[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1686 Introduced in Senate (IS)]


104th CONGRESS
  2d Session
                                S. 1686

 To provide for early deferred annuities under chapter 83 of title 5, 
United States Code, for certain former Department of Defense employees 
   who are separated from service by reason of certain defense base 
                   closures, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 18, 1996

 Mr. Ford (for himself, Mr. Coats, Mr. Lugar, Mrs. Hutchison, and Mr. 
  McConnell) introduced the following bill; which was read twice and 
           referred to the Committee on Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
 To provide for early deferred annuities under chapter 83 of title 5, 
United States Code, for certain former Department of Defense employees 
   who are separated from service by reason of certain defense base 
                   closures, 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. EARLY DEFERRED ANNUITIES OF CERTAIN FORMER EMPLOYEES OF THE 
              DEPARTMENT OF DEFENSE.

    (a) Definitions.--For purposes of this section--
            (1) the term ``Civil Service Retirement System'' means the 
        retirement system under subchapter III of chapter 83 of title 
        5, United States Code;
            (2) the term ``defense contractor'' means any entity that--
                    (A) contracts with the Department of Defense to 
                perform a function previously performed by Department 
                of Defense employees;
                    (B) performs that function at the same installation 
                at which such function was previously performed by 
                Department of Defense employees or in the vicinity of 
                that installation; and
                    (C) is the employer of one or more transferred 
                employees;
            (3) the term ``early deferred retirement age'' means the 
        first age at which a transferred employee would have been 
        eligible for immediate retirement under subsection (a) or (b) 
        of section 8336 of title 5, United States Code, if such 
        transferred employee had remained an employee within the 
        meaning of section 8331(1) of such title continuously until 
        attaining such age;
            (4) the term ``severance pay'' means severance pay payable 
        under section 5595 of title 5, United States Code;
            (5) the term ``separation pay'' means separation pay 
        payable under section 5597 of title 5, United States Code; and
            (6) the term ``transferred employee'' means a former 
        employee of the Department of Defense (other than a temporary 
        employee) who--
                    (A) while employed by the Department of Defense at 
                a military installation to be closed or realigned 
                pursuant to recommendations of the Defense Base Closure 
                and Realignment Commission that were approved by the 
                President in 1995 under section 2903(e) of the Defense 
                Base Closure and Realignment Act of 1990 (title XXIX of 
                Public Law 101-510; 10 U.S.C. 2687 note) and while 
                covered under the Civil Service Retirement System, was 
                separated from Federal service in a reduction-in-force 
                resulting from conversion from performance of a 
                function by Department of Defense employees at that 
                military installation to performance of that function 
                by a defense contractor at that installation or in the 
                vicinity of that installation;
                    (B) is employed by the defense contractor within 60 
                days following such separation to perform substantially 
                the same function performed before the separation;
                    (C) remains employed by the defense contractor or a 
                successor defense contractor, or subcontractor of a 
                defense contractor until attaining early deferred 
                retirement age or is involuntarily separated from 
                employment by the defense contractor before attaining 
                such age for reasons other than misconduct;
                    (D) at the time separated from Federal service, was 
                not eligible for an immediate annuity under the Civil 
                Service Retirement System;
                    (E) does not withdraw retirement contributions 
                under section 8342 of title 5, United States Code; and
                    (F)(i) has not received separation pay or severance 
                pay due to a separation described in subparagraph (A); 
                or
                    (ii) has repaid the full amount of such pay with 
                interest (as determined by the Office of Personnel 
                Management) to the Department of Defense before 
                attaining early deferred retirement age.
    (b) Retirement Benefits of Transferred Employees.--Notwithstanding 
the age requirement under section 8338(a) of title 5, United States 
Code, payment of a deferred annuity for which a transferred employee is 
eligible under that section shall commence on the first day of the 
first month that begins after the date on which the transferred 
employee attains early deferred retirement age.
    (c) Computation of Average Pay.--(1)(A) This paragraph applies to 
the computation of the annuity of a transferred employee who retires 
under this section who immediately before separation from Federal 
service as described under subsection (a)(6)(A) was employed in a 
position classified under the General Schedule.
    (B) Subject to subparagraph (C), in the computation of an annuity 
referred to under subparagraph (A) for a transferred employee, the 
average pay of the transferred employee under section 8331(4) of title 
5, United States Code, shall be adjusted at the same time and by the 
same percentage that rates of basic pay are increased under section 
5303 of title 5, United States Code, during the period beginning on the 
date on which the transferred employee separates from Federal service 
as described under subsection (a)(6)(A) and ending on the date on which 
the transferred employee attains early deferred retirement age.
    (C) Average pay as adjusted by this paragraph may not exceed the 
limitation on maximum pay, final pay, or average pay (as applicable) 
under section 8340(g)(1) (A) or (B) of title 5, United States Code.
    (2)(A) This paragraph applies to the compensation of an annuity of 
a transferred employee who retires in accordance with this section who 
immediately before separation from Federal service as described under 
subsection (a)(6)(A) was a prevailing rate employee as defined under 
section 5342(2) of title 5, United States Code.
    (B) In the computation of an annuity referred to under subparagraph 
(A) for a transferred employee, average pay under section 8331(4) of 
title 5, United States Code, shall be adjusted at the same time and by 
the same percentage that pay rates for positions that are in the same 
area as, and are comparable to, the last position the transferred 
employee held as a prevailing rate employee, are increased under 
section 5343(a) of such title during the period beginning on the date 
on which the transferred employee separates from Federal service as 
described under subsection (a)(6)(A) and ending on the date on which 
the transferred employee attains early deferred retirement age.
    (d) Service for a Defense Contractor Relating to Creditable Service 
and Health Insurance.--(1) Service performed by a transferred employee 
for a defense contractor after separation from Federal service as 
described under subsection (a)(6)(A) shall not be treated as creditable 
service for purposes of computing the amount of an early deferred 
annuity in accordance with this section.
    (2) Nothing in this section shall be construed to require employee 
or agency contributions under chapter 89 of title 5, United States 
Code, for any period of service performed by a transferred employee for 
a defense contractor after separation from Federal service as described 
under subsection (a)(6)(A).
    (e) Receipt of Benefits While Employed by a Defense Contractor.--A 
transferred employee may commence receipt of an early deferred annuity 
in accordance with this section while continuing to work for a defense 
contractor.
    (f) Lump-Sum Credit Payment.--If a transferred employee dies before 
attaining early deferred retirement age, such employee shall be treated 
as a former employee who dies not retired for purposes of payment of 
the lump-sum credit under section 8342(d) of title 5, United States 
Code.
    (g) Implementing Regulations.--The Office of Personnel Management 
shall promulgate regulations to carry out the provisions of this 
section.
    (h) Effective Date.--This section shall take effect on August 1, 
1996, and shall apply to transferred employees separated from Federal 
service on or after that date.
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