S. 507 would provide for retirement equity for Federal employees in nonforeign areas outside the 48 contiguous States and the District of Columbia.
Detailed Summary
Non-Foreign Area Retirement Equity Assurance Act of 2009 or the Non-Foreign AREA Act of 2009 - Revises federal employee locality-based comparability payments provisions to include U.S. territories and possessions, including the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands, within a pay locality. Sets forth maximum rates of pay for Senior Executive Service (SES) personnel in such areas.
Revises the calculation of allowances based on living costs and conditions of environment for pay of employees stationed outside the continental United States or in Alaska to apply it only to areas designated as of December 31, 2009. Provides a formula for adjustment of such rate using a transition schedule for calendar years 2010-2012.
Requires adjustment of special rates of pay determined to be necessary to obtain or retain the services of persons specified by statute in such a cost-of-living area in accordance with regulations to be prescribed by the Director of the Office of Personnel Management (OPM) under this Act. Allows a temporarily raised limitation on the amount of special rates during the transition period of January 1, 2010, to January 1, 2012.
Expresses the sense of the Congress with respect to pay disparities and locality areas for federal positions located in Alaska, Hawaii, or a U.S. territory.
Defines "covered employees" for purposes of this Act, including employees who were eligible, before enactment, to be paid a cost-of-living allowance (COLA) but not a locality-based comparability payment. Describes application of this Act to postal employees.
Allows an employee subject to this Act's transition schedule who retires from service during the period from January 1, 2010, through December 31, 2012, to elect to have any COLA paid during that period considered as basic pay for purposes of annuity computation.
Status of the Legislation
Latest Major Action: 10/14/2009: Placed on Senate Legislative Calendar under General Orders. Calendar No. 179.
Points in Favor
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Points Against
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Visitor Comments
SlpgDragon
May 11, 2009, 11:17am (report abuse)I do not like the idea of ANYONE who works for the Federal Government getting retirement pay if they choose to retire out side of the United States or its Territory's. I fhtis is to be the case then those who are on Social Security Disability or Retirement that are collecting Social Security should be allowed to live anywhere in the world and still collect their benefits as well. All parites concerned paid into
the system and are entitled as was guarranteed by Congress since the establishment of the Social Security System was put into place, but this is not the case. If you are collecting these benefits and you leave the USA, you forfiet your rights to them and are no longer entitled. So why are Federal Employee's any different?
Phil
(logged in user) May 11, 2009, 11:35pm (report abuse)What is fair is fair,thus as the earlier person stated. If you this bill would only be fair if people were able to receive Social Security benefits while living outside of the USA, especially considering we pay into the SS system.
william
May 19, 2009, 1:36am (report abuse)Two States, Alaska and Hawaii, are considered "foriegn" areas where Federal employment is concerned. If they are truly "foriegn" areas, the residents should be exempt from U.S. Income Tax. The same applies to Guam, Puerto Rico and the Virgin Islands.
As U.S. soldiers and other representatives of our country serve and represent us on foriegn soil, so do civilian employees of the Federal Government. When these people return home to the U.S., why are they denied the same benefits as those who never left friends and family?
S.507 and H.R.1266 do not apply outside of U.S. owned territories and States.
Glen
June 3, 2009, 5:32pm (report abuse)I believe the title to this bill causes some miss-understanding.This bill is not about personnel who RETIRE out of the continental US, but for personnel who WORK out of the 48-contiguous states (such as Alaska & Hawaii).Their retirement benefits are currently less than those who WORK on the in the 48 states.
Alaska Resident
July 23, 2009, 4:50pm (report abuse)My husband Has lived and worked in Alaska for 28 years it has one of the highest cost of living anywhere in the United States. When he retires we will lose 20 percent of his income due to the COLA vs Locality pay. Since Cola doesn't count towards retirement. He will have served the people of the United States for 42+ years keeping the planes flying by working and fixing the landing equipment. Why are we penalized because we live outside the Continental UNITED STATES but still live within the US? Why is Alaska considered a State if it is not given the same benifits as other states? Please consider passing this important Bill.
Ken in Juneau
August 1, 2009, 2:24am (report abuse)As a Federal employee now working in Alaska why should we be penalized when employees in the 48 contiguous states get their locality pay included in retirement calculations? Alaska and Hawaii are part of the United States, despite those who would like to think otherwise. This discriminatory practice that excludes us from getting locality pay and giving us a COLA instead should have been corrected long ago. For those complaining, the locality pay would be subject to Federal taxes, while the COLA right now is tax free. We would be paying taxes on that money. We are only asking for the same benefit the "rest of the US" is already receiving. The bill says "Non Foreign" and we are citizens of the United States just like those in the rest of the country. Please do what is just and fair and pass the law to correct this. We are not asking for preferential treatment. We are only asking to be treated equally.
Reed in Skagway
October 3, 2009, 11:17pm (report abuse)This is the right thing to do, and long overdue. Even OPM sees that. The Senate passed this measure unanimously last year in Sept. The House has already passed the measure this spring. There appears to be little opposition from anyone who actually knows anything about the issue. The holdup appears to be in the political timing. But please... please, if anyone in Congress is reading this, please stop trying to finesse this, and just do the right thing now. The problem can be corrected by the House-Senate Conference Committee for the 2010 Defense Appropriations Bill. The last one third of my 34 years of federal service has been in our 49th state. There's simply no reason to punish me, and others like me, for also making Alaska my home.