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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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------

              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\
---------------------------------------------------------------------------
    \2\Id.
    \3\Id. at Sec. 8332(o)(3).
---------------------------------------------------------------------------
    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.