Voluntary Early Retirement Authority

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 831 and 842

RIN 3206-A125

Voluntary Early Retirement Authority

AGENCY: Office of Personnel Management.

ACTION: Interim rule with request for comments.

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SUMMARY: The Office of Personnel Management (OPM) is issuing revised

interim regulations to extend current voluntary early retirement

program procedures affecting agency requests, OPM approval, and agency

offers of voluntary early retirement as well as several eligibility

requirements for early retirement during a major reorganization, major

reduction in force, or major transfer of function.

DATES: These regulations are effective October 4, 1999. Comments must

be received by December 3, 1999.

ADDRESSES: Send written comments to Mary Lou Lindholm; Associate

Director for Employment; Office of Personnel Management; Room 6500;

1900 E Street, NW; Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT: Charles Gray, 202-606-0960, FAX 202-

606-2329, e-mail [email protected].

SUPPLEMENTARY INFORMATION: This revised interim regulation makes a

conforming revision to 5 CFR 831.114 and 842.213 necessitated by the

enactment of the Treasury and General Government Appropriations Act for

Fiscal Year 2000.

5 U.S.C. 8336(d)(2) and 8414(b)(1)(B) provide that OPM may approve

voluntary early retirement authority for agencies undergoing a major

reorganization, major reduction in force, or major transfer of

function. 5 U.S.C. Sec. 8336(d)(2) authorizes the voluntary early

retirement of employees under the Civil Service Retirement System

(CSRS), while 5 U.S.C. 8414 section (b)(1)(B) authorizes the voluntary

early retirement of employees under the Federal Employees Retirement

System (FERS).

Section 7001 of Public Law 105-174, the Supplemental Appropriations

and Rescissions Act, FY 1998 (112 Stat. 91), enacted May 1, 1998,

provided authority for OPM and agencies to apply special provisions

affecting the manner in which voluntary early retirements may be

administered and approved for the period from May 1, 1998 through

September 30, 1999. The law restored management flexibilities impacted

by a United States Court of Appeals for the Federal Circuit decision in

Torres v. OPM (124 F.3d 1287, September 12, 1997).

Under section 7001 of Public Law 105-174, agencies may request a

determination from the Office of Personnel Management that the agency

or agency component(s) is undergoing a major reorganization, major

reduction in force, or major transfer of function that could lead to

the separation or downgrading of a significant percentage of the

employees in the agency or agency component(s).

Public Law 105-174 allowed OPM to prescribe regulations which

permit the agency, after OPM approval, to determine the scope of

voluntary early retirement offers on the basis of one or more

organizational units; one or more occupational series or levels; one or

more geographic locations; other similar nonpersonal factors; or any

appropriate combination of such factors.

On September 29, 1999, the President enacted the Treasury and

General Government Appropriations Act for Fiscal Year 2000. Section 651

of that Act amended section 7001 of Public Law 105-174, making

permanent the flexibilities restored May 1, 1998.

These interim regulations revise OPM regulations issued June 15,

1998, which give affect to the flexibilities provided in Public Law

105-174 (as amended). In particular, these regulations remove the

September 30, 1999, sunset date which was in the June 15, 1998,

regulations and make the regulations at 5 CFR 831.114 and 842.213

permanent. Additionally, old voluntary early retirement authority

regulations at 5 CFR 831.108 and 842.205 are deleted. Those sections

were suspended from June 15, 1998, through September 30, 1999, in lieu

of the temporary authority in Public Law 105-174, and the interim

regulations at 5 CFR 831.114 and 842.213.

As revised, interim regulations at 5 CFR 831.114 and 842.213

describe agencies' requests to OPM for approval of a voluntary early

retirement authority; the manner in which agencies may offer voluntary

early retirements; the responsibilities of agencies in managing

approved voluntary early retirement authorities; eligibility of

employees for voluntary early retirement; and agencies' required

reports to OPM on use of the authorities.

The new voluntary early retirement law does not affect the existing

basic statutory age and service requirements in 5 U.S.C. 8336(d) or

8414(b)(1). As in the past, in order to be eligible for voluntary early

retirement, an individual must have completed 25 years of service or

have reached age 50 and completed 20 years of service and must meet

other certain basic eligibility requirements.

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 it would

be contrary to the public interest. Also, pursuant to 5 U.S.C.

553(d)(3), I find that good cause exists to make this amendment

effective in less than 30 days. The general notice of proposed

rulemaking and delay in the effective date are being waived because

these regulations allow OPM to immediately implement statutory language

in Sec. 651 of the Treasury and General Government Appropriations Act

for Fiscal Year 2000 governing voluntary early retirements which was

effective May 1, 1998, and to give full effect to benefits extended by

that statute.

Regulatory Flexibility Act

I certify that this regulation will not have a significant economic

impact on a substantial number of small entities because it only

affects Federal employees.

Executive Order 12866, Regulatory Review

This rule has been reviewed by the Office of Management and Budget

in accordance with Executive Order 12866.

[[Page 53582]]

List of Subjects in 5 CFR Parts 831 and 842

Administrative practice and procedure, Air traffic controllers,

Alimony, Claims, Disability benefits, Firefighters, Government

employees, Income taxes, Intergovernmental relations, Law enforcement

officers, Pensions, Reporting and recordkeeping requirements,

Retirement.

Office of Personnel Management.

Janice R. Lachance,

Director.

Accordingly, OPM is amending parts 831 and 842 of title 5, Code of

Federal Regulations, as follows:

PART 831--RETIREMENT

1. The authority citation for part 831 is revised to read as

follows:

Authority: 5 U.S.C. 8347; Sec. 831.102 also issued under 5

U.S.C. 8334; Sec. 831.106 also issued under 5 U.S.C. 552a;

Sec. 831.114 also issued under 5 U.S.C. 8336(d)(2), Pub. L. 105-174,

112 Stat. 91; Sec. 831.201(b)(1) also issued under 5 U.S.C. 8347(g);

Sec. 831.201(b)(6) also issued under 5 U.S.C. 7701(b)(2);

Sec. 831.201(g) also issued under sections 11202(f), 11232(e), and

11246(b) of Pub. L. 105-33, 111 Stat. 251; Sec. 831.204 also issued

under section 102(e) of Pub. L. 104-8, 109 Stat. 102, as amended by

section 153 of Pub. L. 104-134, 110 Stat. 1321; Sec. 831.303 also

issued under 5 U.S.C. 8334(d)(2); Sec. 831.502 also issued under 5

U.S.C. 8337; Sec. 831.502 also issued under section 1(3), E.O.

11228, 3 CFR 1964-1965 Comp.; Sec. 831.663 also issued under 5

U.S.C. 8339(j) and (k)(2); Secs. 831.663 and 831.664 also issued

under section 11004 (c)(2) of Pub. L. 103-66, 107 Stat. 412;

Sec. 831.682 also issued under section 201(d) of Pub. L. 99-251, 100

Stat. 23; subpart S also issued under 5 U.S.C. 8345(k); subpart V

also issued under 5 U.S.C. 8343a and section 6001 of Pub. L. 100-

203, 101 Stat. 1330-275; Sec. 831.2203 also issued under section

7001(a)(4) of Pub. L. 101-508, 104 Stat. 1388-328.

Subpart A--Administration and General Provisions

Sec. 831.108 [Removed]

2. Section 831.108 is removed.

3. In Sec. 831.114, paragraphs(b)(4) and (c)(2)(iii) are revised to

read as follows:

Sec. 831.114 Early retirement-major reorganization, major reduction in

force, or major transfer of function

* * * * *

(b) * * *

(4) OPM may approve an agency's request for voluntary early

retirement authority to cover the entire period of the major reduction

in force, major reorganization, or major transfer of function; or

through the end of each fiscal year, whichever is less.

(c) * * *

(2) * * *

(iii) The time period during which voluntary early retirement will

be offered. At the agency's discretion, the agency may request

voluntary early retirement authority to cover the entire period of the

major reduction in force, major reorganization, or major transfer of

function; or through the end of the fiscal year, whichever is less.

* * * * *

PART 842--FEDERAL EMPLOYEES RETIREMENT SYSTEM--BASIC ANNUITY

4. The authority citation for part 842 is revised to read as

follows:

Authority: 5 U.S.C. 8461(g); Secs. 842.104 and 842.106 also

issued under 5 U.S.C. 8461(n); Sec. 842.105 also issued under 5

U.S.C. 8402(c)(1) and 7701(b)(2); Sec. 842.106 also issued under

section 102(e) of Pub. L. 104-8, 109 Stat. 102, as amended by

section 153 of Pub. L. 104-134, 110 Stat. 1321; Sec. 842.107 also

issued under sections 11202(f), 11232(e), and 11246(b) of Pub. L.

105-33, 111 Stat. 251; Sec. 842.213 also issued under 5 U.S.C.

8414(b)(1)(B), Pub. L. 105-174, 112 Stat. 91; Secs. 842.604 and

842.611 also issued under 5 U.S.C. 8417; Sec. 842.607 also issued

under 5 U.S.C. 8416 and 8417; Sec. 842.614 also issued under 5

U.S.C. 8419; Sec. 842.615 also issued under 5 U.S.C. 8418;

Sec. 842.703 also issued under section 7001(a)(4) of Pub. L. 101-

508; Sec. 842.707 also issued under section 6001 of Pub. L. 100-203;

Sec. 842.708 also issued under section 4005 of Pub. L. 101-239 and

section 7001 of Pub. L. 101-508; subpart H also issued under 5

U.S.C. 1104.

Subpart B--Eligibility

Sec. 842.205 [Removed]

5. Section 842.205 is removed.

8. In Sec. 842.213,paragraphs (b)(4) and (c)(2)(iii) are revised to

read as follows:

Sec. 842.213 Early retirement-major reorganization, major reduction in

force, or major transfer of function

* * * * *

(b) * * *

(4) OPM may approve an agency's request for voluntary early

retirement authority to cover the entire period of the major reduction

in force, major reorganization, or major transfer of function; or

through the end of each fiscal year, whichever is less.

(c) * * *

(2) * * *

(iii) The time period during which voluntary early retirement will

be offered. At the agency's discretion, the agency may request

voluntary early retirement authority to cover the entire period of the

major reduction in force, major reorganization, or major transfer of

function; or through the end of the fiscal year, whichever is less.

* * * * *

[FR Doc. 99-25707 Filed 10-1-99; 8:45 am]

BILLING CODE 6325-01-U