The "Bipartisan Budget Act of 2013, Section 401" makes another change to the Federal Employees' Retirement System (FERS). Beginning in 2014, new employees (as designated in the statute) will have to pay higher employee contributions which is an increase of 1.3 percent of salary above the percentage set for the FERS Revised Annuity Employee (RAE). The rate for the FERS- Further Revised Annuity Employee will be a 4.4% deduction rate.
As a result of the "Bipartisan Act of 2013, Section 401", the reporting requirements and "Retirement Plan" data element will change to add on seven additional codes effective January 1st 2014. This change will affect any new employees brought onboard with an effective date of January 1, 2014 or later; employees will be indebted for the difference in their retirement deductions once correction has been made to their appointment utilizing the new retirement codes.
(Employees hired on/after 1 Jan 14 with 5 years of previous creditable service will not be subject to the new deductions/codes).