FS Labor Relations Board on AFSA Dues, Foreign Service Retirees, and Annuities ≠ Salaries

Posted: 4:22 am ET
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Last month, the Foreign Service Labor Relations Board (FSLRB) rendered a decision about AFSA dues and Foreign Service retirees.  AFSA filed with the Foreign Service Labor Relations Board (the Board) a “request[ for] . . . interpretation and guidance of § 1018(b)(2) of the Foreign Service Act of 1980. This provision concerns the termination of payroll deductions for union dues when “the individual ceases to receive a salary from the [Agency] as a member of the Service.”

When Agency employees wish to have their Union dues automatically withheld from their paychecks, the employees complete a form that authorizes the Agency to withhold those funds and remit them to the Union.6 According to the Union, the Agency automatically terminates dues withholding when a foreign-service employee retires. The Union asserts that this practice is based on an erroneous understanding of § 1018(b)(2) of the Foreign Service Act …
[…]
[T]he Union argues that the automatic termination of dues withholding causes it to lose dues and, therefore, asks the Board to find that § 1018(b)(2) does not require automatic termination of dues withholding upon retirement.
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The Union contends that the Agency should continue withholding dues from an individual’s retirement benefits based on the same dues-withholding-authorization form that applied to the individual’s salary while in active service.17 We disagree.

Section 1018(b)(2) of the Foreign Service Act requires the Agency to terminate an existing dues-withholding assignment when an “individual ceases to receive a salary from the [Agency].”18 As explained below, retirees generally receive “annuities,” not salaries, upon retirement.19

The FSLRB says it find that § 1018(b)(2) requires the State Department to terminate an existing dues-withholding assignment when a retiring employee stops receiving a salary.

The Department deducts union dues from salaries on the basis of a voluntary act by the Foreign Service employee. The employee has the right to revoke his/her decision at any time. Whenever an employee who has had his/her union dues deducted from salary arrives at the moment of retirement, it must be assumed that he/she continues to believe it had been in his/her interest to maintain both their membership in the union, and the automatic deduction of union dues.

The Board notes that “when a foreign-service employee retires, that “individual ceases to receive a salary from the [Agency].”30 Consequently, under § 1018(b)(2), the Agency must terminate the individual’s previous dues-withholding assignment.”
AFSA has over 10,000 active paying FS members. Its dues range from $95.00 to $400.00 annually based on four employee brackets.  Read the full decision below:

 

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