I
104TH CONGRESS
1ST SESSION
H. R. 2751
To provide temporary authority for the payment of retirement and separation
incentives, to provide reemployment assistance to Federal employees who
are separated as a result of workforce reductions, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 7, 1995
Mr. WOLF (for himself, Mr. DAVIS, Mr. MORAN, Mrs. MORELLA, Mr. WYNN,
and Mr. HOYER) introduced the following bill; which was referred to the
Committee on Government Reform and Oversight
A BILL
To provide temporary authority for the payment of retire-
ment and separation incentives, to provide reemployment
assistance to Federal employees who are separated as
a result of workforce reductions, 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. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Federal Employee Separation Incentive and Reemploy-
ment Assistance Act’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—GENERAL PROVISIONS
Sec. 101. Definitions.
Sec. 102. Conditions for receiving an incentive payment under this Act.
Sec. 103. Regulations.
Sec. 104. Incentive payments for employees of the judicial branch.
Sec. 105. Funds for certain interagency groups.
TITLE II—VOLUNTARY SEPARATION INCENTIVES
Sec. 201. Incentive payments for employees eligible for immediate retirement.
Sec. 202. Payments and other incentives for employees who are not eligible for
immediate retirement.
Sec. 203. Effect of subsequent employment with the Government and employee
backfill prevention.
TITLE III—REEMPLOYMENT ASSISTANCE PROGRAMS
Sec. 301. Priority placement programs for Federal employees affected by a re-
duction in force.
Sec. 302. Non-Federal employment incentives.
Sec. 303. Job placement and counseling services.
TITLE IV—EXTENSION OF BENEFITS
Sec. 401. Life insurance.
Sec. 402. Health insurance.
TITLE I—GENERAL PROVISIONS
SEC. 101. DEFINITIONS.
Except as otherwise provided in this Act, for purposes
of this Act—
(1) the term ‘‘agency’’ means an Executive
agency within the meaning of section 105 of title 5,
United States Code, excluding the Department of
Defense, the Central Intelligence Agency, and the
General Accounting Office;
(2) the term ‘‘employee’’ means an employee
within the meaning of section 2105 of title 5, United
States Code, who—
(A) is employed by an agency;
(B) is serving under an appointment with-
out time limitation; and
(C) has been currently employed for a con-
tinuous period of at least 12 months;
such term includes an individual so employed by a
county committee established under section 8(b) of
the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590h(b)), but does not include—
(i) a reemployed annuitant under sub-
chapter III of chapter 83 or chapter 84 of title
5, United States Code, or another retirement
system for employees of the Government;
(ii) an employee having a disability on the
basis of which such employee is or would be eli-
gible for disability retirement under the applica-
ble retirement system referred to in clause (i);
or
(iii) an employee who, upon completing an
additional period of service (as referred to in
section 3(b)(2)(B)(ii) of the Federal Workforce
Restructuring Act of 1994 (Public Law 103–
226; 5 U.S.C. 5597 note)), would qualify for a
voluntary separation incentive payment under
section 3 of such Act; and
(3) the term ‘‘incentive payment under this
Act’’ means an incentive payment under section 201,
202, or 302.
SEC. 102. CONDITIONS FOR RECEIVING AN INCENTIVE PAY-
MENT UNDER THIS ACT.
An incentive payment under this Act—
(1) may not be paid except to the extent nec-
essary in order—
(A) to avoid or minimize the need for in-
voluntary separations due to a reduction in
force, reorganization, transfer of function, or
other similar action; or
(B) otherwise to reduce the size of the
Federal workforce;
(2) may not be paid based on a separation from
service occurring after September 30, 1999; and
(3) shall be paid from the appropriation or fund
available for the payment of the basic pay of the em-
ployee to whom the payment is payable.
SEC. 103. REGULATIONS.
Except as otherwise specifically provided, any regula-
tions necessary to carry out this Act may be prescribed
by the Director of the Office of Personnel Management.
SEC. 104. INCENTIVE PAYMENTS FOR EMPLOYEES OF THE
JUDICIAL BRANCH.
The Director of the Administrative Office of the
United States Courts may, by regulations consistent with
applicable provisions of this Act, make incentive payments
under this Act available with respect to individuals serving
in the judicial branch.
SEC. 105. FUNDS FOR CERTAIN INTERAGENCY GROUPS.
(a) IN GENERAL.—Section 613 of the Treasury,
Postal Service, and General Government Appropriations
Act, 1996 (Public Law 104–52), shall not apply with re-
spect to the interagency financing of any boards, commis-
sions, councils, committees, or similar groups, to the ex-
tent established (or assigned duties) to carry out—
(1) title III or any amendment made by that
title;
(2) the memorandum of the President relating
to ‘‘Career Transition Assistance for Federal Em-
ployees’’, dated September 12, 1995; or
(3) any other law, regulation, directive, or other
authority identified by the President, in writing, as
having purposes similar to those of—
(A) title III or any amendment made by
that title; or
(B) the memorandum referred to in para-
graph (2).
(b) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be considered to exempt an interagency group
from section 1346(b) of title 31, United States Code.
TITLE II—VOLUNTARY
SEPARATION INCENTIVES
SEC. 201. INCENTIVE PAYMENTS FOR EMPLOYEES ELIGI-
BLE FOR IMMEDIATE RETIREMENT.
(a) IN GENERAL.—Subject to section 102 and suc-
ceeding provisions of this section, a voluntary separation
incentive payment under this section may be paid by an
agency to any employee who, at the time of separation
from the service—
(1) is subject to subchapter III of chapter 83
or chapter 84 of title 5, United States Code; and
(2) meets the age and service requirements for
an immediate annuity thereunder.
(b) PAYMENT AMOUNT.—A payment under this sec-
tion shall be equal to the lesser of—
(1) the amount the employee would be entitled
to receive under section 5595(c) of title 5, United
States Code, if the employee were entitled to pay-
ment under such section; or
(2)(A) $25,000 if the employee separates on or
after the date of the enactment of this Act and not
later than September 30, 1997;
(B) $20,000 if the employee separates after the
deadline under subparagraph (A) and not later than
September 30, 1998; or
(C) $15,000 if the employee separates after the
deadline under subparagraph (B) and not later than
September 30, 1999.
(c) PAYMENT CONDITIONS.—A payment under this
section—
(1) shall be payable in a lump sum after the
employee’s separation;
(2) shall not be made to any employee who sep-
arates in any fiscal year after December 31st of
such year, unless the head of the agency determines
in writing that such payment would still be cost ef-
fective or otherwise further the agency’s mission;
(3) shall not be a basis for payment, and shall
not be included in the computation, of any other
type of Government benefit; and
(4) shall not be taken into account in determin-
ing the amount of any severance pay to which the
employee may be entitled under section 5595 of title
5, United States Code, based on any other separa-
tion.
(d) ADDITIONAL AGENCY CONTRIBUTION TO THE
RETIREMENT FUND.—
(1) IN
GENERAL.—In addition to any other
payments which it is required to make under sub-
chapter III of chapter 83 of title 5, United States
Code, an agency shall remit to the Office of Person-
nel Management for deposit in the Treasury of the
United States to the credit of the Civil Service Re-
tirement and Disability Fund an amount equal to 9
percent of the final basic pay of each employee of
the agency—
(A) who, on or after the date of the enact-
ment of this Act and before October 1, 1999,
retires under section 8336(d)(2) of such title;
and
(B) to whom a payment under this section
has been or is to be paid by such agency based
on that retirement.
(2) DEFINITION.—For the purpose of para-
graph (1), the term ‘‘final basic pay’’, with respect
to an employee, means the total amount of basic pay
which would be payable for a year of service by such
employee, computed using the employee’s final rate
of basic pay, and, if last serving on other than a
full-time basis, with appropriate adjustment there-
for.
SEC. 202. PAYMENTS AND OTHER INCENTIVES FOR EM-
PLOYEES WHO ARE NOT ELIGIBLE FOR IMME-
DIATE RETIREMENT.
(a) IN GENERAL.—Subject to section 102 and suc-
ceeding provisions of this section, payments and other in-
centives under this section may be provided by an agency
to any employee who, at the time of separation from the
service—
(1) is subject to subchapter III of chapter 83
or chapter 84 of title 5, United States Code; but
(2) does not meet the age and service require-
ments for an immediate annuity thereunder.
(b) TEMPORARY PERIODIC PAYMENTS.—
(1) IN GENERAL.—An agency may, in the case
of an employee who is eligible for incentives under
this section, make periodic payments to such em-
ployee under this section after such employee’s sepa-
ration from the service, subject to subsection (e).
(2) AMOUNT; 
FREQUENCY; 
TERMINATION.—
Payments under this subsection—
(A) shall be at the rate of basic pay re-
ceived immediately before separation;
(B) shall be paid at regular intervals cor-
responding to the pay periods last applicable
before separation; and
(C) shall terminate upon the earlier of—
(i) the date on which the employee be-
gins new employment; or
(ii) the end of the 6-month period be-
ginning on the date of separation.
(3) PREMIUM PAY.—For the purpose of this
subsection, ‘‘basic pay’’ includes premium pay under
section 5545(c)(1) of title 5, United States Code.
(c) CONTINUATION OF INSURANCE COVERAGE.—
(1) IN GENERAL.—An employee who is eligible
for incentives under this section may elect, for as
long as the employee remains eligible for payments
under subsection (b), to continue life insurance cov-
erage under chapter 87 of title 5, United States
Code, if insured under such chapter immediately be-
fore separation.
(2) TERMS.—Any coverage under this sub-
section shall be under the same terms and conditions
as would apply if separation had not occurred, ex-
cept that the former employee shall be responsible
for paying both the individual and the Government
contributions.
(3) 
DEDUCTIONS.—Any 
amounts 
required
under paragraph (2) shall be withheld from pay-
ments under subsection (b) and shall be deposited in
the Treasury of the United States to the credit of