[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6516 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 6516
To provide for retirement equity for Federal employees in nonforeign
areas outside the 48 contiguous States and the District of Columbia,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 16, 2008
Mr. Abercrombie (for himself, Mr. Young of Alaska, and Ms. Hirono)
introduced the following bill; which was referred to the Committee on
Oversight and Government Reform, and in addition to the Committee on
Veterans' Affairs, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide for retirement equity for Federal employees in nonforeign
areas outside the 48 contiguous States and the District of Columbia,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Non-Foreign Area Retirement Equity
Assurance Act of 2008'' or the ``Non-Foreign AREA Act of 2008''.
SEC. 2. EXTENSION OF LOCALITY PAY.
(a) Locality-Based Comparability Payments.--Section 5304(f)(1) of
title 5, United States Code, is amended by striking subparagraph (A)
and inserting the following:
``(A) each General Schedule position in the United
States, as defined under section 5921(4), and its
territories and possessions, including the Commonwealth
of Puerto Rico and the Commonwealth of the Northern
Mariana Islands shall be included within a pay
locality; and''.
(b) Allowances Based on Living Costs and Conditions of
Environment.--Section 5941 of title 5, United States Code, is amended--
(1) in subsection (a), by adding after the last sentence
``Notwithstanding any preceding provision of this subsection,
the cost-of-living allowance rate based on paragraph (1) of
this subsection shall be the cost-of-living allowance rate in
effect on December 31, 2008, except as adjusted under
subsection (c).'';
(2) by redesignating subsection (b) as subsection (d); and
(3) by inserting after subsection (a) the following:
``(b) This section shall apply only to areas that are designated as
cost-of-living allowance areas as in effect on December 31, 2008.
``(c)(1) The cost-of-living allowance rate payable under this
section shall be adjusted on the first day of the first applicable pay
period beginning on or after--
``(A) January 1, 2009; and
``(B) on January 1 of each calendar year in which a
locality-based comparability adjustment takes effect under
section 4 (2) and (3) of the Non-Foreign Area Retirement Equity
Assurance Act of 2008.
``(2)(A) In this paragraph, the term `applicable locality-based
comparability pay percentage' means, with respect to calendar year 2009
and each calendar year thereafter, the applicable percentage under
section 4 (1), (2), or (3) of Non-Foreign Area Retirement Equity
Assurance Act of 2008.
``(B) Each adjusted cost-of-living allowance rate under paragraph
(1) shall be computed by--
``(i) subtracting 65 percent of the applicable locality-
based comparability pay percentage from the cost-of-living
allowance percentage rate in effect on December 31, 2008; and
``(ii) dividing the resulting percentage determined under
clause (i) by the sum of--
``(I) one; and
``(II) the applicable locality-based comparability
payment percentage expressed as a numeral.
``(3) No allowance rate computed under paragraph (2) may be less
than zero.
``(4) Each allowance rate computed under paragraph (2) shall be
paid as a percentage of basic pay (including any applicable locality-
based comparability payment under section 5304 or similar provision of
law and any applicable special rate of pay under section 5305 or
similar provision of law).''.
SEC. 3. ADJUSTMENT OF SPECIAL RATES.
(a) In General.--Each special rate of pay established under section
5305 of title 5, United States Code, and payable in an area designated
as a cost-of-living allowance area under section 5941(a) of that title,
shall be adjusted, on the dates prescribed by section 4 of this Act, in
accordance with regulations prescribed by the Director of the Office of
Personnel Management under section 9 of this Act.
(b) Department of Veterans Affairs.--Each special rate of pay
established under section 7455 of title 38, United States Code, and
payable in a location designated as a cost-of-living allowance area
under section 5941(a)(1) of title 5, United States Code, shall be
adjusted in accordance with regulations prescribed by the Secretary of
Veterans Affairs that are consistent with the regulations issued by the
Director of the Office of Personnel Management under subsection (a).
(c) Temporary Adjustment.--Regulations issued under subsection (a)
or (b) may provide that statutory limitations on the amount of such
special rates may be temporarily raised to a higher level during the
transition period described in section 4 ending on the first day of the
first pay period beginning on or after January 1, 2011, at which time
any special rate of pay in excess of the applicable limitation shall be
converted to a retained rate under section 5363 of title 5, United
States Code.
SEC. 4. TRANSITION SCHEDULE FOR LOCALITY-BASED COMPARABILITY PAYMENTS.
Notwithstanding any other provision of this Act or section 5304 or
5304a of title 5, United States Code, in implementing the amendments
made by this Act, for each non-foreign area determined under section
5941(b) of that title, the applicable rate for the locality-based
comparability adjustment that is used in the computation required under
section 5941(c) of that title shall be adjusted effective on the first
day of the first pay period beginning on or after January 1--
(1) in calendar year 2009, by using \1/3\ of the locality
pay percentage for the rest of United States locality pay area;
(2) in calendar year 2010, by using \2/3\ of the otherwise
applicable comparability payment approved by the President for
each non-foreign area; and
(3) in calendar year 2011 and each subsequent year, by
using the full amount of the applicable comparability payment
approved by the President for each non-foreign area.
SEC. 5. SAVINGS PROVISION.
(a) In General.--The application of this Act to any employee may
not result in the amount of the decrease in the amount of pay
attributable to special rate pay and the cost-of-living allowance as in
effect on the date of enactment of this Act exceeding the amount of the
increase in the locality-based comparability payments paid to that
employee.
(b) Sense of Congress.--It is the sense of Congress that the
application of this Act to any employee should not result in a decrease
in the take home pay of that employee.
SEC. 6. APPLICATION TO OTHER ELIGIBLE EMPLOYEES.
(a) In General.--
(1) Definition.--In this subsection, the term ``covered
employee'' means--
(A) any employee who--
(i) on--
(I) the day before the date of
enactment of this Act--
(aa) was eligible to be
paid a cost-of-living allowance
under 5941 of title 5, United
States Code; and
(bb) was not eligible to be
paid locality-based
comparability payments under
5304 or 5304a of that title; or
(II) or after the date of enactment
of this Act becomes eligible to be paid
a cost-of-living allowance under 5941
of title 5, United States Code; and
(ii) except as provided under paragraph
(2), is not covered under--
(I) section 5941 of title 5, United
States Code (as amended by section 2 of
this Act); and
(II) section 4 of this Act; or
(B) any employee who--
(i) on the day before the date of enactment
of this Act--
(I) was eligible to be paid an
allowance under section 1603(b) of
title 10, United States Code;
(II) was eligible to be paid an
allowance under section 1005(b) of
title 39, United States Code; or
(III) was employed by the
Transportation Security Administration
of the Department of Homeland Security
and was eligible to be paid an
allowance based on section 5941 of
title 5, United States Code; or
(ii) on or after the date of enactment of
this Act--
(I) becomes eligible to be paid an
allowance under section 1603(b) of
title 10, United States Code;
(II) becomes eligible to be paid an
allowance under section 1005(b) of
title 39, United States Code; or
(III) is employed by the
Transportation Security Administration
of the Department of Homeland Security
and becomes eligible to be paid an
allowance based on section 5941 of
title 5, United States Code.
(2) Application to covered employees.--
(A) In general.--Notwithstanding any provision of
title 5, United States Code, for purposes of this Act
(including the amendments made by this Act) any covered
employee shall be treated as an employee to whom
section 5941 of title 5, United States Code (as amended
by section 2 of this Act), and section 4 of this Act
apply.
(B) Pay fixed by statute.--Pay to covered employees
under section 5304 or 5304a of title 5, United States
Code, as a result of the application of this Act shall
be considered to be fixed by statute.
(C) Performance appraisal system.--With respect to
a covered employee who is subject to a performance
appraisal system no part of pay attributable to
locality-based comparability payments as a result of
the application of this Act including section 5941 of
title 5, United States Code (as amended by section 2 of
this Act), may be reduced on the basis of the
performance of that employee.
(b) Postal Service Employees in Nonforeign Areas.--Section 1005(b)
of title 39, United States Code, is amended by inserting ``and the Non-
Foreign Area Retirement Equity Assurance Act of 2008'' after ``Section
5941 of title 5''.
SEC. 7. ELECTION OF ADDITIONAL BASIC PAY FOR ANNUITY COMPUTATION BY
EMPLOYEES.
(a) Definition.--In this section the term ``covered employee''
means any employee--
(1) to whom section 4 applies;
(2) who is separated from service by reason of retirement
under chapter 83 or 84 of title 5, United States Code, during
the period of January 1, 2009, through December 31, 2011; and
(3) who files and election with the Office of Personnel
Management under subsection (b).
(b) Election.--
(1) In general.--An employee described under subsection (a)
(1) and (2) may file an election with the Office of Personnel
Management to be covered under this section.
(2) Deadline.--An election under this subsection may be
filed not later than December 31, 2011.
(c) Computation of Annuity.--For purposes of the computation of an
annuity of a covered employee any cost-of-living allowance under
section 5941 of title 5, United States Code, paid to that employee
during the first applicable pay period beginning on or after January 1,
2009 through the first applicable pay period ending on or after
December 31, 2011, shall be considered basic pay as defined under
section 8331(3) or 8401(4) of that title.
(d) Civil Service Retirement and Disability Retirement Fund.--
(1) Employee contributions.--A covered employee shall pay
into the Civil Service Retirement and Disability Retirement
Fund--
(A) an amount equal to the difference between--
(i) employee contributions that would have
been deducted and withheld from pay under
section 8334 or 8422 of title 5, United States
Code, during the period described under
subsection (c) of this section if that
subsection had been in effect during that
period; and
(ii) employee contributions that were
actually deducted and withheld from pay under
section 8334 or 8422 of title 5, United States
Code, during that period; and
(B) interest as prescribed under section 8334(e) of
title 5, United States Code, based on the amount
determined under subparagraph (A).
(2) Agency contributions.--
(A) In general.--The employing agency of a covered
employee shall pay into the Civil Service Retirement
and Disability Retirement Fund an amount for applicable
agency contributions based on payments made under
paragraph (1).
(B) Source.--Amounts paid under this paragraph
shall be contributed from the appropriation or fund
used to pay the employee.
(3) Regulations.--The Office of Personnel Management may
prescribe regulations to carry out this section.
SEC. 8. ELECTION OF COVERAGE BY EMPLOYEES.
(a) In General.--Notwithstanding any other provision of this Act,
an employee may make an irrevocable election in accordance with this
section, if--
(1) that employee is paid an allowance under section 5491
of title 5, United States Code, during a pay period in which
the date of the enactment of this Act occurs; or
(2) that employee--
(A) is a covered employee as defined under section
6(a)(1); and
(B) during a pay period in which the date of the
enactment of this Act occurs is paid an allowance--
(i) under section 1603(b) of title 10,
United States Code;
(ii) under section 1005(b) of title 39,
United States Code; or
(iii) based on section 5941 of title 5,
United States Code.
(b) Filing Election.--Not later than 60 days after the date of
enactment of this Act, an employee described under subsection (a) may
file an election with the Office of Personnel Management to be treated
for all purposes--
(1) in accordance with the provisions of this Act
(including the amendments made by this Act); or
(2) as if the provisions of this Act (including the
amendments made by this Act) had not been enacted, except that
the cost-of-living allowance rate paid to that employee shall
be the cost-of-living allowance rate in effect on December 31,
2008, for that employee without any adjustment after that date.
(c) Failure To File.--Failure to make a timely election under this
section shall be treated in the same manner as an election made under
subsection (b)(1) on the last day authorized under that subsection.
(d) Notice.--To the greatest extent practicable, the Office of
Personnel Management shall provide timely notice of the election which
may be filed under this section to employees described under subsection
(a).
SEC. 9. REGULATIONS.
(a) In General.--The Director of the Office of Personnel Management
shall prescribe regulations to carry out this Act, including--
(1) rules for special rate employees described under
section 3;
(2) rules for adjusting rates of basic pay for employees in
pay systems administered by the Office of Personnel Management
when such employees are not entitled to locality-based
comparability payments under section 5304 of title 5, United
States Code, without regard to otherwise applicable statutory
pay limitations during the transition period described in
section 4 ending on the first day of the first pay period
beginning on or after January 1, 2011; and
(3) rules governing establishment and adjustment of saved
or retained rates for any employee whose rate of pay exceeds
applicable pay limitations on the first day of the first pay
period beginning on or after January 1, 2011.
(b) Other Pay Systems.--With the concurrence of the Director of the
Office of Personnel Management, the administrator of a pay system not
administered by the Office of Personnel Management shall prescribe
regulations to carry out this Act with respect to employees in such pay
system, consistent with the regulations issued by the Office under
subsection (a).
SEC. 10. EFFECTIVE DATES.
(a) In General.--Except as provided by subsection (b), this Act
(including the amendments made by this Act) shall take effect on the
date of enactment of this Act.
(b) Locality Pay and Schedule.--The amendments made by section 2
and the provisions of section 4 shall take effect on the first day of
the first applicable pay period beginning on or after January 1, 2009.
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