I

104TH CONGRESS

2D SESSION H. R. 3532

To provide a temporary authority for the use of voluntary separation incentives by Federal agencies that are reducing employment levels, and for

other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 23, 1996

Mr. MORAN (for himself, Mr. HOYER, Mr. WYNN, Mr. HOLDEN, and Ms.

NORTON), all by request, introduced the following bill; which was referred

to the Committee on Government Reform and Oversight

A BILL

To provide a temporary authority for the use of voluntary

separation incentives by Federal agencies that are reducing employment levels, 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.

4 This Act may be cited as the ‘‘Federal Employment

5 Reduction Assistance Act of 1996’’.

6 SEC. 2. DEFINITIONS.

7 For the purpose of this Act—

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

9 agency (as defined by section 105 of title 5, United
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1 States Code), but does not include the Department

2 of Defense, the Central Intelligence Agency, or the

3 General Accounting Office; and

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

5 (as defined by section 2105 of title 5, United States

6 Code) who—

7 (A) is employed by an agency;

8 (B) is serving under an appointment with9 out time limitation; and

10 (C) has been currently employed for a con11 tinuous period of at least 12 months;

12 but does not include—

13 (i) a reemployed annuitant under sub14 chapter III of chapter 83 or chapter 84 of

15 title 5, United States Code, or another re16 tirement system for employees of the Gov17 ernment;

18 (ii) an employee having a disability on

19 the basis of which such employee is or

20 would be eligible for disability retirement

21 under the applicable retirement system re22 ferred to in clause (i);

23 (iii) an employee who is in receipt of

24 a specific notice of involuntary separation
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1 for misconduct or unacceptable perform2 ance;

3 (iv) an employee who, upon complet4 ing an additional period of service as re5 ferred to in section 3(b)(2)(B)(ii) of the

6 Federal Workforce Restructuring Act of

7 1994 (Public Law 103–226; 108 Stat.

8 111), would qualify for a voluntary separa9 tion incentive payment under section 3 of

10 such Act;

11 (v) an employee who has previously

12 received any voluntary separation incentive

13 payment by the Federal Government under

14 this Act or any other authority and has

15 not repaid such payment; or

16 (vi) an employee covered by statutory

17 reemployment rights who is on transfer to

18 another organization.

19 SEC. 3. AGENCY PLANS; APPROVAL.

20 (a) If the head of an agency determines that, in order

21 to improve the efficiency of operations or to meet antici22 pated levels of budgetary resources, the number of employ23 ees employed by the agency must be reduced, the head

24 of the agency may submit a plan to the Director of the

25 Office of Management and Budget to pay voluntary sepa-
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1 ration incentives under this Act to employees of the agency

2 who agree to separate from the agency, by retirement or

3 resignation. The plan shall specify the planned employ4 ment reductions and the manner in which such reductions

5 will improve operating efficiency or meet anticipated budg6 et levels. The plan shall include a proposed period of time

7 for the payment of voluntary separation incentives by the

8 agency, and a proposed coverage for offers of incentives

9 to agency employees, which may be on the basis of—

10 (1) any component of the agency;

11 (2) any occupation or levels of an occupation;

12 (3) any geographic location; or

13 (4) any appropriate combination of the factors

14 in paragraphs (1)–(3).

15 (b) The Director of the Office of Management and

16 Budget shall review each plan submitted to the Director

17 under subsection (a) and approve or disapprove such plan,

18 and may make appropriate modifications in the plan with

19 respect to the time period in which voluntary separation

20 incentives may be paid or with respect to the coverage of

21 incentives on the basis of the factors in subsection (a) (1)–

22 (4).

23 SEC. 4. VOLUNTARY SEPARATION INCENTIVE PAYMENTS.

24 (a) In order to receive a voluntary separation incen25 tive payment, an employee must separate from service
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1 with the employee’s agency voluntarily (whether by retire2 ment or resignation) during the period of time for which

3 the payment of incentives has been authorized for the em4 ployee under the agency plan under section 3. An employ5 ee’s agreement to separate with an incentive payment is

6 binding upon the employee and the agency, unless the em7 ployee and the agency mutually agree otherwise.

8 (b) A voluntary separation incentive payment—

9 (1) shall be paid in a lump sum after the em10 ployee’s separation;

11 (2) shall be equal to the lesser of—

12 (A) an amount equal to the amount the

13 employee would be entitled to receive under sec14 tion 5595(c) of title 5, United States Code

15 (without adjustment for any previous payment

16 made under such section), if the employee were

17 entitled to payment under such section; or

18 (B) if the employee separates—

19 (i) during fiscal year 1996 or 1997,

20 $25,000;

21 (ii) during fiscal year 1998, $20,000;

22 (iii) during fiscal year 1999, $15,000;

23 or

24 (iv) during fiscal year 2000, $10,000;
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1 (3) shall not be a basis for payment, and shall

2 not be included in the computation, of any other

3 type of Government benefit, except that this para4 graph shall not apply to unemployment compensa5 tion funded in whole or in part with Federal funds;

6 (4) shall not be taken into account in determin7 ing the amount of severance pay to which an em8 ployee may be entitled under section 5595 of title 5,

9 United States Code, based on any other separation;

10 and

11 (5) shall be paid from the appropriations or

12 funds available for payment of the basic pay of the

13 employee.

14 SEC. 5. EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE

15 GOVERNMENT.

16 (a) An individual who has received a voluntary sepa17 ration incentive payment under this Act and accepts any

18 employment with the Government of the United States

19 within 5 years after the date of the separation on which

20 the payment is based shall be required to repay, prior to

21 the individual’s first day of employment, the entire

22 amount of the incentive payment to the agency that paid

23 the incentive payment.

24 (b)(1) If the employment under subsection (a) is with

25 an Executive agency (as defined by section 105 of title
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1 5, United States Code), the United States Postal Service,

2 or the Postal Rate Commission, the Director of the Office

3 of Personnel Management may, at the request of the head

4 of the agency, waive the repayment if the individual in5 volved possesses unique abilities and is the only qualified

6 applicant available for the position.

7 (2) If the employment under subsection (a) is with

8 an entity in the legislative branch, the head of the entity

9 or the appointing official may waive the repayment if the

10 individual involved possesses unique abilities and is the

11 only qualified applicant available for the position.

12 (3) If the employment under subsection (a) is with

13 the judicial branch, the Director of the Administrative Of14 fice of the United States Courts may waive the repayment

15 if the individual applicant available for the position.

16 (c) For the purpose of this section, the term ‘‘employ17 ment’’—

18 (1) includes employment of any length or under

19 any type of appointment, but does not include em20 ployment that is without compensation; and

21 (2) includes employment under a personal serv22 ices contract, as defined by the Director of the Of23 fice of Personnel Management.
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1 SEC. 6. ADDITIONAL AGENCY CONTRIBUTIONS TO THE RE2 TIREMENT FUND.

3 (a) In addition to any other payments which it is re4 quired to make under subchapter III of chapter 83 or

5 chapter 84 of title 5, United States Code, an agency shall

6 remit to the Office of Personnel Management for deposit

7 in the Treasury of the United States to the credit of the

8 Civil Service Retirement and Disability Fund an amount

9 equal to 15 percent of the final basic pay of each employee

10 of the agency who is covered under subchapter III of chap11 ter 83 or chapter 84 of title 5 to whom a voluntary separa12 tion incentive has been paid under this Act.

13 (b) For the purpose of this section, the term ‘‘final

14 basic pay’’, with respect to an employee, means the total

15 amount of basic pay which would be payable for a year

16 of service by such employee, computed using the employ17 ee’s final rate of basic pay, and, if last serving on other

18 than a full-time basis, with appropriate adjustment there19 for.

20 SEC. 7. REDUCTION OF AGENCY EMPLOYMENT LEVELS.

21 (a) Total full-time equivalent employment in each

22 agency shall be reduced by one for each separation of an

23 employee who receives a voluntary separation incentive

24 payment under this Act. The reduction will be calculated

25 by comparing the agency’s full-time equivalent employ26 ment for the fiscal year in which the voluntary separation
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1 payments are made with the actual full-time equivalent

2 employment for the prior fiscal year.

3 (b) The Office of Management and Budget shall mon4 itor all agencies and take any action necessary to ensure

5 that the requirements of this section are met.

6 (c) The President shall take appropriate action to en7 sure that functions involving more than 10 full-time equiv8 alent employees are not converted to contracts by reason

9 of the enactment of this Act, except in cases in which a

10 cost comparison demonstrates such contracts would be to

11 the advantage of the Government.

12 (d) The provisions of subsections (a) and (c) of this

13 section may be waived upon a determination by the Presi14 dent that—

15 (1) the existence of a state of war or other na16 tional emergency so requires; or

17 (2) the existence of an extraordinary emergency

18 which threatens life, health, safety, property, or the

19 environment so requires.

20 SEC. 8. REPORTS.

21 (a) Each agency which has received approval under

22 section 3 of this Act to pay voluntary separation incentives

23 shall, for each applicable quarter of each fiscal year and

24 not later than 30 days after the date of such quarter, sub-
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1 mit to the Office of Personnel Management a report pro2 viding—

3 (1) the number of employees who receive vol4 untary separation incentives for each type of separa5 tion involved;

6 (2) the average amount of the incentives paid;

7 (3) the average grade or pay level of the em8 ployees who received incentives; and

9 (4) such other information as the Office may

10 require.

11 (b) No later than March 31st of each fiscal year, the

12 Office of Personnel Management shall submit to the Com13 mittee on Governmental Affairs of the Senate and the

14 Committee on Government Reform and Oversight of the

15 House of Representatives a report which, with respect to

16 the preceding fiscal year, shall include—

17 (1) for each agency which had approval to pay

18 voluntary separation incentives during such preced19 ing fiscal year, and on a combined basis for all such

20 agencies—

21 (A) the number of employees who received

22 voluntary separation incentives;

23 (B) the average amount of such incentives;

24 and
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1 (C) the average grade or pay level of the

2 employees who received incentives; and

3 (2) the number of waivers made under section

4 5 of this Act in the repayment of voluntary separa5 tion incentives, and for each such waiver—

6 (A) the reasons for the waiver; and

7 (B) the title and grade or pay level of the

8 position filled by each employee to whom the

9 waiver applied.

10 (c) Section 6 of the Federal Workforce Restructuring

11 Act of 1994 (Public Law 103–226; 108 Stat. 111) is

12 amended—

13 (1) by striking out ‘‘December 31st’’ and in14 serting ‘‘March 31st’’; and

15 (2) by striking out paragraphs (1)–(4) and in16 serting in lieu thereof the following:

17 ‘‘(1) for each agency which paid voluntary sepa18 ration incentives under section 3 during such preced19 ing fiscal year, and on a combined basis for all such

20 agencies—

21 ‘‘(A) the number of employees who re22 ceived voluntary separation incentives;

23 ‘‘(B) the average amount of such incen24 tives; and
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1 ‘‘(C) the average grade or pay level of the

2 employees who received incentives; and

3 ‘‘(2) the number of waivers made by each agen4 cy or other authority under section 3 or the amend5 ments made by section 8 in the repayment of vol6 untary separation incentives, and for each such

7 waiver—

8 ‘‘(A) the reasons for the waiver; and

9 ‘‘(B) the title and grade or pay level of the

10 position filled by each employee to whom the

11 waiver applied.’’.

12 SEC. 9. VOLUNTARY PARTICIPATION IN REDUCTIONS IN

13 FORCE.

14 Section 3502(f) of title 5, United States Code, is

15 amended—

16 (1) in paragraph (1) by striking out ‘‘The Sec17 retary of Defense or the Secretary of a military de18 partment’’ and inserting in lieu thereof ‘‘Under pro19 cedures prescribed by Office of Personnel Manage20 ment, the head of an agency’’;

21 (2) by amending paragraph (3) to read as fol22 lows:

23 ‘‘(3) An employee with critical knowledge and

24 skills may not participate in a voluntary release

25 under paragraph (1) if the head of the agency deter-
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1 mines that such participation would impair the per2 formance of the agency’s mission.’’;

3 (3) by striking out paragraph (4); and

4 (4) by redesignating paragraph (5) as para5 graph (4), and by amending such paragraph by

6 striking out ‘‘September 30, 1996’’ and inserting

7 ‘‘September 30, 2000’’.

8 SEC. 10. CONTINUED HEALTH INSURANCE COVERAGE.

9 Section 8905a(d)(4) of title 5, United States Code,

10 is amended—

11 (1) in subparagraph (A) by striking out ‘‘in or

12 under the Department of Defense’’;

13 (2) in subparagraph (B)—

14 (A) immediately after ‘‘enactment’’ by in15 serting the following ‘‘(or, as applicable, amend16 ment)’’;

17 (B) in clause (i) and (ii) each by striking

18 out ‘‘October 1, 1999’’ and inserting ‘‘October

19 1, 2000’’; and

20 (C) in clause (ii) by striking out ‘‘February

21 1, 2000’’ and inserting ‘‘February 1, 2001’’;

22 and

23 (3) in subparagraph (C) immediately after

24 ‘‘identified’’ by inserting ‘‘by the agency’’.
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1 SEC. 11. REGULATIONS.

2 The Director of the Office of Personnel Management

3 may prescribe any regulations necessary to administer the

4 provisions of this Act.

5 SEC. 12. EFFECTIVE DATE.

6 (a) The provisions of this Act shall take effect on the

7 date of enactment of this Act.

8 (b) No voluntary separation incentive under this Act

9 may be paid based on the separation of an employee after

10 September 30, 2000.

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