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Washington, D.C., May 31st – Congressman Jim Moran, Virginia Democrat, has reintroduced a bill to help recruit experienced federal employees. The legislation titled the "FERS Redeposit Act" (H.R. 2533) gives individuals who, upon their return to civil service from the private sector, the ability to reinvest their full federal retirement annuity without losing credit for previous years of service.
Under the current system, individuals who leave the federal government and either cash out their annuity or roll it into a private savings account cannot redeposit those funds if and when they return to government service. This means that for purposes of determining their annuity benefit, they have lost their credit for previous years of service and are considered to be at year one when returning to the government after time in the private sector.
Enactment of H.R. 2533, the "FERS Redeposit Act" would allow former civil servants who decide to re-enter the government workforce after a stint in the private sector to redeposit the full amount plus interest of the annuity they cashed out or rolled over and to retain their years of service in the calculation of future annuity payments.
Currently this "redeposit" benefit is available to federal employees enrolled in the Civil Service Retirement System (CSRS), which applies only to civil servants who began working prior to 1984.
“One of the constants in the lives of many living in the Capital area is change,” Moran said. “And one of the most common changes is a new job. This bill incorporates the mobility of our job market with the growing need for experienced federal workers."
"In ten years, 90 percent of civil service federal executives will be over the age of 50 and nearing retirement. The American people need and expect efficient and effective government. This 'brain drain' is a threat to a stable and well-functioning federal workforce. Our bill gives new enticement for experienced federal employees to re-join the civil service.”
Original co-sponsors of the FERS Redeposit Act are Representatives Norton (D-DC), Wynn (D-MD), Van Hollen (D-MD) and Wolf (R-VA).
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