Federal Retirement Fairness Act
- Sponsor
- Rep. Connolly, Gerald E. [D-VA-11]
- Committees
- Oversight and Government Reform Committee (primary)
- Last action
- Jul 22, 2025
Bottom line
The Federal Retirement Fairness Act expands eligibility for creditable service under FERS to include temporary federal civilian employment after 1988, potentially allowing thousands of current and former temporary workers to buy back service time for their pensions.
What it actually does
This bill amends the Federal Employees Retirement System (FERS) to allow civilian service in a temporary position performed after December 31, 1988, to be creditable service for retirement purposes. Previously, only temporary service before this date was creditable. It directs the Office of Personnel Management (OPM) to notify eligible employees and promulgate regulations for implementation.
Proponents argue
Supporters argue this bill rectifies an inequity for federal employees who served in temporary capacities after 1988, often performing the same duties as permanent employees but without the ability to count that time towards their retirement. They contend it ensures fairness and recognizes the full scope of an individual's federal service, helping to provide a more secure retirement for those who dedicated years to public service. This change would also help retain experienced federal workers.
Opponents contend
Opponents might raise concerns about the potential significant cost to the federal budget, as allowing more employees to buy back service time could increase future pension liabilities. They may argue that the current system was designed with specific financial parameters and expanding eligibility could strain the FERS trust fund or require additional taxpayer contributions. Concerns about administrative complexity for OPM in processing these claims could also be raised.
The bill is very concise and can be read and understood quickly, making it highly accessible for anyone wishing to evaluate its core provisions.
Section 2(a)
Expansion of Creditable Service for Temporary Employees
This provision removes the December 31, 1988, cutoff date for crediting temporary civilian service under the Federal Employees Retirement System (FERS). This means that any civilian service performed in a temporary position, regardless of when it occurred, can now be counted towards an individual's FERS retirement annuity, provided they make the necessary deposit for that service.
Supporters argue
Supporters argue this provision corrects a long-standing inequity where temporary federal employees, despite performing essential government functions, were denied the ability to count their service towards retirement simply due to an arbitrary date cutoff. They assert it provides a fairer and more comprehensive recognition of federal service.
Critics contend
Opponents might contend that expanding creditable service to include post-1988 temporary service could create substantial unfunded liabilities for the FERS system, potentially requiring increased government contributions or impacting the solvency of the fund. They may argue that the original cutoff was a deliberate fiscal decision.
Tradeoffs
The provision balances the desire for equitable treatment of all federal service against the potential for increased long-term costs to the federal retirement system and taxpayers.