6/22/09: On June 4, 2009, Republican Leader John Boehner and Republican Whip Eric Cantor submitted a proposal to the President to change the calculation of federal annuities and to eliminate official time for full-time union representation. The overall package proposes sweeping cuts to many federal agencies and worthwhile programs, that are unlikely to be seriously advanced by the majority party in Congress, but the section on federal personnel changes and union activity are particularly egregious. NTEU will vehemently oppose these.

The federal employee proposals fall under a section entitled “Reform Federal Personnel Policies to Reflect Private Sector Practices.” That heading alone shows a lack of commitment to the public sector. The proposals would do the following: First, they would change employees’ annuities to a calculation based on a “high-five” average salary, instead of the current “high three.” According to the nonpartisan Congressional Budget Office (CBO), this would reduce a CSRS-covered retiree’s pension by approximately $1,250 a year and over $6,500 over five years. Second, for FERS retirees who are under age 62, it would eliminate the payment that is available up until the recipient becomes eligible for social security at age 62. Not only does this change the retirement rules in midstream, but it is unfair to those federal employees like public safety officers who must retire prior to age 62. Third, these Republican leaders have proposed to eliminate the 100 percent official time category for the performance of union duties. This is a slam against the very good work performed by our union representatives who work diligently on behalf of our members every day.

While we have seen proposals like this in previous administrations, we can never be caught off guard. These proposals garner NTEU’s full opposition, and we will incorporate that in our ongoing dialogues with Congress on a number of issues. The White Paper can be viewed by going to http://republicanleader.house.gov/ and searching under “News” for June 4, 2009.