President Barack Obama's budget proposal is expected to include up to $35 billion in cuts to federal retirement programs.
According to The Washington Post, a senior administration official told reporters at a White House media briefing that the president's plan would include cuts to federal retirement programs. In prior year budget proposals, the White House has said it would like to save $21 billion from 2013 to 2021 by asking federal employees to contribute more to their retirement savings plans and reducing the federal government's contributions by the same amount.
The government already has made changes to its pension plans by asking workers to contribute more. People hired in the past year are expected to pay 3.1 percent of their earnings toward their pensions. Most government employees contribute only 0.8 percent.
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