If an alternative is found to sequestration, government employees may be required to contribute more to their retirement.With sequestration taking effect tonight, more than 1 million government employees could be hit with up to a 22 day furlough, according to the Washington Post.
If sequestration is not solved by the evening, the new budget deadline will be March 27, the date temporary funding for the federal government runs out.
If a new option is adopted in the meantime to avoid sequestration, it could hurt government employees in a number of different ways.
The Post says the administration has mentioned increasing “required employee contribution to retirement by 1.2 percentage points, phased in over three years.”
The administration has also has proposed ending a supplement paid to a number of employees who retire before age 62.
Proposals by Republicans include “increasing retirement contributions by 5 percentage points over five years, reducing the federal workforce by 10 percent through attrition, and continuing the freeze on federal salary rates through 2015.”
I’d rather cut the workforce by 15% but give a pay raise to those remaining.