[Senate Report 117-260]
[From the U.S. Government Publishing Office]
Calendar No. 651
117th Congress } { Report
SENATE
2d Session } { 117-260
_______________________________________________________________________
CONTRACT ACT OF 2021
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
to accompany
S. 419
TO AMEND TITLE 5, UNITED STATES CODE, TO PROVIDE FOR
A FULL ANNUITY SUPPLEMENT FOR CERTAIN AIR TRAFFIC CONTROLLERS
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
December 15, 2022.--Ordered to be printed
_________
U.S. GOVERNMENT PUBLISHING OFFICE
39-010 WASHINGTON : 2023
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona RAND PAUL, Kentucky
JACKY ROSEN, Nevada JAMES LANKFORD, Oklahoma
ALEX PADILLA, California MITT ROMNEY, Utah
JON OSSOFF, Georgia RICK SCOTT, Florida
JOSH HAWLEY, Missouri
David M. Weinberg, Staff Director
Zachary I. Schram, Chief Counsel
Lena C. Chang, Director of Governmental Affairs
Gauri Verma, Research Assistant
Pamela Thiessen, Minority Staff Director
Sam J. Mulopulos, Minority Deputy Staff Director
Cara G. Mumford, Minority Director of Governmental Affairs
Andrew J. Hopkins, Minority Counsel
Laura W. Kilbride, Chief Clerk
Calendar No. 651
117th Congress } { Report
SENATE
2d Session } { 117-260
======================================================================
CONTRACT ACT OF 2021
_______
December 15, 2022.--Ordered to be printed
_______
Mr. Peters, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
[To accompany S. 419]
The Committee on Homeland Security and Governmental
Affairs, to which was referred the bill (S. 419) to amend title
5, United States Code, to provide for a full annuity supplement
for certain air traffic controllers, having considered the
same, reports favorably without amendment and recommends that
the bill do pass.
CONTENTS
Page
I. Purpose and Summary.............................................. 1
II. Background and Need for the Legislation.......................... 1
III. Legislative History.............................................. 3
IV. Section-by-Section Analysis of Bill, as Reported................. 3
V. Evaluation of Regulatory Impact.................................. 3
VI. Changes in Existing Law Made by the Bill, as Reported............ 4
I. Purpose and Summary
S. 419, the Continuity for Operators with Necessary
Training Required for ATC Contract Towers Act of 2021, or the
CONTRACT Act of 2021, amends title 5, United States Code, to
prevent certain retired Federal Aviation Administration (FAA)
air traffic controllers, who choose to work at federal contract
towers, from facing a reduction in their annuity payments.
II. Background and need for the Legislation
The Federal Contract Tower Program, established in 1982,
allows the FAA to enter into contracts with private entities to
carry out the operation of certain low-activity towers.\1\
There are currently 256 federal contract towers across 46
states.\2\ Federal contract towers are an important part of the
National Airspace System, as they manage around 28% of total
air traffic control operations.\3\ The contract towers have a
strong track record of assisting with disaster relief efforts,
emergency medical operations, and national security
operations.\4\
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\1\Federal Aviation Administration, Contract Towers (May 5, 2019)
(www.faa.gov/newsroom/contract-towers).
\2\Federal Aviation Administration, FAA Contract Towers (FCT) (Jan.
2019) (www.faa.gov/sites/faa.gov/files/about/office_org/
headquarters_offices/ato/FCT_Map.pdf).
\3\Department of Transportation Office of Inspector General,
Contract Towers are More Cost Effective than Comparable FAA Towers and
Have Similar Safety Records (Report No. AV2020028) (Apr. 28, 2020)
(www.oig.dot.gov/sites/default/files/
FAA%20Contract%20Tower%20Update%20Final%20Report%5E04-28-2020.pdf).
\4\See, e.g., Coalition of aviation groups included the American
Association of Airport Executives and U.S. Contract Tower Association:
AAAE/USCTA Lead Coalition in Asking Congress to Fully Fund Contract
Towers (Feb. 19, 2020) (aaae.org/AAAE/AAAEMemberResponsive/
Press_Releases/2020/AAAE_USCTA021920.aspx).
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Approximately 47% of military operations at civilian
airports occur at contract towers.\5\ An April 2020 report
issued by the Department of Transportation (DOT) Office of
Inspector General concluded that contract towers are cost-
effective and maintain similar safety records as non-contract
towers.\6\
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\5\Id.
\6\Department of Transportation Office of Inspector General, supra
note 3.
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Air traffic controllers employed by DOT or the Department
of Defense, are subject to mandatory retirement at age 56.\7\
Retired air traffic controllers are eligible to receive an
annuity supplement until they are eligible to start receiving
Social Security payments at age 62.\8\ However, the annuity
supplement is reduced if the retired air traffic controller
returns to work and earns more than the annual exempt amount
under the Social Security earnings test which, for 2021, is
$18,960.\9\
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\7\5 U.S.C. Sec. 8425(a).
\8\Federal Aviation Administration, Benefits (www.faa.gov/jobs/
employment_information/benefits/compensation/#retire) (accessed Dec.
16, 2021).
\9\Social Security Administration, Exempt Amounts Under the
Earnings Text (www.ssa.gov/oact/cola/rtea.html) (accessed Dec. 16,
2021).
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National associations representing airport executives,
contract towers, and air traffic controllers, have expressed a
deep concern about workforce challenges across the aviation
industry, as well as increasing staffing challenges in the
Federal Contract Tower Program.\10\ These same organizations,
reflecting both employer and employee perspectives, have
jointly stated that, ``contract tower airports have benefited
from the experience, expertise, and leadership of retired
federal air traffic controllers who have gone on to serve at
contract towers.''\11\
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\10\Letter from Bradley P. Van Dam, Executive Director of U.S.
Contract Tower Association and Senior Vice President of Government
Affairs at the American Association of Airport Executives, and Paul
Rinaldi, President of the National Air Traffic Controllers Association,
to Senators James Inhofe, Patty Murray, and Jerry Moran (Feb. 24,
2021).
\11\Id.
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Retired FAA air traffic controllers are allowed to work at
federal contract towers, as long as they continue to meet the
same qualification and training requirements as FAA air traffic
controllers.\12\ However, if the air traffic controller is
receiving an annuity supplement, it is subject to a reduction
or elimination upon returning to work at one of these privately
run towers, creating a financial disincentive to do so.\13\
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\12\Federal Aviation Administration, FAA Contract Tower Program
(www.faa.gov/about/office_org/headquarters_offices/ato/service_units/
mission_support/faa_contract_tower_program) (accessed Dec. 16, 2021).
\13\Office of Personnel Management, Retirement Services
(www.opm.gov/retirement-services/fers-information/types-of-retirement/
#url=Annuity-Supplement) (accessed Dec. 16, 2021).
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The CONTRACT Act of 2021 will establish an exemption to
allow retired FAA air traffic controllers who are receiving an
annuity supplement to work at a federal contract tower without
a reduction to the annuity supplement. A similar exemption
already exists for retired FAA air traffic controllers who
return to work as instructors.\14\ This bill will help address
staffing challenges at federal contract towers across the
country that provide a critical connection to the air
transportation system.
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\14\5 U.S.C. 8421a(c).
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III. Legislative History
Senator James Inhofe (R-OK) introduced S. 419, the CONTRACT
Act of 2021, on February 24, 2021, with 42 original cosponsors
from both parties. Five Senators subsequently joined as
cosponsors.
The bill was referred to the Committee on Homeland Security
and Governmental Affairs on February 24, 2021. The Committee
considered S. 419 at a business meeting on November 3, 2021.
The bill was ordered reported favorably by voice vote en bloc,
with Senators Peters, Hassan, Sinema, Rosen, Padilla, Ossoff,
Portman, Johnson, Lankford, Romney, Scott, and Hawley present.
IV. Section-by-Section Analysis of the Bill, as Reported
Section 1. Short title
This section establishes the short title of the bill as the
``Continuity for Operators with Necessary Training Required for
ATC Contract Towers Act of 2021'' or the ``CONTRACT Act of
2021.''
Sec. 2. Annuity supplement
This section amends section 8421a of title 5, United States
Code, which requires reductions to retirement annuity
supplements if an individual's annual work earnings exceed a
certain threshold amount. This section adds air traffic
controllers within the contract tower program to the subsection
regarding exemptions from such reductions. It amends the same
subsection that includes an exemption for air traffic
controllers who return to work as instructors.
V. Evaluation of Regulatory Impact
Pursuant to the requirements of paragraph 11(b) of rule
XXVI of the Standing Rules of the Senate, the Committee has
considered the regulatory impact of this bill and determined
that the bill will have no regulatory impact within the meaning
of the rules. The Committee agrees with the Congressional
Budget Office's statement that the bill contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would impose no costs
on state, local, or tribal governments.
VI. Changes in Existing Law Made by the Bill, as Reported
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill, as reported, are shown as follows: (existing law
proposed to be omitted is enclosed in brackets, new matter is
printed in italic, and existing law in which no change is
proposed is shown in roman):
UNITED STATES CODE
* * * * * * *
TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
* * * * * * *
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
ENTITILED TO AN ANNUITY SUPPLEMENT
(a) * * *
(b) * * *
(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 [as an air traffic] as an--
(1) air traffic control instructor, or supervisor
thereof, under contract with the Federal Aviation
Administration, including an instructor or supervisor
working at an on-site facility (such as an airport)[.];
or
(2) air traffic controller pursuant to a contract
made with the Secretary of Transportation under section
47124 of title 49.
* * * * * * *
[all]