I

104TH CONGRESS

2D SESSION H. R. 3279

To provide for early deferred annuities under chapter 83 of title 5, United

States Code, for certain former Department of Defense employees who

are separated from service by reason of certain defense base closures,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 18, 1996

Mr. WARD (for himself, Mr. HAMILTON, Mr. FAZIO of California, Mr. MATSUI, Mr. JACOBS, Mr. MYERS of Indiana, Mr. TEJEDA, Mr. LEWIS of

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

A BILL

To provide for early deferred annuities under chapter 83

of title 5, United States Code, for certain former Department of Defense employees who are separated from service by reason of certain defense base closures, 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. EARLY DEFERRED ANNUITIES OF CERTAIN

4 FORMER EMPLOYEES OF THE DEPARTMENT

5 OF DEFENSE.

6 (a) DEFINITIONS.—For purposes of this section—
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1 (1) the term ‘‘Civil Service Retirement System’’

2 means the retirement system under subchapter III

3 of chapter 83 of title 5, United States Code;

4 (2) the term ‘‘defense contractor’’ means any

5 entity that—

6 (A) contracts with the Department of De7 fense to perform a function previously per8 formed by Department of Defense employees;

9 and

10 (B) performs that function at the installa11 tion at which such function was previously per12 formed by Department of Defense employees or

13 in the vicinity of such installation;

14 (3) the term ‘‘early deferred retirement age’’, as

15 used with respect to a transferred employee, means

16 the earliest age at which such transferred employee

17 would have been eligible for immediate retirement

18 under subsection (a) or (b) of section 8336 of title

19 5, United States Code, if such transferred employee

20 had remained continuously employed, until attaining

21 such age, in the position held by such employee

22 when separated from Federal service as described in

23 paragraph (6)(A);
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1 (4) the term ‘‘severance pay’’ means severance

2 pay under section 5595 of title 5, United States

3 Code;

4 (5) the term ‘‘separation pay’’ means separa5 tion pay under section 5597 of title 5, United States

6 Code; and

7 (6) the term ‘‘transferred employee’’ means a

8 former employee of the Department of Defense

9 (other than a former temporary employee) who—

10 (A) while employed by the Department of

11 Defense at a military installation to be closed or

12 realigned pursuant to recommendations of the

13 Defense Base Closure and Realignment Com14 mission that were approved by the President in

15 1995 under section 2903(e) of the Defense

16 Base Closure and Realignment Act of 1990

17 (Public Law 101–510; 10 U.S.C. 2687 note)

18 and while covered under the Civil Service Re19 tirement System, was separated from Federal

20 service in a reduction-in-force resulting from

21 conversion from performance of a function by

22 Department of Defense employees at such mili23 tary installation to performance of such func24 tion by a defense contractor at such installation

25 or in the vicinity of such installation;
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1 (B) has completed 5 years of civilian serv2 ice creditable under section 8332 of title 5,

3 United States Code, by the date of separation

4 from Federal service as described in subpara5 graph (A);

6 (C) is employed by the defense contractor

7 within 60 days following such separation to per8 form substantially the same function performed

9 before the separation;

10 (D)(i) remains employed by the defense

11 contractor or a successor defense contractor, or

12 a subcontractor of either, until attaining early

13 deferred retirement age; or

14 (ii) is involuntarily separated from employ15 ment referred to in clause (i) before attaining

16 early deferred retirement age for reasons other

17 than misconduct; and

18 (E) at the time separated from Federal

19 service as described in subparagraph (A), was

20 not eligible for an immediate annuity under the

21 Civil Service Retirement System.

22 (b) RETIREMENT BENEFITS OF TRANSFERRED EM23 PLOYEES.—For purposes of determining eligibility for a

24 deferred annuity under section 8338(a) of title 5, United

25 States Code, a transferred employee shall be deemed to
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1 have satisfied the age requirement under such section

2 8338(a) upon attaining early deferred retirement age.

3 (c) COMPUTATION OF AVERAGE PAY.—(1)(A) This

4 paragraph applies to the computation of the annuity of

5 a transferred employee who retires under this section who

6 immediately before separation from Federal service as de7 scribed in subsection (a)(6)(A) was employed in a position

8 classified under the General Schedule.

9 (B) In the computation of an annuity referred to in

10 subparagraph (A) for a transferred employee, the average

11 pay of the transferred employee under section 8331(4) of

12 title 5, United States Code, shall be adjusted at the same

13 time and by the same percentage that rates of basic pay

14 are increased under section 5303 of title 5, United States

15 Code, during the period beginning on the date on which

16 the transferred employee separates from Federal service

17 as described in subsection (a)(6)(A) and ending on the

18 date on which the transferred employee attains early de19 ferred retirement age.

20 (2)(A) This paragraph applies to the computation of

21 the annuity of a transferred employee who retires under

22 this section who immediately before separation from Fed23 eral service as described in subsection (a)(6)(A) was a pre24 vailing rate employee as defined under section 5342(a)(2)

25 of title 5, United States Code.
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1 (B) In the computation of an annuity referred to in

2 subparagraph (A) for a transferred employee, average pay

3 under section 8331(4) of title 5, United States Code, shall

4 be adjusted at the same time and by the same percentage

5 that rates of basic pay for positions that are in the same

6 area as, and are comparable to, the last position the trans7 ferred employee held as a prevailing rate employee, are

8 increased under section 5343(a) of such title during the

9 period beginning on the date on which the transferred em10 ployee separates from Federal service as described in sub11 section (a)(6)(A) and ending on the date on which the

12 transferred employee attains early deferred retirement

13 age.

14 (d) SERVICE FOR A DEFENSE CONTRACTOR NOT

15 CREDITABLE SERVICE.—Service performed by a trans16 ferred employee for a defense contractor (or a successor

17 or subcontractor referred to in subsection (a)(6)(D)) after

18 separation from Federal service as described in subsection

19 (a)(6)(A) shall not be treated as creditable service for pur20 poses of computing the amount of an early deferred annu21 ity under this section.

22 (e) SEPARATION AND SEVERANCE PAY.—A trans23 ferred employee who receives separation pay or severance

24 pay upon separation from Federal service as described in

25 subsection (a)(6)(A) is not eligible to receive an early de-
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1 ferred annuity under this section unless the employee re2 pays the full amount of such pay (with interest as deter3 mined by the Office of Personnel Management) to the De4 partment of Defense before attaining early deferred retire5 ment age.

6 (f) RECEIPT OF BENEFITS WHILE EMPLOYED BY A

7 DEFENSE CONTRACTOR.—A transferred employee may

8 commence receipt of an early deferred annuity in accord9 ance with this section while continuing to work for a de10 fense contractor.

11 (g) LUMP-SUM CREDIT PAYMENT.—If a transferred

12 employee dies before attaining early deferred retirement

13 age, such employee shall, for purposes of section 8342 of

14 title 5, United States Code, be treated as a former em15 ployee not retired who dies, as described in subsection (d)

16 of such section. For purposes of the preceding sentence,

17 the term ‘‘transferred employee’’ shall have the meaning

18 such term would have under subsection (a)(6) if subpara19 graph (D) thereof were disregarded.

20 (h) IMPLEMENTING REGULATIONS.—The Office of

21 Personnel Management shall promulgate regulations to

22 carry out the provisions of this section.

23 (i) EFFECTIVE DATE.—This section shall take effect

24 on August 1, 1996, and shall apply to any transferred em25 ployee whose date of separation from Federal service, as
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1 described in subsection (a)(6)(A), occurs on or after that

2 date.

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