106TH CONGRESS

1ST SESSION H. R. 807

AN ACT

To amend title 5, United States Code, to provide

and for other purposes.take positions with other Government agencies,employment with the Federal Reserve Board toportability of service credit for persons who leave
106TH CONGRESS

1ST SESSION H. R. 807

AN ACT

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.

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 pe-
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1 riod of service (together with interest on such

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

3 section 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

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

7 applies.’’.

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

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

10 at the end the following:

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

12 ‘Bank Plan’ means the benefit structure in which employ13 ees of the Board of Governors of the Federal Reserve Sys14 tem appointed on or after January 1, 1984, participate,

15 which benefit structure is a component of the Retirement

16 Plan for Employees of the Federal Reserve System, estab17 lished under section 10 of the Federal Reserve Act (and

18 any redesignated or successor version of such benefit

19 structure, if so identified in writing by the Board of Gov20 ernors of the Federal Reserve System for purposes of this

21 chapter).’’.

22 (b) EXCLUSION FROM CHAPTER 84.—

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

24 8402(b) of title 5, United States Code, is amended
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1 by striking the matter before subparagraph (B) and

2 inserting the following:

3 ‘‘(2)(A) any employee or Member who has sepa4 rated from the service after—

5 ‘‘(i) having been subject to—

6 ‘‘(I) subchapter III of chapter 83

7 of this title;

8 ‘‘(II) subchapter I of chapter 8 of

9 title I of the Foreign Service Act of

10 1980; or

11 ‘‘(III) the benefit structure for

12 employees of the Board of Governors

13 of the Federal Reserve System ap14 pointed before January 1, 1984, that

15 is a component of the Retirement

16 Plan for Employees of the Federal

17 Reserve System, established under

18 section 10 of the Federal Reserve Act;

19 and

20 ‘‘(ii) having completed—

21 ‘‘(I) at least 5 years of civilian

22 service creditable under subchapter

23 III of chapter 83 of this title;

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

25 service creditable under subchapter I
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1 of chapter 8 of title I of the Foreign

2 Service Act of 1980; or

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

4 service (other than any service per5 formed in the employ of a Federal Re6 serve Bank) creditable under the ben7 efit structure for employees of the

8 Board of Governors of the Federal

9 Reserve System appointed before Jan10 uary 1, 1984, that is a component of

11 the Retirement Plan for Employees of

12 the Federal Reserve System, estab13 lished under section 10 of the Federal

14 Reserve Act,

15 determined without regard to any deposit

16 or redeposit requirement under either such

17 subchapter or under such benefit structure,

18 or any requirement that the individual be19 come subject to either such subchapter or

20 to such benefit structure after performing

21 the service involved; or’’.

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

23 8402 of title 5, United States Code, is amended to

24 read as follows:
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1 ‘‘(d) Paragraph (2) of subsection (b) shall not apply

2 to an individual who—

3 ‘‘(1) becomes subject to—

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

5 of the Foreign Service Act of 1980 (relating to

6 the Foreign Service Pension System) pursuant

7 to an election; or

8 ‘‘(B) the benefit structure in which em9 ployees of the Board of Governors of the Fed10 eral Reserve System appointed on or after Jan11 uary 1, 1984, participate, which benefit struc12 ture is a component of the Retirement Plan for

13 Employees of the Federal Reserve System, es14 tablished under section 10 of the Federal Re15 serve Act (and any redesignated or successor

16 version of such benefit structure, if so identified

17 in writing by the Board of Governors of the

18 Federal Reserve System for purposes of this

19 chapter); and

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

21 but for paragraph (2) of subsection (b), such indi22 vidual would be subject to this chapter.’’.

23 (c) PROVISIONS RELATING TO CERTAIN FORMER

24 EMPLOYEES.—A former employee of the Board of Gov25 ernors of the Federal Reserve System who—
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1 (1) has at least 5 years of civilian service (other

2 than any service performed in the employ of a Fed3 eral Reserve Bank) creditable under the benefit

4 structure for employees of the Board of Governors

5 of the Federal Reserve System appointed before

6 January 1, 1984, that is a component of the Retire7 ment Plan for Employees of the Federal Reserve

8 System, established under section 10 of the Federal

9 Reserve Act;

10 (2) was subsequently employed subject to the

11 benefit structure in which employees of the Board of

12 Governors of the Federal Reserve System appointed

13 on or after January 1, 1984, participate, which ben14 efit structure is a component of the Retirement Plan

15 for Employees of the Federal Reserve System, estab16 lished under section 10 of the Federal Reserve Act

17 (and any redesignated or successor version of such

18 benefit structure, if so identified in writing by the

19 Board of Governors of the Federal Reserve System

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

21 Code); and

22 (3) after service described in paragraph (2), be23 comes subject to and thereafter entitled to benefits

24 under chapter 84 of title 5, United States Code,
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1 shall, for purposes of section 302 of the Federal Employ2 ees’ Retirement System Act of 1986 (100 Stat. 601; 5

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

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

5 an election under section 301 of such Act.

6 (d) EFFECTIVE DATE.—

7 (1) IN GENERAL.—Subject to succeeding provi8 sions of this subsection, this section and the amend9 ments made by this section shall take effect on the

10 date of enactment of this Act.

11 (2) PROVISIONS RELATING TO CREDITABILITY

12 AND CERTAIN FORMER EMPLOYEES.—The amend13 ments made by subsection (a) and the provisions of

14 subsection (c) shall apply only to individuals who

15 separate from service subject to chapter 84 of title

16 5, United States Code, on or after the date of enact17 ment of this Act.

18 (3) PROVISIONS RELATING TO EXCLUSION

19 FROM CHAPTER.—The amendments made by sub20 section (b) shall not apply to any former employee

21 of the Board of Governors of the Federal Reserve

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

23 service as an employee of the Board of Governors of

24 the Federal Reserve System and prior to the date of

25 enactment of this Act, became subject to subchapter
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1 III of chapter 83 or chapter 84 of title 5, United

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

3 the individual’s appointment.

4 SEC. 3. CERTAIN TRANSFERS TO BE TREATED AS A SEPA5 RATION FROM SERVICE FOR PURPOSES OF

6 THE THRIFT SAVINGS PLAN.

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

8 UNITED STATES CODE.—

9 (1) IN GENERAL.—Subchapter III of chapter

10 84 of title 5, United States Code, is amended by in11 serting before section 8432 the following:

12 ‘‘§ 8431. Certain transfers to be treated as a separa13 tion

14 ‘‘(a) For purposes of this subchapter, separation

15 from Government employment includes a transfer from a

16 position that is subject to one of the retirement systems

17 described in subsection (b) to a position that is not subject

18 to any of them.

19 ‘‘(b) The retirement systems described in this sub20 section are—

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

22 ‘‘(2) the retirement system under subchapter

23 III of chapter 83; and
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1 ‘‘(3) any other retirement system under which

2 individuals may contribute to the Thrift Savings

3 Fund through withholdings from pay.’’.

4 (2) CLERICAL AMENDMENT.—The table of sec5 tions for chapter 84 of title 5, United States Code,

6 is amended by inserting before the item relating to

7 section 8432 the following:

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

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

9 section 8351 of title 5, United States Code, is amended

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

11 by adding at the end the following:

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

13 from Government employment includes a transfer

14 described in section 8431.’’.

15 (c) EFFECTIVE DATE.—The amendments made by

16 this section shall apply with respect to transfers occurring

17 before, on, or after the date of enactment of this Act, ex18 cept that, for purposes of applying such amendments with

19 respect to any transfer occurring before such date of en20 actment, the date of such transfer shall be considered to

21 be the date of enactment of this Act. The Executive Direc22 tor (within the meaning of section 8401(13) of title 5,

23 United States Code) may prescribe any regulations nec24 essary to carry out this subsection.
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1 SEC. 4. CLARIFYING AMENDMENTS.

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

3 title 5, United States Code, as added by section 2 of Pub4 lic Law 105–339, is amended—

5 (1) by striking paragraph (4);

6 (2) by redesignating paragraphs (2) and (3) as

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

8 (3) by inserting after paragraph (1) the follow9 ing:

10 ‘‘(2) If selected, a preference eligible or veteran de11 scribed in paragraph (1) shall acquire competitive status

12 and shall receive a career or career-conditional appoint13 ment, as appropriate.’’.

14 (b) EFFECTIVE DATE.—The amendments made by

15 subsection (a) shall take effect as if enacted on October

16 31, 1998.

Passed the House of Representatives March 16,

1999.

Attest:

Clerk.