Three proposals to help reduce the nation’s deficit could reduce the standard of living of retirees covered by the Federal Employees Retirement System: Computing the pension benefit with the average of the highest five years of salary, instead of the highest three. Reducing cost-of-living adjustments. Increasing the employee’s share of contributions to FERS before retirement. Changes like these could affect the life you enjoy for many years after you stop working, so it is important that you understand what they mean to you. I analyzed the case of a hypothetical employee near the top of the pay scale, but the…