Provisions affecting federal employees in a House-passed bill under consideration in a House-Senate conference on extending the reduction in the Social Security payroll tax.
| Provisions affecting |
current and future
| Provisions affecting only |
employees hired in 2013 or
later and who have fewer than five years of prior federal service on hiring)
|Extends freeze on federal salary rates for a third year, through 2013.||Bases annuities on highest five consecutive salary years rather than three.|
|For those retiring in 2013 and after, eliminates a retirement supplement for most Federal Employees Retirement System employees who retire before age 62; retains the benefit for those subject to mandatory retirement before 62.||Reduces the multiplier used in the retirement-benefit calculation, resulting in benefits for most that would be 30 percent lower than under the current FERS formula.|
|Requires an increase in the employee contribution to retirement of 1.5 percentage points, phased in equally over three years starting in 2013.|| |
Requires an immediate 3.2 percentage- point increase in employee retirement contributions.
Note: The House last week passed a separate bill to extend the salary rate freeze. The other provisions are in a separate bill that passed the House Oversight and Government Reform Committee on Tuesday.
— Compiled by Eric Yoder