http://kilmer.house.gov/news/press-releases/kilmer-jones-introduce-bipartisan-bill-to-help-shipyard-workers-other-federal-workers-retire-on-time
In 1989, the government changed its retirement system for federal workers. Today, as the first generation under that new system begins to retire, some workers are discovering a bad surprise. Workers who started as temporary employees and then converted to full-time employment are now finding that they may have to work years longer than their peers in order to receive the same retirement benefits.
Some workers at the Puget Sound Naval Shipyard and Fleet Readiness Center East (FRC-East) in North Carolina, and at federal facilities across the country are planning their retirements and finding out that this is their story.
Today, Rep. Derek Kilmer (D-WA) and Representative Walter B. Jones (R, NC-3) introduced The Federal Retirement Fairness Act (H.R. 5389) to fix this problem.
“Folks who work hard for our country deserve a government that has their back,” Rep. Derek Kilmer said. “This bill lets people retire securely and on time. Workers shouldn’t have to put their physical health at risk because some government red tape says they should work longer than their peers.”
“H.R. 5389 rights an injustice to our civil servants by allowing them to ‘buy back’ the time they spent serving in ‘probationary status,’” said Rep. Walter Jones. “To all federal workers who have selflessly served our military and government, like at FRC-East and other bases in North Carolina, it is only right that they receive the accurate benefits for the years that they worked.”
The Federal Retirement Fairness Act would help federal workers the government originally hired as temporary employees who then converted to full-time employees be able to retire on time. Temporary employees don’t receive the same benefits as full-time employees, and they don’t pay into the federal retirement system. The bipartisan bill would let employees pay into the retirement system for the years they worked under temporary status. That way, they can retire with benefits that match the total number of years they worked. Right now, federal employees are offered two choices: retire with a lower level of benefits than their peers, or work later into life.
Catch-up payments aren’t a new idea. The Office of Personnel Management permitted the payments for workers in this situation under the system it phased out in 1989. When the government switched to the new retirement system, the authority for the buy-backs ended. The bill would solve this problem by making the authority a law.
Kilmer Bill Helps Federal Workers Who Started in Temporary Role
Press release issued 3/ 27/ 18
Shared news story on Kilmer's page from the Kitsap Sun
http://kilmer.house.gov/news/in-the-news/kilmer-bill-helps-federal-workers-who-started-in-temporary-role
Allen Hodge will be ready to retire after working at the Puget Sound Naval Shipyard for almost three decades, but a wrinkle in the federal retirement system could force him to work years longer before he's eligible for a full retirement.
Hodge, 54, was hired as a temporary employee at the shipyard's paint shop in 1989. He was converted into a full-time, permanent position five years later after being laid off and furloughed a few times in between.
Today, he is a manager in the same shop where his career began all of those years ago.
Hodge planned to retire in 2020 at the age of 57, after reaching the required 30 years of service for a federal employee to retire with full benefits before reaching the age of 62.
"I've done my time here," he said. "It's time for the changing of the guards."
But when he started to plan for retirement, he learned the years that he worked as a temporary employee didn't count toward it because of a change in the federal system that went into effect the year he was hired at the shipyard.
Under the new system, employees who transitioned into full-time positions could no longer retroactively contribute to their retirements for the time they worked as temporary employees, although they had been able to do so under the previous system.
As a result, Hodge is now witnessing other employees retire who were hired at the shipyard as permanent employees after he started there. He must either work longer or retire early by the government's standards with penalties to his benefits.
"It's hard to keep a good attitude, but as a manager I do it," Hodge said. "We're starting to see more people leave and it's very frustrating."
After seeking out other avenues for assistance without result, Hodge and a few other shipyard workers sought help from U.S. Rep. Derek Kilmer.
After learning about the complexities of Hodge's case, Kilmer said he saw an opportunity to right what he says is a wrong.
"This is an issue that impacts the largest employer in our area — the federal government," Kilmer said. "We know there are a lot of workers in our area that are really affected by this."
The shipyard, which is Bremerton's largest employer, currently has about 13,700 employees, said shipyard spokesman J.C. Mathews.
About 950 shipyard employees are eligible for retirement. Some of those employees could immediately start receiving annuity payments, while others would have to wait some time to receive their full benefits, Mathews said.
Within the next five years, more than 2,300 shipyard employees will be eligible for retirement.
Kilmer introduced the bipartisan Federal Retirement Fairness Act on March 22, which would allow employees to retroactively contribute toward their retirement for time spent as temporary employees. The bill is co-sponsored by U.S. Rep. Walter Jones, R-North Carolina.
When the federal government's new retirement system came into effect, Kilmer said the new rules inexplicably did not give employees the option to contribute for time worked with a temporary status. As members of the first generation of federal workers under the new system get ready to retire, they're starting to notice the impact of that decision.
"Now those employees may be in the position of having to work years longer or making the decision to retire with less," Kilmer said. "That’s why this bill matters."
Under the proposed legislation, employees would be able to make catch-up payments with interest toward their retirement, but they'll have to cover the government's contribution as well to minimize the hit to the federal budget, Kilmer said.
Although that means more money out of pocket up front for federal employees, it will give them the opportunity to be able to receive a full retirement for all of the years they worked for the government.
"I think that part of that would increase the likelihood we could get this passed and move it forward," Kilmer said.
Hodge estimated it could cost him some $50,000 to cover both his retirement contributions and the government's contributions, which would have to come from his retirement savings account and a reduction of contributions into his thrift savings plan.
"It would kill my bank account," Hodge said.
While the upfront cost would come with a hefty price tag if the bill is passed, Hodge said the opportunity to retire with full benefits would be worth it as well as the chance to finally be able to definitively plan for his future.
"How can I plan my life for retirement when I don't even know when I can retire?" Hodge said.
WORLD NEWS HEADLINES FROM THE UN NEWS CENTER & OTHER SOURCES
Their 15-year mission a success, UN peacekeepers depart a stable and grateful Liberia.
The United Nations peacekeeping mission in Liberia will formally cease operations on Friday after aiding the West African nation’s transition from ravaging civil war to a hopeful era of peace.
https://news.un.org/en/story/2018/03/1006221
Yemen: UN Security Council condemns Houthi missile attacks targeting Saudi cities
Reiterating the need for warring parties in Yemen to resume dialogue, the Security Council has condemned the latest missile attacks by the Houthi rebels targeting several cities of Saudi Arabia, including its capital, Riyadh.
https://news.un.org/en/story/2018/03/1006211
Unrealistic demands on UN peacekeeping costing lives and credibility – Guterres
As the United Nations continues to send peacekeepers to difficult or war-torn environments like Mali and the Democratic Republic of the Congo, those ‘blue helmets’ will need more and better coordinated support among the actors who authorize and deploy them, Secretary-General António Guterres said on Wednesday.
https://news.un.org/en/story/2018/03/1006181
UN receives nearly $1 billion from Saudi Arabia and UAE for humanitarian response to Yemen crisis
Ahead of the upcoming international fundraising conference for Yemen, the United Nations has received nearly $1 billion contributions from Saudi Arabia and the United Arab Emirates (UAE) and urged other donors to follow suit and help tackle the world’s worst humanitarian crisis there.
https://news.un.org/en/story/2018/03/1006131
IN THIS WEEK'S EDITION
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My little Medicare rebellion
