FMA URGES SENATE TO MOVE SWIFTLY ON H.R. 1256 TO STRENGTHEN THE STATE OF THE CIVIL SERVICE - June 3, 2009

Measure would provide needed changes to improve the efficiency and viability of the federal government and its operations.

Alexandria, VA - The Federal Managers Association (FMA) urges the Senate to approve H.R. 1256, the Family Smoking Prevention and Tobacco Control Act, which would extend critical benefits to members of the federal workforce. The House of Representatives passed the bill in April by an overwhelming majority and it is crucial the Senate do the same.

Specifically, H.R. 1256 would afford employees under the Federal Employees Retirement System (FERS) a credit for unused sick leave at the time of retirement, a benefit currently enjoyed by their counterparts in the Civil Service Retirement System (CSRS). This disparity continues to be a growing problem for managers striving to bring the best out of their employees. In fact, in a recent survey of the federal workforce, 85 percent of CSRS employees said they conserved as much sick leave as possible while 75 percent of FERS employees said they would use as much sick leave as possible during their last years of service. As such, it is not surprising the Office of Personnel Management (OPM) currently estimates this problem costs taxpayers $68 million a year.

"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."

Prior to 1969, CSRS employees received no credit for sick leave. It was only after data showed the use of sick leave rose dramatically nearing the time of retirement that Congress created a sick leave benefit. The Civil Service Commission (the predecessor to OPM) estimated that half of all retiring federal employees had zero sick leave. The Commission's report also showed that prior to 1969, retiring employees used an average of 40 sick leave days in their last year of employment. It is evident that history is repeating itself.

Also included in the legislation is a provision allowing FERS employees who leave the federal government the option to redeposit their previously cashed-out annuity if they return to government service. This means that for purposes of determining annuity benefits, these employees will not lose credit for previous years of service when returning to the federal workforce. A redeposit benefit is already available to CSRS employees who began working for the government prior to 1984, and this provision would provide FERS employees with the same opportunity.

"As the baby boomers begin to leave the government in record numbers, we need to ensure their expertise will not be lost with them," Perkinson went on to say. "FMA is supportive of this provision which could fill mission-critical positions with those who already have a working knowledge of our government."

Additionally, H.R. 1256 contains several provisions relating to the Thrift Savings Plan which the Senate must adopt. Under the proposal, new employees would be automatically enrolled in the TSP upon employment with the government. The bill would also create a Roth IRA option within the TSP for federal employees, which the Federal Managers Association fully supports.

"The Thrift Savings Plan is one of the most efficiently administered retirement funds in the country, and these provisions will encourage and reward federal employees for their participation in this important benefit," Perkinson concluded.

These are just a few of the crucial federal workforce provisions contained in H.R. 1256. We at FMA strongly encourage the full Senate to follow in the House's footsteps and pass this important legislation.