[Congressional Record (Bound Edition), Volume 155 (2009), Part 7]
[House]
[Pages 9526-9534]
[From the U.S. Government Publishing Office, www.gpo.gov]




                 FEDERAL RETIREMENT REFORM ACT OF 2009

  Mr. TOWNS. Mr. Speaker, I move to suspend the rules and pass the bill

[[Page 9527]]

(H.R. 1804) to amend title 5, United States Code, to make certain 
modifications in the Thrift Savings Plan, the Civil Service Retirement 
System, and the Federal Employees' Retirement System, and for other 
purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1804

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Federal 
     Retirement Reform Act of 2009''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

      TITLE I--PROVISIONS RELATING TO FEDERAL EMPLOYEES RETIREMENT

              Subtitle A--Thrift Savings Plan Enhancement

Sec. 101. Short title.
Sec. 102. Automatic enrollments.
Sec. 103. Qualified Roth contribution program.
Sec. 104. Authority to establish self-directed investment window.
Sec. 105. Reporting requirements.
Sec. 106. Acknowledgement of risk.

            Subtitle B--Other Retirement-Related Provisions

Sec. 111. Credit for unused sick leave.
Sec. 112. Exemption of certain CSRS repayments from the requirement 
              that they be made with interest.
Sec. 113. Computation of certain annuities based on part-time service.
Sec. 114. Treatment of members of the uniformed services under the 
              Thrift Savings Plan.
Sec. 115. Authority to deposit refunds under FERS.
Sec. 116. Retirement credit for service of certain employees 
              transferred from District of Columbia service to Federal 
              service.

TITLE II--SPECIAL SURVIVOR INDEMNITY ALLOWANCE FOR SURVIVING SPOUSES OF 
                          ARMED FORCES MEMBERS

Sec. 201. Increase in monthly amount of special survivor indemnity 
              allowance for widows and widowers of deceased members of 
              the Armed Forces affected by required Survivor Benefit 
              Plan annuity offset for dependency and indemnity 
              compensation.

      TITLE I--PROVISIONS RELATING TO FEDERAL EMPLOYEES RETIREMENT

              Subtitle A--Thrift Savings Plan Enhancement

     SEC. 101. SHORT TITLE.

       This subtitle may be cited as the ``Thrift Savings Plan 
     Enhancement Act of 2009''.

     SEC. 102. AUTOMATIC ENROLLMENTS.

       (a) In General.--Section 8432(b) of title 5, United States 
     Code, is amended by striking paragraphs (2) through (4) and 
     inserting the following:
       ``(2)(A) The Board shall by regulation provide for an 
     eligible individual to be automatically enrolled to make 
     contributions under subsection (a) at the default percentage 
     of basic pay.
       ``(B) For purposes of this paragraph, the default 
     percentage shall be equal to 3 percent or such other 
     percentage, not less than 2 percent nor more than 5 percent, 
     as the Board may by regulation prescribe.
       ``(C) The regulations shall include provisions under which 
     any individual who would otherwise be automatically enrolled 
     in accordance with subparagraph (A) may--
       ``(i) modify the percentage or amount to be contributed 
     pursuant to automatic enrollment, effective from the start of 
     such enrollment; or
       ``(ii) decline automatic enrollment altogether.
       ``(D) For purposes of this paragraph, the term `eligible 
     individual' means any individual who, after any regulations 
     under subparagraph (A) first take effect, is appointed, 
     transferred, or reappointed to a position in which that 
     individual is eligible to contribute to the Thrift Savings 
     Fund.
       ``(E)(i) Subject to clause (ii), sections 8351(a)(1), 
     8440a(a)(1), 8440b(a)(1), 8440c(a)(1), 8440d(a)(1), and 
     8440e(a)(1) shall be applied in a manner consistent with the 
     purposes of this paragraph.
       ``(ii) The Secretary concerned may, with respect to members 
     of the uniformed services under the authority of such 
     Secretary, establish such special rules as such Secretary 
     considers necessary for the administration of this 
     subparagraph, including rules in accordance with which such 
     Secretary may--
       ``(I) provide for delayed automatic enrollment; or
       ``(II) preclude or suspend the application of automatic 
     enrollment.''.
       (b) Technical Amendment.--Section 8432(b)(1) of title 5, 
     United States Code, is amended by striking the parenthetical 
     matter in subparagraph (B).

     SEC. 103. QUALIFIED ROTH CONTRIBUTION PROGRAM.

       (a) In General.--Subchapter III of chapter 84 of title 5, 
     United States Code, is amended by inserting after section 
     8432c the following:

     ``Sec. 8432d. Qualified Roth contribution program

       ``(a) Definitions.--For purposes of this section--
       ``(1) the term `qualified Roth contribution program' means 
     a program described in paragraph (1) of section 402A(b) of 
     the Internal Revenue Code of 1986 which meets the 
     requirements of paragraph (2) of such section; and
       ``(2) the terms `designated Roth contribution' and 
     `elective deferral' have the meanings given such terms in 
     section 402A of the Internal Revenue Code of 1986.
       ``(b) Authority To Establish.--The Board shall by 
     regulation provide for the inclusion in the Thrift Savings 
     Plan of a qualified Roth contribution program, under such 
     terms and conditions as the Board may prescribe.
       ``(c) Required Provisions.--The regulations under 
     subsection (b) shall include--
       ``(1) provisions under which an election to make designated 
     Roth contributions may be made--
       ``(A) by any individual who is eligible to make 
     contributions under section 8351, 8432(a), 8440a, 8440b, 
     8440c, 8440d, or 8440e; and
       ``(B) by any individual, not described in subparagraph (A), 
     who is otherwise eligible to make elective deferrals under 
     the Thrift Savings Plan;
       ``(2) any provisions which may, as a result of enactment of 
     this section, be necessary in order to clarify the meaning of 
     any reference to an `account' made in section 8432(f), 8433, 
     8434(d), 8435, 8437, or any other provision of law; and
       ``(3) any other provisions which may be necessary to carry 
     out this section.''.
       (b) Clerical Amendment.--The analysis for chapter 84 of 
     title 5, United States Code, is amended by inserting after 
     the item relating to section 8432c the following:

``8432d. Qualified Roth contribution program.''.

     SEC. 104. AUTHORITY TO ESTABLISH SELF-DIRECTED INVESTMENT 
                   WINDOW.

       (a) In General.--Section 8438(b)(1) of title 5, United 
     States Code, is amended--
       (1) in subparagraph (D), by striking ``and'' at the end;
       (2) in subparagraph (E), by striking the period and 
     inserting ``; and''; and
       (3) by adding after subparagraph (E) the following:
       ``(F) a self-directed investment window, if the Board 
     authorizes such window under paragraph (5).''.
       (b) Requirements.--Section 8438(b) of title 5, United 
     States Code, is amended by adding at the end the following:
       ``(5)(A) The Board may authorize the addition of a self-
     directed investment window under the Thrift Savings Plan if 
     the Board determines that such addition would be in the best 
     interests of participants.
       ``(B) The self-directed investment window shall be limited 
     to--
       ``(i) low-cost, passively-managed index funds that offer 
     diversification benefits; and
       ``(ii) other investment options, if the Board determines 
     the options to be appropriate retirement investment vehicles 
     for participants.
       ``(C) The Board shall ensure that any administrative 
     expenses related to use of the self-directed investment 
     window are borne solely by the participants who use such 
     window.
       ``(D) The Board may establish such other terms and 
     conditions for the self-directed investment window as the 
     Board considers appropriate to protect the interests of 
     participants, including requirements relating to risk 
     disclosure.
       ``(E) The Board shall consult with the Employee Thrift 
     Advisory Council (established under section 8473) before 
     establishing any self-directed investment window.''.

     SEC. 105. REPORTING REQUIREMENTS.

       (a) Annual Report.--The Board shall, not later than June 30 
     of each year, submit to Congress an annual report on the 
     operations of the Thrift Savings Plan. Such report shall 
     include, for the prior calendar year, information on the 
     number of participants as of the last day of such prior 
     calendar year, the median balance in participants' accounts 
     as of such last day, demographic information on participants, 
     the percentage allocation of amounts among investment funds 
     or options, the status of the development and implementation 
     of the self-directed investment window, the diversity 
     demographics of any company, investment adviser, or other 
     entity retained to invest and manage the assets of the Thrift 
     Savings Fund, and such other information as the Board 
     considers appropriate. A copy of each annual report under 
     this subsection shall be made available to the public through 
     an Internet website.
       (b) Reporting of Fees and Other Information.--
       (1) In general.--The Board shall include in the periodic 
     statements provided to participants under section 8439(c) of 
     title 5, United States Code, the amount of the investment 
     management fees, administrative expenses, and any other fees 
     or expenses paid with respect to each investment fund and 
     option under the Thrift Savings Plan. Any such statement 
     shall also provide a statement notifying participants as to 
     how they may access the annual report described in subsection 
     (a), as well as any other information

[[Page 9528]]

     concerning the Thrift Savings Plan that might be useful.
       (2) Use of estimates.--For purposes of providing the 
     information required under this subsection, the Executive 
     Director may provide a reasonable and representative estimate 
     of any fees or expenses described in paragraph (1) and shall 
     indicate any such estimate as being such an estimate. Any 
     such estimate shall be based on the previous year's 
     experience.
       (c) Definitions.--For purposes of this section--
       (1) the term ``Board'' has the meaning given such term by 
     8401(5) of title 5, United States Code;
       (2) the term ``participant'' has the meaning given such 
     term by section 8471(3) of title 5, United States Code; and
       (3) the term ``account'' means an account established under 
     section 8439 of title 5, United States Code.

     SEC. 106. ACKNOWLEDGEMENT OF RISK.

       (a) In General.--Section 8439(d) of title 5, United States 
     Code, is amended--
       (1) by striking the matter after ``who elects to invest 
     in'' and before ``shall sign an acknowledgement'' and 
     inserting ``any investment fund or option under this chapter, 
     other than the Government Securities Investment Fund,''; and
       (2) by striking ``either such Fund'' and inserting ``any 
     such fund or option''.
       (b) Coordination With Provisions Relating to Fiduciary 
     Responsibilities, Liabilities, and Penalties.--Section 
     8477(e)(1)(C) of title 5, United States Code, is amended--
       (1) by redesignating subparagraph (C) as subparagraph 
     (C)(i); and
       (2) by adding at the end the following:
       ``(ii) A fiduciary shall not be liable under subparagraph 
     (A), and no civil action may be brought against a fiduciary--
       ``(I) for providing for the automatic enrollment of a 
     participant in accordance with section 8432(b)(2)(A);
       ``(II) for enrolling a participant in a default investment 
     fund in accordance with section 8438(c)(2); or
       ``(III) for allowing a participant to invest through the 
     self-directed investment window or for establishing 
     restrictions applicable to participants' ability to invest 
     through the self-directed investment window.''.

            Subtitle B--Other Retirement-Related Provisions

     SEC. 111. CREDIT FOR UNUSED SICK LEAVE.

       (a) In General.--Section 8415 of title 5, United States 
     Code, is amended--
       (1) by redesignating the second subsection (k) and 
     subsection (l) as subsections (l) and (m), respectively; and
       (2) in subsection (l) (as so redesignated by paragraph 
     (1))--
       (A) by striking ``(l) In computing'' and inserting ``(l)(1) 
     In computing''; and
       (B) by adding at the end the following:
       ``(2) Except as provided in paragraph (1), in computing an 
     annuity under this subchapter, the total service of an 
     employee who retires on an immediate annuity or who dies 
     leaving a survivor or survivors entitled to annuity includes 
     the days of unused sick leave to his credit under a formal 
     leave system, except that these days will not be counted in 
     determining average pay or annuity eligibility under this 
     subchapter. For purposes of this subsection, in the case of 
     any such employee who is excepted from subchapter I of 
     chapter 63 under section 6301(2)(x)-(xiii), the days of 
     unused sick leave to his credit include any unused sick leave 
     standing to his credit when he was excepted from such 
     subchapter.''.
       (b) Exception From Deposit Requirement.--Section 8422(d)(2) 
     of title 5, United States Code, is amended by striking 
     ``section 8415(k)'' and inserting ``paragraph (1) or (2) of 
     section 8415(l)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to annuities computed based on 
     separations occurring on or after the date of enactment of 
     this Act.

     SEC. 112. EXEMPTION OF CERTAIN CSRS REPAYMENTS FROM THE 
                   REQUIREMENT THAT THEY BE MADE WITH INTEREST.

       (a) In General.--Section 8334(d)(1) of title 5, United 
     States Code, is amended--
       (1) by striking ``(d)(1)'' and inserting ``(d)(1)(A)''; and
       (2) by adding at the end the following:
       ``(B) No interest under subparagraph (A) shall be required 
     in the case of any deposit to the extent that it represents 
     the amount of any refund that was made to an employee or 
     Member during the period beginning on October 1, 1990, and 
     ending on February 28, 1991.''.
       (b) Applicability.--The amendments made by subsection (a) 
     shall be effective with respect to any annuity, entitlement 
     to which is based on a separation from service occurring on 
     or after the date of enactment of this Act.

     SEC. 113. COMPUTATION OF CERTAIN ANNUITIES BASED ON PART-TIME 
                   SERVICE.

       (a) In General.--Section 8339(p) of title 5, United States 
     Code, is amended by adding at the end the following:
       ``(3) In the administration of paragraph (1)--
       ``(A) subparagraph (A) of such paragraph shall apply with 
     respect to service performed before, on, or after April 7, 
     1986; and
       ``(B) subparagraph (B) of such paragraph--
       ``(i) shall apply with respect to that portion of any 
     annuity which is attributable to service performed on or 
     after April 7, 1986; and
       ``(ii) shall not apply with respect to that portion of any 
     annuity which is attributable to service performed before 
     April 7, 1986.''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall be effective with respect to any annuity, entitlement 
     to which is based on a separation from service occurring on 
     or after the date of enactment of this Act.

     SEC. 114. TREATMENT OF MEMBERS OF THE UNIFORMED SERVICES 
                   UNDER THE THRIFT SAVINGS PLAN.

       (a) Sense of Congress.--It is the sense of Congress that--
       (1) members of the uniformed services should have a 
     retirement system that is at least as generous as the one 
     which is available to Federal civilian employees; and
       (2) Federal civilian employees receive matching 
     contributions from their employing agencies for their 
     contributions to the Thrift Savings Fund, but the costs of 
     requiring such a matching contribution from the Department of 
     Defense could be significant.
       (b) Reporting Requirement.--Not later than 180 days after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall report to Congress on--
       (1) the cost to the Department of Defense of providing a 
     matching payment with respect to contributions made to the 
     Thrift Savings Fund by members of the Armed Forces;
       (2) the effect that requiring such a matching payment would 
     have on recruitment and retention; and
       (3) any other information that the Secretary of Defense 
     considers appropriate.

     SEC. 115. AUTHORITY TO DEPOSIT REFUNDS UNDER FERS.

       (a) Deposit Authority.--Section 8422 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``(i)(1) Each employee or Member who has received a refund 
     of retirement deductions under this or any other retirement 
     system established for employees of the Government covering 
     service for which such employee or Member may be allowed 
     credit under this chapter may deposit the amount received, 
     with interest. Credit may not be allowed for the service 
     covered by the refund until the deposit is made.
       ``(2) Interest under this subsection shall be computed in 
     accordance with paragraphs (2) and (3) of section 8334(e) and 
     regulations prescribed by the Office. The option under the 
     third sentence of section 8334(e)(2) to make a deposit in one 
     or more installments shall apply to deposits under this 
     subsection.
       ``(3) For the purpose of survivor annuities, deposits 
     authorized by this subsection may also be made by a survivor 
     of an employee or Member.''.
       (b) Technical and Conforming Amendments.--
       (1) Definitional amendment.--Section 8401(19)(C) of title 
     5, United States Code, is amended by striking ``8411(f);'' 
     and inserting ``8411(f) or 8422(i);''.
       (2) Crediting of deposits.--Section 8422(c) of title 5, 
     United States Code, is amended by adding at the end the 
     following: ``Deposits made by an employee, Member, or 
     survivor also shall be credited to the Fund.''.
       (3) Section heading.--(A) The heading for section 8422 of 
     title 5, United States Code, is amended to read as follows:

     ``Sec. 8422. Deductions from pay; contributions for other 
       service; deposits''.

       (B) The analysis for chapter 84 of title 5, United States 
     Code, is amended by striking the item relating to section 
     8422 and inserting the following:

``8422. Deductions from pay; contributions for other service; 
              deposits.''.
       (4) Restoration of annuity rights.--The last sentence of 
     section 8424(a) of title 5, United States Code, is amended by 
     striking ``based.'' and inserting ``based, until the employee 
     or Member is reemployed in the service subject to this 
     chapter.''.

     SEC. 116. RETIREMENT CREDIT FOR SERVICE OF CERTAIN EMPLOYEES 
                   TRANSFERRED FROM DISTRICT OF COLUMBIA SERVICE 
                   TO FEDERAL SERVICE.

       (a) Retirement Credit.--
       (1) In general.--Any individual who is treated as an 
     employee of the Federal Government for purposes of chapter 83 
     or chapter 84 of title 5, United States Code, on or after the 
     date of enactment of this Act who performed qualifying 
     District of Columbia service shall be entitled to have such 
     service included in calculating the individual's creditable 
     service under sections 8332 or 8411 of title 5, United States 
     Code, but only for purposes of the following provisions of 
     such title:
       (A) Sections 8333 and 8410 (relating to eligibility for 
     annuity).
       (B) Sections 8336 (other than subsections (d), (h), and (p) 
     thereof) and 8412 (relating to immediate retirement).
       (C) Sections 8338 and 8413 (relating to deferred 
     retirement).
       (D) Sections 8336(d), 8336(h), 8336(p), and 8414 (relating 
     to early retirement).
       (E) Section 8341 and subchapter IV of chapter 84 (relating 
     to survivor annuities).
       (F) Section 8337 and subchapter V of chapter 84 (relating 
     to disability benefits).

[[Page 9529]]

       (2) Treatment of detention officer service as law 
     enforcement officer service.--Any portion of an individual's 
     qualifying District of Columbia service which consisted of 
     service as a detention officer under section 2604(2) of the 
     District of Columbia Government Comprehensive Merit Personnel 
     Act of 1978 (sec. 1-626.04(2), D.C. Official Code) shall be 
     treated as service as a law enforcement officer under 
     sections 8331(20) or 8401(17) of title 5, United States Code, 
     for purposes of applying paragraph (1) with respect to the 
     individual.
       (3) Service not included in computing amount of any 
     annuity.--Qualifying District of Columbia service shall not 
     be taken into account for purposes of computing the amount of 
     any benefit payable out of the Civil Service Retirement and 
     Disability Fund.
       (b) Qualifying District of Columbia Service Defined.--In 
     this section, ``qualifying District of Columbia service'' 
     means any of the following:
       (1) Service performed by an individual as a nonjudicial 
     employee of the District of Columbia courts--
       (A) which was performed prior to the effective date of the 
     amendments made by section 11246(b) of the Balanced Budget 
     Act of 1997; and
       (B) for which the individual did not ever receive credit 
     under the provisions of subchapter III of chapter 83 or 
     chapter 84 of title 5, United States Code (other than by 
     virtue of section 8331(1)(iv) of such title).
       (2) Service performed by an individual as an employee of an 
     entity of the District of Columbia government whose functions 
     were transferred to the Pretrial Services, Parole, Adult 
     Supervision, and Offender Supervision Trustee under section 
     11232 of the Balanced Budget Act of 1997--
       (A) which was performed prior to the effective date of the 
     individual's coverage as an employee of the Federal 
     Government under section 11232(f) of such Act; and
       (B) for which the individual did not ever receive credit 
     under the provisions of subchapter III of chapter 83 or 
     chapter 84 of title 5, United States Code (other than by 
     virtue of section 8331(1)(iv) of such title).
       (3) Service performed by an individual as an employee of 
     the District of Columbia Public Defender Service--
       (A) which was performed prior to the effective date of the 
     amendments made by section 7(e) of the District of Columbia 
     Courts and Justice Technical Corrections Act of 1998; and
       (B) for which the individual did not ever receive credit 
     under the provisions of subchapter III of chapter 83 or 
     chapter 84 of title 5, United States Code (other than by 
     virtue of section 8331(1)(iv) of such title).
       (4) In the case of an individual who was an employee of the 
     District of Columbia Department of Corrections who was 
     separated from service as a result of the closing of the 
     Lorton Correctional Complex and who was appointed to a 
     position with the Bureau of Prisons, the District of Columbia 
     courts, the Pretrial Services, Parole, Adult Supervision, and 
     Offender Supervision Trustee, the United States Parole 
     Commission, or the District of Columbia Public Defender 
     Service, service performed by the individual as an employee 
     of the District of Columbia Department of Corrections--
       (A) which was performed prior to the effective date of the 
     individual's coverage as an employee of the Federal 
     Government; and
       (B) for which the individual did not ever receive credit 
     under the provisions of subchapter III of chapter 83 or 
     chapter 84 of title 5, United States Code (other than by 
     virtue of section 8331(1)(iv) of such title).
       (c) Certification of Service.--The Office of Personnel 
     Management shall accept the certification of the appropriate 
     personnel official of the government of the District of 
     Columbia or other independent employing entity concerning 
     whether an individual performed qualifying District of 
     Columbia service and the length of the period of such service 
     the individual performed.

TITLE II--SPECIAL SURVIVOR INDEMNITY ALLOWANCE FOR SURVIVING SPOUSES OF 
                          ARMED FORCES MEMBERS

     SEC. 201. INCREASE IN MONTHLY AMOUNT OF SPECIAL SURVIVOR 
                   INDEMNITY ALLOWANCE FOR WIDOWS AND WIDOWERS OF 
                   DECEASED MEMBERS OF THE ARMED FORCES AFFECTED 
                   BY REQUIRED SURVIVOR BENEFIT PLAN ANNUITY 
                   OFFSET FOR DEPENDENCY AND INDEMNITY 
                   COMPENSATION.

       Section 1450(m)(2) of title 10, United States Code, is 
     amended--
       (1) in subparagraph (B), by striking ``$60'' and inserting 
     ``$95'';
       (2) in subparagraph (C), by striking ``$70'' and inserting 
     ``$105'';
       (3) in subparagraph (D), by striking ``$80'' and inserting 
     ``$120'';
       (4) in subparagraph (E), by striking ``$90; and'' and 
     inserting ``$130;'' and
       (5) by striking subparagraph (F) and inserting the 
     following new subparagraphs:
       ``(F) for months during fiscal year 2014, $330;
       ``(G) for months during fiscal year 2015, $335; and
       ``(H) for months during fiscal year 2016 ending before the 
     termination date specified in paragraph (6), $345.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York (Mr. Towns) and the gentleman from California (Mr. Issa) each will 
control 20 minutes.
  The Chair recognizes the gentleman from New York.


                             General Leave

  Mr. TOWNS. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their 
remarks.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.
  Mr. TOWNS. Mr. Speaker, I yield myself such time as I may consume.
  Today, I am pleased to bring to the floor H.R. 1804, the Federal 
Retirement Reform Act of 2009. The bill modernizes the Thrift Savings 
Plan, the retirement savings plan for Federal employees. The 
legislation includes several other important retirement reforms for 
Federal employees and members of the Armed Forces.
  This bill enjoyed strong bipartisan support in the last Congress when 
it passed the House as H.R. 1108. Two weeks ago, the Oversight and 
Government Reform Committee again considered and reported favorably the 
current language of this bill. I am pleased that the bill makes further 
progress in ending the military family tax which unfairly penalizes the 
survivors of those who died in service or as a result of their service-
connected injuries.
  As Chairman Skelton will explain, this bill increases the monthly 
amounts paid to surviving spouses who are denied the full amount of 
their annuity under the Survivor Benefit Plan. Our enhancement to the 
TSP program also will benefit military members and their families.
  The Federal Employee Thrift Savings Plan is one of the best 
retirement savings programs in the Nation. The plan runs with very low 
cost and is a model for both the private sector and other governments. 
The bill we are considering today will strengthen and modernize the 
TSP.
  At the suggestion of the Federal Retirement Thrift Investment Board, 
the bill provides for automatic enrollment in TSP for new Federal 
civilian employees. Employees have the opportunity to choose whether to 
enroll or not, but for those who do not make any decision enrollment 
would be the default. The decision on automatic enrollment for members 
of the uniformed services is at the discretion of the Secretaries of 
the military departments.
  The bill would also provide a Roth contribution option for TSP. With 
a Roth option, employee contributions are made after taxes are 
deducted, and the employee does not pay taxes on the fund upon 
withdrawal. This option is currently available in many private sector 
retirement plans today.
  The bill also includes a provision to allow employees covered by the 
Federal Employees Retirement System to receive credit for unused sick 
leave towards their retirement annuity, as is currently the case for 
employees covered by the older Civil Service Retirement System. The 
committee also adopted amendments to make it easier for former 
employees to reinstate their retirement credits if they return to 
Federal service, and to work part-time at the end of their career.
  I want to recognize the Federal Workforce Subcommittee chairman, Mr. 
Lynch, who has worked really hard on this, and for his work on these 
issues and the bill. I would also like to thank Representative Norton, 
Representative Van Hollen, and Representative Connolly for their 
thoughtful amendments that improve the bill.
  I would like to thank the Oversight Committee ranking member, Mr. 
Issa of California, for his amendments that strengthen the legislation 
as it relates to members of the uniformed services. Thank you for your 
input.
  Finally, I would like to thank Chairman Skelton and the Armed 
Services Committee for their contribution to this bill that will 
provide better financial protection to the families of our military men 
and women. I urge my colleagues to support this legislation.

[[Page 9530]]

  I reserve the balance of my time.
  Mr. ISSA. I reserve the balance of my time.
  Mr. TOWNS. I recognize the gentleman from Missouri (Mr. Skelton) for 
3 minutes, the person who has worked really hard on this and has done a 
fantastic job. And of course, when it comes to the military and 
military personnel, he is always there doing the right thing.
  Mr. SKELTON. First, I thank the gentleman from New York (Mr. Towns) 
for yielding. I rise in strong support of his bill, H.R. 1804, and I 
thank him for his partnership on this bill.
  In addition to the many good things this legislation does for Federal 
civil servants, I am pleased to report that this bill includes a 
provision of great importance to the surviving spouses of 
servicemembers who have died as a result of service-connected 
conditions.
  I want to thank Chairman Towns for his great assistance in making it 
possible to address this issue in this bill. Members of the Committee 
on Armed Services, which I am privileged to chair, are very 
appreciative of the cooperation that made the legislation possible, 
because it is unlikely that the funding required to support the change 
could have otherwise been found.
  I would also commend my colleague, my friend, a member of the Armed 
Services Committee, Congressman Solomon Ortiz, who has introduced 
legislation on the SBP offset and has been a great leader and advocate 
for the military families affected by this issue.
  The provision would increase the monthly special survivors indemnity 
allowance beginning in fiscal year 2010 with a $35 increase, resulting 
in a monthly payment of $95, and concludes in fiscal year 2016 with a 
$245 increase, resulting in a monthly payment of $345.
  Although the improvements are substantial and a welcomed addition for 
our surviving spouses, the proposal is an incremental change that falls 
short of the ultimate objective to eliminate the offset of the Survivor 
Benefit Plan, or SBP as it is called, by the amount of Dependency and 
Indemnity Compensation, or DIC, received from the Department of 
Veterans Affairs.
  This so-called widow's tax has long denied surviving family members 
the full payment of their SBP benefits. I can assure our surviving 
spouses and my colleagues on the Armed Services Committee that we will 
continue to explore every opportunity to pursue legislation that brings 
us closer to eliminating the widow's tax, just as we are doing today, 
with the help of Chairman Towns. H.R. 1804 provides a robust step in 
that direction, and I encourage my colleagues to vote for it.
  Mr. ISSA. Mr. Speaker, I would like to thank Chairman Skelton and 
Chairman Towns for the hard work they put into this bill. I am here 
today to say this is a good bill on the front end. I am sad to say this 
is a bad bill on the back end.
  What this bill does, which was worked out on a very bipartisan basis 
with all speaking here today, is in fact it does recognize that modern 
retirement plans should have as many options as possible, and certainly 
adding the Roth IRA option for some Federal workers is extremely good.
  Additionally, the advantages for the military and military commanders 
to be able to look at their individual needs of their services and 
allow for different opting in and out patterns of course makes sense, 
and I appreciate Chairman Towns' willingness to work on that fix during 
the markup.
  The majority in our committee and the minority in our committee found 
this to be a very bipartisan issue to work on, and I appreciate the 
fact that this is good for the troops and on paper saves money. 
However, I have to say, the back end of this bill, sponsored by Members 
of the majority not speaking yet here today, is nothing but a piggy 
bank for other projects, for special interest projects.
  The fact that this is a tobacco bill begs the question of: If we were 
to free up 2 or 3 or more billion dollars from a military budget in 
outlying years, why would this be a reason, when we have trillions of 
dollars of deficits, to spend money? I think the majority knows it is 
not.
  In fact, the idea that you on paper save money by members of the 
government opting out of pre-tax contributions in favor of the Roth IRA 
post-tax contribution and thus creating additional tax revenue, at a 
time when we have a deficit at the highest in our history, says not one 
penny ever saved will in fact go to deficit reduction under this 
majority.
  So, will I vote for this bill? Of course, I will. It does a lot of 
good things for our Federal workers. The fact, though, that the 
provision for family smoking prevention is not funded through the 
ordinary course of revenue but rather through this scheme that, 
depending upon how many workers choose Roth IRAs, may or may not 
produce the money that is about to be spent, I find wrong and I find 
misguided.
  As the chairman said, there were a number of things we did for the 
military. There is more that we should do. Only the U.S. military is 
eligible for TSP but receives no match.
  It is very clear that, in a modern military, one in which only about 
one in four serve until retirement on active duty, the TSP is all the 
military takes with them when they leave. That famous 20-year 
retirement does not vest in 5 years the way it does with the majority 
and the minority, all of us as Members of Congress; in fact, it takes 
18\1/2\ years to lock in a military retirement and 20 years to 
appreciate it. Clearly, the military does not enjoy what we in Congress 
enjoy, which is TSP, with a match, and a 5-year vesting schedule so 
that we can take our retirement plan with us whenever we leave, in as 
few years as 5.
  I do once again thank all the Members on both sides of the aisle that 
worked hard on the front ends of this bill. I believe it has merit and 
should be positively received and voted for.
  I reserve the balance of my time.
  Mr. TOWNS. Mr. Speaker, I recognize one of the hardest working 
Members in this body, the chairman of the Federal Workforce 
Subcommittee, Stephen Lynch, for 3 minutes.
  Mr. LYNCH. I thank the gentleman for his kind words.
  Mr. Speaker, I rise in support of both Chairman Towns, the gentleman 
from Brooklyn, and also Mr. Skelton from Missouri in their endorsement 
of H.R. 1804, their sponsorship as well. This is the Federal Retirement 
Reform Act that includes enhancements to the Thrift Savings Plan as 
well as to other Federal retirement programs. And I do so because I am 
in agreement with both of those gentlemen that the TSP's offerings to 
Federal employees must finally be allowed to catch up to private sector 
401(k) plans.
  Given the Thrift Savings Plan's integral role in providing retirement 
income security for Federal employees, it is time for Congress to adopt 
and extend the auto enrollment plan to TSP participants. This 
legislation would allow the Thrift Savings Plan to offer a Roth option. 
And both sides have talked about the impact of that.
  I think it is important to point out that by having Federal employees 
using this Roth option, it is calculated that we will bring in 
approximately $2.2 billion in new taxes, new tax revenues from Federal 
contributions from Federal employees over the next 10 years.

                              {time}  1230

  This bill, unlike a lot of other bills on this floor, basically pays 
for itself.
  Mr. Speaker, in my role as chairman of the Federal Workforce, Postal 
Service, and the District of Columbia Subcommittee, I believe that the 
Federal Government must ensure that its benefits allow it to retain and 
recruit the best and the brightest. Toward that end, I authored H.R. 
1263, legislation that would make improvements to the TSP, as well as 
to the Federal retirement programs. I have been pleased to work with 
both Chairman Towns and former Chairman Waxman on the issue, as well as 
my friend and colleague, Jim Moran from Virginia.
  This bill facilitates amending the Federal Employees Retirement 
System to provide employees with retirement credit for unused sick 
leave. Federal executives, managers and employees have called for 
crediting unused sick leave in the same way that the Civil

[[Page 9531]]

Service Retirement System treats unused sick leave.
  Additionally, this legislation fixes a CSRS annuity calculation 
problem for those employees who wish to phase down to part-time work at 
the end of their Federal careers. That is an important option given the 
aging demographics of our Federal workforce.
  At a time of an overall aging workforce in America, and a 
particularly aging Federal workforce, the government as an employer 
must take the lead in addressing these workplace realities.
  I conclude my remarks by stating that I give my full support to these 
civil service provisions. On behalf of the National Active and Retired 
Federal Employees Association, NARFE, I would also like to make it 
clear that this new obligation--this is very important--this new 
obligation does not result in an ``unfunded obligation'' for the Civil 
Service Retirement and Disability Fund as current law provides that new 
payments are fully funded. And I am submitting an additional 
clarification to that effect as part of the Record.
  Mr. Speaker, I would like to expand on a provision contained in H.R. 
1804, the ``Federal Retirement Reform Act of 2009,'' which makes 
improvements to the Thrift Savings Plan (TSP) and to the federal 
retirement programs. By amending the Federal Employees Retirement 
System (FERS) to credit unused sick leave for retirement purposes, the 
measure will modestly increase certain federal employees' retirement 
benefits. Thus, this bill will result in additional benefits, though 
small, from the Civil Service Retirement and Disability Trust Fund 
(CSRDF). However, on behalf of the National Active and Retired Federal 
Employees Association (NARFE), I want to make it clear that this new 
obligation does not result in an ``unfunded obligation'' of the CSRDF 
as current law expressly provides that new payments from the CSRDF are 
fully funded. Since the creation of FERS in the 1980's, Section 8348f 
of Title 5 of the United States Code has ensured the integrity of the 
CSRDF by automatically setting-aside funds to cover the cost of any new 
benefits. Additionally, H.R. 1804 results in sufficient savings to 
cover the cost of this modest benefit increase under FERS.
  Mr. ISSA. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, once again, I have to say it is not the front end of 
this bill that anyone should object to. The part we are seeing here 
today is excellent. But as Chairman Lynch said, and said quite 
rightfully, it is calculated that this piece of legislation will save 
net approximately $2.2 billion for better or worse on the backs of our 
retirees.
  It is a short-term savings, Mr. Speaker. It is not, in fact, a long-
term savings. Any time you do collect money now but don't collect it 
later, it is going to eventually catch up. So for the short period of 
time in which this $2.2 billion is generated, it certainly would have 
been appropriate for all of us to be able to use this money in the 
committee for the Federal workforce. And the part that upsets me is 
that we are neither returning it to the taxpayers in the form of less 
deficit, nor are we using it for structural changes for the Federal 
workforce, whether uniform military or civilian. That is the only 
problem.
  Again, what this bill does, it does well. What this bill eventually 
does is, in fact, fund a pet project of the former chairman, Mr. 
Waxman, for tobacco programs, something that has certainly been funded 
very well, funded on the backs of plenty of other programs. Candidly, I 
don't believe that this is the best use of the money at a time we are 
running trillions in deficits.
  I reserve the balance of my time.
  Mr. TOWNS. Mr. Speaker, I yield 2 minutes to the chairman of the 
Readiness Subcommittee on Armed Services, the gentleman from Texas, Mr. 
Solomon Ortiz.
  Mr. ORTIZ. Chairmen Towns, Skelton and Henry Brown, thank you so much 
for bringing this bill to the floor.
  I rise in support of the bill before us today.
  Today, the Congress takes another important step toward providing 
surviving spouses of military servicemembers relief by addressing a 
long-standing problem in our military survivors benefit system called 
the widow's tax.
  Like most matters that involve Federal payments, this is a complex 
yet pivotal matter of importance to the survivors of our 
servicemembers. Essentially, if servicemembers purchase a survivor's 
benefit plan for their loved ones, the survivor receives a portion of 
the servicemember's retired pay upon his or her death. If that 
servicemember dies of a service-connected cause, the survivor is also 
entitled to compensation from the VA.
  However, per current law, the survivor benefit payment is decreased 
by the amount of the VA payment dollar for dollar, and that's the 
amount the survivor will get, not the full amount of both entitlements.
  This affects approximately 59,000 widows. For too long, the offset 
between the two programs has done precisely the opposite of what they 
are intended to do, protect the surviving loved ones.
  The survivors of those who defend our country deserve our very best. 
Congress addressed the unfairness of the offset in the Fiscal Year 2008 
Defense Authorization Act by creating a special monthly survivor 
allowance for dependents subject to the offset.
  I am pleased that this bill considered today builds upon those 
efforts by providing a substantial increase in the monthly payment to 
spouses from the survivor allowance. Although there is still much work 
to be done, this bill is an important step towards the complete 
elimination of the offset and reflects our bipartisan desire to provide 
for surviving dependents of military servicemen and -women.
  And I want to thank all those involved in bringing this bill to the 
floor.
  I support it, and I urge my colleagues to support this bill.
  Mr. ISSA. Mr. Speaker, I reserve the remainder of my time.
  Mr. TOWNS. Mr. Speaker, I yield 1 minute to the gentlewoman from 
California (Mrs. Davis), the chairwoman of the Military Personnel 
Subcommittee.
  Mrs. DAVIS of California. Mr. Speaker, I rise in support of H.R. 
1804. Earlier this year, spouses of servicemembers from current and 
past wars stood up during a Military Personnel Subcommittee hearing to 
share their stories about how the SBP/DIC offset has impacted their 
lives. Their stories, I can assure you, were compelling and 
demonstrated why the goal of eliminating this offset is so important.
  While the enhancement of the monthly benefits under the Special 
Survivor Indemnity Allowance provided in this bill does not end the so-
called widow's tax, it is a strong step in the right direction. We have 
done the best we could with this bill given the resources available, 
and strong support for H.R. 1804 from the military associations has 
confirmed the value of our effort. However, I do believe that more 
needs to be done, and I intend to keep searching for opportunities to 
make improvements with the hope that someday we can find a permanent 
solution.
  I want to thank Chairman Towns for sponsoring a bill that provides so 
many benefits to our civilian and military workforce, and Mr. Ortiz for 
his leadership on the SBP/DIC issue. I urge my colleagues to vote in 
favor of H.R. 1804.
  Mr. ISSA. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I continue to urge my colleagues to vote for this bill 
because of all the good things it does. I also urge my colleagues to 
continue to look at what we owe our Federal workforce, and particularly 
as previous speakers have said, our uniform men and women. Men and 
women in uniform enter the service voluntarily. Four years, 6 years, 8 
years later, they often leave. As a matter of fact, with the up-or-out 
program, many of them are not promoted and must leave. Therefore, they 
leave the military service with less than 20 years. Therefore, they 
have nothing. They have their GI Bill, but they have no retirement.
  Only, only in the Federal uniform services do we treat people that 
way. The President served 1 day, and he was eligible for his lifetime 
benefit. I don't begrudge the President hundreds of thousands of 
dollars a year for the rest of his life or any of the previous 
Presidents. But it is amazing to me that the President vests as soon as 
he is sworn in. Members of Congress fully vest after just 5 years; and 
yet, we are looking at our men and women in uniform

[[Page 9532]]

being shot at, being injured, often being forced into early retirement 
or early leaving of the service with 10 or 20 or 30 percent disability, 
just enough they can't really do the job they came in to do, but not 
enough to get, if you will, a handsome retirement. They then enter the 
workforce later in life, and they enter with instead of a head start, 
with an impairment.
  This $2.2 billion was only about one-tenth of what it would have 
taken to provide matching TSP funds for our men and women in uniform. 
Certainly, it is even a fraction of what it would take to give them a 
defined benefit plan, even close to what we here in Congress get. But 
certainly, as we pass this piece of legislation today as a downpayment 
for reform, we need to begin looking at what it is going to take to 
provide our men and women in uniform equal justice with the rest of the 
Federal workforce.
  I reserve the balance of my time.
  Mr. TOWNS. Mr. Speaker, I yield 2 minutes to Congressman Connolly 
from the great State of Virginia.
  Mr. CONNOLLY of Virginia. I thank the distinguished chairman.
  Mr. Speaker, I rise today in support of the Federal Retirement Reform 
Act of 2009. This legislation eliminates inconsistencies in the Federal 
retirement system and provides greater retirement security for Federal 
employees. It helps ensure we will not face a brain drain that could 
cripple Federal agencies. Within the next decade 47 percent of 
supervisory staff in the Federal workforce will be eligible for 
retirement. We must take action to ensure that Federal agencies 
continue to have the institutional knowledge and expertise that allows 
government to function smoothly and effectively.
  The Federal Retirement Reform Act of 2009 makes several legislative 
reforms. This legislation enables members of the civil service and the 
Federal Employees Retirement Service to redeposit their cashed-out 
annuities if they decide to re-enter civil service. The committee 
adopted my amendment to H.R. 1256 by adding this language which is 
contained in the bipartisan FERS Redeposit Act.
  I am pleased that we now have the opportunity to enact this 
legislation that will attract talented employees back to the Federal 
Government. We should be consistent with all of our Federal workers. 
Employees in the Civil Service Retirement System can already redeposit 
their annuities. Allowing FERS employees to do the same is only fair. 
This bill also ensures that FERS employees receive annuity credit for 
unused sick leave, just as CSRS employees do. Again, it is an issue of 
equity to provide those employees with the same benefits. This reform 
will improve the efficiency of the Federal Government by reducing 
absenteeism.
  In addition, the bill will enable employees in the Civil Service 
Retirement System to work part-time at the end of their careers without 
losing retirement benefits. This provision will help retain talented 
workers and assist in training future supervisors and executive-level 
staff.
  I applaud the distinguished chairman, Mr. Towns, for shepherding this 
important legislation through committee and look forward to its passage 
to help ensure a vibrant Federal workforce for years to come.
  Mr. ISSA. Mr. Speaker, it is my distinct pleasure to yield 2 minutes 
to the ranking member of the Subcommittee on the Workforce, Mr. 
Chaffetz of Utah.
  Mr. CHAFFETZ. Mr. Speaker, the gentleman from Virginia (Mr. Connolly) 
just indicated his support of this bill. I have a brief question. I 
would like to yield some time to him. He was quoted in the Washington 
Post as saying, ``We need to reverse the Bush economic policies by 
balancing the budget.'' My question to him is does he intend to support 
the President's budget today which would double the national debt?
  I yield time to the gentleman from Virginia.
  Mr. CONNOLLY of Virginia. I would say to my good friend in response, 
when the budget comes to the floor this afternoon, I would be glad to 
talk about that subject. Right now we are talking about Federal 
employees and trying to make sure that they have what they need.
  Mr. CHAFFETZ. Reclaiming my time, Mr. Speaker, my question for the 
gentleman from Virginia, I wonder if the gentleman from the State of 
Virginia knows that this Democratic budget raises taxes by $1.2 
trillion or that it makes each American's share of the national debt 
$70,000. Or that it opens the door to a national energy tax that will 
cost every family at least $3,128 a year.
  Mr. Speaker, I would like to yield some time to the gentleman from 
Virginia to respond.
  Mr. CONNOLLY of Virginia. Well, as a member of the Budget Committee, 
I'm very aware of the fact that actually tax cuts for middle class 
families in this budget exceed $2 trillion. And again, that will be 
made clear when we have the opportunity to debate the budget on the 
floor of the House. I thought the gentleman wanted me to answer his 
question.
  Mr. TOWNS. Mr. Speaker, I yield 1 minute to Congresswoman Carol Shea-
Porter from New Hampshire.
  Ms. SHEA-PORTER. Mr. Speaker, I rise today in support of the Federal 
Retirement Reform Act which contains a much-needed provision to 
increase the special survivor indemnity allowance for widows or 
widowers of deceased servicemembers.
  When our servicemembers purchase a survivor benefit plan to protect 
their families, they expect their families to receive the full annuity 
they paid for. Unfortunately, if the surviving spouse is eligible for 
VA dependency and indemnity compensation because of a spouse's service-
related death, the survivor benefit annuity is reduced dollar for 
dollar. This is not fair.
  The DIC is meant to compensate survivors for the servicemember's 
death in service. Why would we penalize those servicemembers who have 
the foresight to purchase insurance for their families?
  Our military, and their families, make many sacrifices to serve and 
protect our Nation. We owe them the benefits they earned for their 
service, and we most certainly owe them the insurance they purchased. 
They should not have to worry about their families if they die. This is 
no way to treat those who are willing to put their lives on the line 
for us, and this is no way to treat their families.
  This bill takes another step toward eliminating this unfair widow's 
tax that in effect punishes the families of those who sacrificed their 
lives for this country.
  Mr. ISSA. I continue to reserve the balance of my time.

                              {time}  1245

  Mr. TOWNS. I recognize the gentleman from Virginia (Mr. Moran) for 1 
minute.
  Mr. MORAN of Virginia. Mr. Speaker, I rise in support of this bill 
and, particularly, for three bills that I was proud to sponsor that are 
included, the FERS Redeposit bill, the Part-Time Compensation, and the 
Parity For Retirement Systems. I want to mention a word about the 
parity for retirement systems.
  At a time when those who are in the Federal Employee Retirement 
System are seeing their Thrift Savings Plans tank by 30, sometimes 40 
percent, it's particularly important that they be fully compensated for 
unused sick leave. The reality is that, in the earlier retirement 
system, the so-called CSRS system, Federal employees are fully 
compensated for all unused sick leave at the end of their careers. But 
under the FERS system, if they don't use that sick leave, they lose it. 
And so the Government loses $68 million in productivity from those 
employees who take their sick leave at the very end of their careers. 
That's not an intelligent plan, and the fact is that this bill corrects 
that disparity.
  The entire bill should be passed, and I hope we'll have bipartisan 
support for it. And I thank Mr. Lynch for his leadership on behalf of 
Federal employees.
  Mr. TOWNS. I would like to recognize the gentleman from Virginia, 
Glenn Nye, for 1 minute.
  Mr. NYE. Mr. Speaker, the men and women who sign up to serve our 
country in uniform do so knowing they may

[[Page 9533]]

not return home, and with the expectation that, if the unthinkable 
should happen, their loved ones will be cared for.
  However, because of the so-called ``widow's tax,'' survivor benefits 
paid for by the VA are subtracted from benefits paid by the Department 
of Defense, meaning that families receive less than they should. For 
families of servicemembers killed in Iraq and Afghanistan, this sudden 
loss of income adds an unnecessary burden to the tragedy of losing a 
loved one.
  The widow's tax also strikes the families of older veterans. Often 
the spouses of seriously disabled veterans give up their own careers in 
order to act as caregivers. And when these veterans pass away, the 
reduced benefit is not enough for their widows to make ends meet.
  With this bill we will take a strong step toward righting this wrong 
by increasing the payments to survivors. This is the least we can do 
for our servicemembers, our veterans and their families, and it's the 
right thing to do as a country.
  I urge my colleagues to support this bill.
  Mr. TOWNS. At this time I yield 1\1/2\ minutes to the Congresswoman 
from Washington, D.C., Ms. Eleanor Holmes Norton.
  Ms. NORTON. I want to thank the chairman and the ranking member for 
bringing forth this very important set of bills that benefit Federal 
employees. One that perhaps has not been spoken to I'll speak to now. 
It's the Employees' Equity Act, which restores credible service or 
retirement years to District of Columbia employees who were 
involuntarily transferred to the Federal Government pursuant to the 
Revitalization Act and, in the process, somehow, by an error of 
government, not an error of their own, they have lost retirement years. 
Not money, just years. Some of them are working when they could have 
retired 10 years ago.
  This bill simply restores the years, gives them credit for the years 
so that, in their transfer from the District of Columbia to the Federal 
Government, they haven't lost all of those years of service. They have 
to start over again as if just entering the Federal Government. No one 
intended that.
  And because you, Mr. Chairman, and the ranking member have understood 
this bill, which has been in the Congress for some time, we come 
forward now to correct this mistake. Some of them will retire, some of 
them will stay on, but all of them will have all of their years in 
public service credited to them. I thank you both.
  Mr. TOWNS. Does the gentleman have any further speakers?
  Mr. ISSA. I'll do a very short close, if you want to reserve your 
time to close.
  Mr. TOWNS. I'd like to reserve the time to close.
  Mr. ISSA. Mr. Speaker, I yield myself such time as I may consume.
  Once again, in closing, this is a good bill. As the previous speakers 
have said, we were able to fix a number of ills, including what was 
mentioned by the gentlelady from the District of Columbia.
  What I'm sad about is that we didn't begin to make a down payment on 
some other important areas; certainly, most among them, our uniform 
services. We took the benefit of putting military personnel on to a 
Roth IRA without looking into whether we could do something for them.
  Mr. Speaker, there's no question in this body that our men and women 
in uniform that are not able to retire in 20 years will leave the 
military only with whatever they happen to put into their Thrift 
Savings Plan. They're basically finding themselves encouraged to save 
on what is one of the smallest salaries that anyone could imagine for a 
particular private, corporal or sergeant. And yet, we will not even 
make the 3 percent match we make for ourselves here in Congress.
  So I certainly would hope that, in the foreseeable future, this 
Congress, on a bipartisan basis, as we're doing here today, can see fit 
to make a bipartisan down payment for our men and women in uniform to 
allow their Thrift Savings Plan to have at least some match, which 
today it doesn't have, and leaves them often with no retirement when 
they leave the military.
  With that, I want to thank the chairman for the markup on this bill, 
which was done in a very cordial fashion, pre-agreed and worked out so 
that it could be done efficiently and we could get the best possible 
bill to the floor.
  I yield back.
  Mr. TOWNS. How much time remains?
  The SPEAKER pro tempore. The gentleman has 1\1/4\ minutes remaining.
  Mr. TOWNS. Let me begin by first thanking the gentleman from 
California (Mr. Issa) for his input. Let me thank the staff for all 
their input. I'd like to thank Congressman Skelton. And of course I'd 
like to thank Congressman Lynch for all the work they've done to make 
this bill better.
  I'd like to reiterate my strong support for H.R. 1804. It will 
provide much-needed enhancements to the Thrift Savings Plan and to the 
Federal Government's retirement system.
  I urge all of my colleagues to join in supporting the passage of this 
measure and, of course, because I think it will do so much for the 
servicemen and, of course, the widows of servicemen. And I think that 
we owe them that.
  And this legislation is not perfect, but it's a giant step in the 
right direction. So I'm hoping that my colleagues will support this 
legislation. And let's move it very quickly through the House, and 
let's get it to the President's desk for him to be able to sign it.
  Thank you so much for the support that we've gotten from everyone.
  Mr. BROWN of South Carolina. Mr. Speaker, I rise today in support of 
Title II of H.R. 1804, the Federal Retirement Reform Act. Congressman 
Towns is to be commended for taking up the cause that Congressman Ortiz 
and I, along with many others, have championed with H.R. 775, The 
Military Surviving Spouses Equity Act. While this bill doesn't repeal 
the widows' tax imposed by the offset of Survivor Benefit Plans by 
Dependency and Indemnity Compensation, it helps military survivors 
during a difficult time for all of us.
  When Congress established the Military Survivors' Benefit Plan, or 
SBP, in 1972, they did so in order to give members of the military a 
sense of security about their spouses in the event of their death. The 
plan is voluntary, can be purchased by retirees or will be provided to 
survivors of active duty servicemembers who are killed in the line of 
duty. Through the SBP that was bought, spouses and children can receive 
up to 55% of the servicemembers' retired pay. While SBP is an annuity, 
survivors of military retirees and veterans may also receive Dependency 
and Indemnity Compensation (DIC) if their spouse died a service 
connected death. Under current law, widows are forfeiting, dollar-for-
dollar, the SBP annuity their spouse paid for by the amount of the DIC 
benefit.
  It's simply wrong, and unfair to our military surviving spouses who 
were tasked with supporting their spouses during the most difficult of 
war times and peace times, to take away that which was intentionally 
paid for because of a benefit intended to serve another purpose. We 
don't do this with private life-insurance, we don't do it with the 
federal survivor benefit, and we shouldn't do it to the families of 
those who paid the greatest cost for freedom.
  This bill, while it doesn't repeal the offset of SBP annuities by the 
DIC benefit, will be a needed help for widows, widowers and their 
children. However, I hope that it will not be considered the last step 
towards equity. By increasing payments by $35 beginning in 2010, 
surviving spouses will receive a monthly payment of $95 and will 
continue to receive increased payments until fiscal year 2016 with a 
$245 increase resulting in a monthly payment of $345. It's the least we 
can do; we need to repeal the offset.
  Finally, I want to thank the veterans service organizations, 
particularly the Gold Star Wives of America, and Representative Solomon 
Ortiz, for their hard work towards equity for surviving spouses. While 
I've sponsored a bill to repeal the SBP/DIC offset since my first term 
in Congress, even such small steps as the one we took today wouldn't be 
possible without their help.
  Ms. BORDALLO. Mr. Speaker, I rise today in support of the passage of 
H.R. 1804, the Federal Retirement Reform Act of 2009 in the House of 
Representatives. The passage of this bill in the House marks an 
important step towards reducing the ``widow's tax'' that currently 
denies surviving family members the full payment of their Survivor 
Benefit Plan (SBP).

[[Page 9534]]

  If enacted, Title II of H.R. 1804 would increase the monthly payments 
under the Special Survivor Indemnity Allowance to surviving spouses or 
former spouses of deceased service members who were denied the full 
amount of their annuity under the SBP due to an offset requirement by 
the Dependency and Indemnity Compensation (DIC) from the Department of 
Veterans Affairs (VA). This benefit will help thousands of military 
widows and more than a million current servicemembers and federal 
civilian employees.
  I commend Representative Ike Skelton of Missouri and Chairman of the 
House Armed Services Committee as well as Representative Ed Towns of 
New York and Chairman of the House Committee on Oversight and 
Government Reform for their working together to strike a compromise on 
this important provision in H.R. 1804. I will continue to work with my 
colleagues on the House Armed Services Committee to find ways to reduce 
the burden on widows of our nation's servicemembers. The compromise 
struck in this legislation is a major step forward and we need to 
continue to find ways to ensure that the servicemembers' widows 
receiving the full and fair annuity to which they are entitled under 
the SBP.
  Mr. TOWNS. I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New York (Mr. Towns) that the House suspend the rules 
and pass the bill, H.R. 1804.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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