House Severs Federal Pension Provisions from Highway Bill

After facing opposition, the House has changed course on the transportation bill that originally included an off-set that would have funded a portion of the bill through the elimination of the FERS annuity supplement and increased employee contributions to FERS and CSRS.

A portion of the retirement bill relating to new federal hires, H.R. 3813, was used to off-set the cost of the payroll tax holiday that President Barack Obama signed into law this week. That legislation included increased contributions to FERS for all new employees hired beginning in January 1, 2013.

Much of the opposition to H.R. 7, the surface transportation bill, centered on transportation-related issues. A senior House GOP aide reported this week that House Republicans plan to make other changes to H.R. 7 to create a smaller package, including a plan to abandon transit funding changes, as well as shorten the nearly five-year long highway bill. Given that part of the H.R. 3813 has already been used and the uncertainty surrounding the highway transportation bill, it is unclear if changes to federal retirement benefits for current federal employees will be used to pay for the legislation. However, it is still part of the conversation.

Posted in From the Hill

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