Congress Approves Partial Retirement Plan
Retirement-eligible federal employees will be allowed to work part-time under a bill passed by Congress on Friday. Lawmakers also agreed to drop a provision that called for a federal pension contribution hike that would help pay for a one-year extension of the Stafford student loan interest rate.
The bill passed in a 373-52 vote in the House and in a 74-19 vote in the Senate. Under the bill, federal employees approaching retirement can work part time while receiving partial annuities and earning additional retirement benefits proportional to the amount of time worked.
“Phased retirement allows federal employees to continue to contribute their talent and experience to their agency’s mission and saves taxpayer dollars at the same time,” Rep. Darrell Issa, R-Calif., who previously introduced the plan in the House Oversight and Government Reform Committee, said.
Issa called the passage of the bill a “win-win” for both federal employees and taxpayers. The White House has previously estimated that a phased retirement plan could save the Obama Administration $720 million in the next decade.
National Treasury Employees Union President Colleen Kelley also agreed that the plan created a sensible solution for federal employees approaching the end of their careers, but not yet ready to retire.
“Ultimately, the phased retirement option will benefit federal employees, agencies and the American people they serve,” Kelley said in a statement.
Posted in General News