The House Ways and Means Committee yesterday approved a bill that would solve the problems of federal workers covered by the wrong federal pension plan.
The bill would let federal government workers switch plans and would require federal government agencies to make retroactive contributions. It also would ensure retirement plans do not get dunned by the IRS because of law changes; that plan participants whose retirement accounts are adjusted do not have to pay taxes on the additional money; and the money transferred from one plan to another is not subject to payroll taxes.
Federal workers usually participate in the Civil Service Retirement System or the Federal Employees Retirement System. They may also receive Social Security coverage.