Benefit Issues Remain on the Table Congressional budget negotiations continue with a goal of producing an agreement for the remainder of the current fiscal year by December 13. Even if an agreement is reached, enacting a bill to carry it out could take some time; current temporary spending authority expires January 15. Officials already are considering another temporary extension, potentially into mid-April. An agreement could prevent the next round of budgetary sequestration, due to take effect in January. The question all along has been, and remains, how to find equivalent deficit reduction. Various options that have been raised include paying less generous retirement COLAs, raising employee contributions toward retirement by various amounts, and others that would directly impact federal benefits. Those remain on the table, although employee organizations and some members of Congress are lobbying against making such changes, saying federal workers have contributed enough toward deficit reduction in recent years. An agreement also could address the need to raise the federal debt ceiling; the temporary relief from that limit expires February 7. Various funding maneuvers including one involving the TSPs government securities G fund could extend the need for action for several more months, however.
Posted on: Sun, 01 Dec 2013 00:29:39 +0000
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