Tags: Debt | deal | federal | workforce | cuts

Debt Deal Could Lead to Federal Workforce Cuts

Tuesday, 02 Aug 2011 10:12 AM

Share:
  Comment  |
   Contact Us  |
  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.

Share:
  Comment  |
   Contact Us  |
  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:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Hillary Clinton: US Needs Orderly Process for Border Kids

Monday, 28 Jul 2014 13:25 PM

Hillary Rodham Clinton says she supports creating a refugee screening process for Central American children in their hom . . .

Report: Medicare, Social Security Inching Toward Insolvency

Monday, 28 Jul 2014 12:49 PM

A new report prepared for Medicare and Social Security says both programs are headed for bankruptcy, but not immediately . . .

NYT Supports Pot Legalization; Still Tests New Workers for Drugs

Monday, 28 Jul 2014 12:38 PM

The New York Times is planning to continue testing incoming employees for drug use, even though the newspaper came out w . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

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