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House Passes Budget Targeting Federal Retirement and Health Benefit Programs for $32 billion in Cuts

FOR IMMEDIATE RELEASE Contact: Jessica Klement
October 5, 2017 jklement@narfe.org
  703-838-7760

Alexandria, VA – The House of Representatives passed a fiscal year 2018 budget resolution today that targets the retirement and health benefits of our nation’s federal employees and retirees for substantial cuts in an effort to offset the cost of expected tax policy changes. The National Active and Retired Federal Employees Association (NARFE) President Richard G. Thissen issued the following statement in response:

“This budget resolution was touted as setting the stage for tax changes that will provide a break to hard-working, middle class Americans. In reality, it sets the stage for broken promises, lower paychecks, and less retirement and health security for hard-working, middle class public servants.

“The House passed a budget resolution that targets the hard-earned retirement and health benefits of federal and postal workers and retirees for at least $32 billion in cuts. The policies required to meet that target range from bad to worse – from imposing a ‘retirement tax’ on these workers by raising payroll contributions toward retirement without any benefit increase, to dramatically reducing the value of federal pensions for those nearing, or even in, retirement.

“These cuts would break promises to employees and retirees who have based career and retirement planning on long-standing, promised benefit calculations. Federal retirement benefits were earned through years of hard work – they are not gifts to rescind.”

The House of Representatives passed H.Con.Res. 71 by a vote of 219 to 206. The resolution contains reconciliation instructions requiring at least $32 billion in cuts over 10 years to mandatory spending under the jurisdiction of the House Committee on Oversight and Government Reform (OGR). Such instructions directly target the hard-earned retirement and health benefits of federal and postal workers and retirees, as these benefits constitute the only substantial mandatory spending under OGR’s jurisdiction.

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The National Active and Retired Federal Employees Association (NARFE), one of America’s oldest and largest associations, was founded in 1921 with the mission of protecting the earned rights and benefits of America’s active and retired federal workers. The largest federal employee/retiree organization, NARFE represents the interests of 5 million current and future federal annuitants, spouses and survivors.