[Congressional Record Volume 140, Number 24 (Tuesday, March 8, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
              FEDERAL WORKFORCE RESTRUCTURING ACT OF 1994

  Mr. CLAY. Mr. Speaker, I move to suspend the rules and agree to the 
resolution (H. Res. 380) providing for the concurrence by the House 
with an amendment to the amendment of the Senate to H.R. 3345.
  The Clerk read as follows:

                              H. Res. 380

       Resolved, That upon the adoption of this resolution, the 
     bill (H.R. 3345) to provide temporary authority to Government 
     agencies relating to voluntary separation incentive payments, 
     and for other purposes, with the Senate amendment thereto, 
     shall be considered to have been taken from the Speaker's 
     table to the end that the Senate amendment thereto be, and 
     the same is hereby, agreed to with an amendment as follows:
       In lieu of the matter proposed to be inserted by the 
     amendment of the Senate to the text of the bill, insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Workforce 
     Restructuring Act of 1994''.

     SEC. 2. TRAINING.

       (a) In General.--Chapter 41 of title 5, United States Code, 
     is amended--
       (1) in section 4101(4) by striking ``fields'' and all that 
     follows through the semicolon and inserting ``fields which 
     will improve individual and organizational performance and 
     assist in achieving the agency's mission and performance 
     goals;'';
       (2) in section 4103--
       (A) in subsection (a)--
       (i) by striking ``In'' and all that follows through 
     ``maintain'' and inserting ``In order to assist in achieving 
     an agency's mission and performance goals by improving 
     employee and organizational performance, the head of each 
     agency, in conformity with this chapter, shall establish, 
     operate, maintain, and evaluate'';
       (ii) by striking ``and'' at the end of paragraph (2);
       (iii) by redesignating paragraph (3) as paragraph (4); and
       (iv) by inserting after paragraph (2) the following:
       ``(3) provide that information concerning the selection and 
     assignment of employees for training and the applicable 
     training limitations and restrictions be made available to 
     employees of the agency; and''; and
       (B) in subsection (b)--
       (i) in paragraph (1) by striking ``determines'' and all 
     that follows through the period and inserting ``determines 
     that such training would be in the interests of the 
     Government.'';
       (ii) by striking paragraph (2) and redesignating paragraph 
     (3) as paragraph (2); and
       (iii) in subparagraph (C) of paragraph (2) (as so 
     redesignated) by striking ``retaining'' and all that follows 
     through the period and inserting ``such training.'';
       (3) in section 4105--
       (A) in subsection (a) by striking ``(a)''; and
       (B) by striking subsections (b) and (c);
       (4) by repealing section 4106;
       (5) in section 4107--
       (A) by amending the catchline to read as follows:

     ``Sec. 4107. Restriction on degree training'';

       (B) by striking subsections (a) and (b) and redesignating 
     subsections (c) and (d) as subsections (a) and (b), 
     respectively;
       (C) by amending subsection (a) (as so redesignated)--
       (i) by striking ``subsection (d)'' and inserting 
     ``subsection (b)''; and
       (ii) by striking ``by, in, or through a non-Government 
     facility''; and
       (D) by amending paragraph (1) of subsection (b) (as so 
     redesignated) by striking ``subsection (c)'' and inserting 
     ``subsection (a)'';
       (6) in section 4108(a) by striking ``by, in, or through a 
     non-Government facility under this chapter'' and inserting 
     ``for more than a minimum period prescribed by the head of 
     the agency'';
       (7) in section 4113(b)--
       (A) in the first sentence by striking ``annually to the 
     Office,'' and inserting ``to the Office, at least once every 
     3 years, and''; and
       (B) by striking the matter following the first sentence and 
     inserting the following: ``The report shall set forth--
       ``(1) information needed to determine that training is 
     being provided in a manner which is in compliance with 
     applicable laws intended to protect or promote equal 
     employment opportunity; and
       ``(2) information concerning the expenditures of the agency 
     in connection with training and such other information as the 
     Office considers appropriate.'';
       (8) by repealing section 4114; and
       (9) in section 4118--
       (A) in subsection (a)(7) by striking ``by, in, and through 
     non-Government facilities'';
       (B) by striking subsection (b); and
       (C) by redesignating subsections (c) and (d) as subsections 
     (b) and (c), respectively.
       (b) Technical and Conforming Amendments.--Title 5, United 
     States Code, is amended--
       (1) in section 3381(e) by striking ``4105(a),'' and 
     inserting ``4105,''; and
       (2) in the analysis for chapter 41--
       (A) by repealing the items relating to sections 4106 and 
     4114; and
       (B) by amending the item relating to section 4107 to read 
     as follows:

``4107. Restriction on degree training.''.

       (c) Effective Date.--The amendments made by this section 
     shall become effective on the date of enactment of this Act.

     SEC. 3. VOLUNTARY SEPARATION INCENTIVES.

       (a) Definitions.--For the purpose of this section--
       (1) the term ``agency'' means an Executive agency (as 
     defined by section 105 of title 5, United States Code), but 
     does not include the Department of Defense, the Central 
     Intelligence Agency, or the General Accounting Office; and
       (2) the term ``employee'' means an employee (as defined by 
     section 2105 of title 5, United States Code) who is employed 
     by an agency, is serving under an appointment without time 
     limitation, and has been currently employed for a continuous 
     period of at least 12 months; such term includes an 
     individual employed by a county committee established under 
     section 8(b) of the Soil Conservation and Domestic Allotment 
     Act (16 U.S.C. 590h(b)), 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 Government; or
       (B) an employee having a disability on the basis of which 
     such employee is or would be eligible for disability 
     retirement under the applicable retirement system referred to 
     in subparagraph (A).
       (b) Authority.--
       (1) In general.--In order to avoid or minimize the need for 
     involuntary separations due to a reduction in force, 
     reorganization, transfer of function, or other similar 
     action, and subject to paragraph (2), the head of an agency 
     may pay, or authorize the payment of, voluntary separation 
     incentive payments to agency employees--
       (A) in any component of the agency;
       (B) in any occupation;
       (C) in any geographic location; or
       (D) on the basis of any combination of factors under 
     subparagraphs (A) through (C).
       (2) Condition.--
       (A) In general.--In order to receive an incentive payment, 
     an employee must separate from service with the agency 
     (whether by retirement or resignation) before April 1, 1995.
       (B) Exception.--An employee who does not separate from 
     service before the date specified in subparagraph (A) shall 
     be ineligible for an incentive payment under this section 
     unless--
       (i) the agency head determines that, in order to ensure the 
     performance of the agency's mission, it is necessary to delay 
     such employee's separation; and
       (ii) the employee separates after completing any additional 
     period of service required (but not later than March 31, 
     1997).
       (c) 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; or
       (B) $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 any 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 appropriations or funds available 
     for the payment of the basic pay of the employee.
       (d) Effect of Subsequent Employment With the Government.--
       (1) In general.--An employee who has received a voluntary 
     separation incentive payment under this section and accepts 
     employment with the Government of the United States within 5 
     years after the date of the separation on which the payment 
     is based shall be required to repay the entire amount of the 
     incentive payment to the agency that paid the incentive 
     payment.
       (2) Waiver authority.--
       (A) Executive agency.--If the employment is with an 
     Executive agency (as defined by section 105 of title 5, 
     United States Code), 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.
       (B) Legislative branch.--If the employment 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.
       (C) Judicial branch.--If the employment 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.
       (3) Definition.--For purposes of paragraph (1) (but not 
     paragraph (2)), the term ``employment'' includes employment 
     under a personal services contract with the United States.
       (e) Regulations.--The Director of the Office of Personnel 
     Management may prescribe any regulations necessary for the 
     administration of subsections (a) through (d).
       (f) Employees of the Judicial Branch.--The Director of the 
     Administrative Office of the United States Courts may, by 
     regulation, establish a program consistent with the program 
     established by subsections (a) through (d) for individuals 
     serving in the judicial branch.

     SEC. 4. ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT 
                   FUND.

       (a) Relating to Fiscal Years 1994 and 1995.--
       (1) In general.--In addition to any other payments which it 
     is required to make under subchapter III of chapter 83 of 
     title 5, United States Code, an agency 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 9 percent 
     of the final basic pay of each employee of the agency--
       (A) who, on or after the date of the enactment of this Act 
     and before October 1, 1995, retires under section 8336(d)(2) 
     of such title; and
       (B) to whom a voluntary separation incentive payment has 
     been or is to be paid by such agency based on that 
     retirement.
       (2) Definitions.--For the purpose of this subsection--
       (A) the term ``final basic pay'', with respect to an 
     employee, means the total amount of basic pay which would be 
     payable for a year of service by such 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; and
       (B) the term ``voluntary separation incentive payment'' 
     means--
       (i) a voluntary separation incentive payment under section 
     3 (including under any program established under section 
     3(f)); and
       (ii) any separation pay under section 5597 of title 5, 
     United States Code, or section 2 of the Central Intelligence 
     Agency Voluntary Separation Pay Act (Public Law 103-36; 107 
     Stat. 104).
       (b) Relating to Fiscal Years 1995 Through 1998.--
       (1) In general.--In addition to any other payments which it 
     is required to make under subchapter III of chapter 83 or 
     chapter 84 of title 5, United States Code, in fiscal years 
     1995, 1996, 1997, and 1998 (and in addition to any amounts 
     required under subsection (a)), each agency shall, before the 
     end of each such fiscal year, 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 the product of--
       (A) the number of employees of such agency who, as of March 
     31st of such fiscal year, are subject to subchapter III of 
     chapter 83 or chapter 84 of such title; multiplied by
       (B) $80.
       (2) Definition.--For the purpose of this subsection, the 
     term ``agency'' means an Executive agency (as defined by 
     section 105 of title 5, United States Code), but does not 
     include the General Accounting Office.
       (c) Regulations.--The Director of the Office of Personnel 
     Management may prescribe any regulations necessary to carry 
     out this section.

     SEC. 5. REDUCTION OF FEDERAL FULL-TIME EQUIVALENT POSITIONS.

       (a) Definition.--For the purpose of this section, the term 
     ``agency'' means an Executive agency (as defined by section 
     105 of title 5, United States Code), but does not include the 
     General Accounting Office.
       (b) Limitations on Full-Time Equivalent Positions.--The 
     President, through the Office of Management and Budget (in 
     consultation with the Office of Personnel Management), shall 
     ensure that the total number of full-time equivalent 
     positions in all agencies shall not exceed--
       (1) 2,084,600 during fiscal year 1994;
       (2) 2,043,300 during fiscal year 1995;
       (3) 2,003,300 during fiscal year 1996;
       (4) 1,963,300 during fiscal year 1997;
       (5) 1,922,300 during fiscal year 1998; and
       (6) 1,882,300 during fiscal year 1999.
       (c) Monitoring and Notification.--The Office of Management 
     and Budget, after consultation with the Office of Personnel 
     Management, shall--
       (1) continuously monitor all agencies and make a 
     determination on the first date of each quarter of each 
     applicable fiscal year of whether the requirements under 
     subsection (b) are met; and
       (2) notify the President and the Congress on the first date 
     of each quarter of each applicable fiscal year of any 
     determination that any requirement of subsection (b) is not 
     met.
       (d) Compliance.--If, at any time during a fiscal year, the 
     Office of Management and Budget notifies the President and 
     the Congress that any requirement under subsection (b) is not 
     met, no agency may hire any employee for any position in such 
     agency until the Office of Management and Budget notifies the 
     President and the Congress that the total number of full-time 
     equivalent positions for all agencies equals or is less than 
     the applicable number required under subsection (b).
       (e) Waiver.--
       (1) Emergencies.--Any provision of this section may be 
     waived upon a determination by the President that--
       (A) the existence of a state of war or other national 
     security concern so requires; or
       (B) the existence of an extraordinary emergency threatening 
     life, health, safety, property, or the environment so 
     requires.
       (2) Agency efficiency or critical mission.--
       (A) Subsection (d) may be waived, in the case of a 
     particular position or category of positions in an agency, 
     upon a determination of the President that the efficiency of 
     the agency or the performance of a critical agency mission so 
     requires.
       (B) Whenever the President grants a waiver pursuant to 
     subparagraph (A), the President shall take all necessary 
     actions to ensure that the overall limitations set forth in 
     subsection (b) are not exceeded.
       (f) Employment Backfill Prevention.--
       (1) In general.--The total number of funded employee 
     positions in all agencies (excluding the Department of 
     Defense and the Central Intelligence Agency) shall be reduced 
     by one position for each vacancy created by the separation of 
     any employee who has received, or is due to receive, a 
     voluntary separation incentive payment under section 3 (a)-
     (e). For purposes of this subsection, positions and vacancies 
     shall be counted on a full-time-equivalent basis.
       (2) Related restriction.--No funds budgeted for and 
     appropriated by any Act for salaries or expenses of positions 
     eliminated under this subsection may be used for any purpose 
     other than authorized separation costs.
       (g) Limitation on Procurement of Service Contracts.--The 
     President shall take appropriate action to ensure that there 
     is no increase in the procurement of service contracts by 
     reason of the enactment of this Act, except in cases in which 
     a cost comparison demonstrates such contracts would be to the 
     financial advantage of the Federal Government.

     SEC. 6. SUBSEQUENT EMPLOYMENT AND REPAYMENT OF SEPARATION 
                   PAYMENT.

       (a) Defense Agency Separation Pay.--Section 5597 of title 
     5, United States Code, is amended by adding at the end the 
     following:
       ``(g)(1) An employee who receives separation pay under this 
     section on the basis of a separation occurring on or after 
     the date of the enactment of the Federal Workforce 
     Restructuring Act of 1994 and accepts employment with the 
     Government of the United States within 5 years after the date 
     of the separation on which payment of the separation pay is 
     based shall be required to repay the entire amount of the 
     separation pay to the defense agency that paid the separation 
     pay.
       ``(2) If the employment is with an Executive agency, 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.
       ``(3) If the employment 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.
       ``(4) If the employment 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.''.
       (b) Central Intelligence Agency Separation Payment.--
     Section 2(b) of the Central Intelligence Agency Voluntary 
     Separation Pay Act (Public Law 103-36; 107 Stat. 104) is 
     amended by adding at the end the following: ``An employee who 
     receives separation pay under this section on the basis of a 
     separation occurring on or after the date of the enactment of 
     the Federal Workforce Restructuring Act of 1994 and accepts 
     employment with the Government of the United States within 5 
     years after the date of the separation on which payment of 
     the separation pay is based shall be required to repay the 
     entire amount of the separation pay to the Central 
     Intelligence Agency. If the employment is with an Executive 
     agency (as defined by section 105 of title 5, United States 
     Code), 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. If the employment 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. If the employment 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.''.

     SEC. 7. STANDARDIZATION OF WITHDRAWAL OPTIONS FOR THRIFT 
                   SAVINGS PLAN PARTICIPANTS.

       (a) Participation in the Thrift Savings Plan.--Section 
     8351(b) of title 5, United States Code, is amended--
       (1) by amending paragraph (4) to read as follows:
       ``(4) Section 8433(b) of this title applies to any employee 
     or Member who elects to make contributions to the Thrift 
     Savings Fund under subsection (a) of this section and 
     separates from Government employment.'';
       (2) by striking paragraphs (5), (6), and (8);
       (3) by redesignating paragraphs (7), (9), and (10) as 
     paragraphs (5), (6), and (7), respectively;
       (4) in paragraph (5)(C) (as so redesignated by paragraph 
     (3) of this subsection) by striking ``or former spouse'' each 
     place it appears;
       (5) by amending paragraph (6) (as so redesignated by 
     paragraph (3) of this subsection) to read as follows:
       ``(6) Notwithstanding paragraph (4), if an employee or 
     Member separates from Government employment and such 
     employee's or Member's nonforfeitable account balance is 
     $3,500 or less, the Executive Director shall pay the 
     nonforfeitable account balance to the participant in a single 
     payment unless the employee or Member elects, at such time 
     and otherwise in such manner as the Executive Director 
     prescribes, one of the options available under subsection 
     (b).''; and
       (6) in paragraph (7) (as so redesignated by paragraph (3) 
     of this subsection) by striking ``nonforfeiture'' and 
     inserting ``nonforfeitable''.
       (b) Benefits and Election of Benefits.--Section 8433 of 
     title 5, United States Code, is amended--
       (1) in subsection (b) by striking the matter before 
     paragraph (1) and inserting the following:
       ``(b) Subject to section 8435 of this title, any employee 
     or Member who separates from Government employment is 
     entitled and may elect--'';
       (2) by striking subsections (c) and (d) and redesignating 
     subsections (e) through (i) as subsections (c) through (g), 
     respectively;
       (3) in subsection (c)(1) (as so redesignated by paragraph 
     (2) of this subsection) by striking ``or (c)(4) or required 
     under subsection (d) directly to an eligible retirement plan 
     or plans (as defined in section 402(a)(5)(E) of the Internal 
     Revenue Code of 1954)'' and inserting ``directly to an 
     eligible retirement plan or plans (as defined in section 
     402(c)(8) of the Internal Revenue Code of 1986)'';
       (4) in subsection (d)(2) (as so redesignated by paragraph 
     (2) of this subsection) by striking ``or (c)(2)''; and
       (5) in subsection (f) (as so redesignated by paragraph (2) 
     of this subsection)--
       (A) by striking paragraph (1) and redesignating paragraphs 
     (2) and (3) as paragraphs (1) and (2), respectively; and
       (B) in paragraph (1) (as so redesignated by subparagraph 
     (A) of this paragraph)--
       (i) by striking ``Notwithstanding subsections (b) and (c), 
     if an employee or Member separates from Government employment 
     under circumstances making such employee or Member eligible 
     to make an election under either of those subsections, and 
     such employee's or Member's'' and inserting ``Notwithstanding 
     subsection (b), if an employee or Member separates from 
     Government employment, and such employee's or Member's''; and
       (ii) by striking ``or (c), as applicable''; and
       (C) in paragraph (2) (as so redesignated by subparagraph 
     (A) of this paragraph) by striking ``paragraphs (1) and (2)'' 
     and inserting ``paragraph (1)''.
       (c) Annuities: Methods of Payment; Election; Purchase.--
     Section 8434(c) of title 5, United States Code, is amended to 
     read as follows:
       ``(c) Notwithstanding the elimination of a method of 
     payment by the Board, an employee, Member, former employee, 
     or former Member may elect the eliminated method if the 
     elimination of such method becomes effective less than 5 
     years before the date on which that individual's annuity 
     commences.''.
       (d) Protections for Spouses and Former Spouses.--Section 
     8435 of title 5, United States Code, is amended--
       (1) in subsection (a)(1)(A) by striking ``subsection 
     (b)(3), (b)(4), (c)(3), or (c)(4) of section 8433 of this 
     title or change an election previously made under subsection 
     (b)(1), (b)(2), (c)(1), or (c)(2)'' and inserting 
     ``subsection (b)(3) or (b)(4) of section 8433 of this title 
     or change an election previously made under subsection (b)(1) 
     or (b)(2)'';
       (2) by striking subsection (b);
       (3) by redesignating subsections (c) through (i) as 
     subsections (b) through (h), respectively;
       (4) in subsection (b) (as so redesignated by paragraph (3) 
     of this subsection) by amending paragraph (2) to read as 
     follows:
       ``(2) Paragraph (1) shall not apply if--
       ``(A) a joint waiver of such method is made, in writing, by 
     the employee or Member and the spouse; or
       ``(B) the employee or Member waives such method, in 
     writing, after establishing to the satisfaction of the 
     Executive Director that circumstances described under 
     subsection (a)(2) (A) or (B) make the requirement of a joint 
     waiver inappropriate.''; and
       (5) in subsection (c)(1) (as so redesignated by paragraph 
     (3) of this subsection) by striking ``and a transfer may not 
     be made under section 8433(d) of this title''.
       (e) Justices and Judges.--Section 8440a(b) of title 5, 
     United States Code, is amended--
       (1) in paragraph (5) by striking ``Section 8433(d)'' and 
     inserting ``Section 8433(b)''; and
       (2) by striking paragraphs (7) and (8) and inserting the 
     following:
       ``(7) Notwithstanding paragraphs (4) and (5), if any 
     justice or judge retires under subsection (a) or (b) of 
     section 371 or section 372(a) of title 28, or resigns without 
     having met the age and service requirements set forth under 
     section 371(c) of title 28, and such justice's or judge's 
     nonforfeitable account balance is $3,500 or less, the 
     Executive Director shall pay the nonforfeitable account 
     balance to the participant in a single payment unless the 
     justice or judge elects, at such time and otherwise in such 
     manner as the Executive Director prescribes, one of the 
     options available under section 8433(b).''.
       (f) Bankruptcy Judges and Magistrates.--Section 8440b of 
     title 5, United States Code, is amended--
       (1) in subsection (b)(4) by amending subparagraph (B) to 
     read as follows:
       ``(B) Section 8433(b) of this title applies to any 
     bankruptcy judge or magistrate who elects to make 
     contributions to the Thrift Savings Fund under subsection (a) 
     of this section and who retires before attaining age 65 but 
     is entitled, upon attaining age 65, to an annuity under 
     section 377 of title 28 or section 2(c) of the Retirement and 
     Survivors Annuities for Bankruptcy Judges and Magistrates Act 
     of 1988.'';
       (2) in subsection (b)(4)(C) by striking ``Section 8433(d)'' 
     and inserting ``Section 8433(b)'';
       (3) in subsection (b)(5) by striking ``retirement under 
     section 377 of title 28 is'' and inserting ``any of the 
     actions described under paragraph (4) (A), (B), or (C) shall 
     be considered'';
       (4) in subsection (b) by striking paragraph (8) and 
     redesignating paragraph (9) as paragraph (8); and
       (5) in paragraph (8) of subsection (b) (as so redesignated 
     by paragraph (4) of this subsection)--
       (A) by striking ``Notwithstanding subparagraphs (A) and (B) 
     of paragraph (4), if any bankruptcy judge or magistrate 
     retires under circumstances making such bankruptcy judge or 
     magistrate eligible to make an election under subsection (b) 
     or (c)'' and inserting ``Notwithstanding paragraph (4), if 
     any bankruptcy judge or magistrate retires under 
     circumstances making such bankruptcy judge or magistrate 
     eligible to make an election under subsection (b)''; and
       (B) by striking ``and (c), as applicable''.
       (g) Claims Court Judges.--Section 8440c of title 5, United 
     States Code, is amended--
       (1) in subsection (b)(4)(B) by striking ``Section 8433(d)'' 
     and inserting ``Section 8433(b)'';
       (2) in subsection (b)(5) by striking ``retirement under 
     section 178 of title 28 is'' and inserting ``any of the 
     actions described in paragraph (4) (A) or (B) shall be 
     considered'';
       (3) in subsection (b) by striking paragraph (8) and 
     redesignating paragraph (9) as paragraph (8); and
       (4) in paragraph (8) (as so redesignated by paragraph (3) 
     of this subsection) by striking ``Notwithstanding paragraph 
     (4)(A)'' and inserting ``Notwithstanding paragraph (4)''.
       (h) Judges of the United States Court of Veterans 
     Appeals.--Section 8440d(b)(5) of title 5, United States Code, 
     is amended by striking ``A transfer shall be made as provided 
     in section 8433(d) of this title'' and inserting ``Section 
     8433(b) of this title applies''.
       (i) Technical and Conforming Amendments.--Title 5, United 
     States Code, is amended--
       (1) in section 8351(b)(5)(B) (as so redesignated by 
     subsection (a)(3) of this section) by striking ``section 
     8433(i)'' and inserting ``section 8433(g)'';
       (2) in section 8351(b)(5)(D) (as so redesignated by 
     subsection (a)(3) of this section) by striking ``section 
     8433(i)'' and inserting ``section 8433(g)'';
       (3) in section 8433(b)(4) by striking ``subsection (e)'' 
     and inserting ``subsection (c)'';
       (4) in section 8433(d)(1) (as so redesignated by subsection 
     (b)(2) of this section) by striking ``(d) of section 8435'' 
     and inserting ``(c) of section 8435'';
       (5) in section 8433(d)(2) (as so redesignated by subsection 
     (b)(2) of this section) by striking ``section 8435(d)'' and 
     inserting ``section 8435(c)'';
       (6) in section 8433(e) (as so redesignated by subsection 
     (b)(2) of this section) by striking ``section 8435(d)(2)'' 
     and inserting ``section 8435(c)(2)'';
       (7) in section 8433(g)(5) (as so redesignated by subsection 
     (b)(2) of this section) by striking ``section 8435(f)'' and 
     inserting ``section 8435(e)'';
       (8) in section 8434(b) by striking ``section 8435(c)'' and 
     inserting ``section 8435(b)'';
       (9) in section 8435(a)(1)(B) by striking ``subsection (c)'' 
     and inserting ``subsection (b)'';
       (10) in section 8435(d)(1)(B) (as so redesignated by 
     subsection (d)(3) of this section) by striking ``subsection 
     (d)(2)'' and inserting ``subsection (c)(2)'';
       (11) in section 8435(d)(3)(A) (as so redesignated by 
     subsection (d)(3) of this section) by striking ``subsection 
     (c)(1)'' and inserting ``subsection (b)(1)'';
       (12) in section 8435(d)(6) (as so redesignated by 
     subsection (d)(3) of this section) by striking ``or (c)(2)'' 
     and inserting ``or (b)(2)'';
       (13) in section 8435(e)(1)(A) (as so redesignated by 
     subsection (d)(3) of this section) by striking ``section 
     8433(i)'' and inserting ``section 8433(g)'';
       (14) in section 8435(e)(2) (as so redesignated by 
     subsection (d)(3) of this section) by striking ``section 
     8433(i) of this title shall not be approved if approval would 
     have the result described in subsection (d)(1)'' and 
     inserting ``section 8433(g) of this title shall not be 
     approved if approval would have the result described under 
     subsection (c)(1)'';
       (15) in section 8435(g) (as so redesignated by subsection 
     (d)(3) of this section) by striking ``section 8433(i)'' and 
     inserting ``section 8433(g)'';
       (16) in section 8437(c)(5) by striking ``section 8433(i)'' 
     and inserting ``section 8433(g)''; and
       (17) in section 8440a(b)(6) by striking ``section 
     8351(b)(7)'' and inserting ``section 8351(b)(5)''.
       (j) Effective Date.--This section shall take effect 1 year 
     after the date of the enactment of this Act or on such 
     earlier date as the Executive Director of the Federal 
     Retirement Thrift Investment Board shall provide in 
     regulation.

     SEC. 8. AMENDMENTS TO ALASKA RAILROAD TRANSFER ACT OF 1982 
                   REGARDING FORMER FEDERAL EMPLOYEES.

       (a) Applicability of Voluntary Separation Incentives to 
     Certain Former Federal Employees.--Section 607(a) of the 
     Alaska Railroad Transfer Act of 1982 (45 U.S.C. 1206(a)) is 
     amended by adding at the end the following:
       ``(4)(A) The State-owned railroad shall be included in the 
     definition of `agency' for purposes of section 3 (a), (b), 
     (c), and (e) of the Federal Workforce Restructuring Act of 
     1994 and may elect to participate in the voluntary separation 
     incentive program established under such Act. Any employee of 
     the State-owned railroad who meets the qualifications as 
     described under the first sentence of paragraph (1) shall be 
     deemed an employee under such Act.
       ``(B) An employee who has received a voluntary separation 
     incentive payment under this paragraph and accepts employment 
     with the State-owned railroad within 5 years after the date 
     of separation on which payment of the incentive is based 
     shall be required to repay the entire amount of the incentive 
     payment unless the head of the State-owned railroad 
     determines that the individual involved possesses unique 
     abilities and is the only qualified applicant available for 
     the position.''.
       (b) Life and Health Insurance Benefits.--Section 607 of the 
     Alaska Railroad Transfer Act of 1982 (45 U.S.C. 1206) is 
     amended by striking subsection (e) and inserting the 
     following:
       ``(e)(1) Any person described under the provisions of 
     paragraph (2) may elect life insurance coverage under chapter 
     87 of title 5, United States Code, and enroll in a health 
     benefits plan under chapter 89 of title 5, United States 
     Code, in accordance with the provisions of this subsection.
       ``(2) The provisions of paragraph (1) shall apply to any 
     person who--
       ``(A) on the date of the enactment of the Federal Workforce 
     Restructuring Act of 1994, is an employee of the State-owned 
     railroad;
       ``(B) has 20 years or more of service (in the civil service 
     as a Federal employee or as an employee of the State-owned 
     railroad, combined) on the date of retirement from the State-
     owned railroad; and
       ``(C)(i) was covered under a life insurance policy pursuant 
     to chapter 87 of title 5, United States Code, on January 4, 
     1985, for the purpose of electing life insurance coverage 
     under the provisions of paragraph (1); or
       ``(ii) was enrolled in a health benefits plan pursuant to 
     chapter 89 of title 5, United States Code, on January 4, 
     1985, for the purpose of enrolling in a health benefits plan 
     under the provisions of paragraph (1).
       ``(3) For purposes of this section, any person described 
     under the provisions of paragraph (2) shall be deemed to have 
     been covered under a life insurance policy under chapter 87 
     of title 5, United States Code, and to have been enrolled in 
     a health benefits plan under chapter 89 of title 5, United 
     States Code, during the period beginning on January 5, 1985, 
     through the date of retirement of any such person.
       ``(4) The provisions of paragraph (1) shall not apply to 
     any person described under paragraph (2) until the date such 
     person retires from the State-owned railroad.''.
  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Missouri [Mr. Clay] will be recognized for 20 minutes, and the 
gentleman from Indiana [Mr. Myers] will be recognized for 20 minutes.
  The Chair recognizes the gentleman from Missouri [Mr. Clay].
  Mr. CLAY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, on February 10, 1994, this body passed H.R. 3345, the 
Federal Workforce Restructuring Act, by a vote of 391 to 17. H.R. 3345 
reduces overall Federal employment by 252,000 positions and authorizes 
Federal agencies to offer separation incentives to their employees of 
up to $25,000 in order to accomplish this reduction. As passed by the 
House, it created a short-term increase in direct spending by the 
Federal Government, but, over the long term it actually reduces direct 
spending and it reduces discretionary spending by over $22 billion. For 
this reason, the House waived points of order against the legislation 
and overwhelmingly passed the bill.
  Regrettably, the other body disagreed with the legislation we passed 
and attached provisions which rendered the separation incentive program 
useless to Federal agencies. In fiscal year 1994, rather than promoting 
voluntary separations as intended by this legislation, the Senate 
amendment to H.R. 3345 effectively requires that agencies rely upon 
involuntary separations.

  The amendment I am asking the House to adopt today addresses the 
direct spending concern of the Senate in a manner that will ensure 
agencies are not precluded from using separation incentives to 
encourage voluntary separations. Specifically, my amendment requires 
all agencies to pay 9 percent of the employee's salary to the civil 
service retirement fund in fiscal years 1994 and 1995 for each employee 
who accepts a buy-out and takes early retirement. The amendment further 
provides that in each of fiscal years 1995 through 1998, agencies shall 
pay into the retirement fund $80 times the number of active workers 
participating in the civil service or Federal Employees Retirement 
Systems. Over the 5-year period beginning in 1994, this formula will 
offset the entire direct spending costs associated with the separation 
incentive payments. It also guarantees that the costs to an agency of 
encouraging voluntary separations are comparable to the costs an agency 
otherwise would incur if it accomplished the same reductions through 
involuntary separations.

  When the House initially considered H.R. 3345, it adopted an 
amendment offered by Mr. Penny, Mr. Burton, and Mr. Solomon. The 
amendment I am now offering includes provisions identical to the Penny/
Burton/Solomon amendment. In addition to reducing overall Federal 
employment by 252,000 positions, the Penny/Burton/Solomon amendment 
required that agencies reduce their personnel on a one-for-one basis 
for every buyout offer that is accepted. The amendment presently before 
the House retains that exact language. The Penny/Burton/Solomon 
amendment also required that those who accept a buyout and return to 
Government service within a 5-year period must pay back the full 
incentive payment. This amendment contains identical language.
  Mr. Speaker, it is imperative that we enact this legislation in the 
next few days so that Federal agencies may make maximum use of the 
buyout authority and avoid involuntary separations.
  Mr. HOYER. Mr. Speaker, will the gentleman yield?
  Mr. CLAY. I yield to the gentleman from Maryland.
  Mr. HOYER. Mr. Speaker, I rise in strong support of this legislation. 
It is critical that we pass it today, move it on and, hopefully, have 
the Senate pass it so we can avoid, if it all possible, involuntary 
separations which are costly for the Government and very unfair to our 
employees, and I want to congratulate the gentleman from Missouri [Mr. 
Clay] for his leadership on this issue. He has worked, I know, he and 
his staff, very hard to get us to this point in time, and I also want 
to thank the ranking member, the gentleman from Indiana [Mr. Myers], my 
good friend, who has also worked very hard and very constructively to 
get us to this point.
  Mr. Speaker, I urge immediate passage of this legislation.
  Mr. Speaker, I rise today to commend Chairman Clay for his efforts to 
resolve the deadlock that has been reached regarding the buyout for 
Federal Employees.
  There is no question that if we do not act today, and resolve this 
issue this week, that most Federal agencies will face the very 
wrenching and disruptive procedure of carrying out reductions in force 
to stay within their appropriated amounts for salaries and expenses.
  The Senate version of this legislation had two key differences from 
the House passed version, which was adopted by a vote of 391 to 17 a 
few weeks ago. First, the Senate required the bill to be paid for 
within the 5-year timeframe scored by CBO. Chairman Clay has met that 
test and developed a reasonable method for meeting the pay-go test. The 
Senate should accept this compromise.
  Mr. Speaker, Chairman Clay has fashioned a bill that meets the pay-go 
test in full; adopts germaine Senate amendments; and meets the test for 
the Government to act as a responsible employer.
  This bill allows for targeted cuts--that can be selectively applied, 
to accomplish the maximum savings and efficiencies without jeopardizing 
the effective delivery of Government services.
  I urge its adoption.
  Mr. CLAY. Mr. Speaker, I reserve the balance of my time.
  Mr. MYERS of Indiana. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise in strong support of this compromise worked out 
by our chairman, the gentleman from Missouri [Mr. Clay], with strong 
help from the gentleman from Maryland [Mr. Hoyer], both of whom have 
worked very hard, not only recently trying to work out a compromise 
with the Senate, but also in developing this bill to the point where we 
are now.
  Mr. Speaker, the gentleman from Missouri [Mr. Clay] has very 
accurately described what is in this. The important thing is that this 
legislation, now offered as a compromise, provides all the protection 
for any possible abuse that might happen if employees took the $25,000, 
came back to work for the Agency. They cannot do that. It protects the 
taxpayers in this respect. It also has the right of coming back in for 
contract. It also gives that protection, but it is a fair way to 
approach this.
  Wearing my other hat on the Committee on Appropriations where I 
serve, Mr. Speaker, I asked a number of the Secretaries of the 
Departments coming before our Committee on Appropriations what impact, 
how this legislation would work, and all have testified exactly the 
same way with the same kind of testimony. They are faced with a 
situation of having to bring down their work force by 252,000 in the 
next 5 years. If they have to do it by RIF, it will be very unfair to 
the Federal employees. It also would be unfair to their agencies 
because they would probably take the key people from the top, some of 
whom had to be kept so this voluntary program of buyout is a more 
equitable way. But I also asked them about this more reasonable way of 
paying for those who are purchased, if I may use that. Their retirement 
is purchased for early retirement, so we give these employees up to 
$25,000 encouragement to retire. How are they going to pay for it? All 
have said the same thing.
  The 9 percent would be a burden if it is not passed very, very quick. 
Those retirements have to come very early in the fiscal year, or they 
are going to have difficulty paying for it by the 9 percent because the 
agencies are going to have to come up with a 9-percent payment. So, if 
they can have a savings early in the year, and it is getting very close 
right now to where it would probably--those agencies would have to come 
back in for a supplemental. So, if we do it right away, we can avoid 
the necessity of having a supplemental appropriation request from the 
various agencies who will have a number of employees that will take 
advantage.
  They also say that expected retirements have been delayed. People 
they thought probably would retire are waiting to see what this program 
is going to do, so the consequences are they are carrying people on the 
payroll. They would not have to if we soon get this passed. So I think 
this is a very fair compromise. I hope the other body will accept this.
  I think that we have to compliment a lot of people, but particularly 
the gentleman from Missouri [Mr. Clay] and the gentleman from Maryland 
[Mr. Hoyer]. We thank them for their help in working out this 
compromise and just hope it works.
  Mr. CLAY. Mr. Speaker, I thank the gentleman from Indiana [Mr. Myers] 
for his work on this measure. He has been very helpful to us.
  Mr. Speaker, I yield such time as he may consume to the gentleman 
from Indiana [Mr. McCloskey].
  (Mr. McCLOSKEY asked and was given permission to revise and extend 
his remarks.)
  Mr. McCLOSKEY. Mr. Speaker, I rise in support of the compromise.
  Mr. Speaker, total chaos will prevail in the Federal Government if 
the deadlock on the Federal Workforce Restructuring Act--H.R. 3345--is 
not broken. Last month, the House passed with bipartisan support H.R. 
3345 to provide buyouts to Federal workers after a hearing on the 
restructuring of the Federal Government at which an unprecedented 15 
Federal agencies testified about the dire need to approve separation 
incentive payments. The agencies all testified that without this 
legislation reductions in force [RIF] would occur in the Federal 
Government, and their effect would be devastating.
  Following House action, the Senate passed a significantly different 
version of H.R. 3345. Since then, because of the deadlock between the 
House and Senate, agencies have already begun to announce that RIF's 
will occur. The Office of Personnel Management has sent out RIF notices 
to 523 employees, and it is possible that RIF's also will happen at 
NASA and in the Department of the Interior.
  When the Senate passed H.R. 3345, their amendment rendered it useless 
for this fiscal year. The amendment also made it difficult in the 
future for agencies to offer the incentive by increasing the amount of 
the employee's salary agencies must pay into the retirement fund from 9 
percent to 26 percent. Because of these changes, the Senate bill simply 
will not prevent RIF's in the Federal Government.
  The Clay compromise is a well thought out bill that retains the 
original language requiring agencies to pay only 9 percent of the 
employee's salary into the civil service retirement fund. To fund the 
$519 million in direct spending cost that the Senate requires must be 
paid, the Clay compromise proposes all executive branch agencies pay 
$80 per year to the civil service retirement fund for each active 
employee who participates in FERS or CSRS for fiscal years 1995 through 
1998.
  Unlike the Senate bill which mandates the savings from reducing the 
size of the work force be used to fund the crime bill, the Clay bill 
does not specify how the bill's savings should be used. This should not 
be part of the buyout debate, and should be considered in the context 
of anticrime legislation. The Clay compromise allows the House to 
complete its consideration of the crime bill before any funding 
mechanisms are considered.
  I want to stress again that without this legislation, RIF's will 
occur in the Federal Government and in many congressional districts. 
For those of my colleagues who are unclear about RIF's, RIF's are 
another term for layoffs, and are used to reduce Federal employment by 
allowing more senior employees to bump more junior employees from their 
positions. They are time consuming, costly, demoralizing to the work 
force, provide little benefit to an agency or an employee, hamper 
productivity, and wreak havoc on the diversity of the workplace.
  I urge my colleagues to support this legislation. It will be a 
travesty to the American taxpayer if buyout authority fails.
  Mr. CLAY. Mr. Speaker, I yield 2 minutes to the gentlewoman from the 
District of Columbia [Ms. Norton].

                              {time}  1230

  Ms. NORTON. Mr. Speaker, this is the second time on the floor for 
H.R. 3345, and we're coming in just under the wire if chaotic layoffs 
are not to replace planned buyouts. To their credit, the minority in 
this body understood that nothing should stand in the way of a $22 
billion savings this buyout bill gives the Government. Imitating the 
private sector and adopting a cardinal market rule, we voted to invest 
$519 million up front to reap a dividend of $22 billion. Since there 
are no free lunches, the huge return on this investment seemed 
especially generous.
  It took the other body longer to get it, but with the skilled 
leadership of Chairman Clay, it looks as if we may finally have an 
irresistible deal. On buyouts, however, the chickens have tended to 
hatch prematurely, so all fingers are naturally crossed.
  I certainly hope it will not be too late for 520 OPM employees who 
got layoff--reductions-in-force or RIF--notices 1 week ago. If OPM acts 
immediately with sufficient management skill, the agency can surely 
turn around at least some of those layoff notices.
  The creative and uncomplicated Clay compromise has paved the way for 
resolution of a stalemate that has almost derailed buyout legislation. 
Without this bill, of course, all of the other savings--billions more 
than the buyout personnel savings--will be lost as well. This is 
because the NPR depends on a reduction of employees in order to 
accomplish the extensive revision and rearrangement of Government 
functions that is at the heart of the Gore proposals to reinvent 
Government itself. Finally, when H.R. 3345 travels to the Senate it 
must be allowed to stand on its own. Surely Federal employees deserve 
an up and down vote on buyouts alone. We have kept Federal workers 
waiting too long already.
  Mr. MYERS of Indiana. Mr. Speaker, I yield such time as she may 
consume to the gentlewoman from Maryland [Mrs. Morella], a very valued 
member of this committee who has worked very hard on this issue as well 
because she does have a great many Federal employees.
  Mrs. MORELLA. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  Mr. Speaker, I simply want to indicate that it is about time we make 
the kind of inroads necessary on this buyout bill. In the proposal 
before us for the budget, there is a reduction of Federal employees to 
the tune of 118,000 through 1995, and if we do not pass this bill, the 
Clay compromise, as we call it, then we are going to have to RIF--
reduction in force--those people who were last hired. It is going to 
end up being women and minorities. They are not going to be the middle-
management people, as the reinvent Government proposal had devised. So 
it is going to defeat the purpose completely.
  Although the Clay compromise may not be perfect, it is the very best 
we can do at this time. I know that Chairman Clay has worked very hard 
on it so we would have something in a timely manner. There is nothing 
else we can do, with the adamancy that we see on the other side, except 
to pass this bill.
  Mr. Speaker, I want to congratulate Chairman Clay and our ranking 
member, the gentleman from Indiana [Mr. Myers]. We have all worked 
together on this in our committee to come up with something that would 
be workable. So I ask this House to approve the Clay compromise.
  Mr. MYERS of Indiana. Mr. Speaker, I thank the gentlewoman from 
Maryland [Mrs. Morella] for her comments and for her contribution in 
making this a reality today, and I yield back the balance of my time.
  Mr. MFUME. Mr. Speaker, I rise today in strong support of the 
legislation before us and urge its immediate passage as well as it's 
swift enactment into law.
  As we all know, within the last month different versions of the bill 
before us have passed both the House and the Senate. Today we have yet 
a third version, a compromise version, which, like the other version 
that passed this House is a fiscally responsible and humane answer to a 
difficult question.
  The fact of the matter is that both the administration and Congress 
have committed themselves to reducing the Federal work force by 252,000 
people. The question we are, therefore, faced with is how to achieve 
this goal in a fiscally responsible manner that will enable the Federal 
agencies to downsize in a cohesive and efficient manner while, at the 
same time, being sensitive to the needs of Federal employees.
  Like its predecessor the bill before us meets all of these goals and, 
for that reason that it has enjoyed strong bipartisan support in both 
bodies.
  As we all know, the alternative to this legislation is reductions in 
force, or RIF's. RIF's are not only fiscally undesirable, but they also 
result in agencies being unable to reduce their personnel numbers in a 
cohesive and management-efficient manner. Furthermore, as illustrated 
by a recent report by the General Accounting Office, RIF's result in a 
disproportionate number of blacks and minorities being dismissed.
  Mr. Speaker, colleagues, as I said earlier I strongly support this 
legislation and I urge its swift enactment. The longer we wait the more 
likely RIF's will be and the less money that is ultimately saved by the 
Federal Government. This legislation is not perfect, but it's a 
responsible answer to a difficult question.
  Mr. CLAY. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Klink). The question is on the motion 
offered by the gentleman from Missouri [Mr. Clay] that the House 
suspend the rules and agree to the resolution, House Resolution 380.
  The question was taken, and (two-thirds having voted in favor 
thereof) the rules were suspended and the resolution was agreed to.
  A motion to reconsider was laid on the table.

                          ____________________