H.R.1522 - Federal Retirement Fairness Act (119th Congress)
Summary
H.R. 1522, the Federal Retirement Fairness Act, aims to amend Title 5 of the United States Code to allow civilian service in temporary positions after December 31, 1988, to be creditable under the Federal Employees Retirement System (FERS). This bill seeks to rectify what some perceive as an inequity in the current system. It ensures that temporary employees receive retirement benefits for their service, similar to permanent employees.
The bill mandates that the Office of Personnel Management (OPM) notify relevant agency officials about the changes. OPM is also tasked with creating regulations to implement the Act.
The bill is applicable to current employees and members on or after the date of enactment.
Expected Effects
The primary effect of this bill would be to expand retirement benefits to temporary federal employees who served after 1988. This change would allow these employees to accrue retirement benefits for their time in temporary positions, increasing their overall retirement income.
This could lead to increased costs for the federal government due to higher retirement payouts. It may also incentivize longer tenures for temporary employees seeking to maximize their retirement benefits.
Finally, it would require the OPM to develop and implement new regulations and notification procedures.
Potential Benefits
- Increased Retirement Income: Temporary employees would receive credit for their service, leading to higher retirement benefits.
- Fairness and Equity: Addresses the perceived inequity in the current system by treating temporary and permanent employees more similarly regarding retirement benefits.
- Improved Employee Morale: Recognizing the contributions of temporary employees can boost morale and job satisfaction.
- Potential for Increased Retention: Offering retirement benefits may encourage temporary employees to remain in federal service longer.
- Attractiveness of Federal Employment: Makes federal employment more attractive to potential temporary workers.
Most Benefited Areas:
Potential Disadvantages
- Increased Costs: The federal government would incur higher costs due to increased retirement payouts.
- Administrative Burden: The Office of Personnel Management (OPM) would need to develop and implement new regulations and notification procedures, increasing their workload.
- Potential for Abuse: There might be potential for individuals to exploit the system to gain retirement benefits without substantial contributions.
- Complexity: The changes could add complexity to the existing retirement system, making it more difficult for employees to understand their benefits.
- Unfunded Liability: The bill could increase the unfunded liability of the federal retirement system.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to provide retirement benefits to a broader range of federal employees. The Constitution grants Congress the power to make laws necessary and proper for carrying out its enumerated powers, including establishing a retirement system for federal employees.
Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. This bill falls under the 'general welfare' provision.
There are no apparent constitutional conflicts, as the bill does not infringe upon individual rights or freedoms guaranteed by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).