I
105TH CONGRESS
2D SESSION
H. R. 4705
To provide a temporary authority for the use of voluntary separation incen-
tives by the Department of Veterans Affairs to reduce employment levels,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 6, 1998
Mr. STUMP (for himself and Mr. EVANS) (both by request) introduced the fol-
lowing bill; which was referred to the Committee on Veterans’ Affairs,
and in addition to the Committee on Government Reform and Oversight,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of the
committee concerned
A BILL
To provide a temporary authority for the use of voluntary
separation incentives by the Department of Veterans Af-
fairs to reduce employment levels, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Department of Veter-
ans Affairs Employment Reduction Assistance Act of
1998’’.
SEC. 2. DEFINITIONS.
For the purpose of this Act:
(1) The term ‘‘employee’’ means an employee
(as defined by section 2105 of title 5, United States
Code) of the Department of Veterans Affairs who is
serving under an appointment without time limita-
tion and has been currently employed by the Depart-
ment for a continuous period of at least 3 years, but
does not include—
(A) 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;
(B) an employee having a disability on the
basis of which such employee is eligible for dis-
ability retirement under subchapter III of chap-
ter 83 or chapter 84 of title 5, United States
Code, or another retirement system for employ-
ees of the Government;
(C) an employee who is in receipt of a spe-
cific notice of involuntary separation for mis-
conduct or unacceptable performance;
(D) an employee who previously has re-
ceived any voluntary separation incentive pay-
ment by the Government under this Act or any
other authority;
(E) an employee covered by statutory re-
employment rights who is on transfer to an-
other organization; or
(F) an employee who, during the 24-month
period preceding the date of separation, has re-
ceived a recruitment or relocation bonus under
section 5753 of title 5, United States Code, or
a recruitment bonus under section 7458 of title
38, United States Code; and
(G) any employee who, during the 12-
month period preceding the date of separation,
received a retention allowance under section
5754 of title 5, United States Code, or a reten-
tion bonus under section 7458 of title 38,
United States Code.
(2) The term ‘‘Department’’ means the Depart-
ment of Veterans Affairs.
(3) The term ‘‘Secretary’’ means the Secretary
of Veterans Affairs.
SEC. 3. DEPARTMENT PLANS; APPROVAL.
(a) IN GENERAL.—The Secretary, before obligating
any resources for voluntary separation incentive payments,
shall submit to the Director of the Office of Management
and Budget a strategic plan outlining the use of such in-
centive payments and a proposed organizational chart for
the Department once such incentive payments have been
completed.
(b) CONTENTS.—The plan shall specify—
(1) the positions and functions to be reduced or
eliminated, identified by organizational unit, geo-
graphic location, occupational category and grade
level; the proposed coverage may be based on—
(A) any component of the Department of
Veterans Affairs;
(B) any occupation, occupation level or
type of position;
(C) any geographic location; or
(D) any appropriate combination of the
factors in subparagraphs (A), (B), and (C);
(2) the manner in which such reductions will
improve operating efficiency or meet actual or antici-
pated levels of budget or staffing resources;
(3) the period of time during which incentives
may be paid; and
(4) a description of how the affected compo-
nents of the Department of Veterans Affairs will op-
erate without the eliminated functions and positions.
(c) APPROVAL.—The Director of the Office of Man-
agement and Budget shall approve or disapprove each
plan submitted under subsection (a) and may make appro-
priate modifications to the plan with respect to the time
period in which voluntary separation incentives may be
paid, with respect to the number and amounts of incentive
payments, or with respect to the coverage of incentives on
the basis of the factors in subsection (b)(1).
SEC. 4. VOLUNTARY SEPARATION INCENTIVE PAYMENTS.
(a) AUTHORITY TO PROVIDE VOLUNTARY SEPARA-
TION INCENTIVE PAYMENTS.—
(1) IN GENERAL.—The Secretary may pay a
voluntary separation incentive payment to an em-
ployee only to the extent necessary to reduce or
eliminate the positions and functions identified by
the strategic plan.
(2) EMPLOYEES
WHO
MAY
RECEIVE
INCEN-
TIVES.—In order to receive a voluntary separation
incentive payment, an employee must separate from
service with the Department voluntarily (whether by
retirement or resignation) under the provisions of
this Act.
(b) AMOUNT AND TREATMENT OF PAYMENTS.—A
voluntary separation incentive payment—
(1) shall be paid in a lump sum after the em-
ployee’s separation;
(2) shall be equal to the lesser of—
(A) an amount equal to the amount the
employee would be entitled to receive under sec-
tion 5595(c) of title 5, United States Code, if
the employee were entitled to payment under
such section (without adjustment for any pre-
vious payment made under that section); or
(B) an amount determined by the Sec-
retary, not to exceed $25,000;
(3) shall not be a basis for payment, and shall
not be included in the computation, of any other
type of Government benefit;
(4) shall not be taken into account in determin-
ing the amount of severance pay to which an em-
ployee may be entitled under section 5595 of title 5,
United States Code, based on any other separation;
and
(5) shall be paid from the appropriations or
funds available for payment of the basic pay of the
employee.
SEC. 5. EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE
GOVERNMENT.
(a) REPAYMENT
UPON
SUBSEQUENT
EMPLOY-
MENT.—An individual who has received a voluntary sepa-
ration incentive payment under this Act and accepts any
employment with the Government, or who works for any
(c) DEFINITION.—For the purpose of this section,
the term ‘‘employment’’ includes—
(1) for the purposes of subsections (a) and (b),
employment of any length or under any type of ap-
pointment, but does not include employment that is
without compensation; and
(2) for the purposes of subsection (a), employ-
ment with any agency of the Government through a
personal services contract.
SEC. 6. ADDITIONAL AGENCY CONTRIBUTION TO RETIRE-
MENT FUND.
(a) ADDITIONAL CONTRIBUTION.—In addition to any
other payments which it is required to make under sub-
chapter III of chapter 83 or chapter 84 of title 5, United
States Code, the Secretary shall remit to the Office of Per-
sonnel Management for deposit in the Treasury of the
United States to the credit of the Civil Service Retirement
and Disability Fund an amount equal to 15 percent of
the final basic pay of each employee of the Department
who is covered under subchapter III of chapter 83 or
chapter 84 of title 5 to whom a voluntary separation in-
centive has been paid under this Act.
(b) DEFINITION.—For the purpose of this section,
the term ‘‘final basic pay’’, with respect to an employee,
means the total amount of basic pay that would be payable