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Washington, D.C.—The House Government Reform Committee has taken “a positive step forward” by its approval of legislation that would allow federal employees age 50 and over to raise their Thrift Savings Plan (TSP) contributions to the same level as private sector 401(k) retirement plans, the leader of the nation’s largest independent union of federal workers said today.

President Colleen M. Kelley of the National Treasury Employees Union (NTEU) said committee mark-up of H.R. 3340, legislation introduced by Rep. Connie Morella (R-MD), “is a sign of the growing recognition in Congress of the kinds of steps we must take to make the government a more competitive employer.” She urged swift congressional approval of the bill.

The Morella legislation would permit federal workers age 50 and over to contribute an additional $1,000 to their TSP accounts this year, a change that would raise the contribution limit for this age group in 2002 to $12,000. That would mirror an earlier change affecting the contribution limit to private sector 401(k) plans by workers age 50 and over.

Under current law, employees age 50 and over are permitted this year to contribute a maximum of $11,000 to their TSP accounts.

“This kind of legislation has a tangible impact on federal workers,” President Kelley said, “helping to secure their financial needs in retirement.”

And perhaps as important, she added, “it sends a message not just to those presently serving the public as members of the federal workforce but to those who are considering public service that the government places real value on their contributions.”

NTEU is the largest independent federal union, representing some 150,000 employees in 25 agencies and departments.