House Passes FERS Sick-Leave Bill

The House of Representatives passed a bill July 30 that would grant postal workers and other federal employees covered by FERS (Federal Employees Retirement System) credit for unused sick leave when calculating their retirement annuities. Employees covered by CSRS (Civil Service Retirement System) already receive credit for unused sick leave.

The measure, introduced by House Government Reform Committee Chairman Henry Waxman (D-CA), was included in a larger bill, the Family Smoking Prevention and Tobacco Control Act (H.R. 1108), which Waxman also authored. The bill is similar to a bill (H.R. 5573), which was introduced earlier this year by Rep. James Moran (D-VA).

Under the provision (Title IV, Sec. 407), federal employees who retire within three years from the date of enactment would receive credit for 75 percent of unused sick leave; employees who retire more than three years after enactment of the legislation would get full credit, similar to CSRS employees. Federal employees hired after 1983 are covered by FERS; most of those hired in 1983 and before are covered by CSRS.

“This is an important bill, which we enthusiastically support,” said APWU President William Burrus. “It will finally give FERS-covered employees a benefit they have earned.”

The bill, which President Bush has threatened to veto, passed 326-102, giving it a veto-proof margin in the House. To see how your legislator voted, click here.

The tobacco bill now moves to the Senate, where it may be considered in September, after Congress returns from its summer recess. However, the Senate bill (S. 625) does not include the FERS sick-leave provisions. The fate of the FERS language may ultimately be decided in a House-Senate conference committee, if the Senate passes S. 625.

Title IV of H.R. 1108 also includes provisions of the Thrift Savings Plan Enhancement Act (H.R. 6500), which would automatically enroll new employees in the Thrift Savings Plan; allow the TSP Board to designate a fund other than the G Fund as the default investment fund; establish a Roth IRA option, and give the TSP Board authority to add additional, self-directed investment options.

The FERS and TSP language are linked for budgetary purposes. The Congressional Budget Office estimates that H.R. 6500 would increase federal revenue by approximately $1.3 billion over the next 10 years, and this money could be used to offset the increased costs associated with FERS sick leave.