[Congressional Record Volume 148, Number 137 (Thursday, October 17, 2002)]
[Senate]
[Pages S10751-S10752]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        ANNUITY COMPUTATION ADJUSTMENT FOR PERIODS OF DISABILITY

  Mr. REID. Mr. President, I ask unanimous consent that the Senate 
proceed to the consideration of calendar No. 716, S. 2936.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 2936) to amend chapter 84 of title 5, United 
     States Code, to provide that certain Federal annuity 
     computations are adjusted by 1 percent relating to periods of 
     receiving disability payments, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Governmental Affairs with 
an amendment and an amendment to the title.
  [Strike the part shown in black brackets and insert the part shown in 
italic.]

                                S. 2936

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

     [SECTION 1. ANNUITY COMPUTATION ADJUSTMENT FOR PERIODS OF 
                   DISABILITY.

       [Section 8415 of title 5, United States Code, is amended--
       [(1) by redesignating the second subsection (i) and 
     subsection (j) as subsections (j) and (k), respectively; and
       [(2) by adding at the end the following:
       ``[(l) In the case of any annuity computation under this 
     section that includes, in the aggregate, at least 1 year of 
     credit under section 8411(d) for any period while receiving 
     benefits under subchapter I of chapter 81, the percentage 
     otherwise applicable under this section for that period so 
     credited shall be increased by 1 percent.''.]

     SECTION 1. ANNUITY COMPUTATION ADJUSTMENT FOR PERIODS OF 
                   DISABILITY.

       (a) In General.--Section 8415 of title 5, United States 
     Code, is amended--
       (1) by redesignating the second subsection (i) as 
     subsection (k); and
       (2) by adding at the end the following:
       ``(l) In the case of any annuity computation under this 
     section that includes, in the aggregate, at least 1 year of 
     credit under section 8411(d) for any period while receiving 
     benefits under subchapter I of chapter 81, the percentage 
     otherwise applicable under this section for that period so 
     credited shall be increased by 1 percentage point.''
       (b) Conforming Amendment.--Section 8422(d)(2) of title 5, 
     United States Code (as added by section 122(b)(2) of Public 
     Law 107-135), is amended by striking ``8415(i)'' and 
     inserting ``8415(k)''.
       (c) Applicability.--The amendments made by this section 
     shall apply with respect to any annuity entitlement which is 
     based on a separation from service occurring on or after the 
     date of enactment of this Act.
       Amend the title so as to read: ``A bill to amend chapter 84 
     of title 5, United States Code, to provide that certain 
     Federal annuity computations are adjusted by 1 percentage 
     point relating to periods of receiving disability payments, 
     and for other purposes.''.
  Mr. ALLEN. Mr. President, today I rise to thank my colleagues for 
their unanimous support of S. 2936 which will adjust Federal employees 
retirement computations to offset reductions in their retirement 
arising from on-the-job injuries covered by the Workers Compensation 
program. An extraordinary amount of hard work went into this 
legislation and I would like to thank my colleague from New York, 
Senator Clinton, for her most valuable assistance on her side of the 
aisle in pushing this important measure through the legislative 
process. I would also like to thank Senators Akaka, Cochran, Lieberman, 
and Thompson of the Governmental Affairs Committee for their advice and 
bipartisan support, and Senator Warner for his support from the first 
day I introduced this bill.
  S. 2936 addresses a problem in the retirement program for federal 
employees that has been recognized but unresolved since 1986 when the 
current retirement system was established. Unfortunately, complications 
arising from the Tax Code and the Workers Rehabilitation Act of 1973 
have blocked any solution.
  My resolve to address the problem was inspired by Ms. Louise Kurtz, a 
federal employee who was severely injured in the September 11 attack on 
the Pentagon. She suffered burns over 70% of her body, lost her 
fingers, yet fights daily in rehabilition and hopes to return to work 
some day. Current law does not allow Mrs. Kurtz to contribute to her 
retirement program while she is recuperating and receiving Worker's 
Compensation disability payments. As a result, after returning to work 
and eventually retiring, she will find herself inadequately prepared 
and unable to afford to retire because of the lack of contributions 
during her recuperation.
  As Ms. Kurtz's situation reveals, federal employees under the Federal 
Employees Retirement System who have sustained an on-the-job injury and 
are receiving disability compensation from the Department of Labor's 
Office of Workers' Compensation Programs are unable to make 
contributions or payments into Social Security or the Thrift Savings 
Plan. Therefore, the future retirement benefits from both sources are 
reduced.
  This legislation offsets the reductions in Social Security and Thrift 
Savings Plan retirement benefits by increasing the Federal Employees 
Retirement System Direct Benefit calculation by one percentage point 
for extended periods of disability.
  The passage of this bill ensures that the pensions of our hard-
working federal employees will be kept whole during a period of injury 
and recuperation, especially now that many of them are on the 
frontlines of protecting our homeland security in this new war on 
terror. By protecting the retirement security of injured federal 
employees, we have provided an incentive for them to return to work and 
increased our ability to retain our most dedicated and experienced 
federal workers. This is a reasonable and fair approach in which the 
whole Senate has acted in a logical and compassionate manner.
  I wish to reiterate my gratitude to Senators Lieberman and Thompson 
and their staffs for their assistance in passing this legislation. I 
also wish to thank Office of Personnel Management Director Kay Coles 
James and Harry Wolf, Ted Newland, and Mary Ellen Wilson of her staff 
for helping craft this legislative solution to a heretofore insolvable 
problem. They are truly wonderful, creative, caring, and principled 
leaders who worked long hours to accomplish this equitable solution.
  I am glad to see the Senate come together and pass this important 
legislation and again thank my colleague from New York for her 
leadership. I have truly enjoyed working with her for the successful 
passage of this positive and constructive legislation that will improve 
the retirement security of America's dedicated federal employees.
  Mr. REID. Mr. President, I ask that the Senate agree to the committee 
substitute; the bill, as amended, be read a third time and passed, the 
title amendment be agreed to, the motion to reconsider be laid upon the 
table with no

[[Page S10752]]

intervening action or debate, and that any statements relating to this 
measure be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee amendment in the nature of a substitute was agreed to.
  The title amendment was agreed to.
  The bill (S. 2936), as amended, was read a third time and passed.

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