Federal Employees Would Pay More For Pension Benefits

pension benefits
Pension Protection Act of 2006. EEOB 450

Federal Employees Would Pay More For Pension Benefits

A newly raised House bill will make the federal employees of the state pay a considerably larger amount for their future pension benefits. This has received polar critiques from different members but its aim is to relieve the employees of getting their assets confiscated and in turn adding strength to their Medicare and social security.

Scott Rigell is the person who has raised voice and legislated the bill that would help in the restoration of around 3/4th of the spending cuts that get added to the non-defense as well as the defense budgets. This will also ensure that a substantial amount of money is added to the pays that get contributed to the pension funds of the feds that attained office before 2014. Put in simpler and clearer words, once this bill gets passed (which is more than likely) the percentages of contribution that the federal officers (hired in 2014 or later) have to currently give to the federal workers that come under the Federal Employee retirement system will get applied to everyone.

Many federal employees are in support of this bill even when they would now have to pay more towards their pension benefits. The majority pays around 0.8 percent but now it’s expected to go to as much as a staggering 4.4 percent.

The Bipartisan budget act was drafted by Paul Ryan and Senator Patty Murray in 2013 and according to it, the federal employees of 2014 or later would have to part with 4.4 % of their incomes to accumulate as later pensions and the ones that got employed after 2012 would have to pay a little less i.e. 3.1 percent. The rest would just have to pay 0.8 percent.

Now, after Scott’s bill gets passed, all of the employees would have to pay around 4.4 percent to get included in their pension funds. Whether this move is going to end up being positive or not, we shall wait and see.