Budzinski Announces Legislation to Restore Retirement Benefits for Federal Employees 

WASHINGTON, DC – Today, Congresswoman Nikki Budzinski (IL-13), Congressman David Valadao (CA-22), Congressman Gerry Connolly (VA-11), and Congressman Don Bacon (NE-02) announced the reintroduction of the Federal Retirement Fairness Act, bipartisan legislation to address a gap for federal employees who began their careers as temporary workers and were thus unable to make retirement contributions. The Federal Retirement Fairness Act will allow these workers to make catch-up contributions to ensure they can retire as planned. In the absence of this provision, many face an unfair choice: exit the federal service without complete retirement benefits or delay retirement to achieve full benefits.

“Federal workers keep America running and these dedicated public servants deserve to retire with dignity,” said Congresswoman Budzinski. “However, many federal workers – like postal employees – got their start in “non-career” roles that do not count towards their retirement benefits. It’s long past time that we address this unfair loophole. Amidst growing uncertainty facing the federal workforce, I’m proud to introduce this legislation and ensure that all federal workers receive the full benefits they have earned.

Before 1989, the Office of Personnel Management permitted federal employees to make catch-up payments, enabling them to compensate for years they didn’t contribute to their retirement accounts. However, this provision was eliminated when the government transitioned to a new federal employee retirement system. The Federal Retirement Fairness Act aims to reinstate the option for employees hired post-1989, allowing them to retroactively purchase the time they served as temporary federal employees, mirroring the terms that existed before 1989.

“No matter how they begin their careers, all federal employees deserve the opportunity to retire on time and with the full benefits they have earned,” said Congressman Connolly. “The federal workforce is our nation’s greatest asset. They serve the American people with dignity and dedication every single day. In this dark and uncertain hour for America’s civil servants, I am proud to join my colleagues in this important effort to guarantee the fair retirements that they deserve.”

“For too long, federal employees who started their careers in temporary positions have been unfairly penalized when it comes to their retirement benefits,” said Congressman Valadao. “The Federal Retirement Fairness Act is a common sense, bipartisan solution to ensure our hardworking public servants can retire on schedule. I’m proud to join my colleagues in reintroducing this bill which restores fairness and provides federal employees with the certainty they deserve.”

“Postal workers in my district came to me about this problem, and I couldn’t agree more that we need to allow them, and all federal workers, to make “catch up” payments as part of their retirement benefits,” said Congressman Bacon. “I’m pleased to join my colleagues in making this right for our federal workforce. They work hard and should be able to get the retirement that that work has earned.”

“NALC appreciates Chairman Connolly, Rep. Budzinski, Rep. Valadao, and Rep Bacon’s leadership on this bill that would benefit so many of our members,” said National Association of Letter Carriers Brian L. Renfroe. “This bill is about fairness for public servants. Letter carriers put in the hours and the hard work, and it’s only fair that their time spent in non-career positions count towards their well-deserved retirements. NALC urges the House to pass this bill.”

The Federal Retirement Fairness Act is supported by the following organizations: National Postal Mail Handlers Union, the National Rural Letter Carriers Association, the Federal Managers Association, the International Federation of Professional and Technical Engineers, the National Treasury Employees Union, the National Association of Letter Carriers, the National Federation of Federal Employees, and the National Active and Retired Federal Employees Association. 

Text of the Federal Retirement Fairness Act is available here.

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