House Democrats look to boost federal worker retirement plans
by Pete Kasperowicz
| November 22, 2018 09:06 AM
House Democrats introduced legislation this week to increase annual cost-of-living adjustments for most federal employees, a possible sign they'll push for this kind of change once they control the House next year.
Rep. Gerry Connolly, D-Va., introduced the Equal COLA act along with three other Democrats.
The bill would equalize cost-of-living adjustments for two retirement systems. The first is the Civil Service Retirement System, or CSRS, which was created in 1920 and has been referred to as "golden handcuffs" because of the sizable benefits it offers to federal workers who stay on the job for decades.
Staring in 1987, federal workers were required to sign up to a replacement plan, the Federal Employees Retirement System, or FERS. That plan is stingier in several respects, including when it comes to cost-of-living adjustments.
Connolly's bill would make COLA adjustments under FERS just as big as they are under CSRS, a change he says it needed to protect the later generations of federal employees.
"Over time, we now realize that this two-tiered system fails to protect FERS retirees who are living on a fixed income," Connolly said this week. "This legislation will rectify this unfair system and ensure these dedicated public servants are protected throughout their retirement."
Connolly used COLA adjustments planned for next year as an example. He said starting in January, CSRS legacy workers will get a 2.8 percent COLA, but FERS employees will only get a 2.0 percent hike.
more
https://www.washingtonexaminer.com/news/house-democrats-look-to-boost-federal-worker-retirement-plans
