Today, President Donald Trump submitted his $4.4 trillion fiscal year 2019 budget to Congress. While the budget projects a 2027 budget deficit of $450 billion, it still slashes over $155 billion from benefits upon which active and retired postal and federal employee rely. In part, the budget proposes to:
More than triple the retirement contributions of most postal and federal employees
Change the FEHBP employer contribution rate to encourage beneficiaries to enroll in health plans deemed to be “high-performing” and “high-value”
Eliminate the FERS COLA
Reduce CSRS COLA by 0.5 percent
Abolish the FERS retirement supplement for federal and postal employees who retiree prior to Social Security eligibility
Replace the current annuity calculation of the highest 3 salary-earning years with the highest 5; and
Dramatically reduce the yield on the Thrift Savings Plan’s G-Fund investments.
The budget also proposes unspecified reforms to the Postal Service that includes changing postal rate-setting, modifying the mail delivery schedule and using more efficient delivery methods. In addition, the budget assumes that postal employees and retirees will suffer the same benefit cuts as all active and retired federal employees.
The upcoming UPMA Legislative Summit will provide a crucial opportunity for UPMA members to voice opposition to these proposals that adversely impact UPMA members.