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Union Calendar No. 33

106TH CONGRESS

1ST SESSION H. R. 807

[Report No. 106–53]

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

MARCH 16, 1999

Reported with amendments, committed to the Committee of the Whole House

on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on February 23, 1999]

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,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Federal Reserve Board

3 Retirement Portability Act’’.

4 SEC. 2. PORTABILITY OF SERVICE CREDIT.

5 (a) CREDITABLE SERVICE.—

6 (1) IN GENERAL.—Section 8411(b) of title 5,

7 United States Code, is amended—

8 (A) by striking ‘‘and’’ at the end of para9 graph (3);

10 (B) in paragraph (4)—

11 (i) by striking ‘‘of the preceding provi12 sions’’ and inserting ‘‘other paragraph’’;

13 and

14 (ii) by striking the period at the end

15 and inserting ‘‘; and’’; and

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

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

18 under any other paragraph of this subsection, any

19 military service, and any service performed in the

20 employ of a Federal Reserve Bank) that was cred21 itable under the Bank Plan (as defined in subsection

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

23 under the Bank Plan and makes a payment to the

24 Fund equal to the amount that would have been de25 ducted from pay under section 8422(a) had the em26 ployee been subject to this chapter during such period
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1 of service (together with interest on such amount com2 puted under paragraphs (2) and (3) of section

3 8334(e)).

4 Paragraph (5) shall not apply in the case of any employee

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

6 of chapter 83 is involved, section 8332(n)) otherwise ap7 plies.’’.

8 (2) BANK PLAN DEFINED.—Section 8411 of title

9 5, United States Code, is amended by adding at the

10 end the following:

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

12 Plan’ means the benefit structure in which employees of the

13 Board of Governors of the Federal Reserve System ap14 pointed on or after January 1, 1984, participate, which

15 benefit structure is a component of the Retirement Plan for

16 Employees of the Federal Reserve System, established under

17 section 10 of the Federal Reserve Act (and any redesignated

18 or successor version of such benefit structure, if so identified

19 in writing by the Board of Governors of the Federal Reserve

20 System for purposes of this chapter).’’.

21 (b) EXCLUSION FROM CHAPTER 84.—

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

23 8402(b) of title 5, United States Code, is amended by

24 striking the matter before subparagraph (B) and in25 serting the following:
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1 ‘‘(2)(A) any employee or Member who has sepa2 rated from the service after—

3 ‘‘(i) having been subject to—

4 ‘‘(I) subchapter III of chapter 83

5 of this title;

6 ‘‘(II) subchapter I of chapter 8 of

7 title I of the Foreign Service Act of

8 1980; or

9 ‘‘(III) the benefit structure for em10 ployees of the Board of Governors of

11 the Federal Reserve System appointed

12 before January 1, 1984, that is a com13 ponent of the Retirement Plan for Em14 ployees of the Federal Reserve System,

15 established under section 10 of the Fed16 eral Reserve Act; and

17 ‘‘(ii) having completed—

18 ‘‘(I) at least 5 years of civilian

19 service creditable under subchapter III

20 of chapter 83 of this title;

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

22 service creditable under subchapter I of

23 chapter 8 of title I of the Foreign Serv24 ice Act of 1980; or
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1 ‘‘(III) at least 5 years of civilian

2 service (other than any service per3 formed in the employ of a Federal Re4 serve Bank) creditable under the ben5 efit structure for employees of the

6 Board of Governors of the Federal Re7 serve System appointed before January

8 1, 1984, that is a component of the Re9 tirement Plan for Employees of the

10 Federal Reserve System, established

11 under section 10 of the Federal Reserve

12 Act,

13 determined without regard to any deposit or

14 redeposit requirement under either such sub15 chapter or under such benefit structure, or

16 any requirement that the individual become

17 subject to either such subchapter or to such

18 benefit structure after performing the service

19 involved; or’’.

20 (2) EXCEPTION.—Subsection (d) of section 8402

21 of title 5, United States Code, is amended to read as

22 follows:

23 ‘‘(d) Paragraph (2) of subsection (b) shall not apply

24 to an individual who—

25 ‘‘(1) becomes subject to—
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1 ‘‘(A) subchapter II of chapter 8 of title I of

2 the Foreign Service Act of 1980 (relating to the

3 Foreign Service Pension System) pursuant to an

4 election; or

5 ‘‘(B) the benefit structure in which employ6 ees of the Board of Governors of the Federal Re7 serve System appointed on or after January 1,

8 1984, participate, which benefit structure is a

9 component of the Retirement Plan for Employees

10 of the Federal Reserve System, established under

11 section 10 of the Federal Reserve Act (and any

12 redesignated or successor version of such benefit

13 structure, if so identified in writing by the

14 Board of Governors of the Federal Reserve Sys15 tem for purposes of this chapter); and

16 ‘‘(2) subsequently enters a position in which, but

17 for paragraph (2) of subsection (b), such individual

18 would be subject to this chapter.’’.

19 (c) PROVISIONS RELATING TO CERTAIN FORMER EM20 PLOYEES.—A former employee of the Board of Governors

21 of the Federal Reserve System who—

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

23 than any service performed in the employ of a Fed24 eral Reserve Bank) creditable under the benefit struc25 ture for employees of the Board of Governors of the
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1 Federal Reserve System appointed before January 1,

2 1984, that is a component of the Retirement Plan for

3 Employees of the Federal Reserve System, established

4 under section 10 of the Federal Reserve Act;

5 (2) was subsequently employed subject to the ben6 efit structure in which employees of the Board of Gov7 ernors of the Federal Reserve System appointed on or

8 after January 1, 1984, participate, which benefit

9 structure is a component of the Retirement Plan for

10 Employees of the Federal Reserve System, established

11 under section 10 of the Federal Reserve Act (and any

12 redesignated or successor version of such benefit struc13 ture, if so identified in writing by the Board of Gov14 ernors of the Federal Reserve System for purposes of

15 chapter 84 of title 5, United States Code); and

16 (3) after service described in paragraph (2), be17 comes subject to and thereafter entitled to benefits

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

19 shall, for purposes of section 302 of the Federal Employees’

20 Retirement System Act of 1986 (100 Stat. 601; 5 U.S.C.

21 8331 note) be considered to have become subject to chapter

22 84 of title 5, United States Code, pursuant to an election

23 under section 301 of such Act.

24 (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 5,

10 United States Code, on or after the date of enactment

11 of this Act.

12 (3) PROVISIONS RELATING TO EXCLUSION FROM

13 CHAPTER.—The amendments made by subsection (b)

14 shall not apply to any former employee of the Board

15 of Governors of the Federal Reserve System who, sub16 sequent to his or her last period of service as an em17 ployee of the Board of Governors of the Federal Re18 serve System and prior to the date of enactment of

19 this Act, became subject to subchapter III of chapter

20 83 or chapter 84 of title 5, United States Code, under

21 the law in effect at the time of the individual’s ap22 pointment.
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1 SEC. 3. CERTAIN TRANSFERS TO BE TREATED AS A SEPARA2 TION FROM SERVICE FOR PURPOSES OF THE

3 THRIFT SAVINGS PLAN.

4 (a) AMENDMENTS TO CHAPTER 84 OF TITLE 5,

5 UNITED STATES CODE.—

6 (1) IN GENERAL.—Subchapter III of chapter 84

7 of title 5, United States Code, is amended by insert8 ing before section 8432 the following:

9 ‘‘§ 8431. Certain transfers to be treated as a separa10 tion

11 ‘‘(a) For purposes of this subchapter, separation from

12 Government employment includes a transfer from a posi13 tion that is subject to one of the retirement systems de14 scribed in subsection (b) to a position that is not subject

15 to any of them.

16 ‘‘(b) The retirement systems described in this sub17 section are—

18 ‘‘(1) the retirement system under this chapter;

19 ‘‘(2) the retirement system under subchapter III

20 of chapter 83; and

21 ‘‘(3) any other retirement system under which

22 individuals may contribute to the Thrift Savings

23 Fund through withholdings from pay.’’.

24 (2) CLERICAL AMENDMENT.—The table of sec25 tions for chapter 84 of title 5, United States Code, is
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1 amended by inserting before the item relating to sec2 tion 8432 the following:

‘‘8431. Certain transfers to be treated as a separation.’’.

3 (b) CONFORMING AMENDMENTS.—Subsection (b) of

4 section 8351 of title 5, United States Code, is amended by

5 redesignating paragraph (11) as paragraph (8), and by

6 adding at the end the following:

7 ‘‘(9) For the purpose of this section, separation

8 from Government employment includes a transfer de9 scribed in section 8431.’’.

10 (c) EFFECTIVE DATE.—The amendments made by this

11 section shall apply with respect to transfers occurring be12 fore, on, or after the date of enactment of this Act, except

13 that, for purposes of applying such amendments with re14 spect to any transfer occurring before such date of enact15 ment, the date of such transfer shall be considered to be the

16 date of enactment of this Act. The Executive Director (with17 in the meaning of section 8401(13) of title 5, United States

18 Code) may prescribe any regulations necessary to carry out

19 this subsection.

20 SEC. 4. CLARIFYING AMENDMENTS.

21 (a) IN GENERAL.—Subsection (f) of section 3304 of

22 title 5, United States Code, as added by section 2 of Public

23 Law 105–339, is amended—

24 (1) by striking paragraph (4);
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1 (2) by redesignating paragraphs (2) and (3) as

2 paragraphs (3) and (4), respectively; and

3 (3) by inserting after paragraph (1) the fol4 lowing:

5 ‘‘(2) If selected, a preference eligible or veteran de6 scribed in paragraph (1) shall acquire competitive status

7 and shall receive a career or career-conditional appoint8 ment, as appropriate.’’.

9 (b) EFFECTIVE DATE.—The amendments made by sub10 section (a) shall take effect as if enacted on October 31,

11 1998.

Amend the title so as to read: ‘‘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, and for other purposes.’’.
Union Calendar No. 33

106TH CONGRESS

1ST SESSION H.R. 807

[Report No. 106–53]

A BILL

To amend title 5, United States Code, to provide

take positions with other Government agencies.employment with the Federal Reserve Board toportability of service credit for persons who leave

MARCH 16, 1999

Reported with amendments, committed to the Committee

dered to be printedof the Whole House on the State of the Union, and or-