House GOP Budget Proposal: Cut Federal Benefits, Reduce Workforce
Last week Rep. Paul Ryan (R-WI), chairman of the House Budget Committee, released the 2015 House Republican budget, entitled The Path to Prosperity. The budget has already cleared committee and will receive a vote on the House floor this week.
The budget proposal contains, or expands upon, many provisions included in past budget proposals by Rep. Ryan that trim federal employment and retirement benefits.
The Ryan budget plan proposes eliminating the FERS annuity supplement and eliminating the student loan repayment program.
The budget proposal would require employees to contribute to half of their FERS/CSRS and increases defined benefit contributions to 6.35% up from 0.8%. Congress recently increased contribution rates for new hires in 2013 to 3.1% and those hired in 2014 to 4.4%.
The budget also calls for a 10% reduction in the civilian and contract workforce, while exempting national security positions, and by allowing one employee to be hired for every three that retire.
The budget also claims to balance the federal balance sheet in ten years through significant cuts to social safety net programs, including Medicare, Medicaid, food stamps, and other programs.
Posted in General News