[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 797 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 797

 To amend title 5, United States Code, to establish an optional early 
  retirement program for Federal Government employees, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               April 20 (legislative day, April 19), 1993

   Mr. Roth introduced the following bill; which was read twice and 
           referred to the Committee on Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend title 5, United States Code, to establish an optional early 
  retirement program for Federal Government employees, 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 Employees' Optional Early 
Retirement Act''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to reduce Federal Government civilian payrolls in an 
        orderly and voluntary manner;
            (2) to accommodate the personal plans of certain Federal 
        Government employees who desire to retire but have not 
        satisfied the applicable age and service requirements;
            (3) to allow current Federal Government employees to retire 
        early in order to avoid possible adverse effects of Federal 
        budgetary conditions; and
            (4) to provide increased job protection and career 
        opportunities for Federal Government employees, especially 
        women, members of minority groups, and young workers.

SEC. 3. TEMPORARY VOLUNTARY EARLY RETIREMENT AUTHORITY.

    Section 8336 of title 5, United States Code, is amended--
            (1) by redesignating subsection (n) as subsection (o); and
            (2) by inserting after subsection (m) the following new 
        subsection (n):
    ``(n)(1) Except as provided in paragraph (2) of this subsection, an 
employee who--
            ``(A) during the 60-day period beginning 30 days after the 
        beginning of the fiscal year next following the date of the 
        enactment of the Federal Employees' Optional Early Retirement 
        Act, is separated from the service, except by removal for cause 
        on charges of misconduct or delinquency--
                    ``(i) after completing 25 years of service;
                    ``(ii) after becoming 50 years of age and 
                completing 20 years of service;
                    ``(iii) after becoming 55 years of age and 
                completing 15 years of service; or
                    ``(iv) after becoming 57 years of age and 
                completing 5 years of service; and
            ``(B) is not entitled to an annuity under section 8337 of 
        this title or subsection (a), (b), (d), (f), (h), or (j) of 
        this section,
is entitled to an annuity.
    ``(2) Paragraph (1) of this subsection shall not apply to a 
bankruptcy judge, a judge of the United States Court of Military 
Appeals, or any law enforcement officer, firefighter, or air traffic 
controller who is not in a supervisory or administrative position, as 
determined by the Director of the Office of Personnel Management.''.

SEC. 4. COMPUTATION OF ANNUITY.

    The first sentence of section 8339(h) of title 5, United States 
Code, is amended by striking out ``or (j)'' and inserting in lieu 
thereof ``, (j), or (n)''.

SEC. 5. APPLICATION OF AMENDMENTS TO OTHER FEDERAL GOVERNMENT 
              RETIREMENT SYSTEMS.

    The President shall extend the application of the amendments made 
by sections 3 and 4--
            (1) to participants in the Central Intelligence Agency 
        Retirement and Disability System and their survivors under 
        section 292 of the Central Intelligence Agency Retirement Act 
        of 1964 for Certain Employees (50 U.S.C. 403 note);
            (2) to participants in the Foreign Service Retirement and 
        Disability System and their survivors under section 827 of the 
        Foreign Service Act of 1980 (94 Stat. 2124; 22 U.S.C. 4067);
            (3) to each employee of the Federal Government who is 
        subject to chapter 84 of title 5, United States Code, by reason 
        of an election under section 301 of the Federal Employees' 
        Retirement System Act of 1986 (Public Law 99-335; 100 Stat. 
        599), except that section 302 of such Act (100 Stat. 601) shall 
        apply in the case of such employee; and
            (4) if determined appropriate by the President, in like 
        manner to employees of the Executive branch who are 
        participants in any other Federal Government retirement system 
        and their survivors.

SEC. 6. EXEMPTION FOR ESSENTIAL OCCUPATIONAL CATEGORIES.

    (a) In General.--An officer or employee in the Executive branch 
retiring under section 8336(n) of title 5, United States Code (as added 
by section 3 of this Act), or pursuant to section 5 of this Act is not 
entitled to an annuity under or pursuant to such section if, 
immediately before the retirement, the officer or employee--
            (1) is serving in a position in an exempt occupational 
        category,
            (2) is working on an exempt project, or
            (3) is serving in a position in an exempt location,
designated under subsection (b).
    (b) Exemption Authority.--The President or his designee may, for 
the purposes of this section, designate--
            (1) as an exempt occupational category any occupational 
        category in an Executive agency that is essential for the 
        continuous performance of a critical mission of the Executive 
        agency;
            (2) as an exempt project any project carried out by an 
        Executive agency that is an essential project in the interests 
        of the Federal Government; and
            (3) as an exempt location any location at which a 
        responsibility of an Executive agency is carried out if, 
        because of the undesirability of such location, it is difficult 
        to fill employee vacancies at the location by voluntary 
        transfers of other employees.
    (c) Limitations on Authority.--(1) A designation under subsection 
(b) shall be effective for the purposes of this section only if it is 
made in writing not later than the day before the optional early 
retirement period commences.
    (2)(A) The authority provided in subsection (b) may not be 
exercised in a manner that precludes more than 25 percent of the 
eligible officers and employees in an Executive agency from being 
entitled to an annuity under section 8336(n) of title 5, United States 
Code, or pursuant to section 5 of this Act.
    (B) For the purpose of subparagraph (A), the term ``eligible 
officers and employees'' means the officers and employees of the 
Federal Government who, without regard to subsection (a), would be 
entitled, upon separation from Federal Government employment, to an 
annuity under section 8336(n) of title 5, United States Code, or 
pursuant to section 5 of this Act.

SEC. 7. HOLDOVER OF ESSENTIAL EMPLOYEES.

    (a) In General.--(1) An officer or employee in the Executive branch 
is not entitled to an annuity under section 8336(n) of title 5, United 
States Code (as added by section 3(2) of this Act), or pursuant to 
section 5 of this Act if, immediately before separating from Federal 
Government employment, the officer or employee is serving as an 
essential employee designated under subsection (b) of this section.
    (2) An officer or employee of an Executive agency who--
            (A) separates from Federal Government employment 
        immediately upon the termination of a designation under 
        subsection (b); and
            (B) during the optional early retirement period, has given 
        such Executive agency appropriate notice of his intention to 
        separate from Federal Government employment under section 
        8336(n) of title 5, United States Code, or pursuant to section 
        5 of this Act, as the case may be,
shall be entitled to an annuity under or pursuant to such section 
notwithstanding that the separation becomes effective after the 
expiration of such period.
    (b) Holdover Authority.--The head of an Executive agency may 
designate, for the purposes of this section, any officer or employee in 
such Executive agency as essential for--
            (1) the continuous progress of a critical project under the 
        responsibility of the Executive agency; or
            (2) the continuous performance of a critical responsibility 
        assigned to such officer or employee by the Executive agency.
    (c) Limitation on Authority.--A designation under subsection (b) 
may not be effective for more than 6 months.

SEC. 8. LIMITATION ON REPLACEMENT OF RETIREES.

    (a) In General.--Notwithstanding any other provision of law, except 
as provided in subsection (b), (c), (d), or (e), an appointment may not 
be made to a position of civilian employment in the Executive branch on 
any day during the hiring limitation period, unless the full-time 
employee equivalent of the total number of civilian employees in the 
Executive branch after such appointment on such day does not exceed the 
maximum authorized full-time employee equivalent number determined for 
such day, as provided in subsection (g)(2).
    (b) Waiver.--(1) The President or his designee may waive the 
application of subsection (a) in the case of a position or a category 
of positions in the Executive branch if the President (or his designee) 
determines that--
            (A) the position or positions are essential for the 
        performance of an Executive responsibility; or
            (B) the estimated aggregate cost of such position or 
        positions during the hiring limitation period does not exceed 
        the estimated aggregate amount of user fees that will be 
        collected by the Federal Government for services performed 
        under a Federal Government program or programs during such 
        period by an employee in such position or employees in such 
        positions.
    (2) The President (or his designee) may not exercise the waiver 
authority provided in paragraph (1) in a manner that results in 
increased pay and other personnel costs in any Executive agency that 
exceed the amount of the cost savings which result from the 
implementation of this Act and the amendments made by this Act in the 
case of such Executive agency.
    (c) Inapplicability of Limitation to Certain Reinstatements.--
Subsection (a) does not apply in the case of an individual who is 
reinstated to a position of employment the individual formerly held in 
the Executive branch by order of a court of the United States having 
jurisdiction to issue such order or by reason of an action of the Merit 
Systems Protection Board or the Special Counsel of the Merit Systems 
Protection Board authorized by law.
    (d) Inapplicability of Limitation to Certain Transfers.--Subsection 
(a) does not prohibit the transfer of employees in the Executive branch 
for the purpose of filling a vacancy in an Executive branch position.
    (e) Inapplicability of Limitation During a Period of War or 
National Emergency.--Subsection (a) shall not apply during a period of 
war declared by the Congress or a period of national emergency declared 
by the Congress or the President.
    (f) Limitation on Procurement of Personal Services.--The President 
shall take appropriate action to ensure that there is no increase in 
the procurement of personal services by contract by reason of the 
enactment of this section except in cases in which it is to the 
financial advantage of the Federal Government to increase the 
procurement of such services.
    (g) Definitions.--For the purposes of this section--
            (1) the term ``employee'' has the same meaning as provided 
        in section 2105 of title 5, United States Code;
            (2) the term ``maximum authorized full-time employee 
        equivalent number'' means the excess of--
                    (A) the full-time employee equivalent number that 
                describes the total number of civilian employees 
                employed in positions in the Executive branch on the 
                day before the optional early retirement period 
                commences, over
                    (B) the full-time employee equivalent number that 
                describes the total number of--
                            (i) such employees who, on or before the 
                        day for which the maximum authorized number is 
                        computed, have retired during such period 
                        entitled to an annuity under subchapter III of 
                        chapter 83 of title 5, United States Code, or 
                        any other Federal Government retirement system 
                        for officers and employees of the Federal 
                        Government; and
                            (ii) such employees who, on or before such 
                        day, have retired after such period entitled to 
                        such an annuity as provided in section 7(a)(2) 
                        of this Act; and
            (3) the term ``hiring limitation period'' means the period 
        beginning on the date which occurs 30 days after the beginning 
        of the fiscal year next following the date of the enactment of 
        this Act and ending at the end of the fifth fiscal year which 
        begins on or after the first day of such period.

SEC. 9. REGULATIONS.

    The President or his designee may prescribe regulations to carry 
out sections 6, 7, and 8.

SEC. 10. LIMITATION ON USE OF SAVINGS.

    (a) In General.--(1) Beginning in the second quarter of the fiscal 
year after the date of the enactment of this Act, the Director of the 
Office of Management and Budget shall determine the amount equal to the 
savings resulting from the implementation of the provisions of this Act 
for each agency and shall notify the President. The Director shall make 
such determinations and notifications in each applicable quarter of 
such fiscal year.
    (2) At the beginning of each applicable quarter of the fiscal year 
next following the date of the enactment of this Act, the President 
shall cancel an amount of the budget authority of each agency equal to 
the amount determined by the Director of the Office of Management and 
Budget under paragraph (1).
    (3) The total amount of budget authority and outlays saved under 
the provisions of this section shall be credited against any amount of 
pay and other personnel costs required to be sequestered in such fiscal 
year under the Balanced Budget and Emergency Deficit Control Act of 
1985 (Public Law 99-177), as amended.
    (b) Audits.--The Comptroller General of the United States may audit 
the records of any agency of the Federal Government to determine the 
level of compliance with the requirements of subsection (a).
    (c) Notice of Noncompliance.--The Comptroller General of the United 
States shall notify Congress, in writing, of each noncompliance with 
the requirements of subsection (a).

SEC. 11. PROGRAM REPORT.

    (a) In General.--No later than one year after the first day of the 
optional early retirement period, the Director of the Office of 
Personnel Management shall transmit to Congress a report containing an 
evaluation of the optional early retirement program and the limitation 
on replacement of retirees provided in this Act.
    (b) Contents of Report.--The report under subsection (a) shall 
include the following matters:
            (1) The number of employees who have retired under the 
        optional early retirement program, stated by employing agency, 
        by age group of the retirees, and by grade or other position 
        classification of the retirees.
            (2) The number and description of the exempt occupational 
        categories, projects, and locations designated under section 
        6(b) and the reasons such categories, projects, and locations 
        have been so designated.
            (3) The number of employees who have been designated as 
        essential employees under section 7(b) and the reasons such 
        employees have been so designated.
            (4) The number of employees appointed under the waiver 
        authority provided in section 8(b) (stated as a full-time 
        employee equivalent number) and the reasons for the 
        appointments.
            (5) The amount of the savings in pay and other personnel 
        costs that have resulted, before the date of the report, from 
        the implementation of this Act and the amendments made by this 
        Act.
    (c) Administrative Provision.--The Director of the Office of 
Personnel Management may obtain from any agency of the Federal 
Government such information as the Director determines necessary to 
prepare the report required by subsection (a).

SEC. 12. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``Executive agency'' has the same meaning 
        provided in section 105 of title 5, United States Code; and
            (2) the term ``optional early retirement period'' means the 
        60-day period provided in section 8336(n) of title 5, United 
        States Code, or pursuant to section 5 of this Act.

SEC. 13. REVISIONS IN BUDGET ALLOCATIONS AND AGGREGATES.

    (a) Reports by Committees on the Budget.--Upon the enactment of 
this Act, the Committees on the Budget of the Senate and the House of 
Representatives shall report to their respective Houses revised 
allocations, pursuant to section 302(a) of the Congressional Budget Act 
of 1974, and revised budget aggregates to carry out this Act and the 
amendments made by this Act.
    (b) Reports by Other Committees of Congress.--Upon the reporting of 
revised allocations under subsection (a), the appropriate committees of 
the Senate and the House of Representatives shall report revised 
allocations, pursuant to section 302(b) of the Congressional Budget Act 
of 1974, to carry out this Act and the amendments made by this Act.
    (c) Treatment of Reported Revisions.--Revised allocations and 
budget aggregates reported under this section shall be considered for 
the purposes of the Congressional Budget Act of 1974 as aggregates 
contained in the latest concurrent resolution on the budget.

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