Under the Budget Ax
The catch-up-with-industry pay raises for federal workers, future pension benefits, lump-sum payments and even the benefits of widows and orphans of federal workers and retirees will be on the cutting table when Senate- House conferees begin work on the budget outlined by President Clinton.</br></br>The House-passed budget resolution goes along with the president's plan to deny federal-military personnel an across-the-board pay raise next year. But it does hold out the possibility of smaller locality adjustments in 1994, if cuts are found in other federal personnel programs.</br></br>The House plan also would limit the maximum 1994 retiree cost-of- living adjustment to $400. It would give retirees 62 and older adjustments 1 percent less than inflation in 1995, 1996 and 1997, and give half that amount to retirees younger than 62.</br></br>Benefits for widows of future federal retirees would be cut by about 10 percent under the House plan, which also would lower to 18 (19 for students) the age at which child survivor benefits end. Currently, such benefits can be collected until age 22.</br></br>The Senate-approved budget appears, on the surface, to be much easier on employees and retirees. It proposes to save money by doing away with the lump-sum pension benefit for retirees. Those payments are now available to terminally ill retirees and people forced to quit or retire; they are due to become available again to all retirees next year.