New Federal Workers Sacrificed

The Payroll Tax Extension which keeps the Social Security Tax at 4.2% for the rest of the year vs 6.2% has been ironed out by making new Federal Employees hired in 2013 pay 3.1% towards their retirement versus the current number of 0.8%.   At this time it appears current Federal Employees  will be grandfathered and remain at 0.8%.  Keep in mind Obama proposed a 1.2% increase for all Federal Employees in his 2013 budget.  At this point it's hard to say whether this includes his plan or not however don't be surprised if current Federal Employees eventually have their contributions raised by 1.2% in the future.