Title: Federal Employee Retirement Accountability Act
Policy area: Government Operations and Politics

Summary:
Federal Employee Retirement Accountability Act
This bill reduces retirement benefits for a federal employee who is convicted of a criminal offense related to national security that results in removal from the civil service.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6388 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 6388

 To amend title 5, United States Code, to provide for the reduction of 
the annuity for any Federal employee who is convicted of a felony that 
resulted in, or would have resulted in, removal from the civil service, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 16, 2018

    Mrs. Brooks of Indiana introduced the following bill; which was 
      referred to the Committee on Oversight and Government Reform

_______________________________________________________________________

                                 A BILL


 
 To amend title 5, United States Code, to provide for the reduction of 
the annuity for any Federal employee who is convicted of a felony that 
resulted in, or would have resulted in, removal from the civil service, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Employee Retirement 
Accountability Act''.

SEC. 2. REDUCTION OF ANNUITY OF EMPLOYEE CONVICTED OF A FELONY FOR 
              WHICH AN ADVERSE ACTION IS OR WOULD HAVE BEEN TAKEN.

    (a) Reduction of Annuity of Employee Convicted of a Felony for 
Which an Adverse Action Is Taken.--
            (1) In general.--Subchapter II of chapter 83 of title 5, 
        United States Code, is amended by adding at the end the 
        following:
``Sec. 8323. Reduction of benefits of employees convicted of certain 
              crimes
    ``(a) Reduction of Annuity.--
            ``(1) In general.--The felonious service of a covered 
        individual shall not be taken into account for purposes of 
        calculating an annuity with respect to such individual under 
        subchapter III of this chapter or chapter 84 if--
                    ``(A) the covered individual is finally convicted 
                of a felony; and
                    ``(B) the head of the agency at which the 
                individual was employed determines that the conviction 
                was based on the acts or omissions of the covered 
                individual that--
                            ``(i) were taken or not taken in the 
                        performance of the covered individual's 
                        official duties at the agency; and
                            ``(ii) are sufficient to support a removal 
                        action under section 7513, 7543, or any other 
                        provision of law against the covered 
                        individual.
            ``(2) Procedures.--A covered individual against whom a 
        determination is made under paragraph (1) shall be afforded--
                    ``(A) notice of the determination 15 business days 
                in advance of a final order under paragraph (3); and
                    ``(B) an opportunity to respond to the 
                determination by not later than ten business days 
                following receipt of such notice.
            ``(3) Final order.--The head of the agency shall issue a 
        final order to carry out paragraph (1)--
                    ``(A) in the case of a covered individual who 
                responds under paragraph (2)(B), five business days 
                after receiving the response from the covered 
                individual, to the maximum extent practicable; or
                    ``(B) in the case of a covered individual who does 
                not so respond, 15 business days after the date the 
                head of the agency provided notice to the individual 
                under paragraph (2)(A), to the maximum extent 
                practicable.
            ``(4) Appeal.--Any covered individual with respect to whom 
        an annuity is to be reduced under this subsection may appeal 
        the final order under paragraph (3) to the Merit Systems 
        Protection Board pursuant to such regulations as the Board may 
        prescribe for purposes of this subsection. An appeal may not be 
        made under this paragraph later than that date that is 10 
        business days after the date an order is issued under paragraph 
        (3).
    ``(b) Administrative Requirements.--
            ``(1) In general.--Not later than 30 business days after 
        the date that the head of an agency issues a final order under 
        subsection (a) or a final decision of the Merit Systems 
        Protection Board is rendered (as the case may be) with respect 
        to an individual, the applicable employing agency shall amend 
        the covered individual's retirement records to reflect the 
        period of service that is no longer creditable by operation of 
        this section and transmit the amended records to the Director 
        of the Office of Personnel Management.
            ``(2) Annuitants.--With respect to any covered individual 
        who is an annuitant on the date a final order is so issued, the 
        Director of the Office of Personnel Management shall, not later 
        than 30 business days after the receipt of amended retirement 
        records from an agency under paragraph (1), recalculate such 
        annuity.
    ``(c) Lump-Sum Annuity Credit.--Any covered individual with respect 
to whom an annuity is reduced under subsection (a) shall be entitled to 
be paid so much of such individual's lump-sum credit as is attributable 
to the period of felonious service.
    ``(d) Spouse Exception.--The spouse of any covered individual 
referred to in subsection (a) shall be eligible for spousal annuity 
benefits that, but for subsection (a), would otherwise have been 
payable if the Attorney General of the United States or the attorney 
general of any state, territory, or the District of Columbia determines 
that the spouse fully cooperated with authorities in the conduct of a 
criminal investigation and subsequent prosecution of the individual 
which resulted in such benefit reduction.
    ``(e) Application.--Nothing in this section shall be construed to 
effect or otherwise mitigate the application of any other section in 
this subchapter.
    ``(f) Definitions.--In this section--
            ``(1) the term `covered individual' means--
                    ``(A) an individual who was an employee (as that 
                term is defined in section 2105) removed from a 
                position in the civil service for performance or 
                misconduct under section 7513, 7543, or any other 
                provision of law; or
                    ``(B) an individual who--
                            ``(i) was an employee (as that term is 
                        defined in section 2105) subject to a removal 
                        action for performance or misconduct under 
                        section 7513, 7543, or any other provision of 
                        law; and
                            ``(ii) who leaves employment at the agency 
                        prior to the issuance of a final decision with 
                        respect to such action;
            ``(2) the term `felonious service' means, with respect to a 
        covered individual, the period of service--
                    ``(A) beginning on the date that the head of the 
                agency determines that the individual commenced 
                engaging in the acts or omissions that gave rise to the 
                removal action or proposed removal action; and
                    ``(B) ending on the date that is the earlier of--
                            ``(i) the date that the individual is 
                        removed from or leaves a position at the 
                        agency; or
                            ``(ii) the date that the individual ceases 
                        engaging in the acts or omissions that gave 
                        rise to the removal action or proposed removal 
                        action;
            ``(3) the term `finally convicted' and `final conviction' 
        refers to a conviction of a felony--
                    ``(A) that has not been appealed and is no longer 
                appealable because the time for taking an appeal has 
                expired; or
                    ``(B) that has been appealed and the appeals 
                process for which is completed;
            ``(4) the term `lump-sum credit' has the meaning given that 
        term in section 8331(8) or 8401(19) (as the case may be); and
            ``(5) the term `service' has the meaning given that term 
        under section 8331(12) or 8401(26) (as the case may be).''.
            (2) Clerical amendment.--The table of sections for 
        Subchapter II of chapter 83 of title 5, United States Code, is 
        amended by adding after the item relating to section 8322 the 
        following new item:

``8323. Reduction of benefits of employees convicted of certain 
                            crimes.''.
    (b) Application.--Section 8323 of title 5, United States Code, as 
added by subsection (a), shall apply to acts or omissions described in 
subsection (a)(1)(B) of such section occurring after the date of the 
enactment of this Act.
    (c) Regulations.--The Office of Personnel Management may prescribe 
regulations to carry out the purposes of this section and the 
amendments made by this Act.
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