Sheldon said that if the contract proceeds on schedule, the FAA will save tens of millions of dollars by avoiding paying pensions to the displaced workers. He said that of 963 workers who will be left without a pension, roughly two-thirds are within five years of qualifying. According to the press release, the NAATS suit alleges the contracting process “is timed to deny substantial federal retirement benefits” to FSS workers who are more than 40 years old. Sheldon said the timing of the contract with the major retirement bubble of FSS workers only a few years away “is quite a coincidence.” The FAA began the outsourcing program, called an A-76 process, about three years ago. Five organizations, including one representing the existing FSS system under the FAA, submitted bids. Lockheed Martin was picked in mid-February and will formally take over the system Oct. 1.
…Savings Efficiency And Lost Pensions…
Key Takeaways:
- The FAA is outsourcing its Flight Service Station (FSS) system to Lockheed Martin, a move expected to be complete by October 1.
- This outsourcing is projected to save the FAA tens of millions of dollars by avoiding pension payments to 963 displaced FSS workers.
- Roughly two-thirds of the affected workers are within five years of qualifying for their pensions, prompting allegations that the contract's timing is designed to deny substantial federal retirement benefits.
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