[House Report 114-823]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-823
======================================================================
TO AMEND TITLE 5, UNITED STATES CODE, TO PROVIDE FOR RECALCULATION OF
BASIC ANNUITY BENEFITS FOR CERTAIN AIR TRAFFIC CONTROLLERS, AND FOR
OTHER PURPOSES
_______
November 14, 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. 5341]
The Committee on Oversight and Government Reform, to whom
was referred the bill (H.R. 5341) to amend title 5, United
States Code, to provide for recalculation of basic annuity
benefits for certain air traffic controllers, and for other
purposes, having considered the same, report favorably thereon
without amendment and recommend that the bill do pass.
CONTENTS
Page
Committee Statement and Views.................................... 2
Section-by-Section............................................... 4
Explanation of Amendments........................................ 4
Committee Consideration.......................................... 4
Roll Call Votes.................................................. 4
Application of Law to the Legislative Branch..................... 4
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 4
Statement of General Performance Goals and Objectives............ 4
Duplication of Federal Programs.................................. 5
Disclosure of Directed Rule Makings.............................. 5
Federal Advisory Committee Act................................... 5
Unfunded Mandate Statement....................................... 5
Earmark Identification........................................... 5
Committee Estimate............................................... 5
Budget Authority and Congressional Budget Office Cost Estimate... 6
Changes in Existing Law Made by the Bill, as Reported............ 6
Committee Statement and Views
PURPOSE AND SUMMARY
H.R. 5341 clarifies the basis for calculating retirement
benefits for Federal Aviation Administration (FAA) air traffic
controllers (ATCs) and certain supervisors of air traffic
controllers.
BACKGROUND AND NEED FOR LEGISLATION
FAA air traffic controllers and their managers help ensure
the safety of millions of travelers who fly through our
nation's airspace each day. In 2003, the Vision 100--Century of
Aviation Reauthorization Act (Public Law 108-176) was enacted,
allowing certain FAA air traffic controllers to receive an
enhanced Federal Employees Retirement System (FERS) annuity
accrual benefit of 1.7 percent per year in lieu of the standard
one percent rate for most federal employees.\1\
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\1\Section 226, P.L. 108-176.
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The October 2003 Conference Report for Vision 100 indicates
that the intent of the sponsors was to provide enhanced
retirement benefits to first and second line supervisors as
well as front line air traffic controllers:
[C]ontrollers who were promoted to first line
supervisors as well as the supervisors of those first
line supervisors would continue to accrue the
retirement benefits of controllers.\2\
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\2\Committee on Conference, Vision 100--Century of Aviation
Reauthorization Act, 108th Cong. (Oct. 29, 2003) (H. Rept. 108-334).
Section 226 of Vision 100 provides enhanced retirement
benefits to ATCs who are ``actively engaged in the separation
and control of air traffic'' as defined in 5 U.S.C.
2109(1)(A)(i).\3\ Consistent with congressional intent, the FAA
interpreted this section to include front-line air traffic
controllers and also some first and second-level supervisory
air traffic controller positions if, by the nature of their
duties, they are required to be ``actively engaged in the
separation and control of air traffic.'' In November 2015, the
FAA notified the Office of Personnel Management (OPM) that it
certified the service of these individuals, including first and
second-level managers, as service qualifying for enhanced
annuities under section 226.\4\
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\3\Pub. L. No. 108-176 (2003).
\4\Letter from Annie B. Andrews, Assistant Administrator for Human
Resource Management at FAA, to Kenneth J. Zawodny Jr., Associate
Director, Retirement Services at OPM (November 20, 2015).
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In response to the FAA's notification, OPM informed the FAA
in March 2016 that its certification of service for air traffic
controllers was not in accordance with section 226 of P.L. 108-
176 or OPM's guidance on the matter.\5\ In prior guidance
issued by OPM in 2006, the agency interpreted section 226 as
applying only to the front-line air traffic controller
positions and not to those individuals who occupy first or
second level supervisory positions.\6\ OPM read distinctions
between front-line air traffic control work and supervisory
work as mutually exclusive under 5 U.S.C. Sec. 2109(1)(A) and
(B).
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\5\Letter from Kenneth J. Zawodny Jr., Associate Director,
Retirement Services at OPM, to Annie B. Andrews, Assistant
Administrator for Human Resource Management at FAA (February 8, 2016).
\6\Id.
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OPM instructed the FAA to review the records of affected
individuals whose service may have been erroneously certified
and provide corrected records to OPM.\7\ According to OPM's
interpretation of section 226, approximately 185 annuitants who
already retired from the FAA with supervisory air traffic
controller service should have been credited at the standard
rate of one percent instead of the enhanced rate of 1.7
percent.\8\ According to the Congressional Budget Office (CBO),
OPM has stated that they intend to seek recovery of any
overpayments these 185 annuitants have received.\9\
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\7\Id.
\8\Congressional Budget Office Cost Estimate, S. 2658, Federal
Aviation Administration Reauthorization Act of 2016 (April 7, 2016).
\9\Id.
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H.R. 5341 makes a technical amendment to the United States
Code to clarify the original congressional intent that air
traffic controllers as defined in 5 U.S.C. Sec. 2109(1)(A)(i),
front line air traffic managers as defined in 5 U.S.C.
Sec. 2109(1)(B), and supervisors as defined in 5 U.S.C.
Sec. 8401(35)(B) are entitled to receive the enhanced annuity
at 1.7 percent. Moreover, the legislation ensures that the 185
FAA annuitants who have already retired under provisions of
P.L. 108-176 continue to receive an annuity calculated at the
1.7 percent rate.
This bill also helps the FAA retain experienced air traffic
controllers and managers. According to the Department of
Transportation Inspector General, the United States has one of
the safest air traffic systems in the world, but maintaining
the excellent safety record depends on having a fully staffed
and well-trained controller workforce.\10\ Since the FAA began
implementing the enhanced annuity benefit after the enactment
of P.L. 108-176, the enhanced annuity has been an effective
tool to encourage air traffic controller managers to remain in
management positions and retain key experience. H.R. 5341's
technical fix helps the FAA maintain this important retention
tool to encourage seasoned managers to stay at the FAA and help
ensure the safety of our nation's airspace.
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\10\Dep't of Transportation Inspect Gen., FAA Continues to Face
Challenges in Ensuring Enough Fully Trained Controllers at Critical
Facilities (Jan. 11, 2016) (AV-2016-104).
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H.R. 5341 clarifies congressional intent of P.L. 108-176,
and does not expand the scope originally intended.\11\ For
example, management time in positions providing ``preflight,
inflight, or airport advisory service to aircraft operators''
contained in 5 U.S.C. Sec. 2109(A)(ii) are not eligible for the
enhanced annuity calculation at the 1.7 percent rate.
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\11\H. Rept. 108-334, Conference Report on H.R. 2115 (October 29,
2003) at 159-160.
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LEGISLATIVE HISTORY
H.R. 5341, to amend title 5, United States Code, to provide
for recalculation of basic annuity benefits for certain air
traffic controllers, was introduced on May 26, 2016, by
Representative John Mica (R-FL) and referred to the Committee
on Oversight and Government Reform. On July 12, 2016, the
Committee on Oversight and Government Reform ordered H.R. 5341
favorably reported by voice vote, without amendment.
Section-by-Section
Section 1. Computation of basic annuity for certain air traffic
controllers
Subsection (a) amends section 8415(f) of title 5, United
States Code, to clarify that current or former air traffic
controllers with at least five years of service in any
combination of air traffic controller, and first and second
level supervisors of an air traffic controller, will receive an
annuity calculated at the 1.7 percent rate of the individual's
average pay by the years of service.
Subsection (b) makes the effective date of subsection (a)
December 12, 2003.
Subsection (c) requires that the Office of Personnel
Management establish procedures to notify annuitants affected
by this bill, recalculate benefits of affected annuitants,
adjust monthly annuity benefits as soon as practicable, and
provide any applicable lump sum payments to affected
annuitants.
Explanation of Amendments
No amendments to H.R. 5341 were offered or adopted during
Full Committee consideration of the bill.
Committee Consideration
On July 12, 2016 the Committee met in open session and
ordered reported favorably the bill, H.R. 5341, by voice vote,
a quorum being present.
Roll Call Votes
No roll call votes were requested or conducted during Full
Committee consideration of H.R. 5341.
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 clarifies congressional intent regarding air traffic
controller retirement accrual. 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 and objective of the bill is to provide for recalculation
of basic annuity benefits 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
Mandate 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
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
this bill. However, clause 3(d)(2)(B) of that rule provides
that this requirement does not apply when the Committee has
included in its report a timely submitted cost estimate of the
bill prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974.
Identical provisions to those contained within H.R. 5341
were signed into law on July 15, 2016 (P.L. 114-190), which
precludes the Congressional Budget Office from providing an
official cost estimate for H.R. 5341 to the Committee.
Regarding P.L. 114-190, relative to current law, CBO expects
that the proposed change would increase benefits for some
existing retirees and increase benefits (and delay retirement)
for some future retirees, resulting in an overall net reduction
in direct spending of $8 million over the 2017-2026 period.
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
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PART III--EMPLOYEES
* * * * * * *
SUBPART G--INSURANCE AND ANNUITIES
* * * * * * *
CHAPTER 84--FEDERAL EMPLOYEES' RETIREMENT SYSTEM
* * * * * * *
SUBCHAPTER II--BASIC ANNUITY
* * * * * * *
Sec. 8415. Computation of basic annuity
(a) Except as otherwise provided in this section, the annuity
of an employee retiring under this subchapter is 1 percent of
that individual's average pay multiplied by such individual's
total service.
(b) The annuity of a Member, or former Member with title to a
Member annuity, retiring under this subchapter is computed
under subsection (a), except that if the individual has had at
least 5 years of service as a Member or Congressional employee,
or any combination thereof, so much of the annuity as is
computed with respect to either such type of service (or a
combination thereof), not exceeding a total of 20 years, shall
be computed by multiplying 1 7/10 percent of the individual's
average pay by the years of such service.
(c) The annuity of a Congressional employee, or former
Congressional employee, retiring under this subchapter is
computed under subsection (a), except that if the individual
has had at least 5 years of service as a Congressional employee
or Member, or any combination thereof, so much of the annuity
as is computed with respect to either such type of service (or
a combination thereof), not exceeding a total of 20 years,
shall be computed by multiplying 1 7/10 percent of the
individual's average pay by the years of such service.
(d) Notwithstanding any other provision of law, the annuity
of an individual described in subsection (b) or (c) who is a
revised annuity employee or a further revised annuity employee
shall be computed in the same manner as in the case of an
individual described in subsection (a).
(e) The annuity of an employee retiring under subsection (d)
or (e) of section 8412 or under subsection (a), (b), or (c) of
section 8425 is--
(1) 1 7/10 percent of that individual's average pay
multiplied by so much of such individual's total
service as does not exceed 20 years; plus
(2) 1 percent of that individual's average pay
multiplied by so much of such individual's total
service as exceeds 20 years.
[(f) The annuity of an air traffic controller or former air
traffic controller retiring under section 8412(a) is computed
under subsection (a), except that if the individual has had at
least 5 years of service as an air traffic controller as
defined by section 2109(1)(A)(i), so much of the annuity as is
computed with respect to such type of service shall be computed
by multiplying 1 7/10 percent of the individual's average pay
by the years of such service.]
(f) The annuity of an air traffic controller or former air
traffic controller retiring under section 8412(a) is computed
under subsection (a), except that if the individual has at
least 5 years of service in any combination as--
(1) an air traffic controller as defined by section
2109(1)(A)(i);
(2) a first level supervisor of an air traffic
controller as defined by section 2109(1)(A)(i); or
(3) a second level supervisor of an air traffic
controller as defined by section 2109(1)(A)(i);
so much of the annuity as is computed with respect to such type
of service shall be computed by multiplying 1\7/10\ percent of
the individual's average pay by the years of such service.
(g)(1) In computing an annuity under this subchapter for an
employee whose service includes service performed on a part-
time basis--
(A) the average pay of the employee, to the extent
that it includes pay for service performed in any
position on a part-time basis, shall be determined by
using the annual rate of basic pay that would be
payable for full-time service in the position; and
(B) the benefit so computed shall then be multiplied
by a fraction equal to the ratio which the employee's
actual service, as determined by prorating the
employee's total service to reflect the service that
was performed on a part-time basis, bears to the total
service that would be creditable for the employee if
all of the service had been performed on a full-time
basis.
(2) For the purpose of this subsection, employment on a part-
time basis shall not be considered to include employment on a
temporary or intermittent basis.
(h)(1) The annuity of an employee or Member retiring under
section 8412(g) or 8413(b) is computed in accordance with
applicable provisions of this section, except that the annuity
shall be reduced by five-twelfths of 1 percent for each full
month by which the commencement date of the annuity precedes
the sixty-second anniversary of the birth of the employee or
Member.
(2)(A) Paragraph (1) does not apply in the case of an
employee or Member retiring under section 8412(g) or 8413(b) if
the employee or Member would satisfy the age and service
requirements for title to an annuity under section 8412(a),
(b), (d)(2), (e)(2), or (f)(2), determined as if the employee
or Member had, as of the date of separation, attained the age
specified in subparagraph (B).
(B) A determination under subparagraph (A) shall be based on
how old the employee or Member will be as of the date on which
the annuity under section 8412(g) or 8413(b) is to commence.
(i)(1) In applying subsection (a) with respect to an employee
under paragraph (2), the percentage applied under such
subsection shall be 1.1 percent, rather than 1 percent.
(2) This subsection applies in the case of an employee who--
(A) retires entitled to an annuity under section
8412; and
(B) at the time of the separation on which
entitlement to the annuity is based, is at least 62
years of age and has completed at least 20 years of
service;
but does not apply in the case of a Congressional employee,
military technician (dual status), law enforcement officer,
member of the Supreme Court Police, firefighter, nuclear
materials courier, air traffic controller, or customs and
border protection officer
(j) The annuity of a Member who has served in a position in
the executive branch for which the rate of basic pay was
reduced for the duration of the service of the Member in that
position to remove the impediment to the appointment of the
Member imposed by article I, section 6, clause 2 of the
Constitution, shall, subject to a deposit in the Fund as
provided under section 8422(g), be computed as though the rate
of basic pay which would otherwise have been in effect during
that period of service had been in effect.
(k)(1) For purposes of this subsection, the term ``physicians
comparability allowance'' refers to an amount described in
section 8331(3)(H).
(2) Except as otherwise provided in this subsection, no part
of a physicians comparability allowance shall be treated as
basic pay for purposes of any computation under this section
unless, before the date of the separation on which entitlement
to annuity is based, the separating individual has completed at
least 15 years of service as a Government physician (whether
performed before, on, or after the date of the enactment of
this subsection).
(3) If the condition under paragraph (2) is met, then, any
amounts received by the individual in the form of a physicians
comparability allowance shall (for the purposes referred to in
paragraph (2)) be treated as basic pay, but only to the extent
that such amounts are attributable to service performed on or
after the date of the enactment of this subsection, and only to
the extent of the percentage allowable, which shall be
determined as follows:
------------------------------------------------------------------------
If the total amount of service
performed, on or after the date of Then, the percent-age allowable
the enactment of this subsection, as is:
a Government physician is:
------------------------------------------------------------------------
Less than 2 years 0
At least 2 but less than 4 years 25
At least 4 but less than 6 years 50
At least 6 but less than 8 years 75
At least 8 years 100.
------------------------------------------------------------------------
(4) Notwithstanding any other provision of this subsection,
100 percent of all amounts received as a physicians
comparability allowance shall, to the extent attributable to
service performed on or after the date of the enactment of this
subsection, be treated as basic pay (without regard to any of
the preceding provisions of this subsection) for purposes of
computing--
(A) an annuity under section 8452; and
(B) a survivor annuity under subchapter IV, if based
on the service of an individual who dies before
separating from service.
(l) The annuity of an employee retiring under this chapter
with service credited under section 8411(b)(6) shall be reduced
by the amount necessary to ensure that the present value of the
annuity payable to the employee under this subchapter is
actuarially equivalent to the present value of the annuity that
would be payable to the employee under this subchapter if it
were computed--
(1) on the basis of service that does not include
service credited under section 8411(b)(6); and
(2) assuming the employee separated from service on
the actual date of the separation of the employee.
The amount of the reduction shall be computed under regulations
prescribed by the Office of Personnel Management for the
administration of this subsection.
(m)(1) In computing an annuity under this subchapter, the
total service of an employee who retires from the position of a
registered nurse with the Veterans Health Administration on an
immediate annuity, or dies while employed in that position
leaving any survivor entitled to an annuity, includes the days
of unused sick leave to the credit of that employee under a
formal leave system, except that such days shall not be counted
in determining average pay or annuity eligibility under this
subchapter.
(2)(A) 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
applicable percentage of the days of unused sick leave to his
credit under a formal leave system and for which days the
employee has not received payment, 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)
through (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) For purposes of subparagraph (A), the term ``applicable
percentage'' means--
(i) 50 percent in the case of an annuity, entitlement
to which is based on a death or other separation
occurring during the period beginning on the date of
enactment of this paragraph and ending on December 31,
2013; and
(ii) 100 percent in the case of an annuity,
entitlement to which is based on a death or other
separation occurring after December 31, 2013.
(n) In the case of any annuity computation under this section
that includes, in the aggregate, at least 2 months of credit
under section 8411(d) for any period while receiving benefits
under subchapter I of chapter 81, the percentage otherwise
applicable under this section for that period so credited shall
be increased by 1 percentage point.
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[all]