Statements on Introduced Bills and Joint Resolutions
Floor Speech
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS -- (Senate - March 18, 2009)
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By Ms. COLLINS (for herself, Mr. Voinovich, and Mr. Kohl):
S. 629. A bill to facilitate the part-time reemployment of annuitants, and for other purposes; to the Committee on Homeland Security and Governmental Affairs.
Ms. COLLINS. Mr. President, I rise to introduce a bill with my colleagues Senators Voinovich and Kohl that will strengthen the Federal Government's ability to serve the public at a time when Federal agencies face a wave of retirement of highly experienced employees.
When we think about the coming demographic shock of millions of Baby Boomers reaching retirement age, we usually focus on the cash-flow implications for the Social Security and Medicare programs. But their aging will also have a profound effect on the Federal workforce.
On average, retirements from the Federal workforce have exceeded 50,000 a year for a decade. The numbers will certainly rise in the near future. The Office of Personnel Management calculates that 60 percent of the current Federal workforce, whose civilian component approaches three million people, will be eligible to retire during the coming 10 years.
Federal agencies, which already must hire more than a quarter-million new employees each year, will need to work hard to replace those retirees, as the private sector and state and local governments will be facing the same problem and competing for qualified replacements.
The Baby Boom retirement wave will have another impact. It will cause a sudden acceleration in the loss of accumulated skills and mentoring capabilities that experienced workers possess.
Research has repeatedly shown that, in general, older workers equal or outperform younger workers in organizational knowledge, ability to work independently, commitment, productivity, flexibility, and mentoring ability. Making good use of their talents is, therefore, not charity. It is common sense and sound management.
Federal agencies recognize the value of older workers, as witnessed by the fact that nearly 4,500 retirees have been allowed to return to full-time work on a waiver basis.
Agencies could make use of even more Federal annuitants for short-term projects or part-time work, but for a disincentive in current law.
Current law mandates that annuitants who return to work for the Federal Government must have their salary reduced by the amount of their annuity during the period of reemployment. The bill I introduce today with Senators Voinovich and Kohl would provide a limited but vital measure of relief to agencies who could benefit from the skills and knowledge of Federal retirees. It provides an opportunity for Federal agencies to reemploy retirees without requiring them to take pay cuts based on their annuity payment.
This simple but powerful reform will provide some much needed hiring flexibilities for agencies, especially given the expertise the Federal Government will need to effectively implement the American Recovery and Reinvestment Act of 2009.
The Homeland Security and Governmental Affairs Committee held a hearing earlier this month where we discussed how oversight entities will meet their responsibilities to ensure that stimulus funds are spent effectively. Acting Comptroller General Gene Dodaro indicated that the reemployment of annuitants is an essential authority that the Government Accountability Office uses when circumstances arise that require rapid staffing increases. Using statutory authority possessed by GAO, the agency is able to attract and hire back their annuitants without offsetting their pay by the amount of their pension.
Most executive branch agencies do not enjoy similar flexibility as GAO. Instead, current law requires these agencies to offset an annuitant's salary, unless the agency can first obtain a waiver from OPM. This waiver will be granted if the agency demonstrates to OPM that only a particular annuitant is qualified to fill a particular need and the annuitant will only return if his or her salary is not offset. The waiver process is administratively cumbersome, and often prevents agencies from even considering a returning annuitant for an important position.
Whether at GAO or in our Government's Inspectors General offices, experienced, qualified former employees--with institutional knowledge--could play an important role in oversight of stimulus spending. This point was recently made by both Acting Comptroller General Dodaro and the Chair of the Council of Inspectors General on Integrity and Efficiency, CIGIE, Phyllis Fong, in testimony before the Homeland Security and Governmental Affairs Committee.
Inspectors General will have to quickly hire experienced auditors and investigators to ensure critical oversight of stimulus spending. This legislation will allow IG offices to bring back valuable and experienced employees to the Federal Government to ensure aggressive oversight, enhanced transparency, and accountability for taxpayer dollars.
Ensuring an experienced acquisition workforce is available to oversee stimulus spending is just as critical. The government spent $532 billion on contracts last year--a 140 percent increase from 2001 to 2008. At the same time, the Federal Government entered the 21st century with 22 percent fewer federal civilian acquisition personnel than it had at the start of the 1990s. As early as 2012, 50 percent of this workforce will be eligible to retire. This means that as our contract spending continues to increase dramatically, our contracting workforce continues to shrink. This legislation will allow agencies to bring in experienced acquisition personnel at a time when they are desperately needed--whether to ensure that stimulus funds are spent wisely or to help administer over $500 billion in government contract spending.
Several organizations have endorsed the reforms in our bill, including the National Active and Retired Federal Employees Association, the Partnership for Public Service, and the Government Managers Coalition.
I would also note two important points about the bill.
First, it will not materially affect the necessary flow of younger workers into Federal agencies. The bill contemplates reemployment for part-time or project work of not more than 520 hours in the first six months following the start of annuity payments, not more than 1,040 hours in any 12-month period, and not more than 3,120 hours total for the annuitant's lifetime. In terms of eight-hour days, those figures are equivalent to 65, 130, and 390 days, respectively.
These limits will give agencies flexibility in assigning retirees to limited-time or limited-scope projects, including mentoring and collaboration, without evading or undermining the waiver requirement for substantial or full-time employment of annuitants.
I would also note that this bill gives no cause for concern about financial impact. Reemployed annuitants would be performing work that the agencies needed to do in any case, but would not require any additional contributions to pension or savings plans. Meanwhile, their retiree health and life insurance benefits would be unaffected by their part-time work. Even without making any allowance for the positive effects of their organizational knowledge, commitment, productivity, and mentoring potential, their reemployment is likely to produce net savings.
This measure offers benefits for Federal agencies, for Federal retirees who would welcome the opportunity to perfor
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