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Washington, D.C - NTEU National President Colleen M. Kelley was on the stage for President Bill Clinton's signing of a bill today that will provide federal employees and retirees an opportunity to purchase long-term care insurance at group rates. The measure will also allow federal agencies to take steps to correct the placement of some employees in the wrong retirement system.
"For many years, NTEU has been relentless in its pursuit to secure for federal employees and retirees the chance to purchase long-term care insurance at group rates. Today, our commitment, hard work and determination paid off. The invitation to be a part of this historic signing is a recognition of the efforts of NTEU and its members," said Kelley.
The NTEU leader said the availability of long-term care insurance at group rates will be a tremendous benefit for federal employees and is one more tool to help the government recruit and retain the skilled workers it needs.
Under the new law, the Office of Personnel Management (OPM) will negotiate premiums and benefits with one or more insurance carriers under long-term contracts and then provide information to federal employees for them to choose whether or not to purchase the coverage. The hope is that the discounts under the group rate structure would be as much as 20 percent below commercial rates. Federal employees will be able to participate in the program in fiscal 2002. It will also extend coverage to federal civilian and military retirees and their families.
Kelley said the retirement correction provision of the new law is "a matter of fairness" for federal workers mistakenly placed in the wrong retirement system.
Federal employees improperly placed by their agencies in the Civil Service Retirement System (CSRS) will have the opportunity to elect either to switch to the CSRS-Offset program or to the Federal Employees Retirement System (FERS). CSRS-Offset is a program that includes features of both CSRS and FERS.
Those employees who choose FERS will be given a period of time in which to make up back contributions to the federal Thrift Savings Plan (TSP), which is an integral part of the newer FERS system. Those funds would generate matching government contributions to their TSP accounts, as well as back earnings and interests on both.