Government could reap big savings through partial retirement plan
The Congressional Budget Office estimates that allowing federal employees to continue working part-time as they phase into retirement could save taxpayers hundreds of millions of dollars.
- By FederalSoup Staff
- May 22, 2012
The Congressional Budget Office estimates that allowing federal employees to continue working part-time as they phase into retirement could save taxpayers over $400 million within 10 years, Government Executive
Under a proposed House bill, federal employees would phase in their retirement annuities for three years prior to full retirement. The bill, which was unanimously approved in April by House Oversight and Government Reform Committee, would allow eligible employees to work part time and collect a partial salary and a partial retirement annuity, and roll unused annual leave into their Thrift Savings Plan accounts, the report notes.
The bill’s sponsor, Rep. Darrell Issa (R-Calif.) said the savings would come as a result of agencies replacing fewer retirees with part-time employees.
Union representatives as well as a ranking Democratic minority member have expressed support for the measure, but want assurance that the potential savings from the program would not be used for programs unrelated to federal workers.