Categories: Fedweek

Rehiring, Non-Foreign COLA Ideas Set Aside

Senate civil service leaders also tried to add two other benefits provisions that were not in the House version, but those provisions also were ruled not germane. Those would allow rehiring of federal retirees without an offset between their salaries and annuities for limited periods, and create a locality pay system to replace the current non-foreign area COLA system for employees in Alaska, Hawaii and certain U.S. territories and possessions. Sponsors will continue to work for passage of those ideas, but prospects for the retiree rehiring provision became clouded as the Senate considered that idea because employee organizations split on that issue, with management groups favoring it and unions in opposition. Unions argue that the authority could be abused and over-used to the detriment of the job prospects of other employees and applicants—people who, in addition, would be more likely to become union members than would rehired annuitants.

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