Deficit Reduction Commission Proposals Are Still Around: What Will It Mean for Your Pay and Benefits?

The deficit reduction commission made a number of proposals late last year, including some that would impact federal pay and benefits. President Obama has not endorsed the recommendations. That may be about to change. Here is a summary of proposals from this commission that would impact the federal workforce and retirement programs.

Americans Overestimate Federal Benefit Costs

On average, Americans think the federal government spent 10 percent of its 2010 budget on pensions and retiree benefits; the OMB figures indicate the real number is about 3.5 percent. Another area that is not often talked about is the big difference for federal workers and state workers is that federal employees pay significant premiums for their health insurance.