NTEU Supports Call for Shared Sacrifice, But Disappointed by Pension Proposal

Press Release February 13, 2012

Washington, D.C. –The National Treasury Employees Union (NTEU) agrees with the White House call in its fiscal 2013 budget proposal for shared sacrifice, but is disappointed with proposals that would increase federal pension contributions, its leader said today.

“I am glad to see a strong call for shared sacrifice among all Americans, particularly millionaires and billionaires,” said NTEU President Colleen M. Kelley. “However, I find it disappointing that the proposal includes an increase by federal employees to their pensions of 1.2 percent over three years. While this proposal is similar to the one submitted by the White House to the super committee last fall, it nonetheless fails to recognize the $60 billion contribution to deficit reduction already being made by the federal workforce through the two-year pay freeze.”

Under the White House budget blueprint, federal employees would contribute an additional 0.4 percent of their pay toward their pension for each of three years, beginning in 2013. The increase would then become permanent.

President Kelley noted that the administration’s budget proposal would end the two-year pay freeze and limit the elimination of the early retirement Social Security supplement for those covered under the Federal Employees Retirement System (FERS) to new hires. The White House has proposed a very minimal pay raise of 0.5 percent for 2013.

NTEU has been fighting against efforts in Congress to extend the federal pay freeze and drastically cut retirement benefits for current employees, many of whom are near retirement and have relied on promises made.

“Retaining the FERS supplement for current employees clearly is the right thing to do,” Kelley said. “It would be unfair to change the rules to take this from current employees at or near meeting the age and service requirements to retire prior to the age of 62.”

President Kelley also noted the importance of ending the two-year federal pay freeze, which, she said, “is continuing to take a heavy toll on the men and women who have dedicated themselves to public service.”

She emphasized that NTEU will continue to press for shared sacrifice—including increased contributions from the wealthy—as well as cuts in exorbitant reimbursement rates for government contractors.

“These avenues should be addressed before federal workers are asked to contribute any more through pay and benefit cuts to resolve an economic crisis not of their making,” Kelley said.

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

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