HR 3630, the bill to extend the payroll tax holiday, provide for an extention of unemployment insurance and fix doctor reimbursement rates in the Medicare program, passed the House of Representatives by a vote of 293-132 and the Senate by a vote of 60-36.  The President has said he will sign the legislation.  HR 3630 paiid for the unemployment insurance provisions, in part, by increasing contributions to the federal retirement program by 2.3% for new employees hired after December 31, 2012, who have less than five years creditable service.  NTEU opposed the legislation.  As we told Congress, federal employees are in the second year of a two-year pay freeze that is contributing to $60 billion to deficit reduction.  It is unconscionable to come back to them for a second $15 billion hit, while no other group has been asked to sacrifice.  While the payroll tax holiday extention and the unemployment insurance extention only last for the next ten months, the loss to a new federal employee making $50,000 a year is $1,000 per year, every year for the rest of their career.

While we strongly opposed the legislation, we were pleased that key members of Congress including Minority Whip Steny Hoyer (D-MD), and members of Conference Committee, Representatives Chris Van Hollen (D-MD) and Senator Ben Caradin (D-MD), worked with NTEU to assure that no increase would affect current employees.

More fights remain.  When the House returns, it will again consider HR 3813, which makes significant other changes to the retirement system, including increasing pension contributions for current federal employees by 0.5% for 2013, 2014, and 2015, then continue to increase of 1.5% permanently and, most egregiously, ending the FERS supplement effective December 31, 2012, for those not subject to mandatory retirement.  We expect that HR 3813 will be attached to HR 7, the transportation and infrastructure bill to pay for bridges and highways.  To find out more, visit www.nteu.org