Certain adjustments to financial security, annuity payments and insurance options for federal employees and retirees are in the beginning stages of consideration in Congress.

Four bills that House and Senate lawmakers have introduced over the last few weeks aim to address a range of monetary and benefits issues across the federal government:

Voluntary disability insurance

One bill from Congresswoman Eleanor Holmes Norton (D-D.C.), for instance, seeks to expand short-term disability insurance options for federal employees.

The legislation, called the Federal Employee Short-Term Disability Insurance Act, would provide optional insurance to federal employees, in cases of short-term injuries, caretaking for a family member, or the birth, adoption or fostering of a child. If enacted, federal employees who opt into the program would pay 100% of the premiums and have the ability to receive benefits for up to one year.

Norton, who reintroduced her bill on May 11, said many private sector companies make short-term disability insurance available to their employees. She said she believes federal employees should have access to the same options.

Federal employees can receive disability benefits if they become permanently disabled, but Norton said employees are not eligible for those benefits until they have worked for the government for 18 months.

“At a time when Americans are already struggling to afford necessities, there is every reason to allow our federal employees to take advantage of the federal government’s purchasing power to obtain the most reasonable price for short-term disability coverage, at no cost to the federal government,” Norton said.

The bill would require OPM to contract with insurance companies to create a program and begin providing benefits. The legislation would also bar insurance companies from excluding federal employees or charging higher premiums based on preexisting conditions. The bill has been referred to the House Oversight and Government Reform Committee for further consideration.

Credit protection during shutdowns

Senate Democrats recently introduced legislation that would protect federal employees’ credit histories from potential impacts during a government shutdown. The Federal Worker Credit Protection Act would shield federal employees’ credit scores from negative consequences of any missed payments they incur during a funding lapse.  

The protection would apply for an additional 30 days after a funding lapse ends. Impacted federal employees would also be able to retroactively correct existing penalties on their credit reports.  Lawmakers who introduced the bill May 1 said the protection would support federal employees, many of whom have to endure missed paychecks during government shutdowns, leading to financial strain and in some cases missed payments on bills.

Sen. Mark Kelly (D-Ariz.), one of the bill’s original co-sponsors, said he chose to introduce the legislation after meeting with Transportation Security Administration workers, many of whom faced significant financial difficulties during the 76-day Department of Homeland Security shutdown this year.  “They shared how the financial strain they were dealing with — including missed payments — hurt their credit scores. That kind of damage can follow you for years,” Kelly said. “Federal workers shouldn’t be punished by a government shutdown that isn’t their fault.”  

Federal unions and organizations including the American Federation of Government Employees and the National Federation of Federal Employees have expressed support for the new Senate legislation.  “The sad reality is that all-too-frequent agency funding lapses can permanently harm federal workers, long after the government eventually reopens,” AFGE National President Everett Kelley said. “Simply giving people backpay, as current law requires, does nothing to undo the undeserved damage to their credit ratings, their good name and their dignity.”

Correcting certain retirement pensions Another pending bill seeks to correct pension-related errors for certain federal retirees who were impacted by a “harmful loophole” during the government shutdown last fall.  The bipartisan Pensions for Retired Uniformed Servicemembers Act from Reps. Jamie Raskin (D-Md.), Don Bacon (R-Neb.) and Maxine Dexter (D-Ore.) would allow payments from the Defense Department’s Military Retirement Fund to cover certain additional retired service members during any future funding lapse.  

Other uniformed service retirees are already guaranteed continued annuity payments when shutdowns occur. But lawmakers who introduced the legislation said it will correct a loophole that impacted pensions for close to 8,000 retired service members from the National Oceanic and Atmospheric Administration Commissioned Officer Corps and the U.S. Public Health Service Commissioned Corps.  “NOAA Corps officers and USPHS Commissioned Corps officers have made immeasurable sacrifices for the health and safety of our people over decades of public service,” Raskin said. “Our bipartisan legislation will mean these patriots will get the pensions they earned so they don’t go hungry or struggle to pay their rent or mortgage during a government shutdown.” 

The bill would adjust the retirees’ pensions, and ensure retirement payments continue uninterrupted during future government funding lapses for thousands of retired service members from NOAA and USPHS.

Expanding the PACT Act

Finally, another recent bill seeks to expand PACT Act benefits to cover civilian employees, such as law enforcement officers and national security personnel, who face toxin-related illnesses, but who currently do not receive the same coverage currently available to veterans.

The bipartisan Renewing Our PACT Act from Reps. Nellie Pou (D-N.J.), Brian Fitzpatrick (R-Pa.) and Celeste Maloy (R-Utah), as well as with Sen. Kirsten Gillibrand (D-N.Y.), seeks to correct that disparity. If enacted, the legislation would make certain civilian federal employees eligible for the same presumption of exposure that’s guaranteed to veterans under the PACT Act.

“While Congress acted to support veterans through the PACT Act enacted in 2022, these civilian workers remain outside that system and must prove a direct link between their illness and exposure, a burden that is often impossible to meet years later,” lawmakers said. “As a result, claims are routinely denied, leaving workers and their families without care or support.”

The bill would build on the PACT Act to create a presumption of exposure to certain illnesses for civilian employees who also faced exposure to toxic burn pits while serving overseas. In many cases, this exposure has been linked to cancer.

The legislation would also require the Labor Department to submit a progress report to Congress one year following the bill’s enactment, describing implementation of the changes, and how many employees are eligible for the benefit.

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