Federal Employees Will Pay Out 1.5% More Into Pensions And More

Changes to the federal retirement system advanced on Capitol Hill. The House Oversight and Government Reform Committee approved legislation that would make employees contribute 1.5 percent more of their salaries to their pensions. New federal hires would have to pay 4 percent of their salaries into the pension system. The bill would also end the Federal Employees Retirement System annuity supplement for people who retire before age 62. Before yesterday's vote, committee member debated sharply along party lines. Republicans favor the changes, Democrats oppose them.