April 30, 2025

House oversight committee advances attacks on federal retirement benefits

Today, in a 22-21 vote, the House Committee on Oversight and Accountability (COR) advanced its budget reconciliation measure that would slash benefits for federal workers, including letter carriers.

The Republican-supported House budget resolution passed earlier this year tasked the COR committee with cutting $50 billion. This measure aims to meet this threshold by cutting federal employee benefits at a cost to the employees.

Many parts of the measure would affect letter carriers, including:

• Increasing the Federal Employees Retirement System (FERS) contribution rate for existing employees to 4.4 percent
• Cutting FERS retirement benefits by eliminating the FERS special annuity supplement
• Reducing FERS annuity payments by calculating a retiree's annuity based on their high-five salary average (instead of three)

Chairman James Comer (R-KY) said these cuts would save federal funds while Acting Ranking Member Stephen Lynch (D-MA) referred to it as an attack on the federal government and its workers.

Many Democratic members praised federal employees for their dedicated service and spoke against benefit cuts.

One Republican, Mike Turner (R-OH), opposed the measure. "I believe that making changes to pension retirement benefits in the middle of someone's employment is wrong. Employee benefits are not a gift. They are earned," he said.

Several amendments were introduced at the markup, but all were rejected. Notably, Rep. Emily Randall (D-WA) introduced an amendment to add the text of the Federal Retirement Fairness Act (H.R. 1522). H.R. 1522 would allow federal employees, including letter carriers, to make catch-up retirement contributions for time served as non-career employees, making it credible under FERS. Although the amendment failed, H.R. 1522 remains a top priority for NALC.

"NALC completely opposes this measure," NALC President Brian L. Renfroe said. "We see this for what it is – a pay cut for letter carriers and all federal employees.

“Our retirement benefits aren't free handouts. We earn them through our years of service and contributions.

“Taxpayers don't fund the Postal Service or letter carriers' retirement benefits. Cutting our benefits will do nothing to improve the federal deficit. If Congress wants to balance the budget, changes to our independently funded retirement benefits will not do it and should be off limits.

“This is a disgusting attack on every letter carrier, postal employee, and federal employee. We will continue fighting like hell against these attacks to preserve the retirement benefits that we've earned, and that we already pay our fair share for every pay period.”

The next step is for the measure to be considered by the full House. Republican House leadership has indicated it plans to vote on all reconciliation measures before the end of May.

Given the controversial and harmful elements of this package, it is unclear whether it will pass in the House. While advancing the committee was almost certain, with extremely tight margins in the House, passing in the full chamber will be more difficult.

NALC encourages all letter carriers to contact their representatives and ask them to oppose these changes to our benefits and what we pay for them.

Click here to take action.