Congress targets fed workers' pensions for savings

December 16, 2013 1:10 PM ET

By By ALAN FRAM

WASHINGTON (AP) - Top lawmakers have found easy prey in their hunt for savings for Congress' budget deal: Federal workers' retirement programs, which are notably generous compared to the norm in private industry.

Most federal civilian employees hired beginning in January will contribute 4.4 percent of their pay to their pension plans under the bipartisan budget agreement. Current government workers' rates will remain unchanged: Those hired in 2013 will continue paying 3.1 percent, while most on the payroll before then will keep contributing 0.8 percent.

The workers say they've been singled out for a painful hit in the measure, which the House approved last Thursday and the Senate is expected to complete this week.