[Congressional Record Volume 144, Number 98 (Tuesday, July 21, 1998)]
[Extensions of Remarks]
[Page E1362]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              FEDERAL RETIREMENT COVERAGE CORRECTIONS ACT

                                 ______
                                 

                               speech of

                            HON. BILL ARCHER

                                of texas

                    in the house of representatives

                         Monday, July 20, 1998

  Mr. ARCHER. Mr. Speaker, I rise in support of H.R. 3249, the 
``Federal Retirement Coverage Corrections Act''. H.R. 3249 seeks to 
correct errors in the retirement plan classifications of thousands of 
Federal workers. Without H.R. 3249, these unfortunately misclassified 
Federal employees may lose their retirement benefits through no fault 
of their own. I support prompt passage of H.R. 3249.
  Since H.R. 3249 involves issues related to the retirement benefits of 
Federal employees, it was initially considered by my colleagues on the 
Committee on Government Reform and Oversight. That Committee approved 
the bill with strong bipartisan support.
  The Committee on Ways and Means, considered H.R. 3249 because it 
raised issues relating to taxation and social security. The Ways and 
Means Committee also approved H.R. 3249 with bipartisan support on 
March 5, 1998, and filed its report today (H. Rept. 105-625, Part 2).
  The revenue provisions approved by the Ways and Means Committee, 
would provide that: (1) retirement plans would not lose their 
``qualified'' Federal tax status by making the corrections required by 
H.R. 3249, (2) participants whose retirement accounts were adjusted in 
accordance with H.R. 3249 would not incur Federal income tax liability, 
and (3) amounts transferred in accordance with H.R. 3249 would not be 
subject to employment taxes.
  The Social Security provisions approved by the Committee would 
provide that: (1) retroactive earnings would be credited and the Social 
Security Trust Funds would be made whole in situations where 
individuals change to one of the retirement systems that provides 
Social Security coverage, (2) necessary conforming changes would be 
made to the coverage provisions of the Social Security Act, and (3) the 
Commissioner of Social Security would have the authority to receive 
necessary information from agencies, notify the Secretary of the 
Treasury to transfer taxes paid as a result of elections under H.R. 
3249 to the Social Security Trust Funds, and to correct earnings 
records.
  To allow the misclassified Federal employees to receive their much 
deserved retirement benefits, I support the prompt approval of H.R. 
3249.

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