Trump administration: Congress should cut $1.4 trillion in pension buyouts, pensions and other benefits
The Trump administration says Congress should consider a proposal to cut $9 billion in federal retirement benefits and other retiree benefits over 10 years.
The White House says the measure would boost federal outlays by $1 trillion over a decade.
The Trump Administration’s request for funds for the package comes amid a prolonged crisis over the fiscal cliff, which the president says could lead to higher taxes on those earning $1 million or more.
The proposal is also a way to help the struggling economy.
It would reduce federal retiree payments by $2.5 trillion over 10 months, according to the budget office.
The plan would eliminate the Social Security Disability Insurance trust fund, which provides payments to millions of retired workers.
The funds would be used to help pay for other retirement benefits, including disability payments, Pell Grants and other forms of aid.
The Congressional Budget Office projects that the measure, which would increase the deficit by $9 trillion over the decade, would cost the government $3.6 trillion over 20 years.
That would be a big hit to the federal budget, which is projected to shrink by $6.6 billion in 2018.
The CBO estimates that about half of the savings in the plan would come from cutting benefits, but that the government would save an additional $1 billion annually over the next decade.
It’s not clear if that would be enough to pay for the cuts.