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Washington, D.C.—Drastic increases in pension contributions by federal employees would threaten the government’s ability to recruit and retain the quality employees it needs to serve the public, the head of the National Treasury Employees Union (NTEU) said in a letter to members of a key House committee which is considering raising such contributions by huge percentages.

“Make no mistake,” NTEU President Colleen M. Kelley wrote to members of the House Oversight and Government Reform Committee, “an increased contribution towards one’s pension with no corresponding increase in benefits, is a pay cut.”

The committee is considering budget reconciliation legislation which would require federal workers to contribute an additional five percent of salary toward their pensions on this timetable: an increase of 1.5 percent in 2013, followed by a .5 percent increase the next year and 1 percent more in each of 2015, 2016 and 2017.

“Insisting on further cuts to federal employee compensation, rather than spreading the sacrifice more broadly to include limiting tax cuts for the wealthy, is unconscionable,” she said.

She noted pointedly that not only are federal employees in the second year of a two-year pay freeze—and as a result, contributing $60 billion over 10 years to deficit reduction—they are making a further contribution of $15 billion in increased pension payments from new employees.

“I can assure you that if Congress continues to cut federal employees’ pay and benefits, this country will be unable to attract or retain talented people in the federal government,” Kelley wrote.

The committee legislative proposal seeks to significantly increase current employee contributions to the Federal Employees Retirement System (FERS) in the same week that FERS is showing a projected surplus of $12.2 billion, she said.

For those under the Civil Service Retirement System (CSRS), the proposal is for employees to boost their contribution rate to 12 percent of pay, Kelley said, pointing out that would be more than a 71 percent increase in their contribution.

“A pay cut of this magnitude to a workforce that, according to the latest data from the Bureau of Labor Statistics, is already underpaid by as much as 26 percent, is unreasonable and unfair,” she wrote.

The NTEU leader also took sharp issue with the bill’s proposal to eliminate the Social Security supplement for employees hired on or after Jan. 1, 2013. The supplement provides about one-third of the value of the pension for those who meet the age and service requirements to retire prior to age 62. Kelley said that for an employee retiring at age 55 with a $50,000 annual salary, the loss could amount to $65,520 compared to the present system.

“Such deep cuts in federal compensation will negatively affect recruitment and retention in the government, and will have a harmful effect on the services provided to America’s citizens,” Kelley said. “There are better ways to find savings.”

NTEU is the nation’s largest independent union of federal workers, representing 150,000 employees in 31 agencies and departments.