Federal Employees’ Bonuses Threatened

New legislation introduced in the Senate is threatening federal employees’ bonuses. Three Senators are supporting the bill, and they propagate that they are saving the hard earned money of the taxpayers. If this bill becomes law, the chances are high that annuities and federal retirement benefits would be targeted next. If this trend goes on further, the government may end up losing the talented employees who may switch to the private sector to obtain better money instead of their hard work.

federal employees' bonuses
As per a new legislation, federal employees’ bonuses may soon be under threat and some feds may have to return the granted bonuses to the government.

Details on Legislation Threatening Federal Employees’ Bonuses

The legislation that prohibits federal employees’ bonuses is entitled as The Stop Improper Federal Bonuses Act (S. 696). It will prevent paying bonuses to federal workers who commit major infractions under the agency’s code of conduct. It would also require federal employees who engage in egregious misconduct to repay the bonuses they have already availed.

The bill threatening federal employees’ bonuses is sponsored by Senator Deb Fischer (R-NE). Senators Dean Heller (R-NV) and Claire McCaskill (D-MO) are the co-sponsors of the bill.

Senators’ Opinion

All three senators had something to say about the bill they have introduced recently. Senator Fischer propagated that he had the best interest of taxpayers’ as motivation when he stated that it is his duty to ensure that the hard-earned tax dollars of Nebraskans are used in a wise manner. He also opined that this bill would eliminate waste from the government when he stated that federal employees who have broken the law or have engaged in a serious misconduct should not get any bonus pay. There is a need to continue the bipartisan push to end this practice which he called ridiculous and root out all the waste in the government.

Senator McCaskill also stated that the bill would save the dollars of taxpayers. She believes that this should be a cut and dried issue. If a person has taken actions that could get him or her suspended, thrown into a jail or fired from the job, that person should not be allowed to get a bonus. The bill would protect the taxpayers’ dollars that are currently being used to pad the pockets of irresponsible people working for the government.

Heller also shared his opinion on the matter by saying that at the moment, federal employees who have violated the agency rules or any law are eligible for bonuses. It includes IRS employees who have conducted violations. This is not acceptable, and it’s a high time to end the status quo.

The Law

If the bill targeting federal employees’ bonuses is turned into law, a federal agency would be prohibited from awarding a bonus to a federal employee for five years after an adverse finding that may have been resulted in removal, jail time or a long suspension. The law would also require a guilty employee to repay any bonuses that were awarded for any year in which any adverse finding is made.


It is very clear that federal employees’ bonuses are under threat and if the aforementioned bill becomes law, it will be sad news for all the feds. After this law is passed, the chances are high that Republicans Senators would next target the other retirement benefits like federal annuities. If that happens, the recruitment and retention challenges of government agencies are also likely to increase further because young people would not prefer a government job where one mistake could cut the bonuses they have rightfully earned. Even feds who are working with the government right now could also switch to a well-paying private sector job.

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