Louis Stokes: “I rise in support of H.R. 3345, the Federal Workforce Restructuring Act. The administration's goal is to reduce the size…”

“I rise in support of H.R. 3345, the Federal Workforce Restructuring Act. The administration's goal is to reduce the size of the Federal work force by 100,000 in 1994--on the way to eliminating 252,000 positions over 5 years. Currently, an estimated 40 percent of Government employees, including the Department of Defense, have the option to take a $25,000 voluntary separation incentive. As most of us are aware, Defense managed to buy out 30,000 employees last year by offering payments of as much as $25,000. This greatly reduced the number of employees to be fired. Most of the people offered buyouts were either eligible for regular retirement--at age 55 with 30 years of service, age 60 with 20 years or age 62 with 5 years--or early retirement--at age 50 with 20 years of service or any age with 25 years. Many early retirees apparently felt that the buyout offset the pension reduction they took for leaving before age 55. The administration had hoped that reducing the work force could be accomplished through attrition. However, the Federal Government has been experiencing a very low turnover rate. Thousands of retirement-age workers are waiting for buyouts, while an equal number of younger workers see the buyout as a job-saving plan. Unless this option is extended to the rest of the Federal work force, the administration might not be able to reach its employment reduction goals without massive layoffs.”