5 USC 5597: Separation pay
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5 USC 5597: Separation pay Text contains those laws in effect on January 23, 2000
From Title 5-GOVERNMENT ORGANIZATION AND EMPLOYEESPART III-EMPLOYEESSubpart D-Pay and AllowancesCHAPTER 55-PAY ADMINISTRATIONSUBCHAPTER IX-SEVERANCE PAY AND BACK PAY

§5597. Separation pay

(a) For the purpose of this section-

(1) the term "Secretary" means the Secretary of Defense;

(2) the term "defense agency" means an agency of the Department of Defense, as further defined under regulations prescribed by the Secretary; and

(3) the term "employee" means an employee of a defense agency, serving under an appointment without time limitation, who has been currently employed for a continuous period of at least 12 months, except that such term does not include-

(A) a reemployed annuitant under subchapter III of chapter 83, chapter 84, or another retirement system for employees of the Government; or

(B) an employee having a disability on the basis of which such employee is or would be eligible for disability retirement under any of the retirement systems referred to in subparagraph (A).


(b) In order to avoid or minimize the need for involuntary separations due to a reduction in force, base closure, reorganization, transfer of function, or other similar action affecting 1 or more defense agencies, the Secretary shall establish a program under which separation pay may be offered to encourage eligible employees to separate from service voluntarily (whether by retirement or resignation).

(c) Under the program, separation pay may be offered by a defense agency only-

(1) with the prior consent, or on the authority, of the Secretary; and

(2) to employees within such occupational groups or geographic locations, or subject to such other similar limitations or conditions, as the Secretary may require.


(d) Such separation pay-

(1) shall be paid in a lump sum;

(2) shall be equal to the lesser of-

(A) an amount equal to the amount the employee would be entitled to receive under section 5595(c) if the employee were entitled to payment under such section; or

(B) $25,000;


(3) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit; and

(4) shall not be taken into account for purposes of determining the amount of any severance pay to which an individual may be entitled under section 5595 based on any other separation.


(e) No amount shall be payable under this section based on any separation occurring after September 30, 2003.

(f) The Secretary shall prescribe such regulations as may be necessary to carry out this section.

(g)(1) An employee who receives separation pay under this section on the basis of a separation occurring on or after the date of the enactment of the Federal Workforce Restructuring Act of 1994 and accepts employment with the Government of the United States within 5 years after the date of the separation on which payment of the separation pay is based shall be required to repay the entire amount of the separation pay to the defense agency that paid the separation pay.

(2) If the employment is with an Executive agency, the Director of the Office of Personnel Management may, at the request of the head of the agency, waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position.

(3) If the employment is with an entity in the legislative branch, the head of the entity or the appointing official may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position.

(4) If the employment is with the judicial branch, the Director of the Administrative Office of the United States Courts may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position.

(5) If the employment is without compensation, the appointing official may waive the repayment.

(h)(1)(A) In addition to any other payment that it is required to make under subchapter III of chapter 83 or chapter 84, the Department of Defense shall remit to the Office of Personnel Management an amount equal to 15 percent of the final basic pay of each covered employee.

(B) If the employee is one with respect to whom a remittance would otherwise be required under section 4(a) of the Federal Workforce Restructuring Act of 1994 based on the separation involved, the remittance under this subsection shall be instead of the remittance otherwise required under such section 4(a).

(2) Amounts remitted under paragraph (1) shall be deposited in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund.

(3) For the purposes of this subsection-

(A) the term "covered employee" means an employee who is subject to subchapter III of chapter 83 or chapter 84 and to whom a voluntary separation incentive has been paid under this section on the basis of a separation occurring on or after October 1, 1997; and

(B) the term "final basic pay" has the meaning given such term in section 4(a)(2) of the Federal Workforce Restructuring Act of 1994.

(Added Pub. L. 102–484, div. D, title XLIV, §4436(a)(1), Oct. 23, 1992, 106 Stat. 2723 ; amended Pub. L. 103–226, §8(a), Mar. 30, 1994, 108 Stat. 118 ; Pub. L. 103–337, div. A, title III, §341(b)(1), Oct. 5, 1994, 108 Stat. 2720 ; Pub. L. 104–201, div. A, title XVI, §1612(a), Sept. 23, 1996, 110 Stat. 2739 ; Pub. L. 105–85, div. A, title XI, §1106(a), (b)(1), Nov. 18, 1997, 111 Stat. 1923 , 1924; Pub. L. 106–65, div. A, title XI, §1104(b), Oct. 5, 1999, 113 Stat. 777 .)

References in Text

The date of the enactment of the Federal Workforce Restructuring Act of 1994, referred to in subsec. (g)(1), is the date of enactment of Pub. L. 103–226, which was approved Mar. 30, 1994.

Section 4(a) of the Federal Workforce Restructuring Act of 1994, referred to in subsec. (h)(1)(B), (3)(B), is section 4(a) of Pub. L. 103–226, as amended, which is set out as a note under section 8331 of this title.

Amendments

1999-Subsec. (e). Pub. L. 106–65 substituted "September 30, 2003" for "September 30, 2001".

1997-Subsec. (e). Pub. L. 105–85, §1106(b)(1), substituted "September 30, 2001" for "September 30, 1999".

Subsec. (h). Pub. L. 105–85, §1106(a), added subsec. (h).

1996-Subsec. (g)(5). Pub. L. 104–201 added par. (5).

1994-Subsec. (e). Pub. L. 103–337 substituted "September 30, 1999" for "September 30, 1997".

Subsec. (g). Pub. L. 103–226 added subsec. (g).

Effective Date of 1996 Amendment

Section 1612(b) of Pub. L. 104–201 provided that: "The amendment made by subsection (a) [amending this section] shall apply with respect to employment accepted on or after the date of the enactment of this Act [Sept. 23, 1996]."

Voluntary Separation Incentives

Pub. L. 106–117, title XI, Nov. 30, 1999, 113 Stat. 1595 , known as the "Department of Veterans Affairs Employment Reduction Assistance Act of 1999", authorized the Secretary of Veterans Affairs to submit a plan to the Director of the Office of Management and Budget for the payment of voluntary separation incentive payments, and upon approval thereof to pay voluntary separation incentive payments to eligible employees of the Department of Veterans Affairs only to the extent necessary to reduce or restructure the positions and functions identified by the plan, provided that the employees separate from service with the Department through Dec. 31, 2000, whether by retirement or resignation, defined "employee" for separation incentive purposes, and provided for additional contributions to the Retirement Fund, effect of subsequent employment with the Federal Government, and effect on agency employment levels.

Pub. L. 106–113, div. B, §1000(a)(2) [title V, §579], Nov. 29, 1999, 113 Stat. 1535 , 1501A-113, authorized voluntary separation incentives for employees of the United States Agency for International Development who voluntarily separated (whether by retirement or resignation) on or before Dec. 31, 2000, and defined pertinent terms, provided for the development of an agency strategic plan and the approval of such plan by the Director of the Office of Management and Budget, required additional agency contributions to the Retirement Fund, specified the effect of subsequent employment with the Federal Government, mandated a reduction of agency employment levels, and authorized the Office of Personnel Management to prescribe regulations to implement these provisions.

Pub. L. 106–58, title I, §116, Sept. 29, 1999, 113 Stat. 439 , authorized the Treasury Inspector General for Tax Administration, during the period from Oct. 1, 1999 through Jan. 1, 2003, to offer voluntary separation incentives in order to provide the necessary flexibility to carry out the plan to establish and reorganize the Office of the Treasury Inspector General for Tax Administration, defined "employee" for separation incentive purposes, and provided for authority to provide separation incentive payments, additional contributions to the Retirement Fund, effect of subsequent employment with the Federal Government, and effect on agency employment levels.

Pub. L. 106–58, title I, §119, Sept. 29, 1999, 113 Stat. 441 , authorized the Commissioner of the Financial Management Services of the Department of the Treasury, during the period from Oct. 1, 1999 through Jan. 31, 2000, to offer voluntary separation incentives in order to provide the necessary flexibility to carry out the closure of the Chicago Financial Center (CFC) in a manner which the Commissioner deemed most efficient, equitable to employees, and cost effective to the Government, defined "employee" for separation incentive purposes, and provided for an agency plan, authority to provide separation incentive payments, eligibility requirements, effect on subsequent employment with the Federal Government, contributions to the Retirement Fund, and reduction of agency employment levels.

Pub. L. 106–58, title IV, §411, Sept. 29, 1999, 113 Stat. 456 , authorized the Administrator of General Services, during the period Oct. 1, 1999 through Apr. 30, 2001, to offer a voluntary separation incentive in order to provide the necessary flexibility to carry out the closing of the Federal Supply Service distribution centers, forward supply points, and associated programs in a manner which the Administrator deemed most efficient, equitable to all employees, and cost effective for the Government, defined "employee" for separation incentive purposes, and provided for agency strategic plan, authority to provide incentive payments, eligibility requirements, effect of subsequent employment with the Federal Government, contributions to the Retirement Fund, and reduction of agency employment levels.

Pub. L. 105–206, title I, §1202, July 22, 1998, 112 Stat. 719 , provided that:

"(a) Definition.-In this section, the term 'employee' means an employee (as defined by section 2105 of title 5, United States Code) who is employed by the Internal Revenue Service serving under an appointment without time limitation, and has been currently employed for a continuous period of at least 3 years, but does not include-

"(1) a reemployed annuitant under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system;

"(2) 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 paragraph (1);

"(3) an employee who is in receipt of a specific notice of involuntary separation for misconduct or unacceptable performance;

"(4) 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 [Pub. L. 103–226] (5 U.S.C. 5597 note), would qualify for a voluntary separation incentive payment under section 3 of such Act;

"(5) an employee who has previously received any voluntary separation incentive payment by the Federal Government under this section or any other authority and has not repaid such payment;

"(6) an employee covered by statutory reemployment rights who is on transfer to another organization; or

"(7) any employee who, during the 24-month period preceding the date of separation, has 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 title 5, United States Code.

"(b) Authority To Provide Voluntary Separation Incentive Payments.-

"(1) In general.-The Commissioner of Internal Revenue may pay voluntary separation incentive payments under this section to any employee to the extent necessary to carry out the plan to reorganize the Internal Revenue Service under section 1001 [26 U.S.C. 7801 note].

"(2) Amount and treatment of payments.-A voluntary separation incentive payment-

"(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; or

"(ii) an amount determined by an agency head not to exceed $25,000;

"(D) may not be made except in the case of any qualifying employee who voluntarily separates (whether by retirement or resignation) before January 1, 2003;

"(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.

"(c) Additional Internal Revenue Service 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 of title 5, United States Code, the Internal Revenue Service shall remit to the Office of Personnel Management for deposit in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund an amount equal to 15 percent of the final basic pay of each employee 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 section.

"(2) Definition.-In 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.

"(d) Effect of Subsequent Employment With the Government.-An individual who has received a voluntary separation incentive payment under this section and accepts any employment for compensation with the Government of the United States, or who works for any agency of the United States Government 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 Internal Revenue Service.

"(e) Effect on Internal Revenue Service Employment Levels.-

"(1) Intended effect.-Voluntary separations under this section are not intended to necessarily reduce the total number of full-time equivalent positions in the Internal Revenue Service.

"(2) Use of voluntary separations.-The Internal Revenue Service may redeploy or use the full-time equivalent positions vacated by voluntary separations under this section to make other positions available to more critical locations or more critical occupations."

Pub. L. 104–208, div. A, title I, §101(e) [title V, §520], Sept. 30, 1996, 110 Stat. 3009–233 , 3009-272, as amended by Pub. L. 105–78, title V, §517, Nov. 13, 1997, 111 Stat. 1519 ; Pub. L. 106–113, div. B, §1000(a)(4) [title V, §515], Nov. 29, 1999, 113 Stat. 1535 , 1501A-276, provided that:

"(a) Definitions.-For the purposes of this section-

"(1) the term 'agency' means the Railroad Retirement Board and the Office of Inspector General of the Railroad Retirement Board;

"(2) the term 'employee' means an employee (as defined by section 2105 of title 5, United States Code) who is employed by an agency, is serving under an appointment without time limitation, and has been currently employed for a continuous period of at least 3 years, but does not include-

"(A) a reemployed annuitant under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the agency;

"(B) an employee having a disability on the basis of which such employee is or would be eligible for disability retirement under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the agency;

"(C) an employee who is in receipt of a specific notice of involuntary separation for misconduct or unacceptable performance;

"(D) 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 [Pub. L. 103–226] (5 U.S.C. 5597 note), would qualify for a voluntary separation incentive payment under section 3 of such Act;

"(E) an employee who has previously received any voluntary separation incentive payment by the Federal Government under this section or any other authority and has not repaid such payment;

"(F) an employee covered by statutory reemployment rights who is on transfer to another organization; or

"(G) any employee who, during the twenty-four-month period preceding the date of separation, has received a recruitment or relocation bonus under section 5753 of title 5, United States Code, or who, within the twelve-month period preceding the date of separation, received a retention allowance under section 5754 of title 5, United States Code.

"(b) Agency Strategic Plan.-

"(1) In general.-The three-member Railroad Retirement Board, prior to obligating any resources for voluntary separation incentive payments, 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;

"(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 section may be paid by an agency to any employee 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-

"(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; 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 qualifying employee who voluntarily separates (whether by retirement or resignation) before March 31, 2000;

"(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 of title 5, United States Code, an agency shall remit to the Office of Personnel Management for deposit in the Treasury of the United States to the 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 section.

"[(]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.

"[(]e) Effect of Subsequent Employment With the Government.-An individual who has received a voluntary separation incentive payment under this section and accepts any employment for compensation with the Government of the United States, or who works for any agency of the United States Government 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 section. 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.

"(g) Effective Date.-This section shall take effect October 1, 1996."

Pub. L. 106–65, div. C, title XXXI, §3161, Oct. 5, 1999, 113 Stat. 942 , provided that:

"(a) Extension.-Notwithstanding subsection (c)(2)(D) of section 663 of the Treasury, Postal Service, and General Government Appropriations Act, 1997 (as contained in section 101(f) of division A of Public Law 104–208; 110 Stat. 3009–383; 5 U.S.C. 5597 note), the Department of Energy may pay voluntary separation incentive payments under such section 663 to qualifying employees who voluntarily separate (whether by retirement or resignation) before January 1, 2003.

"(b) Report.-(1) Not later than March 15, 2000, the Secretary of Energy shall submit to the Director of the Office of Personnel Management and the specified congressional committees a report describing how the Department has, by reason of the provisions of subsection (a), paid voluntary separation payments under such section 663.

"(2) The report under paragraph (1) shall-

"(A) include the occupations and grade levels of each employee with respect to whom the Department has, by reason of the provisions of subsection (a), paid voluntary separation payments under such section 663; and

"(B) describe how the paying of such payments by reason of the provisions of subsection (a) relates to the restructuring plans of the Department.

"(3) For purposes of this subsection, the term 'specified congressional committees' means the following:

"(A) The Committee on Armed Services, the Committee on Government Reform, and the Committee on Commerce of the House of Representatives.

"(B) The Committee on Armed Services and the Committee on Governmental Affairs of the Senate."

Pub. L. 105–261, div. C, title XXXI, §3156, Oct. 17, 1998, 112 Stat. 2257 , provided that:

"(a) Extension.-Notwithstanding subsection (c)(2)(D) of section 663 of the Treasury, Postal Service, and General Government Appropriations Act, 1997 (Public Law 104–208; 110 Stat. 3009–383; 5 U.S.C. 5597 note), the Department of Energy may pay voluntary separation incentive payments to qualifying employees who voluntarily separate (whether by retirement or resignation) before January 1, 2001.

"(b) Exercise of Authority.-The Department shall pay voluntary separation incentive payments under subsection (a) in accordance with the provisions of such section 663."

Pub. L. 104–208, div. A, title I, §101(f) [title VI, §663], Sept. 30, 1996, 110 Stat. 3009–314 , 3009-383, provided that:

"(a) Definitions.-For the purposes of this section-

"(1) the term 'agency' means any Executive agency (as defined in section 105 of title 5, United States Code), other than an Executive agency (except an agency receiving such authority in the Department of Transportation Appropriations Act, 1997 [probably means Pub. L. 104–205, 110 Stat. 2951 , see Tables for classification]) that is authorized by any other provision of this Act or any other Act to provide voluntary separation incentive payments during all, or any part of, fiscal year 1997; and

"(2) the term 'employee' means an employee (as defined by section 2105 of title 5, United States Code) who is employed by an agency, is serving under an appointment without time limitation, and has been currently employed for a continuous period of at least 3 years, but does not include-

"(A) a reemployed annuitant under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the agency;

"(B) an employee having a disability on the basis of which such employee is or would be eligible for disability retirement under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the agency;

"(C) an employee who is in receipt of a specific notice of involuntary separation for misconduct or unacceptable performance;

"(D) 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 [Pub. L. 103–226] (5 U.S.C. 5597 note), would qualify for a voluntary separation incentive payment under section 3 of such Act;

"(E) an employee who has previously received any voluntary separation incentive payment by the Federal Government under this section or any other authority and has not repaid such payment;

"(F) an employee covered by statutory reemployment rights who is on transfer to another organization; or

"(G) any employee who, during the twenty four month period preceding the date of separation, has received a recruitment or relocation bonus under section 5753 of title 5, United States Code, or who, within the twelve month period preceding the date of separation, received a retention allowance under section 5754 of title 5, United States Code.

"(b) Agency Strategic Plan.-

"(1) In general.-The head of each agency, prior to obligating any resources for voluntary separation incentive payments, 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 [now Committee on Government Reform] 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;

"(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 section may be paid by an agency to any employee 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-

"(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; 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 qualifying employee who voluntarily separates (whether by retirement or resignation) before December 31, 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 of title 5, United States Code, an agency shall remit to the Office of Personnel Management for deposit in the Treasury of the United States to the 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 section.

"(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.

"(e) Effect of Subsequent Employment With the Government.-An individual who has received a voluntary separation incentive payment under this section and accepts any employment for compensation with the Government of the United States, or who works for any agency of the United States Government 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 section. 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.

"(g) Effective Date.-This section shall take effect October 1, 1996."

Pub. L. 104–205, title III, §349, Sept. 30, 1996, 110 Stat. 2976 , provided that:

"(a) Definitions.-For the purposes of this section-

"(1) the term 'agency' means the following agencies of the Department of Transportation:

"(A) the United States Coast Guard;

"(B) the Research and Special Programs Administration;

"(C) the Saint Lawrence Seaway Development Corporation;

"(D) the Office of the Secretary; and

"(E) the Federal Railroad Administration;

"(2) the term 'employee' means an employee (as defined by section 2105 of title 5, United States Code) who is employed by the agency serving under an appointment without time limitation, and has been currently employed for a continuous period of at least 3 years, but does not include-

"(A) a reemployed annuitant under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the agency;

"(B) 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);

"(C) an employee who is in receipt of a specific notice of involuntary separation for misconduct or unacceptable performance;

"(D) 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 [Pub. L. 103–226] (5 U.S.C. 5597 note), would qualify for a voluntary separation incentive payment under section 3 of such Act;

"(E) an employee who has previously received any voluntary separation incentive payment by the Federal Government under this section or any other authority and has not repaid such payment;

"(F) an employee covered by statutory reemployment rights who is on transfer to another organization;

"(G) any employee who, during the twenty-four month period preceding the date of separation, has received a recruitment or relocation bonus under section 5753 of title 5, United States Code, or who, within the twelve month period preceding the date of separation, received a retention allowance under section 5754 of title 5, United States Code; or

"(H) any employee who, upon separation and application, would be eligible for an immediate annuity under subchapter III of chapter 83 or chapter 84 of title 5, United States Code (or another retirement system for employees of the agency), other than an annuity subject to a reduction under section 8339(h) or 8415(f) of such title (or corresponding provisions of another retirement system for employees of the agency).

"(b) Agency Strategic Plan.-

"(1) In general.-The head of an agency, prior to obligating any resources for voluntary separation incentive payments, 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;

"(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 section may be paid by an agency to any employee 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-

"(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; or

"(ii) an amount determined by an agency head not to exceed $25,000 in fiscal year 1997;

"(D) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit; and

"(E) 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.

"(3) Limitation.-No amount shall be payable under this section based on any separation occurring before the date of the enactment of this Act [Sept. 30, 1996], or after September 30, 1997.

"(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 of title 5, United States Code, an agency shall remit to the Office of Personnel Management for deposit to the Treasury of the United States to the 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 section.

"(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.

"(e) Effect of Subsequent Employment With the Government.-An individual who has received a voluntary separation incentive payment under this section and accepts any employment for compensation with the Government of the United States, or who works for any agency of the United States Government 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) Reductions of Agency Employment Levels.-

"(1) In general.-The total number of funded employee positions in an agency shall be reduced by one position for each vacancy credited by the separation of any employee who has received, or is due to receive, a voluntary separation incentive payment under this section. 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 each agency and take any action necessary to ensure that the requirements of this subsection are met.

"(g) Effective Date.-This section shall take effect October 1, 1996."

Pub. L. 104–204, title IV, §432, Sept. 26, 1996, 110 Stat. 2931 , provided that:

"(a) Short Title.-This section may be cited as the 'National Aeronautics and Space Administration Federal Employment Reduction Assistance Act of 1996.'

"(b) Definitions.-For the purpose of this section-

"(1) the term 'Administrator' means the Administrator of the National Aeronautics and Space Administration; and

"(2) the term 'employee' means an employee of the National Aeronautics and Space Administration serving under an appointment without time limitation, who has been currently employed with NASA for a continuous period of at least twelve months, except that such term does not include-

"(A) a reemployed annuitant under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Government;

"(B) an employee who is in receipt of a specific notice of involuntary separation for misconduct or unacceptable performance;

"(C) 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 (Public Law 103–226; 108 Stat. 111) [set out below], would qualify for a voluntary separation incentive payment under section 3 of such Act; or

"(D) an employee who has previously received any voluntary separation incentive payment by the Federal Government under this Act or any other authority and has not repaid such payment.

"(c) Incentive Payment Program.-In order to avoid or minimize the need for involuntary separations due to a reduction in force, installation closure, reorganization, transfer of function, or other similar action affecting the National Aeronautics and Space Administration, the Administrator shall establish a program under which separation pay, subject to the availability of appropriated funds, may be offered to encourage eligible employees to separate from service voluntarily (whether by retirement or resignation).

"(d) Incentive Payments.-In order to receive a voluntary separation incentive payment, an employee must separate voluntarily (whether by retirement or resignation) during the period of time for which the payment of incentives has been authorized for the employee under the agency plan. Such separation payments-

"(1) shall be paid in a lump sum after the employee's separation, and

"(2) shall be equal to the lesser of-

"(A) 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

"(B) an amount that shall not exceed $25,000;

"(3) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit;

"(4) shall not be taken into account for purposes of determining the amount of any severance pay to which an individual may be entitled under section 5595 of title 5, United States Code, based on any other separation;

"(5) shall be considered payment for a voluntary separation; and

"(6) shall be paid from the appropriations or funds available for payment of the basic pay of the employee.

"(e) Effect of Subsequent Employment With the Government.-

"(1) An individual who has received a voluntary separation incentive payment under this section and accepts any employment with the Government of the United States within five years after the date of the separation on which the payment is based shall be required to repay, prior to the individual's first day of employment, the entire amount of the incentive payment to NASA.

"(2) If the employment under paragraph (1) above is with an executive agency (as defined by section 105 of title 5, United States Code), the United States Postal Service, or the Postal Rate Commission, the Director of the Office of Personnel Management may, at the request of the head of the agency, waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position.

"(3) If the employment under paragraph (1) above is with an entity in the legislative branch, the head of the entity or the appointing official may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position.

"(4) If the employment under paragraph (1) above is with the judicial branch, the Director of the Administrative Office of the United States Courts may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position.

"(5) For the purpose of this section, the term 'employment'-

"(A) includes employment of any length or under any type of appointment, but does not include employment that is without compensation; and

"(B) includes employment under a personal services contract.

"(f) Effect of Subsequent Disability Retirement.-An employee who has received an incentive payment is ineligible to receive an annuity for reasons of disability under applicable regulations, unless the incentive payment is repaid.

"(g) Additional Agency Contributions to the Retirement Fund.-

"(1) 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, NASA shall remit to the Office of Personnel Management for deposit in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund an amount equal to 15 percent of the final basic pay of each employee who is covered under subchapter III of chapter 83 or chapter 84 of title 5 to whom a voluntary separation incentive has been paid under this Act [section].

"(2) For the purpose of this section, 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.

"(h) Reduction of Agency Employment Levels.-

"(1) Total full-time-equivalent employment in NASA shall be reduced by one for each separation of an employee who receives a voluntary separation incentive payment under this Act [section]. The reduction will be calculated by comparing the agency's full-time-equivalent employment for the fiscal year in which the voluntary separation payments are made with the authorized full-time-equivalent employment for the prior fiscal year.

"(2) The Office of Management and Budget shall monitor and take appropriate action necessary to ensure that the requirements of this section are met.

"(3) The President shall take appropriate action to ensure that functions involving more than 10 full time equivalent employees are not converted to contracts by reason of the enactment of this section, except in cases in which a cost comparison demonstrates such contracts would be to the advantage of the Government.

"(4) The provisions of subsections (1) and (3) of this section may be waived upon a determination by the President that-

"(A) the existence of a state of war or other national emergency so requires; or

"(B) the existence of an extraordinary emergency which threatens life, health, safety, property, or the environment so requires.

"(i) Reports.-No later than March 31 of each fiscal year, NASA shall submit to the Office of Personnel Management, who will subsequently report to the Committee on Governmental Affairs of the Senate and the Committee on Government Reform and Oversight [now Committee on Government Reform] of the House of Representatives a report which, with respect to the preceding fiscal year, shall include-

"(1) the number of employees who received voluntary separation incentives;

"(2) the average amount of such incentives; and

"(3) the average grade or pay level of the employees who received incentives.

"(j) Effective Date.-

"(1) The provisions of this section shall take effect on the date of enactment of this Act [Sept. 26, 1996].

"(2) No voluntary separation incentive under this section may be paid based on the separation of an employee after September 30, 2000."

Pub. L. 104–190, §1, Aug. 20, 1996, 110 Stat. 1932 , provided that:

"(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 or 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 [Pub. L. 103–226] (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) Agency Strategic Plan.-

"(1) 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;

"(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 the 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.

"(e) Effect of 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."

Pub. L. 104–180, title VII, §735, Aug. 6, 1996, 110 Stat. 1604 , provided that:

"(a) Definitions.-For the purposes of this section-

"(1) the term 'agency' means the Department of Agriculture;

"(2) the term 'employee' means an employee (as defined by section 2105 of title 5, United States Code) who is employed by the agency (or an individual employed by a county committee established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5))), is serving under an appointment without time limitation, and has been currently employed for a continuous period of at least 3 years, but does not include-

"(A) a reemployed annuitant under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the agency;

"(B) 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);

"(C) an employee who is in receipt of a specific notice of involuntary separation for misconduct or unacceptable performance;

"(D) 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 [Pub. L. 103–226] (5 U.S.C. 5597 note), would qualify for a voluntary separation incentive payment under section 3 of such Act;

"(E) an employee who has previously received any voluntary separation incentive payment by the Federal Government under this section or any other authority and has not repaid such payment;

"(F) an employee covered by statutory reemployment rights who is on transfer to another organization; or

"(G) any employee who, during the twenty-four month period preceding the date of separation, has received a recruitment or relocation bonus under section 5753 of title 5, United States Code, or who, within the twelve month period preceding the date of separation, received a retention allowance under section 5754 of title 5, United States Code.

"(b) Agency Strategic Plan.-

"(1) In general.-The head of the agency, prior to obligating any resources for voluntary separation incentive payments, 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 [now Committee on Government Reform] 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;

"(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 section may be paid by an agency to any employee 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-

"(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; or

"(ii) an amount determined by the agency head not to exceed $25,000 in fiscal year 1997, $20,000 in fiscal year 1998, $15,000 in fiscal year 1999, or $10,000 in fiscal year 2000;

"(D) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit; and

"(E) 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.

"(3) Limitation.-No amount shall be payable under this section based on any separation occurring before the date of the enactment of this Act [Aug. 6, 1996], or after September 30, 2000.

"(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 the 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 section.

"(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.

"(e) Effect of Subsequent Employment with the Government.-An individual who has received a voluntary separation incentive payment under this section and accepts any employment for compensation with the Government of the United States, or who works for any agency of the United States Government 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 section. 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.

"(g) Effective Date.-This section shall take effect October 1, 1996."

Pub. L. 104–134, title I, §101(c) [title III, §339], Apr. 26, 1996, 110 Stat. 1321–156 , 1321-210; renumbered title I, Pub. L. 104–140, §1(a), May 2, 1996, 110 Stat. 1327 , provided that:

"(a) Notwithstanding any other provision of law, in order to avoid or minimize the need for involuntary separations due to a reduction in force, reorganizations, transfer of function, or other similar action, the Secretary of the Smithsonian Institution may pay, or authorize the payment of, voluntary separation incentive payments to Smithsonian Institution employees who separate from Federal service voluntarily through October 1, 1996 (whether by retirement or resignation).

"(b) A voluntary separation incentive payment-

"(1) shall be paid in a lump sum after the employee's separation in an amount to be determined by the Secretary, but shall not exceed $25,000; and

"(2) shall not be a basis for payment, and shall not be included in the computation, of any other type of benefit.

"(c)(1) An employee who has received a voluntary separation incentive payment under this section and accepts employment with any agency or instrumentality of the United States within 5 years after the date of the separation on which the payment is based shall be required to repay the entire amount of the incentive payment to the Smithsonian Institution.

"(2) The repayment required by paragraph (1) may be waived only by the Secretary.

"(d) In addition to any other payments which it is required to make under subchapter III of chapter 83 of title 5, United States Code, the Smithsonian shall remit to the Office of Personnel Management for deposit in the Treasury of the United States to the 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 Smithsonian to whom a voluntary separation incentive payment has been paid."

Pub. L. 104–19, title I, §702, July 27, 1995, 109 Stat. 221 , provided that: "The General Accounting Office may for such employees as it deems appropriate authorize a payment to employees who voluntarily separate before October 1, 1995, whether by retirement or resignation, which payment shall be paid in accordance with the provisions of section 5597(d) of title 5, United States Code."

Section 3 of Pub. L. 103–226 provided that:

"(a) Definitions.-For the purpose of this section-

"(1) the term 'agency' means an Executive agency (as defined by section 105 of title 5, United States Code), but does not include the Department of Defense, the Central Intelligence Agency, or the General Accounting Office; and

"(2) the term 'employee' means an employee (as defined by section 2105 of title 5, United States Code) who is employed by an agency, is serving under an appointment without time limitation, and has been currently employed for a continuous period of at least 12 months; such term includes an individual employed by a county committee established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)), but does not include-

"(A) a reemployed annuitant under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Government; or

"(B) 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).

"(b) Authority.-

"(1) In general.-In order to avoid or minimize the need for involuntary separations due to a reduction in force, reorganization, transfer of function, or other similar action, and subject to paragraph (2), the head of an agency may pay, or authorize the payment of, voluntary separation incentive payments to agency employees-

"(A) in any component of the agency;

"(B) in any occupation;

"(C) in any geographic location; or

"(D) on the basis of any combination of factors under subparagraphs (A) through (C).

"(2) Condition.-

"(A) In general.-In order to receive an incentive payment, an employee must separate from service with the agency (whether by retirement or resignation) before April 1, 1995.

"(B) Exception.-An employee who does not separate from service before the date specified in subparagraph (A) shall be ineligible for an incentive payment under this section unless-

"(i) the agency head determines that, in order to ensure the performance of the agency's mission, it is necessary to delay such employee's separation; and

"(ii) the employee separates after completing any additional period of service required (but not later than March 31, 1997).

"(c) Amount and Treatment of Payments.-A voluntary separation incentive payment-

"(1) shall be paid in a lump sum after the employee's separation;

"(2) shall be equal to the lesser of-

"(A) 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

"(B) $25,000;

"(3) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit;

"(4) shall not be taken into account in determining the amount of any severance pay to which an employee may be entitled under section 5595 of title 5, United States Code, based on any other separation; and

"(5) shall be paid from appropriations or funds available for the payment of the basic pay of the employee.

"(d) Effect of Subsequent Employment With the Government.-

"(1) In general.-An employee who has received a voluntary separation incentive payment under this section and accepts employment with the Government of the United States within 5 years after the date of the separation on which the payment is based shall be required to repay the entire amount of the incentive payment to the agency that paid the incentive payment.

"(2) Waiver authority.-

"(A) Executive agency.-If the employment is with an Executive agency (as defined by section 105 of title 5, United States Code), the Director of the Office of Personnel Management may, at the request of the head of the agency, waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position.

"(B) Legislative branch.-If the employment is with an entity in the legislative branch, the head of the entity or the appointing official may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position.

"(C) Judicial branch.-If the employment is with the judicial branch, the Director of the Administrative Office of the United States Courts may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position.

"(3) Definition.-For purposes of paragraph (1) (but not paragraph (2)), the term 'employment' includes employment under a personal services contract with the United States.

"(e) Regulations.-The Director of the Office of Personnel Management may prescribe any regulations necessary for the administration of subsections (a) through (d).

"(f) Employees of the Judicial Branch.-The Director of the Administrative Office of the United States Courts may, by regulation, establish a program consistent with the program established by subsections (a) through (d) for individuals serving in the judicial branch."

Monitoring and Report Relating to Voluntary Separation Incentive Payments

Section 6 of Pub. L. 103–226 provided that: "No later than December 31st of each fiscal year, the Office of Personnel Management shall submit to the Committee on Governmental Affairs of the Senate and the Committee on Post Office and Civil Service of the House of Representatives a report which, with respect to the preceding fiscal year, shall include-

"(1) the number of employees who received a voluntary separation incentive payment under section 3 [set out above] during such preceding fiscal year;

"(2) the agency from which each such employee separated;

"(3) at the time of separation from service by each such employee-

"(A) such employee's grade or pay level; and

"(B) the geographic location of such employee's official duty station, by region, State, and city (or foreign nation, if applicable); and

"(4)(A) the number of waivers made (in the repayment upon subsequent employment) by each agency or other authority under section 3 [set out above] or the amendments made by section 8 [amending this section and provisions set out as a note under section 403–4 of Title 50, War and National Defense]; and

"(B) the title and the grade or pay level of the position filled by the employee to whom such waiver applied."

[Committee on Post Office and Civil Service of House of Representatives abolished by House Resolution No. 6, One Hundred Fourth Congress, Jan. 4, 1995. References to Committee on Post Office and Civil Service treated as referring to Committee on Government Reform and Oversight, see section 1(b) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Congress. Committee on Government Reform and Oversight of House of Representatives changed to Committee on Government Reform of House of Representatives by House Resolution No. 5, One Hundred Sixth Congress, Jan. 6, 1999.]

Source of Payments

Section 4436(b)(1) of Pub. L. 102–484 provided that: "For fiscal years after fiscal year 1993, separation pay shall be paid by an agency out of any funds or appropriations available for salaries and expenses of such agency."

Report

Section 4436(c) of Pub. L. 102–484 provided that: "At the end of each of fiscal years 1993 through 1998, the Secretary of Defense shall submit to the President, the Congress, and the Director of the Office of Personnel Management a report on the effectiveness and costs of carrying out the amendments made by this section [enacting this section]."

Section Referred to in Other Sections

This section is referred to in title 10 section 1598.