FMA LAUDS COMMITTEE PASSAGE OF LEGISLATION ALLOWING RETIREES TO RETURN TO SERVICE WITHOUT PENALTY - May 20, 2009

In these strained economic times, federal retirees should be allowed to continue serving their country without being forced to take a reduction in salary

Alexandria, VA – The Federal Managers Association (FMA) commends Senate Committee passage of legislation, S. 629, which would allow federal retirees to return to government service on a part-time basis without having to take a reduction in compensation. This bill will mitigate the loss of federal employees to retirement and ensure that the government can continue to function effectively.

Currently, federal employees who strive to continue to serve the nation after retirement are penalized for returning to work in the form of a pay reduction to offset federal retirement annuity. The rate at which federal employees are retiring from the federal government is cause for concern. As a nation, we will soon experience a human capital crisis as nearly half the federal workforce, or 900,000 employees, will be eligible to retire in the next ten years.

“We must stem the tide of retiring federal employees to facilitate the government’s continued service to the needs of the American people,” commented FMA National President Darryl Perkinson. “Now, more than ever, we need experienced individuals to help our nation tackle the challenges before us. These workers have the skills and abilities to guide us through this time and mentor those who will continue to serve the country.”

The legislation, sponsored by Senator Susan Collins (R-Me.), would cap the amount of hours reemployed annuitants are eligible to work without a reduction in salary while also establishing strict oversight guidelines. Reemployment would be limited to 520 hours in the first six months following retirement, and 1,040 hours in any 12 month period. Reemployed annuitants would be able to contribute a total of 3,120 hours of service before any offset to their annuity occurs. While individuals would receive both salary and annuity payments, they would not be considered employees for the purpose of retirement and would receive no additional retirement benefits based on their service.

“This legislation will fill critical gaps and help train the next generation of federal employees by retaining institutional memory,” Perkinson continued. “This is a crucial tool for successful recruitment, retention, and mentorship between experienced federal employees and new civil servants.”