WH Deficit Plan Cuts Contractor Exec Pay, Increases Fed Worker Retirement Contributions

Photo: Sergej Khackimullin

The White House deficit reduction plan would cap reimbursements for federal contractor executives and also would have federal civilian employees pay more towards their retirement plans.

Currently, contractor executives are reimbursed for their private sector salaries.

The plan calls for capping highly-paid contractors to Executive Schedule Level 1 pay, or no more than $200,000.

The White House also recommended increasing federal workers’ contributions to their retirement plans. The deficit proposal calls for an annual 0.4 percent increase in contributions over the next three years, reaching two percent of annual pay by 2013.

Currently federal employees hired since the mid-1980’s are enrolled in the Federal Employees Retirement System and currently contribute 0.8 percent of their annual pay to their retirement plan.

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