Federal Benefits Protected by New Budget

The Senate averted a potential government shutdown by passing a two-year budget that raised the debt ceiling. The package will now go to President Obama for approval. Congress passed the bill to prevent the nation from reaching its debt limit.

 

Conservatives opposed the bill, which involved a month-long negotiation and puts off another debt crisis until March of 2017. In addition to keeping Congress away from another debt ceiling for two years, the bill also keeps federal employees pay and benefits safe.

 

No Targeting of Federal Employee Benefits

 

Congress passed the bill without any provisions that would target federal employee benefits or pay. The final draft of the bill is very different from earlier agreements including the 2014 deal, which forced new employees to contribute more to their pension.

 

The President of the National Active and Retired Federal Employees Association gave his approval of the deal to the press saying, “We hope our leaders in Washington are learning, finally, that they cannot balance the budget on the backs of federal workers and retirees,” Richard Thissen said.

 

Federal retirees received more reprieve in this Bipartisan Budget. This year there was no cost of living adjustment due to lower inflation. This lack of COLA adjustment raised major concerns because of the rising costs of Medicare. The lack of a cost of living adjustment means that individuals who are not “held harmless” under their Medicare plan would have to pay an extra $54 per month to help offset the loss of income from those who would not see a raise in premium because of no COLA.

 

The bipartisan bill prevents some federal retirees, including individuals qualified under the Civil Service Retirement System (CSRS) from having to pay the additional costs. The new act protects individuals for this year, but does nothing to address a possible increase for next year.

 

Thissen addressed this portion of the agreement saying that the compromise is good but more needs to be done. “While I believe this is a good compromise for the 2016 premiums, Congress and the administration must fix this situation… Millions of individuals should not have to live with financial uncertainty just because their Medicare premiums do no come from social security,” he said.federal benefits

 

Potential Government Shutdown Still Exists

 

While the new budget agreement protects federal benefits and federal retiree benefits, it does not solve other funding problems, including the ability to provide funding or some agencies. If the White House does not come up with a way to fund agencies before the end of the year, we could still see a government shutdown. Congress has until December 11 to either come up with a resolution or pass a spending package to avoid closing doors.

 

New Speaker of the House Paul Ryan spoke out against the budget deal. Despite efforts to filibuster against the bill, the debate ended on Wednesday while Paul was away at a debate. Paul did speak in opposition to the bill and asked legislators to accept his more balanced budget. Paul took to Twitter and the media to encourage Senators to vote against the new agreement, but the senate voted to approve the bill around 1 a.m. Congress will be back in action on Monday to take on further spending issues to avoid a government shutdown next month.

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