HR 3841 RDS
SEC. 502. CONTINUED ELIGIBILITY FOR HEALTH INSUR-
ANCE.
(a) 
CONTINUED
ELIGIBILITY
AFTER
RETIRE-
MENT.—Section 8905 of title 5, United States Code, is
amended—
(1) in the first sentence of subsection (b) by
striking ‘‘An’’ and inserting ‘‘Subject to subsection
(g), an’’; and
(2) by adding at the end the following:
‘‘(g)(1) The Office shall waive the requirements for
continued enrollment under subsection (b) in the case of
any individual who, on or after the date of the enactment
of this subsection and before the applicable date under
paragraph (2)—
‘‘(A) is involuntarily separated from a position,
or voluntarily separated from a surplus position, in
or under an Executive agency due to a reduction in
force,
‘‘(B) based on the separation referred to in sub-
paragraph (A), retires on an immediate annuity
under subchapter III of chapter 83 or subchapter II
of chapter 84, and
‘‘(C) is enrolled in a health benefits plan under
this chapter as an employee immediately before re-
tirement.
HR 3841 RDS
‘‘(2) The applicable date under this paragraph is Oc-
tober 1, 2001, except that, for purposes of any involuntary
separation referred to in paragraph (1)(A) with respect
to which appropriate specific notice is afforded to the af-
fected employee before October 1, 2001, the applicable
date under this paragraph is February 1, 2002.
‘‘(3) For purposes of this subsection, the term ‘sur-
plus position’, with respect to an agency, means any posi-
tion determined in accordance with regulations under sec-
tion 8905a(d)(4)(C) for such agency.’’.
(b) TEMPORARY CONTINUED ELIGIBILITY AFTER
BEING
INVOLUNTARILY
SEPARATED.—Section
8905a(d)(4) of title 5, United States Code, is amended—
(1) in subparagraph (A) by striking ‘‘the De-
partment of Defense’’ and inserting ‘‘an Executive
agency’’; and
(2) by amending subparagraph (C) to read as
follows:
‘‘(C) For purposes of this paragraph, the term ‘sur-
plus position’ means a position that, as determined under
regulations prescribed by the head of the agency involved,
is identified during planning for a reduction in force as
being no longer required and is designated for elimination
during the reduction in force.’’.
HR 3841 RDS
SEC. 503. JOB PLACEMENT AND COUNSELING SERVICES.
(a) AUTHORITY FOR SERVICES.—The head of each
Executive agency may establish a program to provide job
placement and counseling services to current and former
employees.
(b) TYPES OF SERVICES AUTHORIZED.—A program
established under this section may include such services
as—
(1) career and personal counseling;
(2) training in job search skills; and
(3) job placement assistance, including assist-
ance provided through cooperative arrangements
with State and local employment service offices.
(c) ELIGIBILITY FOR SERVICES.—Services authorized
by this section may be provided to—
(1) current employees of the agency or, with the
approval of such other agency, any other agency;
and
(2) employees of the agency or, with the ap-
proval of such other agency, any other agency who
have been separated for less than 1 year, if the sepa-
ration was not a removal for cause on charges of
misconduct or delinquency.
(d) REIMBURSEMENT
FOR COSTS.—The costs of
services provided to current or former employees of an-
other agency shall be reimbursed by that agency.
HR 3841 RDS
SEC. 504. EDUCATION AND RETRAINING INCENTIVES.
(a) NON-FEDERAL EMPLOYMENT INCENTIVE PAY-
MENTS.—
(1) DEFINITIONS.—For purposes of this sub-
section—
(A) the term ‘‘eligible employee’’ means an
employee who is involuntarily separated from a
position, or voluntarily separated from a sur-
plus position, in or under an Executive agency
due to a reduction in force, except that such
term does not include an employee who, at the
time of separation, meets the age and service
requirements for an immediate annuity under
subchapter III of chapter 83 or chapter 84 of
title 5, United States Code, other than under
section 8336(d) or 8414(b) of such title;
(B) the term ‘‘non-Federal employer’’
means an employer other than the Government
of the United States or any agency or other in-
strumentality thereof;
(C) the term ‘‘Executive agency’’ has the
meaning given such term by section 105 of title
5, United States Code; and
(D) the term ‘‘surplus position’’ has the
meaning 
given 
such 
term 
by 
section
8905(d)(4)(C) of title 5, United States Code.
HR 3841 RDS
(2) AUTHORITY.—The head of an Executive
agency may pay retraining and relocation incentive
payments, in accordance with this subsection, in
order to facilitate the reemployment of eligible em-
ployees who are separated from such agency.
(3) RETRAINING INCENTIVE PAYMENT.—
(A) AGREEMENT.—The head of an Execu-
tive agency may enter into an agreement with
a non-Federal employer under which the non-
Federal employer agrees—
(i) to employ an individual referred to
in paragraph (2) for at least 12 months
for a salary which is mutually agreeable to
the employer and such individual; and
(ii) to certify to the agency head any
costs incurred by the employer for any nec-
essary training provided to such individual
in connection with the employment by such
employer.
(B) PAYMENT OF RETRAINING INCENTIVE
PAYMENT.—The agency head shall pay a re-
training incentive payment to the non-Federal
employer upon the employee’s completion of 12
months of continuous employment by that em-
HR 3841 RDS
ployer. The agency head shall prescribe the
amount of the incentive payment.
(C) PRORATION RULE.—The agency head
shall pay a prorated amount of the full retrain-
ing incentive payment to the non-Federal em-
ployer for an employee who does not remain
employed by the non-Federal employer for at
least 12 months, but only if the employee re-
mains so employed for at least 6 months.
(D) LIMITATION.—In no event may the
amount of the retraining incentive payment
paid for the training of any individual exceed
the amount certified for such individual under
subparagraph (A), subject to subsection (c).
(4) RELOCATION
INCENTIVE
PAYMENT.—The
head of an agency may pay a relocation incentive
payment to an eligible employee if it is necessary for
the employee to relocate in order to commence em-
ployment with a non-Federal employer. Subject to
subsection (e), the amount of the incentive payment
shall not exceed the amount that would be payable
for travel, transportation, and subsistence expenses
under subchapter II of chapter 57 of title 5, United
States Code, including any reimbursement author-
ized under section 5724b of such title, to a Federal