I

106TH CONGRESS

1ST SESSION H. R. 807

To amend title 5, United States Code, to provide portability of service credit

for persons who leave employment with the Federal Reserve Board to

take positions with other Government agencies.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 23, 1999

Mr. SCARBOROUGH (for himself, Ms. NORTON, Mr. CUMMINGS, Mrs. Morella,

Mr. HOYER, Mr. DAVIS of Virginia, Mr. MORAN of Virginia, Mr. WAXMAN, and Mr. MICA) introduced the following bill; which was referred to

the Committee on Government Reform

A BILL

To amend title 5, United States Code, to provide portability

of service credit for persons who leave employment with

the Federal Reserve Board to take positions with other

Government agencies.

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 Reserve Board

5 Retirement Portability Act’’.

6 SEC. 2. PORTABILITY OF SERVICE CREDIT.

7 (a) CREDITABLE SERVICE.—
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1 (1) IN GENERAL.—Section 8411(b) of title 5,

2 United States Code, is amended—

3 (A) by striking ‘‘and’’ at the end of para4 graph (3);

5 (B) in paragraph (4)—

6 (i) by striking ‘‘of the preceding provi7 sions’’ and inserting ‘‘other paragraph’’;

8 and

9 (ii) by striking the period at the end

10 and inserting ‘‘; and’’; and

11 (C) by adding at the end the following:

12 ‘‘(5) a period of service (other than any service

13 under any other paragraph of this subsection, any

14 military service, and any service performed in the

15 employ of a Federal Reserve Bank) that was cred16 itable under the Bank Plan (as defined in subsection

17 (i)), if the employee waives credit for such service

18 under the Bank Plan and makes a payment to the

19 Fund equal to the amount that would have been de20 ducted from pay under section 8422(a) had the em21 ployee been subject to this chapter during such pe22 riod of service (together with interest on such

23 amount computed under paragraphs (2) and (3) of

24 section 8334(e)).
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1 Paragraph (5) shall not apply in the case of any employee

2 as to whom subsection (g) (or, to the extent subchapter

3 III of chapter 83 is involved, section 8332(n)) otherwise

4 applies.’’.

5 (2) BANK PLAN DEFINED.—Section 8411 of

6 title 5, United States Code, is amended by adding

7 at the end the following:

8 ‘‘(i) For purposes of subsection (b)(5), the term

9 ‘Bank Plan’ means the benefit structure in which employ10 ees of the Board of Governors of the Federal Reserve Sys11 tem appointed on or after January 1, 1984, participate,

12 which benefit structure is a component of the Retirement

13 Plan for Employees of the Federal Reserve System, estab14 lished under section 10 of the Federal Reserve Act (and

15 any redesignated or successor version of such benefit

16 structure, if so identified in writing by the Board of Gov17 ernors of the Federal Reserve System for purposes of this

18 chapter).’’.

19 (b) EXCLUSION FROM CHAPTER 84.—

20 (1) IN GENERAL.—Paragraph (2) of section

21 8402(b) of title 5, United States Code, is amended

22 by striking the matter before subparagraph (B) and

23 inserting the following:

24 ‘‘(2)(A) any employee or Member who has sepa25 rated from the service after—
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1 ‘‘(i) having been subject to—

2 ‘‘(I) subchapter III of chapter 83

3 of this title;

4 ‘‘(II) subchapter I of chapter 8 of

5 title I of the Foreign Service Act of

6 1980; or

7 ‘‘(III) the benefit structure for

8 employees of the Board of Governors

9 of the Federal Reserve System ap10 pointed before January 1, 1984, that

11 is a component of the Retirement

12 Plan for Employees of the Federal

13 Reserve System, established under

14 section 10 of the Federal Reserve Act;

15 and

16 ‘‘(ii) having completed—

17 ‘‘(I) at least 5 years of civilian

18 service creditable under subchapter

19 III of chapter 83 of this title;

20 ‘‘(II) at least 5 years of civilian

21 service creditable under subchapter I

22 of chapter 8 of title I of the Foreign

23 Service Act of 1980; or

24 ‘‘(III) at least 5 years of civilian

25 service (other than any service per-
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1 formed in the employ of a Federal Re2 serve Bank) creditable under the ben3 efit structure for employees of the

4 Board of Governors of the Federal

5 Reserve System appointed before Jan6 uary 1, 1984, that is a component of

7 the Retirement Plan for Employees of

8 the Federal Reserve System, estab9 lished under section 10 of the Federal

10 Reserve Act,

11 determined without regard to any deposit

12 or redeposit requirement under either such

13 subchapter or benefit structure, or any re14 quirement that the individual become sub15 ject to either such subchapter or benefit

16 structure after performing the service in17 volved; or’’.

18 (2) EXCEPTION.—Subsection (d) of section

19 8402 of title 5, United States Code, is amended to

20 read as follows:

21 ‘‘(d) Paragraph (2) of subchapter (b) shall not apply

22 to an individual who—

23 ‘‘(1) becomes subject to—

24 ‘‘(A) subchapter II of chapter 8 of title I

25 of the Foreign Service Act of 1980 (relating to
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1 the Foreign Service Pension System) pursuant

2 to an election; or

3 ‘‘(B) the benefit structure in which em4 ployees of the Board of Governors of the Fed5 eral Reserve system appointed on or after Jan6 uary 1, 1984, participate, which benefit struc7 ture is a component of the Retirement Plan for

8 Employees of the Federal Reserve System, es9 tablished under section 10 of the Federal Re10 serve Act (and any redesignated or successor

11 version of such benefit structure, if so identified

12 in writing by the Board of Governors of the

13 Federal Reserve System for purposes of this

14 chapter); and

15 ‘‘(2) subsequently enters a position in which,

16 but for paragraph (2) of subsection (b), such indi17 vidual would be subject to this chapter.’’.

18 (c) PROVISIONS RELATING TO CERTAIN FORMER

19 EMPLOYEES.—A former employee of the Board of Gov20 ernors of the Federal Reserve System who—

21 (1) has at least 5 years of civilian service (other

22 than any service performed in the employ of a Fed23 eral Reserve Bank) creditable under the benefit

24 structure for employees of the Board of Governors

25 of the Federal Reserve System appointed before
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1 January 1, 1984, that is a component of the Retire2 ment Plan for Employees of the Federal Reserve

3 System, established under section 10 of the Federal

4 Reserve Act;

5 (2) was subsequently employed subject to the

6 benefit structure in which employees of the Board of

7 Governors of the Federal Reserve System appointed

8 on or after January 1, 1984, participate, which ben9 efit structure is a component of the Retirement Plan

10 for Employees of the Federal Reserve System, estab11 lished under section 10 of the Federal Reserve Act

12 (and any redesignated or successor version of such

13 benefit structure, if so identified in writing by the

14 Board of Governors of the Federal Reserve System

15 for purposes of chapter 84 of title 5, United States

16 Code); and

17 (3) after service described in paragraph (2), be18 comes subject to and thereafter entitled to benefits

19 under chapter 84 of title 5, United States Code,

20 shall, for purposes of section 302 of the Federal Employ21 ees’ Retirement System Act of 1986 (100 Stat. 601; 5

22 U.S.C. 8331 note) be considered to have become subject

23 to chapter 84 of title 5, United States Code, pursuant to

24 an election under section 301 of such Act.

25 (d) EFFECTIVE DATE.—
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1 (1) IN GENERAL.—Subject to succeeding provi2 sions of this subsection, this section and the amend3 ments made by this section shall take effect on the

4 date of enactment of this Act.

5 (2) PROVISIONS RELATING TO CREDITABILITY

6 AND CERTAIN FORMER EMPLOYEES.—The amend7 ments made by subsection (a) and the provisions of

8 subsection (c) shall apply only to individuals who

9 separate from service subject to chapter 84 of title

10 5, United States Code, on or after the date of enact11 ment of this Act.

12 (3) PROVISIONS RELATING TO EXCLUSION

13 FROM CHAPTER.—The amendments made by sub14 section (b) shall not apply to any former employee

15 of the Board of Governors of the Federal Reserve

16 System who, subsequent to his or her last period of

17 service as an employee of the Board of Governors of

18 the Federal Reserve System and prior to the date of

19 enactment of this Act, became subject to subchapter

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

21 States Code, under the law in effect at the time of

22 the individual’s appointment.

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