Federal employees may be facing the end of their current retirement benefits, as the White House joined Republicans today in recommending that workers contribute more to their pensions.

The White House's budget would increase contributions over three years to 2 percent of salary, up from the current rate of 0.8 percent. It would also eliminate an annuity supplement to employees who retire before their Social Security payments kick in.

The recommendation is less drastic than the GOP proposal, which would raise employee contributions to 2.3 percent of salary, as well as base annuities on the highest five consecutive years of salary. Currently, it is based on the highest three.

But the fact that President Obama is suggesting similar changes to those the GOP suggested to the Federal Employees Retirement System (FERS) is sure to add fuel to Republicans' argument that federal employees' retirement program is too generous in a time of fiscal constraint.

Obama recommended similar actions last year as part of a deficit reduction proposal, but Democrats have argued that it shouldn't be taken out of the larger plan that included tax hikes. With its inclusion in the White House proposal, it appears the debate won't be about whether employees should pay more into their pensions, but about what the savings from that change should offset.

The Congressional Budget Office estimated late last week that the GOP plan would increase revenues by $42 billion over a 10-year period. The White House estimates its plan will save $27 billion.

In a statement today, National Federation of Federal Employees President William Dougan said the White House proposal would "have a serious impact on the retirement security federal employees were promised."

"Asking FERS employees to pay two and a half times more for their pensions in this strained economic environment could mean the difference between keeping a roof over their heads and going into foreclosure," Dougan said.

The GOP proposal has popped up in various places, with lawmakers first including it as a potential offset to extend the payroll tax holiday and then moving it forward as a separate bill. Last week, they folded it into a transportation bill to fill a $40 billion hole (E&ENews PM, Feb. 8).

The White House budget isn't all bad news for employees. It also includes a 0.5 percent raise to federal salaries, which the Office of Management and Budget had confirmed last month. While far less than the usual cost-of-living adjustment -- which in the past has hovered around 2 percent -- the raise ends a two-year pay freeze on federal employees.

Dougan argued that the increased retirement contributions counteract that raise. For example, an employee making $50,000 annually would get only a net 0.1 percent pay increase, totaling $50 for the year.

In his message accompanying the budget, President Obama acknowledges employees' sacrifice and distanced himself from the Republican view that federal employees are overpaid.

"Making these spending cuts will require tough choices and sacrifices. One of them is the 2-year freeze on Federal civilian worker salaries," he said. "This is in no way a reflection on the dedicated service of Federal workers, but rather a necessary belt-tightening measure during these difficult times when so many private sector workers are facing similar cuts."

Federal employees may also be affected by less-direct cuts aimed at decreasing overall government spending. The White House budget references Obama's November executive order requiring agencies to reduce funding in certain administrative categories by 20 percent below 2010 levels. Cuts are focused on travel, smartphones, laptops, printing, promotional swag and executive fleets.

In 2013, those cuts will yield $8 billion in savings, according to the White House budget.

The reductions aim to reduce overall spending in those areas by 20 percent, though a White House spokeswoman declined to provide details on how that will break down for individual agencies. But at the very least, it promises fewer business trips and BlackBerrys for federal employees.