Federal Retirement Reform Act of 2009
Floor Speech
FEDERAL RETIREMENT REFORM ACT OF 2009 -- (House of Representatives - April 01, 2009)
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Mr. LYNCH. I thank the gentleman for his kind words.
Mr. Speaker, I rise in support of both Chairman Towns, the gentleman from Brooklyn, and also Mr. Skelton from Missouri in their endorsement of H.R. 1804, their sponsorship as well. This is the Federal Retirement Reform Act that includes enhancements to the Thrift Savings Plan as well as to other Federal retirement programs. And I do so because I am in agreement with both of those gentlemen that the TSP's offerings to Federal employees must finally be allowed to catch up to private sector 401(k) plans.
Given the Thrift Savings Plan's integral role in providing retirement income security for Federal employees, it is time for Congress to adopt and extend the auto enrollment plan to TSP participants. This legislation would allow the Thrift Savings Plan to offer a Roth option. And both sides have talked about the impact of that.
I think it is important to point out that by having Federal employees using this Roth option, it is calculated that we will bring in approximately $2.2 billion in new taxes, new tax revenues from Federal contributions from Federal employees over the next 10 years.
This bill, unlike a lot of other bills on this floor, basically pays for itself.
Mr. Speaker, in my role as chairman of the Federal Workforce, Postal Service, and the District of Columbia Subcommittee, I believe that the Federal Government must ensure that its benefits allow it to retain and recruit the best and the brightest. Toward that end, I authored H.R. 1263, legislation that would make improvements to the TSP, as well as to the Federal retirement programs. I have been pleased to work with both Chairman Towns and former Chairman Waxman on the issue, as well as my friend and colleague, Jim Moran from Virginia.
This bill facilitates amending the Federal Employees Retirement System to provide employees with retirement credit for unused sick leave. Federal executives, managers and employees have called for crediting unused sick leave in the same way that the Civil Service Retirement System treats unused sick leave.
Additionally, this legislation fixes a CSRS annuity calculation problem for those employees who wish to phase down to part-time work at the end of their Federal careers. That is an important option given the aging demographics of our Federal workforce.
At a time of an overall aging workforce in America, and a particularly aging Federal workforce, the government as an employer must take the lead in addressing these workplace realities.
I conclude my remarks by stating that I give my full support to these civil service provisions. On behalf of the National Active and Retired Federal Employees Association, NARFE, I would also like to make it clear that this new obligation--this is very important--this new obligation does not result in an ``unfunded obligation'' for the Civil Service Retirement and Disability Fund as current law provides that new payments are fully funded. And I am submitting an additional clarification to that effect as part of the Record.
Mr. Speaker, I would like to expand on a provision contained in H.R. 1804, the ``Federal Retirement Reform Act of 2009,'' which makes improvements to the Thrift Savings Plan (TSP) and to the federal retirement programs. By amending the Federal Employees Retirement System (FERS) to credit unused sick leave for retirement purposes, the measure will modestly increase certain federal employees' retirement benefits. Thus, this bill will result in additional benefits, though small, from the Civil Service Retirement and Disability Trust Fund (CSRDF). However, on behalf of the National Active and Retired Federal Employees Association (NARFE), I want to make it clear that this new obligation does not result in an ``unfunded obligation'' of the CSRDF as current law expressly provides that new payments from the CSRDF are fully funded. Since the creation of FERS in the 1980's, Section 8348f of Title 5 of the United States Code has ensured the integrity of the CSRDF by automatically setting-aside funds to cover the cost of any new benefits. Additionally, H.R. 1804 results in sufficient savings to cover the cost of this modest benefit increase under FERS.
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