UPDATE 5/19/25:
On Sunday night, May 18, the House Budget Committee passed a revised version of the budget reconciliation bill out of Committee. Changes made to the original language proposed by the House Oversight and Government Reform Committee included: The increase in FERS contributions for employees hired before 2014 to 4.4% of salary was removed. The shift in the retirement calculation formula from high-3 to high-5, as well as the elimination of the FERS annuity supplement remain, although both have been postponed until January 2028. The full House of Representatives is scheduled to vote by the end of the week.
Continue to call the Capitol Switchboard at 202-224-3121 and let your House Representative know you OPPOSE ANY cuts to postal employee retirement benefits!
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On April 30, 2025, the House Committee on Oversight and Accountability approved significant cuts to federal employee retirement benefits by a vote of 22-21. These extremely harmful cuts will severely impact current and future rural letter carriers and their livelihoods. They include basing a retiree’s annuity on their average highest five years of earnings (high-5) instead of the highest three years (high-3), significantly lowering an employee’s anticipated annuity. The cuts also increase FERS employees’ contribution rate to 4.4% for USPS personnel hired prior to 2014 (employees hired in 2014 and thereafter already contribute 4.4%) and also eliminates the FERS retirement supplement, which serves as a bridge for postal employees who retire before Social Security begins at age 62.
The NRLCA stands firmly against this damaging legislation. Postal and federal employees cannot continue to be the low-hanging fruit Congress consistently picks when it is looking for budget savings.
These changes are currently slated to be incorporated into a reconciliation bill for consideration by the House before the Memorial Day recess. The NRLCA will continue to strongly oppose any cuts to federal and postal employee benefits and will keep you informed of further developments as it moves forward in the legislative process.
Please call the Capitol Switchboard at 202-224-3121 TODAY and and let your House Representative know you OPPOSE any cuts to federal and postal employee retirement benefits!
