Budget deal includes 1.2% gov. payroll tax hike

Pension contributions function as taxes:

Increased pension contributions

On Monday, a senior Senate Democratic aide said that workers would not have to increase their own contributions toward their pensions as much as previously thought.

The Congressional Budget Office had previously estimated that if each employee contributed an additional 1.2 percent of their salaries to get the same retirement annuities, it would save the government $19 billion over 10 years.