I

104TH CONGRESS

1ST SESSION H. R. 2751

To provide temporary authority for the payment of retirement and separation

incentives, to provide reemployment assistance to Federal employees who

are separated as a result of workforce reductions, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

DECEMBER 7, 1995

Mr. WOLF (for himself, Mr. DAVIS, Mr. MORAN, Mrs. MORELLA, Mr. WYNN,

and Mr. HOYER) introduced the following bill; which was referred to the

Committee on Government Reform and Oversight

A BILL

To provide temporary authority for the payment of retirement and separation incentives, to provide reemployment

assistance to Federal employees who are separated as

a result of workforce reductions, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Federal Employee Separation Incentive and Reemploy6 ment Assistance Act’’.

7 (b) TABLE OF CONTENTS.—The table of contents for

8 this Act is as follows:
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Sec. 1. Short title; table of contents.

TITLE I—GENERAL PROVISIONS

Sec. 101. Definitions.

Sec. 102. Conditions for receiving an incentive payment under this Act.

Sec. 103. Regulations.

Sec. 104. Incentive payments for employees of the judicial branch.

Sec. 105. Funds for certain interagency groups.

TITLE II—VOLUNTARY SEPARATION INCENTIVES

Sec. 201. Incentive payments for employees eligible for immediate retirement.

Sec. 202. Payments and other incentives for employees who are not eligible for

immediate retirement.

Sec. 203. Effect of subsequent employment with the Government and employee

backfill prevention.

TITLE III—REEMPLOYMENT ASSISTANCE PROGRAMS

Sec. 301. Priority placement programs for Federal employees affected by a reduction in force.

Sec. 302. Non-Federal employment incentives.

Sec. 303. Job placement and counseling services.

TITLE IV—EXTENSION OF BENEFITS

Sec. 401. Life insurance.

Sec. 402. Health insurance.

1 TITLE I—GENERAL PROVISIONS

2 SEC. 101. DEFINITIONS.

3 Except as otherwise provided in this Act, for purposes

4 of this Act—

5 (1) the term ‘‘agency’’ means an Executive

6 agency within the meaning of section 105 of title 5,

7 United States Code, excluding the Department of

8 Defense, the Central Intelligence Agency, and the

9 General Accounting Office;

10 (2) the term ‘‘employee’’ means an employee

11 within the meaning of section 2105 of title 5, United

12 States Code, who—

13 (A) is employed by an agency;
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1 (B) is serving under an appointment with2 out time limitation; and

3 (C) has been currently employed for a con4 tinuous period of at least 12 months;

5 such term includes an individual so employed by a

6 county committee established under section 8(b) of

7 the Soil Conservation and Domestic Allotment Act

8 (16 U.S.C. 590h(b)), but does not include—

9 (i) a reemployed annuitant under sub10 chapter III of chapter 83 or chapter 84 of title

11 5, United States Code, or another retirement

12 system for employees of the Government;

13 (ii) an employee having a disability on the

14 basis of which such employee is or would be eli15 gible for disability retirement under the applica16 ble retirement system referred to in clause (i);

17 or

18 (iii) an employee who, upon completing an

19 additional period of service (as referred to in

20 section 3(b)(2)(B)(ii) of the Federal Workforce

21 Restructuring Act of 1994 (Public Law 103–

22 226; 5 U.S.C. 5597 note)), would qualify for a

23 voluntary separation incentive payment under

24 section 3 of such Act; and
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1 (3) the term ‘‘incentive payment under this

2 Act’’ means an incentive payment under section 201,

3 202, or 302.

4 SEC. 102. CONDITIONS FOR RECEIVING AN INCENTIVE PAY5 MENT UNDER THIS ACT.

6 An incentive payment under this Act—

7 (1) may not be paid except to the extent nec8 essary in order—

9 (A) to avoid or minimize the need for in10 voluntary separations due to a reduction in

11 force, reorganization, transfer of function, or

12 other similar action; or

13 (B) otherwise to reduce the size of the

14 Federal workforce;

15 (2) may not be paid based on a separation from

16 service occurring after September 30, 1999; and

17 (3) shall be paid from the appropriation or fund

18 available for the payment of the basic pay of the em19 ployee to whom the payment is payable.

20 SEC. 103. REGULATIONS.

21 Except as otherwise specifically provided, any regula22 tions necessary to carry out this Act may be prescribed

23 by the Director of the Office of Personnel Management.
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1 SEC. 104. INCENTIVE PAYMENTS FOR EMPLOYEES OF THE

2 JUDICIAL BRANCH.

3 The Director of the Administrative Office of the

4 United States Courts may, by regulations consistent with

5 applicable provisions of this Act, make incentive payments

6 under this Act available with respect to individuals serving

7 in the judicial branch.

8 SEC. 105. FUNDS FOR CERTAIN INTERAGENCY GROUPS.

9 (a) IN GENERAL.—Section 613 of the Treasury,

10 Postal Service, and General Government Appropriations

11 Act, 1996 (Public Law 104–52), shall not apply with re12 spect to the interagency financing of any boards, commis13 sions, councils, committees, or similar groups, to the ex14 tent established (or assigned duties) to carry out—

15 (1) title III or any amendment made by that

16 title;

17 (2) the memorandum of the President relating

18 to ‘‘Career Transition Assistance for Federal Em19 ployees’’, dated September 12, 1995; or

20 (3) any other law, regulation, directive, or other

21 authority identified by the President, in writing, as

22 having purposes similar to those of—

23 (A) title III or any amendment made by

24 that title; or

25 (B) the memorandum referred to in para26 graph (2).
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1 (b) RULE OF CONSTRUCTION.—Nothing in this sec2 tion shall be considered to exempt an interagency group

3 from section 1346(b) of title 31, United States Code.

4 TITLE II—VOLUNTARY

5 SEPARATION INCENTIVES

6 SEC. 201. INCENTIVE PAYMENTS FOR EMPLOYEES ELIGI7 BLE FOR IMMEDIATE RETIREMENT.

8 (a) IN GENERAL.—Subject to section 102 and suc9 ceeding provisions of this section, a voluntary separation

10 incentive payment under this section may be paid by an

11 agency to any employee who, at the time of separation

12 from the service—

13 (1) is subject to subchapter III of chapter 83

14 or chapter 84 of title 5, United States Code; and

15 (2) meets the age and service requirements for

16 an immediate annuity thereunder.

17 (b) PAYMENT AMOUNT.—A payment under this sec18 tion shall be equal to the lesser of—

19 (1) the amount the employee would be entitled

20 to receive under section 5595(c) of title 5, United

21 States Code, if the employee were entitled to pay22 ment under such section; or

23 (2)(A) $25,000 if the employee separates on or

24 after the date of the enactment of this Act and not

25 later than September 30, 1997;
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1 (B) $20,000 if the employee separates after the

2 deadline under subparagraph (A) and not later than

3 September 30, 1998; or

4 (C) $15,000 if the employee separates after the

5 deadline under subparagraph (B) and not later than

6 September 30, 1999.

7 (c) PAYMENT CONDITIONS.—A payment under this

8 section—

9 (1) shall be payable in a lump sum after the

10 employee’s separation;

11 (2) shall not be made to any employee who sep12 arates in any fiscal year after December 31st of

13 such year, unless the head of the agency determines

14 in writing that such payment would still be cost ef15 fective or otherwise further the agency’s mission;

16 (3) shall not be a basis for payment, and shall

17 not be included in the computation, of any other

18 type of Government benefit; and

19 (4) shall not be taken into account in determin20 ing the amount of any severance pay to which the

21 employee may be entitled under section 5595 of title

22 5, United States Code, based on any other separa23 tion.

24 (d) ADDITIONAL AGENCY CONTRIBUTION TO THE

25 RETIREMENT FUND.—
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1 (1) IN GENERAL.—In addition to any other

2 payments which it is required to make under sub3 chapter III of chapter 83 of title 5, United States

4 Code, an agency shall remit to the Office of Person5 nel Management for deposit in the Treasury of the

6 United States to the credit of the Civil Service Re7 tirement and Disability Fund an amount equal to 9

8 percent of the final basic pay of each employee of

9 the agency—

10 (A) who, on or after the date of the enact11 ment of this Act and before October 1, 1999,

12 retires under section 8336(d)(2) of such title;

13 and

14 (B) to whom a payment under this section

15 has been or is to be paid by such agency based

16 on that retirement.

17 (2) DEFINITION.—For the purpose of para18 graph (1), the term ‘‘final basic pay’’, with respect

19 to an employee, means the total amount of basic pay

20 which would be payable for a year of service by such

21 employee, computed using the employee’s final rate

22 of basic pay, and, if last serving on other than a

23 full-time basis, with appropriate adjustment there24 for.
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1 SEC. 202. PAYMENTS AND OTHER INCENTIVES FOR EM2 PLOYEES WHO ARE NOT ELIGIBLE FOR IMME3 DIATE RETIREMENT.

4 (a) IN GENERAL.—Subject to section 102 and suc5 ceeding provisions of this section, payments and other in6 centives under this section may be provided by an agency

7 to any employee who, at the time of separation from the

8 service—

9 (1) is subject to subchapter III of chapter 83

10 or chapter 84 of title 5, United States Code; but

11 (2) does not meet the age and service require12 ments for an immediate annuity thereunder.

13 (b) TEMPORARY PERIODIC PAYMENTS.—

14 (1) IN GENERAL.—An agency may, in the case

15 of an employee who is eligible for incentives under

16 this section, make periodic payments to such em17 ployee under this section after such employee’s sepa18 ration from the service, subject to subsection (e).

19 (2) AMOUNT; FREQUENCY; TERMINATION.—

20 Payments under this subsection—

21 (A) shall be at the rate of basic pay re22 ceived immediately before separation;

23 (B) shall be paid at regular intervals cor24 responding to the pay periods last applicable

25 before separation; and

26 (C) shall terminate upon the earlier of—
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1 (i) the date on which the employee be2 gins new employment; or

3 (ii) the end of the 6-month period be4 ginning on the date of separation.

5 (3) PREMIUM PAY.—For the purpose of this

6 subsection, ‘‘basic pay’’ includes premium pay under

7 section 5545(c)(1) of title 5, United States Code.

8 (c) CONTINUATION OF INSURANCE COVERAGE.—

9 (1) IN GENERAL.—An employee who is eligible

10 for incentives under this section may elect, for as

11 long as the employee remains eligible for payments

12 under subsection (b), to continue life insurance cov13 erage under chapter 87 of title 5, United States

14 Code, if insured under such chapter immediately be15 fore separation.

16 (2) TERMS.—Any coverage under this sub17 section shall be under the same terms and conditions

18 as would apply if separation had not occurred, ex19 cept that the former employee shall be responsible

20 for paying both the individual and the Government

21 contributions.

22 (3) DEDUCTIONS.—Any amounts required

23 under paragraph (2) shall be withheld from pay24 ments under subsection (b) and shall be deposited in

25 the Treasury of the United States to the credit of
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1 the Employees’ Life Insurance Fund under section

2 8714 of title 5, United States Code.

3 (d) REEMPLOYMENT INCENTIVES.—

4 (1) IN GENERAL.—In addition to the payments

5 provided for in subsection (b), an employee who is

6 eligible for incentives under this section shall, if such

7 employee obtains employment (other than employ8 ment with the Government of the United States, in9 cluding under a personal service contract) within 6

10 months after such employee’s separation, be eligible

11 for a reemployment incentive payment under this

12 subsection. Such payment shall be equal to—

13 (A) the amount the employee would be en14 titled to receive under section 5595(c) of title 5,

15 United States Code, if the employee were enti16 tled to payment under such section, multiplied

17 by

18 (B) the applicable percentage under para19 graph (2).

20 (2) APPLICABLE PERCENTAGE.—The applicable

21 percentage under this paragraph shall be determined

22 as follows:

If the new employment

commences during the

following month (of the 6-

month period referred to in The applicable percentage

subsection (b)(2)): under this paragraph is:

The first or second month ................................................................. 100

The third month ................................................................................ 80
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The fourth month .............................................................................. 60

The fifth month ................................................................................. 40

The sixth month ................................................................................. 20.

1 (e) STATUS OF PAYMENTS AND PERIODS COVERED

2 BY PAYMENTS.—

3 (1) STATUS OF PAYMENTS.—A payment under

4 this section—

5 (A) shall not be considered to constitute

6 basic pay;

7 (B) shall not be a basis for payment, and

8 may not be included in the computation, of any

9 other type of benefit from the United States

10 Government; and

11 (C) shall not be taken into account in de12 termining the amount of any severance pay to

13 which an employee may be entitled under sec14 tion 5595 of title 5, United States Code, based

15 on any other separation.

16 (2) PERIODS COVERED BY PAYMENTS.—A pe17 riod covered by a payment under this section shall

18 not be considered a period of service with or employ19 ment by the Government of the United States. Not20 withstanding the preceding sentence, an individual

21 shall be ineligible to receive unemployment com22 pensation for any period for which such individual is

23 eligible to receive any payment under this section.
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1 (f) CONDITION FOR RECEIVING ANY BENEFITS

2 UNDER THIS SECTION.—

3 (1) AGREEMENT.—Before receiving any pay4 ment or other benefit under this section, an em5 ployee must enter into a written agreement under

6 which the employee shall agree to give prompt writ7 ten notice of any employment (for compensation) ob8 tained by the employee within the 6-month period

9 referred to in subsection (b)(2).

10 (2) REPAYMENT.—Under the agreement, if the

11 employee fails to give any notice required under such

12 agreement, a sum equal to all payments made to

13 such employee under this section shall be recoverable

14 by the Government from the employee (or such em15 ployee’s estate, if applicable) by—

16 (A) setoff against accrued pay, compensa17 tion, amount of retirement credit, or another

18 amount due the employee from the Government;

19 and

20 (B) such other method as is provided by

21 law for the recovery of amounts owing to the

22 Government.

23 The head of the agency concerned may waive, in

24 whole or in part, a right of recovery under this sub25 section, if it is shown that recovery would be against
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1 equity and good conscience or against the public in2 terest.

3 (3) DISPOSITION OF ANY AMOUNT RECOV4 ERED.—Any amount repaid by, or recovered from,

5 an individual (or an estate) under this subsection

6 shall be credited to the appropriation account from

7 which the amount involved was originally paid. Any

8 amount so credited shall be merged with other sums

9 in such account and shall be available for the same

10 purposes and period, and subject to the same limita11 tions (if any), as the sums with which merged.

12 (g) LIMITATION.—An individual who becomes eligible

13 for any payments or other benefit under this section as

14 a result of a separation from service may not again become

15 so eligible based on any subsequent separation.

16 SEC. 203. EFFECT OF SUBSEQUENT EMPLOYMENT WITH

17 THE GOVERNMENT AND EMPLOYEE BACK18 FILL PREVENTION.

19 (a) IN GENERAL.—An employee who has received any

20 payment under section 201 or 202 and accepts employ21 ment with the Government of the United States within

22 5 years after the date of the separation on which the pay23 ment is based shall be required to repay the entire amount

24 of the payment to the agency that made such payment.

25 (b) WAIVER AUTHORITY.—
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1 (1) IN GENERAL.—The appropriate authority

2 under paragraph (2) may waive the repayment if the

3 individual so accepting any such employment pos4 sesses unique abilities and is the only qualified appli5 cant available for the position.

6 (2) APPROPRIATE AUTHORITY.—For purposes

7 of paragraph (1), the appropriate authority is—

8 (A) the Director of the Office of Personnel

9 Management, if the employment is with an Ex10 ecutive agency (as defined by section 105 of

11 title 5, United States Code), subject to para12 graph (3);

13 (B) the head of the employing entity, if the

14 employment is with the legislative branch; and

15 (C) the Director of the Administrative Of16 fice of the United States Courts, if the employ17 ment is with the judicial branch.

18 (3) REQUIREMENT SPECIFIC TO EXECUTIVE

19 AGENCIES.—If the employment is with an Executive

20 agency (as so defined), waiver authority under this

21 subsection may be exercised only upon the request of

22 the head of the agency.

23 (4) NO DOUBLE REPAYMENT.—In no event

24 shall any individual who receives any amounts under

25 section 202 be required, by reason of repayment ob-
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1 ligations arising under the preceding provisions of

2 this section and those of section 202(f), respectively,

3 with respect to the same amount, to repay more

4 than the amounts so received by such individual.

5 (c) DEFINITION.—For purposes of subsection (a)

6 (but not subsection (b)), the term ‘‘employment’’ includes

7 employment under a personal services contract with the

8 Government of the United States.

9 (d) EMPLOYEE BACKFILL PREVENTION.—Paragraph

10 (1) of section 5(f) of the Federal Workforce Restructuring

11 Act of 1994 (Public Law 103–226; 5 U.S.C. 3101 note)

12 is amended by inserting ‘‘of this Act or section 201 or

13 202 of the Federal Employee Separation Incentive and

14 Reemployment Assistance Act’’ after ‘‘section 3(a)–(e)’’.

15 TITLE III—REEMPLOYMENT

16 ASSISTANCE PROGRAMS

17 SEC. 301. PRIORITY PLACEMENT PROGRAMS FOR FEDERAL

18 EMPLOYEES AFFECTED BY A REDUCTION IN

19 FORCE.

20 (a) IN GENERAL.—Subchapter I of chapter 33 of title

21 5, United States Code, is amended by adding at the end

22 the following:
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1 ‘‘§ 3329b. Priority placement programs for employees

2 affected by a reduction in force

3 ‘‘(a) Not later than 6 months after the date of the

4 enactment of this section, the Office of Personnel Manage5 ment shall establish a Governmentwide priority placement

6 program, and each agency shall establish an agencywide

7 priority placement program, to facilitate employment

8 placement for employees who—

9 ‘‘(1) are scheduled to be separated from service

10 due to a reduction in force under—

11 ‘‘(A) regulations prescribed under section

12 3502; or

13 ‘‘(B) procedures established under section

14 3595; or

15 ‘‘(2) are separated from service due to such a

16 reduction in force.

17 ‘‘(b)(1) Each agencywide priority placement program

18 shall include provisions under which a vacant position

19 shall not (except as provided in this subsection) be filled

20 by the appointment or transfer of any individual from out21 side of that agency (other than an individual described in

22 paragraph (2)) if—

23 ‘‘(A) there is then available any individual de24 scribed in paragraph (2) who is qualified for the po25 sition; and

26 ‘‘(B) the position—
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1 ‘‘(i) is at the same grade (or pay level) or

2 not more than 1 grade (or pay level) below that

3 of the position last held by such individual be4 fore placement in the new position; and

5 ‘‘(ii) is within the same commuting area as

6 the individual’s last-held position (as referred to

7 in clause (i)) or residence.

8 ‘‘(2) For purposes of an agencywide priority place9 ment program, an individual shall be considered to be de10 scribed in this paragraph if such individual is—

11 ‘‘(A) an employee of such agency who is sched12 uled to be separated, as described in subsection

13 (a)(1); or

14 ‘‘(B) an individual who became a former em15 ployee of such agency as a result of a separation, as

16 described in subsection (a)(2).

17 ‘‘(c)(1) The Governmentwide priority placement pro18 gram shall be conducted in coordination with the various

19 agencywide priority placement programs, and shall include

20 provisions under which a vacant position in an agency

21 which cannot be filled through such agency’s priority

22 placement program shall not (except as provided in this

23 subsection) be filled by the appointment or transfer of any

24 individual from outside of that agency if—
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1 ‘‘(A) there is then available any individual de2 scribed in paragraph (2) who is qualified for the po3 sition; and

4 ‘‘(B) with respect to such individual, the posi5 tion satisfies the criteria set forth in subparagraph

6 (B) of subsection (b)(1).

7 ‘‘(2) An individual shall be considered to be described

8 in this paragraph if such individual is—

9 ‘‘(A) an employee of an agency who is sched10 uled to be separated, as described in subsection

11 (a)(1); or

12 ‘‘(B) an individual who became a former em13 ployee of an agency as a result of a separation, as

14 described in subsection (a)(2).

15 ‘‘(d)(1) The Governmentwide priority placement pro16 gram shall not affect the priority of placement of individ17 uals under any agencywide priority placement program.

18 ‘‘(2) Nothing in this section shall affect any priority

19 placement program of the Department of Defense which

20 is in operation as of the date of the enactment of this

21 section.’’.

22 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

23 (1) Title 5, United States Code, is amended by redesignat24 ing the second section which is designated as section 3329

25 as section 3329a.
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1 (2) The table of sections for chapter 33 of title 5,

2 United States Code, is amended by striking the item relat3 ing to the second section which is designated as section

4 3329 and inserting the following:

‘‘3329a. Government-wide list of vacant positions.

‘‘3329b. Priority placement programs for employees affected by a reduction

in force.’’.

5 SEC. 302. NON-FEDERAL EMPLOYMENT INCENTIVES.

6 (a) DEFINITIONS.—For purposes of this section—

7 (1) the term ‘‘eligible employee’’ means an em8 ployee who is voluntarily or involuntarily separated

9 from the service, except by removal for cause on

10 charges of misconduct or delinquency; however, such

11 term does not include an employee who, at the time

12 of separation, meets the age and service require13 ments for an immediate annuity under subchapter

14 III of chapter 83 or chapter 84 of title 5, United

15 States Code, other than under section 8336(d) or

16 8414(b) of such title; and

17 (2) the term ‘‘non-Federal employer’’ means an

18 employer that is neither an Executive agency within

19 the meaning of section 105 of title 5, United States

20 Code, nor within the legislative or judicial branch of

21 the Government.

22 (b) AUTHORITY.—The head of an agency may pay

23 retraining and relocation incentives in accordance with
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1 this section in order to facilitate the reemployment of eligi2 ble employees who are separated from the agency.

3 (c) RETRAINING INCENTIVE.—

4 (1) AGREEMENT.—The head of an agency may

5 enter into an agreement with a non-Federal em6 ployer under which the non-Federal employer

7 agrees—

8 (A) to employ an individual referred to in

9 subsection (b) for at least 12 months for a sal10 ary which is mutually agreeable to the employer

11 and such individual; and

12 (B) to certify to the head of the agency

13 any costs incurred by the employer for any nec14 essary training provided to such individual in

15 connection with the employment by such em16 ployer.

17 (2) PAYMENT OF RETRAINING INCENTIVE.—

18 The head of the agency shall pay a retraining incen19 tive to the non-Federal employer upon the employ20 ee’s completion of 12 months of continuous employ21 ment by that employer. Subject to subsection (e),

22 the head of the agency shall prescribe the amount of

23 the incentive.

24 (3) PRORATION RULE.—The head of the agency

25 shall pay a prorated amount of the full retraining in-
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1 centive to the non-Federal employer for an employee

2 who does not remain employed by the non-Federal

3 employer for at least 12 months, but only if the em4 ployee remains so employed for at least 6 months.

5 (4) LIMITATION.—In no event may the amount

6 of the retraining incentive paid for the training of

7 any individual exceed the amount certified for such

8 individual under paragraph (1).

9 (d) RELOCATION INCENTIVE.—The head of an agen10 cy may pay a relocation incentive to an eligible employee

11 if it is necessary for the employee to relocate in order to

12 commence employment with a non-Federal employer. Sub13 ject to subsection (e), the amount of the incentive shall

14 not exceed the amount that would be payable for travel,

15 transportation, and subsistence expenses under sub16 chapter II of chapter 57 of title 5, United States Code,

17 including any reimbursement authorized under section

18 5724b of such title, to a Federal employee who transfers

19 between the same locations as the individual to whom the

20 incentive is payable.

21 (e) LIMITATION.—The amount of retraining and relo22 cation incentives that may be paid to any individual may

23 not exceed $20,000.

24 (f) DURATION.—No incentive may be paid for train25 ing or relocation commencing after June 30, 2000.
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1 SEC. 303. JOB PLACEMENT AND COUNSELING SERVICES.

2 (a) AUTHORITY FOR SERVICES.—The head of an

3 agency may establish a program to provide job placement

4 and counseling services to current and former employees

5 and their families.

6 (b) TYPES OF SERVICES AUTHORIZED.—A program

7 established under this section may include such services

8 as—

9 (1) career and personal counseling;

10 (2) training in job search skills; and

11 (3) job placement assistance, including assist12 ance provided through cooperative arrangements

13 with State and local employment service offices.

14 (c) ELIGIBILITY FOR SERVICES.—Services authorized

15 by this section may be provided to—

16 (1) current employees of the agency or any

17 other agency;

18 (2) employees of the agency or any other agen19 cy who have been separated for less than 1 year, if

20 the separation was not a removal for cause on

21 charges of misconduct or delinquency; and

22 (3) any spouse or dependent child of an em23 ployee referred to in paragraph (1) or (2).

24 (d) REIMBURSEMENT FOR COSTS.—The costs of

25 services provided to current or former employees of an-
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1 other agency, or to any of their family members, shall be

2 reimbursed by that agency.

3 TITLE IV—EXTENSION OF

4 BENEFITS

5 SEC. 401. LIFE INSURANCE.

6 (a) IN GENERAL.—Section 8706 of title 5, United

7 States Code, is amended by redesignating subsections (d)

8 through (f) as subsections (e) through (g), respectively,

9 and by inserting after subsection (c) the following:

10 ‘‘(d) Notwithstanding subsections (a) and (b), any

11 employee who, on or after the date of the enactment of

12 the Federal Employee Separation Incentive and Reem13 ployment Assistance Act, and before October 1, 1999—

14 ‘‘(1) is separated involuntarily, except by re15 moval for cause on charges of misconduct or delin16 quency, or

17 ‘‘(2) retires on an immediate annuity under

18 subchapter III of chapter 83 or subchapter II of

19 chapter 84, but does not satisfy the requirements of

20 subsection (b)(1),

21 and who is insured on the date of separation or retirement,

22 may, within 60 days after such date, elect to continue such

23 employee’s insurance and arrange to pay currently into

24 the Employees’ Life Insurance Fund both employee and

25 agency contributions in accordance with procedures pre-
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1 scribed by the Office. If the employee does not so elect,

2 such employee’s insurance will terminate as provided by

3 subsection (a).’’.

4 (b) CONFORMING AMENDMENT.—Section 8706(g) of

5 title 5, United States Code, as so redesignated by sub6 section (a), is amended by striking ‘‘subsection (e)’’ and

7 inserting ‘‘subsection (f)’’.

8 SEC. 402. HEALTH INSURANCE.

9 Section 8905(b) of title 5, United States Code, is

10 amended by adding at the end the following: ‘‘. The Office

11 shall waive the requirements of this subsection in the case

12 of an individual who fails to satisfy such requirements if

13 such individual—

14 ‘‘(A) retires on or after the date of the enact15 ment of the Federal Employee Separation Incentive

16 and Reemployment Assistance Act, and before Octo17 ber 1, 1999, on an immediate annuity under sub18 chapter III of chapter 83 or subchapter II of chap19 ter 84; and

20 ‘‘(B) is enrolled in a health benefits plan under

21 this chapter as an employee immediately before re22 tirement.’’.

Æ

HR 2751 IH——2

HR 2751 IH——3