The House approved a bill Thursday requiring federal employees to contribute 5 percent more of their salaries over five years toward retirement, as part of a wider deal hoping to avoid the fiscal cliff.
The 2012 Spending Reduction Act, introduced by House Majority Leader Eric Cantor (R-Va.), is almost the same as a measure passed by the House last spring that sought to prevent the automatic sequestration cuts by replacing them with alternative savings.
Federal workers under the Federal Employees Retirement System now pay 0.8 percent of their salaries toward their pensions while the government kicks in 11.7 percent. Under the proposed bill, by 2017 federal workers under FERS would be required to contribute 5.8 percent.
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