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Federal Daily News

Government could reap big savings through partial retirement plan

The Congressional Budget Office estimates that allowing federal employees to continue working part-time as they phase into retirement could save taxpayers over $400 million within 10 years, Government Executive reports.

Under a proposed House bill, federal employees would phase in their retirement annuities for three years prior to full retirement. The bill, which was unanimously approved in April by House Oversight and Government Reform Committee, would allow eligible employees to work part time and collect a partial salary and a partial retirement annuity, and roll unused annual leave into their Thrift Savings Plan accounts, the report notes.

The bill’s sponsor, Rep. Darrell Issa (R-Calif.) said the savings would come as a result of agencies replacing fewer retirees with part-time employees.

Union representatives as well as a ranking Democratic minority member have expressed support for the measure, but want assurance that the potential savings from the program would not be used for programs unrelated to federal workers.



 


 

Reader comments

Thu, May 24, 2012 Lew

In response to the comment about "potential savings": maybe if you clicked on the link in the article, you'd get the rationale for the claim: "The budget office calculated the bill could increase revenue because employees in the program would have otherwise fully retired and would be replaced by FERS employees, who contribute only 0.8 percent of their pay toward retirement. Most CSRS employees put 7 percent of their salary toward retirement." The fact that Darrell Issa--- no friend of federal employees--- is another indication that there's probably no rip-off here. Maybe the problem is that you don't understand finances, expenditures, budgets, or savings.

Thu, May 24, 2012 RENO BLAINE

SOMETIMES WHEN EVALUATING THESE THINGS WE NEED TO USE THE CRITERIA OF WHAT WOULD BE GOOD FOR PEOPLE'S LIVES RATHER THAN WILL THIS OR THAT SAVE OR COST THE GOVERNMENT 5 CENTS MORE.

Thu, May 24, 2012 RENO BLAINE

A PART TIME POSITION WOULD BE GREAT FOR ME. THIS IS A SOUND IDEA AND WOULD BE WELCOMED BY MANY OFTHOSE CONTEMPLATING RETIREMENT

Wed, May 23, 2012

if this program ever actually comes into being, why not use the savings to mitigate the Federal debt balance?

Wed, May 23, 2012 north carolina

How about if the Gov. fully meets it's fiscal requirements to the current Fed. Retirees being forced to living on a small pittance of their rightfully owned retireement funds and benfits? Who would trust Gov. with such a complex business concept as "part-time employement" and risking our earned lifetime savings in another OMB/HR fiasco. Can you say, Roth Option, boys & girls???

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