[Congressional Record (Bound Edition), Volume 145 (1999), Part 3]
[House]
[Pages 4490-4494]
[From the U.S. Government Publishing Office, www.gpo.gov]




            FEDERAL RESERVE BOARD RETIREMENT PORTABILITY ACT

  Mr. MICA. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 807) to amend title 5, United States Code, to provide portability 
of service credit for persons who leave employment with the Federal 
Reserve Board to take positions with other Government agencies, as 
amended.
  The Clerk read as follows:

                                H.R. 807

       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 ``Federal Reserve Board 
     Retirement Portability Act''.

     SEC. 2. PORTABILITY OF SERVICE CREDIT.

       (a) Creditable Service.--
       (1) In general.--Section 8411(b) of title 5, United States 
     Code, is amended--
       (A) by striking ``and'' at the end of paragraph (3);
       (B) in paragraph (4)--
       (i) by striking ``of the preceding provisions'' and 
     inserting ``other paragraph''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following:
       ``(5) a period of service (other than any service under any 
     other paragraph of this subsection, any military service, and 
     any service performed in the employ of a Federal Reserve 
     Bank) that was creditable under the Bank Plan (as defined in 
     subsection (i)), if the employee waives credit for such 
     service under the Bank Plan and makes a payment to the Fund 
     equal to the amount that would have been deducted from pay 
     under section 8422(a) had the employee been subject to this 
     chapter during such period of service (together with interest 
     on such amount computed under paragraphs (2) and (3) of 
     section 8334(e)).

     Paragraph (5) shall not apply in the case of any employee as 
     to whom subsection (g) (or, to the extent subchapter III of 
     chapter 83 is involved, section 8332(n)) otherwise 
     applies.''.
       (2) Bank plan defined.--Section 8411 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``(i) For purposes of subsection (b)(5), the term `Bank 
     Plan' means the benefit structure in which employees of the 
     Board of Governors of the Federal Reserve System appointed on 
     or after January 1, 1984, participate, which benefit 
     structure is a component of the Retirement Plan for Employees 
     of the Federal Reserve System, established under section 10 
     of the Federal Reserve Act (and any redesignated or successor 
     version of such benefit structure, if so identified in 
     writing by the Board of Governors of the Federal Reserve 
     System for purposes of this chapter).''.
       (b) Exclusion From Chapter 84.--
       (1) In general.--Paragraph (2) of section 8402(b) of title 
     5, United States Code, is amended by striking the matter 
     before subparagraph (B) and inserting the following:
       ``(2)(A) any employee or Member who has separated from the 
     service after--
       ``(i) having been subject to--

       ``(I) subchapter III of chapter 83 of this title;
       ``(II) subchapter I of chapter 8 of title I of the Foreign 
     Service Act of 1980; or
       ``(III) the benefit structure for employees of the Board of 
     Governors of the Federal Reserve System appointed before 
     January 1,

[[Page 4491]]

     1984, that is a component of the Retirement Plan for 
     Employees of the Federal Reserve System, established under 
     section 10 of the Federal Reserve Act; and

       ``(ii) having completed--

       ``(I) at least 5 years of civilian service creditable under 
     subchapter III of chapter 83 of this title;
       ``(II) at least 5 years of civilian service creditable 
     under subchapter I of chapter 8 of title I of the Foreign 
     Service Act of 1980; or
       ``(III) at least 5 years of civilian service (other than 
     any service performed in the employ of a Federal Reserve 
     Bank) creditable under the benefit structure for employees of 
     the Board of Governors of the Federal Reserve System 
     appointed before January 1, 1984, that is a component of the 
     Retirement Plan for Employees of the Federal Reserve System, 
     established under section 10 of the Federal Reserve Act,

     determined without regard to any deposit or redeposit 
     requirement under either such subchapter or under such 
     benefit structure, or any requirement that the individual 
     become subject to either such subchapter or to such benefit 
     structure after performing the service involved; or''.
       (2) Exception.--Subsection (d) of section 8402 of title 5, 
     United States Code, is amended to read as follows:
       ``(d) Paragraph (2) of subsection (b) shall not apply to an 
     individual who--
       ``(1) becomes subject to--
       ``(A) subchapter II of chapter 8 of title I of the Foreign 
     Service Act of 1980 (relating to the Foreign Service Pension 
     System) pursuant to an election; or
       ``(B) the benefit structure in which employees of the Board 
     of Governors of the Federal Reserve System appointed on or 
     after January 1, 1984, participate, which benefit structure 
     is a component of the Retirement Plan for Employees of the 
     Federal Reserve System, established under section 10 of the 
     Federal Reserve Act (and any redesignated or successor 
     version of such benefit structure, if so identified in 
     writing by the Board of Governors of the Federal Reserve 
     System for purposes of this chapter); and
       ``(2) subsequently enters a position in which, but for 
     paragraph (2) of subsection (b), such individual would be 
     subject to this chapter.''.
       (c) Provisions Relating to Certain Former Employees.--A 
     former employee of the Board of Governors of the Federal 
     Reserve System who--
       (1) has at least 5 years of civilian service (other than 
     any service performed in the employ of a Federal Reserve 
     Bank) creditable under the benefit structure for employees of 
     the Board of Governors of the Federal Reserve System 
     appointed before January 1, 1984, that is a component of the 
     Retirement Plan for Employees of the Federal Reserve System, 
     established under section 10 of the Federal Reserve Act;
       (2) was subsequently employed subject to the benefit 
     structure in which employees of the Board of Governors of the 
     Federal Reserve System appointed on or after January 1, 1984, 
     participate, which benefit structure is a component of the 
     Retirement Plan for Employees of the Federal Reserve System, 
     established under section 10 of the Federal Reserve Act (and 
     any redesignated or successor version of such benefit 
     structure, if so identified in writing by the Board of 
     Governors of the Federal Reserve System for purposes of 
     chapter 84 of title 5, United States Code); and
       (3) after service described in paragraph (2), becomes 
     subject to and thereafter entitled to benefits under chapter 
     84 of title 5, United States Code,

     shall, for purposes of section 302 of the Federal Employees' 
     Retirement System Act of 1986 (100 Stat. 601; 5 U.S.C. 8331 
     note) be considered to have become subject to chapter 84 of 
     title 5, United States Code, pursuant to an election under 
     section 301 of such Act.
       (d) Effective Date.--
       (1) In general.--Subject to succeeding provisions of this 
     subsection, this section and the amendments made by this 
     section shall take effect on the date of enactment of this 
     Act.
       (2) Provisions relating to creditability and certain former 
     employees.--The amendments made by subsection (a) and the 
     provisions of subsection (c) shall apply only to individuals 
     who separate from service subject to chapter 84 of title 5, 
     United States Code, on or after the date of enactment of this 
     Act.
       (3) Provisions relating to exclusion from chapter.--The 
     amendments made by subsection (b) shall not apply to any 
     former employee of the Board of Governors of the Federal 
     Reserve System who, subsequent to his or her last period of 
     service as an employee of the Board of Governors of the 
     Federal Reserve System and prior to the date of enactment of 
     this Act, became subject to subchapter III of chapter 83 or 
     chapter 84 of title 5, United States Code, under the law in 
     effect at the time of the individual's appointment.

     SEC. 3. CERTAIN TRANSFERS TO BE TREATED AS A SEPARATION FROM 
                   SERVICE FOR PURPOSES OF THE THRIFT SAVINGS 
                   PLAN.

       (a) Amendments to Chapter 84 of Title 5, United States 
     Code.--
       (1) In general.--Subchapter III of chapter 84 of title 5, 
     United States Code, is amended by inserting before section 
     8432 the following:

     ``Sec. 8431. Certain transfers to be treated as a separation

       ``(a) For purposes of this subchapter, separation from 
     Government employment includes a transfer from a position 
     that is subject to one of the retirement systems described in 
     subsection (b) to a position that is not subject to any of 
     them.
       ``(b) The retirement systems described in this subsection 
     are--
       ``(1) the retirement system under this chapter;
       ``(2) the retirement system under subchapter III of chapter 
     83; and
       ``(3) any other retirement system under which individuals 
     may contribute to the Thrift Savings Fund through 
     withholdings from pay.''.
       (2) Clerical amendment.--The table of sections for chapter 
     84 of title 5, United States Code, is amended by inserting 
     before the item relating to section 8432 the following:

``8431. Certain transfers to be treated as a separation.''.
       (b) Conforming Amendments.--Subsection (b) of section 8351 
     of title 5, United States Code, is amended by redesignating 
     paragraph (11) as paragraph (8), and by adding at the end the 
     following:
       ``(9) For the purpose of this section, separation from 
     Government employment includes a transfer described in 
     section 8431.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to transfers occurring before, on, 
     or after the date of enactment of this Act, except that, for 
     purposes of applying such amendments with respect to any 
     transfer occurring before such date of enactment, the date of 
     such transfer shall be considered to be the date of enactment 
     of this Act. The Executive Director (within the meaning of 
     section 8401(13) of title 5, United States Code) may 
     prescribe any regulations necessary to carry out this 
     subsection.

     SEC. 4. CLARIFYING AMENDMENTS.

       (a) In General.--Subsection (f) of section 3304 of title 5, 
     United States Code, as added by section 2 of Public Law 105-
     339, is amended--
       (1) by striking paragraph (4);
       (2) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (3) by inserting after paragraph (1) the following:
       ``(2) If selected, a preference eligible or veteran 
     described in paragraph (1) shall acquire competitive status 
     and shall receive a career or career-conditional appointment, 
     as appropriate.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect as if enacted on October 31, 1998.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Florida (Mr. Mica) and the gentleman from Maryland (Mr. Cummings) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Florida (Mr. Mica).


                             General Leave

  Mr. MICA. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on the bill, H.R. 807, as amended.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?
  There was no objection.
  Mr. MICA. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, this morning I would like to take this opportunity to 
commend the gentleman from Florida (Mr. Scarborough), the chairman of 
the Subcommittee on Civil Services, for introducing this legislation. I 
also would like to take this opportunity to thank the gentleman from 
Maryland (Mr. Cummings), the distinguished ranking member of the 
Subcommittee on Civil Service, for his strong support for this 
legislation.
  I also want to take this opportunity to thank the gentleman from 
Indiana (Mr. Burton), the chairman of the Committee on Government 
Reform, and the gentleman from California (Mr. Waxman), the ranking 
member, for their support on this bill and also moving it through the 
committee process in an expedited fashion. I also wanted to take this 
opportunity to extend my congratulations and thanks to the gentlewoman 
from Maryland (Mrs. Morella) for her strong support, not only of this 
legislation, but the gentlewoman is one of the most active individuals 
in the Congress in support of our Federal employees, no matter what 
capacity they serve our Federal Government in, and the citizens of 
America.
  Mr. Speaker, this bipartisan legislation today will provide 
retirement

[[Page 4492]]

portability for certain Federal Reserve Board employees who take jobs 
in our executive branch of government. This legislation will allow 
those employees who participate in the Board's FERS-like retirement 
plan, and FERS is our Federal Employee Retirement System, for those not 
familiar with the acronym, to obtain FERS credit for their Federal 
Reserve years when they transfer to another Federal agency.

                              {time}  1145

  The Federal Reserve already provides such reciprocity for employees 
who transfer to the Federal Reserve from other Federal agencies. 
Without this corrective legislation today, former Board employees would 
receive smaller annuities upon retirement than they otherwise should 
and they otherwise deserve.
  This is a simple bill that also corrects an inequity in current law 
that prevents some Federal employees from withdrawing their funds from 
their Thrift Savings Plan accounts.
  Under current law, employees participating in the Thrift Savings Plan 
who transfer to the Federal Reserve Board from other Federal agencies 
are not permitted to withdraw funds from their Thrift Savings Plan 
accounts.
  Current law specifies that employees, and I will quote from the law, 
``must separate from government employment,'' in order to be entitled 
to withdraw funds. However, employment at the Board is considered to be 
government employment. Therefore, employees who transfer to the Board 
and commence participation in the Federal Reserves retirement plan may 
not withdraw the funds in their Thrift Savings Plan accounts.
  Section 3 of this legislation corrects that problem by allowing our 
Federal employees who have transferred or will transfer to the Board to 
move the funds in their Thrift Savings accounts to the Board's thrift 
plan.
  Mr. Speaker, sections 3's technical correction, along with the 
portability language in section 2, are appropriate and necessary 
remedies to ensure Board employees fair treatment under our current 
law.
  Section 4 of this bill is also critically important to the men and 
women who have served our Nation under arms. It clarifies the Veterans 
Employment Opportunities Act that we passed last year to ensure that 
our veterans will receive their benefits that Congress intended when it 
passed the Act again in the last session of Congress.
  Mr. Speaker, with those opening comments, I reserve the balance of my 
time.
  Mr. CUMMINGS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I commend the gentleman from Florida (Mr. Scarborough) 
for moving swiftly to bring this bipartisan bill to the floor.
  Under current law, if an employee of the Federal Reserve Board leaves 
to work for another Federal agency, the employee is required to join 
FERS, the Federal Employees Retirement System. Under the current FERS 
statute, time spent working at the Board after 1988 does not count as 
credible service towards a FERS annuity. This is simply not fair. As a 
result, these employees will receive smaller pensions upon retirement.
  This outcome resulted from an oversight that occurred when the FERS 
statute was written in late 1980s. It affects Federal Reserve Board 
employees hired after 1983 who continued working at the Board after 
1988.
  In human terms, the problem affects approximately 50 employees who 
have already left the Board for other agencies. But if not addressed, 
it will potentially affect approximately 1,000 people, translating into 
60 percent of the Board's current workforce should they move to other 
agencies and then retire under FERS.
  In the long run, if the problem is left unaddressed, an ever-larger 
proportion of the Board's workforce will be potentially affected in the 
same manner.
  Last week, H.R. 807 was marked up by full committee, and two 
amendments were offered and approved by the committee that further 
enhanced the bill, and a bill that Congress passed last year, the 
Veterans Employment Opportunities Act of 1998.
  Due to an amendment offered by the gentleman from Florida (Mr. 
Scarborough), the bill will also allow current and future Federal 
employees who transfer to the Federal Reserve Board to transfer the 
funds from their FERS Thrift Savings accounts to the Federal Reserve 
through a savings plan.
  At present, current law dictates that Federal employees who 
participate in the TSP, then transfer to the Board, cannot withdraw 
funds from their TSP account. The affected employees can no longer 
contribute money to their TSP or transfer money from their TSP accounts 
to the Board's thrift plan. They also lose the option to borrow money 
from their TSP, which is an option that should be available to them as 
Federal employees.
  The Federal Reserve Board has requested this technical correction, 
and I am pleased to support it. During the last Congress, the gentleman 
from Florida (Mr. Mica), former chairman of the Subcommittee on Civil 
Service, and myself, worked hard to see that the Veterans Employment 
Opportunities Act of 1998 be enacted. I applaud him for all of his 
efforts.
  This Act improves the ability of veterans to compete during the 
Federal hiring process, extends veterans' preference to all branches of 
the Federal Government, and instructs the Secretary of Labor to 
maintain a database of contractors who have filed reports on the number 
of veterans they have hired.
  Since the enactment of this legislation, concerns have arisen 
regarding OPM's interpretation of a section of the Act providing for 
the hiring of veterans by Federal agencies. OPM interpreted the 
language in the act to mean that veterans could be hired for a Federal 
job as schedule B appointees rather than as career status appointees. 
Schedule B appointments are not afforded the same rights and privileges 
as career status employees.
  This issue was discussed with our counterparts in the Senate and with 
OPM. All parties agreed that language was needed to clarify the 
original intent of the Congress. This clarifying language is reflected 
in the amendment of the gentleman from Florida (Mr. Mica). Again I 
compliment him for that. The amendment will ensure American veterans 
are hired.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MICA. Mr. Speaker, I am pleased to yield 1\1/2\ minutes to the 
distinguished gentleman from Virginia (Mr. Davis), chairman of the NRCC 
and also chair of the Subcommittee on the District of Columbia, who has 
brought the District of Columbia from the depths of disaster to fiscal 
soundness.
  Mr. DAVIS of Virginia. Mr. Speaker, I thank the gentleman from 
Florida for yielding me this time. The introduction is longer than my 
speech, I am afraid.
  Mr. Speaker, I rise today in support of H.R. 807, the Federal Reserve 
Board Retirement Portability Act introduced by the gentleman from 
Florida (Mr. Scarborough) and of which I am proud to be a cosponsor.
  This bill corrects two technical oversights that significantly harm 
the ability of the 1,700 Reserve Board employees who work at the 
facility's Washington headquarters to pursue career opportunities open 
to all other Federal employees.
  This legislation will accord Federal Reserve Board employees, many of 
whom live in my District, some of the same privileges that other 
Federal employees enjoy. The Board currently has its own retirement 
plan covering employees hired prior to 1984 under the Civil Service 
Retirement System as well as a bank plan for those hired after that 
date.
  Those covered under the CSRS plan have had the pension reciprocity 
and enjoyed pension civil service portability. Unfortunately, due to a 
technical oversight when the Federal retirement system, the FERS 
system, was created, those employees covered solely by the bank plan 
are not allowed to credit their service with the Federal Reserve to 
FERS if they leave for another employment opportunity within the 
Executive Branch. Conversely,

[[Page 4493]]

under current Federal law, Federal employees who transfer to the 
Federal Reserve Board are given portability.
  The result of this oversight is that Board employees may face a 
reduced pension that does not accurately reflect their years of service 
to the Federal Government. As a matter of fact, Federal Reserve Board 
employees may collect a reduced pension from both the FERS and the 
Board plan that does not equal a FERS pension corrected to reflect 
continuous government service. This problem hinders the career 
opportunities of Board employees and limits the ability of other 
Federal Government agencies to recruit those individuals.
  H.R. 807 also makes another technical correction to allow Federal 
employees who transfer to the Federal Reserve Board from other Federal 
agencies to have access to their Thrift Savings Plan. Presently, 
Federal employees who transfer to the Board cannot access their TSP, 
nor can they roll those TSP dollars over to the Board's thrift plan. 
Again, this harms the employment opportunities of Federal employees and 
limits some of the choices they might otherwise enjoy.
  H.R. 807 will give the Federal Reserve Board the necessary tools to 
attract the most qualified candidates from within the Executive Branch.
  Mr. Speaker, I want to commend the gentleman from Florida (Mr. 
Scarborough), chairman of the Subcommittee on Civil Service and his 
pinch-hitter today, the gentleman from Florida (Mr. Mica), former 
chairman, who endorses this legislation. It is a worthwhile bill that 
deserves the support of every Member.
  Mr. Speaker, I rise today in support of H.R. 807, the Federal Reserve 
Board Retirement Portability Act introduced by Representative 
Scarborough and of which I am proud to be a cosponsor. This bill 
corrects two technical oversights that significantly harm the ability 
of the 1700 Federal Reserve Board employees who work at the facility's 
Washington headquarters to pursue career opportunities open to other 
federal employees.
  This legislation will accord Federal Reserve Board employees--many of 
whom live in my Congressional district--some of the same privileges 
that other federal employees enjoy. The Federal Reserve Board currently 
has its own retirement plan covering employees hired prior to 1984 
under the Civil Service Retirement System (CSRS) as well as a Bank plan 
for those hired after that date. Those covered under the CSRS plan have 
had pension reciprocity and enjoyed pension civil service portability. 
Unfortunately, due to a technical oversight when the Federal Retirement 
System (FERS) was created, those employees covered solely by the bank 
plan are not allowed to credit their service with the Federal Reserve 
to FERS if they leave for another employment opportunity within the 
Executive branch. Conversely, under current law, Federal employees who 
transfer to the Federal Reserve Board are given portability.
  The result of this oversight is that Board employees may face a 
reduced pension that does not accurately reflect their years of service 
to the federal government. As a matter of fact, Federal Reserve Board 
employees may collect a reduced pension from both the FERS and the 
Board plan that does not equal a FERS pension corrected to reflect 
continuous government service. This problem hinders the career 
opportunities of Federal Reserve employees and limits the ability of 
other federal government agencies to recruit these individuals.
  H.R. 807 also makes another technical correction to allow federal 
employees who transfer to the Federal Reserve Board from other federal 
agencies to have access to their Thrift Savings Plans (TSP). Presently, 
federal employees who transfer to the Federal Reserve Board cannot 
access their TSP, nor can they roll those TSP dollars over to the 
Board's thrift plan. Again, this harms the employment opportunities of 
federal employees and limits some of the choices they might otherwise 
enjoy. H.R. 807 will give the Federal Reserve Board the necessary tools 
to attract the most qualified candidates from within the Executive 
Branch.
  H.R. 807 substantially corrects these problems and it recognizes the 
importance of treating all federal employees fairly. When we ignore 
these technical oversights, we send our federal employees the wrong 
message. By addressing the retirement program problems at the Federal 
Reserve, we enhance that Agency's ability to attract and retain the 
most qualified individuals.
  Mr. Speaker, I would like to commend my colleague, Mr. Scarborough, 
Chairman of the Civil Service Subcommittee for introducing this 
legislation. H.R. 807 is a worthwhile bill that deserves the support of 
every Member, and I urge my colleagues on both sides of the aisle to 
vote in favor of this legislation.
  Mr. CUMMINGS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I want to thank the gentleman from Virginia (Mr. Davis) 
for his comments. I agree with him. This legislation is extremely 
important. Although it affects 50 people now and will eventually affect 
1,000 people, this is a perfect example of the Congress working in a 
bipartisan manner to put a face on legislation and to address the 
problems that these Members of the Federal Reserve System are facing.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MICA. Mr. Speaker, I am pleased to yield 1\1/2\ minutes to the 
distinguished gentlewoman from Maryland (Mrs. Morella).
  Mrs. MORELLA. Mr. Speaker, I rise in very strong support of this 
bill, H.R. 807. Through the portability, it provides equity for those 
employees who so deserve it. It is indeed a bipartisan piece of 
legislation.
  I want to commend the gentleman from Florida (Mr. Scarborough) for 
introducing it, the gentleman from Maryland (Mr. Cummings), ranking 
member of the Subcommittee on Civil Service, the gentleman from Florida 
(Mr. Mica), the gentleman from Virginia (Mr. Davis), and all of the 
Members who have voted unanimously on a committee level in favor of 
this bill which allows the Federal Reserve Board employees to count 
their years of service there toward a civil service retirement plan if 
they later work for another government agency.
  It is the kind of equity that we must offer our employees to be able 
to recruit and retain the very finest as we currently have. So I am 
most supportive of this legislation; and, as the ranking minority 
member mentioned, I hope that this is a hallmark and a prototype of 
continued bipartisan legislation to help our civil service.
  Mr. CUMMINGS. Mr. Speaker, I yield myself such time as I might 
consume.
  Mr. Speaker, we have no further speakers, but I just want to 
reemphasize the fact that this legislation is one that just shows how 
fast this Congress can move. When we heard about the problems, when the 
gentleman from Florida (Mr. Mica), our former chairman, was chairman 
heard about this problem during testimony, we immediately moved to 
address it. We set deadlines that were met.
  I think that that is the way Americans want their government to work. 
This time we have gotten this legislation in early. We will do 
everything in our power of course to make sure that it moves swiftly 
through the other body.
  With that, Mr. Speaker, I urge all of my colleagues to support this 
legislation.
  Mr. Speaker, I yield back the balance of my time.
  Mr. MICA. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, I would like to focus some attention for a few moments 
on section 4 of H.R. 807. This section is particularly important to our 
Nation's veterans. I want to thank again the gentleman from Florida 
(Mr. Scarborough), who is the chairman now of the Subcommittee on Civil 
Service, and also thank again the gentleman from Maryland (Mr. 
Cummings), the ranking member, for their strong support for this 
section and revision that has been provided space in this bill.
  When the Committee on Government Reform marked up H.R. 807, I was 
able to add section 4 in order to perfect the language of Public Law 
105-339, the Veterans Employment Opportunities Act, which passed in the 
last session in 1998. That bill, which I had the pleasure of 
introducing with others in the House, expanded veterans employment 
opportunities and strengthened veterans preference in our civil service 
system.

                              {time}  1200

  It was an important bill to our Nation's veterans. In fact, it was 
called

[[Page 4494]]

the most significant veterans preference legislation since World War II 
and was strongly supported by every one of our Nation's veterans 
service organizations.
  A key provision of that act allowed veterans to compete for civil 
service jobs even if they did not have the status as Federal employees. 
Before the act was passed, competition for many jobs was limited to 
current Federal employees. However, after the act was passed, the 
Office of Personnel Management raised an important technical issue. OPM 
held that individuals who were selected under this provision could not 
be appointed to competitive service unless they already had what is 
known as competitive status. Instead, the Office of Personnel 
Management instructed agencies to provide these individuals with 
excepted service appointments.
  As excepted service employees, these veterans would have, in fact, 
fewer rights than their colleagues in the competitive service. Most 
importantly, as excepted service employees, these veterans would not be 
able to compete for other agency jobs under internal merit promotion 
procedures. This was not what I intended; this was not what Congress 
intended. Congress intended that veterans appointed under this 
provision would have all of the rights of their fellow employees in a 
particular agency.
  Mr. Speaker, the majority and the minority staffs of the Subcommittee 
on Civil Service and of the Senate Committee on Veterans' Affairs met 
with the Office of Personnel Management's experts to discuss this 
problem. Section 4 enacts language suggested by the Office of Personnel 
Management. Under this language, in fact, veterans who are selected 
under the access provision of the Veterans Employment Opportunities Act 
will receive competitive appointments and competitive status. That is 
what we intended and that is what Congress wants. They will have the 
same rights as their coworkers.
  Mr. Speaker, we have discussed this situation extensively with 
veterans' organizations and various service groups represented by 
veterans. They are keenly interested in resolving this problem and have 
urged Congress to act as quickly as possible to correct and clarify 
this situation and cure this problem. They strongly support section 4, 
and I urge all Members to support section 4 and also this legislation.
  In closing, Mr. Speaker, this bill is really about fairness. The 
Federal Reserve already allows Federal employees who transfer there to 
receive credit for their years of service at other agencies. Congress 
should provide reciprocal rights under the Federal employees' 
retirement system for those Federal Reserve employees who transfer to 
other agencies, particularly when the cost is negligible. Likewise, 
there is no reason to deny individuals who transfer to the Federal 
Reserve the right to withdraw their funds from their own thrift savings 
plan accounts.
  Section 4 of this bill, as I stated, is extremely important to our 
Nation's veterans. It will, again, clarify the meaning of the Veterans 
Employment Opportunities Act, which was passed in the last Congress. 
Congress intended that those veterans selected for Federal employment 
under the access provisions of that act would have the very same rights 
as their coworkers and compete for other jobs. Both Republicans and 
Democrats support this legislation, as does the administration. We have 
worked very closely with the Federal Reserve Board, the Office of 
Personnel Management, the Federal Retirement Thrift Investment Board, 
and others in crafting the language before the House of Representatives 
this morning.
  Mr. Speaker, H.R. 807, as amended, is a good piece of legislation, a 
bipartisan piece of legislation, and a fair bill. It is important to 
our Federal employees at the Federal Reserve Board, it is also 
important to those who have served our Nation. I urge all Members to 
vote for H.R. 807, as amended.
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  The SPEAKER pro tempore (Mr. Linder). The question is on the motion 
offered by the gentleman from Florida (Mr. Mica) that the House suspend 
the rules and pass the bill, H.R. 807, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) 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 portability 
of service credit for persons who leave employment with the Federal 
Reserve Board to take positions with other Government agencies, and for 
other purposes.''.
  A motion to reconsider was laid on the table.

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