[Congressional Record Volume 145, Number 107 (Tuesday, July 27, 1999)]
[Senate]
[Pages S9382-S9384]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SARBANES (for himself, Ms. Mikulski, Mr. Warner, Mr. Robb, 
        and Mr. Akaka):
  S. 1441. A bill to amend chapters 83 and 84 of title 5, United States 
Code, to modify employee contributions to the Civil Service Retirement 
System and the Federal Employees Retirement System to the percentages 
in effect before the statutory temporary increase in calendar year 
1999, and for other purposes; to the Committee on Governmental Affairs.


         federal employee retirement contributions act of 1999

  Mr. SARBANES. Mr. President, I am pleased to join with my colleagues, 
Senators Mikulski, Warner, Robb and Akaka, in introducing the Federal 
Employee Retirement Contributions Act of 1999. This bill would return 
Federal employee retirement contribution rates to their 1998 levels, 
effective January 1st, 2000.

[[Page S9383]]

  Mr. President, in the 1997 Budget Reconciliation bill, as part of the 
deficit reduction effort, Congress enacted temporary increases in 
Federal employee retirement contribution rates. In order to meet its 
fiscal year 1998 reconciliation instructions, the Governmental Affairs 
Committee reluctantly agreed to phased-in, temporary increases in 
employee retirement payments of .5 percent through December 31, 2002.
  The 1997 provision effectively takes retirement contribution rates 
under the Civil Service Retirement System (CSRS) from 7 percent to 7.5 
percent and under the Federal Employee Retirement System (FERS) from .8 
percent to 1.3 percent. Rates are to return to 7 percent and .8 percent 
respectively in 2003.
  Mr. President, the sole rationale for this additional tax on Federal 
employee income in 1997 was to achieve deficit reduction. It is 
important to point out that Federal employees received no additional 
benefits from their increased contributions. Thus, the size of a 
Federal employee's retirement annuity is not greater because of their 
increased contributions. Instead, these contribution increases were 
merely one of several measures included in the Balanced Budget Act in 
order to raise revenues and reduce the deficit.
  The goal of deficit reduction is being realized, and after 30 years 
of spiraling deficits the economy is now strong and the budget has been 
balanced. With budget surpluses projected for the near future, the 
rationale for increasing Federal employees' retirement contribution is 
no longer valid.
  During the past weeks as tax cut proposals have begun moving in the 
Senate, I have worked to repeal the increased contributions as part of 
these proposals. While the Majority's tax cut packages would grant 
billions of dollars in tax relief over the next ten years, and even 
more in future years, the bill proposals fail to remove the burden that 
was placed on Federal employees under the Balanced Budget Act.
  Mr. President, if we are going to move forward with tax reduction 
proposals, it is my strong view that we should first make certain that 
Federal employees, who were singled out to bear an additional burden in 
the deficit reduction effort, are relieved of that burden. Federal 
employees should not be forced to continue to contribute more than 
their fair share, at a time when others are having their taxes reduced.
  As of January 1, 1999, half of the .5 percent increase (.25 percent) 
has already taken effect. Unless action is taken, an additional .15 
percent will be deducted from Federal employees' salaries for their 
retirement on January 1, 2000, followed by .10 percent more in 2001. In 
these times of strong economic growth, Federal workers should no longer 
be required to carry this additional burden.
  Federal employees were asked to make numerous sacrifices in order to 
contribute to our Nation's fiscal health. In addition to the increase 
in retirement contributions, the Federal Government has cut 
approximately 330,000 employees from its rolls and delayed statutory 
pay raises over the last several years. Certainly, these were 
substantial contributions to our country's economy and have helped us 
turn the corner toward the bright economic future that is now 
predicted. As we consider how to best utilize projected budget 
surpluses, we should first remove this burden from Federal employees 
who have already contributed so much. Repealing the increases in 
Federal employee retirement contributions is the fair thing to do.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1441

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Employee Retirement 
     Contributions Act of 1999''.

     SEC. 2. DEDUCTIONS, CONTRIBUTIONS, AND DEPOSITS.

       (a) Civil Service Retirement System.--The table under 
     section 8334(c) of title 5, United States Code, is amended--
       (1) in the matter relating to an employee by striking:

       

                                         ``7.4  January 1, 2000, to
                                                 December 31, 2000.
                                           7.5  January 1, 2001, to
                                                 December 31, 2002.
                                             7  After December 31,
                                                 2002.'';
 

     and inserting the following:

       

                                           ``7  After December 31,
                                                 1999.'';
 

       (2) in the matter relating to a Member or employee for 
     Congressional employee service by striking:

       

                                         ``7.9  January 1, 2000, to
                                                 December 31, 2000.
                                             8  January 1, 2001, to
                                                 December 31, 2002.
                                           7.5  After December 31,
                                                 2002.'';
 

     and inserting the following:

       

                                           ``7  After December 31,
                                                 1999.'';
 

       (3) in the matter relating to a Member for Member service 
     by striking:

       

                                         ``8.4  January 1, 2000, to
                                                 December 31, 2000.
                                           8.5  January 1, 2001, to
                                                 December 31, 2002.
                                             8  After December 31,
                                                 2002.'';
 

     and inserting the following:

       

                                           ``8  After December 31,
                                                 1999.'';
 

       (4) in the matter relating to a law enforcement officer for 
     law enforcement service and firefighter for firefighter 
     service by striking:

       

                                         ``7.9  January 1, 2000, to
                                                 December 31, 2000.
                                             8  January 1, 2001, to
                                                 December 31, 2002.
                                           7.5  After December 31,
                                                 2002.'';
 

     and inserting the following:

       

                                         ``7.5  After December 31,
                                                 1999.'';
 

       (5) in the matter relating to a bankruptcy judge by 
     striking:

       

                                         ``8.4  January 1, 2000, to
                                                 December 31, 2000.
                                           8.5  January 1, 2001, to
                                                 December 31, 2002.
                                             8  After December 31,
                                                 2002.'';
 

     and inserting the following:

       

                                           ``8  After December 31,
                                                 1999.'';
 

       (6) in the matter relating to a judge of the United States 
     Court of Appeals for the Armed Forces for service as a judge 
     of that court by striking:

       

                                         ``8.4  January 1, 2000, to
                                                 December 31, 2000.
                                           8.5  January 1, 2001, to
                                                 December 31, 2002.
                                             8  After December 31,
                                                 2002.'';
 

     and inserting the following:

       

                                           ``8  After December 31,
                                                 1999.'';
 

       (7) in the matter relating to a United States magistrate by 
     striking:

       

                                         ``8.4  January 1, 2000, to
                                                 December 31, 2000.
                                           8.5  January 1, 2001, to
                                                 December 31, 2002.
                                             8  After December 31,
                                                 2002.'';
 

     and inserting the following:

       

                                           ``8  After December 31,
                                                 1999.'';
 

       (8) in the matter relating to a Court of Federal Claims 
     judge by striking:

       

                                         ``8.4  January 1, 2000, to
                                                 December 31, 2000.
                                           8.5  January 1, 2001, to
                                                 December 31, 2002.
                                             8  After December 31,
                                                 2002.'';
 

     and inserting the following:

       

                                           ``8  After December 31,
                                                 1999.'';
 

       (9) in the matter relating to the Capitol Police by 
     striking:

       

                                         ``7.9  January 1, 2000, to
                                                 December 31, 2000.
                                             8  January 1, 2001, to
                                                 December 31, 2002.
                                           7.5  After December 31,
                                                 2002.''.
 

     and inserting the following:

       

                                         ``7.5  After December 31,
                                                 1999.'';
 

     and
       (10) in the matter relating to a nuclear material courier 
     by striking:

       

                                         ``7.9  January 1, 2000, to
                                                 December 31, 2000.

[[Page S9384]]

 
                                             8  January 1, 2001, to
                                                 December 31, 2002.
                                           7.5  After December 31,
                                                 2002.''.
 

     and inserting the following:

       

                                         ``7.5  After December 31,
                                                 1999.''.
 

       (b) Federal Employees' Retirement System.--Section 8422(a) 
     of title 5, United States Code, is amended by striking 
     paragraph (3) and inserting the following:
       ``(3) The applicable percentage under this paragraph for 
     civilian service shall be as follows:

       

``Employee............................       7  January 1, 1987, to
                                                 December 31, 1998.
                                          7.25  January 1, 1999, to
                                                 December 31, 1999.
                                             7  After December 31, 1999.
Congressional employee................     7.5  January 1, 1987, to
                                                 December 31, 1998.
                                          7.75  January 1, 1999, to
                                                 December 31, 1999.
                                           7.5  After December 31, 1999.
Member................................     7.5  January 1, 1987, to
                                                 December 31, 1998.
                                          7.75  January 1, 1999, to
                                                 December 31, 1999.
                                           7.5  After December 31, 1999.
Law enforcement officer, firefighter,      7.5  January 1, 1987, to
 member of the Capitol Police, or air            December 31, 1998.
 traffic controller.
                                          7.75  January 1, 1999, to
                                                 December 31, 1999.
                                           7.5  After December 31, 1999.
Nuclear materials courier.............       7  January 1, 1987, to the
                                                 day before the date of
                                                 enactment of the strom
                                                 Thurmond National
                                                 Defense Authorization
                                                 Act for Fiscal Year
                                                 1999.
                                          7.75  The date of enactment of
                                                 the Strom Thurmond
                                                 National Defense
                                                 Authorization Act for
                                                 Fiscal Year 1999 to
                                                 December 31, 1998.
                                          7.75  January 1, 1999, to
                                                 December 31, 1999.
                                           7.5  After December 31,
                                                 1999.''.
 

     SEC. 3. CONFORMING AMENDMENTS RELATING TO MILITARY AND 
                   VOLUNTEER SERVICE UNDER FERS.

       (a) Military Service.--Section 8422(e)(6) of title 5, 
     United States Code, is amended to read as follows:
       ``(6) The percentage of basic pay under section 204 of 
     title 37 payable under paragraph (1), with respect to any 
     period of military service performed during January 1, 1999, 
     through December 31, 1999, shall be 3.25 percent.''.
       (b) Volunteer Service.--Section 8422(f)(4) of title 5, 
     United States Code, is amended to read as follows:
       ``(4) The percentage of the readjustment allowance or 
     stipend (as the case may be) payable under paragraph (1), 
     with respect to any period of volunteer service performed 
     during January 1, 1999, through December 31, 1999, shall be 
     3.25 percent.''.

     SEC. 4. OTHER FEDERAL RETIREMENT SYSTEMS.

       (a) Central Intelligence Agency Retirement and Disability 
     System.--
       (1) Deductions, withholdings, and deposits.--Section 
     7001(c)(2) of the Balanced Budget Act of 1997 (Public Law 
     105-33; 111 Stat. 659) is amended to read as follows:
       ``(2) Individual deductions, withholdings, and deposits.--
     Notwithstanding section 211(a)(1) of the Central Intelligence 
     Agency Retirement Act (50 U.S.C. 2021(a)(1)) beginning on 
     January 1, 1999, through December 31, 1999, the percentage 
     deducted and withheld from the basic pay of an employee 
     participating in the Central Intelligence Agency Retirement 
     and Disability System shall be 7.25 percent.''.
       (2) Military service.--Section 252(h)(1)(A) of the Central 
     Intelligence Agency Retirement Act (50 U.S.C. 2082(h)(1)(A)), 
     is amended to read as follows:
       ``(h)(1)(A) Each participant who has performed military 
     service before the date of separation on which entitlement to 
     an annuity under this title is based may pay to the Agency an 
     amount equal to 7 percent of the amount of basic pay paid 
     under section 204 of title 37, United States Code, to the 
     participant for each period of military service after 
     December 1956; except, the amount to be paid for military 
     service performed beginning on January 1, 1999, through 
     December 31, 1999, shall be 7.25 percent of basic pay.''.
       (b) Foreign Service Retirement and Disability System.--
       (1) In general.--Section 7001(d)(2) of the Balanced Budget 
     Act of 1997 (Public Law 105-33; 111 Stat. 660) is amended by 
     striking subparagraphs (A) and (B) and inserting the 
     following:
       ``(A) In general.--Notwithstanding section 805(a)(1) of the 
     Foreign Service Act of 1980 (22 U.S.C. 4045(a)(1)), beginning 
     on January 1, 1999, through December 31, 1999, the amount 
     withheld and deducted from the basic pay of a participant in 
     the Foreign Service Retirement and Disability System shall be 
     7.25 percent.
       ``(B) Foreign service criminal investigators/inspectors of 
     the office of the inspector general, agency for international 
     development.--Notwithstanding section 805(a)(2) of the 
     Foreign Service Act of 1980 (22 U.S.C. 4045(a)(2)), beginning 
     on January 1, 1999, through December 31, 1999, the amount 
     withheld and deducted from the basic pay of an eligible 
     Foreign Service criminal investigator/inspector of the Office 
     of the Inspector General, Agency for International 
     Development participating in the Foreign Service Retirement 
     and Disability System shall be 7.75 percent.''.
       (2) Conforming amendment.--Section 805(d)(1) of the Foreign 
     Service Act of 1980 (22 U.S.C. 4045(d)(1)) is amended in the 
     table in the matter following subparagraph (B) by striking:

       

                                        ``January 1, 1970,             7
                                         through December 31,
                                         1998, inclusive.
                                         January 1, 1999,           7.25
                                         through December 31,
                                         1999, inclusive.
                                         January 1, 2000,            7.4
                                         through December 31,
                                         2000, inclusive.
                                         January 1, 2001,            7.5
                                         through December 31,
                                         2002, inclusive.
                                   After December 31, 2002    7''.
 

     and inserting the following:

       

                                        ``January 1, 1970,             7
                                         through December 31,
                                         1998, inclusive.
                                         January 1, 1999,           7.25
                                         through December 31,
                                         1999, inclusive.
                                         After December 31, 1999   7.''.
 

       (c) Foreign Service Pension System.--
       (1) In general.--Section 856(a)(2) of the Foreign Service 
     Act of 1980 (22 U.S.C. 4071e(a)(2)) is amended to read as 
     follows:
       ``(2) The applicable percentage under this subsection shall 
     be as follows:

       

                                         ``7.5  Before January 1, 1999.
                                          7.75  January 1, 1999, to
                                                 December 31, 1999.
                                           7.5  After December 31,
                                                 1999.''.
 

       (2) Volunteer service.--Section 854(c)(1) of the Foreign 
     Service Act of 1980 (22 U.S.C. 4071c(c)(1)) is amended by 
     striking all after ``volunteer service;'' and inserting 
     ``except, the amount to be paid for volunteer service 
     beginning on January 1, 1999, through December 31, 1999, 
     shall be 3.25 percent.''.

     SEC. 5. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall take 
     effect on December 31, 1999.
                                 ______