House Republicans Propose Budget Resolution That Could Slash Federal Benefits: What You Need to Know

Recently, House Republicans approved a contentious budget framework, and while details are still hazy, significant changes to federal benefits, especially in retirement and health care, are on the table. This budget aims to cut mandatory spending by at least $50 billion, a move that could directly impact federal employees’ benefits, according to the National Active and Retired Federal Employees Association (NARFE).

NARFE warns that with such deep cuts, the primary focus will inevitably shift to federal retirement and health care benefits. The recent budget resolution passed with a narrow 216-214 vote, which means that once finalized, it could quickly be pushed through with only a simple majority in Congress.

A spokesperson from the Oversight Committee has not shared specifics about where the cuts will be made, but several proposals have already surfaced that could change how federal employees receive their retirement benefits and health insurance.

One of the more notable proposals involves a shift in the Federal Employees Health Benefits (FEHB) program. Currently, the government shares in premium costs, but there’s discussion about moving to a flat-rate “voucher” model. Under this new model, federal contributions would potentially be tied to consumer price increases instead of the weighted average of premiums, which might lead to federal employees paying significantly more over time. John Hatton, NARFE’s vice president of policy, emphasizes that while initial costs may seem manageable, they could spiral much higher after several years.

This isn’t just about potential cost increases; it’s also about historical context. Over the last few years, health insurance premiums for federal employees have surged. This year’s average increase was 13.5%, marking the highest jump in over a decade.

Another proposal seeks to minimize improper payments within the FEHB by removing ineligible enrollees. The Government Accountability Office revealed that these improper payments cost nearly $1 billion yearly. While the audit approach aims to fix this, NARFE cautions that it could inadvertently harm eligible family members by imposing excessive proof requirements.

Further, changes to the Federal Employees Retirement System (FERS) could raise employee contribution rates to a flat 4.4%. Currently, rates vary depending on hire dates. This proposed change would mean federal employees take home less pay, effectively becoming an across-the-board pay cut. Lawmakers estimate this could save $44 billion over a decade, though exact implementation details remain unclear.

Another facet of the proposal transforms some new federal positions to at-will employment unless employees accept the higher contribution rates. This proposal echoes past initiatives to streamline federal employment practices but raises concerns about the loss of job security and potentially qualifying protections for civil servants.

As these changes unfold, social media platforms are buzzing with reactions. Many federal workers express anxiety about their financial futures, sharing personal stories about the possible impacts of these proposals. The discussions reflect a growing unease among employees about maintaining their benefits and job security, emphasizing the real-life stakes involved in the budget discussions.

In addition to these proposals, there are also discussions on shifting retirement calculations from a “high-3” to a “high-5” formula, potentially reducing the value of retirement benefits for many. Lawmakers predict this could save the government $4 billion over ten years, but NARFE contends it breaks promises to employees close to retirement, undermining the integrity of their earned benefits.

In summary, proposed changes to federal benefits are raising alarms among employees and retirees. They could reshape the landscape of federal employment and benefits significantly. The ongoing discussions highlight the need for transparency and careful consideration of how these policies will affect those who serve the public.

For more information on these issues, you can visit the NARFE advocacy page [here](https://www.narfe.org).

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