FEDweek

Part Time Work Change a Priority

The House Government Reform Committee has said it will consider legislation that would alter the way retirement benefits under CSRS are calculated for workers with part-time service. The legislation would apply to workers who performed work prior to April 7, 1986, have some part-time service, and who retire after the legislation is enacted.

Under current law, benefits for CSRS workers with part-time service are calculated using a two-step process. For workers with service prior to April 7, 1986, the current formula uses the highest salary the worker actually earned to reflect the part-time employment. For work on or after April 7, 1986, the formula uses a deemed salary (what the worker would have been earning if the worker had been working full time) to determine benefits and applies a pro rata factor to adjust for part-time service. In effect, the current formula often treats new retirees with part-time service early in their careers more favorably than those whose part-time service comes at the end of their careers.