Federal Daily - March 20, 2009

Bill Offers New Rules on Rehiring Federal Annuitants

Senators on March 18 introduced legislation that would—if passed into law—authorize federal agencies to reemploy retired federal employees on a limited basis, without forcing them to take a reduction in salary corresponding to their retirement payments. The bill would enhance the federal government’s ability to respond to the potential loss of the nearly 1.8 million federal employees who are eligible for retirement in the next decade, said Sen. Susan Collins, R-Maine, ranking Member of the Senate Committee on Homeland Security and Governmental Affairs. The bill also would augment the government’s efforts to hire personnel to oversee $787 billion in federal stimulus package spending, Collins said. Under the legislation, reemployment would be limited to a maximum of 520 hours (65 days) in the first six months following retirement, 1,040 hours (130 days) in any 12-month period, and a total of 3,120 hours (390 days) for any one employee. While the returning annuitants would receive both salary and annuity payments, they would not be considered employees for the purposes of retirement and would receive no additional retirement benefits based on their service, Collins said. “This legislation would prove vital as the federal government loses many of its skilled, experienced, senior employees,” said Collins. “This legislation would provide agencies with needed flexibility to bring retirees’ experience back into the federal workforce” for a limited time, she said. The Office of Personnel Management estimates that 60 percent of the current federal workforce of 3 million will be eligible to retire in the next 10 years. Sens. George Voinovich, R-Ohio and Herb Kohl, D-Wis., also supported the bill. To see more, go to: http://hsgac.senate.gov/public/index.cfm?FuseAction=PressReleases.
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House Committee Adopts FERS Sick-Leave Credit Bill

In a voice vote, the House Oversight and Government Reform Committee on March 18 approved legislation that would, if signed into law, permit Federal Employees Retirement System (FERS) employees to accrue unused sick leave credit toward retirement. The bill—part of the Family Smoking Prevention and Tobacco Control Act, H.R. 1256—would put FERS employees on the same footing as those covered by the Civil Service Retirement System (CSRS) regarding sick leave retirement credit. The bill also would automatically enroll new civilian employees in the government securities-backed G Fund, which does not decline in value and is widely viewed as the safest Thrift Savings Plan fund. Civilians under FERS get matching contributions from their agencies. And, the bill would correct an anomaly in the law which penalized federal employees who choose part-time work at the end of their careers by not calculating their CSRS pensions correctly. The provision will help retain federal employees who choose to go part-time at the end of their careers, said National Treasury Employees Union President Colleen Kelley. Another provision would allow FERS employees who return to the federal workforce to redeposit their annuities and receive credit for years served. “Each of these [provisions] is a positive and important advance for current and prospective federal workers,” said Kelley. The bill now goes to the full House. Companion legislation on the CSRS part-time work matter is pending in the Senate. To see more, go to: www.nteu.org/PressKits/PressRelease/PressRelease.aspx?ID=1399.

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DoD to Phase Out Stop Loss Policy Over Two Years

DoD on March 18 announced plans to phase out, over the next two years, the Army’s controversial “stop loss” practice, which forced soldiers to stay in the Army beyond their original service obligation. For soldiers stop-lossed during Fiscal Year 2009 (which ends Sept. 30), the department will provide a monthly payment of $500, DoD said in a statement. The Army Reserve and Army National Guard will mobilize units without stop loss beginning in August and September 2009, respectively. The active-duty Army will deploy its first unit without stop loss by January 2010. DoD intends to provide stop-loss special pay to eligible servicemembers until the point of separation or retirement, to include that time spent on active duty in recovery following redeployment. About 13,000 soldiers are serving under the stop-loss policy, nearly double the total of two years ago. “Stop loss disrupts the plans of those who have served their intended obligation,” said Bill Carr, deputy under secretary of defense for military personnel policy. “It is more easily rationalized in the early stages of conflict when events are most dynamic; but tempo changes in this war have frustrated our efforts to end it altogether.”  To see more, go to: www.defenselink.mil/releases/release.aspx?releaseid=12564.

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