I
104TH CONGRESS
1ST SESSION
H. R. 2826
To allow agencies to offer certain Federal employees an opportunity to take
early retirement without having to remain subject to the otherwise appli-
cable reduction, based on age, after attaining age 55.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 21, 1995
Mrs. MORELLA (for herself, Mr. DAVIS, Ms. NORTON, Mr. WOLF, Mr. MORAN,
Mr. WYNN, and Mr. HOYER) introduced the following bill; which was re-
ferred to the Committee on Government Reform and Oversight
A BILL
To allow agencies to offer certain Federal employees an
opportunity to take early retirement without having to
remain subject to the otherwise applicable reduction,
based on age, after attaining age 55.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. AUTHORITY.
(a) IN GENERAL.—In order to avoid or minimize the
need for involuntary separations due to a reduction in
force, reorganization, transfer of function, or other similar
action, the head of an agency may offer early retirement
under this section to employees of such agency—
(1) in any component thereof;
(2) in any occupation;
(3) in any geographic location; or
(4) on the basis of any combination of factors
under paragraphs (1) through (3).
(b) TREATMENT OF EMPLOYEES TAKING EARLY RE-
TIREMENT UNDER THIS SECTION.—
(1) IN GENERAL.—In the case of an employee
who takes early retirement under this section, the
reduction under the first sentence of section 8339(h)
of title 5, United States Code, shall be equal to the
reduction that would otherwise apply, subject to
paragraphs (2) and (3).
(2) MODIFIED REDUCTION.—Effective with re-
spect to any benefits accruing for any month begin-
ning after any birthday of the employee occurring
after the commencement date of such employee’s an-
nuity, any annuity payable based on the service of
such employee shall be redetermined such that it
shall be equal to the amount that would then be pay-
able, assuming the circumstance described in para-
graph (3).
(3) CIRCUMSTANCE DESCRIBED.—The redeter-
mined amount under paragraph (2) as of any date
is the amount that would then be payable based on
the reduction that would then be required under the
first sentence of section 8339(h) if, at the date of
separation, such employee had attained the age at-
tained by such employee as of the birthday referred
to in paragraph (2).
(c) CONDITIONS.—
(1) IN GENERAL.—In order to be eligible to
take early retirement under this section, an em-
ployee—
(A) may not accept any voluntary separa-
tion incentive payment in connection with the
same separation; and
(B) must separate from service before the
end of the relevant election period under para-
graph (2), except as provided in paragraph (3).
(2) ELECTION PERIOD.—
(A) IN
GENERAL.—An election to take
early retirement under this section shall not be
valid unless it is made during an election period
offered by the employee’s employing agency
under this paragraph, if any.
(B) DURATION; EXPIRATION.—An election
period under this paragraph—
(i) shall be 3 months in duration;
(ii) shall end not later than 1 year
after the date of the enactment of this Act;
and
(iii) may not be repeated.
(3) EXCEPTION RELATING TO REQUIRED SEPA-
RATION DATE.—If necessary to ensure the effective
performance of the agency’s mission, in the judg-
ment of the head of the agency, the required date
of separation under paragraph (1)(B) may be de-
ferred for a period mutually agreed upon by the em-
ployee and the agency, but not later than 1 year
after the last day of the relevant election period.
(d) EMPLOYMENT BACKFILL PREVENTION.—Sub-
sections (f) and (g) of section 5 of the Federal Workforce
Restructuring Act of 1994 (Public Law 103–226; 5
U.S.C. 3101 note) shall apply with respect to any vacancy
created by the separation of any employee who has taken,
or who is due to take, early retirement under this section.
(e) ELIGIBILITY NOT LIMITED TO THOSE UNDER
CSRS.—This section applies with respect to any employee
who is eligible for—
(1) an annuity under subchapter III of chapter
83 of title 5, United States Code; or
(2) an annuity any part of which would be sub-
ject to reduction under the first sentence of section
8339(h) of such title.
(f) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary in order to finance the unfunded liability created
by this section, to the extent attributable to benefits accru-
ing during the 5-year period beginning on the date of the
enactment of this Act, either—
(1) in 5 equal annual installments, with interest
computed at the rate used in the then most recent
valuation of the Civil Service Retirement System and
with the first payment thereof due as of the end of
the fiscal year in which this Act is enacted; or
(2) in a single installment an amount equivalent
to the present value (at time of payment) of the in-
stallments referred to in paragraph (1), and with
such payment due by the end of the fiscal year next
beginning after the date of the enactment of this
Act.
SEC. 2. HEALTH AND LIFE INSURANCE BENEFITS.
(a) IN GENERAL.—In the case of an employee who
takes early retirement under section 1—
(1) such employee shall not, by reason of any
requirement under section 8905(b)(1) of title 5,
United States Code, be considered ineligible for con-
tinued enrollment as an annuitant under chapter 89
of title 5, United States Code, if the otherwise appli-
cable requirements are met; and
(2) subject to subsection (b), such employee
shall not, by reason of any requirement under sec-
tion 8706(b) of such title, be considered ineligible
for continued life insurance coverage under chapter
87 of such title, if the otherwise applicable require-
ments are met.
(b) INDIVIDUAL NOT ELIGIBLE FOR GOVERNMENT
CONTRIBUTIONS.—Life insurance coverage under sub-
section (a)(2) shall be afforded in accordance with applica-
ble provisions of title 5, United States Code, except that
any Government contributions otherwise payable with re-
spect to an annuitant shall be the responsibility of the
former employee.
SEC. 3. DEFINITIONS.
As used in this Act:
(1) AGENCY; EMPLOYEE.—The terms ‘‘agency’’
and ‘‘employee’’ have the respective meanings given
those terms by section 3 of the Federal Workforce
Restructuring Act of 1994 (Public Law 103–226; 5
U.S.C. 5597 note).
(2) VOLUNTARY SEPARATION INCENTIVE PAY-
MENT.—The term ‘‘voluntary separation incentive
payment’’ means—
(A) a voluntary separation incentive pay-
ment under section 3 of the Federal Workforce
Restructuring Act of 1994; and
(B) any similar payment as may be identi-
fied under section 4.
SEC. 4. REGULATIONS.
Any regulations necessary to carry out this Act may
be prescribed by the President or his designee.
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