NTEU: Personnel Needs Can be Met by Greater Use of Flexibilities and Adequate Agency Funding

Press Release May 20, 2008

Washington, D.C.—While it does not oppose the judicious reemployment of federal retirees, the nation’s largest independent union of federal employees today cautioned that pending legislation could significantly expand its use by government agencies without adequate standards and open the door to potential abuse.

The National Treasury Employees Union (NTEU) suggested the more useful approach would be to focus on improving the federal workplace so it is easier to recruit and retain the talented, committed employees so vital to serving the public.

NTEU expressed those views in testimony before the House Oversight and Government Reform Subcommittee on the Federal Workforce, Postal Service and the District of Columbia. The subcommittee is examining aspects of H.R. 3579, which would facilitate the temporary reemployment of federal annuitants.

“The real solution to current and future personnel concerns is to focus now on the recruitment and retention of talented employees,” the union said, adding that “fundamental to this process is providing fair pay, adequate benefits, job security and rewarding work.”

The union said it “strongly supports” expansion throughout the federal workforce of a variety of current flexibilities available to agencies that have been found “to have real impact” on recruitment and retention, especially of older workers, including part-time work, flexible schedules and flexiplace options. Significantly increased use of these flexibilities likely would, in fact, make moot the need for legislation on this issue.

In particular, NTEU said, it supports H.R. 2780, which would ensure there is no penalty in terms of pension calculation if an employee moves to a part-time schedule near retirement; H.R. 5550, introduced by Subcommittee Chairman Rep. Danny Davis (D-Ill.), that would allow the Federal Employees Health Benefits Program (FEHBP) to cover dependent children to age 25; implementation of the 1990 Federal Employees Pay Comparability Act; and approval of H.R. 3892, also advanced by Chairman Davis, which would reinstate federal sector labor-management partnerships.

NTEU expressed reservations about certain aspects of H.R. 3579, including allowing agencies the discretion—not subject to Office of Personnel Management (OPM) approval authority—to issue dual compensation waivers. At present, agencies are permitted to waive statutory provisions preventing payment of a salary at the same time pension benefits are being received only under certain circumstances and with OPM approval.

In addition to permitting such agency discretion, the proposed legislation does not set forth any standards that must be met in order to reemploy annuitants without pension offsets, NTEU testified.

“We are concerned that the proposal under consideration, while certainly intended to be used judiciously, could easily be subject to abuse, especially due to the financial incentives it will provide agencies, the lack of standards and the elimination of OPM approval,” the union said.

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