[Congressional Record Volume 148, Number 130 (Monday, October 7, 2002)]
[House]
[Pages H7056-H7058]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ALLOWING CERTAIN CATCH-UP CONTRIBUTIONS TO THRIFT SAVINGS PLAN
Mrs. MORELLA. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3340) to amend title 5, United States Code, to allow certain
catch-up contributions to the Thrift Savings Plan to be made by
participants age 50 or over, as amended.
The Clerk read as follows:
H.R. 3340
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. THRIFT SAVINGS PLAN CATCH-UP CONTRIBUTIONS.
(a) Civil Service Retirement System.--Paragraph (2) of
section 8351(b) of title 5, United States Code, is amended by
adding at the end the following:
``(C) Notwithstanding any limitation under this paragraph,
an eligible participant (as defined by section 414(v) of the
Internal Revenue Code of 1986) may make such additional
contributions to the Thrift Savings Fund as are permitted by
such section 414(v) and regulations of the Executive Director
consistent therewith.''.
(b) Federal Employees' Retirement System.--
(1) Provision applicable to employees generally.--
Subsection (a) of section 8432 of title 5, United States
Code, is amended by adding at the end the following:
``(3) Notwithstanding any limitation under this subsection,
an eligible participant (as defined by section 414(v) of the
Internal Revenue Code of 1986) may make such additional
contributions to the Thrift Savings Fund as are permitted by
such section 414(v) and regulations of the Executive Director
consistent therewith.''.
(2) Provision applicable to certain other individuals.--
Section 8440f of title 5, United States Code, is amended--
(A) by striking ``The maximum'' and inserting ``(a) The
maximum''; and
(B) by adding at the end the following:
``(b) Notwithstanding any limitation under this section, an
eligible participant (as defined by section 414(v) of the
Internal Revenue Code of 1986) may make such additional
contributions to the Thrift Savings Fund as are permitted by
such section 414(v) and regulations of the Executive Director
consistent therewith.''.
(c) Effective Date.--The amendments made by this section
shall take effect as of the earliest practicable date, as
determined by the Executive Director (appointed under section
8474(a) of title 5, United States Code) in regulations.
SEC. 2. REAUTHORIZATION OF MERIT SYSTEM PROTECTION BOARD AND
OFFICE OF SPECIAL COUNSEL.
(a) Merit Systems Protection Board.--Section 8(a)(1) of the
Whistleblower Protection Act of 1989 (5 U.S.C. 5509 note) is
amended by striking ``1998, 1999, 2000, 2001 and 2002'' and
inserting ``2003, 2004, 2005, 2006, and 2007''.
(b) Office of Special Counsel.--Section 8(a)(2) of the
Whistleblower Protection Act of 1989 (5 U.S.C. 5509 note) is
amended by striking ``1993, 1994, 1995, 1996, and 1997,'' and
inserting ``2003, 2004, 2005, 2006, and 2007''.
(c) Effective Date.--This section shall be effective as of
October 1, 2002.
SEC. 3. DISCLOSURE OF VIOLATIONS OF LAW; RETURN OF DOCUMENTS.
Section 1213(g) of title 5, United States Code, is
amended--
(1) in paragraph (1), by striking the last sentence; and
(2) by striking paragraph (3) and inserting the following:
``(3) If the Special Counsel does not transmit the
information to the head of the agency under paragraph (2),
the Special Counsel shall inform the individual of--
``(A) the reasons why the disclosure may not be further
acted on under this chapter; and
``(B) other offices available for receiving disclosures,
should the individual wish to pursue the matter further.''.
SEC. 4. CONTINUATION OF HEALTH BENEFITS COVERAGE FOR
INDIVIDUALS ENROLLED IN A PLAN ADMINISTERED BY
THE OVERSEAS PRIVATE INVESTMENT CORPORATION.
(a) Enrollment in Chapter 89 Plan.--For purposes of the
administration of chapter 89 of title 5, United States Code,
any period of enrollment under a health benefits plan
administered by the Overseas Private Investment Corporation
before the effective date of this Act shall be deemed to be a
period of enrollment in a health benefits plan under chapter
89 of such title.
(b) Continued Coverage.--
(1) In general.--Any individual who, as of the enrollment
eligibility date, is covered by a health benefits plan
administered by the Overseas Private Investment Corporation
may enroll in an approved health benefits plan described
under section 8903 or 8903a of title 5, United States Code--
(A) either as an individual or for self and family, if such
individual is an employee, annuitant, or former spouse as
defined under section 8901 of such title; and
(B) for coverage effective on and after such date.
(2) Individuals currently under continued coverage.--An
individual who, as of the enrollment eligibility date, is
entitled to continued coverage under a health benefits plan
administered by the Overseas Private Investment Corporation--
(A) shall be deemed to be entitled to continued coverage
under section 8905a of title 5, United States Code, for the
same period that would have been permitted under the plan
administered by the Overseas Private Investment Corporation;
and
(B) may enroll in an approved health benefits plan
described under section 8903 or 8903a of such title in
accordance with section 8905a of such title for coverage
effective on and after such date.
(3) Unmarried dependent children.--An individual who, as of
the enrollment eligibility date, is covered as an unmarried
dependent child under a health benefits plan
[[Page H7057]]
administered by the Overseas Private Investment Corporation
and who is not a member of family as defined under section
8901(5) of title 5, United States Code--
(A) shall be deemed to be entitled to continued coverage
under section 8905a of such title as though the individual
had ceased to meet the requirements for being considered an
unmarried dependent child under chapter 89 of such title as
of such date; and
(B) may enroll in an approved health benefits plan
described under section 8903 or 8903a of such title in
accordance with section 8905a for continued coverage
effective on and after such date.
(c) Transfers to the Employees Health Benefits Fund.--
(1) In general.--The Overseas Private Investment
Corporation shall transfer to the Employees Health Benefits
Fund established under section 8909 of title 5, United States
Code, amounts determined by the Director of the Office of
Personnel Management, after consultation with the Overseas
Private Investment Corporation, to be necessary to reimburse
the Fund for the cost of providing benefits under this
section not otherwise paid for by the individuals covered by
this section.
(2) Availability of funds.--The amounts transferred under
paragraph (1) shall be held in the Fund and used by the
Office in addition to amounts available under section
8906(g)(1) of title 5, United States Code.
(d) Administration and Regulations.--The Office of
Personnel Management--
(1) shall administer this section to provide for--
(A) a period of notice and open enrollment for individuals
affected by this section; and
(B) no lapse of health coverage for individuals who enroll
in a health benefits plan under chapter 89 of title 5, United
States Code, in accordance with this section; and
(2) may prescribe regulations to implement this section.
(e) Enrollment Eligibility Date.--For purposes of this
section, the term ``enrollment eligibility date'' means the
last day on which coverage under a health benefits plan
administered by the Overseas Private Investment Corporation
is available. Such date shall be determined by the Office of
Personnel Management in consultation with the Overseas
Private Investment Corporation.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
Maryland (Mrs. Morella) and the gentleman from Illinois (Mr. Davis)
each will control 20 minutes.
The Chair recognizes the gentlewoman from Maryland (Mrs. Morella).
General Leave
Mrs. MORELLA. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks on H.R. 3340.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from Maryland?
There was no objection.
Mrs. MORELLA. Mr. Speaker, I yield myself such time as I may consume.
I rise today to urge support for H.R. 3340. This is legislation that
will help ensure the retirement security and independence of many
Federal employees. Under the Economic Growth and Tax Relief
Reconciliation Act of 2001, employer-sponsored thrift plans, such as
private sector 401(k) plans and the TSP, may allow employees age 50 and
older to contribute additional money toward their retirement.
Due to the new law, an individual age 50 or older could put an
additional $1,000 next year into a pension plan in addition to regular
contributions allowed by law. The following year the extra contribution
would be $2,000. It would increase each year until the extra
contribution level was $5,000. Each year thereafter the investor could
put in an additional $5,000 on top of the regular contribution in a
pension plan.
However, employees are not automatically entitled to make catch-up
contributions. Private employers must amend their plan documents to
permit catch-up contributions. And, likewise, Congress must amend title
5 of the U.S. Code before Federal employees can make catch-up
contributions. H.R. 3340 makes the necessary changes to title 5 to
permit Federal employees to take advantage of this important
opportunity to improve their retirement security. The catch-up
provision is particularly justifiable for the Federal plan since the
TSP was not created by law until 1986. The catch-up contributions will
allow workers to make up for years when they were not employed, did not
contribute to their plan, or otherwise were unable to save. It is also
particularly beneficial for women who have returned to the workforce
after taking time away to raise families.
It is essential that we in Congress do as much as we can to foster
improved savings by enhancing private and public sector pension plans.
America has one of the lowest national savings rates among
industrialized countries. It has fallen steadily over the last 25
years, seriously jeopardizing Americans' security during what is
supposed to be their golden years. And even though Americans realize
that they should be saving more, half of all family heads in their late
50s possess less than $10,000 in net financial assets. With the
retirement of America's baby boomers approaching, Congress must help to
encourage Americans to save more.
So, Mr. Speaker, H.R. 3340 furthers our goal of helping Americans
increase their savings so they can provide a better retirement for
themselves and their families. In addition, H.R. 3340, as amended,
reauthorizes the U.S. Merit Systems Protection Board and the Office of
Special Counsel; and it would allow employees, retirees, and near
retirees of the Overseas Private Investment Corporation to enroll in
the Federal Employees Health Benefit Plan.
The Merit Systems Protection Board is an independent quasi-judicial
agency in the executive branch that adjudicates Federal employees'
appeals from certain serious disciplinary actions, including firing,
and Office of Personnel Management retirement decisions. The Board also
adjudicates cases brought by the Office of Special Counsel to enforce
the Hatch Act and laws against prohibited personnel practices,
including whistleblower cases. The amendment authorizes the Merit
Systems Protection Board through 2007.
The amendment also reauthorizes the Office of Special Counsel through
2007. The OSC is an independent Federal investigator and prosecutorial
agency. The OSC enforces the Hatch Act, and it litigates cases
involving prohibited personnel practices, including reprisal for
whistleblowing, before the Merit Systems Protection Board.
And, finally, Mr. Speaker, the amendment contains language that would
allow certain retirees and near retirees who are currently covered by a
health plan administered by OPIC to participate fully in the FEHBP.
That is the Federal Employee Health Benefit Plan. OPIC established a
separate health insurance plan outside the FEHBP in 1982. However,
since 1995 OPIC discontinued offering its separate plan due to a number
of problems in maintaining a separate health care plan. This language
resolves technical problems involving eligibility of retirees and near
retirees for coverage under FEHBP, and the administration supports this
legislation. I urge my colleagues to do the same. It may sound
complicated and not so exciting, but it is very critical for those
employees who would be involved in it and would be administered under
it.
Mr. Speaker, I reserve the balance of my time.
Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I
might consume.
Mr. Speaker, H.R. 3340, as amended, will enhance the retirement and
health benefits of Federal employees and ensure the continued operation
of two agencies that serve as guardians of the Federal merit systems.
The Economic Growth and Tax Relief Act, which became law last year,
made it possible for enrollees 50 years of age or older to contribute
an additional $1,000 a year to their private sector 401(k) plans. After
5 years with annual increases of $1,000, private sector employees will
be able to contribute an additional $5,000 a year to their 401(k)
plans. These changes did not apply to the Federal Government's
equivalent plan, the Thrift Savings Plan, or the TSP. This simply is
not fair.
H.R. 3340 would amend the Federal Employees Retirement System Act to
allow Federal employees, like their private sector counterparts, to
make additional contributions to their TSP. Federal employees who were
previously unable to contribute to their TSP would be able to catch up
by making additional contributions to their plan.
Another provision of the bill addresses the Overseas Private
Investment Corporation, OPIC. In the 1980's a number of Federal banking
agencies, including OPIC, established separate health insurance plans
outside of the Federal Employees Health Benefits Program. As health
care costs have increased, it has become too costly for OPIC to
maintain a separate health insurance plan. Under H.R. 3340, as
[[Page H7058]]
amended, the approximately 70 employees enrolled in OPIC's health
insurance plan would be allowed to transfer to the FEHBP. OPIC will
bear the costs associated with transfer.
Finally, this legislation would reauthorize the Merit Systems
Protection Board, MSPB, and the Office of Special Counsel, OSC.
Established in 1978 by the Civil Service Reform Act, MSPB's mission is
to ensure that Federal employees are protected against abuses by
Federal agency management, that executive branch agencies make
employment decisions in accordance with merit systems principles, and
that Federal merit systems are kept free of prohibited personnel
practices such as discrimination and coercion.
OSC is an independent Federal investigative prosecutorial agency. It
safeguards the merit system by protecting Federal employees and
applicants from prohibited personnel practices, especially reprisal for
whistleblowing. OSC also serves as a safe and secure channel for
Federal workers who wish to disclose violations of laws, gross
mismanagement or waste of funds, and abuse of authority. This
legislation will provide a variety of benefits for Federal employees,
and I urge its adoption.
Mr. Speaker, I reserve the balance of my time.
Mrs. MORELLA. Mr. Speaker, I reserve the balance of my time.
Mr. DAVIS of Illinois. Mr. Speaker, I am pleased to yield such time
as she may consume to the gentlewoman from the District of Columbia
(Ms. Norton).
Ms. NORTON. Mr. Speaker, I thank the gentleman for yielding time to
me.
At the time that we began work on this bill, the markets had not
imploded. This bill has assumed far greater importance since, and I
just want to spell out something of what it means. We are now living in
a country where people over 50 years of age have lost their shirts. The
catastrophic effects of the market on baby boomers and older people is
pouring out now in stories, in the newspapers about people going back
to work, about people selling their homes, and the rest of it. Do not
think that this does not apply as well to Federal employees.
Allowing us, those of us who work in the Federal Government, to catch
up, as it were, with what is already the case in the private sector
could not come at a more opportune time. In the first place, one does
not have to put their money into the traditional stock market. The TSP
is very conservative. They could put all of their money into bonds.
They could in fact decide that this might be an important way to make
up for some of the losses almost all of us have incurred in the market
over the past year, 18 months.
And what this means is very important. In the first year, in addition
to what someone already contributes, they can put in an additional
$1,000. The next year they can put in an additional $2,000, until of
course they reach $5,000 and then they will be able to contribute, as
private employees do, an additional $5,000 a year to the TSP.
The reason that this is important, it seems to me, for everybody but
especially for the employees to whom this is directed, employees 50 or
older, is that there is almost no way to even begin to make up for the
kinds of losses people have had, and people have got to begin thinking
through how do we do that. We do not want to say to what has become an
investment public, stop investing in anything, they could have happen
to them what has now happened to people in all ages and backgrounds.
They could lose it all. There are safe investments. We are very
fortunate that the TSP allows us to spread our investments, encourages
us to do so, and I believe that for those who are very numerous, and I
am sure are included among them are many government employees who want
to begin to reinvest, this opportunity to reinvest in more conservative
investments will be a very welcome opportunity. At the very least, it
would be unconscionable to leave those in the public sector, the
Federal sector behind what we ourselves have already granted to those
in the private sector.
So I appreciate that the gentlewoman has brought this bill forward, a
bill we worked very hard on and, fortuitously, a bill which I think
will be appreciated more than when the bill was originally in
committee.
{time} 1530
Mrs. MORELLA. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, as I said earlier, H.R. 3340 with the amendment
accomplishes many goals, including catch-up contributions for the
Thrift Savings Plan contributors, reauthorization of the OSC and the
Marriage System Protections Board.
Finally, H.R. 3340 would allow employees, retirees and near-retirees
of the Overseas Private Investment Corporation to enroll in the Federal
Employees Health Benefit Plan.
Mr. Speaker, I urge my colleagues to support this legislation.
Mr. Speaker, I also want to say that I introduced the bill because it
was very important. It took a lot of time, and we had the approval of
the chairman of the committee, the gentleman from Indiana (Mr. Burton);
the ranking member, the gentleman from California (Mr. Waxman); the
chairman of the subcommittee, the gentleman from Florida (Mr. Weldon);
the ranking member of the Subcommittee on Civil Service, the gentleman
from Illinois (Mr. Davis); some great sponsors and some great staff
that helped to move this bill forward.
Mr. Speaker, I urge an affirmative vote.
Mr. Speaker, I reserve the balance of my time.
Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I want to congratulate the gentlewoman from Maryland for
the introduction and processing and passage of this legislation.
Mr. Speaker, I yield back the balance of my time.
Mrs. MORELLA. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Cantor). The question is on the motion
offered by the gentlewoman from Maryland (Mrs. Morella) that the House
suspend the rules and pass the bill, H.R. 3340, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mrs. MORELLA. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
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