Federal Pensions: Third Way Was Able to Increase FERS Contributions; Congress Directed Extra Monies to Unemploment Extension

Because of the way that the Civil Service Retirement and Disability Fund (CSRDF) is set up, when federal employees contribute more (without an increase of the pension benefit), they actually are paying that money to the Treasury. In the case of the recent new law (P. L. 112-96, title V), this money is going to pay for an extension of unemployment benefits (and not an increase in pension benefits). So, basically, federal employee pay was effectively cut back.

The group, Third Way,  still has influence. It asked for a 5.2% increase of employee’s contributions; the Congress delivered 3.1% not only for the civil service but all participants of the Federal Employees’ Retirement System.

[The crocodile tears of Minority Whip Steny Hoyer and Representative Chris Van Hollen (member of the so -called supercommittee) did not affect me at all, except to make me marvel at their skills of “gaslighting.”]

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