AFGE Statement on Federal Employee Retirement Hearing
WASHINGTON, Jan. 25, 2012 – American Federation of Government Employees National President John Gage today issued the following statement in response to the congressional hearing on federal employees’ retirement security before the House Oversight and Government Reform subcommittee on the federal workforce, U.S. Postal Service and labor policy:
“Congress created the Federal Employees Retirement System in the mid-1980s to mirror leading private sector practices. The vast majority of a federal employee’s retirement income comes from personal investments in the government’s 401(k) plan and mandatory payments into Social Security. Federal employees also receive a very modest pension that provides an average of $939 a month when they retire. As NARFE Director of Retirement Benefit Services David Snell so eloquently stated in his testimony before the subcommittee, ‘federal employees are not retiring rich.’ Read more
Legislative Attacks On Federal Retirement Compensation Is Based On Misguided Assumptions
STATEMENT BY DAVID B. SNELL
DIRECTOR OF RETIREMENT BENEFITS SERVICES
NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION
ON BEHALF OF THE MEMBER ORGANIZATIONS OF THE FEDERAL-POSTAL COALITION
note: Full testimony below
Unfortunately, recent legislative proposals have sought to unravel this basic bargain, unfairly singling out middle class federal employees for disproportionate sacrifice. Last month, the House passed legislation (H.R. 3630) that would use cuts to federal retirement compensation of middle class federal and postal workers to pay for a payroll tax holiday. It would offset over half of the cost of the holiday ($65 billion over ten years out of a $121 billion cost3) on the backs of less than 2 percent of the nation’s workforce.4 This would add financial strain on top of the prospect of job loss through the sequestration process mandated by the debt ceiling agreement and the more than $60 billion that the federal government has already saved by freezing federal employee pay for the past two years, which itself has permanently diminished long-term annuities for recent retirees.
Attacks Based on Misguided Assumptions
The legislative attacks on federal employee retirement compensation seem to derive from: (i) the misguided assumption that most private sector 401(k) retirement plans provide adequate retirement income security – they do not; (ii) the related assumption that federal retirement benefits are overly generous – they are not; and (iii) the questionable opinion that instead of pursuing policies that would improve private sector retirement income security, Congress should pursue policies that diminish federal retirement income security – it should not. Read more
Rep. Lynch: Hearing On Reducing Retirement Benefits is Really Attack On Federal Workers
Rep. Dennis Ross, R-Fla., on Wednesday introduced a bill that would increase how much federal employees pay toward their retirement and steeply reduce pensions for new employees.
HR 3813, the Securing Annuities for Federal Employees Act, would raise contributions for current Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) employees by 0.5 percentage points per year for three years, beginning in 2013. This would make FERS employees contribute 2.3 percent of each paycheck toward their pensions, and require an 8.5 percent contribution from CSRS employees.
The bill would eliminate the so-called FERS annuity supplement for new retirees beginning in 2013, except for employees facing mandatory retirement such as air traffic controllers. Today, FERS employees who retire before reaching age 62 receive a supplement equal to the Social Security benefit they will be eligible for once they reach age 62. Read more
Congressman Ross To Hold Hearing On Reforming Federal Pensions
What’s Good for the Goose is Good for the Gander
Chairman Ross to Hold Hearing on Ending Pension Privileges for Members of Congress and Reforming Federal Pensions to Protect the Taxpayer
Washington, Jan 20 -
Lakeland, FL – Congressman Dennis A. Ross (R-FL) today announced he would hold a hearing on reforming Congressional pensions and ensuring that Members of Congress are treated no differently than the rest of the federal workforce. In addition, the hearing will explore options in reforming the entire federal pension system, Congress included, to bring it more in line with the private sector workforce. Read more
Retired Postal Worker Fights To Get More than Half Of Pension
OPM backlog affecting recent postal retiree.
Mt. Vernon, OH –
A Mt. Vernon veteran who devoted three decades to the U.S. Postal Service as a mail carrier says he is now receiving only about half his pension check from the federal government.
Jon Minard served in Vietnam, losing an eye to a grenade, before returning home and working at the U.S.P.S. delivering mail for thirty years. He worked in Dublin before eventually moving to Mt. Vernon.
When Minard retired last August, he expected his pension check to be there. Instead, he says he is only receiving a little more than half of the $2500 he is owed.
Minard says it is a frustrating chapter to an agency he had always been able to rely on.
source: Veteran Fights Federal Government For Pension Check | NBC 4i.
Postal Employees Should Delay Retirement Until Passage of Postal Reform Bill
All APWU represented employees who are retirement eligible should consider delaying their retirement until the Postal Reform efforts have been concluded. Each of the legislative initiatives (Issa – Carper – Obama) includes the return of the $7 billion overpayment with authorization to use it for retirement incentives. Retroactivity is probably unachievable so to secure eligibility, employees should protect themselves. If the $7 billion is returned, postal management has an incentive to replace existing employees with new hires whose wages will be significantly less. Read more
USPS Statement, White Papers And Talking Points On Legislative Proposals
USPS has published the following Statements, White Papers and Talking Points on eliminating layoff protection, administering its own retirement and health programs
While the Postal Service remains the cornerstone of a $1 trillion industry and will continue to be vital to the U.S. economy, the Postal Service will be insolvent next month due to significant declines in First-Class Mail volume, the effects of a Congressional mandate to prefund retiree health benefits and increases in network costs, wages and benefits. Read more
OPM Memo: Recredit of Sick Leave for Re-employed FERS Retirees
The following is a Memo released by the Office Of Personnel Management (OPM)
Recredit of Sick Leave for Re-employed FERS Annuitants Who Retire Between October 28, 2009, and December 31, 2013
The U.S. Office of Personnel Management has been asked whether employees covered by the Federal Employees Retirement System (FERS) who retire between October 28, 2009, and December 31, 2013, with 50 percent of their sick leave having been credited toward their FERS annuity computation, could have the remaining 50 percent of their sick leave recredited to their sick leave account if they return to Federal service as reemployed annuitants. The answer is yes. Agencies should recredit reemployed annuitants the 50 percent of sick leave that was not used in their FERS annuity computation. For employees who retire or die in service on or after January 1, 2014, all unused sick leave to the employees’ credit will be creditable for annuity computation purposes. Further, for FERS employees who retire on or after January 1, 2014, 100 percent of their sick leave will be used in the annuity computation, consequently, no sick leave will remain for recredit should the retirees later return to Federal service.
Agencies must take action to identify FERS employees who initially retired on or after October 28, 2009, and who have since returned to Federal service as reemployed annuitants, to ensure that the employees have received recredit of the 50 percent of sick leave that was not used in the computation of their annuities.
Background
Section 1901 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84, October 28, 2009) amended 5 U.S.C. 8415 to provide that employees covered by FERS who retire on an immediate annuity, or die while in active employment leaving a survivor or survivors, between October 28, 2009 (the date of enactment of the statute), and December 31, 2013, will receive credit for 50 percent of their unused sick leave towards their total creditable service for annuity computation purposes.
Additional Information
For additional information, please refer to Benefits Administration Letter Number 11- 102, Guidance on National Defense Authorization Act for Fiscal Year 2010 Provisions on Sick Leave for FERS Retirees.
Agency Human Resources (HR) Directors may also contact their assigned OPM Human Capital Officers. Reemployed annuitants should contact their agency human resources or benefits offices for assistance.
From: Charles D. Grimes III
Acting Associate Director
USPS Offering $20,000 Retirement Incentive To Some Management Employees
PMG ANNOUNCES REDESIGNED POSTAL SERVICE
VOLUNTARY EARLY RETIREMENT, INCENTIVE PROGRAMS OFFERED
Postmaster General Pat Donahoe today announced a newly redesigned Postal Service, one that is better positioned for growth, reflects further alignment within the organization to achieve core business strategies and, when fully implemented by March, 2012, will eliminate almost $750 million in costs to the organization.
“Over the past 8 weeks, we have been taking a careful look at our internal structure — the way we position our people — and determining the best way to align the organization to succeed in a more competitive world,” said Donahoe. “We also have been making some tough but necessary decisions that will enable us to better meet the needs of our employees, our customers and the American public.”
Donahoe said a strong plan has been developed that will result in a leaner, less bureaucratic structure that creates greater efficiencies among managerial and administrative functions.
The announced redesign reduces administrative layers and achieves a 20 percent reduction in authorized administrative office complement and Postal Career Executive Service (PCES) positions.
Seven districts will be closing. A general announcement identifying the districts will be made March 24, after employees in those districts are notified.
Voluntary Early Retirement (VER) and financial incentive programs will be offered to eligible career non-bargaining employees in targeted groups at Headquarters, Headquarters-related Field Units, Area Offices and Customer Service District Offices (Administrative).
- The incentive program is $20,000 and is offered on a first come, first-served basis to eligible employees who choose to leave on the May 31, 2011, effective date through a VER, optional retirement or voluntary resignation. The incentive will be paid in two equal payments of $10,000 distributed in November 2011 and November 2012.
- To be eligible for the incentive, employees must begin the optional retirement process or submit voluntary resignation by the deadline of April 25, 2011. The same date, April 25, also is the irrevocability date for employees who accept the VER offer.
- Disability retirements and Federal Transfers are not eligible for the incentive. Employees in a probationary status as of March 23, 2011, are not eligible.
- Employees already in progress as of March 23, 2011, for optional retirement or voluntary resignation with a scheduled retirement or separation date on or before May 31, 2011, will be permitted to retire or separate on the scheduled date and be eligible for the incentive.
- Further details of the VER and incentive programs will be available on the Organizational Change website.
Donahoe said employees will be given comprehensive information to help them make the best decisions about their future. “I know change can be challenging,” he said. “I thank all of our employees for their continued dedication and focus on continuing to provide high levels of customer service while the organizational redesign proceeds.”
Efforts in the coming weeks and months will help the Postal Service become a leaner, faster and smarter organization, Donahoe said. “The redesign will improve our financial situation, ensure that we are better able to compete for customers, and provide greater value and service to the American public.”
source: USPS Press Release
USPS Organization Changes FAQs 2011
OPM to Increase New Retirees Temporary Annuity Payments
Office of Personnel Management Director John Berry pledged Wednesday to increase new retirees’ interim annuity payments — even if it means some will temporarily be overpaid.
Currently, more than 38,000 recent retirees are receiving interim annuities — which are sometimes as low as half of what they are owed — for months while overwhelmed OPM employees calculate the correct amount.
Even when OPM has all necessary information on hand the day someone retires, that retiree usually gets about 90 percent of what he is owed. If the retiree’s employing agency sends incomplete information to OPM, or if there are other conditions that complicate the annuity calculation — such as if the retiree also receives a military pension, has excessive leave without pay or missing service, or worked part time for a portion of his career — that could lower the amount of the interim annuity while OPM straightens the file out.
Berry and Zielinski want OPM to not be as stingy when it calculates interim annuities, even if it means OPM overpays a few retirees. Berry said anyone who is overpaid will have to repay the balance to OPM.
The maximized interim payments will be a stopgap solution to lessen the burden on retirees while OPM figures out a more permanent way to eliminate the backlog. OPM plans to hire 40 new employees next year to help calculate annuities.
full story: Federal Times