Tags: Debt | deal | federal | workforce | cuts

Debt Deal Could Lead to Federal Workforce Cuts

Tuesday, 02 Aug 2011 10:12 AM

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Although the debt ceiling deal doesn’t include cuts in the federal workforce or benefit reductions, provisions in the plan could lead to just that. The plan includes caps on federal spending over the next 10 years and the creation of a congressional committee to determine further cuts.

Taken together, the plan could lead to pay freezes, unpaid furloughs, hiring freezes, layoffs, increases in employee contributions to retirement plans, and reductions in retirement benefits, The Washington Post reported.

National Treasury Employees Union President Colleen Kelley said she is pleased that the plan did not include “any immediate cuts to federal pay or pensions. However, the impact on the federal workforce remains uncertain and agencies are likely to face reductions in their budgets,” the Post reported.

Programs such as disaster relief and efforts to detect fraud in disability and health insurance programs would have some protection from cuts and the caps would not apply to spending for the wars in Afghanistan and Iraq. The special House-Senate committee charged with finding another $1.5 trillion in additional savings has wide discretion to come up with reductions and could look at the federal workforce and its benefits, the Post reported.

Should the committee not be able to come up with cuts, automatic ones would go into effect that would put pressure on employees, the Post reported.


© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Muhammad Ali Hospitalized With Pneumonia

Saturday, 20 Dec 2014 23:27 PM

Boxing great Muhammad Ali was hospitalized with a mild case of pneumonia that was caught early and should result in a sh . . .

Chicago Mayor's Teenage Son Mugged near Home

Saturday, 20 Dec 2014 22:32 PM

A spokeswoman for Chicago Mayor Rahm Emanuel says the mayor's 17-year-old son was mugged near the family's home.Spokeswo . . .

Protesters Shut Down Part of Mall of America in Minnesota

Saturday, 20 Dec 2014 22:25 PM

More than 1,500 protesters against police violence shut down part of the Mall of America in Minnesota on Saturday, resul . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved