House Oversight Committee Approves $50.9 Billion Cuts to Federal Retirement

The House Oversight and Accountability Committee narrowly approved a package of federal retirement cuts as part of the GOP’s broader budget reconciliation bill, aiming to reduce the federal deficit by over $50 billion in the next decade. The proposed reforms include raising the Federal Employees Retirement System (FERS) contribution rate to 4.4%, switching pension calculations from the highest three years of salary to the highest five, and eliminating the FERS annuity supplement for early retirees. These changes, set to take effect in 2027, would reduce take-home pay and future pension benefits for many federal and postal workers. The package passed the committee on a 22-21 vote, with all Democrats and one Republican, Rep. Michael Turner, opposing the measure; Turner argued that changing pension benefits mid-career is unfair. Proponents contend the reforms are necessary to rein in taxpayer costs and address government borrowing, while unions and some lawmakers warn the cuts could damage federal recruitment and retention. The legislation will be included in a larger reconciliation bill to be considered by the full House before the Memorial Day recess.