Federal Retirement Fairness Act
The Federal Retirement Fairness Act would broaden when civilian service in temporary federal positions can count toward the Federal Employees Retirement System (FERS) retirement computations. Specifically, it removes the current limit that only pre-1989 temporary service could be credited, allowing temporary service performed after December 31, 1988 to be creditable if the employee (or Member) makes a required deposit. The bill applies to any federal employee (including temporary United States Postal Service employees) and Members as of the date of enactment. It also requires the Office of Personnel Management (OPM) to notify agency officials and eligible employees about deposit opportunities and to issue regulations to implement these changes. In short, eligible federal workers who had temporary service after 1988 could elect to make a deposit to have that time counted toward their retirement annuity, potentially increasing future benefits.
Key Points
- 1Amends 5 U.S.C. 8411(3) to strike the phrase limiting creditable service to “performed before January 1, 1989,” thereby allowing post-1988 temporary service to be creditable.
- 2Applies to individuals who are federal employees (including USPS temporary employees) and Members on or after the bill’s enactment date.
- 3Requires OPM to notify Chief Human Capital Officers and other appropriate officials so they can inform eligible employees about the deposit option for service credit.
- 4Requires OPM to promulgate regulations to implement the Act and the related amendments.
- 5The mechanism for credit remains through a “deposit” (i.e., a contribution by the employee to receive credit for the service), with the notification indicating eligibility to make such a deposit.