SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of Veterans Affairs 
Employment Reduction Assistance Act of 1998''.

SEC. 2. DEFINITIONS.

    For the purpose of this Act:
            (1) The term ``employee'' means an employee (as defined by 
        section 2105 of title 5, United States Code) of the Department 
        of Veterans Affairs who is serving under an appointment without 
        time limitation and has been currently employed by the 
        Department 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 
                Government;
                    (B) an employee having a disability on the basis of 
                which such employee is 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 Government;
                    (C) an employee who is in receipt of a specific 
                notice of involuntary separation for misconduct or 
                unacceptable performance;
                    (D) an employee who previously has received any 
                voluntary separation incentive payment by the 
                Government under this Act or any other authority;
                    (E) an employee covered by statutory reemployment 
                rights who is on transfer to another organization; or
                    (F) an 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 a recruitment bonus 
                under section 7458 of title 38, United States Code; and
                    (G) any employee who, during the 12-month period 
                preceding the date of separation, received a retention 
                allowance under section 5754 of title 5, United States 
                Code, or a retention bonus under section 7458 of title 
                38, United States Code.
            (2) The term ``Department'' means the Department of 
        Veterans Affairs.
            (3) The term ``Secretary'' means the Secretary of Veterans 
        Affairs.

SEC. 3. DEPARTMENT PLANS; APPROVAL.

    (a) In General.--The Secretary, before obligating any resources for 
voluntary separation incentive payments, shall submit to the Director 
of the Office of Management and Budget a strategic plan outlining the 
use of such incentive payments and a proposed organizational chart 
for the Department once such incentive payments have been completed.
    (b) Contents.--The plan shall specify--
            (1) the positions and functions to be reduced or 
        eliminated, identified by organizational unit, geographic 
        location, occupational category and grade level; the proposed 
        coverage may be based on--
                    (A) any component of the Department of Veterans 
                Affairs;
                    (B) any occupation, occupation level or type of 
                position;
                    (C) any geographic location; or
                    (D) any appropriate combination of the factors in 
                subparagraphs (A), (B), and (C);
            (2) the manner in which such reductions will improve 
        operating efficiency or meet actual or anticipated levels of 
        budget or staffing resources;
            (3) the period of time during which incentives may be paid; 
        and
            (4) a description of how the affected components of the 
        Department of Veterans Affairs will operate without the 
        eliminated functions and positions.
    (c) Approval.--The Director of the Office of Management and Budget 
shall approve or disapprove each plan submitted under subsection (a) 
and may make appropriate modifications to the plan with respect to the 
time period in which voluntary separation incentives may be paid, with 
respect to the number and amounts of incentive payments, or with 
respect to the coverage of incentives on the basis of the factors in 
subsection (b)(1).

SEC. 4. VOLUNTARY SEPARATION INCENTIVE PAYMENTS.

    (a) Authority To Provide Voluntary Separation Incentive Payments.--
            (1) In general.--The Secretary may pay a voluntary 
        separation incentive payment to an employee only to the extent 
        necessary to reduce or eliminate the positions and functions 
        identified by the strategic plan.
            (2) Employees who may receive incentives.--In order to 
        receive a voluntary separation incentive payment, an employee 
        must separate from service with the Department voluntarily 
        (whether by retirement or resignation) under the provisions of 
        this Act.
    (b) 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 (without 
                adjustment for any previous payment made under that 
                section); or
                    (B) an amount determined by the Secretary, not to 
                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 in determining the 
        amount of 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 the appropriations or funds 
        available for payment of the basic pay of the employee.

SEC. 5. EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERNMENT.

    (a) Repayment Upon Subsequent Employment.--An individual who has 
received a voluntary separation incentive payment under this Act and 
accepts any employment with the Government, or who works for any agency 
of the Government through a personal services contract, within five 
years after the date of the separation on which the payment is based 
shall be required to repay, before the individual's first day of 
employment, the entire amount of the incentive payment to the 
Department.
    (b) Waiver Authority for Certain Individuals.--(1) If the 
employment under subsection (a) 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.
    (2) If the employment under subsection (a) 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.
    (3) If the employment under subsection (a) 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.
    (c) Definition.--For the purpose of this section, the term 
``employment'' includes--
            (1) for the purposes of subsections (a) and (b), employment 
        of any length or under any type of appointment, but does not 
        include employment that is without compensation; and
            (2) for the purposes of subsection (a), employment with any 
        agency of the Government through a personal services contract.

SEC. 6. ADDITIONAL AGENCY CONTRIBUTION TO RETIREMENT FUND.

    (a) Additional Contribution.--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 Secretary 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 Department 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.
    (b) Definition.--For the purpose of this section, the term ``final 
basic pay'', with respect to an employee, means the total amount of 
basic pay that would be payable for a year of service by that 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.

SEC. 7. REDUCTION OF AGENCY EMPLOYMENT LEVELS.

    (a) In General.--The total full-time equivalent employment in the 
Department shall be reduced by one for each separation of an employee 
who receives a voluntary separation incentive payment under this Act. 
The reduction shall be calculated by comparing the Department's full-
time equivalent employment for the fiscal year in which the voluntary 
separation payments are made with the actual full-time equivalent 
employment for the prior fiscal year.
    (b) Enforcement.--The President, through the Office of Management 
and Budget, shall monitor the Department and take any action necessary 
to ensure that the requirements of this section are met.
    (c) Waiver Authority.--Subsection (a) may be waived upon a 
determination by the President that--
            (1) the existence of a state of war or other national 
        emergency so requires; or
            (2) the existence of an extraordinary emergency which 
        threatens life, health, safety, property, or the environment so 
        requires.

SEC. 8. CONTINUED HEALTH INSURANCE COVERAGE.

    Section 8905a(d)(4) of title 5, United States Code, is amended--
            (1) in subparagraph (A), by inserting after force ``, or an 
        involuntary separation from a position in or under the 
        Department of Veterans Affairs due to a reduction in force or a 
        title 38 staffing adjustment'';
            (2) in subparagraph (B), by inserting at the beginning 
        thereof ``With respect to the Department of Defense,'';
            (3) by redesignating subparagraph (C) as subparagraph (D);
            (4) by inserting after subparagraph (B) the following new 
        subparagraph (C):
                    ``(C) With respect to the Department of Veterans 
                Affairs, this paragraph shall apply with respect to any 
                individual whose continued coverage is based on a 
                separation occurring on or after the date of the 
                enactment of this subparagraph and before--
                            ``(i) October 1, 2004; or
                            ``(ii) February 1, 2005, if specific notice 
                        of such separation was given to such individual 
                        before October 1, 2004.''.

SEC. 9. REGULATIONS.

    The Director of the Office of Personnel Management may prescribe 
any regulations necessary to administer the provisions of this Act.

SEC. 10. LIMITATION; SAVINGS CLAUSE.

    (a) Limitation.--No voluntary separation incentive under this Act 
may be paid based on the separation of an employee after September 30, 
2004.
    (b) Savings Clause.--This Act supplements and does not supersede 
other authority of the Secretary.

SEC. 11. EFFECTIVE DATE.

    This Act shall take effect on the date of the enactment of this 
Act.
Department of Veterans Affairs Employment Reduction Assistance Act of 1998 - Directs the Secretary of Veterans Affairs, before obligating any resources for voluntary separation incentive payments (payments), to submit to the Director of the Office of Management and Budget a strategic plan outlining the use of such payments and a proposed organizational chart for the Department of Veterans Affairs once such payments have been completed.  Requires such plan to include:  (1) the positions and functions to be reduced or eliminated; (2) their effects on meeting efficiency, budget, or staffing goals; (3) the period of time during which such incentives may be paid; and (4) a description of how the affected Department components will operate without the eliminated functions and positions. 
Authorizes the Secretary to make such a payment only to reduce or eliminate positions or functions identified in the plan.  Requires such payments to be in a lump sum and no greater than $25,000 apiece. Requires full repayment from any individual who is subsequently reemployed with any Federal department or agency, with exceptions for certain employment in which the individual possesses unique abilities and is the only qualified applicant available. 
Requires the Secretary to remit to the Office of Personnel Management for credit to the Civil Service Retirement and Disability Fund 15 percent of the final basic pay of each individual receiving such payments. 
Reduces the total full-time equivalent employees in the Department by one for each individual receiving such a payment.  Authorizes the President to waive such reductions upon a determination of the existence of:  (1) a state of war or other national emergency; or (2) an extraordinary emergency which threatens life, health, safety, property, or the environment. 
Provides for continued temporary health insurance coverage for individuals receiving such payments. 
Prohibits any payment based on the separation of an employee after September 30, 2004.
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