Early Outs, Buyouts Offered

Defense acquisition personnel opting for early retirement would have the 2 percent penalty levied against the pensions of employees who take early outs reduced under a plan approved by the House of Representatives yesterday. Buyouts would also be offered to reduce the size of DoD's procurement workforce.

The Defense Reform Act, approved by the House as part of the 1998 Defense Authorization Bill yesterday, calls for the Defense Department to reduce its acquisition workforce by 124,000 people over the next four years. To reach that goal, the bill would allow DoD to offer buyouts to eligible acquisition personnel under a tailored, one-year authority.

The early out provision would reduce the penalty government employees are charged for each year they retire before age 55. Normally workers have their pensions reduced 2 percent for each year. Under the bill, acquisition personnel would only have their pensions reduced 1 percent for each year. To be eligible, workers would have to be GS-13 or above and age 50 or older. Employees who take early outs would not be eligible for buyouts.

The House passed the authorization bill on a 304 to 120 vote. The Senate will take up the bill after the July 4 recess.