On October 19, Rep. Derek Kilmer (D-WA) reintroduced the Federal Retirement Fairness Act (H.R. 5995), FMA-endorsed legislation that would allow Federal Employee Retirement System (FERS) employees who worked in temporary or intermittent positions to make catch-up contributions toward their retirements. This is an FMA issue brief and Rep. Kilmer has been a champion on this issue for many years.

“Many federal employees begin their careers in temporary positions before transitioning to permanent status. We need to have their backs,” Kilmer said in a press release. “The Federal Retirement Fairness Act will ensure that all federal workers, from those at Puget Sound Naval Shipyard to postal workers and beyond, have the opportunity to retire on time, regardless of how they started their careers.”

James Cappa, President of FMA Chapter 14 (Puget Sound Naval Shipyard), offered a statement of support for H.R. 5995, which Rep. Kilmer included in his press release. “The Federal Managers Association (FMA) appreciates the support, time, and efforts from Representative Kilmer on the introduction of the Bipartisan bill Federal Retirement Fairness Act,” Cappa said. “Federal workers would like to see this inequality corrected and allow Federal Employees Retirement System (FERS) employees to make deposits (buy-back the time) in the same manner as CSRS employees.”

Under the Civil Service Retirement System, non-deduction civilian service performed after September 30, 1982, is creditable for retirement annuity computation purposes, other than average salary, only if the employee pays a deposit for that service. Service on or before September 30, 1982, is creditable for annuity computation without a deposit; however, 10 percent of the deposit owed will be permanently deducted from the annual annuity. Currently, a FERS employee may make a deposit for nondeduction service performed before January 1, 1989, and receive credit toward his or her annuity computation; however, non-deduction service performed on or after January 1, 1989, generally is not creditable under FERS for any purpose.

H.R 5995 currently has 21 bipartisan cosponsors.

“Many federal workers start as temporary employees and work for five to ten years, unable to contribute to their retirement, before becoming permanent,” said Rep. Don Bacon (R-NE). “Allowing them to make a lump sum payment towards their retirement when they become permanent allows them to have a firm footing for their future and provides peace of mind.”

Rep. David Valadao (R-CA) also offered a statement: “Public servants deserve recognition for their service just like every other worker – whether they began their career as a temporary or a full-time federal employee. The Federal Retirement Fairness Act will ensure these hard-working Americans are not punished for beginning their career as temporary employees,” said Rep. Valadao. “I’m proud to join my colleagues in re-introducing this bipartisan legislation that will help federal employees retire on time.”

To follow the progress of H.R. 5995, click here.