I

104TH CONGRESS

1ST SESSION H. R. 2826

To allow agencies to offer certain Federal employees an opportunity to take

early retirement without having to remain subject to the otherwise applicable reduction, based on age, after attaining age 55.

IN THE HOUSE OF REPRESENTATIVES

DECEMBER 21, 1995

Mrs. MORELLA (for herself, Mr. DAVIS, Ms. NORTON, Mr. WOLF, Mr. MORAN,

Mr. WYNN, and Mr. HOYER) introduced the following bill; which was referred to the Committee on Government Reform and Oversight

A BILL

To allow agencies to offer certain Federal employees an

opportunity to take early retirement without having to

remain subject to the otherwise applicable reduction,

based on age, after attaining age 55.

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

3 SECTION 1. AUTHORITY.

4 (a) IN GENERAL.—In order to avoid or minimize the

5 need for involuntary separations due to a reduction in

6 force, reorganization, transfer of function, or other similar

7 action, the head of an agency may offer early retirement

8 under this section to employees of such agency—
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1 (1) in any component thereof;

2 (2) in any occupation;

3 (3) in any geographic location; or

4 (4) on the basis of any combination of factors

5 under paragraphs (1) through (3).

6 (b) TREATMENT OF EMPLOYEES TAKING EARLY RE7 TIREMENT UNDER THIS SECTION.—

8 (1) IN GENERAL.—In the case of an employee

9 who takes early retirement under this section, the

10 reduction under the first sentence of section 8339(h)

11 of title 5, United States Code, shall be equal to the

12 reduction that would otherwise apply, subject to

13 paragraphs (2) and (3).

14 (2) MODIFIED REDUCTION.—Effective with re15 spect to any benefits accruing for any month begin16 ning after any birthday of the employee occurring

17 after the commencement date of such employee’s an18 nuity, any annuity payable based on the service of

19 such employee shall be redetermined such that it

20 shall be equal to the amount that would then be pay21 able, assuming the circumstance described in para22 graph (3).

23 (3) CIRCUMSTANCE DESCRIBED.—The redeter24 mined amount under paragraph (2) as of any date

25 is the amount that would then be payable based on
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1 the reduction that would then be required under the

2 first sentence of section 8339(h) if, at the date of

3 separation, such employee had attained the age at4 tained by such employee as of the birthday referred

5 to in paragraph (2).

6 (c) CONDITIONS.—

7 (1) IN GENERAL.—In order to be eligible to

8 take early retirement under this section, an em9 ployee—

10 (A) may not accept any voluntary separa11 tion incentive payment in connection with the

12 same separation; and

13 (B) must separate from service before the

14 end of the relevant election period under para15 graph (2), except as provided in paragraph (3).

16 (2) ELECTION PERIOD.—

17 (A) IN GENERAL.—An election to take

18 early retirement under this section shall not be

19 valid unless it is made during an election period

20 offered by the employee’s employing agency

21 under this paragraph, if any.

22 (B) DURATION; EXPIRATION.—An election

23 period under this paragraph—

24 (i) shall be 3 months in duration;
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1 (ii) shall end not later than 1 year

2 after the date of the enactment of this Act;

3 and

4 (iii) may not be repeated.

5 (3) EXCEPTION RELATING TO REQUIRED SEPA6 RATION DATE.—If necessary to ensure the effective

7 performance of the agency’s mission, in the judg8 ment of the head of the agency, the required date

9 of separation under paragraph (1)(B) may be de10 ferred for a period mutually agreed upon by the em11 ployee and the agency, but not later than 1 year

12 after the last day of the relevant election period.

13 (d) EMPLOYMENT BACKFILL PREVENTION.—Sub14 sections (f) and (g) of section 5 of the Federal Workforce

15 Restructuring Act of 1994 (Public Law 103–226; 5

16 U.S.C. 3101 note) shall apply with respect to any vacancy

17 created by the separation of any employee who has taken,

18 or who is due to take, early retirement under this section.

19 (e) ELIGIBILITY NOT LIMITED TO THOSE UNDER

20 CSRS.—This section applies with respect to any employee

21 who is eligible for—

22 (1) an annuity under subchapter III of chapter

23 83 of title 5, United States Code; or
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1 (2) an annuity any part of which would be sub2 ject to reduction under the first sentence of section

3 8339(h) of such title.

4 (f) AUTHORIZATION OF APPROPRIATIONS.—There

5 are authorized to be appropriated such sums as may be

6 necessary in order to finance the unfunded liability created

7 by this section, to the extent attributable to benefits accru8 ing during the 5-year period beginning on the date of the

9 enactment of this Act, either—

10 (1) in 5 equal annual installments, with interest

11 computed at the rate used in the then most recent

12 valuation of the Civil Service Retirement System and

13 with the first payment thereof due as of the end of

14 the fiscal year in which this Act is enacted; or

15 (2) in a single installment an amount equivalent

16 to the present value (at time of payment) of the in17 stallments referred to in paragraph (1), and with

18 such payment due by the end of the fiscal year next

19 beginning after the date of the enactment of this

20 Act.

21 SEC. 2. HEALTH AND LIFE INSURANCE BENEFITS.

22 (a) IN GENERAL.—In the case of an employee who

23 takes early retirement under section 1—

24 (1) such employee shall not, by reason of any

25 requirement under section 8905(b)(1) of title 5,
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1 United States Code, be considered ineligible for con2 tinued enrollment as an annuitant under chapter 89

3 of title 5, United States Code, if the otherwise appli4 cable requirements are met; and

5 (2) subject to subsection (b), such employee

6 shall not, by reason of any requirement under sec7 tion 8706(b) of such title, be considered ineligible

8 for continued life insurance coverage under chapter

9 87 of such title, if the otherwise applicable require10 ments are met.

11 (b) INDIVIDUAL NOT ELIGIBLE FOR GOVERNMENT

12 CONTRIBUTIONS.—Life insurance coverage under sub13 section (a)(2) shall be afforded in accordance with applica14 ble provisions of title 5, United States Code, except that

15 any Government contributions otherwise payable with re16 spect to an annuitant shall be the responsibility of the

17 former employee.

18 SEC. 3. DEFINITIONS.

19 As used in this Act:

20 (1) AGENCY; EMPLOYEE.—The terms ‘‘agency’’

21 and ‘‘employee’’ have the respective meanings given

22 those terms by section 3 of the Federal Workforce

23 Restructuring Act of 1994 (Public Law 103–226; 5

24 U.S.C. 5597 note).
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1 (2) VOLUNTARY SEPARATION INCENTIVE PAY2 MENT.—The term ‘‘voluntary separation incentive

3 payment’’ means—

4 (A) a voluntary separation incentive pay5 ment under section 3 of the Federal Workforce

6 Restructuring Act of 1994; and

7 (B) any similar payment as may be identi8 fied under section 4.

9 SEC. 4. REGULATIONS.

10 Any regulations necessary to carry out this Act may

11 be prescribed by the President or his designee.

Æ