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Trump isn’t the only one targeting federal employees. House Republicans are pushing cuts to pension benefits

  • Last week, the House Oversight Committee approved a proposal aimed at reducing federal retirement spending by $50 billion within the next ten years.
  • The proposal will increase the percentage of salary that many current civilian and postal federal workers contribute toward their retirement funds to 4.4%, and it will discontinue an additional payment currently given to retired employees under age 62.
  • The proposal would also change pension calculations from averaging the highest three earning years to the highest five, potentially reducing benefits by thousands annually.
  • Union leaders report that these cuts have caused older federal workers to consider early retirement to secure current benefits, with one calling it "like a bait and switch."
  • The plan aims to save taxpayers money, but opponents warn it could lead to workforce losses, especially in prisons, and harm employees who retire early.
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American Postal Workers Union broke the news in on Friday, May 9, 2025.
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