[Federal Register: February 4, 2003 (Volume 68, Number 23)]
[Rules and Regulations]
[Page 5529-5530]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04fe03-1]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
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[[Page 5529]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 576
RIN 3206-AJ76
Voluntary Separation Incentive Payments
AGENCY: Office of Personnel Management.
ACTION: Interim rulemaking.
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SUMMARY: The Office of Personnel Management (OPM) is issuing interim
regulations on voluntary separation incentive payments (i.e.,
``buyouts''). These regulations implement the voluntary separation
incentive payment provisions of the Homeland Security Act of 2002,
Public Law 107-296, which apply to most executive branch agencies.
These interim regulations explain how an agency requests authority
from OPM to offer voluntary separation incentive payments. They also
explain how in exceptional circumstances an agency that is hiring a
former employee who previously received a voluntary separation
incentive payment may request that OPM waive the general requirement
that the individual repay the incentive.
DATES: These regulations are effective February 4, 2003. OPM will
consider written comments if received no later than April 7, 2003.
ADDRESSES: Send written comments to Ellen E. Tunstall, Assistant
Director for Employment Policy, Office of Personnel Management, Room
6500, 1900 E Street, NW., Washington, DC 20415.
FOR FURTHER INFORMATION CONTACT: Charles W. Gray at 202-606-0960, FAX
at 202-606-2329, TDDY at 202-418-3134, or e-mail at cwgray@opm.gov.
SUPPLEMENTARY INFORMATION: Section 1313(a) of the ``Homeland Security
Act of 2002'' (Public Law 107-296, 116 Stat. 2135) amends chapter 35 of
title 5, United States Code, to allow executive branch agencies, at
their option, to offer voluntary separation incentive payments to
surplus or displaced employees who separate by voluntary retirement or
by resignation. To offer buyouts, an agency must submit a plan for OPM
approval. The plan must describe how the agency will use voluntary
separation incentive payments as a tool to facilitate its restructuring
goals. OPM will review each agency's plan and, in consultation with the
Director of the Office of Management and Budget, may make any
appropriate modifications to the agency's plan for voluntary separation
incentive payments. The agency must have OPM approval before using this
flexibility.
New subpart A of 5 CFR part 576 implements these new voluntary
separation incentive payment provisions, which are codified in sections
3521 through 3523 of title 5, United States Code.
A former employee who accepts any employment with the Government of
the United States for compensation within 5 years after the date of
separating for a voluntary separation incentive payment must repay the
entire amount of the incentive payment before the first day of
reemployment in the Federal service. Under exceptional circumstances,
the OPM Director may, at the request of the hiring agency, waive the
repayment requirement for former executive branch employees.
New subpart B of 5 CFR part 576 covers both the general repayment
requirement and the limited waiver provision of the Act, which are
codified in section 3524 of title 5, United States Code.
OPM is continuing to collect data related to this program, both for
oversight purposes and to evaluate the effectiveness of the program.
These regulations are published in response to the amendment of
chapter 35 of title 5, United States Code, which relates to voluntary
separation incentive payments. They are effective on January 24, 2003,
as provided in section 1313(a)(4) of Public Law 107-296.
Waiver of Notice of Proposed Rulemaking and Delay in Effective Date
Pursuant to section 553(b)(3)(B) of title 5, United States Code, I
find that good cause exists for waiving the general notice of proposed
rulemaking because it would be contrary to the public interest to delay
implementing management flexibilities which are provided by law.
Section 1313(a)(4) of Public Law 107-296 provides that all of the
provisions in the Department of Homeland Security Act of 2002 relating
to voluntary separation incentive payments are effective 60 days from
the date of enactment of the law. The law was enacted November 25,
2002.
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.
Executive Order 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
in accordance with Executive Order 12866.
List of Subjects in 5 CFR Part 576
Government employees, wages.
Office of Personnel Management.
Kay Coles James,
Director.
Accordingly, OPM is revising part 576 of title 5, Code of Federal
Regulations, to read as follows:
PART 576--VOLUNTARY SEPARATION INCENTIVE PAYMENTS
Subpart A--Voluntary Separation Incentive Payments
Sec.
576.101 Definitions.
576.102 Voluntary separation incentive payment implementation plans.
576.103 Offering voluntary separation incentive payments to
employees.
576.104 Additional agency requirements.
576.105 Existing voluntary separation incentive payment authorities.
Subpart B--Waiver of Repayment of Voluntary Separation Incentive
Payments
Sec.
576.201 Definitions.
576.202 Repayment requirement.
576.203 Waivers of the voluntary separation incentive repayment
requirement.
Authority: 5 U.S.C. 3521, 3522, 3523, 3524, and 3525.
[[Page 5530]]
Subpart A--Voluntary Separation Incentive Payments.
Sec. 576.101 Definitions.
Section 3521(1) of title 5, United States Code, contains the
definition of Agency, and section 3521(2) of title 5, United States
Code, contains the definition of Employee, as used in this subpart.
Sec. 576.102 Voluntary separation incentive payment implementation
plans.
(a) Section 3522 of title 5, United States Code, specifies the
information that the head of an agency must submit to the Office of
Personnel Management (OPM). OPM will consult with the Office of
Management and Budget (OMB) regarding the plan and will notify the
agency head in writing when the plan is approved. The agency must have
OPM approval before offering incentives under this authority.
(b) In submitting a plan to OPM under section 3522(a) of title 5,
United States Code, the head of an agency may submit:
(1) A specific voluntary separation incentive payment
implementation plan outlining the intended use of the incentive
payments, or
(2) The agency's human capital plan, which outlines the intended
use of the incentive payments and the expected changes in the agency's
organizational structure after the agency has completed the incentive
payments.
(c) In either case, the plan must include:
(1) Identification of the specific positions and functions to be
reduced or eliminated, identified by organizational unit, geographic
location, occupational category, grade level and any other factors
related to the position, such as skills and knowledge;
(2) A description of the categories of employees who will be
offered incentives identified by organizational unit, geographic
location, occupational category, grade level and any other factors,
such as skills, knowledge, or retirement eligibility;
(3) The time period during which incentives may be paid;
(4) The number and maximum amounts of voluntary separation
incentive payments to be offered;
(5) A description of how the agency will operate without the
eliminated or restructured positions and functions;
(6) A proposed organizational chart displaying the expected changes
in the agency's organizational structure after the agency has completed
the incentive payments; and
(7) If the agency has requested, or will request Voluntary Early
Retirement Authority, a description of how that authority will be used
in conjunction with separation incentives;
(8) If the agency is offering separation incentives under any other
statutory authority, a description of how that authority is being used.
Sec. 576.103 Offering voluntary separation incentive payments to
employees.
Section 3523 of title 5, United States Code, covers:
(a) The basis for an agency to offer a voluntary separation
incentive payment;
(b) The computation of a voluntary separation incentive payment;
and
(c) The appropriations or funds that the agency uses to pay the
voluntary separation incentive payment.
Sec. 576.104 Additional agency requirements.
(a) After OPM approves an agency's plan for voluntary separation
incentive payments, the agency is required to immediately notify OPM of
any subsequent changes in the conditions that served as the basis for
the approval of the voluntary separation incentive payments. OPM will
consult with OMB and notify the agency in writing if there are changes
in the OPM approval of the agency plan.
(b) Agencies are required to provide OPM with interim and final
voluntary separation incentive payment reports, as covered in OPM's
approval letter to the agency. OPM may suspend or cancel a voluntary
separation incentive payment authority if the agency is not in
compliance with the reporting requirements or reporting schedule
specified in OPM's letter approving that authority.
Sec. 576.105 Existing voluntary separation incentive payment
authorities.
As provided in section 1313(a)(3) of Public Law 107-296, any agency
exercising voluntary separation incentive authority in effect on
January 24, 2003, may continue to offer voluntary separation incentives
consistent with that authority until that authority expires. An agency
that is eligible to offer voluntary separation incentive payments under
this authority and under any other statutory authority may choose which
authority it wishes to use, or offer incentives under both.
Subpart B--Waiver of Repayment of Voluntary Separation Incentive
Payments
Sec. 576.201 Definitions.
Section 3524(a) of title 5, United States Code, contains the
definition of Employment as used in this subpart.
Sec. 576.202 Repayment requirement.
(a) Section 3524(b) of title 5, United States Code, contains the
repayment requirement that applies if an executive branch employee who
received a voluntary separation incentive payment as described in
subpart A of this part, and accepts any employment for compensation
with the Government of the United States within 5 years after the date
of the separation on which the payment is based. The individual must
repay the entire amount of the voluntary separation incentive payment
to the agency that paid the voluntary separation incentive payment
before the individual's first day of reemployment.
(b) An executive branch employee who received a voluntary
separation incentive payment on or after March 30, 1994, under
statutory authority other than subpart A of this part, and who accepts
any employment for compensation with the Government of the United
States within 5 years after the date of the separation on which the
payment is based, may be required by the authorizing statute to repay
the entire amount.
Sec. 576.203 Waivers of the voluntary separation incentive repayment
requirement.
(a)(1) Section 3524(c)(1) of title 5, United States Code, covers
the conditions under which the Director of OPM may, at the request of
the head of the hiring agency, waive the repayment required in Sec.
576.202.
(2) Section 3524(a)(2) of title 5, United States Code, provides
that the waiver provision under section 3524(c)(1) of title 5, United
States Code, does not extend to a repayment obligation resulting from
employment under a personal services contract or other direct contract.
(b) For a voluntary separation incentive payment made under
statutory authority other than subpart A of this part, the agency
should review the authorizing statute and, if a waiver is permitted,
submit a request as specified by that statute.
[FR Doc. 03-2766 Filed 1-31-03; 2:50 pm]
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