Bipartisan legislation unveiled on Feb. 24 by U.S. Reps. David Valadao (R-CA) and Don Bacon (R-NE) would address the gap for federal employees who began their careers as temporary workers and were unable to make retirement contributions.
Specifically, the Federal Retirement Fairness Act, H.R. 1522, would permit these workers to make catch-up contributions to ensure they can retire as planned, according to a bill summary provided by the lawmakers, who cosponsored the measure.
“For too long, federal employees who started their careers in temporary positions have been unfairly penalized when it comes to their retirement benefits,” Rep. Valadao said. “The Federal Retirement Fairness Act is a common-sense, bipartisan solution to ensure our hard-working public servants can retire on schedule.”
“Postal workers in my district came to me about this problem, and I couldn’t agree more that we need to allow them, and all federal workers, to make catch-up payments as part of their retirement benefits,” said Rep. Bacon. “I’m pleased to join my colleagues in making this right for our federal workforce. They work hard and should be able to get the retirement that that work has earned.”
Prior to 1989, the Office of Personnel Management permitted federal employees to make catch-up payments, enabling them to compensate for years they didn’t contribute to their retirement accounts. However, the provision was eliminated when the government transitioned to a new federal employee retirement system, the bill summary says.
If enacted, H.R. 1522 would reinstate the option for employees hired post-1989, allowing them to retroactively purchase the time they served as temporary federal employees — mirroring the terms that existed before 1989.
“No matter how they begin their careers, all federal employees deserve the opportunity to retire on time and with the full benefits they have earned,” said bill sponsor U.S. Rep. Gerry Connolly (D-VA). “The federal workforce is our nation’s greatest asset. In this dark and uncertain hour for America’s civil servants, I am proud to join my colleagues in this important effort to guarantee the fair retirements that they deserve.”
Among the 22 other members who joined Rep. Valadao and Rep. Bacon as original cosponsors of the bill are U.S. Reps. Brian Fitzpatrick (R-PA) and Young Kim (R-CA). The bill is under consideration by the U.S. House Oversight and Government Reform Committee.