Federal Retirement Fairness Act

The Federal Retirement Fairness Act would modify how the federal government calculates retirement benefits for certain employees. Currently, federal employees who start in temporary positions cannot count that time toward their retirement under the Federal Employees Retirement System (FERS). This bill would change that rule by allowing service in temporary positions after December 31, 1988, to count as creditable service toward retirement.

The bill would particularly affect federal workers, including postal service employees, who began their careers in non-career or temporary positions before transitioning to permanent career status. These employees would have the option to make catch-up contributions to purchase retirement credit for the time they spent in temporary roles. For example, postal workers who started as casuals, transitional employees, or city carrier assistants could buy back that service time to increase their retirement benefits.

If enacted, the bill would require the Office of Personnel Management to develop regulations and notify federal agencies about the new rules. The legislation has bipartisan support with 122 cosponsors in the House. The bill has passed the House and now moves to the Senate for consideration. Estimates suggest it has a 12 percent chance of becoming law.