S. 2197, Optional Early Retirement Program for Federal Employees

Published: May 15, 1986. Publicly Released: May 15, 1986.

Additional Materials:


Office of Public Affairs
(202) 512-4800

Testimony was given concerning early retirement for federal employees. GAO noted that S. 2197, a bill to establish temporary early retirement, would: (1) allow employees of a certain age with a specific number of service years to retire on immediate annuities; (2) reduce benefits by 2 percent for each year under age 55; (3) be available for a 6-month period ending December 31, 1986; (4) apply to all federal retirement systems; (5) restrict eligibility for employees in hard-to-fill positions; and (6) not allow agencies to replace early retiring employees until October 1991 but would allow internal promotions to fill vacant positions. GAO also noted that: (1) the bill would not be limited to federal agencies that are implementing employment reductions; (2) over 700,000 employees would be eligible; (3) Congress is considering changing the taxes on federal pensions, which might act as an additional incentive for employees to take advantage of the early retirement plan; (4) the plan would minimize the reductions in force (RIF) that some agencies are experiencing and would, therefore, save jobs for recently hired employees; (5) more promotion opportunities would exist for younger employees; and (6) the government could save billions of dollars if the retiring employees are not replaced. GAO found that: (1) if many employees retire without replacements, it could adversely affect agencies' programs; (2) training costs for the large number of new employees would increase; and (3) the bill applies to anyone wishing early retirement and could result in mass retirements in some agencies. GAO held that: (1) Congress should waive, for a limited period, the RIF requirement for approval of early retirements so that selected groups of employees could seek early retirement; and (2) agencies should show that early retirements would not adversely affect their programs and would be cost-efficient for the government.

Jan 8, 2018

Oct 18, 2017

Aug 24, 2017

Jul 20, 2017

Apr 24, 2017

Dec 20, 2016

Nov 21, 2016

Sep 14, 2016

Sep 8, 2016

Looking for more? Browse all our products here