Benefits Issues Also Pending

On the benefits front, most of the administration proposals of recent years have made only halting progress, and may be repeated once again. This includes a proposal to remove the penalty that applies to CSRS employees who switch to part-time work late in their careers; the administration and some in Congress want to encourage such switches as a transition step that could benefit both the employees and the government. The administration also proposed last year to reduce the government’s share of FEHB premiums for retirees with fewer than 10 years of federal service, a proposal that went nowhere. The budget proposal could be the opportunity to raise new initiatives, as well, such as the concept of creating a short-term disability benefit, an idea OPM floated last year.