The legislation would calculate CSRS benefits for all part-time service according to the formula that is currently used to determine benefits for service performed on or after April 7, 1986. The legislation also contains a hold-harmless provision to ensure that no one receives a smaller annuity under the proposal than they would get under current law. Depending on an individual employee’s work history, benefits for those retirees could be more than 30 percent higher than they would be if calculated under the current formula.
The change is considered important to encouraging employees to phase into retirement-potentially beneficial to both themselves and their employing agencies-by switching to part-time work late in their careers, which the current law discourages.
Cost could be a factor, however. The Congressional Budget Office has estimated that this provision would cost $3 million in 2005, $53 million over the 2005-2009 period, and $162 million over the 2005-2014 period.
The committee also said it wants to put in law a policy-carried out by tradition, but not statute-of making time at military service academies creditable for civil service retirement calculations.