Clinton signs bill on long-term care, retirement errors

President Clinton Tuesday signed into law a bill allowing federal employees to purchase long-term care insurance at discounted rates.

The bill, H.R. 4040, also includes a provision that would provide relief to federal employees and their families who, through no fault of their own, became victims of retirement coverage mistakes.

The bill directs the Office of Personnel Management to invite bids from private insurers to offer coverage for employees and their spouses, children and other close relatives at discounted group rates. Federal workers, active-duty military personnel and civilian and military retirees are all covered. Employees and their eligible family members would pay the insurance premiums, but rates are expected to be discounted.

The House and Senate gave final approval to the measure in late July.

"Our hope is that by making high-quality private long-term care coverage available to the federal family at negotiated group rates, we will continue to serve as a model to other employers across the nation," Clinton said in signing the legislation.

OPM will screen insurance providers and make sure employees receive all the necessary information on insurance options and benefits.

"This is an important down payment toward finding solutions to the exploding problem of long term care in this country," said Sen. Barbara Mikulski, D-Md. "As the nation's largest employer, first-the federal government can be a model and example for employers around the country and second-it can raise awareness and education about long-term care options," she said. Mikulski was the lead Democratic sponsor of S. 2420, the Senate companion bill to H.R. 4040.

The retirement foul-up that the bill aims to correct arose in the mid-1980s, during the transition from the old Civil Service Retirement System (CSRS) to the Federal Employees Retirement System (FERS). Confused agencies placed some employees in CSRS when they should have been in FERS and some in FERS when they should have been in CSRS. Up to 18,000 federal workers may have been affected.

"Unlike current law, which directs how coverage errors will be corrected, it permits those placed in the wrong retirement coverage to choose the coverage that best serves their needs and preferences," Clinton said.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

    Download
  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

    Download
  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

    Download
  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

    Download
  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

    Download
  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.

    Download

When you download a report, your information may be shared with the underwriters of that document.