NTEU Urges Congress to Reject Retirement Cuts

Press Release June 21, 2017

Washington, D.C – The National Treasury Employees Union (NTEU) is urging Congress to reject cuts to federal pay and pensions because they would endanger the economic security of thousands of middle class families across the United States.

NTEU, the largest independent union representing federal employees, is already on record opposing the retirement reforms contained in the administration’s 2018 budget proposal, but on Wednesday reinforced that message in a personal letter to every member of Congress.

“Like all American workers, federal employees face ever-increasing food, utility, health care, and college bills, and have rent and mortgage obligations,” according to the letter from NTEU National President Tony Reardon. “Families will fall further and further behind if pay is cut and cost-of-living adjustments, that are similarly made to Social Security, and to military retirement and to veteran’s benefits to keep these payments whole, are removed in retirement.”

The proposed cuts will negatively affect every current, past and future federal employee in every agency of the government. But they would be especially harsh for federal law enforcement officers, firefighters and air traffic controllers who have mandatory early retirement.

The proposals would raise the amount that current employees have to pay toward retirement, (a 6 percent pay cut for most workers); base future retirement benefits on the average of the highest five years of salary instead of the current three; eliminate the supplement for employees who retire before they can start collecting Social Security at age 62; eliminate the cost of living adjustments for all current and future retirees covered by the Federal Employee Retirement System (FERS); and reduce the cost of living adjustments for Civil Service Retirement System (CSRS) retirees.

Together, these cuts would be devastating for those who were promised a secure retirement in exchange for their years of public service.

“Federal employees play a vital role for taxpayers—ensuring air, water, drug and food safety and border and national security, preserving our national parks, and regulating consumer and financial institutions, to name just a few of their functions and missions,” Reardon wrote.

The $149 billion in cuts would be on top of the $182 billion that federal employees have already given up since 2010. The latest rollbacks are even more insulting because they are contained in a budget proposal that would use the savings to pay for tax cuts for the wealthy.

“The federal government should be protecting these benefits, as well as setting an example for the private sector, and devoting its resources to extending retirement security for all Americans,” the letter states.

NTEU represents 150,000 employees at 31 federal agencies and departments. 

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