Don't count on a retirement plan open season--yet.
Although a federal judge Tuesday approved an agreement between the National Treasury Employees Union and the Justice Department to rescind President Clinton's line-item veto of a measure that would allow employees to switch retirement systems, administration officials are hinting that they would like to reopen the issue with Congress.
The agreement with NTEU effectively rescinds President Clinton's veto of a provision in the Treasury-Postal Appropriations bill that would allow federal employees to switch from the Civil Service Retirement System to the Federal Employees Retirement System, potentially boosting their retirement income.
NTEU President Robert Tobias said he was "extremely pleased" with the settlement, which he said paves the way for a retirement open season to take place next summer.
However, an Office of Personnel Management official said Tuesday that the Office of Management and Budget is working on a separate piece of legislation that would eliminate the prospect of an open season.
OMB officials, for now, are mum on the subject. "As for whether or not we will revisit this item in a different context, I wouldn't want to speculate," OMB spokesman Lawrence J. Haas told The Washington Post.
Tobias said today that he has not heard any mention of OMB legislation that would toy with the settlement.
"I think Congress would be extremely reluctant to undo what it has already done," Tobias said. "I don't believe Congress is going to rescind this open season."
Clinton used his line-item veto power in October to cancel the retirement provision after officials estimated that the proposal would cost agencies $854 million over five years. NTEU filed suit, claiming both that the line-item veto law is unconstitutional and that Clinton exceeded his statutory authority in vetoing the retirement measure.
If an open season does occur, officials estimate that 1 percent of the federal workforce will switch from CSRS to FERS.
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