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centives to employees who agree to continue in service but not longer than 2 years after the last day of the 90-day period.

Subsection (c) of section 3 describes the voluntary separation incentive. Paragraph (1) requires that it be paid in a lump after the employee's separation. Paragraph (2) requires the amount to be the lesser of the severance pay the employee would receive, if entitled, or $25,000. Paragraph (3) bars using it as a basis for payment or computation of any other type of Government benefit. Paragraph (4) precludes taking it into account in determining the amount of severance pay due an employee on the basis of any other separation. Paragraph (5) requires paying it from the appropriations or funds used to pay the basic pay of the employee.

Subsection (d) of section 3 requires repayment of the entire amount of the incentive to the agency that paid it by any employee who accepts Federal employment within 2 years of the separation on which the incentive was based. If the reemployment is in a position for which there is exceptional difficulty in recruiting a qualified employee, repayment may be waived, in the case of employment in an Executive agency, by the Director of the Office of Personnel Management (at the request of the agency head), in the case of employment in the legislative branch, by the head of the employing entity or the appointing official, and in the case of employment in the judicial branch, by the Director of the Administrative Office of the United States Courts.

Subsection (e) of section 3 authorizes the Director of the office of Personnel Management to prescribe any regulations necessary to administer the Act.

Subsection (f) of section 3 authorizes the Director of the Administrative Office of the United States Courts to establish, by regulation, a program for judicial branch employees that is consistent with the program established by subsections (a)-(d) of section 3.

Subsection (g) of section 3 provides that the President or his designee shall take such action as necessary to ensure, by September 30, 1995, that employment in the Executive Branch is reduced by at least one full-time equivalent for each voluntary separation incentive payment paid under section 3. It also requires the President to report to the Congress on the implementation of subsection (g).

Section (4) adds to the existing executive branch voluntary separation incentive programs provisions requiring repayment by individuals whose incentives are based on separations occurring after the date of enactment of the Federal Workforce Restructuring Act of 1993, and who are reemployed by the Federal Government within 5 years of the date of separation. For cases involving reemployment in positions for which there is exceptional difficulty in recruiting a qualified employee, waiver authorities paralleling those in the executive branch-wide program are provided.

Subsection (a) of section 4 amends section 5597 of title 5, United States Code, to add a new subsection (g) requiring repayment and providing waiver authorities under the separation pay program of the Department of Defense.

Subsection (b) of section 4 amends section 2(b) of the Central Intelligence Agency Voluntary Separation Pay Act to add language

requiring repayment and providing waiver authorities under the voluntary separation incentive program of the CIA.

Subsection (a) of section 5 amends section 8334 of title 5, United States Code, by adding a new subsection (1) requiring each agency to remit to the Office of Personnel Management, for deposit to the credit of the Civil Service Retirement and Disability Fund, in addition to any other payments required by the Civil Service Retirement law, an amount equal to 9 percent of the final rate of basic pay of each employee who retires under section 8336(d) of that title, the section providing for both involuntary and voluntary early retirement.

Subsection (b) of section 5 provides that the amendments made by that section apply with respect to any retirements occurring on or after the date of enactment of the Act.

Subsection (a) of section 6 defines "agency" to mean an Executive agency under section 105 of title 5, but does not include the General Accounting Office.

Subsection (b) of section 6 requires the President, through the Office of Management and Budget, to ensure that the total number of full-time equivalent (FTE) positions in all agencies shall not exceed (1) 2,095,182 during fiscal year 1994; (2) 2,044,100 during fiscal year 1995; (3) 2,003,846 during fiscal year 1996; (4) 1,963,593 during fiscal year 1997; (5) 1,923,339 during fiscal year 1998; and (6) 1,883,086 during fiscal year 1999.

Subsection (c) of section 6 requires the Office of Management and Budget to monitor agency compliance with subsection 6(b).

Subsection (d) of section 6 requires that if the requirements of subsection (b) are not met, that no agency may hire any employee for any position until the Office of Management and Budget reports that the total number of FTE positions for all agencies equals or is less than the applicable number required under subsection (b). Subsection (e) of section 6 allows for a waiver of any provision of section 6 in the event of war or a national emergency or if a joint resolution is enacted by an affirmative vote of three-fifths of the Members of each House of Congress.

Section 7 requires the Office of Management, upon enactment of this Act, to reduce the discretionary spending limits set forth in section 601 (a) (2) of the Congressional Budget Act of 1974 for fiscal years 1994 through 1998 as follows: (1) for fiscal year 1994, $329,000,000 in new budget authority and $314,000,000 in outlays; (2) for fiscal year 1995, $2,423,000,000 in new budget authority and $2,330,000,000 in outlays; (3) for fiscal year 1996, $4,267,000,000 in new budget authority and $4,184,000,000 in outlays; (4) for fiscal year 1997, $6,313,000,000 in new budget authority and $6,221,000,000; and (5) for fiscal year 1998, $8,545,000,000 in new budget authority and $8,443,000,000 in outlays.

Section 8 of the Committee bill standardizes the withdrawal options available to participants in the Thrift Savings Plan (TSP) when they separate from Government service.

Subsection (a) of section 8 makes changes to section 8351 of title 5, which provides the rules for participation in the TSP by employees covered by the Civil Service Retirement System (CSRS). All TSP participants covered by CSRS will now be subject to the same withdrawal provisions.

Paragraph (a)(1) of section 8 amends 5 U.S.C. 18351(b) to make all of the withdrawal options set forth in 5 U.S.C. 8433(b) available to any TSP participant covered by CSRS who separates from Government service, regardless of eligibility for basic retirement benefits.

Paragraph (a)(2) of section 8 deletes paragraphs (5), (6), and (8) of section 8351(b) to eliminate references to those participants who were previously restricted in their withdrawal choices.

Paragraph (a)(3) of section 8 redesignates the remaining paragraphs in section 8351(b).

Paragraph (a)(4) of section 8 eliminates the references to "former spouse" in redesignated paragraph (5)(C) of section 8351(b), because all CSRS participants will be subject to the same spousal notice provisions requiring notice of withdrawal to current, but not to former, spouses.

Paragraph (a)(5) of section 8 amends redesignated paragraph (6) of section 8351(b) to clarify that all participants covered by CSRS with account balances of $3,500 or less will receive an automatic payment of their accounts when they separate from Government service unless they exercise one of the withdrawal options available under 5 U.S.C. 8433(b).

Paragraph (a)(6) of section 8 amends redesignated paragraph (7) of section 8351(b) to correct a typographical error in the statute which uses the term "nonforfeiture account balance" rather than the correct term, "nonforfeitable account balance."

Subsection (b) of section 8 makes changes to section 8433 of title 5, which set forth the options for withdrawal of TSP accounts by employees covered by the Federal Employees' Retirement System (FERS). All TSP participants covered by FERS will now be subject to the same withdrawal provisions.

Paragraph (b)(1) of section 8 amends section 8433(b) to provide that all of the withdrawal options set forth therein are available to any TSP participant covered by FERS who separates from Government service, regardless of eligibility for basic retirement benefits. Paragraph (b)(2) of section 8 deletes subsections (c) and (d) of section 8433 to eliminate references to those participants who were previously restricted in their withdrawal choices. Paragraph (b)(2) also redesignates the remaining subsections of section 8433 accordingly.

Paragraph (b)(3) of section 8 amends redesignated subsection (c)(1) of section 8433 to eliminate language referring to deleted subsections (c) and (d) and corrects a reference to the Internal Revenue Code which changed by Public Law 102-318.

Paragraph (b)(4) of section 8 amends redesignated subsection (d)(2) of section 8433 to eliminate language referring to deleted subsection (c)(2)

Paragraph (b)(5) of section 8 amends redesignated subsection (f) of section 8433 to clarify that all participants covered by FERS with account balances of $3,500 or less will receive an automatic payment of their accounts when they separate from Government service unless they exercise one of the withdrawal options available under section 8433(b).

Subsection (c) of section 8 amends section 8434(c) of title 5 to eliminate a distinction between groups of employees with reference

to the availability of discontinued annuity options. This distinction is no longer required because all employees will be treated as having the same eligibility for all TSP withdrawal options.

Subsection (d) of section 8 makes changes to the spousal rights provisions of section 8435 of title 5 to afford the same treatment to spouses of all participants covered by FERS who separate from Government employment and who now have identical withdrawal options.

Paragraph (d)(1) of section 8 amends section 8435 (a) to refer only to withdrawal elections made under subsection (b) of section 8433, since those elections are the only ones now available to FERSS participants.

Paragraph (d)(2) of section 8 deletes section 8435(b), which currently provides that the current and former spouses of FERS participants who separate from Government Service without entitlement to basic retirement benefits be notified of the mandatory transfer of a participant's account balance, if it exceeds $3,500. Since the mandatory transfer has been eliminated, the separate spousal rights provision applicable to the mandatory transfer is no longer necessary.

Subsection (d)(3) of section 8 redesignates the remaining subsection of section 8435.

Paragraph (d)(4) of section 8 amends redesignated section 8435(b)(2), dealing with the joint waiver of the joint and survivor annuity when another annuity method is chosen. The amendment deletes the current reference to certain sections of title 5 under which an employee of Member is "retiring" and deletes paragraph (2)(B) in its entirety. Because all FERS participants will now have the same withdrawal options when they separate, without regard to their retirement eligibility, the joint waiver of the prescribed annuity option set forth in current paragraph (2)(A) will apply in all situations. There is no situation in which the alternative method set forth in current paragraph (2)(B) would apply.

Paragraph (d)(5) of section 8 deletes language from redesignated section 8435(c)(1) concerning mandatory transfers, which would no longer exist.

Subsection (e) of section 8 amends section 8440a of title 5, relating to TSP participation by Article III justices and judges, to provide that all TSP withdrawal options are available to justices and judges upon the occurrence of any of the events that entitle them to withdraw their TSP accounts.

Subsection (f) of section 8 amends section 8440b of title 5, relating to TSP participation by bankruptcy judges and magistrates, to provide that all TSP withdrawal options are available to such judges upon the occurrence of any of the events that entitle them to withdraw their TSP accounts.

Subsection (g) of section 8 amends section 8440c of title 5, relating to TSP participation by Claims Court judges, to provide that all TSP withdrawal options are available to such judges upon the occurrence of any of the events that entitle them to withdraw their TSP accounts.

Subsection (h) of section 8 amends section 8440d of title 5, relating to TSP participation by judges of the United States Court of Veterans Appeals, to provide that all TSP withdrawal options are

available to such judges upon the occurrence of any of the events that entitle them to withdraw their TSP accounts.

Subsection (i) of section 8 makes necessary technical and conforming amendments to change references to sections, subsections, and paragraphs that have been redesignated in this bill.

Subsection (j) of section 8 sets forth an interim provision, to be effective upon enactment of this bill, that will immediately eliminate the requirement that TSP participants described in section 8433(d) of title 5 withdraw their accounts from the TSP if they separate from Government service prior to the effective date of the provisions affording them full withdrawal options.

Subsection (k) of section 8 establishes effective dates for the amendments made by section 8. Except for the interim provision [subsection (j)], these provisions of section 8 will be effective one year after the date of enactment of the bill, or upon such earlier date as the Executive Director of the Federal Retirement Thrift Investment Board provides in regulations.

Subsection (a) of section 9 amends the Alaska Railroad Transfer Act of 1982 to allow the Alaska Railroad Corporation (ARRC) to offer the Act's separation incentive program to ARRC employees who remained covered by the Civil Service Retirement System when the Railroad was transferred to the state of Alaska.

Subsection (b) of section 9 amends the Alaska Railroad Transfer Act of 1982 to reduce the amount of service time required for ARRC employees, who remained covered by the Civil Service Retirement System, to carry both Federal health and life insurance benefits into retirement. To be eligible for these retirement benefits under current law, ARRC employees need to have participated in the Federal Health Benefits and Federal Employees Life Insurance programs for three years prior to the railroad transfer and have 26 years of combined civil service and ARRC service. This subsection would modify the latter requirement to 20 years.

VI. REGULATORY IMPACT OF LEGISLATION

Paragraph 11 (b) of rule XXVI of the Standing Rules of the Senate requires that each report accompanying a bill evaluate "the regulatory impact which would be incurred in carrying out the bill.” Enactment of S. 1535 would not result in any additional regulation of individuals (with the small exception that employees who received a separation incentive would be required to repay it if they returned to government service), and the Committee does not anticipate any increased regulatory burden.

VII. COST ESTIMATE OF LEGISLATION

Pursuant to Section 403 of the Congressional Budget Act, the Congressional Budget Office (CBO) has reviewed the cost implications of S. 1535. The following is CBO's estimate of the potential costs of this legislation.

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

1. Bill number: S. 1535.

2. Bill title: Federal Workforce Restructuring Act of 1993.

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