Latest Breaking News

Conference report filed in House (03/16/1994)

Federal Workforce Restructuring Act of 1994 - Amends Federal civil service law to eliminate various restrictions on employee training.

(Sec. 3) Authorizes temporary "buy-out" programs for encouraging selected groups of employees in the executive and judicial branches (except employees of the Department of Defense, Central Intelligence Agency, or the General Accounting Office) to separate from Government service, generally by April 1, 1995, by offering them lump-sum payments in order to avoid or minimize reductions in force (RIFs).

Requires: (1) such payments (the lesser of $25,000 or the amount of the employee's severance pay) to be paid from amounts available for the employee's pay, and, generally, to be fully repaid if the employee rejoins the Federal Government within five years of separation; (2) the elimination of one full-time equivalent position for each one vacated by reason of a lump-sum payment; (3) that there be no increase in service contract procurement by reason of this Act except where it is financially advantageous to the Federal Government; and (4) participating Federal agencies to make specified contributions to the Civil Service Retirement and Disability Fund based on the final rate of basic pay of each employee who retires early and receives the lump-sum payment for FY 1994 and 1995, as well as on the number of agency employees subject to the Civil Service or Federal Employees' Retirement System for FY 1995 through 1998.

Authorizes the Director of the Administrative Office of the United States Courts to establish a program for judicial employees consistent with this Act.

(Sec. 5) Sets annual limitations on the total number of full-time equivalent executive agency positions each year through FY 1999, subject to waiver under certain conditions, such as war or national emergency. Suspends further agency hiring in cases of noncompliance with such limitations.

(Sec. 6) Requires the Office of Personnel Management to submit annual reports on such "buy-out" programs to the Congress.

(Sec. 7) Provides for severance payments for certain employees under contract with the National Aeronautics and Space Administration who worked in Yellow Creek, Mississippi, and whose separation resulted from the termination of the Advanced Solid Rocket Motor Program.

(Sec. 8) Amends Federal civil service law and the Central Intelligence Agency Voluntary Separation Pay Act regarding optional forgiveness of the lump-sum repayment obligations of bought-out employees reemployed in positions for which there is exceptional difficulty in recruiting qualified employees.

(Sec. 9) Revises the Thrift Savings Plan (TSP), with changes providing all separating TSP participants with the same options for withdrawal.

(Sec. 10) Amends the Alaska Railroad Transfer Act of 1982 to: (1) allow application to employees of a State-owned railroad under such Act of the buyout provisions of this Act; and (2) reduce the amount of service time required for such employees who remained covered under the Civil Service Retirement System to carry both Federal health and life insurance benefits into retirement.

Clinton Signs Bill on Buyouts for Federal Workers

By The Associated Press
March 31, 1994


President Clinton signed legislation today intended to help reduce the Federal work force by about 273,000 people over the next five years by offering buyouts of up to $25,000 to employees who leave Government. "After all the rhetoric about cutting the size and cost of Government, our Administration has done the hard work and made the tough choices," Mr. Clinton said in a statement released in Coronado, where he is vacationing.

The legislation aims to help cut the full-time Federal work force to 1.88 million by the end of the fiscal year 1999 in a more compassionate and cheaper way than involuntary layoffs. The buyouts are expected to reduce the work force by nearly 12 percent over five years.

Under the bill, a Federal employee who has completed 12 months of continuous service could take severance pay or a lump sum of $25,000, whichever is less, on leaving the Government.

The employee buyout plan gained wide bipartisan support after it became evident that the reduction goals would not be reached through attrition or involuntary dismissals. Congressional investigators concluded that involuntary dismissals would disproportionately affect minorities and women.

(snip)

AGENCIES GRANTED BUYOUT POWER AS CLINTON SIGNS BILL

LAW RAISES DOWNSIZING MANDATE TO 272,900 GOVERNMENT JOBS

March 30, 1994
By Stephen Barr

President Clinton signed legislation yesterday designed to speed the downsizing of the government by offering buyouts of up to $25,000 to federal employees who resign or retire early. "With the buyout authority granted by this legislation, agencies can target employees in unnecessary high-level jobs and maximize savings," Clinton said in a statement.

The governmentwide buyout authority will allow each federal department and agency to decide when to offer the cash incentives and where they should be offered within the organizations. The authority expires on March 31, 1995.

Office of Personnel Management Director James B. King has set up an office at OPM to provide information to employees and agencies. "Buyouts build on successful private-sector experience, and they make good management sense," King said.

The legislation also mandates that the government reduce the federal work force by 272,900 employees between 1993 and 1999, eliminating about 20,000 more jobs than was recommended by Vice President Gore's National Performance Review. "We welcome this action," said Office of Management and Budget Director Leon E. Panetta. He said the mandatory work force reduction "will bring the size of the bureaucracy below 2 million for the first time since 1966 and to its lowest level since 1950."

(snip)