(February 7, 2012) — The US government could be on the hook for higher contributions to its pension scheme under proposed legislation, with the House Oversight and Government Reform Committee weighing the possibility of a contribution hike for federal employees.
Under the bill being considered, introduced by Rep. Dennis Ross (R-Fla.), Federal employees would be required to contribute 1.5% more toward their pensions. The House Oversight and Government Reform Committee is scheduled to consider the legislation today.
Congressman Ross said in a statement: “Since I was elected in 2010, whenever asked by constituents what the greatest challenge facing this Congress is, I always answer ‘credibility.’ The American people rightfully demand in their elected Representatives a willingness to live under the laws they pass. They are tired of the perks and hypocrisy they witness in their Congress. As representatives of the people we serve, Congress should live under the same rules as everyone else.”
The legislation, which would apply to workers hired after this year and who do not have at least five years of previous federal service, would have federal retirement calculated on an employee’s highest five earning years as opposed to the highest three, as is currently done.
The hype for greater contributions for Federal employees comes after Congressman Tim Griffin (R-Ark.) introduced legislation calling for the end of pension funds for members of Congress.
While a majority of the private-sector workforce has seen their pensions slowly disappear, members of Congress receive both a pension and a quality employer-match plan.
“The rest of the country has been focused on state and local government pensions. So how has Washington been able to get away with pensions while the rest of the country loses theirs? Members of Congress pay far less into their pensions than other government workers while taxpayers kick in more,” Griffin told aiCIO in a telephone interview.
According to Griffin, the demise of congressional pensions would give federal lawmakers more credibility in addressing related financial issues.
“Ultimately, this is about the next step. When you talk about congressional pensions, you’re talking about millions of dollars. This bill only deals with members of Congress — the gateway with which we have to travel to get credibility and political momentum to deal with the broader issue of federal pensions,” Griffin said, adding that his legislation is not a question of morality, but a question of affordability.