[Congressional Record Volume 142, Number 113 (Monday, July 29, 1996)]
[House]
[Pages H8626-H8627]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]
AUTHORIZING VOLUNTARY SEPARATION INCENTIVE PAYMENTS TO EMPLOYEES OF AID
Mr. BEREUTER. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3870) to authorize the Agency for International Development
to offer voluntary separation incentive payments to employees of that
agency, as amended.
The Clerk read as follows:
H.R. 3870
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. VOLUNTARY SEPARATION INCENTIVES FOR EMPLOYEES OF
THE AGENCY FOR INTERNATIONAL DEVELOPMENT.
(a) Definitions.--For the purposes of this Act--
(1) the term ``agency'' means the Agency for International
Development;
(2) the term ``Administrator'' means the Administrator,
Agency for International Development; and
(3) the term ``employee'' means an employee (as defined by
section 2105 of title 5, United States Code) who is employed
by the agency, is serving under an appointment without time
limitation, and has been currently employed for a continuous
period of at least 12 months, but does not include--
(A) any employee who, upon separation and application,
would then be eligible for an immediate annuity under
subchapter III of chapter 83 (except for section 8336(d)(2))
or chapter 84 (except for section 8414(b)(1)(B)) of title 5,
United States Code, or corresponding provisions of another
retirement system for employees of the agency;
(B) a reemployed annuitant under subchapter III of chapter
83 of chapter 84 of title 5, United States Code, or another
retirement system for employees of the agency;
(C) an employee having a disability on the basis of which
such employee is or would be eligible for disability
retirement under the applicable retirement system referred to
in subparagraph (A);
(D) an employee who is to be separated involuntarily for
misconduct or unacceptable performance, and to whom specific
notice has been given with respect to that separation;
(E) an employee who, upon completing an additional period
of service, as referred to in section 3(b)(2)(B)(ii) of the
Federal Workforce Restructuring Act of 1994 (5 U.S.C. 5597
note), would qualify for a voluntary separation incentive
payment under section 3 of such Act;
(F) an employee who has previously received any voluntary
separation incentive payment by the Government of the United
States under this Act or any other authority and has not
repaid such payment;
(G) an employee covered by statutory reemployment rights
who is on transfer to another organization; or
(H) any employee who, during the 24-month period preceding
the date of separation, received a recruitment or relocation
bonus under section 5753 of title 5, United States Code, or
who, within the 12-month period preceding the date of
separation, received a retention allowance under section 5754
of such title 5.
(b) In general.--The Administrator, before obligating any
resources for voluntary separation incentive payments under
this Act, shall submit to the House and Senate Committees on
Appropriations and the Committee on Governmental Affairs of
the Senate and the Committee on Government Reform and
Oversight of the House of Representatives a strategic plan
outlining the intended use of such incentive payments and a
proposed organizational chart for the agency once such
incentive payments have been completed.
(2) Contents.--The agency's plan shall include--
(A) the positions and functions to be reduced or
eliminated, identified by organizational unit, geographic
location, occupational category and grade level; and
(B) the number and amounts of voluntary separation
incentive payments to be offered; and
(C) a description of how the agency will operate without
the eliminated positions and functions.
(c) Authority To Provide Voluntary Separation Incentive
Payments.--
(1) In general.--A voluntary separation incentive payment
under this Act may be paid by the agency to not more than 100
employees of such agency and only to the extent necessary to
eliminate the positions and functions identified by the
strategic plan.
(2) Amount and treatment of payments.--A voluntary
separation incentive payment under this Act--
(A) shall be paid in a lump sum after the employee's
separation;
(B) shall be paid from appropriations or funds available
for the payment of the basic pay of the employees;
(C) shall be equal to the lesser of--
(i) an amount equal to the amount the employee would be
entitled to receive under section 5595(c) of title 5, United
States Code, if the employee were entitled to payment under
such section; or
(ii) an amount determined by the agency head not to exceed
$25,000;
(D) may not be made except in the case of any employee who
voluntarily separates (whether by retirement or resignation)
before February 1, 1997;
(E) shall not be a basis for payment, and shall not be
included in the computation, of any other type of Government
benefit; and
(F) shall not be taken into account in determining the
amount of any severance pay to which the employee may be
entitled under section 5595 of title 5, United States Code,
based on any other separation.
(d) Additional Agency Contributions to the Retirement
Fund.--
(1) In general.--In addition to any other payments which it
is required to make under subchapter III of chapter 83 or
chapter 84 of title 5, United States Code, the agency shall
remit to the Office of Personnel Management for deposit in
the Treasury of the United States to credit of the Civil
Service Retirement and Disability Fund an amount equal to 15
percent of the final basic pay of each employee of the agency
who is covered under subchapter III of chapter 83 or chapter
84 of title 5, United States Code, to whom a voluntary
separation incentive has been paid under this Act.
(2) Definition.--For the purpose of paragraph (1), the term
``final basic pay'', with respect to an employee, means the
total amount of basic pay which would be payable for a year
of service by such employee, computed using the employee's
final rate of basic pay, and, if last serving on other than a
full-time basis, with appropriate adjustment therefor.
(c) Effect on Subsequent Employment With the Government.--
An individual who has received a voluntary separation
incentive payment under this Act and accepts any employment
for compensation with the Government of the United States, or
who works for any agency of the Government of the United
States through a personal services contract, within 5 years
after the date of the separation on which the payment is
based shall be required to pay, prior to the individual's
first day of employment, the entire amount of the incentive
payment to the agency that paid the incentive payment.
(f) Reduction of Agency Employment Levels.--
(1) In general.--The total number of funded employee
positions in the agency shall be reduced by one position for
each vacancy created by the separation of any employee who
has received, or is due to receive, a voluntary separation
incentive payment under this Act. For the purposes of this
subsection, positions shall be counted on a full-time-
equivalent basis.
(2) Enforcement.--The President, through the Office of
Management and Budget, shall monitor the agency and take any
action necessary to ensure that the requirements of this
subsection are met.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Nebraska [Mr. Bereuter] and the gentleman from New York [Mr. Engel]
each will control 20 minutes.
The Chairman recognizes the gentleman from Nebraska [Mr. Bereuter].
Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume.
(Mr. BEREUTER asked and was given permission to revise and extend his
remarks.)
Mr. BEREUTER. Mr. Speaker, the Agency for International Development
requested this legislation to help them downsize. The Agency for
International Development, AID, has already trimmed 3,000 positions,
from 11,000 to
[[Page H8627]]
8,000. Unfortunately, AID must reduce its staff at a faster pace and
institutes a layoff, or reduction in force, of 200 people to meet its
personnel targets. Rather than lay off all 200 employees, AID would
like to offer up to 100 employees severance payments, up to $25,000
each, that they would have been able to receive if laid off. It gives
AID the flexibility to find volunteers rather than lay off all 200
people.
{time} 1515
This bill has the support of our Subcommittee on Civil Service
chairman, the gentleman from Florida, Mr. Mica and his counterpart in
the other body, Mr. Stevens of Alaska. I urge adoption by the House.
Mr. Speaker, I reserve the balance of my time.
Mr. ENGEL. Mr. Speaker, I yield myself such a time as I may consume.
Mr. Speaker, I support this bill. As has been explained by the
gentleman from Nebraska [Mr. Bereuter], this bill represents an effort
to help the Agency for International Development to minimize the
reductions in force required by budgetary constraints.
I must say that I regret the budgetary constraints which require the
reductions in force. I have had occasion, of course, to see the good
work that AID has done in many countries around the world. I can tell
you that it is well worth the money and the effort that we put into it.
But we have to be realists and we understand the budgetary problems and
constraints. This simply helps AID minimize these reductions. It is
something that we understand needs to be done. It has bipartisan
support. Therefore, I urge adoption of this bill.
Mr. GILMAN. Mr. Speaker, I joined with the chairman of the Government
Reform Committee's Civil Service Subcommittee, Chairman Mica, to
support H.R. 3870, a bill written at the request of the administration
to allow AID to offer up to 100 employees, who voluntarily resign,
severance payments up to a cap of $25,000. As you know, in the Foreign
Service employees are entitled 1 month severance per year of service.
Civil Service employees are entitled to 1 week severance per year of
service.
Over the past few years, AID's personnel reduced in size from
approximately 11,000 to 8,000 employees, mainly using hiring freezes
that cause AID to lose approximately 120 employees per year. While the
Appropriations Committee provided AID with an operating expense
appropriation level they were assured would prevent layoffs, further
cuts in the President's own fiscal year 1997 budget request caused AID
to accelerate personnel reductions. AID is currently in the process of
laying off 200 employees by conducting a formal reduction in force
[RIF] of 97 Foreign Service and 103 Civil Service employees.
Rather than lay off all 200 employees, AID would like to offer up to
100 employees who voluntarily resign, and are not already eligible to
retire, the opportunity to receive the severance payment they would
have received if they had been laid off, up to a cap of $25,000. In
this way, AID hopes to have 100 volunteers take the place of at least
half of those people scheduled to be laid off. CBO has stated that this
bill would cause the Government to collect an additional $1 million in
mandatory receipts due to payments to Government retirement accounts
required under the bill--thereby making it a net positive debt
reduction measure for the purposes of the ``pay-go'' rules. In an
advisory note, CBO also estimated the bill would cost $3 million in
discretionary spending, all within the already appropriated level of
the AID operating expense account.
This bill is supported by the administration, the American Foreign
Service Association, Mr. Hamilton, Chairman Mica, and his counterpart,
the chairman of the Government Affairs Committee, the senior Senator
from Alaska, Mr. Stevens. Other versions of this language have been
attached to appropriations bills. We now expect that this free standing
measure may be enacted as early as possible to allow AID to make the
best of a bad situation.
We all support AID becoming a smaller, more efficient operation. This
bill will help AID achieve that goal, using volunteers instead of
draftees. I commend the bill to the House and urge its adoption.
Mr. ENGEL. Mr. Speaker, I yield back the balance of my time.
Mr. BEREUTER. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
The SPEAKER pro tempore (Mr. Calvert). The question is on the motion
offered by the gentleman from Nebraska [Mr. Bereuter] that the House
suspend the rules and pass the bill, H.R. 3870, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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