APWU News Bulletin 14-2012, May 17, 2012
The House of Representatives voted for a 5 percent cut in postal and federal workers’ pay on May 10 by approving an increase in employees’ pension contributions. Republican members of the House provided all 218 votes in favor of the measure, while 183 Democrats and 16 Republicans opposed it.
The 2012 Sequester Replacement Reconciliation Act, (H.R. 5652) introduced by Budget Chairman Paul Ryan (R-WI), would phase-in the five percent employee contribution increases for both the Federal Employees Retirement System (FERS) and the Civil Service Retirement System (CSRS) over five years.
The bill requires FERS employees to contribute 5.8 percent of each paycheck toward the FERS basic annuity portion of their pensions and requires CSRS employees to contribute 12 percent, yet it does not increase employees’ annuities or improve benefits upon retirement.
The bill would also require new federal employees who are hired after 2012 with fewer than five years of previous federal service to immediately pay 5.8 percent to the FERS plan, with no phase-in. In addition, the bill would eliminate the FERS Social Security supplement for new employees hired beginning in 2013, which is now paid to FERS employees who voluntarily retire before reaching age 62.
“This should serve as a reminder to APWU members when voting in the November elections. Vote for candidates who support postal workers and working families,” said APWU President Cliff Guffey.
House Republicans Who Voted in Favor of H.R. 5652