[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 940 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 940

 To provide a temporary authority for the use of voluntary separation 
 incentives by the Department of Veterans Affairs to reduce employment 
           levels, restructure staff, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 3, 1999

Mr. Specter (by request) introduced the following bill; which was read 
        twice and referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
 To provide a temporary authority for the use of voluntary separation 
 incentives by the Department of Veterans Affairs to reduce employment 
           levels, restructure staff, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, that except as 
otherwise expressly provided, whenever in this Act an amendment is 
expressed in terms of an amendment to a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of title 38, United States Code.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of Veterans Affairs 
Employment Reduction Assistance Act of 1999''.

SEC. 2. DEFINITIONS.

    For the purpose of this Act:
            (1) ``Department'' means the Department of Veterans 
        Affairs.
            (2) ``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 limitation, and has been currently employed by such 
        Department for a continuous period of at least 3 years, but 
        does not include--
                    (A) a reemployed annuitant under subchapter III of 
                chapter 83, or chapter 84 of title 5, United States 
                Code, or another retirement system for employees of the 
                Federal Government;
                    (B) an employee having a disability on the basis of 
                which such employee is eligible for disability 
                retirement under subchapter III of chapter 83 or 
                chapter 84 of title 5, United States Code, or another 
                retirement system for employees of the Federal 
                Government;
                    (C) an employee who is in receipt of a specific 
                notice of involuntary separation for misconduct or 
                unacceptable performance;
                    (D) an employee who previously has received any 
                voluntary separation incentive payment by the Federal 
                Government under this Act or any other authority;
                    (E) an employee covered by statutory reemployment 
                rights who is on transfer to another organization; or
                    (F) any employee who, during the twenty-four month 
                period preceding the date of separation, has received 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;
                    (G) any employee who, during the twelve-month 
                period preceding the date of separation, received a 
                retention allowance under section 5754 of title 5, 
                United States Code, or a retention bonus under section 
                7458 of title 38, United States Code.
            (3) ``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 incentive 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, geographic 
        location, occupational category and grade level; the proposed 
        coverage may be based on--
                    (A) any component of the Department;
                    (B) any occupation, level or type of position;
                    (C) any geographic location;
                    (D) other nonpersonal factors; or
                    (E) any appropriate combination of the factors in 
                paragraphs (A), (B), (C), and (D);
            (2) the manner in which such reductions will improve 
        operating efficiency or meet actual or anticipated 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 component(s) of the 
        Department will operate without the eliminated functions and 
        positions.
    (c) Approval.--The Director of the Office of Management and Budget 
shall approve or disapprove each plan submitted under subsection (a), 
and may make appropriate 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 Separation Incentive Payments.--
            (1) In general.--The Secretary may pay a voluntary 
        separation incentive payment to an employee only to the extent 
        necessary to reduce or eliminate the positions and functions 
        identified by the strategic plan;
            (2) Employees who may receive incentives.--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 employee'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 section 5595(c) of 
                title 5, United States Code, if the employee were 
                entitled to payment under such section (without 
                adjustment for any previous payment made under that 
                section); or
                    (B) an amount determined by the Secretary, 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 determining the 
        amount of severance pay to which an employee 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 separation incentive 
payment under this Act and accepts any employment with the Government 
of the United States, or who works for any agency of the United States 
Government through a personal services contract, 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 Department.
    (b)(1) If the employment under subsection (a) is with an Executive 
agency (as defined by section 105 of title 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 involved 
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 Office of the United States 
Courts may waive the repayment if the individual involved possesses 
unique abilities and is the only qualified applicant available for the 
position.
    (c) 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 appointment, but does not 
        include employment that is without compensation; and
            (2) for the purposes of subsection (a), employment with any 
        agency of the United States Government through a personal 
        services contract.

SEC. 6. ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT FUND.

    (a) In addition to any other payments which it is required to make 
under subchapter III of chapter 983 or chapter 84 of title 5, United 
States Code, the Department 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 
Department who is covered under subchapter III of chapter 83 or chapter 
84 of title 5 to whom a voluntary separation 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 that 
would be payable for a year of service by that employee, computed using 
the employee's final rate of basic pay, and, if last serving on other 
than a full-time basis, with appropriate adjustment therefor.

SEC. 7. REDUCTION OF AGENCY EMPLOYMENT LEVELS.

    (a) In General.--The total full-time equivalent employment in the 
Department 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 Department's full-
time equivalent employment for the fiscal; year in which the voluntary 
separation payments are made with the actual full-time equivalent 
employment for the prior fiscal year.
    (b) Enforcement.--The President, through the Office of Management 
and Budget, shall monitor the Department and take any action necessary 
to ensure that the requirements of this section are met.
    (c) Subsection (a) of this section may be waived upon a 
determination by the President that--
            (1) the existence of a state of war or other national 
        emergency so requires; or
            (2) the existence of an extraordinary emergency which 
        threatens life, health, safety, property, or the environment, 
        so requires.

SEC. 8. CONTINUED HEALTH INSURANCE COVERAGE.

    Section 8905a(d)(4) of title 5, United States Code, is amended--
            (1) in subparagraph (A) by inserting after force ``, or an 
        involuntary separation from a position in or under the 
        Department of Veterans Affairs due to a reduction in force or a 
        title 38 staffing adjustment'';
            (2) in subparagraph (B) by inserting at the beginning 
        thereof ``With respect to the Department of Defense,'';
            (3) by redesignating subparagraph (C) as subparagraph (D);
            (4) by adding a new subparagraph (C) as follows:
                    (C) With respect to the Department of Veterans 
                Affairs, this paragraph shall apply with respect to any 
                individual whose continued coverage is based on a 
                separation occurring on or after the date of enactment 
                of this paragraph and before--
                            (i) October 1, 2004; or
                            (ii) February 1, 2005, if specific notice 
                        of such separation was given to such individual 
                        before October 1, 2004.

SEC. 9. REGULATIONS.

    The Director of the Office of Personnel Management may prescribe 
any regulations necessary to administer the provisions of this Act.

SEC. 10. LIMITATION; SAVINGS CLAUSE.

    (a) No voluntary separation incentive under this Act may be paid 
based on the separation of an employee after September 30, 2004.;
    (b) This Act supplements and does not supersede other authority of 
the Secretary.

SEC. 11. EFFECTIVE DATE.

    (a) This Act shall take effect on the date of enactment.
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