New Retirement Benefits Planned But The Path Has Not Been Confirmed
With the start of the new fiscal year in October, a newly adopted policy will result in employees paying more towards their retirement benefits. This includes employees of the Federal Employees Retirement System who opt for retirement before the age of 62.
The plan is officially named “H. Con. Res. 71” and was recently passed by Congress in light of recent discoveries about the declining trend of the Federal Reserve. This plan, although outlined in sufficient detail, has many problems regarding its implementation because a lot of the departments of the Government’s financial sector will need to be settled.
This Congress bill has faced opposition not only from the Democrats who lost their presidency last November but also from some of the less extremist and easy-going sectors of the House Republicans. The problem which has been pointed out is quite simple to understand; getting federal workers to pay more for the retirement benefits for people in the future means that overall whatever will be obtained from the new policy will be quite redundant. This means that even though the potential $32 billion dollars that can be collected by the Federal Reserve in the next ten years seems quite appealing – it will end up being spent for the same cause which ultimately raises the questions of, why should those working in this decade suffer?
The only step that seems clear shall begin from the White House where the elimination of the special doubled benefit acquired by FERS employees shall take place. The new policy already has documented opposition by the name of (HR-3269), which is a bill backed by employee organizations, which calls for the elimination of the need for FERS employees hired after 2012 to pay more into the retirement system than those hired before.