You've probably heard all the fuss surrounding the retirement open season--will it happen, or won't it. But now it's official.
The Clinton Administration has acknowledged that Congress isn't going to go along with its request to cancel an open season allowing employees currently in the Civil Service Retirement System to transfer to the Federal Employees Retirement System. So from July 1 to December 31, CSRS employees will have a one-shot chance to shift into FERS.
Those eligible for the open season opportunity should receive an official notice of the transfer option and copies of the FERS election form by mid-June, according to the Office of Personnel Management.
OPM has set up a Web site providing detailed information for those faced with the choice.
The "quick decision" section of the site describes several retirement situations. All you have to do is find the scenario that matches yours, then click on the "tell me more" button to help you make a sound retirement choice. If you don't want to spend a lot of time pondering all of the variables in the CSRS-FERS decision, this section is for you.
For those who want more detail, the site offers a FERS transfer model, allowing users to plug in personal data and generate comparisons of projected benefits under CSRS and FERS. Employees can also check under the frequently asked questions section or go to the glossary to find more information on the nitpicky aspects of the switch.
Perhaps the most useful item on the site is the FERS Transfer Handbook, which explains CSRS, CSRS Offset and FERS in detail. There are specific sections written for special employee groups, such as air traffic controllers or military reserve technicians.
Clinton used his line-item veto power last year to cancel the CSRS-FERS switch after it was included in an appropriations measure. Administration officials had estimated the proposal would cost agencies $854 million over five years. The National Treasury Employees Union filed suit, claiming both that the line-item veto law is unconstitutional and that Clinton exceeded his statutory authority in vetoing the retirement measure.
A federal judge later approved an agreement between NTEU and the Justice Department to rescind President Clinton's line-item veto. The administration then asked Congress to rescind the open season in its fiscal 1999 budget proposal, but Senators and Representatives showed no interest in undoing the legislation.
Officials estimate that 1 percent of the federal workforce eligible to switch from CSRS to FERS will make the move.