House Republicans Propose Retirement Benefit Cuts to Offset Tax Cut Costs

Source: Imagn

House Oversight Chair James Comer Attends Hearing on Capitol Hill

A major proposal by House Republicans to reduce federal retirement benefits as part of a broader tax and spending package is currently moving through Congress. This proposal, announced by House Oversight Committee Chairman James Comer, is intended to help reduce the federal deficit and offset the costs of extending the 2017 Trump tax cuts

Source: Imagn

Protesters Rally Against Healthcare Cuts

These cuts are primarily driven by Republican efforts to achieve at least $2 trillion in federal savings, offset the cost of extending the 2017 Trump tax cuts, and address the federal deficit, with strong opposition from federal employee unions. Elon Musk, serving as an adviser in the Department of Government Efficiency (DOGE), has played a prominent role by targeting entitlement programs like Social Security and Medicare for steep reductions, citing alleged widespread fraud to justify cuts.

Source: Imagn

Protestors Rally Outside the Ohio State House

The proposal would require all federal civilian employees to pay a higher percentage of their salary toward retirement benefits. Currently, contribution rates vary based on hire date (0.8% for those hired before 2013, 3.1% for those hired in 2013, and 4.4% for those hired in 2014 or later). The new plan would standardize this at 4.4% for all employees, effectively reducing take-home pay for many, especially those hired before 2013

Source: Imagn

Alan Conroy, Director PERS Kansas, Listens to Testimony Before Senate Federal Affairs Committee

The proposal would eliminate the Federal Employees Retirement System (FERS) Special Retirement Supplement, which currently provides a bridge for employees who retire before age 62 until they qualify for Social Security. This change would hit early retirees-such as law enforcement officers and air traffic controllers-particularly hard

Source: Imagn

Elon Musk Arrives with President Donald Trump Aboard Air Force One at Palm Beach International Airport

Proposals may eliminate federal health benefits for new retirees, which is rare in the private sector and would reduce the overall attractiveness of federal employment. The scale of cuts could lead to workforce reductions, either through layoffs or voluntary buyouts, as agencies seek to manage reduced budgets.

Source: Imagn

National Treasury Employee Union Members Gather Outside the IRS building to Protest

Organizations like the National Active and Retired Federal Employees Association (NARFE) and unions such as the National Treasury Employees Union (NTEU) and the National Association of Government Employees (NAGE) have condemned the proposals as punitive and unfair. They argue that raising employee contributions and reducing benefits breaks promises made to workers and undermines the attractiveness of federal service.

Source: Imagn

James Comer, Jamie Raskin Clash During Hunter Biden Contempt Hearing

The budget resolution also targets federal unions by proposing to charge unions for using agency property and official time, and by ending the federal government’s collection of union dues. These measures aim to reduce union influence within federal agencies by cutting off a key revenue stream, which could weaken collective bargaining power and further impact federal employee rights and benefits indirectly.

Source: Imagn

Nancy Pelosi Attends A Memorial Ceremony for President Carter

Democrats reject the Republican plan to cut $50 billion from federal retirement and health benefits, arguing that it breaks promises made to federal employees and retirees who have earned these benefits through their service. They accuse Republicans of pushing these cuts to fund tax breaks for the wealthy at the expense of federal workers and retirees, emphasizing the unfairness of targeting public servants to solve budget issues

Source: Imagn

Sen. Bernie Sanders Speaks to the Crowd

Some lawmakers are proposing changes to Social Security taxes by raising the cap on earnings that are taxed. One idea would apply payroll taxes again to incomes over $250,000, creating a "donut hole" where income between the current cap of $176,100 and $250,000 would not be taxed. Another proposal suggests raising the taxable wage base to around $300,000 to cover 90% of all national earnings. These changes would mainly impact high earners, aiming to strengthen Social Security without affecting most workers.