WASHINGTON, D.C. – Recently, U.S. Senator Thom Tillis (R-NC) joined U.S. Senators Jim Inhofe (R-OK), Patty Murray (D-WA), Jerry Moran (R-KS), and 38 of his colleagues in cosponsoring the Continuity for Operators with Necessary Training Required for ATC Contract Towers (CONTRACT) Act of 2021.
These contract towers are an important part of our national air traffic control system—serving communities through a proven public-private partnership that increases safety and improves air traffic control services while lowering the cost to the federal government. U.S. Representatives Julia Brownley (D-CA) and Rodney Davis (R-IL) reintroduced companion legislation in the House of Representatives.
“Contract air traffic controllers are crucial to keeping North Carolina's skies safe,” said Senator Tillis. “We should be focused on attracting experienced FAA controllers, not penalizing them financially for continuing to work. This legislation removes the unnecessary penalty and ensures we have the most highly-skilled FAA controllers possible.”
Federal contract towers face a unique hurdle to hiring trained and well-qualified retired FAA controllers. Because FAA air traffic controllers are one of several federal employee groups whose retirement is mandated at 56 years of age, retired FAA controllers are penalized for continuing to work as controllers at federal contract towers. These experienced retired FAA employees should have the opportunity to use their skills at a federal contract tower without facing a financial penalty. This legislation would eliminate that penalty.
Full bill text can be viewed here.
The CONTRACT Act is supported by the U.S. Contract Tower Association (USCTA), the American Association of Airport Executives (AAAE), and the National Air Traffic Controllers Association (NATCA).
Contract towers play a central role in managing the safety and efficiency of our nation's complex airspace, supporting general aviation safety, the efficiency of large commercial airports, disaster relief, and emergency medical operations, law enforcement and agriculture activities and businesses throughout the United States. In addition, many contract tower airports are located near or adjacent to military bases and manage a substantial number of military-related and national security operations, directly supporting the readiness and training of military units.
This legislation would remove the disincentive for retired FAA air traffic controllers to work at federal contract towers. Under current law, FAA air traffic controllers must retire by age 56. Because this is earlier than the normal retirement age, controllers are included as a "special group" under the Federal Employees' Retirement System (FERS) and contribute an additional 0.5 percent of their annual salary into a special retirement annuity account. In return, they receive a FERS annuity payment during the mandatory retirement period between 56 and the social security minimum age of 62. The retired controller's special annuity payment is incrementally reduced if they earn more than the social security earnings limit of $17,640 (2019 tax year) annually. This annuity offset penalty results in many retired FAA controllers deciding not to work as federal contract tower air traffic controllers.
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