Prior to 1980, all federal civil service pensions were calculated the same way. In 1980, at the request of the Department of Veterans' Affairs (DVA), Congress changed the way that pensions were calculated for Title 38 employees comprised of doctors, dentists, and registered nurses (P.L. 96-330, Sec. 114). The change retroactively and prospectively reduced their retirement income. The 1986 COBRA (Consolidated Omnibus Budget Reconciliation Act (P.L. 99-509, Sec. 7003) changed the method for calculating pensions for all other federal employees, however, unlike Title 38 employees, their previously earned credit for time was "grandfathered".

The time portion of any federal employees' pension prior to 1980 was calculated in such a way that an employee could work part time except for working full time during the final three years, and receive a pension comparable to a person who had worked full time for their entire career. The DVA did not want their part time physicians, who also had full time outside practices and teaching positions, from getting a full civil service pension. When the law was changed, by saying that the calculations for Title 38 were changed, registered nurses who did not have have full time jobs and who often worked shifts for which they did not earn credit for their time, also had their pensions reduced.

From the 1950 until 1980 the DVA made a management decision to enhance recruitment and retention in some VA hospitals by hiring registered nurses to work part time positions on evenings, nights and weekends. It allowed nurses to work more stable shifts, day shifts, and to have weekends off. In addition, 86% of nurses at that time were diploma trained and the American Nurses' Association who certified them, encouraged them to "professionalize" by getting college degrees. The VA told their diploma nurses that without a degree, their status would change and they would be demoted in favor of nurses with degrees. Therefore, career registered nurses, took a pay reduction and worked part time while they went to college, and cared for their families.

Due to the new law (P.L. 107-135), nurses who had worked some part time schedules prior to 1986, and were still employed by the DVA on January 23, 2002, had their pensions restored, leaving nurses who retired before the new law was signed, as the only federal retirees with prorated pensions. Their retirement income is further reduced by the Government Pension Offset and the Windfall Elimination Provision. No other federal retiree has their retirement income concurrently reduced by these three laws.

HR 972 would restore the retired nurses' pensions but it has been stalled in the House Veterans' Affairs' Subcommittee on Health.

To see Congressional research report, click here 4

submitted by:

Deborah McKown RNC ........Acton MA 01720-2233.......email: panorama@neaccess.net

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