urged him not to cut benefits.

"News reports indicate that GOP leaders of the House and Senate budget committees do not currently have the $10 billion package of federal retirement cuts in their draft budget plans," Styles wrote. "In the spirit of bipartisan cooperation, FMA urges you likewise to remove federal retirement cuts from your budget."

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download
  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care

    Download

When you download a report, your information may be shared with the underwriters of that document.