Congress is starting to look at possible changes to financial protections, retirement payments, and insurance choices for federal workers and retirees.
Over the past few weeks, lawmakers in the House and Senate have put forward four separate bills that tackle various financial and benefits concerns affecting federal employees across the government:
Optional disability coverage
For example, a bill introduced by Representative Eleanor Holmes Norton (D-D.C.) aims to broaden short-term disability insurance options for federal workers.
Known as the Federal Employee Short-Term Disability Insurance Act, the proposal would offer voluntary insurance to federal employees dealing with temporary injuries, caring for a family member, or welcoming a new child through birth, adoption, or foster care. Under the plan, employees who choose to participate would cover the full cost of premiums themselves and could collect benefits for as long as one year.
Norton, who brought the bill back on May 11, pointed out that many private sector employers already offer short-term disability coverage to their workers. She argued that federal employees deserve the same access.
While federal workers can qualify for disability benefits if they suffer a permanent disability, Norton noted that they must wait until they’ve been employed by the government for 18 months before becoming eligible.
“When Americans are already finding it hard to cover basic expenses, there’s every reason to let our federal employees use the government’s buying power to secure the most affordable short-term disability coverage possible — at no expense to taxpayers,” Norton said.
The legislation would direct OPM to partner with insurance providers to set up the program and start delivering benefits. It would also prohibit insurers from denying coverage to federal employees or charging them more because of preexisting health conditions. The bill has been sent to the House Oversight and Government Reform Committee for review.
Safeguarding credit during shutdowns
Senate Democrats have put forward a bill designed to protect federal workers’ credit histories from damage caused by a government shutdown. The Federal Worker Credit Protection Act would prevent federal employees’ credit scores from taking a hit due to missed payments during a funding gap.
This safeguard would remain in place for 30 days after the funding gap ends. Affected workers would also be able to go back and fix any penalties already recorded on their credit reports.
The lawmakers who introduced the bill on May 1 said the measure would help federal employees, many of whom miss paychecks during shutdowns, causing financial stress and sometimes forcing them to fall behind on bills.
Sen. Mark Kelly (D-Ariz.), one of the bill’s lead sponsors, said the idea came after he spoke with TSA employees who went through serious financial hardship during the 76-day Department of Homeland Security shutdown earlier this year.
“They told me about the financial pressure they faced — including missed payments — and how it damaged their credit scores. That kind of harm can stick with you for years,” Kelly said. “Federal workers shouldn’t suffer the consequences of a government shutdown that’s beyond their control.”
Federal employee unions, including the American Federation of Government Employees and the National Federation of Federal Employees, have voiced their support for the Senate bill.
“The unfortunate truth is that repeated funding gaps can cause lasting damage to federal workers, even well after the government reopens,” said AFGE National President Everett Kelley. “Simply providing backpay, as the law currently requires, does nothing to repair the unfair harm done to their credit standing, their reputation, and their sense of dignity.”
Fixing pension gaps for retirees
Another bill in the works aims to fix pension errors affecting certain federal retirees who fell victim to a “damaging loophole” during last fall’s government shutdown.
The bipartisan Pensions for Retired Uniformed Servicemembers Act, introduced by Reps. Jamie Raskin (D-Md.), Don Bacon (R-Neb.), and Maxine Dexter (D-Ore.), would allow the Defense Department’s Military Retirement Fund to continue paying certain additional retired service members during any future funding gap.
Other uniformed service retirees already have guaranteed annuity payments during shutdowns. But the lawmakers behind the bill said it closes a gap that left nearly 8,000 retirees from the NOAA Commissioned Officer Corps and the U.S. Public Health Service Commissioned Corps without their pensions.
“NOAA Corps and USPHS Commissioned Corps officers have given so much to protect the health and safety of Americans through decades of public service,” Raskin said. “Our bipartisan bill ensures these dedicated public servants receive the pensions they’ve earned, so they don’t go hungry or struggle to keep up with rent or mortgage payments during a shutdown.”
The legislation would modify the retirees’ pension arrangements and guarantee that retirement payments continue without interruption during future funding gaps for thousands of NOAA and USPHS retirees.
Broadening the PACT Act
Lastly, a newly introduced bill aims to extend PACT Act benefits to civilian federal workers — such as law enforcement officers and national security staff — who develop toxin-related illnesses but currently don’t receive the same protections that veterans do.
The bipartisan Renewing Our PACT Act, sponsored by Reps. Nellie Pou (D-N.J.), Brian Fitzpatrick (R-Pa.), and Celeste Maloy (R-Utah), along with Sen. Kirsten Gillibrand (D-N.Y.), seeks to address that gap. If passed, the bill would grant certain civilian federal employees the same presumption of exposure that veterans already receive under the PACT Act.
“While Congress stepped up for veterans through the PACT Act in 2022, these civilian workers are still left out of that system and must prove a direct connection between their illness and their exposure — a burden that’s often impossible to satisfy years after the fact,” the lawmakers said. “As a result, claims are frequently denied, leaving workers and their families without the care or support they need.”
The bill would expand the PACT Act to establish a presumption of exposure to specific illnesses for civilian employees who were also exposed to toxic burn pits during overseas service. In many instances, this exposure has been tied to cancer.
The legislation would further require the Labor Department to deliver a progress report to Congress one year after the bill becomes law, outlining how the changes have been carried out and how many workers qualify for the benefit.
To reach this reporter regarding recent developments in the federal government, send an email to drew.friedman@federalnewsnetwork.com or connect on Signal at drewfriedman.11
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