From the NTEU 2-21-12 E-Bulletin

NTEU Criticizes Passage of Pension Cuts Legislation cutting federal pensions to offset the cost of extended unemployment compensation benefits was signed into law on Friday as part of the payroll tax extension legislation.

NTEU strongly opposed the bill, and in a letter sent to House members prior to the vote, said it is "unconscionable" to again ask middle-class federal employees to make a sacrifice without sharing the cost with other groups.


Under the permanent change, newly-hired employees will have to pay 2.3 percent more toward the defined benefit portion of their Federal Employees Retirement System annuity. Contributions for current employees will not be increased under the payroll tax extension.

“I am grateful to those members of Congress who stood in defense of federal employees on this issue,” said NTEU President Colleen M. Kelley. “While this negative action was approved, the impact on current employees could have been much worse without their support.”

This is not the only piece of legislation targeting federal employee pensions. NTEU is continuing its fight against provisions in the House version of the transportation bill, H.R. 7, that calls for significant additional increases to pension contributions and benefit cuts from current federal employees. More

Congress Targets Federal Workers for Savings
Associated Press, February 21, 2012
Federal workers were $15 billion losers as Congress looked for ways to pay for parts of the just-passed legislation to extend the payroll tax cut and federal unemployment benefits through the end of the year.

Their advocates are crying foul, saying two consecutive years of seeing their pay frozen means the nation's 2 million civil servants already have contributed more than $60 billion to reducing government costs.

"It is unreasonable to turn to this dedicated workforce yet again while shielding those who are not paying their share," said Colleen M. Kelley, president of the National Treasury Employees Union. More