Pensioners to be paid in the billions as government pension fund faces massive shortfall
Pensioners who worked for the federal government for decades will get to share a lump sum of about $1,200 a month in their federal pension fund, under a deal agreed by the government and union leaders on Friday.
The lump sum, which was a direct result of a $1.8bn government funding shortfall, will be paid to the beneficiaries in a lump-sum payment starting in 2019.
It will be in addition to the payments currently paid to government employees, and will cover the cost of providing disability benefits to pensioners who work for the government.
“I’m so happy to see the government come out with this big deal,” retired federal cabinet minister and chair of the Service Employees International Union (SEIU) Chuck Jones told Al Jazeera.
“It will pay for a lot of the benefits we’re entitled to now and the pensions we’re getting.”
The Government Accountability Office (GAO) has previously called on the government to cut benefits to federal government employees and cut the pension entitlements for federal employees to “a level commensurate with the level of federal service”.
In the deal, federal employees will receive about $3,200 in lump sums for each of the next two years.
This will cover about a quarter of the federal pension program’s $9.8 billion shortfall over the next decade, according to a statement from the federal pensions department.
The agreement includes $3.5bn for the pension system, which will be funded by a mix of direct and indirect payments.
This means that the lump sum payment will be the same regardless of the size of the shortfall.
The federal government will pay a percentage of the lump sums to employees who worked in the federal service for at least five years and up to the maximum five years of service.
The pension system has been hit by the recession and budget shortfalls.
The government is on track to repay about $2.5 billion of its $9 billion in funding obligations.
The $2 billion payment comes as part of the government’s ongoing review of federal pension plans.
This is part of a broader effort to ensure the system is “reinvented” to improve the quality of its pension payments, the government said.
This review will involve looking at how the government funds the federal retirement system and how it handles pension and disability benefits, it said.
“We’re committed to making the pension program the best it can be,” said US Labor Secretary Tom Perez.
The deal includes $1 billion in payments to employees of the National Security Agency, who will be eligible to receive a lump of $300 per month.
They will also receive $200 in monthly disability benefits.
The US National Labor Relations Board will also be paid $3 billion, and US Postal Service workers will get $2 million in monthly payments.
The National Association of Letter Carriers (NALC) said in a statement the pension payments were part of “a $1 trillion package of government-wide pension reform, including billions of dollars for federal workers”.
This includes the $1trillion stimulus package, which is also due to be released later this month.
“Today’s announcement is a big win for workers, but we are disappointed by the lack of accountability,” NALC Secretary-Treasurer Richard Shuler said.
The proposed federal pension system will be financed by a combination of direct payments and a new tax on overseas funds.
The tax will help finance the pension reforms and help the federal fund maintain a minimum pension liability of $15 billion.
In order to be eligible for the new pension system and the tax, workers will need to be current on their payments.
If they have received a lump payment, but not the full amount of the pension, they can apply for a second lump payment.
The second lump will cover their retirement and will be deducted from their current lump sum.
A total of 1.5 million federal workers will be receiving a lump amount of about a half a million dollars a year.
The plan will be phased in over a decade.
The bulk of the $2bn payment will go towards the disability insurance program, which the government is also in the process of eliminating.
The disability insurance payment will come from the disability trust fund, which provides benefits to people with disabilities and those with chronic conditions.
The program is funded by the Federal Disability Insurance Program (FDI) and is funded at a rate of 3.3% of gross domestic product (GDP).
The FDI was set up to pay workers for work that is not covered by their job, including some work that does not involve physical work.
The fund has been funded for more than 30 years and is projected to be depleted by 2022.
It was set to close in 2019 and was expected to cost $2-3 billion a year to run.
But the plan is now expected to run out by 2024.
This would leave the disability fund with $1-2 billion in the fund, with another