H.R. 4363, Federal Employee Phased Retirement Act

Cost Estimate
May 18, 2012

As ordered reported by the House Committee on Oversight and Government Reform on April 18, 2012

H.R. 4363 would allow eligible federal employees to enter into a phased retirement, during which they continue to work part time while drawing a partial salary and a partial civil service retirement annuity. The bill also would allow participating employees to contribute to their Thrift Savings Plan (TSP) accounts any payment received at retirement for accumulated and accrued annual leave.

CBO estimates that enacting the legislation would decrease direct spending by $427 million and increase revenues by $24 million over the 2013-2022 period. Pay-as-you-go procedures apply because enacting the legislation would affect direct spending and revenues. Implementing H.R. 4363 would decrease employer contributions to retirement accounts, thus reducing discretionary spending for those activities; such reductions in spending would be subject to future appropriation actions consistent with the bill.

H.R. 4363 contains no intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would impose no costs on state, local, or
tribal governments.