[Congressional Record Volume 164, Number 159 (Wednesday, September 26, 2018)]
[House]
[Pages H9076-H9078]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CORRECTING MISCALCULATIONS IN VETERANS' PENSIONS ACT
Mr. RUSSELL. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 4431) to amend title 5, United States Code, to provide for
interest payments by agencies in the case of administrative error in
processing certain annuity deposits for prior military service, as
amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 4431
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 ``Correcting Miscalculations
in Veterans' Pensions Act''.
SEC. 2. ERROR IN PROCESSING OF ANNUITY DEPOSIT FOR FORMER
MEMBERS OF THE UNIFORMED SERVICES.
(a) CSRS.--Section 8334(j) of title 5, United States Code,
is amended by adding at the end the following:
``(6)(A) In calculating and processing the deposit under
paragraph (1) with respect to an employee, Member, or
annuitant, if the employing agency of such employee, Member,
or annuitant makes an administrative error, such employing
agency may pay, on behalf of the employee, Member, or
annuitant, any additional interest assessed due to the
administrative error.
``(B) For purposes of subparagraph (A), the Secretary of
the Senate or the Chief Administrative Officer of the House
of Representatives, as appropriate, shall be considered the
employing agency of a Member or Congressional employee.
``(C) The Director of the Office of Personnel Management
shall issue such regulations as are necessary to carry out
this paragraph.''.
(b) FERS.--Section 8422(e) of title 5, United States Code,
is amended by adding at the end the following:
``(7)(A) In calculating and processing the deposit under
paragraph (1) with respect to an employee, Member, or
annuitant, if the employing agency of such employee, Member,
or annuitant makes an administrative error, such employing
agency may pay, on behalf of the employee, Member, or
annuitant, any additional interest assessed due to the
administrative error.
``(B) For purposes of subparagraph (A), the Secretary of
the Senate or the Chief Administrative Officer of the House
of Representatives, as appropriate, shall be considered the
employing agency of a Member or Congressional employee.
``(C) The Director of the Office of Personnel Management
shall issue such regulations as are necessary to carry out
this paragraph.''.
SEC. 3. ERROR IN PROCESSING OF ANNUITY DEPOSIT FOR CERTAIN
VOLUNTEERS.
(a) CSRS.--Section 8334(l) of title 5, United States Code,
is amended by adding at the end of the following:
``(5)(A) In calculating and processing the deposit under
paragraph (1) with respect to an employee, Member, or
annuitant, if an employing agency of such employee, Member,
or annuitant makes an administrative error that causes
additional interest assessed to accrue on the deposit, the
employing agency may pay, on behalf of the employee, Member,
or annuitant, any additional interest assessed due to the
administrative error.
``(B) In calculating and processing the deposit under
paragraph (1) with respect to an employee, Member, or
annuitant, if the Office of Personnel Management makes an
administrative error that causes additional interest assessed
to accrue on the deposit, the Office of Personnel Management
may pay, on behalf of the employee, Member, or annuitant, any
additional interest assessed due to the administrative error.
``(C) For purposes of subparagraph (A), the Secretary of
the Senate or the Chief Administrative Officer of the House
of Representatives, as appropriate, shall be considered the
employing agency of a Member or congressional employee.
``(D) The Director of the Office of Personnel Management
shall issue such regulations as are necessary to carry out
this paragraph.''.
(b) FERS.--Section 8422(f) of title 5, United States Code,
is amended by adding at the end of the following:
``(5)(A) In calculating and processing the deposit under
paragraph (1) with respect to an employee, Member, or
annuitant, if an employing agency of such employee, Member,
or annuitant makes an administrative error that causes
additional interest assessed to accrue on the deposit, the
employee, Member, or annuitant's employing agency may pay, on
behalf of the employee, Member, or annuitant, any additional
interest assessed due to the administrative error.
``(B) In calculating and processing the deposit under
paragraph (1) with respect to an employee, Member, or
annuitant, if the Office of Personnel Management makes an
administrative error that causes additional interest assessed
to accrue on the deposit, the Office of Personnel Management
may pay, on behalf of the employee, Member, or annuitant, any
additional interest assessed due to the administrative error.
``(C) For purposes of subparagraph (A), the Secretary of
the Senate or the Chief Administrative Officer of the House
of Representatives, as appropriate, shall be considered the
employing agency of a Member or congressional employee.
``(D) The Director of the Office of Personnel Management
shall issue such regulations as are necessary to carry out
this paragraph.''.
(c) Authorization of Payments.--All payments from the
Office of Personnel Management authorized by subsections (a)
and (b) shall be paid from the Civil Service Retirement and
Disability Fund, and together with administrative expenses
incurred by the Office in administering these subsections,
shall be deemed to have been authorized to be paid from that
Fund, which is appropriated for the payment thereof.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Oklahoma (Mr. Russell) and the gentleman from California (Mr. Gomez)
each will control 20 minutes.
The Chair recognizes the gentleman from Oklahoma.
[[Page H9077]]
General Leave
Mr. RUSSELL. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Oklahoma?
There was no objection.
Mr. RUSSELL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I urge support of H.R. 4431, the Correcting
Miscalculations in Veterans' Pensions Act, introduced by Congressman
Carter of Georgia.
Civilian Federal employees earn an annuity as a part of their service
to the country. Newly hired civil servants with prior Federal service,
such as members of the military or the Peace Corps, can pay a deposit
to count their prior service toward that annuity. This allows an
individual to increase their pension upon retirement by counting
previous, noncivilian service in the annuity calculation.
Under Federal retirement rules, there is a set period of time in
which the individual can pay the service deposit. If a deposit isn't
paid within this period of time, interest is assessed.
For example, someone wishing to pay a military service deposit must
do so within 2 years of starting civilian service. On the third
anniversary of civilian employment, interest will begin to accrue
annually until the deposit is paid in full.
From time to time, agencies make mistakes that can cause an
individual to be assessed interest that would not otherwise be owed.
Most commonly, the problem arises when an agency provides inaccurate
information about the amount or due date of the deposit. But under
current law, agencies cannot fix those mistakes, meaning the civil
servant has to pay the cost of the agency's mistake.
A 1996 opinion by the Government Accountability Office found the
Department of Energy was prohibited from paying the interest assessed
as a result of an agency's mistake on a military service deposit
without a change in the law. The agency made a mistake, and the agency
wanted to pay the difference. But under the restrictions of current
law, the individual had to cover the interest payments that accrued
through no fault of his own.
This bill fixes that problem to ensure civil servants do not pay the
cost of agencies' mistakes. Specifically, the bill authorizes Federal
agencies to pay interest assessed on military service deposits,
AmeriCorps service deposits, and Peace Corps service deposits, if the
interest is a result of an agency error.
I thank the gentleman from Georgia, my friend, Mr. Carter, for his
work on this important bill. I look forward to hearing from him in a
moment.
I would also like to thank Chairman Harper from the Committee on
House Administration for their support in bringing this bill to the
floor.
Mr. Speaker, I urge my colleagues to support this bill, and I reserve
the balance of my time.
House of Representatives, Committee on Oversight and
Government Reform,
Washington, DC, June 26, 2018.
Hon. Gregg Harper,
Chairman, Committee on House Administration, House of
Representatives, Washington, DC.
Dear Mr. Chairman: On November 16, 2017, the Committee on
Oversight and Government Reform ordered reported H.R. 4431,
the Correcting Miscalculations in Veterans' Pensions Act
without amendment, by voice vote. The bill was referred
primarily to the Committee on Oversight and Government
Reform, with additional referral to the Committee on House
Administration.
I ask you allow the Committee on the House Administration
to be discharged from further consideration of the bill to
expedite floor consideration. This discharge in no way
affects your jurisdiction over the subject matter of the
bill, and it will not serve as precedent for future
referrals. In addition, should a conference on the bill be
necessary, I would support your request to have the Committee
on House Administration represented on the conference
committee. Finally, I would be pleased to include this letter
and any response in the bill report filed by the Committee on
Oversight and Government Reform, as well as in the
Congressional Record during floor consideration, to
memorialize our understanding.
Thank you for your consideration of my request.
Sincerely,
Trey Gowdy.
____
House of Representatives,
Committee on House Administration,
Washington, DC, June 26, 2018.
Hon. Trey Gowdy,
Chairman, Committee on Oversight and Government Reform,
Washington, DC.
Dear Mr. Chairman: Thank you for your letter regarding H.R.
4431, The Correcting Miscalculations in Veterans Pensions
Act. As you know, certain provisions of the bill fall within
the Jurisdiction of Committee on House Administration.
I realize that discharging the Committee on House
Administration from further consideration of H.R. 4431 will
serve in the best interest of the House of Representatives
and agree to do so. It is the understanding of the Committee
on House Administration that forgoing action on H.R. 4431
will not prejudice the Committee with respect to appointment
of conferees or any future jurisdictional claim. I request
that your letter and this response be included in the bill
report filed by your Committee, as well as in the
Congressional Record.
Sincerely,
Gregg Harper,
Chairman.
Mr. GOMEZ. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 4431. This measure would
authorize agencies to pay interest on military service deposits in
cases in which administrative error causes interest to be due.
Military servicemembers who transition to civilian service may elect
to have past military service factored into their Federal pensions by
making payments to the civilian retirement fund. These payments are
intended to align with the contribution to the pension fund the
employees would have made for their years of service in the military.
Unfortunately, current law requires these payments to be paid within
2 years of starting Federal service. After this date, interest is
assessed on any outstanding payments. Sometimes agencies make mistakes
calculating the deposit amount that is due. In these cases, it is only
fair that the agencies that made the errors should pay the accrued
interest. Under current law or regulation, not all agencies have the
authority to pay such accrued interest. This bill would close that
loophole.
I thank Representative Carter and Chairman Gowdy for working with us
after committee markup to add provisions in the bill that would make
similar changes to title 5 regarding the service and deposits for VISTA
and Peace Corps volunteers.
Mr. Speaker, I urge my colleagues on both sides of the aisle to
support H.R. 4431, and I reserve the balance of my time.
Mr. RUSSELL. Mr. Speaker, I yield 4 minutes to the gentleman from
Georgia (Mr. Carter), who is the sponsor of this bill.
Mr. CARTER of Georgia. Mr. Speaker, I thank the gentleman for
yielding.
Mr. Speaker, I rise today in support of H.R. 4431, the Correcting
Miscalculations in Veterans' Pensions Act and urge all of my colleagues
to support this important legislation.
I introduced this legislation after one of our veteran constituents
in the First Congressional District of Georgia brought his own story to
my office. In this case, he was a veteran who, after his service in the
military, continued to serve our country by working in the Federal
Government. Veterans who work for the Federal Government can have their
Active Duty time in the military count toward their civil servant
retirement pension if they pay a military service deposit.
In the case of our constituent, the employing agency made a mistake
in calculating his military service deposit, but the Federal Government
did not notice the mistake for more than 10 years. Years later, the
Office of Personnel Management, OPM, told the constituent that he must
pay the miscalculated amount plus the mistakenly accrued interest on
the military service deposit that the employing government agency had
miscalculated.
When he tried to fight the situation, the employing agency said that
they had no ability to either waive the payment or pay it on behalf of
the veteran employee.
We have found multiple occurrences just like this one for veterans
working in our Federal Government. More often than not when these
situations happen, the costs balloon to tens of thousands of dollars,
leaving our veterans on the hook to pay. This legislation seeks to
improve this situation by clarifying that the Federal agencies, in the
case
[[Page H9078]]
of a miscalculation, are able to pay the interest that accrues on the
military service deposit on behalf of the veteran, which, over time,
ends up being the bulk of cost.
Our veterans risked their lives to protect our country, and they
deserve the best when they return home.
It is unfortunate to me that our Federal Government cannot follow
through with this commitment for even its own veteran employees. It is
even more worrisome that these Federal agencies are putting off their
responsibility, instead making their own employees--veteran employees--
take the huge financial hit.
With this legislation, we can support our veterans working in the
Federal Government.
Mr. GOMEZ. Mr. Speaker, I yield back the balance of my time.
Mr. RUSSELL. Mr. Speaker, I urge passage of this bill, and I yield
back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Oklahoma (Mr. Russell) that the House suspend the rules
and pass the bill, H.R. 4431, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
The title of the bill was amended so as to read: ``A bill to amend
title 5, United States Code, to provide for interest payments by
agencies in the case of administrative error in processing certain
annuity deposits for prior military service or certain volunteer
service, and for other purposes.''.
A motion to reconsider was laid on the table.
____________________