From the NALC Activist Alert:
The NALC is on high alert as we await action as early as next week on H.R. 7, The American Energy and Infrastructure Jobs Act of 2012. Once again, it looks like the bill will be offset largely on the backs of current and future federal and postal employees. Initial reports indicate that they might use $30 billion from federal pensions hits to help pay for it.
While we have no firm details at this point on what exact hits will be included, those that have been raised include:
- Increasing pension contributions for FERS and CSRS employees 1.5 percent over three years, starting in 2013.
- Eliminating the Social Security supplement for those who retire after 2012.
- Reducing the multiplier from 1.1 percent to 1 percent per year of service when calculating the FERS annuity for those who retire at or after age 62, cutting benefits 9 percent from the current formula. (There is no change for those who retire under age 62.)
- Increasing pension contributions an additional 0.9 percent—this on top of the 2.3 percent that was included in the recent payroll tax extension, raising future hires from 0.8 percent to 4 percent in pension contributions.
- Moving from a high-3 average salary to a high-5.
- Using a multiplier of 0.7 percent per year of service when calculating the FERS annuity.
These provisions may change and, at this point, I am only asking that you continue to check your e-mail for action alerts as we monitor the situation. Your efforts will be critical as we move forward.
Thank you for your continued activism.
Fredric V. Rolando, President
National Association of Letter Carriers