BREAKING: Republican House Passes Federal Pay Cuts

Republican Budget Will Cut Take Home Pay of Current Federal Employees 5 Percent

The first round (not the only round) of Republican proposals significantly cutting real take-home pay of federal employees (as opposed to future cuts in pay or benefits) passed the Republican controlled House in a partisan vote on March 25, 2015 (228-199).  As reported in Government Executive, the Republican budget would result in a real pay cut up to 5 percent of take home pay for all current federal employees. Government Executive also noted the following adversely impacting points of the Republican House Budget Plan:

The budget would phase out the Federal Employees Retirement System annuity supplement, designed to boost the annuity of young retirees. It also outlined a plan to limit the rate of return on the Thrift Savings Plan’s government securities (G) fund, noting it could save $32 billion over 10 years.

The Federal Times also did a good job of covering this breaking news and notes the Republican budget continues draconian sequestration cuts.  In response, J. David Cox, President of the American Federation of Government employees, said the fiscal 2016 budget is a “declaration of war” against federal employees.

It is important for Federal Employees (who often go into a state of denial as a means of coping) to understand that these adversely impacting aspects of the Republican budget plan are not theory- they PASSED the House Vote.

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