[Congressional Record (Bound Edition), Volume 153 (2007), Part 6]
[Extensions of Remarks]
[Page 8510]
[From the U.S. Government Publishing Office, www.gpo.gov]


THE INTRODUCTION OF THE CSRS RETIREMENT REPAYMENT TECHNICAL CORRECTION 
                              ACT OF 2007

                                 ______
                                 

                         HON. CHRIS VAN HOLLEN

                              of maryland

                    in the house of representatives

                        Thursday, March 29, 2007

  Mr. VAN HOLLEN. Madam Speaker, today I am introducing the CSRS 
Retirement Repayment Technical Correction Act of 2007. This bill would 
correct an unintended consequence that followed the enactment of the 
Omnibus Reconciliation Act of 1990 (Public Law 101-508) on November 5, 
1990, and provide relief for Federal employees who were adversely 
affected by that enactment.

  The Omnibus Reconciliation Act of 1990 made retroactive changes to 
the rules related to separating Federal employees. While the rules were 
made retroactive to October 1, 1990, the implementing regulations were 
not promulgated until February 1991. This four month period between the 
enactment of the law and the promulgation of the implementing 
regulations has adversely affected any Federal employee who withdrew 
their retirement contributions during this period.

  This matter was brought to my attention by Sandra Schatz Landis, my 
constituent who was on maternity leave from the Immigration and 
Naturalization Service (INS), a former bureau of the Department of 
Justice at the time in question. On November 5, 1990, Ms. Landis 
withdrew $24,439.00 in retirement contributions and was advised that if 
she later re-entered federal service, she could re-deposit the 
withdrawal without paying interest and not suffer any adverse 
consequences.

  Unbeknownst to Ms. Landis and the personnel specialists at INS who 
were advising her, because of the enactment of the Omnibus Budget 
Reconciliation Act of 1990 that occurred on that very same day, 
November 5, 1990, employees who withdrew their retirement contributions 
as far back as October 1, 1990 were suddenly required to repay their 
withdrawn contributions with interest in order to have the prior 
service included in their annuity calculation. What is unfair about 
this is that employees had no warning that the rules under which they 
were making major financial decisions were changing. If Ms. Landis were 
to make this repayment today, she would have to refund over $58,000 of 
which $34,000 is interest. This is just one example of an unintended 
injustice that must be corrected.

  The CSRS Retirement Repayment Technical Correction Act of 2007 will 
provide relief to those who withdrew their retirement contributions 
between Oct 1, 1990, when the Omnibus Reconciliation Act was enacted, 
and February 1991, when implementing regulations were promulgated. It 
is fair and reasonable legislation that needs to be enacted into law.

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