NTEU Chapter 46
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NTEU Leader Warns of Significant Loss of Trained, Experienced Employees
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September 20, 2011
Washington, D.C. –The leader of the National Treasury Employees Union (NTEU) has cautioned that increasing federal employee pension contributions by 1.2 percent in stages beginning in 2013 runs a serious risk of leading to “an exodus of our most highly-trained and experienced workers.”
In a letter to the 12 members of the congressional super committee, NTEU President Colleen M. Kelley called changes to the federal retirement program contained in President Obama’s deficit reduction plan “ill-advised and inequitable.”
In this follow-up letter to committee members, the NTEU leader repeated her assertion that “my members understand the deficit crisis we face, but they are already under a two-year pay freeze,” which is estimated to be a $60 billion contribution to deficit reduction over the next decade.
“We cannot understand why federal employees should be subject to further cuts at a time when we are being asked to do more with less on a daily basis,” she wrote, again urging the committee to oppose proposals that would negatively impact federal employee pensions or health programs.
President Kelley noted that under the president’s plan, a proposal to cut Social Security payroll taxes “would provide some temporary relief” to those covered under the Federal Employees Retirement System (FERS). At the same time, she added, those older workers covered under the Civil Service Retirement System (CSRS), and who do not pay into Social Security, would see no relief.
“We urge the committee to find a remedy for this inequity,” Kelley wrote, noting that in previous years, CSRS employees have received a tax credit equal to the rebate received by FERS and other Social Security-covered employees.
The union leader also used her letter to express her concern about a proposal to eliminate for new hires a FERS supplemental payment for those who retire before age 62. “Without the supplemental, federal workers eligible to retire under FERS will not be able to afford to retire, despite often giving 30 years of service to the government.”
NTEU is the nation’s largest independent federal union, representing more than 150,000 employees in 31 agencies and departments.