In the past year, we’ve written about plenty of proposed laws that may have a positive or negative impact on your pay and benefits, and most importantly, your retirement.
Since there are many bills being proposed in Washington that could affect your financial future, we decided to highlight a few of the major proposals in this blog post. We will keep an eye on this legislation and publish important developments.
However, you should know what is at stake so you can be prepared for any changes to your financial situation. For better or worse, as a U.S. government employee, you are at the mercy of Congress and the White House.
Here’s some proposals to keep tabs on:
● Legislation introduced by Rep. Bruce Westerman, R-Ark., would change your basic annuity pension calculations. Currently, it is based on the highest average pay you earned during any three consecutive years of federal government service. The congressman’s bill would change that to the average of the highest five years of pay. This could cut pension payouts for some federal employees.
● Legislation introduced by Rep. Tom Rice, R-S.C., would cut salaries for all U.S. government workers who make more than $100,000, including members of Congress and the president, by 8.7 percent.
● Legislation introduced by Rep. Gerry Connolly, D-Va., would increase federal worker pay by 3.8 percent in 2016.
● Legislation introduced by Rep. Cynthia Lummis, R-Wy., and Rep. Mick Mulvaney, R-S.C., would reduce the federal workforce by 10 percent through attrition, enact hiring freezes, and force agencies to comply with a hiring to retirement ratio.
● Legislation introduced by Rep. Donna Edwards, D-Md, would roll back pension contribution hikes for new federal workers.
This is just the highlights: There are several other bills and proposals floating around Washington that could put your retirement security at risk.
We’ve said it before, but we can’t emphasize the point enough: you need to smooth your road to retirement today, whether you are 3 or 20 years from retirement. There are forces beyond your control that can dictate your financial future.
In addition to the proposed legislation highlighted in this blog, two resolutions passed Congress and the Senate that called for deep structural changes to your pay and benefits.
Please contact one of our federal benefits specialists today for a free consultation.
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