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.
  
  

  Copyright © 2007-2012 My Federal Retirement. All Rights Reserved. Reproduction without permission prohibited.