Trump Proposes MASSIVE Pay Cuts for Federal Employees

In what is surely to amount to the single greatest pay cut in federal civil service history (and “takebacks” from federal retirees), Donald Trump, in his 2018 federal budget, proposes to cut federal pay by at least six-
percent.   This pay cut will come in the form of an increase in retirement contributions for federal employees with a corresponding decrease in actual retirement benefits.  In other words, federal employees will pay more into the retirement system but receive less in benefits.  Keep in mind, the FERS retirement system is financially stable, solvent and arguably a model system.

Additional proposed changes include,

  • Eliminate “high-3” and replace with “high-five”
  • Elimination of supplemental FERS annuity payments
  • Elimination of COLA under FERS
  • Reduce COLA under CSRS by 0.5 percent

Summation

The Trump proposal is not theoretical.  It was included in the 2018 proposed federal budget.  This is unlike previous efforts at reducing federal employee pay on this scale, which were largely discussed via think-tanks and policy groups, but never manifested in any real working document that could tangibly harm federal employees on this scale.

 

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