Healthier and wealthier
A key House subcommittee passes legislation allowing federal retirees to pay health premiums with pre-tax dollars.
On July 16, the House Government Reform Subcommittee on Civil Service and Agency Organization approved H.R. 1231, legislation aimed at amending the Internal Revenue Code and converting the health insurance premiums of retirees and active duty military employees to pre-tax income.
"Let me make clear what we are doing here," Rep. Jo Ann Davis, R-Va., said after the subcommittee passed the bill on voice vote. "We are cutting taxes for retired federal employees, most of whom live on modest, fixed incomes. As we heard last week, this legislation will save the average retiree about $430 a year-that's a significant amount, given that their health premiums have jumped by an average of 10 percent over the past five years."
Federal employees have been able to use pre-tax dollars to pay for their health care premiums for more than two years.
The bill was sponsored by House Government Reform Committee Chairman Tom Davis, R-Va., who introduced similar legislation in previous congressional sessions. Those bills never made it out of the House Ways and Means Committee. Davis' leadership position may help the bill develop legs and make it to the House floor this year.
"Our work does not end here today, but this is a good start, and good news for the entire federal family," said Rep. Jo Ann Davis, who is chairwoman of the Civil Service and Agency Organization Subcommittee.
Sen. John Warner, R-Va., has introduced a similar bill in the upper chamber.
Transit Boost
The subcommittee also passed H.R. 1151, legislation that would require the federal government to offer full transit subsidies to all eligible federal employees in the Washington metropolitan area.
"Everyone in this room understands the nightmare of Washington traffic, and if the federal government can play a role in getting more cars off the road, then it should," said Rep. Jo Ann Davis, R-Va., when the subcommittee approved the legislation.
Federal agencies began offering transit subsidies to employees in the Washington metropolitan area in October 2000 as a result of an executive order from President Clinton. Initially the maximum amount employees could receive was $65 a month, but in January 2002 the ceiling was raised to $100 a month.
The legislation also allows agencies to shuttle employees to and from Metro stations or bus stops. Several government agencies operate shuttle services in the Washington downtown area, transporting federal employees from agency to agency.