S.42, Optional Early Retirement Program for Federal Employees

GAO discussed a bill which would authorize a temporary governmentwide early retirement opportunity for federal civilian employees. GAO noted that the bill would: (1) allow employees who met specific age and service time criteria to retire on immediate annuities; (2) exclude certain employees in designated positions; (3) not allow agencies to replace employees who retired early; (4) considerably expand the pool of individuals eligible for early retirement; and (5) exempt the Postal Service from the hiring limitation. GAO also found that: (1) approximately 600,000 civilian employees could elect early retirement under the bill; and (2) an estimated $3 billion in payroll savings could be realized over the next 4 years. GAO also noted that Congress may wish to consider: (1) coupling the expanded early retirement authority with reductions in agencies' programs during the budget reconciliation process; and (2) making the provisions regarding retirement eligibility and restrictions permanent for better management of future work-force reductions.