[Federal Register Volume 59, Number 216 (Wednesday, November 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27743]
Federal Register / Vol. 59, No. 216 / Wednesday, November 9, 1994 /
[[Page Unknown]]
[Federal Register: November 9, 1994]
VOL. 59, NO. 216
Wednesday, November 9, 1994
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 576
RIN 3206-AG20
Waiver of Repayment of Voluntary Separation Incentive Payments
agency: Office of Personnel Management.
action: Interim rules with request for comments.
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summary: The Federal Workforce Restructuring Act of 1994, Public Law
103-226, enacted March 30, 1994, generally requires that an employee
who accepts a voluntary separation incentive payment must repay the
entire amount of the payment to the agency that paid the payment if the
employee is reemployed by the Federal Government, in either a temporary
or permanent status, within 5 years following the effective date of
separation on which the payment was based. The payment must also be
repaid if the employee accepts a personal services contract with the
Federal Government within the 5-year period. The Act allows Executive
agencies to request waivers of repayment from the Office of Personnel
Management if the individual the agency wants to reemploy possesses
unique abilities and is the only qualified applicant available for the
position. These regulations implement this waiver authority.
dates: Interim rules effective on November 9, 1994. Written comments
will be considered if received no later than January 9, 1995.
addresses: Send or deliver written comments to Leonard R. Klein,
Associate Director, Career Entry Group, Room 6F08, 1900 E Street, NW,
Washington, DC 20415.
for further information contact: Betty Pickering of the Workforce
Restructuring Office, Career Entry Group, on 202-606-0960 or fax 202-
606-2329.
supplementary information: The Federal Workforce Restructuring Act of
1994, Public Law 103-226, enacted March 30, 1994, authorizes the
payment of voluntary separation incentive payments to employees of
executive branch agencies.
Public Law 103-226 does not authorize the Department of Defense,
the Central Intelligence Agency, or the General Accounting Office to
pay voluntary separation incentive payments to their employees since
they have separate voluntary separation incentive program authorities.
However, Public Law 103-226 covers the Department of Defense and the
Central Intelligence Agency under the provisions dealing with employee
repayment of voluntary separation incentive payments on reemployment
with the Federal Government. The provisions dealing with employee
repayment of voluntary separation incentive payments on reemployment do
not apply to the General Accounting Office.
Public Law 103-226 requires an employee who receives a separation
incentive payment on or after March 30, 1994, from any executive branch
agency, including the Department of Defense and the Central
Intelligence Agency, to repay the entire amount, including all
deductions for taxes, etc., if reemployed in the Federal Government of
the United States within 5 years of the separation date. This
requirement applies to any employment, of any length, in any entity of
the Federal Government of the United States, including the United
States Postal Service, the White House, and non-appropriated fund
activities. Employees, except employees of the Department of Defense,
who receive a voluntary separation incentive payment and accept
employment with the Federal Government under a personal services
contract within 5 years of the date of separation must also repay the
entire amount of the incentive payment.
The statute establishes specific limited conditions under which
repayment of the voluntary separation incentive payment may be waived.
If the individual is to be reemployed by an Executive agency, the
Director of the Office of Personnel Management may waive repayment. For
reemployment in the Legislative branch, the head of the organization or
the appointing official may waive the repayment. For reemployment in
the Judicial branch, the Director of the Administrative Office of the
United States Courts has waiver authority. In all cases, a waiver is
permitted if the individual possesses unique abilities and is the only
qualified applicant available for the position. The Office of Personnel
Management does not have authority to approve waivers of repayment for
individuals who accept personal service contracts, or for individuals
reemployed in the Legislative or Judicial branches of the Federal
Government. These regulations, therefore, apply only to individuals who
are otherwise subject to the reemployment provision of the Federal
Workforce Restructuring Act and have accepted reemployment with the
executive branch agencies.
Reemployment and Waivers of Repayment
The Office of Personnel Management's specific criteria for waiving
repayment of a separation incentive payment are similar to criteria
used for waiving reduction in salary or retirement pay for reemployed
annuitants in that waivers will be approved in response to exceptional
recruiting difficulty. Requests for waivers must be submitted to the
Office of Personnel Management by the agency head or a designee at the
agency or departmental headquarters level. Two special provisions
reflect the intent of Public Law 103-226.
If the employee will be reemployed in the same agency, the request
for a waiver must show that the recruiting need could not have been
forseen before the employee's separation. An agency should not need to
rehire employees to whom it pays separation incentives since Public Law
103-226 gives agencies authority to control separations from critical
or hard-to-fill positions. The Office of Personnel Management will
approve waivers of repayment for reemployment in the same agency only
in rare and unusual circumstances.
The law authorizes waivers of repayment only for reemployment in
exceptionally hard-to-fill positions. Therefore, any waiver approved by
the Office of Personnel Management will apply to a specific position
and the employee appointed to it may not be reassigned during the 5-
year period following separation unless the employee repays the
separation incentive or the Office of Personnel Management approves a
new waiver.
Waiver of Notice of Proposed Rulemaking and Delay in Effective Date
Pursuant to 5 U.S.C. 553(b)(3)(B), I find that good cause exists
for waiving the general notice of proposed rulemaking because the
statutory basis for these regulations (Pub. L. 103-226) was effective
March 30, 1994, and it would be contrary to the public interest to
delay implementation of rules covering reemployment and waivers of
repayment. For the same reasons, and pursuant to 5 U.S.C. 553(d)(3), I
find that good cause exists to waive the delay in effective date and
make these regulations effective in less than 30 days.
E.O. 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
in accordance with E.O. 12866.
Regulatory Flexibility Act
I certify that this regulation will not have a significant economic
impact on a substantial number of small entities because it affects
only certain Federal employees.
List of Subjects in 5 CFR Part 576
Government employees, wages.
U.S. Office of Personnel Management.
James B. King,
Director.
Accordingly, the Office of Personnel Management is adding a new
Part 576 to title 5, Code of Federal Regulations, as follows:
PART 576--WAIVER OF REPAYMENT OF VOLUNTARY SEPARATION INCENTIVE
PAYMENTS
Subpart A--Reemployment and Waiver of Repayment
Sec.
576.101 Repayment requirement.
576.102 Requesting Office of Personnel Management approval for
waiver of repayment.
Authority: 5 U.S.C. 2101 note.
Subpart A--Reemployment and Waiver of Repayment
Sec. 576.101 Repayment requirement.
(a) Who is covered. This subpart covers any executive agency
employee who received a voluntary separation incentive payment on or
after March 30, 1994, including employees of the Department of Defense
and Central Intelligence Agency.
(b) What is covered. This subpart covers reemployment of any
duration, under any authority, in the Federal Government of the United
States, within 5 years of the date of the separation on which payment
of an incentive is based.
(c) What is required. The employee must repay the entire amount of
the voluntary separation incentive payment, including all deductions
for taxes, etc., to the agency that made the payment. Repayment will be
made as provided in 5 U.S.C. 5514, as implemented in part 550, subpart
K, of this chapter, or other appropriate authority.
(d) Exception to the repayment requirement. If the individual
accepts reemployment with an Executive agency, the Office of Personnel
Management may waive repayment if the individual involved possesses
unique abilities and is the only qualified applicant available for the
position. Each waiver must be approved individually, as provided in
Sec. 576.102 of this part. Waivers of repayment are not required for
individuals who work as unpaid volunteers for the Federal Government.
Sec. 576.102 Requesting Office of Personnel Management approval for
waiver of repayment.
(a) Request by agency head. The head of an Executive agency may
request the Office of Personnel Management to approve a waiver of
repayment for an individual when the agency has determined that the
individual involved possesses unique abilities and is the only
qualified applicant available for the position. Authority to submit
such a request may not be redelegated to an official below the agency's
headquarters level (or, in the case of the Department of Defense, to an
official below the headquarters level of the military department or
Defense agency).
(b) Content of requests. Each request must:
(1) Identify the individual for whom the exception is requested,
the appointing authority to be used, and the position to which he or
she will be appointed.
(2) Describe how the position is essential to accomplishing the
agency's mission and how the individual is uniquely qualified for the
position.
(3) Describe the length, breadth, and results of the agency's
recruiting efforts for the position and any other factors demonstrating
that the individual is the only qualified applicant available for the
position.
(4) If the individual is being reemployed in the agency that paid
the separation incentive, demonstrate why the recruiting need could not
be foreseen at the time of separation.
(c) Application of exceptions. A waiver of repayment of a
separation incentive approved by the Office of Personnel Management
under this part applies only while the individual for whom it was
approved continues to serve in the same or a successor position. The
waiver terminates if the individual is assigned to a different position
during the 5-year period in which repayment is required, unless OPM
approves a new waiver.
[FR Doc. 94-27743 Filed 11-8-94; 8:45 am]
BILLING CODE 6325-01-M
