The Pension Problem at AFSS
by Randy Lueders
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One outstanding issue arising from the FAA’s 2005 Flight Service outsourcing is that many employees were shorted on crediting their Federal “good time” as it counts towards Air Traffic pensions and benefits.
Some Federal employees are recognized under special pension laws for the unique demands associated with their jobs and specialized skills not easily transferable to the private job market. FAA employees defined under Air Traffic Control job codes, such as Flight Service, fall into this “good time” special pension category. These FAA employees contributed a higher than average percentage of pay to fund and participate in this special pension. The higher payout formula, along with other benefits, is why people took these jobs to begin with. They were hiring incentives by any other name.
These incentives are typically not adjustable and legally placed beyond the reach of Federal employers. Traditionally, employees covered by special pensions have been guaranteed opportunities to collect on their investment. But, AFSS’s unforeseen early separation from Federal career service has exposed a shortfall in “safety net” provisions.
The default safety net pensions are the Discontinued Service and – the typically voluntary – Deferred Annuity options. These options reflect annuity calculations in place before creation of our newer special pensions, and equitably govern most Federal employees. Unfortunately, the oversights discovered by AFSS employees are that the options payout, or credit, only the lesser, standard amounts towards non-specialized service.
AFSS employees kept their part of the bargain. They deposited their time, gave higher salary contributions and the FAA allocated higher set-asides. Furthermore, AFSS employees subjected themselves to stressful physical and mental requirements and committed themselves to unique skills. Now, we’ve been told – due to outsourcing and no fault of our own – to “cash out early and hit the road.” Oh, and by the way, the Federal government is “sorry” but you’ll be getting less than agreed to at sign on.
What's Being Done to Fix the Problem
Our strategy is to partner our grassroots efforts with the professional lobbying team at the IAM and leverage the IAM’s political clout to get things done. This “oversight” must be fixed through legislation because the FAA and OPM have limited authority to grant special pensions. Updating annuity calculations, appropriations, and revisiting authorizing opportunities, must be done at the legislative level.
The win-win resolution to this problem would be to continue providing flight services, support the government contract and receive fair credit and payout for what we’ve invested and earned. Reinventing the wheel is unnecessary. Modifications to our special pension laws have already been found necessary for certain management employees and others. Implementing portability of our special “good time” years served combined with adjusted annuity calculations could be specifically addressed to us. Indexing-up Deferred Annuities for inflation is another option and widely supported by other labor organizations.
The ground has already been broken on special rehire programs. True implementation towards Federal priority rehire programs, with reasonable pay and benefit reinstatement, can be extended to us – if the support is there. We’ve already missed out on a few thousand “special covered placements” while the FAA hired from the street first. Washington sources are actively investigating whether all our rights were observed, and what can be improved upon.
What You Can Do
As “public trust” employees, we’ve all been screened for “integrity.” It’s no coincidence that some of the best people you’ll ever meet are found in Flight Service. Your actions and your keen perception of right and wrong determine your integrity and character.
Contact your Congressional Representatives. Let them know we’ve waited two years for corrective action. Let them know that priority programs have expired. Our supporters on the Hill need to know they are not Lone Rangers on this issue. The “noise” caused by the upcoming election cycle and pressing domestic and international issues makes it imperative that we be persistent and clear so our voices are heard in the commotion. Help yourself and help your brothers and sisters, call or write today and be part of the solution.
For a Congressional Directory please link-over to the IAM’s Machinists Non-partisan Political League. Contacting congress costs nothing be a couple minutes of your time so call today! If you send an email or a letter, please send a copy to Steven Hantzis, IAM Grand Lodge Representative at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or fax to (301) 967-4593.
