Sen. Burr proposes to end pensions for new federal employees

11/13/2013 3:24 PM

08/05/2014 6:51 PM

Republican Sen. Richard Burr has reintroduced a bill that would end pensions for new federal employees.

Burr had sponsored a similar bill in 2011 but it didn't very go far in the Democratic Senate.

So Burr and Republican Sens. Tom Coburn of Oklahoma and Saxby Chambliss of Georgia have reintroduced the measure that would end pensions for new employees but would would allow federal employees to start Thrift Savings Plan, which is the equivalent to a 401 (k) plan paid for by the government and 3 percent percent employer match. Federal employees could keep their current pensions.

"Right now, federal government workers receive far more generous retirement benefits than private sector employees,'' Burr said. "The cost to taxpayers of these benefits is unsustainable and we simply cannot afford it. We cannot ask taxpayers to continue to foot the bill for public employee benefits that are far more generous than their own.''

The measure would also apply to members of Congress.

The average federal pension is $32,824 per year, according to USA Today.

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