A House committee approved legislation on Feb. 7 that would cut pensions for postal and federal employees, while increasing the contributions the workers must make toward their retirement. The party-line vote was 22-16, with Republicans voting in favor of the retirement cuts and Democrats voting against.
“This bill is an outrageous attack on postal and federal employees,” said APWU President Cliff Guffey. “Some politicians are quick to cut benefits for middle-class workers, but they fight to the death to protect tax breaks for the super-rich.”
“Despite its name, the ‘Securing Annuities for Federal Employees Act’ would cut retirement benefits for postal and federal workers and make them pay more for less,” said Legislative Director Myke Reid. “This bill would amount to a pay cut for our members.”
The legislation (H.R. 3813) was shepherded through the House Oversight and Government Reform Committee by a pair of politicians who are well-known opponents of postal workers: Committee Chairman Darrell Issa (R-CA) and Rep. Dennis Ross (R-FL). The two are co-sponsors of H.R. 2309, a bill that would destroy the Postal Service as we know it.
Increases Costs, Cuts Benefits
H.R. 3813 would increase the amount postal and federal employees contribute to their retirement by 1.5 percent, with the increase phased in over three years, beginning in 2013.
Employees with less than five years of service would face an increase of 3.2 percent. (Employees in the Federal Employee Retirement System [FERS] currently pay 0.8 percent of salary into the pension fund. Employees enrolled in the Civil Service Retirement System [CSRS] currently pay 7 percent to their retirement system.)
It also would reduce pensions for employees with less than five years of service by calculating annuities based on the average of employees’ high-five salary years instead of their high-three years, which is the current method. In addition, their pensions would be calculated at a lower rate of 0.7 percent per year, down from 1 percent.
The measure would eliminate the supplemental annuity provision, which augments benefits for employees who retire before they are eligible for Social Security benefits at age 62.
Following committee adoption of the bill, the House Rules Committee voted to merge it with the H.R. 7, a $260 billion highway bill, which the House is expected to consider during the week of Feb. 13.
APWU members are encouraged to contact their representative as soon as possible and urge them to oppose the bill as it is currently written.
this is something that should have been done a long long time ago!!!! this is the reason SO MANY STATES ARE FACING BANKRUPTCY AS PUBLIC WORKER PENSIONS HAVE GONE UNDERFUNDED!!!!! THE BIGGEST PROBLEM WITH THE UNIONS FOR PUBLIC WORKERS AND UNFORTUNATELY OUR GOV. OFFICIALS WENT ALONG WITH IT IS THE WORKERS CONTRIBUTION PERCENTAGE WAS EXTREMELY LOW COMPARED TO WHAT THE TAXPAYERS HAD TO KICK IN!!!!! ALL PUBLIC EMPLOYEES PENSIONS SHOULD BE SWITCHED OVER TO A 401K TYPE SYSTEM LIKE THE PRIVATE SECTOR WITH A LARGER PORTION COMING FROM THE EMPLOYEES NOT THE EMPLOYER AND THEIR PENSIONS WILL BE JUST AS VULNERABLE AS THE REST OF US THEN MAYBE WE WOULDNT HAVE SEEN SUCH A HUGE CRASH AND SO MANY PEOPLE LOSING THEIR LIFE SAVINGS!!!!! EVERYONE KNOWS THAT IF ITS GONNA EFFECT OUR POLITICIANS NEGATIVELY THEY WONT LET IT HAPPEN!!!!!!!
They pay 0.8 percent………now I see the problem……this is woefully inadequate . Don’t believe me then look at teachers retirement systems where the pay a lot more….in the system I am in I pay 5 percent……..
This is just another tactic to put the final coffin nail in the union movement in this country. At that point, with no one representing working people, the powers that be will realize their goal of a feudal society: a few uber wealthy people with the rest of us in virtual slavery. Note to S. Fishman: Why would you want other working people to suffer because you feel their benefits are too generous? Wouldn’t it make more sense to fight for all working people to have good benefits and working conditions? For us to be fighting with one another for the few crumbs the elite are willing to toss to us is exactly what they want. BTW, Greeks are being sandbagged by bankers. They will not see any of the money they supposedly “owe.” Rather, it will go directly to the pockets of the bankers, and the people will pay…and pay…and pay…. Austerity measures are coming here next…if we let them. Since we all want the same things (happiness, a decent life), let’s refuse to let them divide and conquer us.
I showed this to my co-workers and they feel your passion and many of us are humbled and do count our blessings constantly. We wish you well in all that you, your family, co-workers and neighbors do going forward in life.
I think that with our current debt problem that cuts must be made across the board. I too am middle class but I do not wish to end up like greece. I do not work for the gov. but consider yourself lucky if you do because your benefits are so much better than those of us in the public sector. Your healthcare and retirement even with the mild cuts ensures you have security. We have none. Consider your glass as being half full instead of half empty. Many of us would love to be in your shoes. Count your blessings and tighten your belts like the rest of us. I love the postal service and wish you well and please keep it going. I am willing to pay more for postage.
The Post Office has been proactively trying to cut costs for years to prevent this and the congress wouldn’t approve cuts because it meant so much to the public. But now they are breaking contracts with their employees by cutting pensions. Wouldn’t it be illegal to change terms to any other contract. Why can companies change contracts with employees such as terms of pay and pension when it is covenant for them vs. making appropriate proactive plans. I used to Identify myself as a Republican now I am a registered Independent but things like this are pushing me to become a democrat. If you are not in the Top 1% of earners you have no business considering being a Republican because that party is now just for the elite few hiding money in the Cayman Islands and building 20,000 sq ft homes while the average American is upside down on their home and trying to make ends meet. They are lying to you so they can continue to dominate the country by creating management companies that take managment fees from struggling companies that bankrupts the companies and runs off with the money leaving working people poor and unable to take care of themselves.
Cut congress the same!
Are senators and house of representatives getting their pensions cut also?