Obama Administration

Obama Budget Would Hike Federal Employee Pension Contributions

And reduces payouts

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The budget plan released by President Barack Obama on Wednesday includes a renewed proposal to hike the pension contributions of government employees, angering federal worker groups who say they're already being hit with furloughs and pay-rate freezes as Washington wrestles over spending.

The president's proposal would increase retirement contributions from federal employees from 0.8 percent of their paychecks up to 2 percent over the course of three years. The move would save $20 billion over the course of a decade, according to the budget blueprint.

"These changes are expected to neither negatively impact on [sic] the Administration's ability to manage its human resources, nor inhibit the Government's ability to serve the American people," the budget proposal states.