Retirement Roundup

Alex Parker's Pay & Benefits Watch column highlights several pieces of legislation affecting federal employees that Congress left unresolved at the end of July. Meanwhile, Rep. Jim Moran, D-Va., on Wednesday sent a letter to House conferees participating in negotiations regarding the fiscal 2010 Defense Authorization bill (H.R. 2647), urging them to retain the federal employee provisions included in the House-passed version of the bill.

Specifically, the provisions would provide annuity credit for unused sick leave for employees in the Federal Employees Retirement System, bringing the system's benefits in line with the older Civil Service Retirement System. The legislation also would change how retirement annuities are calculated for Civil Service Retirement System employees to make part-time work a more attractive option for those nearing retirement, authorize the re-deposit of retirement funds under the FERS system for employees who return to federal service and give civilian employees outside the continental United States locality pay rather than annual cost-of-living increases.

Passage of these provisions would introduce fairly drastic reforms to the federal retirement system, and would continue to give the government a competitive edge over private sector retirement plans, including those at major technology companies. The provisions also would help the government retain the knowledge of workers who are at or near retirement age, an issue deemed critical as large number of federal workers inch closer to retirement.

On the flipside, though, how do these benefits score in recruiting and retaining the younger workforce, much of which values nontraditional benefits over traditional benefits like retirement?