[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.
____________________