[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]The Democratic control of the House is commencing next year, and with this, there is a planned bid which is meant to help in overturning the increment in retirement contributions for FERS workers, which was passed in 2012 and 2013. These laws resulted in FERS workers paying different levels of contributions to the civil service portion of their annuities based on the time when they were hired.
The workers hired before 2013 paid 0.8% while those hired in 2013 paid 3.1% and those employed in 2014 on the other hand pay 4.4%. These contributions are not included in the 6.2% social security deduction under FERS.
However, regardless of their level of contribution, the benefit of the plan works the same. The firefighters, law enforcement officers, and air traffic pay 0.5% more than other federal services providers across every case, but they receive enhanced benefits.
- Also Read: 3 Reasons Certain Federal Employees Can Retire Years Earlier Than Their Peers Without Penalties
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- Also Read: Roth IRA Basics for Beginners: What’s There to Learn?
The federal employees’ unions were confident that the Democrats would win on at least one of the Congress chambers, and therefore, prior to the election, they met with the Congressional Democrats and pleaded for a reverse on those increases. They hoped that their plea would be treated as a priority first thing after the Democrats commence work in that office.
A law which required a half percentage point increase in contributions for both FERS AND CSRS employees was enacted during the Clinton administration. This was a time when Republicans had control over Congress. The first two steps of the increment process were carried out, but instead of moving on to the third step, the whole increase idea was revoked, and the contributions reversed to their traditional or standard level.
The retract however came at a point where the government was at a good financial view such that a minor surplus compares to the future expected deficits which are already approaching $1 trillion. The federal workers’ rights which are set by the law are hard to make without the Congress intervention, and this is why the workers union hopes that the Congress will keep this to consideration.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”34599″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]
