Not affiliated with The United States Office of Personnel Management or any government agency

Not affiliated with The United States Office of Personnel Management or any government agency

Political Climate Affects Federal Benefits

Political Climate Affects Federal Benefits federal retirement

Among one of the hot-button topics for presidential candidate debates is federal pay and benefits, though democratic candidates seem to have taken less of a hit than Republican candidates have on the issue in recent debates.

On October 13, Democrat presidential candidates addressed federal benefits including health care and education resources for veterans

. They also addressed paid family leave. While both Bernie Sanders and Hillary Clinton said they would like to make paid family leave federally mandated, some federal employers are taking steps in advance of any mandated requirements.

Better Maternity and Family Leave Federal Benefits

Federal employees working in the Navy will receive more than three times the previous amount of leave for maternity. Sailors and Marines are now eligible for 18 weeks of maternity leave. In addition, the Navy is discussing increasing the amount of paternity leave available. New fathers only get 10 days of leave to help care for a new child. According to reports by the Associated Press, the Navy may consider a 30-day leave for fathers.

Any new policies for federal family leave benefits would be in addition to Obama’s recent extension of federal employees. Obama recently ordered up to six weeks of paid leave for federal employees and asked that an additional 6-week of leave for maternity. Despite positive reception, Congress has yet to pass the changes.

Federal Benefits at Risk

The current political climate is putting other federal benefits in danger due to an ending resolution currently funding the government. The administration has until December 10 to come to a resolution. Obama has already said he will not sign another stopgap spending measure or continue sequestration.

In particular, federal retirement benefits are at risk. In 2013, representatives created a plan to break sequester gaps during the last 2 years. That agreement included a requirement that in 2015 new federal employees must increase the amount of money they fund to their retirement. This essentially lowers income levels of federal employees. While lawmakers have largely blocked this in the past, that may not be possible this year.

Other possible threats to federal benefits programs include changing the Thrift Saving Plan’s rate of return in the G fund. This change would require the calculation of pension benefits based on an average of five years of employment instead of three. This could effectively reduce the rate of return for thousands of federal retirees.

Other federal employees who could face a hit if Congress does not come up with a solution by December includes federal employees with the military. Obama could veto a 2016 Defense Authorization act that included a pay increase of about 1.3 percent for military troops. The act also included changes for retirement benefits.

Some presidential candidates have addressed federal employees and federal benefits including Republican candidate Carly Fiorina who addressed the need for reform in how federal employees are paid. “The government needs to get off seniority systems and go to meritocracies… pay for performance,” she told reporters. Fiorina also suggested a major hiring freeze to help reduce expenses and clean out the federal employee system.

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