Lowering pay for federal jobs is bad for workers — and bad for America

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Going forward, the government will have to pay more — not less — to be competitive

Published: June 25, 2025 at 10:10 a.m. ET

A suggested revenue proposal that was initially included in Trump’s “one big beautiful bill” would increase the contribution that federal employees make to their defined-benefit plan.

Increasing the contribution rate might be a good idea if federal employees were overpaid relative to private-sector workers and not so good if they earned less.

About the Author

Alicia H. Munnell is a columnist for MarketWatch and senior advisor of the Center for Retirement Research at Boston College. She founded the Center for Retirement Research in 1998 and served as its director for more than 20 years.

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