'Silent RIF' Opposed


A proposed increase in agency contributions to federal employees' retirement funds would act as a "silent RIF," squeezing agency budgets and forcing agencies to lay off employees, the president of the Federal Managers Association said this week.

In a letter to Senate Budget Committee Chairman Pete Domenici, R-N.M., and House Budget Committee Chairman John Kasich, R-Ohio, FMA President Michael Styles urged Congress to eliminate a provision in the fiscal 1998 budget agreement that would increase agency contributions to the Civil Service Retirement and Disability Fund by 1.51 percent for 1998-2002 without giving agencies funds to cover the additional costs.

Employees would also be required to contribute more from their paychecks into the retirement fund. Employees in either the Civil Service Retirement System or the Federal Employees Retirement System would pay a total of .5 percent more of their income by 2001.

Styles said the increase "is not necessary to insure the health of the retirement fund and will force agencies to resort to layoffs."

"Leveling a 1.5 percent unfunded mandate on agency budgets and singling out federal workers for a payroll tax increase is counterproductive to making the government more efficient," Styles wrote.

Last week American Federation of Government Employees President John Sturdivant derided the budget agreement worked out by the White House and Congress because federal employees would pay an estimated 20 percent more in health care premiums, according to the Office of Personnel Management and the Congressional Research Service.

Sturdivant said many federal employees cannot afford health care coverage now.

"It would be unconscionable for the administration to insist on further painful cutbacks for government employees in the form of dramatically increased [health benefits] premiums," Sturdivant said.

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

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

  • Sponsored by Brocade

    Best of 2016 Federal Forum eBook

    Earlier this summer, Federal and tech industry leaders convened to talk security, machine learning, network modernization, DevOps, and much more at the 2016 Federal Forum. This eBook includes a useful summary highlighting the best content shared at the 2016 Federal Forum to help agencies modernize their network infrastructure.

  • Sponsored by CDW-G

    GBC Flash Poll Series: Merger & Acquisitions

    Download this GBC Flash Poll to learn more about federal perspectives on the impact of industry consolidation.

  • Sponsored by One Identity

    One Nation Under Guard: Securing User Identities Across State and Local Government

    In 2016, the government can expect even more sophisticated threats on the horizon, making it all the more imperative that agencies enforce proper identity and access management (IAM) practices. In order to better measure the current state of IAM at the state and local level, Government Business Council (GBC) conducted an in-depth research study of state and local employees.

  • Sponsored by Aquilent

    The Next Federal Evolution of Cloud

    This GBC report explains the evolution of cloud computing in federal government, and provides an outlook for the future of the cloud in government IT.

  • Sponsored by Aquilent

    A DevOps Roadmap for the Federal Government

    This GBC Report discusses how DevOps is steadily gaining traction among some of government's leading IT developers and agencies.

  • Sponsored by LTC Partners, administrators of the Federal Long Term Care Insurance Program

    Approaching the Brink of Federal Retirement

    Approximately 10,000 baby boomers are reaching retirement age per day, and a growing number of federal employees are preparing themselves for the next chapter of their lives. Learn how to tackle the challenges that today's workforce faces in laying the groundwork for a smooth and secure retirement.

  • Sponsored by Hewlett Packard Enterprise

    Cyber Defense 101: Arming the Next Generation of Government Employees

    Read this issue brief to learn about the sector's most potent challenges in the new cyber landscape and how government organizations are building a robust, threat-aware infrastructure

  • Sponsored by Aquilent

    GBC Issue Brief: Cultivating Digital Services in the Federal Landscape

    Read this GBC issue brief to learn more about the current state of digital services in the government, and how key players are pushing enhancements towards a user-centric approach.

  • Sponsored by CDW-G

    Joint Enterprise Licensing Agreements

    Read this eBook to learn how defense agencies can achieve savings and efficiencies with an Enterprise Software Agreement.

  • Sponsored by Cloudera

    Government Forum Content Library

    Get all the essential resources needed for effective technology strategies in the federal landscape.


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