Central Louisiana News

U.S. Senator Bill Cassidy and Representative Dan Newhouse have introduced two bills aimed at addressing telework policies and pay bonuses for federal employees. The Federal Employee Return to Work Act proposes that certain federal employees who telework at least one day a week should not receive raises and special locality bonuses if their office is located in a high-cost area, despite them working from home. Meanwhile, the Federal Employee Locality Accountability in Retirement Act aims to exclude locality bonuses when calculating retirement payments for those enrolled in the Federal Employees Retirement System (FERS).

Senator Cassidy expressed his concerns about current practices, stating, “Federal employees get paid extra to work in higher-cost cities. But why should they get paid that rate if they don’t go into work and live somewhere other than D.C.? If you don’t show up for work, your pay should reflect that.”

Representative Newhouse echoed these sentiments, adding, “For the last four years, D.C. bureaucrats have abused telework policies and exploited locality bonuses while our federal agencies’ buildings sit empty. This legislation is very clear; show up to where you are being paid to work so we can end this abuse of taxpayer dollars.”

The U.S. Government Accountability Office reported that 17 out of 24 federal agencies were using 25% or less of their headquarters capacity as of early 2023. Some agencies, such as the Social Security Administration and the Department of Housing and Urban Development, were found to be on average 91% vacant while still providing a 16.44% locality bonus compared to other areas.

The calculation of FERS benefits involves considering an employee's highest three consecutive years of base pay. Those receiving higher locality pay during their service also receive increased retirement benefits. Currently, nearly 1.2 million retired civil servants are benefiting from FERS annuities with an average monthly payout of $2,126.

Senator Cassidy has been vocal about his stance on having federal employees return to office settings post-COVID-19 precautions. He has questioned U.S. Department of Health and Human Services Secretary Xavier Becerra regarding their department’s telework policies and demanded clarity on staff return timelines.