[Congressional Record Volume 149, Number 54 (Thursday, April 3, 2003)]
[Senate]
[Page S4827]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

                            By Mr. CAMPBELL:

  S. 776. A bill to amend chapters 83 and 84 of title 5, United States 
Code, to authorize payments to certain trusts under the Social Security 
Act, and for other purposes; to the Committee on Governmental Affairs.
  Mr. CAMPBELL. Mr. President, today I am introducing legislation that 
would amend Title V of the United States Code. It authorizes the Office 
of Personnel Management, OPM, to make payments to a disability trust or 
a pooled trust which is set up for a disabled dependent of a Federal 
worker in a way that would allow him or her to continue to receive 
Medicaid benefits.
  My bill would put disabled dependents of federal workers on a par 
with disabled dependents of those in the private sector. In 1993, 
Congress passed a statute allowing disabled persons to have trusts. 
And, in 1999, the Supplemental Security Income, SSI, statute was 
amended to conform with the basic Medicaid law. But, as current law is 
interpreted, these protective trusts cannot be set up for disabled 
dependents of federal workers in a way that allows them to keep their 
other benefits.
  This oversight can cause devastating and confusing circumstances for 
disabled dependents and their guardians. In Colorado, Lisa Neikirk, a 
Downs Syndrome child, became entitled to a small civil service 
retirement annuity from her father when he died in 1994. This benefit 
in the amount of $310 per month was just high enough to push her off 
SSI and Medicaid and she lost her benefits at that time.
  Because Congress had recently passed a Medicaid statute allowing 
disabled people to have trusts, Lisa's mother created a trust for her. 
However, the Social Security Administration took the position that OPM 
statutes do not permit Lisa's benefit to be assigned to a trust without 
negating her Medicaid benefits. The Social Security Administration 
accepts these trusts with other assets but the OPM statute preexisted 
the 1993 law and would not allow benefits to be assigned to these 
trusts without this change. Lisa's situation is only one of several 
such cases throughout the country.
  The bill I am introducing would grant to OPM the discretion to pay a 
retirement annuity to a disability trust which is set up for a person 
in a way which would allow them to continue to receive Medicaid 
benefits. This policy change has been very carefully drafted so that it 
cannot be abused. It stipulates a trust that is qualified under 
Medicaid law and adheres to two Medicaid statutes.
  I believe it is important that we better protect disabled children of 
Federal workers. We need to make it clear that disabled dependents of 
Federal workers are protected by laws that now protect people in the 
private sector. In today's uncertain world, I believe dependents of 
federal workers need all the protection that is available to them under 
the law. We must not let outdated federal statutes put federal workers 
and their dependents at a disadvantage.
  This legislation provides another step toward making our laws fair 
for the disabled in our country. I urge my colleagues to support its 
passage.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objective, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 776

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

     SECTION 1. AUTHORIZATION OF CERTAIN PAYMENTS UNDER THE CIVIL 
                   SERVICE RETIREMENT SYSTEM AND THE FEDERAL 
                   EMPLOYEES RETIREMENT SYSTEM TO CERTAIN TRUSTS 
                   UNDER THE SOCIAL SECURITY ACT.

       (a) Civil Service Retirement System.--
       (1) Payments.--Section 8345(e) of title 5, United States 
     Code, is amended in the first sentence by inserting before 
     the period ``, or is a trustee under a trust meeting the 
     requirements of subparagraph (A) or (C) of section 1917(d)(4) 
     of the Social Security Act (42 U.S.C. 1396p(d)(4) (A) or 
     (C))''.
       (2) Assignability of payments.--Section 8346(a) of title 5, 
     United States Code, is amended by striking ``except under'' 
     and inserting ``except to a trust meeting the requirements of 
     subparagraph (A) or (C) of section 1917(d)(4) of the Social 
     Security Act (42 U.S.C. 1396p(d)(4) (A) or (C)) or under''.
       (b) Federal Employees Retirement System.--
       (1) Payments.--Section 8466(c) of title 5, United States 
     Code, is amended in the first sentence by inserting before 
     the period ``, or is a trustee under a trust meeting the 
     requirements of subparagraph (A) or (C) of section 1917(d)(4) 
     of the Social Security Act (42 U.S.C. 1396p(d)(4) (A) or 
     (C))''.
       (2) Assignability of payments.--Section 8470(a) of title 5, 
     United States Code, is amended by striking ``except under'' 
     and inserting ``except to a trust meeting the requirements of 
     subparagraph (A) or (C) of section 1917(d)(4) of the Social 
     Security Act (42 U.S.C. 1396p(d)(4) (A) or (C)) or under''.
                                 ______