That except as 
otherwise expressly provided, whenever in this Act an amendment is 
expressed in terms of an amendment to a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of title 38, United States Code.
    Section 1. Short Title.--This Act may be cited as the ``Department 
Of Veterans Affairs Employment Reduction Assistance Act of 1996.''
    Sec. 2. Definitions.--For the purpose of this Act--
            (1) ``Department'' means the Department of Veterans 
        Affairs.
            (2) ``employee'' means an employee (as defined by section 
        2105 of title 5, United States Code) who--
                    (A) is employed by the Department of Veterans 
                Affairs; (B) is serving under an appointment without 
                time limitation; and
                    (C) has been currently employed for a continuous 
                period of at least 12 months; but does not include--
                            (i) a reemployed annuitant under subchapter 
                        III of chapter 83 or chapter 84 of title 5, 
                        United States Code, or another retirement 
                        system for employees of the Federal Government;
                            (ii) an employee having a disability on the 
                        basis of which such employee is eligible for 
                        disability retirement under the applicable 
                        retirement system referred to in clause (i);
                            (iii) an employee who is in receipt of a 
                        specific notice of involuntary separation for 
                        misconduct or performance;
                            (iv) an employee who has accepted a final 
                        offer of a voluntary separation incentive 
                        payment, payable upon completion of an 
                        additional period of service as referred to in 
                        section 3(b)(2)(B)(ii) of the Federal Workforce 
                        Restructuring Act of 1994 (Public Law 103-226; 
                        108 Stat. 111);
                            (v) an employee who previously has received 
                        any voluntary separation incentive payment by 
                        the Federal Government under this Act or any 
                        other authority and has not repaid such 
                        payment; or
                            (vi) an employee covered by statutory 
                        reemployment rights who is on transfer to 
                        another organization.
                            (3) ``Secretary'' means the Secretary of 
                        Veterans Affairs.
    Sec. 3. Department Plans; Approval.--(a) If the Secretary 
determines that, in order to improve the efficiency of operations or to 
meet actual or anticipated levels of budgetary or staffing resources, 
the number of employees employed by the Department must be reduced, the 
Secretary may submit a plan to the Director of the Office of Management 
and Budget to pay voluntary separation incentives under this Act to 
employees of the Department who agree to separate from the Department 
by retirement or resignation. The plan shall specify the planned 
employment reductions and the manner in which such reductions will 
improve operating efficiency or meet actual or anticipated levels of 
budget or staffing resources. The plan shall include a proposed period 
of time for the payment of voluntary separation incentives by the 
Department and a proposed coverage for offers of incentives to 
Department employees, targeting positions in accordance with the 
Department's strategic alignment plan and downsizing initiatives. The 
proposed coverage may be based on--
            (1) any component of the Department;
            (2) any occupation, level or type of position;
            (3) any geographic location; or
            (4) any appropriate combination of the factors in 
        paragraphs (1), (2), and (3).
    (b) The Director of the Office of Management and Budget shall 
approve or disapprove each plan submitted under subsection (a), and may 
make appropriate modifications to the plan with respect to the time 
period in which voluntary separation incentives may be paid on with 
respect to the coverage of incentives on the basis of the factors in 
subsection (a) (1) through (4).
    Sec. 4. Voluntary Separation Incentive Payments.--(a) In order to 
receive a voluntary separation incentive payment, an employee must 
separate from service with the Department voluntarily (whether by 
retirement of resignation) during the period of time for which the 
payment of incentives has been authorized for the employee under the 
Department plan under section 3.
    (b) A voluntary separation incentive payment--
            (1) shall be paid in a lump sum at the time of the 
        employee's separation:
            (2) shall be equal to the lesser of--
                    (A) an amount equal to the amount the employee 
                would be entitled to receive under section 5595(c) of 
                title 5, United States Code (without adjustment for any 
                previous payment made under that section), if the 
                employee were entitled to payment under that section; 
                if the employee were entitled to payment under that 
                action; or
                    (B) if the employee separates--
                            (i) during fiscal year 1996 or 1997, 
                        $25,000;
                            (ii) during fiscal year 1998, $20,000;
                            (iii) during fiscal year 1999, $15,000; or
                            (iv) during fiscal year 2000, $10,000;
            (3) shall not be a basis for payment, and shall not be 
        included in the computation, of any other type of Government 
        benefit, except that this paragraph shall not apply to 
        unemployment compensation funded in whole or in part with 
        Federal funds;
            (4) shall not be taken into account in determining the 
        amount of severance pay to which an employee may be entitled 
        under section 5595 of title 5, United States Code, based on any 
        other separation; and
            (5) shall be paid from the appropriations or funds 
        available for payment of the basic pay of the employee.
    Sec. 5. Effect of Subsequent Employment With the Government.--(a) 
An individual who has received a voluntary separation incentive payment 
under this Act and accepts any employment with the Government of the 
United States within 5 years after the date of the separation on which 
the payment is based shall be required to repay, prior to the 
individual's first day of employment, the entire amount of the 
incentive payment to the Department.
    (b)(1) If the employment under subsection (a) is with an Executive 
agency (as defined by section 105 of title 5, United States Code), the 
United States Postal Service, or the Postal Rate Commission, the 
Director of the Office of Personnel Management may, at the request of 
the head of the agency, waive the repayment if the individual involved 
possesses unique abilities and is the only qualified applicant 
available for the position.
    (2) If the employment under subsection (a) is with an entity in the 
legislative branch, the head of the entity or the appointing official 
may waive the repayment if the individual involved possesses unique 
abilities and is the only qualified applicant available for the 
position.
    (3) If the employment under subsection (a) is with the judicial 
branch, the Director of the Administrative Office of the United States 
Courts may waive the repayment if the individual involved possesses 
unique abilities and is the only qualified applicant available for the 
position.
    (c) For the purpose of this section, the term ``employment''--
            (1) includes employment of any length or under any type of 
        appointment, but does not include employment that is without 
        compensation; and
            (2) includes employment under a personal services contract, 
        as defined by the Director of the Office of Personnel 
        Management.
    Sec. 6. Additional Agency Contributions to the Retirement Fund.--
(a) In addition to any other payments which it is required to make 
under subchapter III of chapter 83 or chapter 84 of title 5, United 
States Code, the Department shall remit to the Office of Personnel 
Management for deposit in the Treasury of the United States to the 
credit of the civil service retirement and disability fund an amount 
equal to 15 percent of the final basic pay of each employee of the 
Department who is covered under subchapter III of chapter 83 or chapter 
84 of title 5 to whom a voluntary separation incentive has been paid 
under this Act.
    (b) For the purpose of this section, the term ``final basic pay'', 
with respect to an employee, means the total amount of basic pay that 
would be payable for a year of service by that employee, computed using 
the employee's final rate of basic pay, and, if last serving on other 
than a full-time basis, with appropriate adjustment therefor.
    Sec. 7. Reduction of Agency Employment Levels.-- (a) Total full-
time equivalent employment in the Department shall be reduced by one 
for each separation of an employee who receives a voluntary separation 
incentive payment under this Act. The reduction will be calculated by 
comparing the Department's full-time equivalent employment for the 
fiscal year in which the voluntary separation payments are made with 
the actual full-time equivalent employment for the prior fiscal year.
    (b) The Office of Management and Budget shall monitor the 
Department and take any action necessary to ensure that the 
requirements of this section are met.
    (c) Subsection (a) of this section may be waived upon a 
determination by the President that--
            (1) the existence of a state of war or other national 
        emergency so requires; or
            (2) the existence of an extraordinary emergency which 
        threatens life, health, safety, property, or the environment so 
        requires.
    Sec. 8. Reports.--(a) The Department, for each applicable quarter 
of each fiscal year and not later than 30 days after the date of such 
quarter, shall submit to the Office of Personnel Management a reporting 
stating--
            (1) the number of employees who receive voluntary 
        separation incentives for each type of separation involved;
            (2) the average amount of the incentives paid;
            (3) the average grade or pay level of the employees who 
        received incentives; and
            (4) such other information as the Office may require.
    (b) No later than March 31st of each fiscal year, the Office of 
Personnel Management shall submit to the Committee on Governmental 
Affairs of the Senate and the Committee on Government Reform and 
Oversight of the House of Representatives a report which, with respect 
to the preceding fiscal year, shall include--
            (1) the number of employees who received voluntary 
        separation incentives;
            (2) the average amount of such incentives;
            (3) the average grade or pay level of the employees who 
        received incentives; and
            (4) the number of waivers made under section 5 of this Act 
        in the repayment of voluntary separation incentives, and for 
        each such waiver--
                    (A) the reasons for the waiver; and
                    (B) the title and grade or pay level of the 
                position filled by each employee to whom the waiver 
                applied.
    Sec. 9. Voluntary Participation in Reductions in Force.--Section 
3502(f) of title 5, United States Code, is amended--
            (1) in paragraph (1), by inserting ``,the Secretary of 
        Veterans Affairs,'' after ``Defense'';
            (2) in paragraph (3), by inserting ``,the Department of 
        Veterans Affairs,'' after ``Defense'';
            (3) by striking paragraph (4); and
            (4) by redesignating paragraph (5) as paragraph (4); and
            (5) by amending such paragraph (4), as so redesignated, by 
        striking ``1996'' and inserting ``2000'' in lieu thereof.
    Sec. 10. Continued Health Insurance Coverage.--Section 8905a(d)(4) 
of title 5, United States Code, is amended--
            (1) in subparagraph (A) by striking ``in or under the 
        Department of Defense'';
            (2) in subparagraph (B)--
                    (A) by striking ``1999'' in clause (i) and (ii) and 
                inserting ``2000''; and
                    (B) by striking ``2000'' in clause (ii) and 
                inserting ``2001''; and
            (3) in subparagraph (C) by inserting ``by the agency'' 
        after ``identified''.
    Sec. 11. Regulations.--The Director of the Office of Personnel 
Management may prescribe any regulations necessary to administer the 
provisions of this Act.
    Sec. 12. Limitation; Savings Clause.--(a) No voluntary separation 
incentive under this Act may be paid based on the separation of an 
employee after September 30, 2000;
    (b) This Act supplements and does not supersede other authority of 
the Secretary of Veterans Affairs.
Department of Veterans Affairs Employment Reduction Assistance Act of 1996 - Authorizes the Secretary of Veterans Affairs to submit to the Director of the Office of Management and Budget a plan to pay voluntary separation incentives to employees of the Department of Veterans Affairs.  Provides for the determination and payment of incentive payments to such employees.  Requires repayment of the entire payment if such former employee accepts employment with the Government within five years of the date of separation, with an authorized waiver by the appropriate official. 
Requires an agency to contribute to the Civil Service Retirement and Disability Fund an amount equal to 15 percent of the final basic pay of each agency employee to whom an incentive has been paid. 
Mandates the reduction of total full-time equivalent employees in each agency by one for each employee receiving an incentive payment, allowing a waiver of such reduction by the President in periods of war or national or extraordinary emergencies. 
Requires:  (1) the Department to submit quarterly reports to the Office of Personnel Management (OPM) concerning individuals receiving such payments; and (2) OPM to submit annual reports to specified congressional committees on such information. 
Authorizes the Secretary to release volunteering employees in a reduction in force within the Department (currently, only the Secretaries of Defense or a military department are so authorized). Extends all such authority through FY 2000. 
Provides for continued health insurance coverage for employees separated before October 1, 2001.
Department of Veterans Affairs Employment Reduction Assistance Act of 1996