Plan to Allow Feds to Keep Frequent Flier Miles

General Accounting Office officials are looking into the idea of allowing federal employees to keep the frequent flier miles they earn on business travel. "We just want to see if we can identify the various issues to see if it might be a good idea," says John Anderson, managing director for physical infrastructure issues at GAO.

Anderson is working with a group charged with identifying the cost of such a change. The group plans to submit a report to Rep. Dan Burton, R-Ind., chairman of the House Committee on Government Reform, this month.

Although most federal employees are not allowed to use frequent flier miles earned during business travel for personal travel, some agencies have programs that allow employees to share in frequent flier savings. Under such programs, miles must be used for official travel, but employees can keep some of their agencies' savings. The General Services Administration and the Food and Drug Administration, among others, have gain-sharing programs.

GAO Comptroller General David Walker floated the idea of letting employees keep their miles in February testimony before the Senate Governmental Affairs Subcommittee on Oversight of Government Management, Restructuring and the District of Columbia. Walker said allowing employees to keep the perks is just one of many actions that could be used to offset the effects of expected retirements.

More than a third of the federal workforce will be eligible for retirement in the next four years, and agencies don't have plans in place for replacing lost employees, Walker said.

"[It's a] small benefit, but one that private sector employers commonly provide their people as part of a mosaic of competitive employee benefits," Walker told senators.

The Defense Department also is working on a plan to allow all federal workers (not just Defense employees) and service members to keep frequent traveler benefits for personal use. The department will be forwarding a similar proposal as part of its omnibus legislation for the second time this year.