Another Proposal To Cut Federal Retirement Benefits

There's yet another proposal on Capitol Hill to cut federal retirement benefits. This one would use the money the government saves to fund highway programs. The House Republican plan was posted online yesterday. It's designed to bridge the gap between federal gas tax revenues and the $260 billion the GOP wants to spend on highway construction programs over the next five years. Federal employees retirement contributions to their pensions would increase by 1.5 percent over three years. And new federal employees would have their retirements calculated based on their highest five years of earnings instead of the highest three. Revenue from the 18.4-cent-a-gallon federal gas tax is declining, and it no longer provides enough money to cover federal highway spending