[Congressional Record Volume 153, Number 127 (Friday, August 3, 2007)]
[Senate]
[Pages S10932-S10933]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS (for herself, Mr. Warner, and Mr. Voinovich):
  S. 2003. A bill to facilitate the part-time reemployment of 
annuitants, and for other purposes; to the Committee on Homeland 
Security and Governmental Affairs.
  Ms. COLLINS. Mr. President, I rise to introduce Senate Bill 2003, a 
measure that will enhance the Federal Government's ability to perform 
its duties capably and economically as it faces a wave of retirement of 
highly experienced Federal employees.
  When we think about the coming demographic shock of millions of baby 
boomers reaching retirement age, we usually focus on the cash-flow 
implications for the Social Security and Medicare programs. But their 
aging will also have a profound effect on the Federal workforce.
  On average, retirements from the Federal workforce have exceeded 
50,000 a year for a decade. The numbers will certainly rise in the near 
future. The Office of Personnel Management calculates that 60 percent 
of the current Federal workforce, whose civilian component approaches 3 
million people, will be eligible to retire during the coming 10 years.
  Federal agencies, which already must hire more than 250,000 new 
employees each year, will need to work hard to replace those retirees, 
as the private sector and State and local governments will be facing 
the same problem and competing for qualified replacements.
  The baby boom retirement wave will have another impact. It will cause 
a sudden acceleration in the loss of accumulated skills and mentoring 
capabilities that experienced workers uniquely possess.
  Human-resources research has repeatedly shown that, in general, older 
workers equal or outperform younger workers in organizational 
knowledge, ability to work independently, commitment, productivity, 
flexibility, and mentoring ability.
  Making good use of their talents is, therefore, not charity. It is 
common sense and sound management.
  Federal agencies recognize the value of older workers, as witnessed 
by the fact that nearly 4,500 retirees have been allowed to return to 
full-time work on a waiver basis.
  Agencies could make use of even more Federal annuitants for short-
term projects or part-time work, but for a disincentive embedded in 
current law.
  Title 5 of the United States Code currently mandates that annuitants 
who return to work for the Federal Government must have their salary 
reduced by the amount of their annuity during the period of 
reemployment. The bill I introduce today with the welcome cosponsorship 
of Senators Warner and Voinovich would provide a limited but vital 
measure of relief to agencies who could benefit from the skills and 
knowledge of Federal retirees. It provides a limited opportunity for 
Federal agencies to reemploy retirees without requiring them to take 
pay cuts based on their annuity payment.
  This simple but powerful reform is a priority item for the Federal 
Office of Personnel Management. As OPM Director Linda Springer has 
said, ``Modifying the rules to bring talented retirees back to the 
Government on a part-time basis without penalizing their annuity would 
allow Federal agencies to rehire recently retired employees to assist 
with short-term projects, fill critical skill gaps and train the next 
generation of Federal employees.''
  Organizations endorsing the reform contemplated in my bill include 
the National Active and Retired Federal Employees Association, the 
Federal Managers Association, the Partnership for Public Service, and 
the Council for Excellence in Government.
  I would note two important points about the bill.
  First, it will not materially affect the necessary flow of younger 
workers into Federal agencies. The bill contemplates reemployment for 
part-time or project work of not more than 520 hours in the first 6 
months following the start of annuity payments, not more than 1,040 
hours in any 12-month period, and not more than 6,240 hours total for 
the annuitant's lifetime. In terms of 8-hour days, those figures are 
equivalent to 65, 130, and 780 days, respectively.
  These limits will give agencies flexibility in assigning retirees to 
limited-time or limited-scope projects, including mentoring and 
collaboration, without evading or undermining the waiver requirement 
for substantial or full-time employment. of annuitants.
  I would also note that this bill gives no cause for concern about 
financial impact. Reemployed annuitants would be performing work that 
the agencies needed to do in any case, but would not require any 
additional contributions to pension or savings plans. Meanwhile, their 
retiree health and life insurance benefits would be costs unaffected by 
their part-time work. Even without making any allowance for the 
positive

[[Page S10933]]

effects of their organizational knowledge, commitment, productivity, 
and mentoring potential, their reemployment is likely to produce net 
savings.
  This measure offers benefits for Federal agencies, for Federal 
retirees who would welcome the opportunity to perform part-time work, 
and for taxpayers. I urge my colleagues to support it.
                                 ______