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FEW Salutes House for Passing Legislation with Federal Worker Provisions; FERS Sick Leave Credit and FERS Redeposit Approved
Date:4/1/2009

losing their accrued annuity. Instead of forfeiting credit earned during their prior service, returning employees would be able to redeposit their cashed out annuity upon re-employment. This benefit is already available to federal employees covered under the older CSRS. Having a reinvestment option for FERS would make government service more competitive by incorporating the flexibility and mobility of retirement plans available in the private sector.

Cecelia Davis, FEW's Vice President for Congressional Relations, expressed her gratitude to Rep. Jim Moran (D-8-VA) who originally introduced these two bills. "Mr. Moran has consistently helped move legislation through the Congress that benefits not only current federal workers, but also potential and retired workers as well. This is especially important as we attempt to attract and retain new employees so that the services Americans have come to rely on, and deserve, are not interrupted."

These provisions are paid for through changes to user fees on tobacco. This bill also makes important changes to the Federal Government's Thrift Savings Plan (TSP) including be automatic enrollment for new employees with matching funds and the addition of a "Roth IRA option" for current enrollees. "During these tight budgetary times, it is absolutely essential that we not add to our nation's expenses," advised Janet Kopenhaver, the organization's Washington Representative. "Not only are these two provisions completely paid for, but the TSP changes also will result in more younger workers saving for their retirement. This is certainly a win-win situation for everyone," declared Kopenhaver.

"We would like to thank the Oversight and Government Reform Committee Chairman Edolphus Towns (D-10-NY) and Federal Workforce Subcommittee Chairman Lynch for their keen support and interest in moving these federal worker provisions forward," Webster concluded. "We ask that the Senate do the same an
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