OPM Proposes Legislation to Cut Retirement Benefits for Current and Former Feds

May 7, 2018

Office of Personnel Management Director Jeff Pon wrote a letter to House Speaker Paul Ryan late last week requesting a number of legislative changes that would cut retirement benefits for federal workers.

The request, which Pon said would save taxpayers $143.5 billion over the next decade, comes on the eve of the White House’s planned introduction of $15 billion in spending cuts as part of a rescission package. Pon said his plans, which are a laundry list of previously proposed cuts to federal employee retirement programs, would “bring federal benefits more in line with the private sector.”

Pon wrote that the proposed changes reflect the move by private sector businesses away from defined-benefit pensions in recent years.

“In summary, the employee retirement landscape continues to evolve as private companies are providing less compensation in the form of retirement benefits,” the OPM chief stated. “The shift away from defined-benefit programs and cost-of-living adjustments for annuitants is part of that evolution.”


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Federal employees do not earn what private sector employees earn, making the the retirement and health benefits the only appealing reason to work for the federal government.

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