Credit for post-1988 temporary service

Full Title:
Federal Retirement Fairness Act

Summary#

This bill would change federal retirement rules so that temporary civilian service performed after December 31, 1988, can count toward retirement under the Federal Employees Retirement System (FERS). It removes a date limit in current law that now excludes most temporary service performed after 1988. The stated broad goal is to let more temporary federal work be treated as creditable service for retirement.

  • Main change: removes the phrase that limited creditable temporary service to service performed before January 1, 1989, so temporary service after that date may be creditable under FERS.
  • Who it covers: the change applies to people who are federal employees or Members (as those terms are defined in law) on or after the bill’s enactment. It also explicitly mentions temporary employees of the U.S. Postal Service.
  • Payment to count service: the bill directs the Office of Personnel Management (OPM) to notify people who become eligible to make a deposit so that the service will count toward their retirement (this implies a deposit/payment is needed).
  • Implementation: OPM must write regulations to carry out the change and must notify agency human resources officials so they can tell affected workers.
  • What is unclear: the text does not clearly say how deposit amounts, interest, or deadlines for making deposits will be calculated, or whether former employees who are not currently federal employees would be eligible.

What it means for you#

  • Temporary federal workers (current employees): If you worked in a temporary federal job after 1988 and you are a federal employee when the law takes effect, this could allow that past temporary time to count toward FERS retirement if you make any required deposit. That could help you reach length-of-service thresholds for benefits or increase your annuity calculation.
  • Former temporary workers who are not federal employees now: It is unclear from the bill whether people who left federal service before enactment can use this change. The bill’s application language focuses on people who are employees or Members on or after enactment.
  • Postal Service temporary employees: The bill explicitly includes temporary U.S. Postal Service workers in who may get this credit.
  • Members (as legally defined): The bill mentions “Members” as defined in existing law; this likely means persons in certain legislative roles, but the bill does not spell out who that covers.
  • Human resources and agency officials: Agencies must receive notice from OPM and will need to inform eligible employees and handle deposit processing once OPM issues regulations.
  • Retirement planning: If your temporary service becomes creditable, you may be able to buy service credit (by paying a deposit) that could affect your retirement eligibility and annuity amount. Exact effects will depend on OPM rules and how deposits are calculated.

Expenses#

No publicly available information.

  • The bill itself does not include a fiscal note or cost estimate in the provided material.
  • Reasonable inferences (not stated in the bill): allowing more service to count could raise future retirement payments for some people, and OPM and agencies will likely face administrative costs to notify employees, create and run processes, and write new rules. If employees make deposits, those deposits bring revenue that offset some cost, but the net fiscal impact is not specified.
  • The bill does not detail how deposit amounts, interest, or timing will be set; those details can change the fiscal effect.

Proponents' View#

  • The bill appears intended to correct a long-standing rule that excluded most temporary service after 1988 from counting for FERS.
  • A possible argument for the bill is that it makes retirement rules fairer for people who did temporary federal work after 1988 by letting that time count toward benefits.
  • The bill provides a clear administrative path by directing OPM to notify agencies and write regulations, so eligible employees can be told how to make deposits to buy credit.
  • Including Postal Service temporary employees explicitly broadens the benefit to a defined large group of workers.

Opponents' View#

  • One concern is cost: the bill does not provide a fiscal estimate, so it is unclear how much additional retirement spending the change might trigger over time.
  • The bill does not explain technical details such as how deposit amounts, interest, or deadlines will be calculated; that could create uncertainty for affected workers and for budgeting.
  • It is unclear whether former temporary workers who are not employed at enactment would be eligible. That lack of clarity could lead to disputes or extra administrative work.
  • Expanding creditable service retroactively to 1989-forward service may raise complex record-keeping and verification challenges for agencies verifying past temporary service.