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Calendar No. 501
116th Congress } { Report
SENATE
2d Session } { 116-243
_______________________________________________________________________
NO CONGRESSIONALLY OBLIGATED
RECURRING REVENUE USED AS PENSIONS
TO INCARCERATED OFFICIALS NOW ACT
__________
R E P O R T
OF THE
COMMITTEE ON HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
TO ACCOMPANY
S. 3332
TO AMEND TITLE 5, UNITED STATES CODE, TO PROVIDE FOR THE HALT IN
PENSION PAYMENTS FOR MEMBERS OF CONGRESS SENTENCED FOR CERTAIN
OFFENSES, AND FOR OTHER PURPOSES
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
July 29, 2020.--Ordered to be printed
__________
U.S. GOVERNMENT PUBLISHING OFFICE
99-010 WASHINGTON : 2020
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
RON JOHNSON, Wisconsin, Chairman
ROB PORTMAN, Ohio GARY C. PETERS, Michigan
RAND PAUL, Kentucky THOMAS R. CARPER, Delaware
JAMES LANKFORD, Oklahoma MAGGIE HASSAN, New Hampshire
MITT ROMNEY, Utah KAMALA D. HARRIS, California
RICK SCOTT, Florida KYRSTEN SINEMA, Arizona
MICHAEL B. ENZI, Wyoming JACKY ROSEN, Nevada
JOSH HAWLEY, Missouri
Gabrielle D'Adamo Singer, Staff Director
Joseph C. Folio III, Chief Counsel
Clark A. Hedrick, Counsel
David M. Weinberg, Minority Staff Director
Zachary I. Schram, Minority Chief Counsel
Annika W. Christensen, Minority Professional Staff Member
Laura W. Kilbride, Chief Clerk
Calendar No. 501
116th Congress } { Report
SENATE
2d Session } { 116-243
======================================================================
NO CONGRESSIONALLY OBLIGATED RECURRING
REVENUE USED AS PENSIONS TO INCARCERATED
OFFICIALS NOW ACT
_______
July 29, 2020.--Ordered to be printed
_______
Mr. Johnson, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
[To accompany S. 3332]
[Including cost estimate of the Congressional Budget Office]
The Committee on Homeland Security and Governmental
Affairs, to which was referred the bill (S. 3332) to amend
title 5, United States Code, to provide for the halt in pension
payments for Members of Congress sentenced for certain
offenses, and for other purposes, having considered the same,
reports favorably thereon without amendment and recommends that
the bill do pass.
CONTENTS
Page
I. Purpose and Summary..............................................1
II. Background and Need for the Legislation..........................2
III. Legislative History..............................................2
IV. Section-by-Section Analysis......................................2
V. Evaluation of Regulatory Impact..................................3
VI. Congressional Budget Office Cost Estimate........................3
VII. Changes in Existing Law Made by the Bill, as Reported............4
I. Purpose and Summary
S. 3332, the No Congressionally-Obligated Recurring Revenue
Used as Pensions To Incarcerated Officials Now Act, or the No
CORRUPTION Act, prohibits a Member of Congress who has been
convicted of certain felonies\1\ from receiving any payment of
an annuity pursuant to the Federal employee retirement system
even during the appeals process. If the relevant conviction is
held to be invalid, the individual will be entitled to receive
any payments which were withheld under the statute.
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\1\See 5 U.S.C. Sec. 8332(o)(2). Relevant public corruption felony
charges include bribery of public officials and witnesses; acting as an
agent of a foreign principal while a federal public official; fraud by
wire, radio, or television, including as part of a scheme to deprive
citizens of honest services; prohibited foreign trade practices by
domestic concerns; engaging in monetary transactions in property
derived from specified unlawful activity; tampering with a witness,
victim, or an informant; racketeer influenced and corrupt
organizations; conspiracy to commit an offense or to defraud the United
States; perjury; or subornation of perjury.
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II. Background and the Need for Legislation
The No CORRUPTION Act prevents the possibility that a
Member of Congress who has been convicted of certain felonies
may continue to receive Federal employee retirement system
annuity payments during the appeals process. Under current law,
a Member of Congress is prohibited from receiving a Federal
pension if he or she is convicted of certain public corruption
felony charges based on actions taken while serving as a Member
(e.g., bribery of officials and witnesses, etc.).\2\ However, a
convicted Member may continue receiving his or her Federal
pension while appealing the conviction.\3\
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\2\Id.
\3\Id. at Sec. 8332(o)(3).
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The No CORRUPTION Act forecloses this possibility by
withholding pension benefits immediately upon conviction. If
the conviction is overturned on appeal, or otherwise held to be
invalid, the pension will be restored and the Member will be
eligible to receive any pension benefits which were withheld
under the legislation. The No CORRUPTION Act is applied
prospectively, to any covered conviction after the date of
enactment.
III. Legislative History
Senator Jackie Rosen (D-NV) introduced S. 3332, the No
CORRUPTION Act, on February 25, 2020, with Senator Rick Scott
(R-FL). The bill was referred to the Committee on Homeland
Security and Governmental Affairs.
The Committee considered S. 3332 at a business meeting on
March 11, 2020. During the business meeting, the bill was
reported favorably en bloc by voice vote with Senators Johnson,
Portman, Lankford, Romney, Scott, Enzi, Hawley, Peters, Carper,
Hassan, Harris, Sinema, and Rosen present.
IV. Section-by-Section Analysis of the Bill, as Reported
Section 1. Short title
This section established that the bill may be cited as the
``No Congressionally-Obligated Recurring Revenue Used as
Pensions To Incarcerated Officials Now Act'' or the ``No
CORRUPTION Act.''
Section 2. Forfeiture of pension
Subsection (a) requires that if a Member is convicted of
certain felonies, the individual is prohibited from receiving
any payment of an annuity pursuant to the Federal employee
retirement system unless and until the conviction is held to be
invalid. The prohibition is prospective to apply only to
covered convictions that occur after the date of enactment.
Subsection (b) makes a technical and conforming amendment.
V. Evaluation of Regulatory Impact
Pursuant to the requirements of paragraph 11(b) of rule
XXVI of the Standing Rules of the Senate, the Committee has
considered the regulatory impact of this bill and determined
that the bill will have no regulatory impact within the meaning
of the rules. The Committee agrees with the Congressional
Budget Office's statement that the bill contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would impose no costs
on state, local, or tribal governments.
VI. Congressional Budget Office Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 12, 2020.
Hon. Ron Johnson,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S.
Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 3332, the No
CORRUPTION Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Amber
Marcellino.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
S. 3332 would eliminate the payment of current and future
retirement annuities to Members of Congress who are convicted
of certain criminal offenses already specified in law. Under
current law, Members forgo receipt of such payments only after
a final conviction (that is, after the exhaustion of all
appeals under the judicial process). The bill would eliminate
retirement annuities for Members for any conviction following
enactment.
CBO estimates that the resulting forfeitures of retirement
annuities would reduce direct spending by less than $500,000
over the 2020-2030 period. Based on the number of previous
convictions of Members of Congress, CBO anticipates that the
number of future convictions would be small. In addition, any
associated reductions in direct spending would show a budgetary
effect only once a convicted Member reached eligibility for
retirement, which could be beyond the current budget window. On
average, Members of Congress currently retiring under the
Federal Employees Retirement System receive an annuity of about
$45,000 per year. However, a criminal conviction could shorten
a Member's career. To the extent that happens, the forfeited
annuity would probably be less than the average.
The CBO staff contact for this estimate is Amber
Marcellino. The estimate was reviewed by H. Samuel Papenfuss,
Deputy Director of Budget Analysis.
VII. Changes in Existing Law Made by the Bill, as Reported
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill, as reported, are shown as follows: (existing law
proposed to be omitted is enclosed in brackets, new matter is
printed in italic, and existing law in which no change is
proposed is shown in roman):
UNITED STATES CODE
* * * * * * *
TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
* * * * * * *
PART III--EMPLOYEES
* * * * * * *
CHAPTER 83--RETIREMENT
* * * * * * *
Subchapter III--Civil Service Retirement
* * * * * * *
SEC. 8332. CREDITABLE SERVICE.
(a) * * *
* * * * * * *
(o) * * *
(1) * * *
* * * * * * *
(4)
(A) Subject to subparagraph (B), an
individual convicted of an offense described in
paragraph (2) shall not be eligible to receive
any payment of an annuity pursuant to the
retirement system under this subchapter or
chapter 84, except that this sentence applies
only to such payments based on service rendered
as a Member (irrespective of when rendered).
(B) If the conviction of an individual
described in subparagraph (A) is held to be
invalid, the individual shall receive payments
that the individual would have received but for
the application of subparagraph (A).
(C) This paragraph applies only to a
conviction that occurs after the date of
enactment of this paragraph.
[(4)](5) The Office of Personnel Management shall
prescribe any regulations necessary to carry out this
subsection. Such regulations shall include--
(A) * * *
(B) provisions under which the Office may
provide for--
(i) the payment, to the spouse or
children of any individual referred to
in the first sentence of paragraph (1),
of any amounts which (but for this
clause) would otherwise have been
nonpayable by reason of such first
sentence, subject to [paragraph (5)]
paragraph (6); and
(ii) an appropriate adjustment in the
amount of any lump-sum payment under
the second sentence of paragraph (1) to
reflect the application of clause (i).
[(5)](6) Regulations to carry out clause (i) of
[paragraph (4)(B)] paragraph (5)(B) shall include
provisions to ensure that the authority to make any
payment to the spouse or children of an individual
under such clause shall be available only to the extent
that the application of such clause is considered
necessary and appropriate taking into account the
totality of the circumstances, including the financial
needs of the spouse or children, whether the spouse or
children participated in an offense described in
paragraph (2) of which such individual was finally
convicted, and what measures, if any, may be necessary
to ensure that the convicted individual does not
benefit from any such payment.
[(6)](7) * * *
* * * * * * *
TITLE 38--VETERANS' BENEFITS
* * * * * * *
PART I--GENERAL PROVISIONS
* * * * * * *
CHAPTER 7--EMPLOYEES
* * * * * * *
Subchapter I--General Employee Matters
* * * * * * *
SEC. 719. REDUCTION OF BENEFITS OF EMPLOYEES CONVICTED OF CERTAIN
CRIMES.
(a) * * *
* * * * * * *
(e) * * *
(1) * * *
(2) Regulations prescribed under paragraph (1) shall
be consistent with the requirements of [section
8332(o)(5)] section 8332(o)(6) and 8411(l)(5) of title
5, as the case may be.
