Proposal Allow New Employees to Elect To Become at-will For Higher Pay

MAY 19 -- On the second try, the House Budget Committee advanced the proposed "one big, beautiful bill" that would make substantial changes to federal benefits through the reconciliation process.

In an unusual Sunday night markup, four Republicans voted present, so the bill passed 17-16 with all Democratic committee members voting no.

The four Republicans said they were promised changes that would be made in the future, but the details of those amendments weren't immediately clear.

"Tonight, after a great deal of work and engagement over the weekend, the Budget Committee advanced a reconciliation bill that lays the foundation for much needed tax relief, border security, and important spending reductions and reforms," Rep. Chip Roy, R-Texas, posted on X. "But the bill does not yet meet the moment. ... We can and must do better before we pass the final product."

When Ranking Member Rep. Brendan F. Boyle, D-Pa., asked about the changes, Committee Chair Jodey Arrington, R-Texas, said he was "not going to disclose deliberations" that would likely "continue until the time we put this one, big, beautiful bill on the House floor."

The bill includes proposals advanced by the House Oversight and Government Reform Committee that a Congressional Budget Office report said would decrease the deficit by $51 billion over the next decade.

The proposals would:

1. Give new federal employee hires the option to elect to serve "at will" in exchange for higher take-home pay. Those who decide to keep traditional civil service protections would have to pay an additional 5% toward their retirement.

2. Charge a filing fee for appeals to the Merit Systems Protection Board, which would be refunded to employees who win their appeals. During an Oversight committee hearing, lawmakers estimated that fee would be about $350.

3. Raise the Federal Employees Retirement System retirement contribution rate for many existing federal civilian employees and postal employees.

4. Eliminate, for new federal retirees, the additional retirement annuity payment that those eligible to retire before the age of 62 currently receive until they reach the age of Social Security retirement eligibility benefits. Those in federal occupations subject to mandatory early separation, such as retirement, would be exempt.

5. Reduce federal pension benefit spending by basing a retiree's annuity payment on their average highest five earning years, instead of the highest three for those who retire on or after Jan. 1, 20276. Take steps to verify family members added to the Federal Employees Health Benefit Program are eligible for coverage. There would also have to be a fraud risk assessment on the FEHB.

On May 16, the Budget Committee defeated the bill with a 16-21 vote, so the late-night Sunday meeting was scheduled. Members were not allowed to offer amendments under the rules, but the committee did consider a number of "motions to instruct" dealing the bill's proposed tax cuts, and impact on Medicaid and food assistance programs. Those non-binding motions were all defeated on party line votes.

The bill now heads to the Rules Committee, where it will be amended before it heads to the House floor for a full vote. House Republican leaders have said they hope to have a full vote on the bill before the Memorial Day recess.

Source: CyberFeds