Benjamin Gilman: “although there are many worthy provisions in this measure, H.R. 1215, I must take exception to the inclusion of title…”

“although there are many worthy provisions in this measure, H.R. 1215, I must take exception to the inclusion of title IV, the Congressional and Federal Employee Retirement Equalization Act. It is important to note that due to a lack of consensus by Members of both parties, these retirement provisions, originally H.R. 1185, never came to a vote in the Committee of Jurisdiction. Now these same provisions are being brought to the floor under a closed rule and as part of a separate legislative package. These actions stand in direct contradiction to the committee process and have in effect, restricted debate on an issue that will affect thousands of hard working families in my district. The inclusion of title IV in a tax reduction bill seems ironic because, in essence, title IV is a tax increase on Federal workers. Title IV mandates a 2.5 percent payroll tax increase on Federal employees and institutes a fundamental change in the calculation of each worker's retirement benefits. The Congressional Budget Office estimates that this change will cause Federal workers to suffer a 4 percent decrease in future pension benefits. In this same bill which grants a tax benefit of $500 per child for families with an upper limit income of $200,000, title IV will cost an additional $750 per year for the family of a Federal employee earning an average salary of $30,000 per year.”