House Passes FERS Sick Leave Legislation

July 31, 2008 by
Filed under: Congress, FERS, NAPUS, thrift savings plan 

House Also Passes Thrift Saving Plan Reforms

From The National Association of Postmasters of the United States (NAPUS)

On Wednesday evening, the House of Representatives passed legislation that would enable Federal Employees Retirement System (FERS) employees to credit their unused sick leave towards retirement. Civil Service Retirement System (CSRS) employees already have this option. House Oversight and Government Reform Committee Chairman Henry Waxman (D-CA) added the FERS provision to H.R. 1108, the Family Smoking Prevention and Tobacco Control Act – Waxman is the author of H.R. 1108.Chairman Waxman also inserted in bill a number of provisions to modify the Thrift Savings Plan (TSP). H.R. 1108 passed by an overwhelming 326-102 majority.

The Waxman FERS provision differs from H.R. 5573, FERS sick leave introduced earlier this year by Rep. Moran. H.R. 5573 would have provided a lump-sum payment of 15% of the amount of accumulated sick leave exceeding 500 hours, not to top $10,000. Instead of providing a lump-sum payout, the Waxman provision would credit unused sick leave towards the FERS annuity. Specifically, FERS employees who retiree within three years after enactment would be credited for 75% of unused sick leave, and employees retiring after the three years would get full credit, similar to CSRS employees. The credit, however, would not be able to be used to determine retirement eligibility.

H.R. 1108 also includes the text of H.R. 6500, the Thrift Savings Plan Enhancement Act. Chairman Waxman introduced the bill, and Committee Ranking Republican Tom Davis (R-VA) and Federal Workforce and Postal Service Subcommittee Chair Danny Davis (D-IL) cosponsored it. H.R. 1108 would provide for automatic TSP enrollment for new employees, permit the TSP Board to designate a fund other than the G Fund as the default investment fund, create a Roth IRA option, and give the TSP Board the authority to a add additional, self-directed investment options. A number of employee organizations have raised concern about this enhanced Board authority.

The FERS and TSP provisions are linked for budget reasons. The Congressional Budget Office estimates that H.R. 6500, which includes the Roth IRA TSP option, would increase federal revenue by about $1.3 billion over the next decade. This revenue would offset the increase costs associated with the FERS sick leave provision.

H.R. 1108 faces an uncertain future in the Senate, primarily due to the tobacco provisions, which are controversial. Also, there is a narrow legislative window. This weekend, Congress plans to recess for the summer, returning in September for only three weeks, before hitting the campaign trail. In addition, the White House has threatened to veto the measure. NAPUS will be monitoring the bill and pushing for consideration of the measure.

Source: NAPUS

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Comments

No Comments on House Passes FERS Sick Leave Legislation

  1. Anonymous on Thu, 31st Jul 2008 5:01 pm

    2. Well, imagine that, it actually crossed their minds that if we’re gonna lose our sick leave, then guess what? we’re gonna use it. . .

    Go figure!

    I don’t intend to leave one hour on the books. I worked for it, and I’m gonna use it ALL!

  2. Anonymous on Fri, 1st Aug 2008 11:58 am

    3. Why should FERS SL be treated differtly from CSRS SL. Give the Postal workers some credit. We’re gonna use it rather than lose it. Even the 75% is a loss, we’re not that dumb!!!!

  3. Anonymous on Fri, 1st Aug 2008 6:49 pm

    4. I thinks its nice to know that the unused sick leave would be used as a credit to add time to our retirement.

  4. window wonder on Sat, 2nd Aug 2008 7:23 am

    5. it has not been passed and approved by pres bush yet. i will continue to call in and burn my sick leave until i retire next year or until this is officially a law

  5. Anonymous on Sat, 2nd Aug 2008 10:29 am

    6. As long as the republicans have enough votes to block it, they will.

  6. Ron Jones on Thu, 7th Aug 2008 12:24 pm

    7. One of the smartest things the house has passed! The senior people on FERS start to use their sick leave as they get close to retirement and they are the experience base we need to have at work, and the young people on FERS have no incentive to save thier sick! Hopefully it will pass?

  7. Anonymous on Mon, 11th Aug 2008 4:45 pm

    8. I WILL LEAVE 0 HOURS OF S/L WHEN I RETIRED.

  8. Sherry on Tue, 12th Aug 2008 11:28 am

    9. Good deal for all of us on FERS. Be happy you may get a little extra for your work ethic! Obviously, a rare thing amongst the Postal masses.

  9. Anonymous on Tue, 19th Aug 2008 9:39 am

    10. I witnessed a case where an employee took every Wednesday off for a year before his actual retirement date, in order to use up his Sick Leave. The worst part of it, was his boss let him. The rest of the office was outraged.

  10. lmc on Wed, 10th Sep 2008 4:09 pm

    11. It’s about time. Hopefully it will get passed.

  11. Anonymous on Wed, 24th Sep 2008 12:06 pm

    12. AS I have already retired and left a substantial amount of days of sick leave behind, will I be entitled to any retroactive payment for my lost sick leave?

  12. Anonymous on Mon, 8th Dec 2008 12:09 pm

    13. Not sure has this passed or not. But my station won’t even pay sick leave now. So we will end up with many hours of sick times behind.