I 112th CONGRESS 1st Session H. R. 2532 IN THE HOUSE OF REPRESENTATIVES July 14, 2011 Mr. Ruppersberger (for himself and Mr. King of New York) introduced the following bill; which was referred to the Committee on Oversight and Government Reform, and in addition to the Committees on the Budget and 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 permit certain members of the United States Secret Service and certain members of the United States Secret Service Uniformed Division who were appointed in 1984, 1985, or 1986 to elect to be covered under the District of Columbia Police and Firefighter Retirement and Disability System in the same manner as members appointed prior to 1984.

1.

Short title

This Act may be cited as the United States Secret Service Retirement Act of 2011.

2.

Authority of certain members of united states secret service to elect coverage under district of columbia police and firefighter retirement system

(a)

In General

Subsection (b) of the Policemen and Firemen’s Retirement and Disability Act (sec. 5–703, D.C. Official Code) is amended— (1)by striking Whenever any member and inserting (1) In general.—Whenever any member; and (2)by adding at the end the following new paragraph: (2)

Coverage of certain other employees of Secret Service

(A)

In general

Paragraph (1) shall apply with respect to a covered employee in the same manner as such paragraph applies to an individual who is authorized to make a transfer of funds under such paragraph, but only if— (i)not later than 60 days after receiving notification of the transition cost associated with the application of paragraph (1) to the covered employee (as provided under section 2(b)(2) of the United States Secret Service Retirement Act of 2011), the covered employee provides a notification to the Director of the United States Secret Service containing such information and assurances as the Director may require; (ii)on or before the date the covered employee provides a notification under clause (i), the employee makes a lump sum payment in an amount equal to the transition cost associated with the application of paragraph (1) to the covered employee, in accordance with section 2(c) of the United States Secret Service Retirement Act of 2011; and (iii)the covered employee uses the account of the covered employee in the Thrift Savings Fund as the exclusive source of funds for making the lump sum payment under clause (ii). (B)

Adjustment to reflect Social Security contributions and benefits

In the case of a covered employee who authorizes a transfer of funds under paragraph (1), such covered employee shall be subject to the same deductions and shall be entitled to the same benefits as provided for under paragraph (1), subject to offset in accordance with section 103(e) of Public Law 100–238 (5 U.S.C. 8334 note). (C)

Covered employee defined

In this paragraph, the term covered employee means an individual who— (i)was appointed as an officer or member of the United States Secret Service Division or the United States Secret Service Uniformed Division during 1984, 1985, or 1986; (ii)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; (iii)is serving as an officer or 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 paragraph; and (iv)is participating in the Federal Employees’ Retirement System under chapter 84 of title 5, United States Code, on the date of enactment of this paragraph. . (b)

Notifications

(1)

Initial notification by secret service

Not later than 30 days after the date of the enactment of this Act, the Director of the United States Secret Service shall notify each covered employee that the covered employee may execute an election under this subsection to have paragraph (1) of subsection (b) of the Policemen and Firemen’s Retirement and Disability Act (sec. 5–703, D.C. Official Code) apply with respect to the covered employee. (2)

Notification of transition cost

Not later than 15 days after determining the amount of the transition cost associated with the application of paragraph (1) of subsection (b) of the Policemen and Firemen’s Retirement and Disability Act (sec. 5–703, D.C. Official Code) to a covered employee (in accordance with subsection (c)), the Director of the United States Secret Service shall notify the covered employee of such transition cost. (c)

Transition Cost

(1)

Determination of amount

The transition cost associated with the application of paragraph (1) of subsection (b) of the Policemen and Firemen’s Retirement and Disability Act to a covered employee is the amount by which— (A)the estimated present value of the payments which would be payable by the Federal Government to the District of Columbia with respect to such employee during the 11-fiscal year period beginning with the fiscal year in which this Act is enacted if such paragraph applies with respect to the covered employee, exceeds (B)the estimated present value of the benefits which would be payable from the Civil Service Retirement and Disability Fund with respect to such employee during the 11-year period described in subparagraph (A) if such paragraph does not apply with respect to the covered employee. (2)

Determination

Not later than 60 days after the date of the enactment of this Act, the Director of the United States Secret Service, in consultation with the Director of the Office of Personnel Management and the Mayor of the District of Columbia, shall determine the transition cost with respect to each covered employee, by applying such assumptions and other methodologies as the Director of the United States Secret Service considers appropriate, consistent with generally accepted actuarial practices and standards. (3)

Use of distribution from thrift savings plan for lump sum payment

(A)

In general

For purposes of making the lump sum payment required under paragraph (2) of subsection (b) of the Policemen and Firemen’s Retirement and Disability Act, a covered employee shall, subject to section 8435 of title 5, United States Code (to the same extent and in the same manner as a withdrawal under section 8433(h) of such title), direct the Executive Director appointed under section 8474 of such title to make a single withdrawal from the account of the covered employee in the Thrift Savings Fund in an amount equal to the transition cost associated with the covered employee. (B)

Transfer to secret service

Upon being directed by a covered employee to make a withdrawal under subparagraph (A), the Executive Director shall transfer the amount of the withdrawal to the Director of the United States Secret Service for deposit into the Contributions for Annuity Benefits, United States Secret Service appropriations account of the Department of Homeland Security. (C)

Tax rollover treatment

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

Definition

In subsections (b) and (c), a covered employee means an individual described in paragraph (2) of subsection (b) of the Policemen and Firemen’s Retirement and Disability Act (sec. 5–703, D.C. Official Code), as added by subsection (a).

3.

Treatment of reemployed annuitants

Section 8468 of title 5, United States Code, is amended by adding at the end the following: (k)(1)For purposes of this section, the term covered District of Columbia retiree means an individual who is receiving benefits under the Policemen and Firemen’s Retirement and Disability Act— (A)based in whole or in part on such individual’s service as an officer or member of the United States Secret Service Division or the United States Secret Service Uniformed Division; and (B)pursuant to an election, made under subsection (b)(2) of such Act (sec. 5–703, D.C. Official Code), to transfer to that retirement system from the retirement system under this chapter. (2)If a covered District of Columbia retiree becomes employed in an appointive or elective position (as referred to in subsection (a)), an amount equal to the retirement benefits which are payable under the Policemen and Firemen’s Retirement and Disability Act and allocable to the period of actual employment shall be deducted from the pay of the reemployed retiree, to the same extent and in the same manner as if those retirement benefits were an annuity under this chapter. (3)The Director of the Office of Personnel Management shall prescribe any regulations necessary to carry out this subsection, including regulations under which an employing agency shall accept the certification of the appropriate official of the government of the District of Columbia regarding the amount of retirement benefits being paid to a covered District of Columbia retiree for a period during which such retiree is employed in the position described in paragraph (2). .

4.

PAYGO Compliance

The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled Budgetary Effects of PAYGO Legislation for this Act, submitted for printing in the Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior to the vote on passage.