House Republicans Pass Pay Cut
For Postal, Federal Employees
APWU News Bulletin 14-2012, May 17, 2012 | PDF
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
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
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