House GOP Retreats On Retirement Cuts After Backlash: Protections Restored, FERS Changes Pushed To 2028 In Latest Version Of Reconciliation Bill

House Republicans have revised key parts of their proposed spending cuts targeting federal employee retirement benefits, softening some of the most controversial measures in response to internal opposition and growing criticism from federal workers and advocacy groups.

What Happened: Originally, the House GOP's reconciliation bill sought to force pre-2014 federal hires to pay significantly more toward their pensions, eliminate the FERS supplement before age 62, switch annuity calculations to a less favorable model, and present new hires with an ultimatum: give up civil service protections or forfeit a portion of their salary.

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But, according to Government Executive, after pushback from lawmakers like Rep. Mike Turner (R-Ohio) and outcry from federal employee organizations, the latest draft backs off on several fronts.

Pre-2014 hires will no longer lose their grandfathered status. Changes to the FERS supplement now include broader exemptions for early retirees and delay implementation until 2028. The shift from a high-3 to high-5 annuity calculation has also been pushed back by a year.

Why It Matters: The proposed changes were met with alarm from federal employees and law enforcement officers, especially those enrolled in early retirement or deferred resignation programs.

Critics argued that the bill retroactively stripped workers of benefits they had already earned and paid into for years. According to John Hatton of the National Active and Retired Federal Employees Association, the amendments are a step in the right direction, but still fall short.

"From our view it's definitely an improvement, and a significant improvement," Hatton said. "But the FERS supplement elimination and the High-5 proposal still breaks promises that were made to federal retirees."

While the latest revisions reduce the immediate impact on federal workers, unresolved concerns remain about fairness and the precedent of altering earned benefits.

As the bill, which Sen. Bernie Sanders (I-Vt) labelled as a "death sentence" for millions of Americans, heads toward a floor vote, Republican leaders may still face resistance unless further adjustments are made.

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