Attention HR: Immediate Action May Be Necessary

**FLYER**

**051-318**

**February 7, 2002**

## TO: Chief, HRMS

######## SUBJ: Retirement Information Concerning Public Law 107-135

H.R. 3447, the Department of Veterans Affairs Health Care Programs
Enhancement Act of 2001, was signed into law by the President on January
23, 2002, and became Public Law 107-135. Sections 122 and 132 pertain to
certain title 38 occupations and provide enhanced retirement benefits
for these groups of employees.

The Office of Personnel Management's (OPM) retirement policy division
has informed VA that they will be issuing regulations and guidance that
pertain to retirement under the new law. The following guidance is being
provided to you since OPM has indicated that it will be a number of
weeks before they will be able to issue any guidance.

**Section 122 of the law: Amends Section 8415 of title 5 U.S.C., by
adding subsection (i).**

This subsection provides - that, in the computation of an annuity, the
total service of an employee who retires from the position of a
registered nurse with the Veterans Health Administration on an immediate
annuity, or dies while employed in that position leaving any survivor
entitled to an annuity, includes the days of unused sick leave to the
credit of that employee under a formal leave system, except that such
days shall not be counted in determining average pay or annuity
eligibility under this subchapter.

In addition, a deposit is not required for days of unused sick leave
credited under this section.

This amendment shall take effect 60 days after the date of enactment of
this Act and shall apply to individuals who separate from service on or
after that effective date.

**What this means** -- **Effective March 24, 2002**, registered nurses,
who are under the Federal Employees Retirement System (FERS), **who
retire from the position of a registered nurse** with VHA on an
immediate annuity, or dies while employed in that position leaving any
survivor entitled to an annuity, can include the hours of unused sick
leave in their annuity computation. There is no deposit required for the
use of the unused sick leave for annuity purposes.

Use the 2087 Sick Leave Chart to convert the hours into months and days
for annuity computation purposes.

Section 132 of the law: Computation of Annuity for Part-Time Service
Performed by Certain Health-Care Professionals before April 7, 1986.

Section 7426 of title 38 is amended by adding subsection (c).

This subsection provides - that subsection (b) shall not apply to the
part-time service before April 7, 1986, of a registered nurse, physician
assistant, or expanded-function dental auxiliary. In computing the
annuity under the applicable provision of law specified in that
subsection of an individual covered by the preceding sentence, the
service described in that sentence shall be credited as full-time
service.

**What this means** -- **Effective January 23, 2002,** retiring
employees who performed part-time service prior to April 7, 1986, in any
of the following title 38 positions; registered nurse, physician
assistant, or expanded-function dental auxiliary, will be able to
receive full-time credit for all types (title 5 and/or title 38) of
creditable pre April 7, 1986, part-time service. Therefore, when
computing the annuity, compute under title 38 rules, but treat all pre
April 7, 1986, service as full-time service. However, you will need to
prorate the final annuity "by any post April 6, 1986, part-time
service". If there is no post April 6, 1986, part-time service, then
these retirees will receive an annuity like other employees with only
full-time service (no proration factor will be applied). This change
does NOT apply to part-time service performed prior to April 7, 1986, by
physicians, dentists, optometrists, or podiatrists.

**Please be aware that OPM may differ in our opinions on these issues.
Therefore, it's very important to make it clear to the employees you are
counseling that you can provide only estimates for annuity computation
purposes and that OPM has the final authority when determining the
annuity amount a retiree is entitled to receive. On these particular
annuity estimates that you submit to OPM as part of an application
package, you will need to enter the following remark: "P.L. 107-135 --
RN (or one of the other 2 positions) is to receive full-time credit for
part-time service prior to April 7, 1986".**

Hope this information is helpful. You will receive additional
information as it becomes available from OPM.

HRM Programs and Policies Service (051)

Office of Human Resources Management

# VA Headquarters -- Washington, DC