[House Report 114-765]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-765
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FULL ANNUITY SUPPLEMENT FOR CERTAIN AIR TRAFFIC CONTROLLERS
_______
September 20, 2016.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Chaffetz, from the Committee on Oversight and Government Reform,
submitted the following
R E P O R T
[To accompany H.R. 5785]
The Committee on Oversight and Government Reform, to whom
was referred the bill (H.R. 5785) to amend title 5, United
States Code, to provide for an annuity supplement for certain
air traffic controllers, having considered the same, report
favorably thereon without amendment and recommend that the bill
do pass.
CONTENTS
Page
Committee Statement and Views.................................... 1
Section-by-Section............................................... 3
Explanation of Amendments........................................ 3
Committee Consideration.......................................... 3
Roll Call Votes.................................................. 3
Application of Law to the Legislative Branch..................... 3
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 4
Statement of General Performance Goals and Objectives............ 4
Duplication of Federal Programs.................................. 4
Disclosure of Directed Rule Makings.............................. 4
Federal Advisory Committee Act................................... 4
Unfunded Mandate Statement....................................... 4
Earmark Identification........................................... 4
Committee Estimate............................................... 4
Budget Authority and Congressional Budget Office Cost Estimate... 5
Changes in Existing Law Made by the Bill, as Reported............ 5
Committee Statement and Views
PURPOSE AND SUMMARY
H.R. 5785, to amend title 5, United States Code, to provide
for an annuity supplement for certain air traffic controllers,
exempts full-time air traffic control instructors under
contract with the Federal Aviation Administration (FAA) from
the reduction to the Federal Employees Retirement System (FERS)
annuity supplement when an annuitant receives excess earnings.
The bill incentivizes former air traffic controllers to
continue service after mandatory retirement as full-time
contracted air traffic controller instructors.
BACKGROUND AND NEED FOR LEGISLATION
The FAA is responsible for the safety of America's airways.
It employs uniquely skilled and highly trained air traffic
controllers (ATCs) to ensure smooth and safe operations across
the country. However, FAA is facing a growing critical shortage
of trained controllers. Approximately 6,000 new ATCs will need
to be hired in the next five years alone.
In order to meet this hiring challenge, FAA needs qualified
ATC instructors to train the new hires. FAA regulations,
however, are very strict on who may become an ATC instructor.
Generally, ATC instructors must have been an active FAA
controller for some part of their career and within the
previous five years prior to applying for a contract instructor
position.\1\ This limits the pool of available ATC instructors.
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\1\Memorandum from SAIC to Republican and Democratic Staff on the
H. Comm. on Oversight & Gov't Reform, Retirement Income Limit Waiver
for Air Traffic Controller Instructors (July 28, 2016).
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FAA relies upon contracted ATC instructors and awarded a
competitively bid contract in 2015 to train the new corps of
controllers at facilities located mostly in Oklahoma City,
Oklahoma, and Washington, D.C.\2\ Under the contract, the
awardee is the only provider of this service to the FAA.
Unfortunately, the awardee has found it difficult to attract
ATC instructors to work, in part because of the FAA regulations
restricting contracted ATC instructor eligibility.\3\
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\2\SAIC, Press Release, SAIC Awarded $425 Million Controller
Training Contract by FAA (May 4, 2015).
\3\Retirement Income Limit Waiver for Air Traffic Controller
Instructors, supra note 1.
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In other main cause of the hiring challenges is the excess
earnings reduction to which ATCs are subject upon retirement.
With limited exceptions, ATCs who join the FAA under FERS are
required to retire at the age of 56 due to the strenuous nature
of their jobs.\4\ Upon retirement, they are eligible for a FERS
annuity supplement that approximates what they would earn in
Social Security benefits until age 62.\5\ This annuity
supplement is necessary because Social Security benefits do not
begin until the age of 62.
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\4\5 U.S.C. Sec. 8335
\5\5 U.S.C. Sec. 8421
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The annuity supplement is currently subject to an excess
earnings reduction in 5 U.S.C. 8421a(a) for every dollar earned
over the Social Security earnings limits of $15,720 per
year.\6\ Thus, retired ATCs who receive compensation greater
than the earnings limitation could forfeit a portion or the
entire amount of their FERS annuity supplement, depending on
the amount of their earnings. H.R. 5785 would alter this
dynamic. It would incentivize former ATCs to become full-time
instructors after retirement by eliminating the earnings cap
while they are instructors and allowing them to continue to
receive their full FERS annuity supplement. These instructors
would help train the next generation of ATCs and maintain the
security of the nation's airways.
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\6\5 U.S.C. Sec. 8421a.
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LEGISLATIVE HISTORY
H.R. 5785 was introduced on July 14, 2016 by Representative
Steve Russell (R-OK) and referred to the Committee on Oversight
and Government Reform. On September 15, 2016, the Committee on
Oversight and Government Reform ordered H.R. 5785 favorably
reported by unanimous consent, without amendment.
Additionally, the text of this bill passed the Senate by a
vote of 95-3 on April 19, 2016 as part of the Senate amendment
to H.R. 636, the FAA Extension, Safety, and Security Act of
2016, but it was among a number of provisions not ultimately
included in the final version of H.R. 636 that became law on
July 15, 2016.
A similar bill to H.R. 5785, S. 3217, was introduced by
Sen. James Inhofe (R-OK) on July 14, 2016 and referred to the
Senate Committee on Homeland Security and Governmental Affairs.
Section-by-Section
Section 1. Full annuity supplement for certain air traffic controllers
Amends Section 8421a of title 5, United States Code, to
exempt former air traffic controllers under contract with the
Federal Aviation Administration as full-time instructors from a
reduction to the Federal Employees Retirement System (FERS)
annuity supplement when an annuitant receives earnings above
the Social Security earnings limit.
Explanation of Amendments
No amendments to H.R. 5785 were offered or adopted during
Full Committee consideration of the bill.
Committee Consideration
On September 15, 2016 the Committee met in open session and
ordered reported favorably the bill, H.R. 5785, by unanimous
consent, a quorum being present.
Roll Call Votes
No roll call votes were requested or conducted during Full
Committee consideration of H.R. 5785.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to the terms and conditions of
employment or access to public services and accommodations.
This bill amends title 5, United States Code, to provide for an
annuity supplement for certain air traffic controllers. As such
this bill does not relate to employment or access to public
services and accommodations.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goal or objective is to amend title 5, United States Code, to
provide for an annuity supplement for certain air traffic
controllers.
Duplication of Federal Programs
No provision of this bill establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Disclosure of Directed Rule Makings
The Committee estimates that enacting this bill does not
direct the completion of any specific rule makings within the
meaning of 5 U.S.C. 551.
Federal Advisory Committee Act
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of 5 U.S.C. App., Section 5(b).
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement as to
whether the provisions of the reported include unfunded
mandates. In compliance with this requirement the Committee has
received a letter from the Congressional Budget Office included
herein.
Earmark Identification
This bill does not include any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
Committee Estimate
At the time of this writing, the Committee had yet to
receive a formal cost estimate from the Congressional Budget
Office for H.R. 5785. However, preliminary analysis from CBO
suggests that the bill would provide for no significant
budgetary effects.
Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause (3)(c)(3) of rule XIII of the Rules
of the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has not
received a cost estimate for this bill from the Director of
Congressional Budget Office, and instead has included a
committee estimate in the section prior to this one.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
TITLE 5, UNITED STATES CODE
* * * * * * *
PART III--EMPLOYEES
* * * * * * *
SUBPART G--INSURANCE AND ANNUITIES
* * * * * * *
CHAPTER 84--FEDERAL EMPLOYEES' RETIREMENT SYSTEM
* * * * * * *
SUBCHAPTER II--BASIC ANNUITY
* * * * * * *
Sec. 8421a. Reductions on account of earnings from work performed while
entitled to an annuity supplement
(a) [The amount] Except as provided in subsection (c), the
amount of the annuity supplement to which an individual is
entitled under section 8421 for any month (determined without
regard to subsection (c) of such section) shall be reduced by
the amount of any excess earnings of such individual which are
required to be charged to such supplement for such month, as
determined under subsection (b).
(b) The amount of an individual's excess earnings shall be
charged to months as follows:
(1)(A) There shall be charged to each month of a year
under subsection (a) an amount equal to the
individual's excess earnings (as determined under
paragraph (2) with respect to such year), divided by
the number of the individual's supplement entitlement
months for such year (as determined under paragraph
(3)).
(B) Notwithstanding subparagraph (A), the amount
charged to a month under subsection (a) may not exceed
the amount of the annuity supplement to which the
individual is entitled under section 8421 for such
month (determined without regard to subsection (c) of
such section).
(2) The excess earnings based on which reductions
under subsection (a) shall be made with respect to an
individual in a year--
(A) shall be equal to 50 percent of so much
of such individual's earnings for the
immediately preceding year as exceeds the
applicable exempt amount for such preceding
year; but
(B) may not exceed the total amount of the
annuity supplement payments to which such
individual was entitled for such preceding year
under section 8421 (determined without regard
to subsection (c) of such section, and without
regard to this section).
(3)(A) Subject to subparagraph (B), the number of an
individual's supplement entitlement months for a year
shall be 12.
(B) The number determined under subparagraph (A)
shall be reduced so as not to include any month after
which such individual ceases to be entitled to an
annuity supplement by reason of section 8421(a)(3)(B),
relating to cessation of entitlement upon attaining age
62.
(4)(A) For purposes of this section, and except as
provided in subparagraph (B), the ``earnings'' and the
``applicable exempt amount'' of an individual shall be
determined in a manner consistent with applicable
provisions of section 203 of the Social Security Act.
(B) For purposes of this section--
(i) in determining the excess earnings of any
individual, only earnings attributable to
periods during which such individual was
entitled to an annuity supplement under section
8421 shall be considered; and
(ii) any earnings attributable to a period
before attaining the applicable retirement age
under section 8412(h) shall not be considered
in determining the excess earnings of an
individual who retires under section 8412(d) or
(e), or section 8414(c).
(5) Notwithstanding paragraphs (1) through (4), the
reduction required by subsection (a) shall be effective
with respect to the annuity supplement payable for each
month in the 12-month period beginning on the first day
of the seventh month after the end of the calendar year
in which the excess earnings were earned.
(c) This section shall not apply to an individual described
in section 8412(e) during any period in which the individual,
after separating from the service as described in that section,
is employed full-time as an air traffic control instructor
under contract with the Federal Aviation Administration,
including an instructor working at an on-site facility (such as
an airport).
[(c)] (d) The Office shall prescribe regulations under which
this section shall be applied in the case of a reemployed
annuitant.
* * * * * * *
[all]