[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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