The following statement by Richard Fiesta, Executive Director of the Alliance for Retired Americans, is in response to media reports about the impact of President Trump’s fiscal 2018 budget proposal on current and future federal workers. The budget will be formally released on May 23, 2017.
“Federal workers earned their pension benefits. Cutting pensions to fund tax breaks for the wealthiest Americans and corporations is just plain wrong.
“According to a report in The Washington Post , under Trump’s spending plan the government would base the value of employees’ retirement benefits on the average of their highest five years of earnings, instead of the highest three years – reducing what retirees have earned while serving the public.
“The plan will also require federal workers to contribute an additional percentage point to the Federal Employee Retirement System (FERS) each year until they match the federal contribution, while eliminating COLAs for current and future FERS employees.
“The 4.4 million members of the Alliance will fight to stop this proposal in Congress.”
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