Government affairs

Legislative Updates

Federal Employee Pension Fairness Act reintroduced in House

Earlier this month, Rep. Donna Edwards (D-MD) reintroduced The Federal Employee Pension Fairness Act (H.R. 785), designed to eliminate increased pension contributions of federal and postal employees. The legislation was cosponsored by Reps. Gerry Connolly (D-VA), Elijah Cummings (D-MD), Matt Cartwright (D-PA), Keith Ellison (D-MN), Marcy Kaptur (D-OH), Stephen Lynch (D-MA), Betty McCollum (D-MN), Grace Napolitano (D-CA) and Charles Rangel (D-NY), and Del. Eleanor Holmes-Norton (D-DC).

Prior to 2012, federal and postal employees contributed 0.8 percent of their pay toward pensions. As a result of the Middle Class Tax Relief and Job Creation Act of 2012, federal employees hired after 2012 were required to pay 3.1 percent. And following the Bipartisan Budget Act of 2013, federal employees hired after 2013 are now required to pay 4.4 percent of their salaries. H.R. 785 seeks repeal the annuity pension calculation and restore it to the original 0.8 percent level.

“Federal employees are the backbone of our federal government and agencies,” Edwards said. “Whether protecting our borders, conducting life-saving medical research, or ensuring our food and medicine is safe to consume, public servants perform duties vital to the health, safety, and economic well-being of the American people.

“Enough is enough,” she said. “It is our duty to ensure the fair treatment of the federal employees who have served our nation so well, especially during times of economic strain. We must stop saddling our federal workers with such disproportionate burden, and start asking wealthy corporations to pay their fair share.

“I look forward to the opportunity to work with my colleagues in Congress to pass this bill that would bring needed relief to those who work tirelessly to keep us safe and our government running,” Edwards said.

The legislation also seeks to close corporate tax loopholes for companies that are incorporated overseas but are managed and controlled in the United States.

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