[Congressional Record Volume 141, Number 195 (Friday, December 8, 1995)]
[Extensions of Remarks]
[Pages E2320-E2321]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       FEDERAL EMPLOYEE SEPARATION INCENTIVE AND REEMPLOYMENT ACT

                                 ______


                           HON. FRANK R. WOLF

                              of virginia

                    in the house of representatives

                       Thursday, December 7, 1995

  Mr. WOLF. Mr. Speaker, today I introduced the Federal Employee 
Separation Incentive and Reemployment Act because of my concern about 
Federal Government downsizing and its impact on Federal employees. The 
Federal Government has a responsibility to its employees to make the 
transition to the private sector as easy as possible. Federal employees 
separated from employment should have a soft landing.
  Members should know that Federal employees are some of the most 
dedicated and hard working people around. The Federal employees I have 
had the pleasure of knowing and working with over the years have a 
unique sense of community and that is why they have chosen jobs in 
public service. Serving the needs of the American people is honorable 
and indispensable. However, as obsolete Government functions are phased 
out or new technology reduces the need for some positions, Federal 
employees will be displaced.
  Vice President Gore took the lead in 1993 in the downsizing and 
streamlining effort when he began his ``Reinventing Government'' 
initiative. As a result of the reinvention, the administration has 
reduced Federal employment by 

[[Page E 2321]]
about 160,000 jobs. This puts the administration on track to reach its 
goal of 272,900 job cuts by the year 1999. Furthermore, congressional 
efforts to eliminate, streamline, or reform outdated programs could 
accelerate or increase the numbers of Federal jobs lost. Reductions in 
the number of full time equivalents [FTE's] will displace a number of 
workers and reductions-in-force [RIF's] most likely will follow. All of 
the job cuts cannot be absorbed by retirements or attrition. Therefore, 
as the nation's largest employer, the Federal Government should be 
sensitive to its displaced employees and do what it can to ease their 
transition into the private sector--in other words, give them a soft 
landing.
  The Federal Employee Separation Incentive and Reemployment Act will 
provide temporary authority for the payment of retirement and 
separation incentives which will assist agencies reduce their workforce 
through attrition rather than RIF's. Buyouts, private sector 
reemployment training and relocation incentives, a job bank, and 
extention of health care and life insurance benefits will ease the 
Federal employee's transition out the Federal work force. This 
legislation will save the Government money because buyouts are less 
expensive than RIF's. A reduction in the number of RIF's will protect 
dwindling morale which adversely impacts on productivity. Finally and 
most importantly, this legislation will help the separated Federal 
employee make a smooth transition into the private sector.
  Mr. Speaker, this legislation is a combination of some new and old 
ideas. This legislation should serve as a starting point for more good 
ideas which I encourage Federal employee unions, groups, and 
associations to share with the Civil Service Subcommittee. Also, I call 
on the administration to put forth some suggestions about how to ease 
Federal employees' transition into the private sector. For instance, 
perhaps OPM should conduct job fairs around the country whereby OPM 
helps match experience and qualified separated Federal employees with 
private sector jobs.

  Mr. Speaker, I encourage our colleagues to cosponsor this important 
legislation, and I urge the chairman of the Government Reform and 
Oversight Subcommittee on Civil Service to hold hearings on this 
important legislation. This bill is a good government measure intended 
to help displaced Federal employees. While we may not be able to 
guarantee lifetime jobs to our dedicated Federal employees, we can help 
give them a soft landing.
  Mr. Speaker, the following is a brief description of the incentives 
and transition assistance included in the bill:

       (1) Incentive Payments for Employees Eligible for Immediate 
     Retirement.--This program would provide for incentive 
     payments to employees who voluntarily separate but who are 
     not eligible for an immediate annuity. These Voluntary 
     Separation Incentive Programs (VSIPs) are generally referred 
     to as buyouts. VSIPs may be paid only if they are necessary 
     to avoid or minimize the need for involuntary separations due 
     to a RIF, reorganization, transfer of function, or other 
     similar action.
       (2) Payments and Other Incentives for Employees Not 
     Eligible For Immediate Retirement.--This program gives an 
     incentive to Federal employees who are not eligible for 
     immediate retirement to find private sector employment by 
     providing an incentive payment to a Federal employee who 
     obtains private sector employment within six months after the 
     employee's voluntary separation. The incentive payment is 
     based on the amount of severance pay the employee would have 
     been entitled to in the case of an involuntary separation. 
     The sooner a former employee obtains reemployment, the 
     greater the amount of the reemployment incentive. 
     Specifically, the employee would receive 100 percent of his/
     her salary if he or she obtains private sector employment 
     within the first two months of separation. He/she would 
     receive 80 percent if the new employment commences within 
     three months, 60 percent in four months, 40 percent in five 
     months and 20 percent in six months.
       (3) Reemployment Incentives--Priority Placement Programs 
     for Federal Employees Affected by a Reduction-in-Force.--This 
     program codifies a Presidential order establishing a 
     government wide priority placement program. This program is 
     modeled after the successful Department of Defense priority 
     placement program. In essence, the program would provide a 
     system under which agencies will be required to fill 
     positions with displaced employees referred through the 
     program if the employee is qualified for the position. 
     Agencies would obtain employee names from a central inventory 
     of employees who have been RIFed or given notice that they 
     will be RIFed.
       (4) Non-Federal Employment Incentives--Retraining 
     Incentives.--Under this program, agencies may pay a 
     retraining incentive to non-Federal employers upon the 
     employee's completion of 12 months of continuous employment 
     by the non-Federal employer. This gives private sector 
     employers an incentive to hire displaced federal employees by 
     paying for a portion of the employee's retraining. Retraining 
     incentives shall not exceed $20,000.
       (5) Non-Federal Employment Incentives--Relocation 
     Incentives.--Under this program, agencies may pay a 
     relocation incentive to an eligible employee if it is 
     necessary for the employee to relocate in order to commence 
     employment with a non-Federal employer. Relocation incentives 
     shall not exceed $20,000.
       (6) Job Placement and Counseling Services.--Under this 
     program, agencies may establish a program to provide job 
     placement and counseling services to current and former 
     employees and their families. Services may include career and 
     personal counseling, training in job search skills, and job 
     placement assistance.
       (7) Extension of Life Insurance Benefits.--A federal 
     employee who is separated involuntarily or takes early 
     retirement may elect to continue his/her life insurance 
     coverage and pay both the employee's and agency contribution 
     share. Under current law he/she can not.
       (8) Extension of Health Insurance Benefits.--Current law 
     generally requires that retiring employees must have 
     participated in the Federal Employees Health Benefits Program 
     (FEHBP) for the five years preceding retirement in order to 
     continue their coverage as retirees. This new program directs 
     the Office of Personnel Management to waive the five-year 
     requirement for a federal employee who retires before October 
     1, 1999, and is eligible for an immediate annuity, provided 
     the individual is enrolled in the FEHBP on the date of 
     retirement.

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