Sens. Richard Burr (R-N.C.), Tom Coburn (R-Okla.) and Saxby Chambliss (R-Ga.) reintroduced the Public-Private Employee Retirement Parity Act on Tuesday in an effort to address future liabilities facing the federal government.
The bill would eliminate the defined benefit pension provision of the Federal Employee Retirement System for all federal employees who are hired six months after its passage.
The measure, which would also apply to members of Congress, would leave in place the Thrift Savings Plan that provides a 5-percent matching contribution for current and future employees.
“Generous pension plans for members of Congress have helped turn congressional service into a career rather than a calling,” Coburn said. “At the same time, federal workers enjoy a better benefits package and higher overall pay than most taxpayers – even at a time when many Americans are still simply looking for a job. This status quo is unsustainable and needs to be reformed.”
The bill would also require presidential administrations to release annual reports on the status of the federal retirement system.
“With America now $17 trillion in debt, we simply cannot continue to commit to future government spending,” Chambliss said. “Americans have demanded their leaders make the necessary changes to our fiscal policies to put our nation on a track to sustain economic growth and real job creation. The Public-Private Employee Retirement Parity Act is a small change that will have a big impact on our debt and deficit.”
The FERS system is underfunded by approximately $21.1 billion for fiscal year 2012, according to a Office of Personnel Management report.