Language was included in the bill to rollback the higher retirement contribution rates that federal employees have been paying as part of a deficit reduction initiative. Employees did not benefit from the higher contributions. New employees may rollover funds from a qualified private sector retirement plan into the TSP account, and current waiting periods to participate in the TSP are eliminated. Percentage of salary contribution limits will also be phased out, allowing employees to invest the maximum contribution to the TSP under current tax law. While I believe these initiatives are a step in the right direction to address the interests of the federal employee workforce, I also recognize that there are other major concerns to current employees and related issues adversely affecting recruitment and retention efforts in the federal government.
Pay remains one of the foremost areas of concern for federal employees.
It is estimated that over the next five years, over half the federal workforce will be eligible for retirement. Pay is noted as one of the major disincentives for individuals to consider a job with the government. In addition, I am deeply concerned about increases in Federal Employee Health Benefit premiums in recent years. OPM, in consultation with members of Congress, is working on initiatives to prevent such high cost increases in the future. These are just some of the issues impacting the federal workforce that will be addressed during the 107th Congress.