Senate Aging Committee Takes on Older Worker Issues

Following the release of GAO's report of federal government hiring of older workers, Senator Herb Kohl (D-WI), Chairman of the Senate Special Committee on Aging, joined by several other Senators, has introduced three bills to make it easier for older Americans to either reenter or remain in the workforce. In addition, the Committee has held a hearing to examine how the poor economy is affecting those nearing retirement.

The proposed legislation includes: (1)"The Older Worker Opportunity Act of 2009," which would diminish the barriers to part-time work for older workers, such as loss of health coverage and decreased pension benefits, by providing a tax credit for employers that employ older workers (age 62+) in flexible work programs, (2) a bill (S. 469/H.R. 1198) to make it easier for the federal government to rehire federal retirees part-time, without forcing the employee to reduce their salary by their pension amount, as under current law, and (3) a bill to allow phased retirement for federal employees under the Civil Service Retirement System. In addition, Kohl has reintroduced the "Health Care and Training for Older Workers Act of 2009" (S. 281), which would extend COBRA health insurance from the time of retirement (ages 62 and up) until seniors become eligible for Medicare at age 65.

At the Committee hearings on "Boomer Bust? Securing Retirement in a Volatile Economy," testimony was provided on "the economic downturn’s effect on retirement security, particularly for those who are on the brink of retirement. Witnesses at the hearing offered insight into the myriad factors that are affecting the ability of baby boomers to retire, including the weakened performance of 401(k) funds, the instability of housing values, and the challenges of the labor market for older workers, all of which are contributing to diminished prospects for a secure retirement."

Sources: U.S. Special Committee on Aging Press Release (February 24, 2009); Press Release (February 25, 2009)

United States: GAO Report Recommends Increased Communication among Agencies to Enhance Retention and Hiring of Older Workers

The U.S. Government Accountability Office (GAO) has issued a report recommending that Office of Personnel Management (OPM) broadly disseminate agency-developed promising practices to hire and retain older workers. In putting together "Older Workers: Enhanced Communication among Federal Agencies Could Improve Strategies for Hiring and Retaining Experienced Workers", GAO interviewed officials at three agencies with high proportions of workers eligible to retire and identified agencies’ promising practices to hire and retain older workers.

GAO notes that the proportion of federal employees eligible to retire is growing. In fact, at four agencies—-the Agency for International Development (USAID), the Department of Housing and Urban Development (HUD), the Small Business Administration, and the Department of Transportation-—46% of the workforce will be eligible to retire by 2012. However, GAO also notes that the federal government has historically enjoyed relatively high retention rates, with 40% or more of federal employees remaining in the workforce for at least five years after becoming eligible. In addition, in fiscal year 2007, federal agencies hired almost 14,000 new workers who were 55 years of age or older and brought back about 5,400 federal retirees to address workforce needs.

The three agencies GAO examined rely on older workers in different ways: USAID brings back its knowledgeable and skilled retirees as contractors to fill short-term job assignments and to help train and develop the agency’s growing number of newly hired staff. SSA uses complex statistical models to project potential retirements in mission critical occupations and uses these data to develop recruitment efforts targeted at a broad pool of candidates, including older workers. HUD relies primarily on older workers to pass down knowledge and skills to junior staff. In addition, GAO noted that other agencies have developed practices that are useful in tapping older workers to meet short-term needs, such as the Department of State, which has developed databases to match interested retirees with short-term assignments requiring particular skills.

GAO concludes that while at least three agencies have developed their own practices that show promise in recruiting and retaining talented older workers who have needed and specialized skills, little attention has been paid to sharing it with other agencies. Accordingly, it calls on OPM to "develop a systematic approach, which may include communicating through the CHCO Council, to share information broadly across the federal government about agency-developed promising practices in recruitment and retention of older, experienced workers to meet their workforce needs."

Source: U.S. Government Accountability Office Report Summary of GAO-09-206 (February 24, 2009)

Senate Aging Committee Holds Hearing on Using Federal Government as Model for Hiring, Retaining Older Workers

The U.S. Senate Special Commitee on Aging Chairman Herb Kohl (D-WI) chaired a hearing titled "Leading By Example: Making Government a Model for Hiring and Retaining Older Workers." Kohl believes that "we must encourage employers to adopt policies now to attract and retain older workers" and that it "is possible to craft commonsense policy to create a win-win situation for both older workers and the companies that employ them." As for his focus on the federal government, he introduced the hearings by stating:

Why the federal government? Because nowhere is the foreseen labor shortage more pronounced than within the workforce of the nation’s largest employer. Over the next five years, more than half a million permanent full-time federal employees—or about one-third of the full-time federal workforce—will be eligible to retire. And over the next ten years, more than sixty percent of the federal workforce will reach retirement age.

Others heard at the hearings (with links to their prepared testimony) included:

• Senator Gordon H. Smith (R-OR), Ranking Member of the Committee;
• Barbara Bovbjerg, Director, Education, Workforce and Income Security Issues, US Government Accountability Office;
• Nancy Kichak, Associate Director, Strategic Human Resources Policy, Office of Personnel Management;
• Thomas Dowd, Administrator, Office of Policy Development and Research, Employment and Training Administration, US Department of Labor;
• Max Stier, President and CEO, Partnership for Public Service;
• Chai Feldblum, Co-Director, Workplace Flexibility 2010

A webcast of the hearing is available by clicking here.

Source: U.S. Senate Committee on Aging Press Release (April 30, 2008)

Boston College Center on Aging & Work Launches States Initiative, Multigenerational Focus

According to an article in the Boston College Chronicle, the Boston College Center on Aging & Work is launching a State Perspectives Institute that will collaborate with states on promoting the aging public sector workforce as a potential economic asset. Among other things, the Institute will "gather information and work with state leaders to raise awareness of the benefits of a multigenerational workforce in the 21st century."

One of the goals of the Initiative is to release of a series of profiles on the multigenerational workforce for all 50 states produced in partnership with Experience Wave. These profiles are supposed to provide statistical synopses in areas such as age distribution, labor force participation, industry sector employment, and workforce education and preparedness.

Another project of the Initiative will be States as Employers-of-Choice, a collaboration between the Center and the Twiga Foundation, Inc. of Boise, Idaho, sponsored by the Alfred P. Sloan Foundation. The project’s goal is "to increase awareness of the aging public sector workforce as well as provide assessment of the readiness of states" to be employers of choice and to develop practice tools.

Source: Boston College Chronicle (February 28, 2008)