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The House Government Reform Committee passed three bills Thursday assisting federal employees with student loans, transit payments and retirement health care.

The most contentious of the bills is H.R. 994, also known as premium conversion. That legislation - introduced by the committee's chairman, Rep. Tom Davis, R-Va., and Rep. Jon Porter, R-Nev. - allows retired military personnel and federal employees to pay their health insurance premiums with pre-tax dollars. It also gives active duty military personnel a tax deduction when they pay supplemental insurance premiums. The bill moved quickly through the committee last year as well, but it was blocked by House Ways and Means Committee Chairman Bill Thomas, R-Calif.

Federally Employed Women, a civil service advocacy group, applauded the premium conversion legislation. In a press release, FEW noted Thomas' opposition, but expressed hope that the bill's strong support will allow it to move to the full House.


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"Considering the bill has 198 co-sponsors and a lot of support, the Ways and Means Committee should hold hearings as soon as possible," said Rhonda Trent, FEW vice president for congressional and government relations. "Members of the House of Representatives should be given the opportunity to vote on this benefit, but they cannot do so until it moves out of the Ways and Means Committee."

Davis said that the premium conversion bill could save retirees almost $500 annually.

"The federal government's most important asset is our people, and we must have better means to recruit, retain and reward them. Although not a permanent answer to rising health-care costs, H.R. 994, the premium conversion bill, will take the next step in helping improve quality of life for those retirees and active duty personnel living on a fixed income," Davis said. "It has been estimated that retirees would save nearly $450 per year under this legislation."

The Government Reform Committee also passed H.R. 1765, known as the GOFEDS Act. It would allow federal workers who take the student loan repayment benefit to receive it tax-free. The legislation also would require the Office of Personnel Management to provide an annual report to Congress on agencies that do not provide the benefit.

Committee members unanimously passed H.R. 1283, which was introduced by Rep. Jim Moran, D-Va., and mandates that federal agencies give their Washington area employees tax-free transportation benefits. The legislation allows federal agencies to provide transportation for employees to and from mass transit stations. That bill has been sent to the full House.

"As the region's largest employer, the federal government can help alleviate some of the burdens imposed on one of the most congested traffic systems in the country by encouraging federal employees to use mass transit," Davis said.

COMMENTS

  • If you are really interested in reform, I have some suggestions. Face up to the world's population problem. Allow tax exemptions for only two children per family. Why should I have to support the irresponsible? Refuse government contracts to any company whose senior officers earn more than 100 times the average pay of salaried or non management employees. Shareholders have no power to control these salaries as the boards are made up of other ceo's, and the majority stock holders are fund managers who are also ripping off the public. Tax the pants off anyone earning more than $1,000,000 per year. Deny tax free status to any church that even touches on political advocacy. Prohibit any form of torture by any government entity.
  • Congress - get real! Stop this foolishness! Make all government payments - salaries, wages, retirement payments - tax free. You could lower the level to reflect the tax rate. This would reduce the government's cash outlay that would reduce borrowing and lower interest payments (tax free interest payments). It would reduce the amount of information the IRS had to handle and probably reduce the number of filings significantly. Finally, it would stop Congress from wasting time on this type of foolishness - these payments should have been pre-tax at least 15 years ago as they are in the private sector!
  • It must be nice if you live in D.C. and can receive free transportation if a federal employee. I am postal employee and cannot even receive mileage payments for use of personal vehicle on official business, but then I live in Iowa so things must be different for us hillbillies.