Your Questions Answered Regarding House Budget Reconciliation Cuts to Postal and Federal Benefits

With the recent House Oversight and Accountability Committee approval of federal benefit cuts, NAPS members have several fundamental questions about the potential changes.

1. Are the changes a done deal?

No, the changes must be included in the 2025 Reconciliation Act that the full House and the Senate have yet to pass and President Trump must sign the bill into law. For these reasons, NAPS members must continue to contact their representatives and senators to oppose the benefit reductions.

2. How should I contact Congress?

NAPS has made it easy and convenient. You may use the QR code on this page to help you communicate with members of the House of Representatives. If and when the reconciliation bill advances to the Senate, NAPS will post an advocacy message tailored for the Senate with a different QR code, which will be broadcast to NAPS members.

3. If the bill is signed into law as approved by the House Oversight and Accountability Committee, will the FERS Annuity Supplement be eliminated? When would the elimination take effect?

Yes, the FERS Annuity Supplement would be eliminated. As approved by the committee, the FERS Annuity Supplement would continue for those already receiving the supplement; however, anyone retiring after the bill is enacted would not receive the supplement.

4. If the bill is signed into law as approved by the House Oversight and Accountability Committee, when would the change to the CSRS and FERS annuity calculation from the high-3 to the high-5 take effect?

The change in the annuity calculation would apply to CSRS and FERS-covered employees who retire on or after Jan. 1, 2027.

5. How much will my take-home pay be reduced if the committee-approved increase in FERS contributions is signed into law?

The committee-approved increase would affect different FERS-covered employees in three different ways. Employees hired in 2014 and after would not contribute a greater percentage of their salary toward FERS; they already contribute 4.4% of salary.

Employees hired in 2013 would contribute an additional 1.3% of salary and employees hired prior to 2013 would contribute an additional 3.6% of salary. The changes would take effect on enactment.