The House Subcommittee on Civil Service yesterday approved legislation to allow employees of the Federal Reserve Board of Governors who joined after Jan. 1, 1984, to take retirement savings with them when they move to other federal jobs. The legislation, introduced by subcommittee Chairman Rep. Joe Scarborough, R-Fla., earlier this week, passed without amendments. The subcommittee also approved legislation to eliminate the one-year waiting period for federal employees to participate in the federal Thrift Savings Plan. It also would let new federal workers roll over their retirement assets from private sector plans to the TSP.
Both bills go to the full committee in early March, where approval is expected.
The Federal Reserve bill is "almost at the level of a technical correction, said Edward J. Lynch, senior research director for the subcommittee. "I dont expect any controversy.
The thrift savings plan legislation should also pass because a provision lifting the amount federal workers could contribute to the TSP was removed. That provision was estimated by the Congressional Budget Office to cost the federal government about $1 billion over five years in forgone tax revenues, Mr. Lynch said.