Press Release: Ross Hails Passage of Congressional Pension Bill
Chairman Ross’ Bill to Reduce Congressional Pensions to Parity With the Rest of the Federal Workforce & Other Reforms, Moves Closer to Passage
Washington,
Feb 7, 2012 -
Washington, DC – Oversight Subcommittee on Federal Workforce, Postal Service & Labor Policy Chairman, Congressman Dennis A. Ross (R-FL), today hailed the committee passage of his bill, HR 3813, the Securing Annuities for Federal Employees Act. The SAFE Act would:
- Applies all pension reforms affecting federal employees, to Members of Congress as well.
- Places Members of Congress on par with federal employees for pension contributions, annuity multiplier and benefits
- Ensures law enforcement and other federal employees in dangerous occupations receive a better pension formula than Members of Congress and other federal employees.
- Establishes new pension formula for federal employees and Members of Congress hired after December 31, 2012 who have less than 5 years prior civilian service.
- Calculates retirement payment for all federal employees and Members of Congress based on their highest five years of salary, not the current high three years.
- Saves taxpayers billions and generates over $32 billion in new revenues
Upon passage, Chairman Ross said, “I thank Chairman Issa for bringing this bill before the full committee and thank my colleagues for their support. Ensuring that Members of Congress enjoy no better benefits than the rest of the federal workforce is a step in the right direction toward regaining our credibility with the American people. In addition, with payroll costs to the taxpayer approaching $450 billion per year, and pension costs exploding, asking federal workers and Members of Congress to contribute more to their retirement is not a burden too heavy. State governments, local governments and most certainly, the private sector, are all recognizing the reality that the burden of retirement costs must be shared. The federal workforce enjoys unparalleled job security, benefits, and according to CBO, vastly better incomes than their private sector counterparts. Requiring federal employees to catch up to the rest of the nation protects the taxpayer, protects the retirement future of federal workers, and brings the federal government closer to economic reality.”
Dennis Ross, son of Bill and Loyola Ross, was born in 1959 and raised in Lakeland, Florida. He graduated from Auburn University and the Cumberland School of Law at Sanford University. He has served as in-house counsel to the Walt Disney Company and as an associate of the law firm of Holland & Knight. He previously served in the Florida Legislature from 2000 until being term limited in 2008. Dennis and his wife, Cindy Hartley, were married in 1983 and have two sons, Shane and Travis.
In the 112th Congress, Dennis will serve on the Committee on Oversight & Government Reform (Chairman of the Federal Workforce, Postal Service & Labor Policy Subcommittee) as well as the Education & the Workforce and Judiciary Committees.
http://dennisross.house.gov/News/DocumentSingle.aspx?DocumentID=278047
“Securing Annuities for Federal Employees Act of 2012”
Section 1. Short Title.
Establishes the short title of the bill as the “Securing Annuities for Federal Employees Act of 2012.”
Section 2. Retirement Contributions.
Section (2)(a) increases the employee contribution to the Civil Service Retirement System (CSRS) from 7 percent to 8.5 percent of salary over three years, beginning in calendar year 2013. The employee contribution for special occupational groups, congressional employees, and Members of Congress is also increased by a total of 1.5 percent of salary over three years, beginning in calendar year 2013.
The employer contribution is reduced by the increased employee contribution.
The increased employee contribution and corresponding reduction in the employer contribution applies to CSRS Offset employees.
Section (2)(b) increases the employee contribution to the Federal Employee Retirement System (FERS) from 0.8 percent to 2.3 percent of salary over three years, beginning in calendar 2013. The employee contribution for special occupational groups, congressional employees, and Members of Congress is also increased by a total of 1.5 percent of salary over three years beginning in calendar year 2013, from 1.3 percent to 2.8 percent of salary.
Under existing law, the employer contribution equals the normal retirement cost reduced by the employee contribution.
Sections (c) – (e) reference the conforming changes required for Foreign Service, CIA, and TVA employees.
Section 3. Amendments Relating to Secure Annuity Employees.
Section 3(a) establishes new retirement rules for federal employees hired after December 31, 2012, with less than 5 years of credible service for retirement purposes.
Section 3(b) sets the employee, congressional employee, and Member of Congress contribution to FERS at 4 percent of salary. The employee contribution for special occupational groups set at 4.5 percent of basic pay.
Under existing law, the employer contribution equals the normal retirement cost reduced by the employee contribution.
Section 3(c) changes the FERS pension formula salary base for all retirees to highest-five years’ average salary. Existing CSRS and FERS employees remain subject to a highest-three years’ average salary base.
Section 3(d) changes the FERS pension formula multiplier for employees, congressional employees, and Members of Congress at 0.7 percentage points, instead of 1 percent or 1.7 percent. Employees in special occupational groups are subject to a proportional adjustment to the multiplier (0.3 percentage points lower than current law).
Section 4. Annuity Supplement
Section 4 eliminates the FERS minimum supplement for individuals not subject to mandatory retirement, beginning January 1, 2013. Individuals subject to mandatory retirement include certain categories of employees such as law enforcement, fire fighters, air traffic controllers, and nuclear materials couriers. Under current law, the FERS minimum supplement is paid to these employees and to federal employees who retire before the age of 62. The FERS minimum supplement represents the amount the employee would have received from Social Security if he were 62 years old on the day he retired, and is paid until the retiree reaches age 62 and begins receiving his actual Social Security payments.
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