How does Section 226 of PL 108-176, Aviation Reauthorization Act, affect air traffic controller retirement?
Craig H. Reinhard; NATCA Retirement Services; President, The IDPM Group, Inc.
For the past year, we have received numerous inquiries on the effect that Section 226 of Public Law 108-176 (“Vision 100 – Century of Aviation Reauthorization Act”) will have on air traffic controller retirement. Adopted Feb. 10, 2004, the new law not only changes the retirement calculation, but broadens the language of specific sections of current provisions. To fully understand the impact of Section 226 of PL107-186, it is important to understand exactly what changes have taken place. The FAA has no discretionary authority as to the implementation of these provisions.
Expansions
Section 226 expanded its definition, as specified by 5 U.S.C. 2109(a)(1), to included second level managers to the previous class of individuals eligible for special ATC retirement benefits. Additionally, Section 226 added a new 5 U.S.C. 8331(29), which defines an immediate supervisor as defined under 2109(a)(1)(B)—i.e., a second-level supervisor of an employee actually performing ATC duties— as an ATC eligible for the Civil Service Retirement System (CSRS). Also added was 5 U.S.C. 8041(33), which applies to service as a second-level supervisor of ATCs employed in flight service stations, for the Federal Employee Retirement System (FERS).
Amendments
The terms applicable to ATC mandatory retirement under CSRS and FERS were amended. The newly added second-level supervisor will not be subject to mandatory retirement. Currently active ATCs with a date of birth on or after Jan. 1, 1965, can not qualify for the higher retirement annuity, because their age would exceed mandatory retirement at age 56.
Additions
New provisions were added that apply only to retiring ATCs and former ATCs who meet certain criteria. Under 5 U.S.C. 8412(a), retirement is permitted at minimum retirement age (MRA), which is between 55 and 57, depending on your date of birth, and with 30 years of service. If an individual meets the provisions as stated or has a least five years of ATC service (as defined by 5 U.S.C. (a)(1)(A)(i): actively engaged in the separation and control of air traffic), the retiree’s annuity will be computed at a rate of 1.7 percent for all years of service in lieu of the 1 percent after 20 that would normally apply. This provision includes some, but not all Flight Service Station ATCs. Your current contribution percentage deposited to your FERS annuity can be used as a determining factor.
Second-level supervisors under FERS will be required to make an additional deposit into the retirement fund for all service performed prior to the effective date of Section 226. Individuals must make a deposit of 0.5 percent of basic pay, the difference between the 1.3 percent ATC contribution and the 0.8 percent supervisor contribution. Active ATCs do not owe any additional deposits, as they currently contribute the full 1.3 percent.
Still unclear is the manner in which previous military service will be calculated in retirement annuity. While one possibility would be to declare military service time as part of the 30-year requirement, we do not believe this will be the final result because of the way the language was drafted. Historically, when legal language has read, “30 years of creditable service,” service time has been allowed. In this case, the language reads only, “30 years of service.” Therefore, military time will count only after the 30 year requirement has been satisfied.
This topic along, with many other benefit issues, is discussed in the “NATCA Retirement Seminars” provided by The IDPM Group, Inc. Check the seminar schedule at www.idpmgroup.com for a listing of seminar locations.
For more information about this article or other retirement questions, please call or e-mail NATCA Retirement Services at 866/628-2234 or NATCA@idpmgroup.com.
