[Congressional Record Volume 146, Number 68 (Tuesday, June 6, 2000)]
[Senate]
[Pages S4568-S4570]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. VOINOVICH (for himself and Mr. DeWine):
  S. 2674. A bill to amend title 5, United States Code to provide for 
realignment of the Department of Defense workforce; to the Committee on 
Governmental Affairs.


  the department of defense civilian workforce realignment act of 2000

 Mr. VOINOVICH. Mr. President, the Federal Government is facing 
a little-known, yet serious problem that jeopardizes its ability to 
provide services to the American people--a crisis in human capital. The 
federal workforce has endured years of downsizing, hiring freezes, and 
inadequate investment in the dedicated men and women who comprise the 
federal civil service. As a result, the Federal Government is ill-
equipped to compete with the private sector for a new generation of 
technology-savvy workers to replace the nearly 900,000 ``baby boomers'' 
who will be eligible for retirement from the civil service in the next 
5 years.
  To meet that challenge, I rise today to introduce legislation, along 
with my friend and colleague from Ohio, Senator Mike DeWine, that will 
help one critical department of our Federal Government--the Department 
of Defense--get a head start in addressing its future workforce needs. 
Our bill, the ``Department of Defense Civilian Workforce Realignment 
Act of 2000,'' provides the Department of Defense with greater 
flexibility to adequately manage its civilian workforce and align its 
human capital to meet the demands of the post-cold-war environment.
  During the last decade, the Department of Defense underwent a massive 
civilian workforce downsizing program that saw a cut of more than 
280,000 positions. In addition, the Defense Department--like other 
federal departments--was subject to hiring restrictions. Taken 
together, these two factors have inhibited the development of mid-level 
career, civilian professionals; the men and women who serve a vital 
role in the management and development of our nation's military. The 
extent of this problem is exhibited in the fact that right now, the 
Department is seriously understaffed in certain key occupations, such 
as computer experts and foreign language specialists. The lack of such 
professionals has the potential to affect the Defense Department's 
ability to respond effectively and rapidly to military threats to our 
nation.
  The need to address the pending human capital crisis in the federal 
workforce is increasingly apparent, as more and more leaders 
acknowledge that our past policies did not consider future federal 
workforce needs. Indeed, in testimony before the Oversight of 
Government Management Subcommittee, which I chair, the head of the 
General Accounting Office, Comptroller General David Walker, stated, 
``(I)n cutting back on the hiring of new staff in order to reduce the 
number of their employees, agencies also reduced the influx of new 
people with the new competencies needed to sustain excellence.''
  The bill that Senator DeWine and I are introducing today will help 
respond to these concerns by giving the Department of Defense the 
assistance it needs to shape the ``skills mix'' of the current 
workforce in order to address shortfalls brought about by years of 
downsizing. Our bill will also help the Department meet its needs for 
new skills in emerging technological and professional areas.
  Another area of concern for the Department of Defense--as well as 
many other federal agencies--is the serious demographic challenges that 
exist in its workforce. The average Defense Department employee is 45 
years old, and more than a third of the Department's workforce is age 
51 or older. In the Department of the Air Force, for example, 45 
percent of the workforce will be eligible for either regular retirement 
or early retirement by 2005.
  Wright-Patterson Air Force Base in Dayton, OH, is an excellent 
example of the demographic challenge facing military installations 
across the country. Wright-Patterson is the headquarters of the Air 
Force Materiel Command, and employs 22,700 civilian federal workers. By 
2005, 60 percent of the Base's civilian workforce will be eligible for 
either regular retirement or early retirement. Although a mass exodus 
of all retirement-eligible employees is not anticipated, there is a 
genuine concern that a significant portion of the Wright-Patterson 
civilian workforce, including hundreds of key leaders and employees 
with crucial expertise, could decide to retire, leaving the remaining 
workforce without experienced leadership and absent essential 
institutional knowledge.
  This combination of factors poses a serious challenge to the long-
term effectiveness of the civilian component of the Defense Department, 
and by implication, the national security of the United States.
  Military base leaders, and indeed the entire Defense establishment, 
need to be given the flexibility to hire new employees so they can 
begin to develop another generation of civilian leaders and employees 
who will be able to provide critical support to our men and women in 
uniform.
  That is the purpose of the legislation we are introducing today. The 
Department of Defense Civilian Workforce Realignment Act addresses the 
current imbalance between the federal workforce and the skills needed 
to run the Federal Government in the 21st century, as well as the age 
imbalance between new employees and the potential mass retirement of 
senior public employees in the next 5 years. If we wait for this 
``retirement bubble'' to burst before we begin to hire new employees, 
then not only will we be woefully understaffed in a number of key 
areas, but we will have fewer seasoned individuals left in the federal 
workforce who can provide training and mentoring.
  The provisions in our bill will allow the Defense Department to 
conduct a smoother transition by bringing new employees into the 
Department over

[[Page S4569]]

the next 5 years. The new employees will have the opportunity to work 
with and learn from their more experienced colleagues, and invaluable 
institutional knowledge will be passed along.
  While this proposal does not address all of the human capital needs 
of the Defense Department, it will help ensure that the Department of 
Defense recruits and retains a quality civilian workforce so that our 
Armed Forces may remain the best in the world. It is extremely 
important to the future vitality of the Department's civilian workforce 
and the national security of the United States that we address the 
human capital crisis while we have the opportunity. I urge my 
colleagues to support this legislation.
  Thank you, Mr. President. I ask unanimous consent that the bill be 
printed in full in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2674

       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 ``Department of Defense 
     Civilian Workforce Realignment Act of 2000''.

     SEC. 2. EXTENSION OF AUTHORITY FOR VOLUNTARY SEPARATIONS IN 
                   REDUCTIONS IN FORCE.

       Section 3502(f)(5) of title 5, United States Code, is 
     amended by striking ``September 30, 2001'' and inserting 
     ``September 30, 2005''.

     SEC. 3. EXTENSION, REVISION, AND EXPANSION OF AUTHORITIES FOR 
                   USE OF VOLUNTARY SEPARATION INCENTIVE PAY AND 
                   VOLUNTARY EARLY RETIREMENT.

       (a) Extension of Authority.--Subsection (e) of section 5597 
     of title 5, United States Code, is amended by striking 
     ``September 30, 2003'' and inserting ``September 30, 2005''.
       (b) Revision and Addition of Purposes for Department of 
     Defense VSIP.--Subsection (b) of such section is amended by 
     inserting after ``transfer of function,'' the following: 
     ``restructuring of the workforce (to meet mission needs, to 
     achieve one or more strength reductions, to correct skill 
     imbalances, or to reduce the number of high-grade, 
     managerial, or supervisory positions),''.
       (c) Installment Payments.--Subsection (d) of such section 
     is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) shall be paid in a lump-sum or in installments;'';
       (2) by striking ``and'' at the end of paragraph (3);
       (3) by striking the period at the end of paragraph (4) and 
     inserting ``; and''; and
       (4) by adding at the end the following:
       ``(5) if paid in installments, shall cease to be paid upon 
     the recipient's acceptance of employment by the Federal 
     Government as described in subsection (g)(1).''.

     SEC. 4. DEPARTMENT OF DEFENSE EMPLOYEE VOLUNTARY EARLY 
                   RETIREMENT AUTHORITY.

       (a) Civil Service Retirement System.--Section 8336 of title 
     5, United States Code, is amended--
       (1) in subsection (d)(2), by inserting ``except in the case 
     of an employee described in subsection (o)(1),'' after 
     ``(2)''; and
       (2) by adding at the end the following:
       ``(o)(1) An employee of the Department of Defense who, 
     before October 1, 2005, is separated from the service after 
     completing 25 years of service or after becoming 50 years of 
     age and completing 20 years of service is entitled to an 
     immediate annuity under this subchapter if the employee is 
     eligible for the annuity under paragraph (2) or (3).
       ``(2)(A) An employee referred to in paragraph (1) is 
     eligible for an immediate annuity under this paragraph if the 
     employee--
       ``(i) is separated from the service involuntarily other 
     than for cause; and
       ``(ii) has not declined a reasonable offer of another 
     position in the Department of Defense for which the employee 
     is qualified, which is not lower than 2 grades (or pay 
     levels) below the employee's grade (or pay level), and which 
     is within the employee's commuting area.
       ``(B) For the purposes of paragraph (2)(A)(i), a separation 
     for failure to accept a directed reassignment to a position 
     outside the commuting area of the employee concerned or to 
     accompany a position outside of such area pursuant to a 
     transfer of function may not be considered to be a removal 
     for cause.
       ``(3) An employee referred to in paragraph (1) is eligible 
     for an immediate annuity under this paragraph if the employee 
     satisfies all of the following conditions:
       ``(A) The employee is separated from the service 
     voluntarily during a period in which the organization within 
     the Department of Defense in which the employee is serving is 
     undergoing a major organizational adjustment, as determined 
     by the Secretary of Defense.
       ``(B) The employee has been employed continuously by the 
     Department of Defense for more than 30 days before the date 
     on which the head of the employee's organization requests the 
     determinations required under subparagraph (A).
       ``(C) The employee is serving under an appointment that is 
     not limited by time.
       ``(D) The employee is not in receipt of a decision notice 
     of involuntary separation for misconduct or unacceptable 
     performance.
       ``(E) The employee is within the scope of an offer of 
     voluntary early retirement, as defined on the basis of one or 
     more of the following objective criteria:
       ``(i) One or more organizational units.
       ``(ii) One or more occupational groups, series, or levels.
       ``(iii) One or more geographical locations.
       ``(iv) Any other similar criteria that the Secretary of 
     Defense determines appropriate.
       ``(4) The determinations necessary for establishing the 
     eligibility of a person for an immediate annuity under 
     paragraph (2) or (3) shall be made in accordance with 
     regulations prescribed by the Secretary of Defense.
       ``(5) In this subsection, the term `major organizational 
     adjustment' means any of the following:
       ``(A) A major reorganization.
       ``(B) A major reduction in force.
       ``(C) A major transfer of function.
       ``(D) A workforce restructuring--
       ``(i) to meet mission needs;
       ``(ii) to achieve one or more reductions in strength;
       ``(iii) to correct skill imbalances; or
       ``(iv) to reduce the number of high-grade, managerial, 
     supervisory, or similar positions.''.
       (b) Federal Employees' Retirement System.--Section 8414 of 
     such title is amended--
       (1) in subsection (b)(1)(B), by inserting ``except in the 
     case of an employee described in subsection (d)(1),'' after 
     ``(B)''; and
       (2) by adding at the end the following:
       ``(d)(1) An employee of the Department of Defense who, 
     before October 1, 2005, is separated from the service after 
     completing 25 years of service or after becoming 50 years of 
     age and completing 20 years of service is entitled to an 
     immediate annuity under this subchapter if the employee is 
     eligible for the annuity under paragraph (2) or (3).
       ``(2)(A) An employee referred to in paragraph (1) is 
     eligible for an immediate annuity under this paragraph if the 
     employee--
       ``(i) is separated from the service involuntarily other 
     than for cause; and
       ``(ii) has not declined a reasonable offer of another 
     position in the Department of Defense for which the employee 
     is qualified, which is not lower than 2 grades (or pay 
     levels) below the employee's grade (or pay level), and which 
     is within the employee's commuting area.
       ``(B) For the purposes of paragraph (2)(A)(i), a separation 
     for failure to accept a directed reassignment to a position 
     outside the commuting area of the employee concerned or to 
     accompany a position outside of such area pursuant to a 
     transfer of function may not be considered to be a removal 
     for cause.
       ``(3) An employee referred to in paragraph (1) is eligible 
     for an immediate annuity under this paragraph if the employee 
     satisfies all of the following conditions:
       ``(A) The employee is separated from the service 
     voluntarily during a period in which the organization within 
     the Department of Defense in which the employee is serving is 
     undergoing a major organizational adjustment, as determined 
     by the Secretary of Defense.
       ``(B) The employee has been employed continuously by the 
     Department of Defense for more than 30 days before the date 
     on which the head of the employee's organization requests the 
     determinations required under subparagraph (A).
       ``(C) The employee is serving under an appointment that is 
     not limited by time.
       ``(D) The employee is not in receipt of a decision notice 
     of involuntary separation for misconduct or unacceptable 
     performance.
       ``(E) The employee is within the scope of an offer of 
     voluntary early retirement, as defined on the basis of one or 
     more of the following objective criteria:
       ``(i) One or more organizational units.
       ``(ii) One or more occupational groups, series, or levels.
       ``(iii) One or more geographical locations.
       ``(iv) Any other similar criteria that the Secretary of 
     Defense determines appropriate.
       ``(4) The determinations necessary for establishing the 
     eligibility of a person for an immediate annuity under 
     paragraph (2) or (3) shall be made in accordance with 
     regulations prescribed by the Secretary of Defense.
       ``(5) In this subsection, the term `major organizational 
     adjustment' means any of the following:
       ``(A) A major reorganization.
       ``(B) A major reduction in force.
       ``(C) A major transfer of function.
       ``(D) A workforce restructuring--
       ``(i) to meet mission needs;
       ``(ii) to achieve one or more reductions in strength;
       ``(iii) to correct skill imbalances; or
       ``(iv) to reduce the number of high-grade, managerial, 
     supervisory, or similar positions.''.
       (c) Conforming Amendments.--(1) Section 8339(h) of such 
     title is amended by striking out ``or ( j)'' in the first 
     sentence and inserting ``( j), or (o)''.
       (2) Section 8464(a)(1)(A)(i) of such title is amended by 
     striking out ``or (b)(1)(B)'' and ``, (b)(1)(B), or (d)''.
       (d) Effective Date; Applicability.--The amendments made by 
     this section--
       (1) shall take effect on October 1, 2000; and
       (2) shall apply with respect to an approval for voluntary 
     early retirement made on or after that date.

[[Page S4570]]

     SEC. 5. RESTRICTIONS ON PAYMENTS FOR ACADEMIC TRAINING.

       (a) Sources of Postsecondary Education.--Subsection (a) of 
     section 4107 of title 5, United States Code, is amended--
       (1) by striking ``or'' at the end of paragraph (1);
       (2) by striking the period at the end of paragraph (2) and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(3) any course of postsecondary education that is 
     administered or conducted by an institution not accredited by 
     a national or regional accrediting body (except in the case 
     of a course or institution for which standards for 
     accrediting do not exist or are determined by the head of the 
     employee's agency as being inappropriate), regardless of 
     whether the course is provided by means of classroom 
     instruction, electronic instruction, or otherwise.''.
       (b) Waiver of Restriction on Degree Training.--Subsection 
     (b)(1) of such section is amended by striking ``if 
     necessary'' and all that follows through the end and 
     inserting ``if the training provides an opportunity for an 
     employee of the agency to obtain an academic degree pursuant 
     to a planned, systematic, and coordinated program of 
     professional development approved by the head of the 
     agency.''.
       (c) Conforming and Clerical Amendments.--The heading for 
     such section is amended to read as follows:

     ``Sec. 4107. Restrictions''.

       (3) The item relating to such section in the table of 
     sections at the beginning of chapter 41 of title 5, United 
     States Code, is amended to read as follows:

``4107. Restrictions.''.

     SEC. 6. STRATEGIC PLAN.

       (a) Requirement for Plan.--Not later than six months after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall submit to the appropriate committees of 
     Congress a strategic plan for the exercise of the authorities 
     provided or extended by the amendments made by this Act. The 
     plan shall include an estimate of the number of Department of 
     Defense employees that would be affected by the uses of 
     authorities as described in the plan.
       (b) Consistency With DoD Performance and Review Strategic 
     Plan.--The strategic plan submitted under subsection (a) 
     shall be consistent with the strategic plan of the Department 
     of Defense that is in effect under section 306 of title 5, 
     United States Code.
       (c) Appropriate Committees.--For the purposes of this 
     section, the appropriate committees of Congress are as 
     follows:
       (1) The Committee on Armed Services and the Committee on 
     Governmental Affairs of the Senate.
       (2) The Committee on Armed Services and the Committee on 
     Government Reform of the House of Representatives.

  Mr. DeWINE. Mr. President, today Senator Voinovich and I are 
introducing the Department of Defense Civilian Workforce Realignment 
Act of 2000. This legislation is designed to give the Department of 
Defense some of the administrative flexibility it needs to shape the 
civilian workforce to meet the tremendous national defense challenges 
that face our nation well into this century.
  My colleague from Ohio and I, along with our Ohio colleagues in the 
House, Mr. Hobson and Mr. Hall have been working on this issue for 
almost two years. What has fostered this bipartisan unity is the 
current workforce situation at Wright-Patterson Air Force Base in 
Dayton, Ohio. What we have seen there is a rather large microcosm of a 
current and growing problem that affects the civilian workforce 
throughout our defense infrastructure. At Wright-Patterson, this 
problem threatens to diminish significantly the pool of talented 
experts in critical research and development fields. As I have often 
said, Wright-Patterson is the brain power behind our air power, and is 
the central reason why our Air Force is second to none in technological 
and aeronautical superiority.
  Wright-Patterson has already lost a significant number of people who 
constituted that brain power as a result of Cold War downsizing. In the 
last decade alone, 8,000 positions at Wright-Patterson have been lost. 
For the entire Department of Defense, approximately 280,000 positions 
were lost during the same period. At the same time we were downsizing, 
hiring restrictions prevented the Defense Department from establishing 
a foundation of younger innovators. In short, the combination of 
downsizing, retirement, and a hiring freeze has left a shallow talent 
pool of young skilled workers.
  The statistics tell the story. Today, for example, nearly one out of 
10 civilian workers at Wright-Patterson's Aeronautical Systems Center 
are under the age of 35, while more than one-third of the workforce is 
over the age of 50. In less than five years, more than half of this 
workforce will be eligible for retirement, but only 2.5 percent will be 
under the age of 35. This trend is typical for all civilian functions 
at Wright-Patterson.
  The Department of Defense Civilian Workforce Realignment Act would 
extend, revise and expand the Defense Department's limited authority to 
use voluntary incentive pay and voluntary early retirement. Our bill 
would allow for the Department to utilize the added authority to 
restructure the civilian workforce to meet missions needs and to 
correct skill imbalances. Given the significant numbers of eligible 
federal retirees the Department will face in just a few short years, 
this legislation would give the Department the ability to better manage 
this extraordinary transition period. Just as important, this smoother 
transition period would allow for better and more effective development 
of our younger workers, who will have a better chance to learn and gain 
from the expertise of the older generation of innovators.
  The legislation we are introducing, fundamentally for Wright-
Patterson Air Force Base, is about maintaining technological 
superiority. That superiority is the foundation of future Air Force 
dominance in the skies. It's that simple. Weakening that foundation 
places the lives of our pilots and the security of our nation at risk. 
Our legislation is a positive step toward rebuilding and strengthening 
that foundation with an investment in those who will make tomorrow's 
discoveries and breakthroughs that will keep our pilots safe and our 
nation secure.
  I am pleased that the Department of the Air Force and the Department 
of Defense have expressed the need for workforce realignment 
legislation. I believe the legislation Senator Voinovich and I are 
introducing today will meet the concerns they have expressed not just 
to us, but also to other members of the House and Senate.
  I want to thank Senator Voinovich for his efforts and leadership on 
his legislation, and also want to extend my appreciation to his staff, 
especially Aric Newhouse and Andrew Richardson, for their hard work. 
The Miami Valley community also has been of great help in demonstrating 
the importance of this issue not just to Wright-Patterson but also to 
the entire region and the nation.
  I urge my colleagues to support this legislation.
                                 ______