[Congressional Record Volume 155, Number 47 (Wednesday, March 18, 2009)]
[Senate]
[Pages S3373-S3374]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS (for herself, Mr. Voinovich, and Mr. Kohl):
  S. 629. 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 a bill with my 
colleagues Senators Voinovich and Kohl that will strengthen the Federal 
Government's ability to serve the public at a time when Federal 
agencies face a wave of retirement of highly experienced 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 
three million people, will be eligible to retire during the coming 10 
years.
  Federal agencies, which already must hire more than a quarter-million 
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 possess.
  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 in current law.
  Current law 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 Senators Voinovich and Kohl would provide a limited but 
vital measure of relief to agencies who could benefit from the skills 
and knowledge of Federal retirees. It provides an opportunity for 
Federal agencies to reemploy retirees without requiring them to take 
pay cuts based on their annuity payment.

[[Page S3374]]

  This simple but powerful reform will provide some much needed hiring 
flexibilities for agencies, especially given the expertise the Federal 
Government will need to effectively implement the American Recovery and 
Reinvestment Act of 2009.
  The Homeland Security and Governmental Affairs Committee held a 
hearing earlier this month where we discussed how oversight entities 
will meet their responsibilities to ensure that stimulus funds are 
spent effectively. Acting Comptroller General Gene Dodaro indicated 
that the reemployment of annuitants is an essential authority that the 
Government Accountability Office uses when circumstances arise that 
require rapid staffing increases. Using statutory authority possessed 
by GAO, the agency is able to attract and hire back their annuitants 
without offsetting their pay by the amount of their pension.
  Most executive branch agencies do not enjoy similar flexibility as 
GAO. Instead, current law requires these agencies to offset an 
annuitant's salary, unless the agency can first obtain a waiver from 
OPM. This waiver will be granted if the agency demonstrates to OPM that 
only a particular annuitant is qualified to fill a particular need and 
the annuitant will only return if his or her salary is not offset. The 
waiver process is administratively cumbersome, and often prevents 
agencies from even considering a returning annuitant for an important 
position.
  Whether at GAO or in our Government's Inspectors General offices, 
experienced, qualified former employees--with institutional knowledge--
could play an important role in oversight of stimulus spending. This 
point was recently made by both Acting Comptroller General Dodaro and 
the Chair of the Council of Inspectors General on Integrity and 
Efficiency, CIGIE, Phyllis Fong, in testimony before the Homeland 
Security and Governmental Affairs Committee.
  Inspectors General will have to quickly hire experienced auditors and 
investigators to ensure critical oversight of stimulus spending. This 
legislation will allow IG offices to bring back valuable and 
experienced employees to the Federal Government to ensure aggressive 
oversight, enhanced transparency, and accountability for taxpayer 
dollars.

  Ensuring an experienced acquisition workforce is available to oversee 
stimulus spending is just as critical. The government spent $532 
billion on contracts last year--a 140 percent increase from 2001 to 
2008. At the same time, the Federal Government entered the 21st century 
with 22 percent fewer federal civilian acquisition personnel than it 
had at the start of the 1990s. As early as 2012, 50 percent of this 
workforce will be eligible to retire. This means that as our contract 
spending continues to increase dramatically, our contracting workforce 
continues to shrink. This legislation will allow agencies to bring in 
experienced acquisition personnel at a time when they are desperately 
needed--whether to ensure that stimulus funds are spent wisely or to 
help administer over $500 billion in government contract spending
  Several organizations have endorsed the reforms in our bill, 
including the National Active and Retired Federal Employees 
Association, the Partnership for Public Service, and the Government 
Managers Coalition.
  I would also 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 six 
months following the start of annuity payments, not more than 1,040 
hours in any 12-month period, and not more than 3,120 hours total for 
the annuitant's lifetime. In terms of eight-hour days, those figures 
are equivalent to 65, 130, and 390 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 unaffected by their 
part-time work. Even without making any allowance for the positive 
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, especially during these tough economic times. I urge 
my colleagues to support it.
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