Home Media Center News Releases

Washington, D.C.-President Colleen M. Kelley of the National Treasury Employees Union (NTEU) today expressed her support of the action by the Senate Appropriations Committee to roll back increased retirement contributions by federal employees and to extend for another year a program of child care subsidies in the federal workplace.

The provisions were contained in that chamber's version of the Treasury Postal Appropriations Bill. In a related development extending into the evening, the full House of Representatives was expected to give final approval to similar measures affecting the retirement contributions and child care subsidy in the House Treasury Appropriations Bill.

Kelley called approval of the repeal of the 0.5 percent increase in the retirement contributions of federal employees "a welcome development." It was imposed on federal workers by the Balanced Budget Act of 1997 as a deficit-reduction tool.

The NTEU leader noted that the additional contributions did not provide any additional benefit and that, while it was unfair to enact it in the first place, the projected huge budget surpluses over the next decade make its repeal "the right step to take." Eliminating it would result in an increase of $262 in the annual take-home pay of the average federal employee.

NTEU has established as one of its legislative priorities a permanent child care subsidy program in the federal workplace. The current pilot program, enacted in large part because of NTEU's efforts, is set to expire on September 30.

"NTEU led the fight for these measures," Kelley said, "and their approval by the Senate Appropriations Committee is a sign to federal employees that their commitment to serve the American public, along with their professionalism and their dedication to their jobs is recognized."

At the same time, she said, fiscal 2001 Treasury Postal budget proposals in Congress contain recommendations for funding levels that fall far short of those requested by the administration for a number of key agencies, including the Internal Revenue Service and the Customs Service, impacting such vital areas as customer service and technology modernization.

"I think there is a growing realization that these funding issues will need to be reassessed," Kelley said.

"Unless agencies have the money they need, there is no way federal employees can provide the level of service the public wants, needs and has the right to expect," she said. "We'll continue to push for adequate funding as the funding process moves forward."

NTEU is the largest independent federal union, representing more than 155,000 employees in 25 agencies and departments.