OMB budget guide details retirement contribution rates for future feds

The deal to extend the payroll tax cut includes increases to new federal employees’ retirement contributions.

Under the Middle Class Tax Relief and Job Creation Act of 2012, feds hired after Dec. 30, 2012 and those with less than five years of previous federal service, will have to pay 2.3 percent more of their salaries toward their defined benefit pensions.

The Office of Management and Budget refers to these future feds as revised annuity employees (RAE). The chart below details the RAE and agency contributions. OMB released the chart as part of the OMB’s A-11 budget guidance for agencies’ fiscal 2014 budget requests.

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Retirement Groups FERS Non-RAE Employees
(current feds)
FERS RAE Employees
(hired after Dec. 30, 2012)
Normal Cost Employee Contribution Employing Agency Contribution Normal Cost Employee Contribution Employing Agency Contribution
Regular 12.7% 0.8% 11.9% 12.7% 3.1% 9.6%
Law Enforcement 27.6% 1.3% 26.3% 27.6% 3.6% 24%
Air Traffic Controller 27.3% 1.3% 26% 27.3% 3.6% 23.7%
Military Reserve Technicians 15.7% 0.8% 14.9% 15.7% 3.1% 12.6%
CIA Special Overseas 18% 1.3% 16.7% 18% 3.6% 14.4%
Members of Congress 19.6% 1.3% 18.3% 19.6% 3.1% 16.5%
Congressional Staff 18% 1.3% 16.7% 18% 3.1% 14.9%

Source: A-11 Budget Guidance



New feds’ pension contributions increase under payroll tax cut deal

Federal pay and benefits tracker