Federal Employees Closer to Contributing More Pay Toward Retirement

Federal employees are one step closer to contributing more money to their retirement. The House last week passed a measure that would require feds to pay an additional 5 percent of their salary toward retirement. The increase would be phased in over the next five years beginning in 2013. Currently, employees in the Federal Employee Retirement System (FERS) contribute 0.8 percent toward a defined pension benefit and 6.2 percent to Social Security, while Civil Service Retirement (CSRS) employees contribute 7 percent toward a defined pension benefit. Employee unions criticize the measure as unfair. Read more.