[Congressional Record Volume 142, Number 24 (Tuesday, February 27, 1996)]
[Senate]
[Page S1353]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. MIKULSKI (for herself and Mr. Sarbanes):
  S. 1576. A bill to provide that Federal employees who are furloughed 
or are not paid for performing essential services during a period of a 
lapse in appropriations, may receive a loan, paid at their standard 
rate of compensation, from the Thrift Savings Fund, and for other 
purposes; to the Committee on Governmental Affairs.


                    THE FURLOUGH RELIEF ACT OF 1996

 Ms. MIKULSKI. Mr. President, today, I am introducing 
legislation with Senator Sarbanes called the Furlough Relief Act of 
1996. Our bill would help Federal employees weather the storm during 
Government shutdowns by allowing them access to interest free loans 
from their Thrift Savings Plans.
  About the only thing that Federal employees can rely on today is 
uncertainty. During the last year we have seen one attack after another 
aimed at Federal workers. Between assaults on earned retirement 
benefits, downsizing, and furloughs, these dedicated people have to be 
wondering what's coming next.
  Today we are operating much of the Government under an emergency 
continuing resolution. I fervently hope there will not be another 
shutdown, and I will be doing all I can to prevent one from happening. 
But there is no guarantee that Federal employees will be able to go to 
work and earn their paychecks after this continuing resolution expires 
on March 15. They could face yet another shutdown. That would mean more 
lost pay, more lost productivity, and more uncertainty.
  I am a Federal employee Senator. I believe in honest pay for hard 
work, and I know of no group of Americans that works harder than our 
Federal employees. That is why I am introducing legislation today that 
will help Federal employees who want to help themselves.
  As my colleagues know, Federal employees currently are allowed to 
borrow from their tax deferred Thrift Savings Plans for reasons such as 
furthering their education, buying a home, or undergoing a medical 
procedure. However, the approval process for a TSP loan can take weeks. 
There is also no guarantee that the loan will be approved, and if it is 
approved, the borrower must pay interest when paying back the loan.
  The Furlough Relief Act of 1996 would allow furloughed Federal 
employees to be automatically eligible for a TSP loan from their 
account during any Government shutdown. This loan would continue to be 
paid as long as the employee remains on furlough. It would help Federal 
employees make up for lost wages. When a furlough ends, the employee 
would be able to pay back the loan without interest.
  The Furlough Relief Act will cut through the redtape of the TSP loan 
process. It will provide a dependable source of income for Federal 
employees who have been denied their pay, and it will finally give a 
break to dedicated people who have not had many breaks in the past 
year.
  I think it's time to stop these assaults on Federal employees. We 
cannot continue to devalue Government workers and at the same time 
expect Government to work better. In my State of Maryland, there are 
thousands of Federal employees making Government work better and making 
a difference in the lives of all Americans. I salute them, and I 
dedicate myself to making a difference in their lives.
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