Retirement Protection

Lawmakers boost retirement benefits for injured feds.

Legislation seeking to boost retirement benefits for federal employees injured on the job is on its way to the White House for the president's signature.

On Sept. 11, the House passed H.R. 978, which would increase the pensions of employees in the Federal Employees Retirement System (FERS) who have received disability payments at some point in their careers. A companion bill, S. 481, introduced by Sen. George Allen, R-Va., was approved by the Senate on July 28.

Under FERS, 1 percent of a federal employee's salary is set aside for retirement. The two bills aim to help employees who become disabled and are unable to make Social Security or Thrift Savings Plan contributions by increasing the amount set aside benefit to 2 percent while they are receiving disability payments.

The bills were introduced after lawmakers learned about the situation of Louise Kurtz, a civilian Army employee who was injured in the Sept. 11 attack on the Pentagon. Kurtz, who lost her ears and fingers and suffered burns on more than 70 percent of her body, has been unable to fully contribute to her retirement accounts.

"This legislation should be the policy of a compassionate nation to ensure that the pensions of our hard-working federal employees be kept whole during a period of injury and recuperation, especially now that many of them are on the front lines, protecting our homeland security in the war on terror," Allen said.

Allen was able to get similar legislation approved by the Senate during the last congressional session, but it never made it out of the House Government Reform Committee.

Military Time

A new bill introduced last week would prevent a loss in retirement income for Park Police officers and Secret Service employees who served in the military.

Under current law, retirees who worked in the D.C. police and fire departments, the Park Police and the Secret Service's Uniformed Division may use time served in the military as credit toward their retirement. But such retirees who are eligible to receive Social Security benefits may not concurrently receive credit for the time they served in the military. So after a retiree reaches age 65, the amount of his or her annuity is significantly reduced. The District of Columbia Military Retirement Equity Act of 2003 (H.R. 3054) would allow members and retirees to make payments to "buy back" the years of military service to avoid the reduction in their monthly benefits.

The legislation is designed to match provisions that already apply to many other federal retirees, House Government Reform Committee Chairman Tom Davis, R-Va., said when the bill was introduced. "The current and former officers covered under this bill-who have served our country not once, but twice-deserve the same opportunity."

Davis sponsored the bill along with House Minority Whip Steny Hoyer, D-Md., and Rep. Curt Weldon, R-Penn.