Bloomberg News

Republicans Propose U.S. Employee Pension Change to Fund Roads

February 14, 2012

Feb. 8 (Bloomberg) -- House Republicans are proposing that U.S. government employees, including members of Congress, pay more of their pension costs and apply the $44.6 billion savings over 10 years to transportation projects.

Employees from all three branches of government would pay about 1.5 percent more toward their pensions over three years, according Ali Ahmad, a spokesman for the House Oversight and Government Reform Committee. House Republicans added the changes to their transportation bill, according to a measure on the Rules Committee website.

House Republicans have proposed eliminating the use of vehicle-fuel taxes for mass transit projects and dedicating that money to highway and bridge repairs. They have proposed a one- time transfer of $40 billion from the U.S. general fund to pay for mass-transit projects during the next five years.

The pension changes would begin as soon as 2013, according to the measure. The Rules Committee pulled together legislation from various House committees to fund transportation projects.

--Editors: Steve Walsh, Bernard Kohn

To contact the reporter on this story: Carol Wolf in Washington at cwolf@bloomberg.net

To contact the editor responsible for this story: Bernie Kohn at bkohn2@bloomberg.net


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