(updated with correction)
Federal employees, including members of Congress, would contribute 1.5% more toward their pensions under legislation to be considered Tuesday by the House Oversight and Government Reform Committee.
The bill, introduced by Rep. Dennis Ross, R-Fla., would change the formula for calculating pension benefits to the average of the highest five years of salary from three years and require new hires to contribute 4% of their pay into the Federal Employees Retirement System.
The bill is aimed at bringing federal pensions more in line with the private sector, and making members of Congress “live under the same rules as everyone else,” Mr. Ross said in a statement, which also characterized the current system for federal pensions as “unsustainable promises.”
Colleen M. Kelley, president of the National Treasury Employees Union, which represents 150,000 federal workers in 31 agencies, said that with federal workers into their second year of pay freezes worth an estimated $60 billion to help reduce the federal deficit, “we think it's time for them to look elsewhere (for federal spending cuts). It's pretty hard to imagine that this Congress would just blatantly break those promises,” Ms. Kelley said in a conference call with reporters Monday.