NFFE Local 858 » NSPS

With Defense Bill Passed, FERS Employees to Receive Retirement Credit for Unused Sick Leave

Minja — Fri, 06 Nov 2009 18:43:46 +0000

Earlier this week, President Obama signed the 2010 National Defense Authorization Act. While a full repeal of the National Security Personnel System (NSPS) dominated headlines, one largely underreported aspect of the bill – and arguably one of the most important for federal employees throughout the civil service – was a provision extending credit for accrued sick leave to federal workers enrolled in the Federal Employee Retirement System (FERS).

Under the new law, FERS employees will receive a boost to their retirement annuity based on the amount of sick leave they have saved over the course of their federal careers. Like their counterparts in the Civil Service Retirement System, covered employees will have their accrued leave factored in their annuity calculation upon retirement.

Here’s how it works. Once an employee becomes eligible to retire, their accrued sick leave will be credited toward his/her years and months of service. For example, before the benefit was signed into law, if a federal employee worked for the federal government for 30 years, earning a high three of $70,000 and garnering 6 months of sick leave, his/her retirement annuity would be 1.0% x 30 x 70,000, or $21,000 per year.

With this new benefit included, the same employee would have their annuity calculated 1.0% x 30.5 x 70,000 or $21,350 for the year. That’s an extra $29.17 cents in his/her pocket every month upon retirement.

There is a catch, however, but only in the short term. Though the sick leave benefit will go into effect immediately, it will not do so in its fullest capacity. There will be a four-year phase in period during which retiring FERS employees will receive only half credit for their unused sick leave. Federal employees can expect to retire with the full benefit on or after January 1, 2014.

“We are very pleased that FERS employees will finally be given credit for their unused sick time,” said NFFE Legislative Director Randy Erwin. “Establishing this good government benefit has been a top priority for NFFE. Now our retirees are going to have a little more money in their pocket because they were dutiful in their service and rarely used sick time. They earned that benefit, and now they will get something for it.”

NSPS Officially Repealed as President Obama Signs Defense Bill

Sarah — Thu, 29 Oct 2009 15:05:08 +0000

Wednesday, October 28, 2009

Today, President Obama signed the 2010 National Defense Authorization Act. Included in the bill was a provision to repeal the controversial National Security Personnel System (NSPS). The bill also contained several small provisions impacting retirement benefits for the federal workforce.

The NSPS provisions in the bill dictate a repeal of the system, and a conversion of the over 200,000 covered employees back into existing pay systems by January 1, 2012. NSPS workers will be guaranteed the full annual GS pay adjustment over the transitional period.

Also included in the Defense Bill are provisions offering employees enrolled in the Federal Employee Retirement System (FERS) credit for their unused sick leave upon retirement, and extending locality pay to workers stationed outside of the mainland United States – both critical NFFE priorities.

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Senate passes bill to kill NSPS, cut sole-souree contracts

Sarah — Fri, 23 Oct 2009 18:55:03 +0000

Oct 23, 2009

The Senate has passed a bill that would end the National Security Personnel System.(NSPS) and make it more difficult to award sole-source contracts. The measure would authorize spending $550.2 billion on Defense Department programs in fiscal 2010.

On Oct. 22, the Senate approved the fiscal 2010 National Defense Authorization Act’s conference report by a vote of 68 to 29 after the House passed the bill Oct. 8. The legislation now goes to the White House for President Barack Obama’s signature. The conference report is a compromise between the House and Senate versions of the same bill.

The report contains an important provision to end the NSPS, a pay-for-performance compensation system for federal employees. The National Treasury Employees Union and others say NSPS curtails employee rights in the workplace, including the right to collective bargaining.

Full Report

House Approves Defense Authorization Bill Repealing NSPS; Senate Nearing a Vote

Sarah — Fri, 23 Oct 2009 18:15:27 +0000

Friday, October 9, 2009

Thursday, the House of Representatives passed the conference report on the FY 2010 Defense Authorization Act, which includes provisions to repeal the National Security Personnel System (NSPS) and convert the over 200,000 employees enrolled under the program back into existing pay systems.

The legislation also contains provisions giving retiring employees enrolled in the Federal Employee Retirement System (FERS) credit for their unused sick leave and extends locality pay to workers stationed outside of the mainland United States.

Full Story