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Washington, D.C.—New legislation that would allow retiring federal employees and those who leave federal service to deposit money received from unused annual leave into their Thrift Savings Plan (TSP) account mirrors a proposal made by the National Treasury Employees Union (NTEU) last fall.

“This is a sound proposal that allows federal employees to add to their retirement accounts, boosting their savings and giving them an option for investing a lump sum of money they may receive when leaving federal service,” NTEU President Colleen M. Kelley said.

The bill, H.R. 4865, was introduced by Rep. Stephen Lynch (D-Mass.), chairman, and Rep. Jason Chaffetz (R-Utah), ranking member, of the House Oversight and Government Reform Subcommittee on the Federal Workforce.

“With this bipartisan legislation Representatives Lynch and Chaffetz not only give federal employees the chance to move their lump-sum payment into their TSP account but also help fulfill a goal established by President Obama last year,” Kelley said.

In a weekly radio address in September, President Obama proposed a variety of incentives for private sector employees to increase their savings including the ability for them to deposit lump-sum payments received when they left their positions into 401(k) accounts. NTEU immediately began exploring legislation to make this opportunity available for federal employees.

In testimony to Chairman Lynch’s subcommittee in November, President Kelley suggested similar legislation to the lawmakers. The Federal Employees and Uniformed Services Retirement Equity Act of 2010 accomplishes that goal.

“Many federal employees carry over the maximum amount of 240 hours of annual leave on a yearly basis, and this legislation could significantly boost their TSP accounts,” President Kelley said.

“The TSP is an important financial tool for federal employees and retirees,” she added, “and I applaud Rep. Lynch and Rep. Chaffetz for their attention to this matter.”

NTEU is the largest independent federal union, representing 150,000 employees in 31 agencies and departments.