H. R. 3230—322
(2)(A) This paragraph applies to a converted employee who
was a prevailing rate employee (as defined under section 5342(2)
of title 5, United States Code) immediately before the employee’s
covered separation from Federal service.
(B) For purposes of computing the deferred annuity for a con-
verted employee referred to in subparagraph (A), the average pay
of the converted employee, computed under section 8331(4) of title
5, United States Code, as of the date of the employee’s covered
separation from Federal service, shall be adjusted at the same
time and by the same percentage that pay rates for positions
that are in the same area as, and are comparable to, the last
position the converted employee held as a prevailing rate employee,
are increased under section 5343(a) of such title during the period
beginning on that date and ending on the date on which the
converted employee attains early deferred retirement age.
(e) PAYMENT OF UNFUNDED LIABILITY.—(1) The military depart-
ment concerned shall be liable for that portion of any estimated
increase in the unfunded liability of the Civil Service Retirement
and Disability Fund established under section 8348 of title 5, United
States Code, which is attributable to any benefits payable from
such Fund to a converted employee, and any survivor of a converted
employee, when the increase results from—
(A) an increase in the average pay of the converted
employee under subsection (d) upon which such benefits are
computed; and
(B) the commencement of an early deferred annuity in
accordance with this section before the attainment of 62 years
of age by the converted employee.
(2) The estimated increase in the unfunded liability for each
department referred to in paragraph (1) shall be determined by
the Director of the Office of Personnel Management. In making
the determination, the Director shall consider any savings to the
Fund as a result of a pilot program established under this section.
The Secretary of the military department concerned shall pay the
amount so determined to the Director in 10 equal annual install-
ments with interest computed at the rate used in the most recent
valuation of the Civil Service Retirement System, with the first
payment thereof due at the end of the fiscal year in which an
increase in average pay under subsection (d) becomes effective.
(f) CONTRACTOR SERVICE NOT CREDITABLE.—Service performed
by a converted employee for a defense contractor after the employ-
ee’s covered separation from Federal service is not creditable service
for purposes of subchapter III of chapter 83 of title 5, United
States Code.
(g) RECEIPT
OF BENEFITS WHILE EMPLOYED
BY
A DEFENSE
CONTRACTOR.—A converted employee may commence receipt of an
early deferred annuity in accordance with this section while continu-
ing to work for a defense contractor.
(h) LUMP-SUM CREDIT PAYMENT.—If a converted employee dies
before attaining early deferred retirement age, such employee shall
be treated as a former employee who dies not retired for purposes
of payment of the lump-sum credit under section 8342(d) of title
5, United States Code.
(i) CONTINUED FEDERAL HEALTH BENEFITS COVERAGE.—Not-
withstanding section 8905a(e)(1)(A) of title 5, United States Code,
the continued coverage of a converted employee for health benefits
under chapter 89 of such title by reason of the application of
H. R. 3230—323
section 8905a of such title to such employee shall terminate 90
days after the date of the employee’s covered separation from
Federal employment. For the purposes of the preceding sentence,
a person who, except for subsection (b)(2), would be a converted
employee shall be considered a converted employee.
(j) REPORT BY GENERAL ACCOUNTING OFFICE.—The Comptroller
General shall conduct a study of each pilot program, if any, estab-
lished under this section and submit a report on the pilot program
to Congress not later than two years after the date on which
the program is established. The report shall contain the following:
(1) A review and evaluation of the program, including—
(A) an evaluation of the success of the privatization
outcomes of the program;
(B) a comparison and evaluation of such privatization
outcomes with the privatization outcomes with respect to
facilities at other military installations closed or realigned
under the base closure laws;
(C) an evaluation of the impact of the program on
the Federal workforce and whether the program results
in the maintenance of a skilled workforce for defense con-
tractors at an acceptable cost to the military department
concerned; and
(D) an assessment of the extent to which the program
is a cost-effective means of facilitating privatization of the
performance of Federal activities.
(2) Recommendations relating to the expansion of the pro-
gram to other installations and employees.
(3) Any other recommendation relating to the program.
(k) IMPLEMENTING REGULATIONS.—Not later than 30 days after
the Secretary of Defense notifies the Director of the Office of Person-
nel Management of a decision to establish a pilot program under
this section, the Director shall prescribe regulations to carry out
the provisions of this section with respect to that pilot program.
Before prescribing the regulations, the Director shall consult with
the Secretary.
(l) DEFINITIONS.—In this section:
(1) The term ‘‘converted employee’’ means a person who,
pursuant to subsection (b), is eligible for benefits under this
section.
(2) The term ‘‘covered separation from Federal service’’
means a separation from Federal service as described under
subsection (b)(1)(B).
(3) The term ‘‘Civil Service Retirement System’’ means
the retirement system under subchapter III of chapter 83 of
title 5, United States Code.
(4) The term ‘‘defense contractor’’ means any entity that—
(A) contracts with the Department of Defense to per-
form a function previously performed by Department of
Defense employees;
(B) performs that function at the same installation
at which such function was previously performed by
Department of Defense employees or in the vicinity of
that installation; and
(C) is the employer of one or more converted employees.
(5) The term ‘‘early deferred retirement age’’ means the
first age at which a converted employee would have been
eligible for immediate retirement under subsection (a) or (b)
H. R. 3230—324
of section 8336 of title 5, United States Code, if such converted
employee had remained an employee within the meaning of
section 8331(1) of such title continuously until attaining such
age.
(6) The term ‘‘severance pay’’ means severance pay payable
under section 5595 of title 5, United States Code.
(7) The term ‘‘separation pay’’ means separation pay pay-
able under section 5597 of title 5, United States Code.
(m) APPLICATION
OF PILOT PROGRAM.—In the event that a
pilot program is established for a military installation, the pilot
program shall apply to a covered separation from Federal service
by an employee of the Department of Defense at the installation
occurring on or after August 1, 1996.
Subtitle B—Department of Defense
Intelligence Personnel Policy
SEC. 1631. SHORT TITLE.
This subtitle may be cited as the ‘‘Department of Defense
Civilian Intelligence Personnel Policy Act of 1996’’.
SEC. 1632. MANAGEMENT OF CIVILIAN INTELLIGENCE PERSONNEL.
(a) CONSOLIDATION AND STANDARDIZATION OF CIVILIAN PERSON-
NEL POLICY.—Chapter 83 of title 10, United States Code, is
amended—
(1) by redesignating section 1602 as section 1621 and
transferring that section so as to appear after section 1605;
(2) by redesignating sections 1606 and 1608 as section
1622 and 1623, respectively; and
(3) by striking out the chapter heading, the table of sec-
tions, and sections 1601, 1603, and 1604 and inserting in lieu
thereof the following:
‘‘CHAPTER 83—CIVILIAN DEFENSE INTELLIGENCE
EMPLOYEES
‘‘Subchapter
Sec.
‘‘I. Defense-Wide Intelligence Personnel Policy ...................................................
1601
‘‘II. Defense Intelligence Agency Personnel ..........................................................
1621
‘‘SUBCHAPTER I—DEFENSE-WIDE INTELLIGENCE
PERSONNEL POLICY
‘‘Sec.
‘‘1601. Civilian intelligence personnel: general authority to establish excepted posi-
tions, appoint personnel, and fix rates of pay.
‘‘1602. Basic pay.
‘‘1603. Additional compensation, incentives, and allowances.
‘‘1605. Benefits for certain employees assigned outside the United States.
‘‘1606. Defense Intelligence Senior Executive Service.
‘‘1607. Intelligence Senior Level positions.
‘‘1608. Time-limited appointments.
‘‘1609. Termination of defense intelligence employees.
‘‘1610. Reductions and other adjustments in force.
‘‘1611. Postemployment assistance: certain terminated intelligence employees.
‘‘1612. Merit system principles and civil service protections: applicability.
‘‘1613. Miscellaneous provisions.
‘‘1614. Definitions.
H. R. 3230—325
‘‘§ 1601. Civilian intelligence personnel: general authority to
establish excepted positions, appoint personnel,
and fix rates of pay
‘‘(a) GENERAL AUTHORITY.—The Secretary of Defense may—
‘‘(1) establish, as positions in the excepted service, such
defense intelligence positions in the intelligence components
of the Department of Defense and the military departments
as the Secretary determines necessary to carry out the
intelligence functions of those components and departments,
including—
‘‘(A) Intelligence Senior Level positions designated
under section 1607 of this title; and
‘‘(B) positions in the Defense Intelligence Senior Execu-
tive Service;
‘‘(2) appoint individuals to those positions (after taking
into consideration the availability of preference eligibles for
appointment to those positions); and
‘‘(3) fix the compensation of such individuals for service
in those positions.
‘‘(b) CONSTRUCTION WITH OTHER LAWS.—The authority of the
Secretary of Defense under subsection (a) applies without regard
to the provisions of any other law relating to the appointment,
number, classification, or compensation of employees.
‘‘§ 1602. Basic pay
‘‘(a) AUTHORITY TO FIX RATES OF BASIC PAY.—The Secretary
of Defense (subject to the provisions of this section) shall fix the
rates of basic pay for positions established under section 1601
of this title in relation to the rates of basic pay provided in subpart
D of part III of title 5 for positions subject to that subpart which
have corresponding levels of duties and responsibilities.
‘‘(b) MAXIMUM RATES.—A rate of basic pay fixed under sub-
section (a) for a position established under section 1601 of this
title may not (except as otherwise provided by law) exceed—
‘‘(1) in the case of a Defense Intelligence Senior Executive
Service position, the maximum rate provided in section 5382
of title 5;
‘‘(2) in the case of an Intelligence Senior Level position,
the maximum rate provided in section 5382 of title 5; and
‘‘(3) in the case of any other position, the maximum rate
provided in section 5306(e) of title 5.
‘‘(c) PREVAILING RATE SYSTEMS.—The Secretary of Defense
may, consistent with section 5341 of title 5, adopt such provisions
of that title as provide for prevailing rate systems of basic pay
and may apply those provisions to positions for civilian employees
in or under which the Department of Defense may employ individ-
uals described by section 5342(a)(2)(A) of that title.
‘‘§ 1603. Additional compensation, incentives, and allowances
‘‘(a) ADDITIONAL COMPENSATION BASED ON TITLE 5 AUTHORI-
TIES.—The Secretary of Defense may provide employees in defense
intelligence positions compensation (in addition to basic pay),
including benefits, incentives, and allowances, consistent with, and
not in excess of the level authorized for, comparable positions
authorized by title 5.
‘‘(b) ALLOWANCES BASED ON LIVING COSTS AND ENVIRONMENT.—
(1) In addition to basic pay, employees in defense intelligence posi-