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The proposal, which announced on Friday night by James Comer, Chairman of the House Oversite Committee and Government Reform Committee, will force several federal citizen employees to reduce their final benefits by changing the formula to pay high premiums for retirement benefits and calculate payments.
The oversite committee is expected to vote next week on that plan and other working changes. If approved, they will be added to the law incorporating the legislative agenda of President Donald Trump, which the Republican has targeted to implement by August without the help of Democrats.
Cummer said in a statement that the committee’s proposal would get “a federal deficit decrease of more than $ 50 billion”.
The biggest change will be that the federal employee retirement system will have to pay for many prolonged federal and postal staff for their salary. Under the current system, the contribution rates are arranged by the year initiated by an employee: 0.8 percent in 2012 and before; 3.1 percent if hired in 2013, and 4.4 percent if employed in 2014 and later. According to the statement, this change will allow employees to pay 4.4% to raise $ 30.7 billion in a decade.
Earlier: Trump says he will cut the Medicade, social security
This proposal will also try to save $ 4.75 billion on the basis of retiring pension benefits at the highest five years salary instead of the current three highest years. Those benefits are calculated based on top pay and number of years in the US workforce.
Other changes being proposed include abolishing the complementary retirement benefits for those who have retired before the age of 62 and so far unable to audit the family members of social security and federal employees whether they are eligible for health benefits.
Republican is planning a house floor vote on a large law next month. The bill will then be sent to the Senate, where it can pass without the help of Democrats until the target is already adopted in the budget resolution.
House GOP has a target of saving at least $ 2 trillion in savings to increase 2017’s trump tax cuts, overtime, new deductions on taxes and to provide new breaks to older people and car buyers. The Senate has taken itself to its part of the budget plan to reduce the deduction as $ 4 billion.
Such more stories are available on bloomberg.com
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