I
104TH CONGRESS
2D SESSION
H. R. 3279
To provide for early deferred annuities under chapter 83 of title 5, United
States Code, for certain former Department of Defense employees who
are separated from service by reason of certain defense base closures,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 18, 1996
Mr. WARD (for himself, Mr. HAMILTON, Mr. FAZIO of California, Mr. MAT-
SUI, Mr. JACOBS, Mr. MYERS of Indiana, Mr. TEJEDA, Mr. LEWIS of
Kentucky, and Mr. SHUSTER) introduced the following bill; which was re-
ferred to the Committee on Government Reform and Oversight
A BILL
To provide for early deferred annuities under chapter 83
of title 5, United States Code, for certain former Depart-
ment of Defense employees who are separated from serv-
ice by reason of certain defense base closures, and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. EARLY DEFERRED ANNUITIES OF CERTAIN
FORMER EMPLOYEES OF THE DEPARTMENT
OF DEFENSE.
(a) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘Civil Service Retirement System’’
means the retirement system under subchapter III
of chapter 83 of title 5, United States Code;
(2) the term ‘‘defense contractor’’ means any
entity that—
(A) contracts with the Department of De-
fense to perform a function previously per-
formed by Department of Defense employees;
and
(B) performs that function at the installa-
tion at which such function was previously per-
formed by Department of Defense employees or
in the vicinity of such installation;
(3) the term ‘‘early deferred retirement age’’, as
used with respect to a transferred employee, means
the earliest age at which such transferred employee
would have been eligible for immediate retirement
under subsection (a) or (b) of section 8336 of title
5, United States Code, if such transferred employee
had remained continuously employed, until attaining
such age, in the position held by such employee
when separated from Federal service as described in
paragraph (6)(A);
(4) the term ‘‘severance pay’’ means severance
pay under section 5595 of title 5, United States
Code;
(5) the term ‘‘separation pay’’ means separa-
tion pay under section 5597 of title 5, United States
Code; and
(6) the term ‘‘transferred employee’’ means a
former employee of the Department of Defense
(other than a former temporary employee) who—
(A) while employed by the Department of
Defense at a military installation to be closed or
realigned pursuant to recommendations of the
Defense Base Closure and Realignment Com-
mission that were approved by the President in
1995 under section 2903(e) of the Defense
Base Closure and Realignment Act of 1990
(Public Law 101–510; 10 U.S.C. 2687 note)
and while covered under the Civil Service Re-
tirement System, was separated from Federal
service in a reduction-in-force resulting from
conversion from performance of a function by
Department of Defense employees at such mili-
tary installation to performance of such func-
tion by a defense contractor at such installation
or in the vicinity of such installation;
(B) has completed 5 years of civilian serv-
ice creditable under section 8332 of title 5,
United States Code, by the date of separation
from Federal service as described in subpara-
graph (A);
(C) is employed by the defense contractor
within 60 days following such separation to per-
form substantially the same function performed
before the separation;
(D)(i) remains employed by the defense
contractor or a successor defense contractor, or
a subcontractor of either, until attaining early
deferred retirement age; or
(ii) is involuntarily separated from employ-
ment referred to in clause (i) before attaining
early deferred retirement age for reasons other
than misconduct; and
(E) at the time separated from Federal
service as described in subparagraph (A), was
not eligible for an immediate annuity under the
Civil Service Retirement System.
(b) RETIREMENT BENEFITS OF TRANSFERRED EM-
PLOYEES.—For purposes of determining eligibility for a
deferred annuity under section 8338(a) of title 5, United
States Code, a transferred employee shall be deemed to
have satisfied the age requirement under such section
8338(a) upon attaining early deferred retirement age.
(c) COMPUTATION OF AVERAGE PAY.—(1)(A) This
paragraph applies to the computation of the annuity of
a transferred employee who retires under this section who
immediately before separation from Federal service as de-
scribed in subsection (a)(6)(A) was employed in a position
classified under the General Schedule.
(B) In the computation of an annuity referred to in
subparagraph (A) for a transferred employee, the average
pay of the transferred employee under section 8331(4) of
title 5, United States Code, shall be adjusted at the same
time and by the same percentage that rates of basic pay
are increased under section 5303 of title 5, United States
Code, during the period beginning on the date on which
the transferred employee separates from Federal service
as described in subsection (a)(6)(A) and ending on the
date on which the transferred employee attains early de-
ferred retirement age.
(2)(A) This paragraph applies to the computation of
the annuity of a transferred employee who retires under
this section who immediately before separation from Fed-
eral service as described in subsection (a)(6)(A) was a pre-
vailing rate employee as defined under section 5342(a)(2)
of title 5, United States Code.
ferred annuity under this section unless the employee re-
pays the full amount of such pay (with interest as deter-
mined by the Office of Personnel Management) to the De-
partment of Defense before attaining early deferred retire-
ment age.
(f) RECEIPT OF BENEFITS WHILE EMPLOYED BY A
DEFENSE CONTRACTOR.—A transferred employee may
commence receipt of an early deferred annuity in accord-
ance with this section while continuing to work for a de-
fense contractor.
(g) LUMP-SUM CREDIT PAYMENT.—If a transferred
employee dies before attaining early deferred retirement
age, such employee shall, for purposes of section 8342 of
title 5, United States Code, be treated as a former em-
ployee not retired who dies, as described in subsection (d)
of such section. For purposes of the preceding sentence,
the term ‘‘transferred employee’’ shall have the meaning
such term would have under subsection (a)(6) if subpara-
graph (D) thereof were disregarded.
(h) IMPLEMENTING REGULATIONS.—The Office of
Personnel Management shall promulgate regulations to
carry out the provisions of this section.
(i) EFFECTIVE DATE.—This section shall take effect
on August 1, 1996, and shall apply to any transferred em-
ployee whose date of separation from Federal service, as
described in subsection (a)(6)(A), occurs on or after that
date.
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