I
104TH CONGRESS
2D SESSION
H. R. 3532
To provide a temporary authority for the use of voluntary separation incen-
tives by Federal agencies that are reducing employment levels, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 23, 1996
Mr. MORAN (for himself, Mr. HOYER, Mr. WYNN, Mr. HOLDEN, and Ms.
NORTON), all by request, introduced the following bill; which was referred
to the Committee on Government Reform and Oversight
A BILL
To provide a temporary authority for the use of voluntary
separation incentives by Federal agencies that are reduc-
ing employment levels, 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.
This Act may be cited as the ‘‘Federal Employment
Reduction Assistance Act of 1996’’.
SEC. 2. DEFINITIONS.
For the purpose of this Act—
(1) the term ‘‘agency’’ means an Executive
agency (as defined by section 105 of title 5, United
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States Code), but does not include the Department
of Defense, the Central Intelligence Agency, or the
General Accounting Office; and
(2) the term ‘‘employee’’ means an employee
(as defined by 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;
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 re-
tirement system for employees of the Gov-
ernment;
(ii) an employee having a disability on
the basis of which such employee is or
would be eligible for disability retirement
under the applicable retirement system re-
ferred to in clause (i);
(iii) an employee who is in receipt of
a specific notice of involuntary separation
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for misconduct or unacceptable perform-
ance;
(iv) an employee who, upon complet-
ing an additional period of service as re-
ferred to in section 3(b)(2)(B)(ii) of the
Federal Workforce Restructuring Act of
1994 (Public Law 103–226; 108 Stat.
111), would qualify for a voluntary separa-
tion incentive payment under section 3 of
such Act;
(v) an employee who has previously
received any voluntary separation incentive
payment by the Federal Government under
this Act or any other authority and has
not repaid such payment; or
(vi) an employee covered by statutory
reemployment rights who is on transfer to
another organization.
SEC. 3. AGENCY PLANS; APPROVAL.
(a) If the head of an agency determines that, in order
to improve the efficiency of operations or to meet antici-
pated levels of budgetary resources, the number of employ-
ees employed by the agency must be reduced, the head
of the agency may submit a plan to the Director of the
Office of Management and Budget to pay voluntary sepa-
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ration incentives under this Act to employees of the agency
who agree to separate from the agency, by retirement or
resignation. The plan shall specify the planned employ-
ment reductions and the manner in which such reductions
will improve operating efficiency or meet anticipated budg-
et levels. The plan shall include a proposed period of time
for the payment of voluntary separation incentives by the
agency, and a proposed coverage for offers of incentives
to agency employees, which may be on the basis of—
(1) any component of the agency;
(2) any occupation or levels of an occupation;
(3) any geographic location; or
(4) any appropriate combination of the factors
in paragraphs (1)–(3).
(b) The Director of the Office of Management and
Budget shall review each plan submitted to the Director
under subsection (a) and approve or disapprove such plan,
and may make appropriate modifications in the plan with
respect to the time period in which voluntary separation
incentives may be paid or with respect to the coverage of
incentives on the basis of the factors in subsection (a) (1)–
(4).
SEC. 4. VOLUNTARY SEPARATION INCENTIVE PAYMENTS.
(a) In order to receive a voluntary separation incen-
tive payment, an employee must separate from service
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with the employee’s agency voluntarily (whether by retire-
ment or resignation) during the period of time for which
the payment of incentives has been authorized for the em-
ployee under the agency plan under section 3. An employ-
ee’s agreement to separate with an incentive payment is
binding upon the employee and the agency, unless the em-
ployee and the agency mutually agree otherwise.
(b) 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
(without adjustment for any previous payment
made under such section), if the employee were
entitled to payment under such section; or
(B) if the employee separates—
(i) during fiscal year 1996 or 1997,
$25,000;
(ii) during fiscal year 1998, $20,000;
(iii) during fiscal year 1999, $15,000;
or
(iv) during fiscal year 2000, $10,000;
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(3) shall not be a basis for payment, and shall
not be included in the computation, of any other
type of Government benefit, except that this para-
graph shall not apply to unemployment compensa-
tion funded in whole or in part with Federal funds;
(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) An individual who has received a voluntary sepa-
ration incentive payment under this Act and accepts any
employment with the Government of the United States
within 5 years after the date of the separation on which
the payment is based shall be required to repay, prior to
the individual’s first day of employment, the entire
amount of the incentive payment to the agency that paid
the incentive payment.
(b)(1) If the employment under subsection (a) is with
an Executive agency (as defined by section 105 of title
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5, United States Code), the United States Postal Service,
or the Postal Rate Commission, the Director of the Office
of Personnel Management may, at the request of the head
of the agency, waive the repayment if the individual in-
volved possesses unique abilities and is the only qualified
applicant available for the position.
(2) If the employment under subsection (a) is with
an entity in the legislative branch, the head of the entity
or the appointing official may waive the repayment if the
individual involved possesses unique abilities and is the
only qualified applicant available for the position.
(3) If the employment under subsection (a) is with
the judicial branch, the Director of the Administrative Of-
fice of the United States Courts may waive the repayment
if the individual applicant available for the position.
(c) For the purpose of this section, the term ‘‘employ-
ment’’—
(1) includes employment of any length or under
any type of appointment, but does not include em-
ployment that is without compensation; and
(2) includes employment under a personal serv-
ices contract, as defined by the Director of the Of-
fice of Personnel Management.
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SEC. 6. ADDITIONAL AGENCY CONTRIBUTIONS TO THE RE-
TIREMENT FUND.
(a) In addition to any other payments which it is re-
quired to make under subchapter III of chapter 83 or
chapter 84 of title 5, United States Code, an agency shall
remit to the Office of Personnel 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 agency who is covered under subchapter III of chap-
ter 83 or chapter 84 of title 5 to whom a voluntary separa-
tion incentive has been paid under this Act.
(b) For the purpose of this section, 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 employ-
ee’s final rate of basic pay, and, if last serving on other
than a full-time basis, with appropriate adjustment there-
for.
SEC. 7. REDUCTION OF AGENCY EMPLOYMENT LEVELS.
(a) Total full-time equivalent employment in each
agency shall be reduced by one for each separation of an
employee who receives a voluntary separation incentive
payment under this Act. The reduction will be calculated
by comparing the agency’s full-time equivalent employ-
ment for the fiscal year in which the voluntary separation
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payments are made with the actual full-time equivalent
employment for the prior fiscal year.
(b) The Office of Management and Budget shall mon-
itor all agencies and take any action necessary to ensure
that the requirements of this section are met.
(c) The President shall take appropriate action to en-
sure that functions involving more than 10 full-time equiv-
alent employees are not converted to contracts by reason
of the enactment of this Act, except in cases in which a
cost comparison demonstrates such contracts would be to
the advantage of the Government.
(d) The provisions of subsections (a) and (c) of this
section may be waived upon a determination by the Presi-
dent that—
(1) the existence of a state of war or other na-
tional emergency so requires; or
(2) the existence of an extraordinary emergency
which threatens life, health, safety, property, or the
environment so requires.
SEC. 8. REPORTS.
(a) Each agency which has received approval under
section 3 of this Act to pay voluntary separation incentives
shall, for each applicable quarter of each fiscal year and
not later than 30 days after the date of such quarter, sub-
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mit to the Office of Personnel Management a report pro-
viding—
(1) the number of employees who receive vol-
untary separation incentives for each type of separa-
tion involved;
(2) the average amount of the incentives paid;
(3) the average grade or pay level of the em-
ployees who received incentives; and
(4) such other information as the Office may
require.
(b) No later than March 31st of each fiscal year, the
Office of Personnel Management shall submit to the Com-
mittee on Governmental Affairs of the Senate and the
Committee on Government Reform and Oversight of the
House of Representatives a report which, with respect to
the preceding fiscal year, shall include—
(1) for each agency which had approval to pay
voluntary separation incentives during such preced-
ing fiscal year, and on a combined basis for all such
agencies—
(A) the number of employees who received
voluntary separation incentives;
(B) the average amount of such incentives;
and