NPMHU Call to Action | FERS Retirement

  NPMHU Call to Action

Dear Sisters and Brothers,

The week after our productive legislative conference, the House of Representatives voted on its budget reconciliation bill, H.R. 1. As we discussed during the conference, there were several provisions in the bill that targeted FERS benefits. Because of collective lobbying and grassroots efforts, the language for across the board increases to employee contributions and moving from a high-3 to a high-5 were not included in the in final bill voted out of the House. However, calls to eliminate the FERS Supplement and tying union membership to FERS contribution rates remain.

The FERS Supplement provides a bridge for those who qualify for retirement before they reach Social Security age. The elimination of the supplement puts those approaching retirement in the next few years at a financial disadvantage.

Every employee within the Postal Service and the federal government has the right to choose whether or not to join a union. Besides the payment of dues, there is no other financial requirements. However, H.R. 1 calls for new employees who elect union representation to contribution an additional 5% to their FERS benefits – bringing the total to 9.4%. This would create a financial burden for those starting their postal careers, not to mention would put them at an extreme disadvantage when it comes to job protections.

The Senate will now review the language and we need to ensure Senators understand how detrimental these changes are.

Our call to action has been updated, and I ask you use the following link to contact your Senators and let them know how harmful these provisions are. Please share the link with your members and encourage them to do the same.

https://npmhu.quorum.us/campaign/121771/

Thank you for your time and attention.

In Solidarity,

Katie Maddocks Legislative & Political Director
National Postal Mail Handlers Union

Reference: NPMHU via NPMHU 317

More Reading: List of Alabama Senators

 

News From Other Unions | House Passes Bill to Eliminate the FERS Supplemental “Bridge” Payment

  House Passes Bill to Eliminate the FERS Supplemental “Bridge” Payment

"...H.R. 1 would eliminate the FERS annuity supplement for certain employees, which would begin to apply on January 1, 2028. The FERS annuity supplement is an earned benefit that makes it financially possible for postal workers to retire before age 62, which is when Social Security benefits begin. Essentially, this supplement is a monthly payment that helps bridge the gap between an employee’s retirement and Social Security eligibility.

For example, a postal employee age 57 who has met their years of service requirement and is eligible can retire knowing they will receive a monthly payment until their Social Security benefits begin at age 62. If the FERS annuity supplement is eliminated, many postal workers aged 57 to 62 who are eligible to retire will have a choice — take less in retirement without this supplement or continue working years longer until they can collect Social Security.

Thanks to the pressure that postal workers, labor unions, and other allies placed on members of Congress through phone calls, letters, and even trips to Washington, DC, we were able to remove two other harmful provisions in the original version of this tax-cut bill. One provision would’ve increased the FERS employee contribution rate to 4.4% for all active employees, and the other would’ve replaced the high-3 FERS annuity calculation with a high-5 calculation, which would result in a reduction in annuity payments.

The APWU stands firm against the elimination of the FERS annuity supplement..."

Reference: APWU