House Budget Committee Chairman Paul Ryan released a budget plan Tuesday that would again increase retirement contributions by federal workers and reduce the amount paid by the government.
The Wisconsin Republican's plan does not indicate how big the increase would be but past plans from the budget committee have intended to make the two shares equal, which would mean a rise in an employee's share of nearly six percent of salary.
"This would achieve significant budgetary savings and also help facilitate a transition to a defined-contribution system for new federal employees that would give them more control over their own retirement security. This option would save an estimated $125 billion over ten years," the plan says.
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There have been some increases over the last two years in the contributions made by federal workers, but they have been for smaller amounts and applied only to employees joining the government after a certain date.
Those increases did not affect workers in the separate Civil Service Retirement System, as no new hires are included in that.
The Ryan proposal also calls for "reform" of a supplemental benefit for federal employees who retire before the age of 62, when they become eligible for Social Security benefits.
The plan came under fire from retirement groups representing federal workers. "Chairman Ryan's proposal to squeeze another $125 billion through increased retirement contributions is nothing more than a thinly veiled pay cut and would exacerbate a growing problem," Joseph Beaudoin, president of the National Active and Retired Federal Employees Association, said in a statement.
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