Just before 7 a.m. on Thursday, May 22, the House of Representatives passed H.R. 1, also known as the One Big Beautiful Bill Act. This legislation proposes $4.5 trillion in tax cuts for wealthy individuals and offsets these reductions by cutting funds from essential government programs, including the Federal Employees Retirement System (FERS).
The bill would specifically eliminate the FERS annuity supplement for certain employees starting January 1, 2028. The supplement currently allows postal workers to retire before age 62 by providing monthly payments until Social Security benefits commence.
For instance, a postal worker aged 57 who meets service requirements can presently retire with monthly payments until age 62 when Social Security begins. Eliminating this supplement could force workers aged 57 to 62 to choose between reduced retirement benefits or extending their careers until they qualify for Social Security.
Due to efforts from postal workers, labor unions, and other allies involving calls and letters to Congress members, two provisions were removed from the original bill. These provisions included increasing the FERS employee contribution rate to 4.4% and altering the high-3 annuity calculation to a high-5 calculation, which would reduce annuity payments.
The American Postal Workers Union (APWU) opposes eliminating the FERS annuity supplement, arguing that retirement is an earned benefit that should remain intact. “Changing the terms of retirement is unfair to postal and federal workers who worked their jobs with the promise of an equitable retirement,” stated APWU representatives.
As H.R. 1 advances to the Senate, supporters are urged to contact senators through a legislative hotline at 844-402-1001 to advocate for preserving the FERS annuity supplement.
