Federal managers, employee unions, outside observers and the Clinton administration's human resources chief all voiced their support Wednesday for a plan to allow federal employees to contribute up to $10,000 a year to the Thrift Savings Plan.
The House Government Reform and Oversight Subcommittee on the Civil Service is considering a set of more than three dozen proposals for revamping the rules that govern federal employment. Subcommittee Chairman John Mica, R-Fla., held a hearing Wednesday at which unions, managers, administration officials and members of Congress exchanged views on the proposals.
Office of Personnel Management Director Janice Lachance said she supports a proposal, championed by Rep. Connie Morella, R-Md., that would allow federal employees to contribute more to the Thrift Savings Plan, the government's 401(k)-style investment program. Under current rules, employees can contribute up to 10 percent of their salary to the TSP if they are under the Federal Employees Retirement System. Employees under the Civil Service Retirement System can contribute up to five percent of pay. Morella's proposal would allow employees to contribute up to the IRS limit on contributions, which this year stands at $10,000.
Lachance noted that the proposal carries "revenue implications," because contributions to the TSP are not taxed. She still said she supports the measure, as did union leaders and management representatives.
"I think it's a great idea," Lachance said.
American Federation of Government Employees President Bobby Harnage said the proposal comes at just the right time, as Americans are enjoying the fruits of a soaring stock market.
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