I 111th CONGRESS 2d Session H. R. 6065 IN THE HOUSE OF REPRESENTATIVES July 30, 2010 Mr. Ruppersberger introduced the following bill; which was referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To provide that certain Secret Service employees may elect to transition to coverage under the District of Columbia Police and Fire Fighter Retirement and Disability System.

1.

Short title

This Act may be cited as the United States Secret Service Retirement Act of 2010.

2.

Retirement treatment of certain Secret Service employees

(a)

Definitions

In this Act: (1)

Board

The term Board means the Federal Retirement Thrift Investment Board. (2)

Covered employee

The term covered employee means an individual who— (A)was hired as a member of the United States Secret Service Division or the United States Secret Service Uniformed Division during the period beginning on January 1, 1984, through December 31, 1986; (B)has actively performed duties other than clerical for 10 or more years directly related to the protection mission of the United States Secret Service described under section 3056 of title 18, United States Code; (C)is serving as a member of the United States Secret Service Division or the United States Secret Service Uniformed Division (or any successor entity) on the date of enactment of this Act; (D)is participating in the Federal Employees Retirement System under subchapters II and III of chapter 84 of title 5, United States Code on the date of enactment of this Act; (E)has an amount in the account of that individual in the Thrift Savings Fund that— (i)exceeds the transition cost of that individual; and (ii)is available for withdrawal (including availability after application of section 8435 of title 5, United States Code) immediately before filing an election under subsection (d); and (F)files an election to be a covered employee under subsection (d). (3)

DC Retirement System

The term DC Retirement System means the District of Columbia Police and Firefighters Retirement and Disability System administered under the provisions of law codified in chapter 7 of title 5 of the District of Columbia Official Code. (4)

Office of Pay and Retirement Services

The term Office of Pay and Retirement Services means the Office of Pay and Retirement Services of the District of Columbia. (5)

Transition costs

The term transition costs means the amount determined by the Office of Pay and Retirement Services under subsection (c)(1) with respect to each individual described under subsection (a)(2) (A), (B), (C), and (D). (b)

Notifications

(1)

Initial notification

Not later than 30 days after the date of enactment of this Act, the United States Secret Service shall notify employees of the United States Secret Service that individuals described under subsection (a)(2) (A), (B), (C), (D), and (E) are qualified to file an election under subsection (d). (2)

Notification of transition costs

Not later than 15 days after the United States Secret Service receives a determination from the Office of Pay and Retirement Services of the transition costs of any employee, the United States Secret Service shall notify that employee of— (A)the transition costs of that employee; and (B)if the employee files an election under subsection (d), the requirement of that employee (in accordance with the regulations of the Board) to— (i)complete the withdrawal forms; and (ii)provide for the transfer of the transition costs from the account of that individual in the Thrift Savings Fund. (c)

Transition costs

(1)

Determinations

With respect to each individual described under subsection (a)(2) (A), (B), (C), and (D), the Office of Pay and Retirement Services shall determine an amount equal to— (A)the difference between— (i)the amount that the Federal Government will pay in annuity payments for that individual (if that individual files an election under subsection (d)) under the DC Retirement System during the 11-fiscal year period beginning with the fiscal year in which this Act is enacted; and (ii)the amount that the Federal Government would have paid (if this Act had not been enacted) in annuity payments for that individual under chapter 84 of title 5, United States Code, during the 11-fiscal year period beginning with the fiscal year in which this Act is enacted; (B)the amount not paid by the Federal Government and that individual (if that individual files an election under subsection (d)) as contributions under title II of the Social Security Act for that individual during the 11-fiscal year period beginning with the fiscal year in which this Act is enacted as a result of the enactment of this Act; and (C)the amount of future loss in Federal tax revenues (if that individual files an election under subsection (d)) resulting from a withdrawal made under subsection (e)(2)(B)(ii)(I) based on, during the 11-fiscal year period beginning with the fiscal year in which this Act is enacted— (i)the amount in the account of that individual in the Thrift Savings Fund; and (ii)the age and years of Federal service of that individual. (2)

Transmission of determinations

The Office of Pay and Retirement Services shall transmit the determinations made under this subsection to the United States Secret Service, including with respect to each individual described under subsection (a)(2) (A), (B), (C), and (D)— (A)the amount described under paragraph (1)(A) of this subsection; (B)the amount described under paragraph (1)(B) of this subsection; and (C)the amount described under paragraph (1)(C) of this subsection. (3)

Additional resources

(A)

In general

The Office of Pay and Retirement Services may enter into contracts as necessary to enable that Office to carry out activities under this subsection. (B)

Authorization of appropriations

There are authorized to be appropriated not to exceed $75,000 to carry out this paragraph. (4)

No payment by the Federal Government

The Federal Government shall not pay any transition costs. Transition costs shall be covered by amounts in the accounts in the Thrift Savings Fund of covered employees. (d)

Election of coverage

Not later than 60 days after receiving notification under subsection (b)(2), an individual described under subsection (a)(2) (A), (B), (C), (D), and (E) may file an election with the United States Secret Service to be a covered employee and to transition to the DC Retirement System. (e)

Retirement coverage conversion

(1)

In general

Not later than 180 days after the date of enactment of this Act, and in consultation with the Secretary of Homeland Security and the Board, the Office of Personnel Management shall prescribe regulations to carry out the responsibilities of the Federal Government under this Act. The regulations prescribed under this paragraph shall provide for transition of covered employees from the Federal Employees Retirement System to the Civil Service Retirement System. (2)

Treatment of covered employees

(A)

Election of coverage

(i)

In general

After a covered employee files an election under subsection (d), the covered employee shall be converted from the Federal Employees Retirement System to the Civil Service Retirement System subject to clause (ii). (ii)

Coverage in DC retirement system

(I)

In general

(aa)

Application of DC retirement system

Except as provided under subclauses (III) and (IV), the provisions of law codified in chapter 7 of title 5 of the District of Columbia Official Code shall apply with respect to a covered employee on the date on which the covered employee transitions to the Civil Service Retirement System. (bb)

Nonapplication of FERS or CSRS

A covered employee to whom this clause applies shall not have coverage under the Federal Employees Retirement System or the Civil Service Retirement System. (II)

Authorization for District of Columbia

The government of the District of Columbia shall provide for the coverage of covered employees in the DC Retirement System in accordance with this Act. (III)

United States Secret Service

Notwithstanding subsection (b) of the Policemen and Firemen's Retirement and Disability Act (section 5–703 of title 5 of the District of Columbia Official Code), a covered employee who is a member of the United States Secret Service Division shall be authorized to transfer all funds to his credit in the Civil Service Retirement and Disability Fund continued by sections 8331(5) and 8348 of title 5, United States Code, to the Contributions for Annuity Benefits, United States Secret Service appropriations account of the Department of Homeland Security and after the transfer of such funds the salary of such member shall be subject to the same deductions for credit to the Contributions for Annuity Benefits, United States Secret Service appropriations account of the Department of Homeland Security as the deductions from salaries of other members under the Policemen and Firemen's Retirement and Disability Act (subchapter I of chapter 7 of title 5 of the District of Columbia Official Code), and that member shall be entitled to the same benefits as the other members to whom such Act applies. (IV)

United States Secret Service Uniformed Division

In the administration of this clause, a covered employee who is a member of the United States Secret Service Uniformed Division shall be authorized to transfer all funds to his credit in the Civil Service Retirement and Disability Fund continued by sections 8331(5) and 8348 of title 5, United States Code, to the Contributions for Annuity Benefits, United States Secret Service appropriations account of the Department of Homeland Security and after the transfer of such funds the salary of such member shall be subject to the same deductions for credit to the Contributions for Annuity Benefits, United States Secret Service appropriations account of the Department of Homeland Security as the deductions from salaries of other members under the Policemen and Firemen's Retirement and Disability Act (subchapter I of chapter 7 of title 5 of the District of Columbia Official Code), and that member shall be entitled to the same benefits as the other members to whom such Act applies. (B)

Thrift savings plan

(i)

Treatment as separation from Government employment

For purposes of subchapter III of chapter 84 of title 5, United States Code, a covered employee who is converted under subparagraph (A) of this paragraph shall be treated as a transferred employee who is separated from Government employment described under section 8431 of that title. (ii)

Withdrawal and transfer from Thrift Savings account

(I)

In general

Subject to section 8435 of title 5, United States Code, a covered employee shall make a single withdrawal from the account of that employee in the Thrift Savings Fund in an amount equal to the transition costs of that employee for transfer by the Executive Director under subclause (II). (II)

Transfer and deposit

The Executive Director appointed under section 8474 of title 5, United States Code, shall transfer from the amount of any withdrawal made under subclause (I)— (aa)an amount equal to the amount described under subsection (c)(1)(A) for deposit into the Contributions for Annuity Benefits, United States Secret Service appropriations account of the Department of Homeland Security; (bb)an amount equal to the amount described under subsection (c)(1)(B) for deposit into the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund in such proportions as determined by the Secretary of the Treasury; and (cc)an amount equal to the amount described under subsection (c)(1)(C) for deposit into the general fund of the United States Treasury. (III)

Tax rollover treatment

Notwithstanding section 8433(c) (2), (3), and (4) of title 5, United States Code, any transfer made under subclause (II) shall be treated as a direct transfer described under section 402(e)(6) of the Internal Revenue Code of 1986. (C)

Forfeiture of Social Security benefits

(i)

Contributions

Upon conversion into the Civil Service Retirement System, a covered employee shall forfeit all contributions made for purposes of title II of the Social Security Act on the basis of the covered employee's employment with the United States Secret Service under sections 3101(a) and 3111(a) of the Internal Revenue Code of 1986. All forfeited funds shall remain in the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, as applicable. Notwithstanding paragraphs (4) and (5) of section 205(c) of the Social Security Act, the Commissioner of Social Security shall change or delete any entry with respect to wages of a covered employee that are forfeited under this clause. (ii)

Benefits

(I)

In general

No individual shall be entitled to any benefit under title II of the Social Security Act based on wages for which the contributions were forfeited under clause (i). (II)

No effect on medicare benefits

Notwithstanding the forfeiture by a covered employee under clause (i), such contributions shall continue to be treated as having been made while performing medicare qualified government employment (as defined in section 210(p) of the Social Security Act) for purposes of sections 226 and 226A of that Act.