Meanwhile, officials also have outlined what they expect to
be in a proposed Federal Retirement Improvements Act, saying
that on balance, the changes will benefit retirees. The main
change would be to amend CSRS retirement law to eliminate the
penalty that currently applies when those employees take part-
time jobs later in their careers and the effect is to erode
their “high-three” salary on which retirement benefits are
based. The proposal seeks to annualize their part-time salaries
to eliminate this effect. In addition, there would be mainly
minor changes in other areas, including revisions to policies
governing crediting of military service to make sure that all
such service is creditable only to either military retirement
or civilian federal retirement, but both. Other changes also
could be included, such as allowing employees to invest bonuses
in the Thrift Savings Plan (total investments still would be
subject to the annual IRS dollar cap, however).
