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For Immediate Release: Wednesday, February 25 2009

Contact: (202) 572-5500

Public Relations Department

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Washington, D.C.—The leader of the nation’s largest independent union of federal employees today called for congressional approval of legislation to give federal civilian and military retirees the right to pay health care premiums on a pre-tax basis. Currently active federal employees have that option.

A bill extending the premium conversion privilege to retirees was introduced today by Rep. Chris Van Hollen (D-Md.) and a number of cosponsors. Companion legislation is expected to be introduced in the Senate.

“This legislation comes at a particularly important time,” said President Colleen M. Kelley of the National Treasury Employees Union (NTEU), in a letter of support to Rep. Van Hollen.

“Federal retirees have watched their savings go down as their costs, particularly in health care, have risen by double digits,” the NTEU leader wrote, noting that since 2001, premiums in the Federal Employees Health Benefits Program have risen by more than 50 percent.

She applauded the lawmaker’s action, saying it “sends a signal to all federal and military retirees that you value their service and will faithfully protect their interests whenever possible.”

NTEU was instrumental some years ago in securing premium conversion for current federal employees and has been working tirelessly since then to extend the same right to federal civilian and military retirees.

“Not only is this an important matter of fairness,” President Kelley said, “extending premium conversion to retirees would be another strong selling point for federal agencies in their efforts to recruit and retain high-quality workers.”

As the largest independent federal union, NTEU represents 150,000 employees in 31 agencies and departments.