Kelley Slams Ryan Budget Proposal As A Continuing Assault on Federal Workers

Press Release April 1, 2014

Washington, D.C.—The leader of the National Treasury Employees Union (NTEU) today sharply criticized the fiscal 2015 budget released by House Budget Committee Chairman Paul Ryan (R-Wis.), warning that it would continue the devastating policy of sequestration, hollow out the federal workforce and reduce the pay of current employees by forcing an increase of $125 billion in their retirement contributions.

“This budget piles even more burdens on the federal workforce. Employees are already juggling higher workloads with fewer resources and shrinking compensation," NTEU President Colleen M. Kelley said. "Congress needs to reject this budget, restore desperately-needed funding to federal agencies and stop the attacks on federal employees."

The budget plan calls for a higher federal employee pension contribution and proposes to eliminate a Social Security supplemental payment for early retirement.

The higher pension contributions, which could amount to as much as 6 percent of salary, would be the equivalent of a pay cut for the nation’s federal workers

Additionally, it proposes to transition the federal retirement system into a defined contribution plan, ending the current annuity system and leaving only the 401(k)-type Thrift Savings Plan.

Kelley called it an outrage that a budget proposal would seek to take millions of dollars from a federal workforce that already has contributed $138 billion to deficit reduction. "Federal employees have already given more than any other group in our country," Kelley said.

The proposal also would make further unspecified cuts to federal employee pay and benefits, as well as limit hiring to one new employee for every three who leave federal service, and eliminate repayment by the government of student loans for federal workers.

“Sequestration is a continuing disaster, and not just for federal agencies and their employees, but the public they serve,” the NTEU leader said. “Rather than extend it to 2024, as this proposal would do, we need to be moving forward to eliminate it and get back to the goal of providing the services Americans want and need.”

Overall, the Ryan budget—which largely mirrors his past proposals—would cut federal spending by $5.1 trillion over 10 years.

NTEU is the largest independent federal union, representing 150,000 employees in 31 agencies and departments.

Share: