Recently introduced bipartisan legislation aims to remove the financial disincentive for retired Federal Aviation Administration (FAA) air traffic controllers to work at federal contract towers.
FAA controllers are required to retire by age 56 under current law. While working, they contribute an additional 0.5 percent of their annual salary into a special retirement annuity account. They are classified under the Federal Employees’ Retirement System (FERS) as a “special group.”
Between the ages of 56 and 62, the minimum age to be eligible for social security, retired controllers receive a FERS annuity payment. This payment is incrementally reduced if they earn more than the social security earnings limit annually. For tax year 2019, this limit was $17,640.
Many retired FAA controllers make the decision not work as federal contract tower air traffic controllers.
The Continuity for Operators with Necessary Training Required for ATC Contract Towers (CONTRACT) Act of 2019 would eliminate this penalty and make it easier for retired controllers to work at a federal contract tower.
Nationally, 256 air traffic control facilities are participating in the FAA’s Federal Contract Tower Program.
The bill was introduced by Sens. Jim Inhofe (R-OK), Jerry Moran (R-KA) and Patty Murray (D-WA).
The CONTRACT Act has received strong industry support.