New federal employees would contribute more than triple the amount paid by current government workers for their retirement under an agreement reached in Congress to extend a payroll tax break and unemployment benefits, two Maryland lawmakers who helped craft the deal said Thursday.
Federal employees will be required to contribute $15 billion toward the cost of extending federal unemployment insurance under a tentative agreement struck in Congress that would also maintain the 2010 payroll tax break, federal worker union officials said Wednesday.
Federal government workers earn 16 percent more than their counterparts in the private sector, according to a report released by the non-partisan Congressional Budget Office on Monday that is sure to play into the heated debate over federal compensation.
The failure of the congressional "supercommittee" to strike a deal on deficit reduction has left lawmakers scrambling to address a half-dozen bills of major importance to Marylanders, from extending tax breaks to paying Medicare doctors to securing federal money for roads near military bases.
Congress takes a final vote to repeal a law that would have required governments to withhold 3 percent of contract awards to ensure that businesses paid their taxes. The idea was wildly unpopular and could have harmed the regional economy, business leaders say.
For Rep. Chris Van Hollen, brokering a bipartisan deal to trim the federal deficit is about more than dodging draconian automatic cuts or boosting the fragile economic recovery. It's also about proving a bitterly divided Congress can still accomplish something.