[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.

                          ____________________