FMA APPLAUDS HOUSE PASSAGE OF LEGISLATION CREDITING FERS EMPLOYEES FOR UNUSED SICK LEAVE - July 31, 2008

Measure would provide FERS employees with the same benefit their CSRS counterparts enjoy

Alexandria, VA – The Federal Managers Association commends the House of Representatives for passing H.R. 1108, the Family Smoking Prevention and Tobacco Control Act, which included a provision providing employees under the Federal Employee Retirement System (FERS) with a credit for unused sick leave at the time of retirement.

“The cost of sick leave used by federal employees continues to rise, and the loss of productivity becomes more apparent as there is no incentive for FERS employees to conserve sick leave,” commented FMA National President Darryl Perkinson. “By placing a value on sick leave, FERS employees are encouraged to use their leave responsibly.”

Since the Federal Retirement Reform Act of 1985, all federal employees hired after December 31, 1983 are covered under the Federal Employees Retirement System (FERS). Unlike the Civil Service Retirement System (CSRS), FERS employees do not receive credit for unused sick leave upon retirement. This continues to be a growing problem for managers striving to bring the best out of their employees. In fact, the Office of Personnel Management currently estimates this problem costs taxpayers $68 million a year.

FMA has been working on this issue with Congressman Moran and his staff over the last several years. In March 2008, Moran introduced H.R. 5573, which would have provided FERS employees with a lump sum payment at the time of retirement for accumulated sick leave, up to $10,000. “I would like to thank Congressman Moran for his work on this legislation. We are truly encouraged that this bill goes even further than the originally proposed legislation,” commented Perkinson.

Under the legislation, FERS employees will get all of their accrued sick leave added to their retirement annuity, just like their Civil Service Retirement System counterparts. While phasing in the program, those who retire within the first three years after passage will receive 75 percent of their accrued sick leave.

“By placing a value on sick leave, Congress is taking proactive steps to ensure abuse does not occur, while at the same time, avoiding punishing employees who use their sick leave for legitimate purposes,” continued Perkinson. “I encourage the Senate to act swiftly on this legislation after the August recess.”