[Congressional Record Volume 147, Number 71 (Tuesday, May 22, 2001)]
[Extensions of Remarks]
[Page E883]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           FERS REDEPOSIT ACT

                                 ______
                                 

                          HON. JAMES P. MORAN

                              of virginia

                    in the house of representatives

                         Tuesday, May 22, 2001

  Mr. MORAN of Virginia. Mr. Speaker, there is no debate over whether 
the federal government is facing a crisis--it is. Reports indicate that 
about 30 percent of the government's 1.6 million full-time employees 
will be eligible to retire within five years, and an additional 20 
percent could seek early retirement. Furthermore, 65 percent of the 
Senior Executive Service will be eligible for retirement by 2004.
  One hearing has been held and numerous editorials have been written 
about the impending workforce shortage, but very few specific policy 
changes have been suggested. Today I am introducing legislation that 
takes a step in the right direction. The FERS Redeposit Act would allow 
individuals who left the federal government and received a refund of 
their Federal Employees Retirement System (FERS) contributions to 
reenter government service without losing their accrued annuity. 
Instead of forfeiting credit earned during their prior service, 
returning employees would be able to redeposit their cashed out annuity 
upon reentrance. This benefit is already available to federal employees 
who are registered under the older Civil Service Retirement System 
(CSRS).
  Retiring federal employees represent the institutional knowledge and 
expertise needed to run the government, and we must pro-actively 
address this drain on our human capital. Creating incentives for 
federal employees who left for the private sector to return to 
government service is one way to address this problem. Studies indicate 
that a key trait of younger workers, who are covered by FERS, is their 
increased professional mobility. FERS's design implicitly acknowledges 
this fact by incorporating a portable private sector-style Thrift 
Savings Plan and 401(K) plan. It is ironic that those federal workers 
who are in CSRS--most of whom have worked their entire careers in the 
federal government--have a redeposit option while the younger FERS 
employees do not.
  As more and more FERS employees leave the federal government and 
later wish to reenter federal service, a redeposit option would provide 
the incentive needed to bring these individuals back to the government.
  I urge my colleagues to join me in this effort to make federal 
service more attractive by cosponsoring this important legislation.

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