NARFE Applauds Introduction of Legislation to Repeal Increases in Federal Employee Annuity Contributions

Alexandria, VA – 7/18/17 – The National Active and Retired Federal Employees Association (NARFE) is proud to support the Federal Employee Pension Fairness Act of 2017, which would repeal the two recent increases in federal employee retirement contributions. The legislation was introduced by Rep. Anthony Brown, D-MD, who was joined by original cosponsors: Reps. Elijah E. Cummings, D-MD; Peter A. DeFazio, D-OR; Dwight Evans, D-PA; John Garamendi, D-CA; Gene Green, D-TX; Colleen Hanabusa, D-HI; Hakeem S. Jeffries, D-NY; Barbara Lee, D-CA; Stephen F. Lynch, D-MA; James P. McGovern, D-MA; Grace F. Napolitano, D-CA; Eleanor Holmes Norton, D-DC; Collin C. Peterson, D-MN; Mark Pocan, D-WI; Jamie Raskin, D-MD; José E. Serrano, D-NY; Carol Shea-Porter, D-NH; Marc A. Veasey, D-TX; Bonnie Watson Coleman, D-NJ; and, Frederica S. Wilson, D-FL.

Beginning in 2013, new federal employees have had to pay more toward their retirement than their previously hired colleagues without any increase in benefits. Those hired in 2013 pay 2.3 percent more and those hired in 2014 pay 3.6 percent more than those hired prior to 2013. Over 10 years, these increases in retirement contributions will amount to a $21 billion loss in take-home pay for these federal employees, and much more thereafter, with no added benefit in retirement. The Federal Employee Pension Fairness Act would repeal both increases.

“These increases in retirement contributions came at a time when federal employees’ pay was frozen, sequestration budget cuts threatened their jobs and unpaid furloughs undermined their earnings,” said NARFE President Richard G. Thissen. “Over the past several years, federal employees have contributed more than $120 billion toward deficit reduction. It’s time we compensate them commensurate with their service and sacrifice and repeal these arbitrary retirement contribution increases.”

“Passage of this legislation would be the first step toward reversing the practice of dipping into the federal employee piggy bank to pay for other congressional priorities. It will help to ensure we can recruit and retain the best and brightest into public service. Our country needs a talented and experienced civil service to ensure the faithful execution of our laws and the delivery of services critical to hardworking taxpayers. Providing our public servants adequate compensation is about more than just fairness; it is about maintaining an efficient and effective federal government,” Thissen concluded.

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The National Active and Retired Federal Employees Association (NARFE), one of America’s oldest and largest associations, was founded in 1921 with the mission of protecting the earned rights and benefits of America’s active and retired federal workers. The largest federal employee/retiree organization, NARFE represents the interests of 5 million current and future federal annuitants, spouses and survivors.

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