LETTER TO ROBERT W. MAGEE FROM FRANK R. WOLF

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90M00004R000900160008-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 10
• Document Creation Date: December 27, 2016
• Document Release Date: December 7, 2011
• Sequence Number: 8
• Publication Date: June 10, 1987
• Content Type: LETTER

STAT
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. ANK R. WOLF
WASHSEOTON OFFICE:
130 CANNON BUILDING
WASHINGTON, DC 20515
[phone]
CONSTRUvN, SERVICE= OFFICES:
1651 OLD MEADOW ROAD
Suitt 116
MCLEAN. VA 22102
[phone]
19 EAST MARKET STNEt,
ROOM 45
Ltuhpullo, VA 22076
[phone]
Congram; of the 'ttitebtotels.
)Douece of Iepregentatibeg "? ? `
1a{naton. at 2051 ti
June 10, 1987
Mr. Robert W. Magee
Director of Personnel
Central Intelligence Agency
Washington, D.C. 20505
Dear Mr. Magee:
COMMITTEE ON APPROPRIATIONS
SUSCOMMMMS:
TRANSPORTATM
TREASURY---os'{AL SERVICi -0ENNAL
GOVERNMENT :.;.
SELECT COMMITTEE
ne c
ON CHILDREN, YOUTH,
AND FAMILIES t
e. ?6 crts1l.
I wanted to let you know that I have introduced H.R. 2091,,
"Special Pay Rates and Civil Service Improvements Act of 1987",
to improve the pay and management of employees of the Federal
Government. I have enclosed a copy for your review.
I would like to have your comments and suggestions on this
legislation. Any additional information about your agency or
problem positions in the agency similar to that which is on the
general information sheet enclosed would be useful to me during
congressional consideration of this measure later this summer.
Specific installations have reported problems in retention of
employees, a decline in the quality of employee applicants, a
high rate of turnover in positions, and extended vacancies. Any
related statistics or data on agency or individual installation
problems you could provide would be most helpful. Also, evaluation of whether H.R. 2091 will address many of theseour
problems would be useful.
I appreciate your attention to this matter.
measures is essential to the successful reform of Agency input on
pr in
federal pay and personnel system. Since hearings o
nothissmattere
are being scheduled for July, your prompt reply to this request
would be helpful.
With best wishes,
FRW/mlf
4 * t
THIS STATIONERY PRINTED ON PAPER MADE WITH RECYCLED FIBERS
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d
to island Naval Shipyard (California)
? Engineer lecruiting problewr
At GS-5 level 731 decline irate
At CS-7 level 76% decline rate
Angeles Air Force -- Space Division
GL IlEMPTION
National institute of Neurological and Csswuafeati . a
and Stroke (It3NCDs)
? Frot?1en,t with clerical.,; ada.inirtrative Professionals and
enginecrs:
TutDom I Yacaot till Tim
c)rrieal 29% 32.0% 25-35 days
Adtinirtrotive
erofesalonala if.$% . 33.31 36-10 days
rngineara 19.7% 30% 70-15 days
? ific Missile Test Center (San Nicholas island, CA)r
? Bar 260 vacant engineer positions (32% of authorised
strength)
? Has 12 vacant scientist positions (It of authorised
strength)
erdeen Army Proving Ground (Aberdeen, MD) --
? Turnover of civilian guards -- 19.3%
??.acos AFB -- Boston, Ease. --
? Turnover of clericals -- 30%
Angeles District Army Corps of Engineers --
? Turnover of engineers -- 18.7%
? Turnover of clerical, -- 20%
? Problerr with filling jobs in a reasonable time period:
Positioa rill Ting
engineers: s0 days
clerk/typist: 53 days
voucher exar..iner: 246 days
.?ndorf AF) -- Ancl,cragt, Alaska --
? Facing eontir.uour turnover:
P0111;100 Turooytr rate
Firefighters 109%
Procurement Agents 671
Procurement Clerks 80%
Eud9et Analysts 67%
Nurses 60%
Personnel Specialists 58%
Clerk/Typists 76%
? NJ" recruited for 2 ears to ?4
eer*
6 doctors to become director of ipr3PCDS. aAllndeclineditheo
porition due to salary -- position has retained unfilled
since 1082.
? Non-cor-petitire salaries: Loss of physicians to other a Salaries ondtheaoutsidearangingiframs$12,00oitated py snot
=?i~0,Ob0 not
Naval Surface Weapons Center -- Dahlgren, VA --
? Delays in OPk approval creates a problem, Wecogqnnising a
need for compute: scientists and enginecrs, WSWC deve]opet
special pay rot: Proposal Within 2 months and submitted it
to OPK. it took CPN 2.5 years to sign.
? Without direct hire authority, it takes 6 veV1a16 ;et
responses on the OPN register. most applicants have Circa
found other esployeent by then. -..,..
? Turnover of journeyman engineers is on the riser
1980-1983 -- as 13 -- 3% turnover
1181 % ?- rrie?=
CS 13 !t turnover
]985 -- 65 33 -- 36% turnover
Letterman Army Medical Center -- San Francisco, CA --
? Experiencing hirclags ranging fro, 86 - 237 days.
? Ruch of problem precipitated by non-competitive salaries:
201MOD toy Diffetetwt$ Vitb Printt StgtOr
Purse $6700
Pharmacist $10,900
Clerk Typist $2400-2600
Secretary 0600
Bill AFB -- Ogden, Utah --
? Quality of recruits is a problem, --
Getting those in 2.5 CPA range (private sector goes f
3.1 CPA and above)
? Turnover in engineering skills -- 23%
? Average fill time -- 82 days
Wright-patteison AFB -- Dayton, Ohio --
? Quality of recruits is declining:
1983 bYtragr BCCruiti
2984 3.] GPA
2985 2.8 CPA
2.7 GPA
? TWO-thirds of engineers leaving, leave for higher
industry and do not stay in the Dayton, Ohio area.
Naval Alt Aevork Facility -- Alameda, CA
? Wage inversion problem Where wage grade er..ployeer will r
take supervisory positions due to lower rates of is
creating a high turnover pay rate at the journeyman level.
Poritioo
Production Controller 311
industrial engineer Technician 2!t
Quality Assurance Specialists 21%
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United states
of Arnerica
nr 4lIlJrtZZioflaL1Recovd
PROCEEDINGS AND DEBATES OF THE 10 r 1-IMI-W 0 t) CONGRESS FIRST
SESSION
? WASHINGTON
THURSDAY, APRIL 9, 1987
na)y
House o Representatives
r
,
THE SPECIAL This section also erpsnds
SERVICE IMPRO PAY AND CIVIL, tMe hl current he current beyond proms transition n/tci for
rsntly, a loss of personnel to private hldurr. Of the special d to snare
more out
employees
(h~'- WOLF asked and y' the o pay rate program since . the -
was given bey aubssthoriwhich a spipay periodic step increases will be different and Address send House f per- rate ti can Particular Problem This limits tion the normal GS, PMRB, US or other qty
from
remarks extend hill; fed problem because many ? system step Increases,
and include therein extrane? sector count rrtr lobs have no private Adds new section-Section a303s.~bus material.) poToCe~fflcers and firefighters) (such an Increases: Mr. WOLF. Mr. , is a) Prividpertaodec sSPecial tep increases y
introducing the Special today I am amended to Intl de other the statute is Service Improvements Pct ofd Civil may causing. such rude other factors which I" manner to General schedule employees,
which is a tray crecruitment and retention (b) Relaxes In{Kai waiting pniptj, to
package of reforms affect- non-fedtles SE Pay Of federal and/or allow for rapid advancement through the
period # civil service employees and condkl P1yem? undesirable working grade du ring the
ees, retie- ? onto remote geographic lo^atio first three step$ of the
n, and tirade. Authority is granted to
developing this bill. I have other factors which determined in miniimum requirement of one walgr the
worked closely with Federal empi accordance with Prescribed by Pportunity for year ~
In organizations, the N ation 1, oree the President taking into Consideration the will serve as an Attractive re 'dng too n pos Lion . of Retired Assocta? cut es ow hir rate ?f itiona, number pe ace recruiting tool io
Federal ag. nature of the w kof g top quality lob candidates to
ti 4RRF personn ired el officials e$?tion n ent, rumof Pending ref o enrlron- choose government sera toe, A
. a gees. significant dent~ellguble
dminLstratton..
cerned of this authority
Ride prorlde meChantUOirnan
c officials and con- oempl f recruits or o hicant Cline In the quskits to Protect aim1....._moat ..-~-?--
.*.
.
..
tr.
t~e,_ _
posit
e ges t
o Correct errors. d
i
shortcomin current statute and establish a the
for employees and retirees. bneilts
I improvements vleRsed to offer this for Federal emplo a es
and retirees and hope my colleagues
will loin in supporting these needed
lmprorements in the civil service. A
section t d d3with this sthternen the bill
BILL AxALYSrs
TITLE 1--SPECIAL PAY AUTRORrly
?6C 1101. ALTHoRrn RELATING TO RIGIIEa RATES
or PAY.
fa) Expands the pay range beyond the cur.
rent General Schedule grade limitations so
that higher
Individuals salaries can be established for ? .
in positions which are or are
llkelS to become significantly handicapped
in recruiting or retaining qualified individ.
U26" to Perform those Jobs.
The range may be expanded to aceommo.
date the needs of the problem 'positions.
The minimum rate, however, may not be
leas than the minimum rate' pal by the
General Schedule for this grade nor can the
maximum rate exceed the Executive Level V
Day cap.
..W raVueati? In recent an al -e-jux neaa in cases when
ea
Candidates ncieshave lost prospective ternative Personnel system lob within grade System is in pla or other
j1e waiti rent for
quest Agencies in Establishes new section-.Beeson .
submit a rate rate cies will Bonus Payments: 6303b
Dreacrlb dy egula ons and OPM mew la/ Establishes recruitment re. 'Pond to the application in writing bonuses (not to exceed $10.000)
etention
45 days Approved the application
autanon y will ll btn effect Incentives for individuals provide 'MIS
to hoose ftwo year, o year be In may te~esi Incentive' for seniior pers federal in.
for o amended, though, p'uticulath if after staq With the federal to governmen supe~d to
one ]emsyIntear,ens theifyrecruiting or retention prob. P ill es for Individuals take ttr
n
. Nothing in this statute pre- positions
eludes An agency from seeking a new rate fbJ Prorides
request even prior to the expiration of rate designed an recruitment in-service 4
Previously approved the twoye&r rate author! ruses to attract and keep valuable employ.
Ity. ees. Receipt of a bonus reprents (c) Provides that OPM may reviere annu? ment on the Part of the idiidua a ern
ally an agency's special pay rate Program In government service for certain remain
The authorization of higher rates expires Period to be determined between the m&?
the end of two years or upon OPM's making vidual and the agency. Such service agree,^'`+
a written determination that such special meet' can not require more rates are no longer needed to deal with the and should outline it-hat will happen 3
recruitment and retention Problem. yGirs~ sho
fbJ Aligns {n, the Individual depart before comPleting the =
pay pion provision. If an service agreement. Any bonus ht
Individual covered under a special Pay rate least a a month commitment to continued
leaves, the pay aesocisted with that Position service. requires air
does not remain In effect if the agency's ape- If an individual receives a bonus. vial rate authority has expired The position to a time agreement and then sero~
will revert to General Schedule
grade from government service Pastes ?
IProvides result rates time and Corresponding the remaining' inafi status. doesnot vidult in t specialr. Should the s on bonus relative to that Period samount of
the
d be"
coal rate authority expire, an individuals repaid to the government unlesswaf ed by
Pay is not reduced but wll, continue. In ac- the a n
Pay sncc with the s head. Individuals a ion General Schedule levels by rein se epaarata ed f fr rom m who government are sew viage
e
e as that person Is in that special rate required of a a re:ductionbonu rce will notice time ns to return any W Provides an annual pay increase to be time uened, y bonus amounts for r
available and to amount to at least as much
is the general pay raise a ' `''?,
sl Schedule em l DProved for Gener?
Example: If. on OcU
Ployees receive a 3October I, special rate em- ? ~.
following January 1. GGeenernliSchedule em.
Ployees receive a 3
pent
special rate employees wI will rec'elti'etan addl.
tlonrs) 1 percent to as not to fall behind GS
employes.
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12006
CONGRESSIONAL RECORD HOUSE
Ici Provides that bonuses shall be paid
before -the end of the service agreement
whether distributed in a lump sum fashion
or over the course of the service agreement.
Although service agreements may vary, It is
not the tnti'nt of the legislation to hold
such bonuses until the end of a service
agreement. Portions should be paid at ap.
propriate Intervals prior to completion of
the service agreement. I
(dl Provides that bonuses are not eonsid-`
Bred as a part Qf an individual's basic pay.
Establishes new section-Section 5303c.
Advances of Pay:
Ia) Provides for the advancement of basic
pay up to two pay periods for individuals
who are just starting out in civil service and -
are hired under the Special Pay Rate au-
thority. Recent college graduates comprise a
significant portion of special rate-type occu.
Paton recruits. These individuals frequent.
ly do not have the funds for making a secu.
rity deposit on housing or for securing a
mmenntt aauthooria typallots more finaancial advance.
oremployees who are just getting es-
tablish
fbi Requires repayment.
Establishes new section-Section 5303d.
TMAVLI. A" TPAK5PORTATIOx LXPa7gsss FOR
KRW APPOINTLLS
(al Authorizes the agency head to pay
travel and transportation expenses. as
deemed appropriate, for newly hired em-
ployees appointed to special pay rate posi-
tions. This Is a common private sector
option and will assist agencies in attracting
job candidates when recruiting at colleges
and institutions a great distance from the
federal Installation.
Rev. llai Special Apiwlatnrent Authority.
(a) Amends Section 3329 of Title V to pro-
vide direct-hire authority to agencies for the
hiring of recruited candidates (rather than
the current practice of recruiting talent and
then listing persons on an OPM register
which may take up to six months to clear).
Agencies must adhere to the same merit
systems principles. EEO standards and
other regulations which govern hiring pro-
cedures In the federal government. Addi-'+=?
UonallY, by definition, special rates are ap r.
plied when positions cannot be filled. This ..'
direct hire authority may not be used to s
hire lndividuajs over qualified employees al-3.r
ready in-house.
(b/ Directs OPM to prescribe x:
by which Individuals may apply directly to
an agency for appointment to a position for
which this Act applies.
Sec. 1103. Srr,ice Follv?ing Training. xai
taw
(a) Recognize that, in recent years, the.
govcnc>rteni has become a "training ground"
for the private sector-a place where lnddi- a
viduals can get "hands-on" training early in
their careers which is highly marketable In
the private sector. It is necessary to tie some
scrt of service agreement for training pro-
vided at the govcrnrrtant's expense. One of
the reasons that positions under special rate
authority are classified as such and are hard
to keep filled is because of the desirable
training associated with those jobs.
(b) Links training of four Weeks or longer
to a service agreement of at least three
times the length of the training or one year,
whichever is longer. This should help
reduce turnover in these po::itlonc. This ap-
plies to recruits to federal service under the
pecial pay rate authority and does not
apply to training which is required annually
for an Individual to remain proficient in per-
forminv. the lob.
These service agreements are more strin-
sent than those required of other federal
employees for several reasons: 1) the pay as-
sociated with these positions Is higher, 2)
the nature of the training makes these pay
slots a particular target of private sector
employers thus directly contributing to the
classification of these positions as special
pay rate essential; and 3) the combination
of costs associated with the salaries, train-
ing and recruiting matte turnover within the
same fiscal year a financial hardship on the
employing agency. ,
Sec. Isst Ellwln.Utta of on-ti 7Lreet old toe Certain
Pay Atuawity .
(a) Eliminates the current prohibition
against granting an initial entry salary
above step one of the grade-a permission
only granted at grades 09-11 and higher.
S.W. Ilea. grtah Parity among taw Lsfsrrewrat Per.
(a) Directs OPX, through Nis Act, to bring
partly or some sense of equity between law
enforctment personnel within a certain geo-
graphic region. Existing statutory police
pay systems makes parity difficult; however,
this section gives OP1vf the authority to set
law enforcement officers' pay at comparable
levels based on difficulty, danger, or other
appropriate criteria without reducing exist-
ing salary levels.
In the Washington. D.C. area there are at
least ten distinct police forces-the corre-
sponding salaries of which are act without
regard to each other. This section directs
OPM to deal with these Inequities between
police pay systems by using the special rate
authority to make needed adjustments. This
should cut down on adverse selection and
turnover of law enforcement personnel be-
tween agencies.
gw. IDOL tataMtah parity .wont Health Care Personnel.
(a) Directs OPM to deal with the pay prob-
lems created by separate statutory pay sys-
tems granted medical personnel at the Vet-
erans' Administration which is not available
to all other federal medical personnel. Stat-
utory pay systems throughout the govern-
ment contribute to adverse selection be-
tween ? federal agencies where a lucrative
pay system may exist at one agency. but Is
not in effect at the agency across the street.
In recent years, medical personnel in the
federal government (particularly civilian
health care personnel stationed In military
medical facilities) have been turning over at
record rates. In 1986, the national Institutes
of Realtit was forced to shut down 60 beds
In the cancer research ward because of a
severe shortage of nurses. One contributing
factor to this turnover rate Is attributed to
the disparities In salary rates of these indl-
within
the c Veterans Adruinistraton. This
provision gives OPM the authority to estab-
lish health care personnel pay rates at com-
petitive levels with the VA so as to minimize
the costs associated with high turnover.,
Sec. 1107. Appruprlation, UrAteUna.
(a/ Proridrs that the provisions of this Act
shall be funded from existing appropria-
tions.
Sac. 1109. EQert 3.,e t/u,.
(al Provides that Special Pay Rate author-
ity will take effect 120 days after enactment.
Set. 1109. Reporting aegviremen . ? -. :, .
Directs GAO to monitor the special pay
rate program to determine whether It Is ad-
dresing recruitment and retention prob-
lems, to Identify any abuses of this author-
ity, and to make an annual report of its
finding: to Congress.
w
ti
April 9, 1981
TIT" 1t-Mt3crurutsous CIVM Smuvtcs
AU,V1V srtrs
taut. tr01. aeU-ew,rnt CnA{t fw I.w?e UhU,aat Pay.
(a/ Authorizes those federal employees who
participate in the Presidents Executive Ex-
changegth Proegra to ea retirement credit
durin
entire mone yearrnperiod they are
In the exchange proiTam. Under the ex-
change program. Individuals to on "leave
without pay" status beginning with the
fiscal year, however, current law prohibits
the earning of retirement credit for any
period on leave without pay In excess of six
months in any calendar year. Employees
lose three months retirement credit while
ParUclpsling in this program. This provi-
sion will correct discrepancies between fiscal
Year and calendar year requirements.
get. 1201. The feolor Paeciti,e Senke.
(al. Prevents circumvention of the '120-
Day Get-Acquainted Period" Current law
prohibits a reassigiunetu of Senior Execu-
Uves during their first 120 days under a new
politically appointed supervlror. Some agen-
cies have gotten around this restriction by
detailing executives to other positions and
then reassigning them at the end of the 120
days without giving the career executive the
opportunity to "get acquainted" with his or
her new supervisor. This correction will
eliminate this "end run" around this "get
acquainted" period and require that the 120
days be spent under the supervision of the
new political supervisor.
(b) Sets individual SES pay. This correc-
tion will protect the "rank-in-person" provi-
sions established as in integral part of the
Senior Executive corps and would prohibit
agencies from establishing SES pay levels
based on the position rather than perform-
ance as required under the Civil Service
Reform Act of 1978.
(c) Corrects performance awards system.-
Currently, Senior Executives are prohibited
from receiving a Rank Award and a Per-
formance Bonus In the same fiscal year. Be-
cause agencies vary In making such awards
during the year .and because Prealdential
Rank Awards are frequently given late In
the year, this system has defeated the origi-
nal intent of recognizing high-performing
executives. This provision will correct this
conflict of awards.
(di Allows travel and transportation reim-
bursement for the last move home of Senior
EEecutiv es who have been required to relo-
cate during their government service. Cur-
rently military and Foreign Service person-
nel who are relocated by the government
during their government service are reim-
bursed, upon retirement, for the coats of
their last move home.
One atlpulation In being hired Into the
elite senior executives corps is the under-
standing that such executives will move
when directed by the government or face
possible removal if they do not accept the
reassignment. Many agencies have also cited
this lack of "last move home" relmbursabi-
lity as a reason for being unable to recruit
high level, near-retirement age SESers to
take a top assignment at an out of town lo-
cation. This provision allows Senior Execu-
tives who have been directed to relocate
during their chit service careers, and who
are eligible for a Federal annuity, to have
the ..tact move home" reimbursed.
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April 9, 1987 CONGRESSIONAL RECORD - HOUSE
ltt;C. 11e3. I lpt,OY[K ALLnWA!iCES.
(a, Remotes the current statutory limtta.
tiotl of $1O.'day atlotrc nee for employers sta.
tioned at remote worksftes.-This $10/day
allowance was prised to 1966 and has not
been changed since. Clearly it Is inadequate
and contributes to the high turnover rate
among individuals who are already incon.
venle need by remoteness of their employ.
ment.
A specific example in California illustrates
this problem. Employees on the Navy's San
Nicholas Island In the Pacific must take'
ake a
plane on Monday morning from Pt. Mugu,
California, to the Island and are not able to
return until Friday afterr non. For this they
receive ttO/dry abcve their salary. This sec-
tion Peeks to eliminate the Inequitable al-
lowanre rate and provide more flexibility in
the statute to reflect economic changes.
Ib) Removes the 20-year old statutory al.'
lowance limit of 1125 allowance for uni-
forms required as part of Federal employ-
ment In certain positions. Because uniforms
run far in excess of-this amount, an agency
should fully reimburse an employee for the
cost of uniforms. It Is recognized, however,..
that making such cost coverage a mandato.
ry government expense would cause vendors
to significantly increase their charges for
such uniforms. To allow agencies to more
successfully necotiate competitive prices,
the statute is changed to reflect that the
government will pay $400 of the total cost
of the uniform.
Sac. Ifl . I',. of CemreJRatory Tine Off.
(an Allows emP1011 s the option of taking
compensatory time off Instead elf overtime if
they prefer.
Set. lfM. Job Performseee. AMra1.ah; Coa.IS.rotMp for
Wit 4n Grade inenrrea.
(a) Revises current law to show that per-
Jbrmance appraisals must be recorded' in
writing. and that an acceptable level of
competence is decided by such written per.
formance appraisal rather than by the end
of the agency.
TITLE III-RETIREE BENEFITS
See. 1351. Entltlem.M of Ualform Plan t"alle, to
Enroll In other Health S.eef s Mat:.,
(a) Repeals the Retired federal Employees
Health Rene is Act enacted in 1959. Civil
Servants who retired before 1960 are covered
by the Uniform Health Plan carried by
Aetna. This plan is not as comprehensive as
the Federal Employee Health Benefit Pro-
gram (FEI-IBP) which covers federal em.
ployees and retirees since 1960. This legisla..
tion would bring those annuitants under the
FEHBP.
(b) Entitles pre-1960 annuitants to enroll
in the FEHBP In the plan of their choosing,
and directs OPM to notify each retiree cov-
ered under the old Uniform Health Plan of
this choice.
(ci Enrolls automatically those annu-
itants who did not make a FEHBP decision
in a plan similar to the Uniform Health
Plan in which they were previously enrolled
prior to passage of this Act.
(dl-(e) Outlines the necessary administru-
five procedures and regulations required of
OPM.
See. 13fS Re-Enronment by Certaln Annuitant. Is Health
Sen.nte Plan.
(a) Allows a second chance for current re-
tirees to elect coverage under the Federal
Employee Health Benefits Program. Retir.
ees must have been covered by the FEHBP
for at least five years during their active
government service.
(b/ Directs OPM to notify such annuitants
of this opportunity to re-elect coverage and
provides that OPM shall hold an open ses-
sion of six months to give ample time for
ann111t.AMlt to airrt coverage.
Ie) . Prorides the Director of OPM with v.
thorny to enter into agreements With health
benefit earners for the purpose of covering
these annuitants. With lei than the per-
ceent of all annitants having failed to elect
coverage at duals eligible= revisit tthe number his decision wrij be
quite small. To prevent any sort of premium
increase for other health benefits subscrib-
ers, OPM is authorized to change a penalty
fee, or additional premium for this benefit.
Per. 1313. Deferred Annuitant. F.wtNlwe, hr Self Only
C...ran from Self and Faa11y C..eras,
to C.rtaln Cases.
Allows retirees who are eligible for a de.
ferred annuity and are married to an annul.
tant who is currently covered under a
FEHBP "Self and Family enrollment" to be
covered by the FEHBP on a Self Only plan
as lon as the use Only Plan. Two "sseell only" lans are less ex-
Pensive to the annuitant and to the govern.
ment than one '.Self and runny- enroll-
ment. ? . e101 r,.
Sse, 1354'rafenostion I r ta.Pi y.ea ad Asusa.a,, q
Mnk. Choices.
Directs OPM to Provide more information
to subcrfbem on the performance records of
each carrier Including the average amount
of time It takes a carrier to process a sub-
scriber's claim. This provision Is Included so
that subscribers can make Informed enroll-
ment choices.
aee. 1303. Requirement of Carrier, to Sully Certah l,
formatlwft
Directs health beneAts carriers to Include
information in their benefits brouchures on
the amount of time It takes to process a sub.
scriber's claim and Information on what Jus-
ttfications are used to determine "usual, cus-
tomary, or reasonable" expenses,
Se. 1300. Study and Repel by the Diraeter of IS. O(ee ?
of ' raoaad Moy.m.at.
Directs OMP to conduct a study within six
months after passage of this Act on the fea.
siblity and cost effectiveness or desirability
of offering a third enrollment status for
FEIIBP subscribers. Currently, federal em..
Ployees and rettreees can choose between
two categories: "Self only" or "Self and
family".
Traditionally, it was believed that a self
and spouse option would cause adverse se-
lecuon and subsequent higher pre inma
since older employees and retirees were
more likely to choose this option. As the
workforce has changed and more young cou.
ples are delaying the start of a family, this
category may be a realistic option with cost
benefits for the government as well.
See. 1357. $1Suenlist Psymesu of R.ahk aeoefita Sue As.
aui.at..
F HBPd hl h are bothtadm nistMedicare and
ered by the
federal government. The primary carrier
should be able to forward a benefits claim
balance directly to the secondary carrier
before It returns to the annuitant or em-
ployee. This will cut down on unnecessary
paperwork and accounting on the part of
both the government and the older civil
servant. OPM should serve as coordinator
for this process.
See. 1305. Pun.lri., Annuity aenefita.
(a) Makes a technical correction regarding
calculating a reduced annuity. Under P.L.
98-615, Congress accidentally eliminated a
benefit previously allowed- for annuitants
who marry after their annuity begins. Previ.
ous law allowed an annuitant to take a re-
duction In his or her annuity at the time of
marriage to provide for a survivor benefit.
Because of an oversight, though, the law
now requires that an annuitant must make
a contribution toward the survivor benefit
for periods when he or she received a full
annuity but was not married. This provision
corrects the problem and makes clear that
an annuitant should pny for a survivor ben.
efit at the time of marrisee.
H 2007
tbi Directs GAO to study the survivor ben
-
eAt program, The federal survivor benefit ??,
annuity system seems to diminish in value.
'much more quickly than does the standard
annuity. Because a survivor is not in a post-.
tion to supplement his or her Income. It is
essential that the survivor annuity be made
more resilient and durable to outlast the
ravages of inflation. .
GAO IS directed to conduct a study and
make recommendations on cost effective -
ways to provide a stronger survivor annuity.
Program. Such options as a supplemental
contribution to the retirement system for a.
more substantial survivor annuity. provision
of other choices for larger annuity reduc-
tions at retirement, provision of additional
benefits for older. survivors or survivors who.,,
have been 0rldowed for many years, and r
changes in the survivor annuity contribu-?r,
tion formula should be Investigated among ;1.
GAA9 considerate
n-
o
A bill to'Improve the pay and man t
of employees of the Federal Government= r e .
Be it enacted by the Senate and House of .~ .
Representatives. of the United States of
America in Congress assembled.
SECTION 1. SHORT TITLI e.- ?. . .
and Civil= Sey
ActPof
198r, -
TITLE I-SPECIAL PAY AUTHORITY
EEG 1101. ACTHORiTY RELATAAC TO RICHER
RATES OF PAY.
(a) IN Otxg1tAI..-Title 5, United States
Code. is amended by striking out section
5303 and inserting In lieu thereof the fol-
lowing:
'I 330L Higher minimum rates
"(lei) SsbJect.to paragraph (2) of this
subsection, when the Director of the Office
of Personnel Management finds that re-
viduals
forragency~ of desccrribbed Indi-
paragraph (3) of this subsection Is or Is
likely to become significantly handicapped
because of any condition described In para. -
graph (4) of this subsection. the Director
may establish, for one or more areas or loca.
tions where the condition exists, higher
minimum rates of basic pay, The Director
may establish such hither minimum rates
for one or more trades or levels, occupation- -
al groups, series, or clauses
or subdivW
,
.910
t
hereof. and may make corresponding In.
creaser In all step rates of the pay range for
each grade or level for which the higher
minimum rates are so established,
"(2) A minimum rate established for any,
grade or level under paragraph (1) of this
subsection may not exceed the rate of pay
for a position under level V of the Executive
Schedule described pursuant to section
5316.
"(3) The positions referred to In para-
graph (1) of this subsection are positions
paid under- -
"(A) section 5332 of this title;
"(B) the pay scales for employees In the
Department of Medicine and Surgery. Vet.
erans' Administration, under chapter 73 of
title 38; or
"(C) section 403 of the Foreign Service
Act of 1980.
"(4) The conditions referred to fn'para.
graph (1) of this subsection are as follow!: ,
"(A) The rates of pay paid Federal Gov-.
eminent employees of an agency in pod-,
bons referred to in such Paragraph are
lower than the rates of pay paid Federally
Government employees in similar positions
In the same agency or other agencies,
"(B) The rates of pay paid Federal Gov.
eminent employees in positions referred to
in such paragraph are lower than the rates
of pay paid employees of employers other
than the Federal Government in similar Do-
.1,1..
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II ZUU5 CONGRESSIONAL RECORD - HOUSE April 9, 1087
"(C) The working conditions for employ- "(2) If the rates of pay under the General "(A) setoff against accrued pay. oompensa-
ees In positions referred to In such para. 53Schedule 05 o of f this is are title to any Increased fiscal pursuant Year. to flan. suction not Lion, amount of retirement credit, or other
5305 t
graph are undesirable. later than the effective date of the increase amount due We l,dlvidual from the Gov-
"(D)'The positions referred to in such ernment: and
In such rtes. each rate of pay td effect for a
paragraph In a remote geographic loci-'~ position under subsecti on (a) of this section "(B) any ? other method provided by law
bete.-' ' on September 30 of the preceding fiscal year for the recovery of amounts owed to the
"(5) In making findings under paragraph shall be Increased by any percentage that Is Government.
(1) of this subsection. the Director of the not less than the overall percentage of such Notwithstanding the preceding sentence.
Office of Personnel Management shall con- Increase in the General Schedule rates of. the head of the agency concerned may,
sider the number of employees who have ap- pay. Nothing in this paragraph prohibits under the regulations Issued under subseo-
plied for retirement in an agency or will more than one increase in such rate of pay Lion (a) of this section, waive in whole or In
soon be eligible to apply for retirement, at during any fiscal year. Part a right of recovery under this subsec-
the time the Director Is making findings ??(g) The Director of the Office of the Per. Uon If it is shown that the recovery would
under paragraph (1). the rate of turnover In cannel Management shall prescribe proce- be against equity and good conscience or
positions. vacancies in positions, the length dures for converting positions covered by against the public Interest.
of time necessary to recruit Individuals to the pay rate system administered under this "(c) The full amount of a bonus under
fill vacancies, the undesirable nature or en- section to the Orneral Schedule, the per. this section shall be paid, whether in a lump
cironment of the work, any marked decline formance management and recognition sum or-In the form of periodic payments.
In the Quality of employee applicants, and system under chapter 54 of this title, the before the and of the period of service
any other Information the Director deter- Senior Executive Service, or another appro- agreed to under subsection (b) of this sec-
mines appropriate. priate pay rate system. Lion.
(bXl) The head of an agency may fe- "(d) A payment under this section is not
le r
quest the Director of the Office of Person- .1 "03s. period
W Management to establish higher rates of (a) Except as p providvided in subsection (b) Dart of the basic pay of an Individual.
basic pay under subsection (a) of this seo? r. of this section. each Individual who is paid a 11 b303e. Advances of pay
Lion for any positions to such agency. The rate established under section 5303 of thin "(a) Under regulations prescribed by the
Director shall transmit to the head of the title and who has not reached the maximum Director of the Office of Personnel Manage.
agency a response to such request within 45 rate of pay for the grade or level of such ID- meat, an agency head may provide for the
days after the date on which the head of an dlvidual's position shall be advanced In pay advance payment of basic pay, covering not
agency transmits the request to the Direct- in the same manner as is provided in section more than 2 pay periods, to any individual
5335 of this title. who is newly appointed to a position If the
(2) Any request under paragraph (1) of "(b) An Individual referred to in subsec- rate of pay for such position is established
this subsection shall specify the period, not tion (a) who Is serving In pay rate 1. 2, or 3 under section 5303 of this title.
to exceed 2 years, for which the head of an. shall be advanced In pay successively to the "(b) In'the case of a failure to repay any
agency anticipates that the exercise of the next higher rate within the pay range In. amount advanced under this section. such
authority under subsection (a) of this see- volved at the beginning of the next pas amount may be recovered, and the recovery
lion is necessary to mitigate the problem period, following the completion of such of such amount may be waived, in the same
specified In the request period of service, not to exceed 52 calendar manner as Is provided in section 6303b(b)(3)
(e) Any exercise of authority under sub- weeks. of this title
section (a) of this section may- "(c) The head of an agency may waive the ? "16303d. Travel and trsnaportation expenses for
"(1) be reviewed by the Director of the application of this section In the case of- new appointees
Office.of Personnel Management once each (U any group of employees of the agency -'The head of an agency may provide
who are participating in a demonstration travel and transportation agency asea under and rear. ) terminate on the earlier of- ? project under chapter 47 of this UUe: or section ands r of this to new sp title n a expenses under
"(2) any other group of employees of t hi "(A) the karat day of the period specified in agency. determined,approprfate by nth(, to a position for which the rates of basic
the request for such exercise of authority head of such agency. ' pay are established under section 5303 of
made under subsection (b) of this section: or ;!~ t this title.".
"(B) the date on which the Director of the,. "15303L Bonus payments (b) TccmncAL Aimtnxsx'r.-The table of
Office of Personnel Management makes a "(aXl) Under regulations prescribed by ' sections for chapter 53 of title 5. -United
written determination that the exercise of the Director of the Office of Personnel States Code, Is amended by striking out the
such authority Is no longer necessary to Management, the head of an agency may Item relating to section 5303 and inserting
mitigate the problem specified In such noti- provide for recruitment and retention bonus In lieu thereof the following:
flcaion. payments under.this section- ~5303. Higher minimum rates.
"(d) A rate of pay established with respect (A) to employees serving In positions for "53035. Periodic Increases.
to a position pursuant to the authority which the minimum rate of basic pay has
under subsection (a) of this section shall been established under section 5303 of this "6303b. Bonus payments.
remain In effect after the termination of title: 5303c. Advances of pay.
the exercise of such authority under subsea "(B) to employees whose responsibilities "5303d. Travel and transportation expenses
Uon (e) of this section. unless such position include the regular supervision of any em- for new appointees.", '
is vacant on the date on which the exercise ployee paid at a rate established under see- EE(: Nt, sPFCLtL APPOLVTMENT AVrdORrrY.
of such authority terminates or, if the post- Uon 5303 of this title: or . (a) Ile OFatsaAL.-Subchapter I of chapter
,cation Is then filled by any Individual, until "(C) subject to the approval of the Direct 33 of title 5. United States Code, is amended
,the beginning of any break In the service 4.L for of the Office of Personnel Management, by adding at the end the following:
such individual..:+`t "'Q1. :'i., ~i::,.,,, , to any other employees of such agency.
"(e) After the termination of the applies. "(2) A bonus payment under this section. `13th. Appointment procedures in areas with re.
lion of a higher minimum rate of basic pay shall be equal to an amount. not to exceed asIImeat or retention problems
established under subsection (a) of this sea $10,000. determined by the head of the "(a) Under regulations prescribed by the
tion with respect to any position, the rate of agency making such payment. Director of the Office of Personnel Manage-
baste pay payable to an employee, while "(bXl) A payment may not be made to an went. the head of an agency may make re-
serving In such position without it break in Individual under this section unless such In- lections and appolnt.mer.ts on an expedited
service In such position (except for a period dividual has entered into an agreement with basis to fill any vacant position for which
of leave without pay) on and after the day the head of the agency employing such Inds- the minimum rate of basic Pay Is ests.b-
before the date of such termination, may vldual which provides that- lished under section 5303 of this title.
not be reduced by reason of such terrain- "(A) such Individual will continue In the "(b) The regulations prescribed under this
Uon. service of the agency for a period of time de? section may include procedures under which
"(f)(1) Subject to paragraph (2) of this terrntned under paragraph (2) of this sub- Individuals may apply to an agency directly
subsection, the rates of basic pay estab- section: and and an individual may be selected for ap-
lished under subsection (a) of this section "(B) if separated (except by reason of a re- pointment to a
may be revised, within the limits of that position from among those
subsection, by the Director of the Office of end d of of duction the period rfrom agreed the d to. , such such Individual the so (b) ) TjDc Tsxb xxrclcaitL AicExnltEec
Peraotmt:l MaruucemenL Revisions under r.-The table of
this paragraph a em have 1vi tome arl will repay to the Government any amounts sections for chapter 33 of title 5. United
effect ar 15w. ?+ paid to such individual under this section. - States Code, is amended by adding after the
?42) The period of service applicable Item relating to section 3328 the following
under paragraph (1) of this subsection may ?'3329. Appointment procedures In areas
not- r r a with recruitment or retention
?'c A) be less than 6 months: and ".
"(3) I)f exceed
an n 3 individual dears.Idua) falls to repay any problems.
RF.C.1193. f;Lltt?I('F. F(1LIAMWIMC TRAi'INC.
amount required under paragraph (1)(B) of (a) IN GxsrsAL.-Scctlon 4108 of title 5.
this subsection. such amount Is recoverable United Slates Code. is amended by redesig-
by the Govcrnmcnt from the individual or nesting subsections: (b), (c), and (d) as subsec-
the estate of such Individual by- fleets (c), (ct), and W. respectively, and by in-
terline niter stibs?rtion (a) the following:
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April 9, 1987
?t b)(I) An employee selected for-
't A) appointment to a position for which
r minimum rate of basic pay is estab.
' .'d under section 5303 of this title: and
( A) training by. In. or through a Govern. ?
?nt facility under this chapter.
all enter into a written agreement (de.
ribed In paragraph (2) of this subsection)
t h the Government before the appoint.
rat and assignment for training are made.
"withstanding the preceding sentence,
head of the agency making the appoint.
? rat may waive the requirement for a writ.
agreement in any case if an agreement
^uch cue would not be In the interest of
it agency or any other public interest,
2) A written agreement entered Into by
employee under paragraph (1) of this
'section shall include provisions which re-
re such employe?-
A) to continue In the service of the em-
)?ee's agency after the end of the employ.
s training period for at least 3 times the
rth of such training period or 12 months,
.iehever is greater, unless the employee is
nluntarily separated from the service of
11 agency; and
"B) to pay to the Government the
runt of the additional expenses incurred
the Government In connection with
? ! ring . such employee if the employee is
-raled from the service of the employ.
agency before the end of the period for
. ,^h the employee has agreed to continue
the service of such agency.
withstanding the preceding sentence,
head of such agency may waive In whole
In part a right of recovery under this
agraph If It Is shown that the recovery
Ad be against equity and good conscience
against the public interest,
'3) This subsection applies with respect
a period of training only if such training
'or a period of four weeks or longer.".
b) Couroaamra AKEjraxaers.-(1) Subsec.
(c) of section 4108 of title 5. United
:tea Code, as redesignated by subsection
is amended by inserting "or (bXl)" after
bsectlon (aX2)".
2) The first sentence of subsection (d) of
-h section, as redesignated by subsection
is amended by striking out "subsection
and Inserting in lieu thereof -subsea.
n (c)".
r'. 1101. ELIMINATION OF GS-11 THRESHOLD FOR
CERTAIN PAY ALT ORiTY.
`:ectlon 5333(a) of title S. United States
'Ac. Is amended by striking out "In GS-11
above" In the second sentence.
1103. SIMILAR RATES OF PAY AMONG LAW ZN.
FORCEMEAT PERSONNEL
a) RATES OP PAY.-The Director of the
'!Ice of Personnel Management should, to
^ greatest degree practicable, prescribe
?s of pay for law enforcement officers
at-
1) establish similar rates of pay for all
., enforcement officers employed In siml-
r positions; and
r 2) considers the degree of difficulty,
^ger, and any other factor the Director
ermines appropriate.
b) DrrINITION.-For purposes of this sec-
'n, the term "law enforcement officer"
all have the same meaning as such term is
ined pursuant to section 8401(17) of title
United States Code.
'r) LIKITATTON -Nothing In the provisions
this section may be construed to reduce
e rate of pay of any law enforcement olfi-
?r.
.r'. 1100. SIMILAR RATES OF TAY AMONG HEALT11
CARE PERgONNEI..
(a) RATES or PAY.-The Director of the
!fist of Personnel Management should, to
greatest degree practicable, prescribe
??s of pray for employers of the Federal
eminent serving In health care positlolu
filar to rates of pay for health care posl-
s to which chapter 73 of title 38, United
i r.;, (`pdr, amilitw,
CONGRESSIONAL RECORD - HOUSE
(b) LtsnvATtoN.-Nothing In the protd-
alons of this section may be construed to
reduce the rate of pay of any person de.
scribed in subsection (a). .. . .,r
SEC. lilt. APPROPRIATiONB LIMITATION.
The administration of the provisions of
this title and the amendments made by this
title shall be to such extent or in such
amounts as are provided in appropriations
Acts. .
SEC: it". FFrECTIVE'DATE.
The amendments made by this title shall
take effect 120 days after the date of the en-
actment of this Act.
W. 110x. REPORTING RCQt'IREMT.
The Comptroller Oeneral-
(1) shall monitor the Implementation of
the amendments made by this title to deter-
mine their effectiveness in dealing with re-
cruitment and retention problems and to
identify any abuses of authority; and
(2) shall submit an annual report to Con-
gress in writing with respect to any findings
under pa agnph (1).-
TITLE II-MISCELLANEOUS CIVIL
SERVICE AMENDMENTS
SEC 1201. RETIREMENT CREDIT FOR LEAVE WITH.
OUT PAY.
(a) C2v2L Ssavics RZT!REMENr AND Drs.
ASsL1rY SYSTEM.-Section 8332(f) of title 5,
United States Code. Is amended by inserting
"an employee participating in the Executive
Exchange Program established by Executive
Order 12394. dated December 5, 198S." after
"service," In the last sentence.
(b) FEDERAL EMPLOYE' Rrrntnratr
SrsTnt.-The last sentence of section
8411(d) of title 5. United States Code (as
added by section 101(a) of the Federal Em-
ployees, Retirement System Act of 1986
(Public Law 99-335; 100 Stat, 523)), Is
amended by striking "Credit" and inserting'
in lieu thereof "Except for an employee par.
ticipating In the Executive Exchange Pro-
gram established by Executive Order 12394.
dated December 5, 1980, credit."
SEC 1202, THE SENIOR EXECUTIVE SERVICE.
(a) REacovAL.-Section 3592(b) of title 5,
United States Code. Is amended-
(1) In paragraph (1) by Inserting "or (3)"
after "paragraph (2)"; and
(2) by Inserting after paragraph (2) the
following new paragraph:
"(3) For the purpose of applying pars.
graph (1) of this subsection to any career
appointee, the number of days that such
career appointee Is detailed to a position
other than the position to which the career
appointee is assigned shall not be counted in
determining the number of days that have
elapsed since an appointment referred to in
subparagraph (A) or (B) of such para.
graph.".
(b) Srrrrxo INDrvravAL SENIOR ExscuTrvx
PAY.-Section 5383(a) of title S. United
States Code, is amended by adding at the
end the following: "Such* criteria may not
include a formal or informal classification
of the position at a particular Senior Execu-
tive Service pay level.".
(c) PrxroRMANca: AwARDs.-Section 5384(a)
of title S. United States Code, is amended by
adding at the end the following new para-
graph:
"(3) Except as provided in section 5383(b)
of this title, payment of a performance
award under this section and an award
under section 4507 of this title may not be
restricted on the basis that both such
awards relate to the same performance
period.".
(d) TRAVEL AIM TRAx!PORTATION EX-
PENSES.-Section 5724(a) of title 5, United
States Code, is amended-
(1) by striking out "and" at the end of
paragraph (1);
(2) by striking out the period at the end of
paragraph (2) and inserting In lieu thereof
": and": and
H 2009
(3) by adding at the end the followtng:
t
"(3) upon the separation of a career ap.
pointee (as defined in section 3132(a)(4) of
this title) the travel expenses of that Indl.
tidual, the transportation expenses of the
immediate family of such Individual. and
the expenses of moving (including trans-
porting. Packing. crating, temporarily stor-
ing. dra)ing. and unpacking) the household
goods of such individual and personal ef.
fects not In excess of 18,000 pounds net
weight, ,to the place where the individual
will ieside (or; if the Individual dies before
the travel, transportation, and moving is
completed, to the place Where the family
will reside). If such Individual-.
"(i) has previously been transferred In the
interest of the Government from one offi-
cial station or agency to another for perma-
nent duty during the term of Government
employment of such Individual: and
"(it) is eligible to receive an annuity. upon
such separation under the provisions of sub-
chapter III of chapter 83 or of chapter 84 of
this. title.". ?
SEC. 1202. EMPLOYEE ALLOWANCES,
(a) REMOTE Woaxsrrs AL owAacs:-.8ec-
tion 5942 of title 5, United States Code. Is
amended to read as follows:
"I 5942. Allowance based on duty at remote work.
sites
"(a) Notwithstanding section 5536 of this
title, an employee of an Executive depart-
ment or an independent establishment who
is assigned to duty, except temporary duty,
at a remote worksite is entitled to receive an
allowance under this section. The allowance
payable to an employee under this section is
in addition to pay otherwise payable to such
employee. -
"(b) The Director of the Office of Person-
nel Management shall prescribe in regula-
tions the amount or amounts authorized to
be paid as an allowance under this section
and the sites, areas, and groups of positions
to which each such amount applies
"(c) For the purposes of this section, the
term 'remote workstte' means a worksite
that is so remote from the nearest estab-
lished communities or suitable places of res-
idence as to require an appreciable degree of
expense, hardship, and inconvenience, ex-
ceeding that which is normally encountered
in metropolitan commuting, for an employ-
ee who is commuting to and from his resi-
dence and such worksite ",
(b) UNnoRM ALrowANcr.-(1XA) Section
5901(a) of title 5, United States Code. Is
amended by striking out "1125 each place
it appears and inserting in lieu thereof
$400".
(B) Section 5002 of title 5, United States
Code, is amended to read as fellows:
"I5902. Increase In maximum uniform allowance
"(a) Notwithstanding the provisions of
section 5901, each of the respective maxi.
mum uniform allowances for the respective
categories of employees to whom uniform
allowances are paid under section 5901 of
this title shall be Increased by the percent-
age increase in the consumer price Index for
July of the year in which the determination
is made above the consumer price Index for
July of the Preceding year. '
"(b) For the purposes of this section.the
term 'consumer price index' means 'price
index' as defined pursuant to section
8331(15) of this title.'.
(2) The first increase In pay rates made
under section 5902 of title 5, United States
Code, (as amended by Paragraph (1)(B) of
this subsection) shall take effect on October
1. 1987.
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CONGRESSIONAL RECORD - HOUSE
SEC 13" WE OF (OD)(PEN3ATORT TIME Orr. ? ? , ?
Section 6544 of title 5. United States Code,
Isamended-; u ,.:. K.
Cl) In subsection (a>, by Inserting "or (If
granted under subsection (c) of this section)
compensatory time" after "overtime pay"
each place It appears, and
(2) by adding at the end the following new
subsection
(c) The head of an agency may. on the
request of an employee of such agency,
grant such employee compensatory time off
from his scheduled tour of duty Instead of
overtime pay for an equal amount of time
spent In irregular or occasional overtime
work,' :' ._
SEC 321$. JOB ,PERrORMANCE APPRAISALS; CON. 'y ..
i; - SIDERATiON FOR wrmIN-GRADC IN. ..r
CREASES.
(a) Paxp sio)1 or PsaronuxcZ ArraAls- ;
ALE,-Section. 4302(b) of title S. United .r
States Code. Is amended by Inserting ". in a.
written performance appraisal," after "eval- ...
uattng" In paragraph (3).
(b) Wm1ss-GaAng INCasASI3.-(1) Section
5335(a) of title 8, United States Code, is
amended by striking out "as determined by
the head of the agency." at the end of sub-
paragraph (B) and Inserting In lieu thereof
determined on the basis of a current per-
formance apprafsaL".
srC usa APPROPRIATIONS LIMITATIOFL
The administration of the provisions of
this title and the amendments made by this
title than be to such extent or in such
amounts as are prodded In appropriations
Acts.
TITLE 111-FEDERAL EMPLOYEES
HEALTH BENEFITS
Wt 1301. ENTRLEMF.NT OF t17FORM PLAN EN- s
ROLLEES TO ENROLL IN OTHER
HEALTH BENEFITS PLANS.
(a) REPEAL The Retired Federal Employ-
ees Health Benefits Act (Public Law 86-724;
74 Stat. $49) Is repealed effective 12 months
after the date of enactment of this Act,
(b) ExrlrLn[n(T To ExaoL..-(1) Any
person enrolled in a health benefits plan ad-
ministered pursuant to the Retired Federal
Employees Health Benefits Act on the date
of enactment of this Act, Is entitled to
enroll In any health benefits plan adminis-
tered pursuant to chapter 89 of title 5.
(2) The director of the Office of Personnel
Management shall-
(A) notify each person affected by the
provisions of paragraph (1) of the entitle-
ment prpvlded pursuant to such paragraph;
and
(B) provide a period of open enrollment
for such person for a period of 6 months be-
ginning on the date of enactment of this
Act.
(C) AurouATic E:rRoLLMExT or CERTAIN
PI tsoNs.-The Director of the Office of
Personnel Management shall enroll any
person who-
(1) is enrolled In a health benefits plan ad-
ministered pursuant to the Retired Federal
Employees Health Benefits Act on the date
of enactment of this Act: and
(2) does not enroll in a health benefits
plan pursuant toi the provisions of subsec-
tion (b).
In the Indemnity benefits plan described
under section 8904(2) of title 5. United
States Code.
(d) DErosrrs III THE EurLo Es HEALTH
Brrrrrrs FIrxo.-Any money remaining In
the Retired Employees Health Benefits
Fund established pursuant to section 8 of
the Retired Federal Employees Health Ben-
tilts Act, after paying all obligations of such
Fund, shall be deposited In the Employees
Health Benefits Fund established pursuant
to section 8909 of title 5, United States
Code.
K- to
(e) ADMzrsTRATios ST THE DniSCroa or
Tug OFFICE or PsasoxwgL MAHAOEMEFiT,-(1)
The Director of the Office of Personnel
Management shall administer the provisions
of this section to provide that-
(A) each person affected by this section
shall receive continuous coverage under a
health benefits plan; .
(B) each person who was entitled to a ben-
efit under a health benefits plan adminis-
tered pursuant to the Retired Federal Em.
ployees Health Benefits Act shall be enti-
tled at a minimum to the same benefit, if
such person Is enrolled In the Indemnity
benefit plan described under section 8904(2)
of title 5. United States Code; and
(C) the administration of all the provi-
sions of this section an completed within 12
months after the date of enactment of this
Act. ? ? .. .. .
(2) The Director of the Office of Person-
nel Management may enter into such agree-
ments with health benefits carriers under
chapter 89 of title S. United States Code, as
are necessary to carry out the provisions of
this section.
SEC, 131L RE-ENROLLMENT ST CERTAIN ANNU-
ITANTS IN HEALTH BENEFITS PLAN.
(a) Is OENERAL.-Any annuitant. as de-
fined under section 8901(3) of title 5. United
States Code, who on the effective date of re-
tirement of such annuitant was eligible tc
continue enrollment in a health benefits
plan under section 8905(b) of such title, and -
who, on the date of enactment of this Act, Is
not enrolled In a health benefits plan ad.
ministered pursuant to chapter 89 of such
title may enroll In any such plan during the
period of open enrollment provided pursu? :
ant to subsection (b)(2).
(2) The provisions of paragraph (1) shall
??
apply to any annuitant whose effective date :
of retirement occurred before the date of
enactment of this Act. .
(b) NoznncAnow AxD Oran ExaoLLmZXT
PERIOD.-The Director of the Office of Per-
sonnel Management shall-
(1) notify all persons eligible to re-enroll
pursuant to the provisions of this section, of
such eligibility, and
(2) provide for a period of open enroll-
ment for such persons for a period of 6
months beginning on the date of enactment
of this Act.
(c) Rs-Exaouajrrr Fu.-(1) Any annui-
tant who re-enrolls In a health benefits plan
pursuant to the provisions of subsection
(a)(1) shall pry a re-enrollment fee as deter-'
mined by the Director of the Office of Per.
sonnel Management pursuant to paragraph
(2). ? ? 4
(2) The Director of the Office of Person-
nel Management shall determine for each
annuitant who re-enrolls In a health bene-
fits plan pursuant to the provisions of sub-
section (aNt)-
(A) the class of individuals who would be
affected by an Increase in premium pay-
ments to provide for coverage to such annui-
tant through re-enrollment: and
(B) a re-enrollment fee to be paid by such
annuitant at the time of re-enrollment to
offset such anticipated Increase determined
under subparagraph (A).
(3) The Director of the Office of Person-
nel Management shall deposit all re-enroll-
ment fees paid pursuant to paragraph (2)(B)
In the Employees Health Benefits Fund es-
tablished under section 8909 of title 5.
United States Code.
(d) ADMINIsTRATnox -The Director of the
Office of Personnel Management may enter
into such agreements with health benefits
carriers under chapter 89 of title 5. United
States Code, as are necessary to,carry out
the provisions of this section. ?
SEC. 1303. UF.F'ERRF.D ANNUITANTS F%*ROI.LMFNT
FOR SELF ONLY COVERAGE FROM
SELF AND FAMILY ('OVERAGE IN CER-
T4w racr.
Section 8905 of title S. United States Code.
Is amended by adding at the end thereof the
following new subsection:
"(g) Notwithstanding any other provision
of this chapter. a person who is entitled to a
deferred annuity under chapter 83 or 84 of
this title or any other retirement system for
Federal Government employees, and is cov-
ered under this chapter by a self and family
enrollment of another employee or annul-
tant, may enroll for self only In a health
benefits plan under this chapter. If such
other employee or annuitant changes such
coverage to self only. The annuitant enti-
tied to a deferred annuity may not enroll
for self andfamlly coverage.".
SEC. 1301. INFORMATION FOR EMPLOYEES AND AN-
Nt'ITAYTS TO HAKE CHOICES.
Section 8907(b) of title 5. United States
Code. Is amended-
(1) In paragraph (2) by striking out "and"
at the end thereof:
(2) in paragraph (3) by striking out the
period at the end thereof and Inserting in
lieu thereof a semicolon and "and"; and
(3) by adding at the end thereof the fol-
lowing new paragraph:
"(4) other information that employees
and annuitants need In order to make an In-
formed enrollment choice including claim
processing time of plans offered under sec-
tion 8903 (1). (2). and (3). and any other in-
formation that the Director of the Office of
Personnel Management determines may
help to better Inform employees ana annu-
itants for the purpose of making such
choice.".
SEC 1300. REQUIREMENT OF CARRIERS TO SUPPLY
CERTAIN INFORMATION.
Section 8910(b) of title 5. United States
Code. Is amended-
(1) In paragraph (1) by striking out the
semicolon and "and" at the end thereof and
inserting In lieu thereof ", including the
'time required to' process claims and Issue
claim payments;";
(2) in paragraph (2) by striking out the
period and Inserting in lieu thereof a semi-
colon and "and"; and
(3) by adding at the end thereof the fol-
lowing new paragraph:
"(3) the Justification for the manner that
the carriers determine medical charge levels
to be usual, customary, or reasonable.".
SEC 13 $. STUDY AND REPORT- BY THE DIRECTOR
OF THE OFF1(It OF PERSONNEL MAN.
AGitIE.NT.
Within 180 days- after the date of enact-
ment of this Act, the Director of the Office
of Personnel Management shall conduct a
study and report to Congress on the feasibil-
ity of providing an enrollment category for
an individual and the spouse of such individ-
ual only (to be designated as "self and
spouse only") for the health benefits plans
administered pursuant to chapter 89 of title
5. United States Code.
SEC 1307. SEQUENTIAL PAYMENTS OF HEALTH
BENEFITS FOR ANNUITANTS.
(a) SEQUENTIAL PAYMe.'rs.-Chapter 89 of
title 5, United States Code, is amended by
inserting after section 8909 the following
new section:
"8 8909a, Sequential payments of health benefits
for tanultants
"If an annuitant is covered by a health
benefits plan offered by a carrier under this
chapter and by any other health benefits
plan provided in an insurance policy or con-
tract, medical or hospital service agreement,
membership or subscription contract, or
similar arrangement, any claim for the pay-
ment of health benefits submitted to that
carrier by or on behalf of that annuitant
shall be paid as follows:
"(1) The carrier shall-
"(A) make any payment required under
the plan offered by that carrier, and
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"(B) If any portion of the claim IS not paid
by that carrier. forward the claim to the ad.
ministrator of the other health benefits
plan together with a statement of the
amount paid by the carrier and a detailed
description of the Item covered by the pay.
ment.
'(2) The administrator of the other
health benefits plan shall-
NA) pay any portion of the unpaid
amount of the Claim required under the
plan; and
"(B) notify the annuitant of the amount
of the claim paid by that plan, a detailed de.
scription of the Items covered by the pay.
ment, and any unpaid amount of the claim
for which the annuitant is required to ar.
range payment or other settlement
(d) TscmnCAL A3(E1 DMLRT.-The table of
sections for chapter 89 of title 5, United
States Code. is amended by inserting after
the Item relating to section 8909 the follow.
tng:
"8909a. Sequential payments of health ben-
efits for annuitants.".
SEC. 130K 9U*yn OR ANYUf y sEA*EFITt
(a) Rmocrtotr or AtrltIIrTT row Smvrvott
Bscrrrrs NOT RETnoACTIVL.-(1) Chapter 83
of title 5. United States Code, is amended-
(A) In subparagraph (C) of paragraph (5)
of section 8399()) by-
(i) striking out the comma and an that fol.
lows after "9 months after the date of the.
remarriage" in the first sentence of clause
(I1) and Inserting in lieu thereof a period;
(11) striking out the second sentence of
clause (ti);
(ill) striking out clause (iii); and
(Iv) redesignating clause (Iv) as clause (ili):?
and
(B) In paragraph (2) of section 8339(k)
by-
(1) striking out "M" in subparagraph (B);
(11) striking out clause (U) of subparagraph
(B); and
(iii) striking out subparagraph (C).
(2) Chapter 84 of title 5, United States
Code. Is amended by-
(A) striking out section 8418: and
(B) striking out the Item relating to sec.
tion 8410 in the table of sections at the be-
ginning of Such chapter.
(b) SruyT A1rn RrroitT my Ttrt COKTTROL.
~e ofene melt of this Act,a the after
Comp-
troller General shall conduct a study and
submit a report to Congress, Including rec.
ommendations, on ways to maintain the
long-term value of survivor annuities admin.
Istered pursuant to subchapter III of chap.
ter 83 of title 5, United States Code.
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