Under current IRS rulings, an individual is generally not permitted to both work and draw a benefit. Congressman Pomeroy s proposal would represent, therefore, a significant shift in policy. Advocates of partial retirement argue that it gives employers a carrot to encourage older workers who wish to retire, but whose skills are needed, to stay on the job. In addition, partial retirement would ease the expected future labor shortage caused by the baby boomers retirement. They also contend that partial retirement is helpful for employees, who may enjoy work, but want to cut back the number of hours they work.
Opponents question the effect of partial retirement on pension funding.
Finally, opponents fear that taxpayers will perceive public employees who both work and draw a pension as double dippers. The publication explains IRS redefining of its business practices and its desire to deliver improvements in service and productivity. The idea appears to be that a single unit will handle a problem from beginning to end. This division will house the Employee Plan Division that currently has jurisdiction over state and local government plans and will continue to do so under the modernization. According to IRS staff, the current location of activities will not change.