Home |
News & Commentary | President Signs Bill Giving FERS Sick Leave Credit Toward Retirement, Ending NSPS
President Signs Bill Giving FERS Sick Leave Credit Toward Retirement, Ending NSPS
October 29, 2009
President Obama signed the National Defense Authorization Act (HR 2657)
yesterday afternoon.
The bill ends the NSPS pay-for-performance system by January 1, 2012.
In the next six months, the Pentagon will begin a phase of transferring
employees under NSPS back to their original pay system, such as the General
Schedule (GS).
The Act also contains several retirement changes. The Office of
Personnel Management (OPM) stated this morning the agency will provide
additional information and guidance for employees as soon as possible.
Credit for sick leave in the computation of FERS annuities is effective at
50% immediately and 100% in 2014.
Provision allowing former federal employees under the FERS who withdrew
their contributions to the retirement trust fund, thereby waiving retirement
credit for those years of service, to redeposit their earlier contributions,
plus interest, upon reemployment with the federal government is effective
immediately.
A change in CSRS part-time computation (going to a single deemed high-3) is
effective immediately.
A change of the ending date for periods of service under CSRS that can be
redeposited by actuarial reduction (instead of for separations prior to 10/1/90
it will be for separations prior to 3/1/91) is effective immediately.
The less-than-full-time dual comp reemployed annuitant provision authorizes
federal agencies to reemploy retired federal employees under certain limited
conditions, without offset of an employees' annuity against their salary is
available for agencies to use effective immediately.
Provisions phasing out cost of living allowances for federal employees
working in Hawaii, Alaska, and other non-foreign U.S. territories, and phasing
in locality comparability pay in place of the allowance affecting retirement
take effect next year.
The provisions allowing certain previously non-creditable D.C. Government
employment to be creditable for title but not annuity computation are effective
immediately.
Overview - CSRS
