2021 White House Budget Impacts

Federal Members,

Below is a summary of the impact on federal employees that are contained in the White House 2021 Budget.

Trump Budget impacts relative to Federal Fire Fighters:

Annual COLA

  • 1% Cost of Living Adjustment.  No additional locality zone increase

Career Progression Steps

  • Extend time interval required for steps increases resulting in an average 50% delay in the time to achieve the next pay step

Changes to FECA

  • Reduce FECA (Workers Comp) payment rates reduced for all employees to 66.66% from 75% currently received by employees with dependents
  • Require FECA recipients to convert to a retirement annuity at the earliest date of retirement eligibility
  • Establish an up-front waiting period before qualifying for FECA benefits

Federal Employee Health Benefits

  • Reduce the government portion of premium payments resulting in an increased premium cost borne by the employees

Federal Employee Retirement System (current employees)

  • Increase the employee contribution, phased in at 1% additional per year, until the employee is contributing 50% of FERS cost

Reduce Retirement Benefits

  • Eliminate retiree COLA increases to FERS annuity recipients
  • Reduce retiree COLA increases to .5% for CSRS annuity recipients
  • Eliminate Retirement Annuity Supplement provided to Special category (fire fighters, LEOs and ATC) employees
  • Change FERS annuity formula from an average of High-3 years earnings to an average of High-5 years earnings
  • Reduce the return rate on TSP G-Fund investments to the short term T-bill rate.

Jim Johnson, DVP16

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