Fed retirement hike to pay for unemployment insurance

Congress has passed President Obama’s payroll tax extension. Many analysts see it as a victory for the President, but some see the $143 billion measure as a defeat for the federal workforce. The legislation requires newly-hired federal employees to contribute an additional 2.3 percent of their salaries towards their own retirement.

“GOP lawmakers, for most of the last year or so, targeted federal employees, saying they’re overpaid, saying they’re over-compensated and that is a way to get savings, to do some of these things,” said Bernie Becker of The Hill newspaper. He joined The Federal Drive with Tom Temin to discuss the impact the legislation will have on the federal workforce.

He added the $15 billion generated by the 2.3 percent payment to retirement would help pay for the extension of unemployment insurance.