59–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 114–765 

FULL ANNUITY SUPPLEMENT FOR CERTAIN AIR TRAFFIC 

CONTROLLERS 

SEPTEMBER 20, 2016.—Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 

Mr. CHAFFETZ, from the Committee on Oversight and Government 

Reform, submitted the following 

R E P O R T 

[To accompany H.R. 5785] 

The Committee on Oversight and Government Reform, to whom 

was referred the bill (H.R. 5785) to amend title 5, United States 

Code, to provide for an annuity supplement for certain air traffic 

controllers, having considered the same, report favorably thereon 

without amendment and recommend that the bill do pass. 

CONTENTS 

Page 

Committee Statement and Views ........................................................................... 1 

Section-by-Section .................................................................................................... 3 

Explanation of Amendments ................................................................................... 3 

Committee Consideration ........................................................................................ 3 

Roll Call Votes ......................................................................................................... 3 

Application of Law to the Legislative Branch ....................................................... 3 

Statement of Oversight Findings and Recommendations of the Committee ...... 4 

Statement of General Performance Goals and Objectives .................................... 4 

Duplication of Federal Programs ............................................................................ 4 

Disclosure of Directed Rule Makings ..................................................................... 4 

Federal Advisory Committee Act ............................................................................ 4 

Unfunded Mandate Statement ............................................................................... 4 

Earmark Identification ............................................................................................ 4 

Committee Estimate ................................................................................................ 4 

Budget Authority and Congressional Budget Office Cost Estimate .................... 5 

Changes in Existing Law Made by the Bill, as Reported ..................................... 5 

COMMITTEE STATEMENT AND VIEWS

PURPOSE AND SUMMARY

H.R. 5785, to amend title 5, United States Code, to provide for 

an annuity supplement for certain air traffic controllers, exempts 

full-time air traffic control instructors under contract with the FedVerDate Sep 11 2014 05:41 Sep 24, 2016 Jkt 059006 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\HR765.XXX HR765

smartinez on DSK3GLQ082PROD with REPORTS-HSE
2 

1Memorandum from SAIC to Republican and Democratic Staff on the H. Comm. on Oversight 

& Gov’t Reform, Retirement Income Limit Waiver for Air Traffic Controller Instructors (July 28, 

2016). 2SAIC, Press Release, SAIC Awarded $425 Million Controller Training Contract by FAA (May 

4, 2015). 3 Retirement Income Limit Waiver for Air Traffic Controller Instructors, supra note 1. 4 5 U.S.C. § 8335 

5 5 U.S.C. § 8421 

6 5 U.S.C. § 8421a. 

eral Aviation Administration (FAA) from the reduction to the Federal Employees Retirement System (FERS) annuity supplement 

when an annuitant receives excess earnings. The bill incentivizes 

former air traffic controllers to continue service after mandatory retirement as full-time contracted air traffic controller instructors. 

BACKGROUND AND NEED FOR LEGISLATION

The FAA is responsible for the safety of America’s airways. It 

employs uniquely skilled and highly trained air traffic controllers 

(ATCs) to ensure smooth and safe operations across the country. 

However, FAA is facing a growing critical shortage of trained controllers. Approximately 6,000 new ATCs will need to be hired in 

the next five years alone. 

In order to meet this hiring challenge, FAA needs qualified ATC 

instructors to train the new hires. FAA regulations, however, are 

very strict on who may become an ATC instructor. Generally, ATC 

instructors must have been an active FAA controller for some part 

of their career and within the previous five years prior to applying 

for a contract instructor position.1 This limits the pool of available 

ATC instructors. 

FAA relies upon contracted ATC instructors and awarded a competitively bid contract in 2015 to train the new corps of controllers 

at facilities located mostly in Oklahoma City, Oklahoma, and 

Washington, D.C.2 Under the contract, the awardee is the only provider of this service to the FAA. Unfortunately, the awardee has 

found it difficult to attract ATC instructors to work, in part because of the FAA regulations restricting contracted ATC instructor 

eligibility.3

In other main cause of the hiring challenges is the excess earnings reduction to which ATCs are subject upon retirement. With 

limited exceptions, ATCs who join the FAA under FERS are required to retire at the age of 56 due to the strenuous nature of 

their jobs.4 Upon retirement, they are eligible for a FERS annuity 

supplement that approximates what they would earn in Social Security benefits until age 62.5 This annuity supplement is necessary 

because Social Security benefits do not begin until the age of 62. 

The annuity supplement is currently subject to an excess earnings reduction in 5 U.S.C. 8421a(a) for every dollar earned over the 

Social Security earnings limits of $15,720 per year.6 Thus, retired 

ATCs who receive compensation greater than the earnings limitation could forfeit a portion or the entire amount of their FERS annuity supplement, depending on the amount of their earnings. H.R. 

5785 would alter this dynamic. It would incentivize former ATCs 

to become full-time instructors after retirement by eliminating the 

earnings cap while they are instructors and allowing them to continue to receive their full FERS annuity supplement. These instrucVerDate Sep 11 2014 04:36 Sep 24, 2016 Jkt 059006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\HR765.XXX HR765

smartinez on DSK3GLQ082PROD with REPORTS-HSE
3 

tors would help train the next generation of ATCs and maintain 

the security of the nation’s airways. 

LEGISLATIVE HISTORY

H.R. 5785 was introduced on July 14, 2016 by Representative 

Steve Russell (R–OK) and referred to the Committee on Oversight 

and Government Reform. On September 15, 2016, the Committee 

on Oversight and Government Reform ordered H.R. 5785 favorably 

reported by unanimous consent, without amendment. 

Additionally, the text of this bill passed the Senate by a vote of 

95–3 on April 19, 2016 as part of the Senate amendment to H.R. 

636, the FAA Extension, Safety, and Security Act of 2016, but it 

was among a number of provisions not ultimately included in the 

final version of H.R. 636 that became law on July 15, 2016. 

A similar bill to H.R. 5785, S. 3217, was introduced by Sen. 

James Inhofe (R–OK) on July 14, 2016 and referred to the Senate 

Committee on Homeland Security and Governmental Affairs. 

SECTION-BY-SECTION

Section 1. Full annuity supplement for certain air traffic controllers 

Amends Section 8421a of title 5, United States Code, to exempt 

former air traffic controllers under contract with the Federal Aviation Administration as full-time instructors from a reduction to the 

Federal Employees Retirement System (FERS) annuity supplement 

when an annuitant receives earnings above the Social Security 

earnings limit. 

EXPLANATION OF AMENDMENTS

No amendments to H.R. 5785 were offered or adopted during 

Full Committee consideration of the bill. 

COMMITTEE CONSIDERATION

On September 15, 2016 the Committee met in open session and 

ordered reported favorably the bill, H.R. 5785, by unanimous consent, a quorum being present. 

ROLL CALL VOTES

No roll call votes were requested or conducted during Full Committee consideration of H.R. 5785. 

APPLICATION OF LAW TO THE LEGISLATIVE BRANCH

Section 102(b)(3) of Public Law 104–1 requires a description of 

the application of this bill to the legislative branch where the bill 

relates to the terms and conditions of employment or access to public services and accommodations. This bill amends title 5, United 

States Code, to provide for an annuity supplement for certain air 

traffic controllers. As such this bill does not relate to employment 

or access to public services and accommodations. 


smartinez on DSK3GLQ082PROD with REPORTS-HSE
4 

STATEMENT OF OVERSIGHT FINDINGS AND RECOMMENDATIONS OF

THE COMMITTEE

In compliance with clause 3(c)(1) of rule XIII and clause 2(b)(1) 

of rule X of the Rules of the House of Representatives, the Committee’s oversight findings and recommendations are reflected in the 

descriptive portions of this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

In accordance with clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee’s performance goal or objective is to amend title 5, United States Code, to provide for an 

annuity supplement for certain air traffic controllers. 

DUPLICATION OF FEDERAL PROGRAMS

No provision of this bill establishes or reauthorizes a program of 

the Federal Government known to be duplicative of another Federal program, a program that was included in any report from the 

Government Accountability Office to Congress pursuant to section 

21 of Public Law 111–139, or a program related to a program identified in the most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULE MAKINGS

The Committee estimates that enacting this bill does not direct 

the completion of any specific rule makings within the meaning of 

5 U.S.C. 551. 

FEDERAL ADVISORY COMMITTEE ACT

The Committee finds that the legislation does not establish or 

authorize the establishment of an advisory committee within the 

definition of 5 U.S.C. App., Section 5(b). 

UNFUNDED MANDATE STATEMENT

Section 423 of the Congressional Budget and Impoundment Control Act (as amended by Section 101(a)(2) of the Unfunded Mandates Reform Act, P.L. 104–4) requires a statement as to whether 

the provisions of the reported include unfunded mandates. In compliance with this requirement the Committee has received a letter 

from the Congressional Budget Office included herein. 

EARMARK IDENTIFICATION

This bill does not include any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI. 

COMMITTEE ESTIMATE

At the time of this writing, the Committee had yet to receive a 

formal cost estimate from the Congressional Budget Office for H.R. 

5785. However, preliminary analysis from CBO suggests that the 

bill would provide for no significant budgetary effects. 


smartinez on DSK3GLQ082PROD with REPORTS-HSE
5 

BUDGET AUTHORITY AND CONGRESSIONAL BUDGET OFFICE COST

ESTIMATE

With respect to the requirements of clause 3(c)(2) of rule XIII of 

the Rules of the House of Representatives and section 308(a) of the 

Congressional Budget Act of 1974 and with respect to requirements 

of clause (3)(c)(3) of rule XIII of the Rules of the House of Representatives and section 402 of the Congressional Budget Act of 

1974, the Committee has not received a cost estimate for this bill 

from the Director of Congressional Budget Office, and instead has 

included a committee estimate in the section prior to this one. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

and existing law in which no change is proposed is shown in 

roman): 

TITLE 5, UNITED STATES CODE 

* * * * * * * 

PART III—EMPLOYEES 

* * * * * * * 

SUBPART G—INSURANCE AND ANNUITIES 

* * * * * * * 

CHAPTER 84—FEDERAL EMPLOYEES’ RETIREMENT 

SYSTEM 

* * * * * * * 

SUBCHAPTER II—BASIC ANNUITY 

* * * * * * * 

§ 8421a. Reductions on account of earnings from work performed while entitled to an annuity supplement 

(a) øThe amount¿ Except as provided in subsection (c), the 

amount of the annuity supplement to which an individual is entitled under section 8421 for any month (determined without regard 

to subsection (c) of such section) shall be reduced by the amount 

of any excess earnings of such individual which are required to be 

charged to such supplement for such month, as determined under 

subsection (b). 

(b) The amount of an individual’s excess earnings shall be 

charged to months as follows: 

(1)(A) There shall be charged to each month of a year under 

subsection (a) an amount equal to the individual’s excess earnings (as determined under paragraph (2) with respect to such 

year), divided by the number of the individual’s supplement enVerDate Sep 11 2014 04:36 Sep 24, 2016 Jkt 059006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\HR765.XXX HR765

smartinez on DSK3GLQ082PROD with REPORTS-HSE
6 

titlement months for such year (as determined under paragraph (3)). 

(B) Notwithstanding subparagraph (A), the amount charged 

to a month under subsection (a) may not exceed the amount of 

the annuity supplement to which the individual is entitled 

under section 8421 for such month (determined without regard 

to subsection (c) of such section). 

(2) The excess earnings based on which reductions under 

subsection (a) shall be made with respect to an individual in 

a year— 

(A) shall be equal to 50 percent of so much of such individual’s earnings for the immediately preceding year as exceeds the applicable exempt amount for such preceding 

year; but 

(B) may not exceed the total amount of the annuity supplement payments to which such individual was entitled 

for such preceding year under section 8421 (determined 

without regard to subsection (c) of such section, and without regard to this section). 

(3)(A) Subject to subparagraph (B), the number of an individual’s supplement entitlement months for a year shall be 12. 

(B) The number determined under subparagraph (A) shall be 

reduced so as not to include any month after which such individual ceases to be entitled to an annuity supplement by reason of section 8421(a)(3)(B), relating to cessation of entitlement 

upon attaining age 62. 

(4)(A) For purposes of this section, and except as provided in 

subparagraph (B), the ‘‘earnings’’ and the ‘‘applicable exempt 

amount’’ of an individual shall be determined in a manner consistent with applicable provisions of section 203 of the Social 

Security Act. 

(B) For purposes of this section— 

(i) in determining the excess earnings of any individual, 

only earnings attributable to periods during which such individual was entitled to an annuity supplement under section 8421 shall be considered; and 

(ii) any earnings attributable to a period before attaining 

the applicable retirement age under section 8412(h) shall 

not be considered in determining the excess earnings of an 

individual who retires under section 8412(d) or (e), or section 8414(c). 

(5) Notwithstanding paragraphs (1) through (4), the reduction required by subsection (a) shall be effective with respect 

to the annuity supplement payable for each month in the 12- 

month period beginning on the first day of the seventh month 

after the end of the calendar year in which the excess earnings 

were earned. 

(c) This section shall not apply to an individual described in section 8412(e) during any period in which the individual, after separating from the service as described in that section, is employed fulltime as an air traffic control instructor under contract with the Federal Aviation Administration, including an instructor working at an 

on-site facility (such as an airport). 


smartinez on DSK3GLQ082PROD with REPORTS-HSE
7 

ø(c)¿ (d) The Office shall prescribe regulations under which this 

section shall be applied in the case of a reemployed annuitant. 

* * * * * * * 

Æ 


smartinez on DSK3GLQ082PROD with REPORTS-HSE