Reply to Family and Friends letter to VA Secretary Anthony Principi, from Dennis M. Curley, Director HRM Programs and Policies (051)
September 18, 2001
Dear Ms. Karas:
Your letter to Secretary Principi concerning nurses' benefits from the Department of Veterans Affairs (VA) has been referred to my office for reply.
Based on Public Law 97-72, which was enacted on November 3, 1981, Title 38 nurses are not permitted to receive full-time retirement credit for their part-time work. A number of concerns have been expressed about the Title 38 annuity calculation for part-time service because it is not comparable to the annuity calculation applied to Title 5 employees who have performed part-time service. The greatest difference is that the proration factor used in the Title 38 part-time annuity computation spans the employee's entire career. Under Title 5, the proration factor is determined by prorating all part-time service performed after April 6, 1986. Both of these calculation provisions are required by law.
VA believes there should be parity in the treatment of part-time service for Title 38 and Title 5 employees for retirement purposes. As you know, President Bush's Administration is seeking a comprehensive resolution to this issue and that there are a number of legislative proposals which have been introduced in Congress that address the subject of part-time annuity calculations. We cannot predict what action, if any, Congress will take on these proposals.
I hope this information is helpful. If you have any questions regarding this matter, please contact Rod Meader of my staff at (202) 273-9837.
Sincerely yours,
Dennis M. Curley
Director
HRM Programs and Policies (051)