SEC. 472. [6 U.S.C. 292] VOLUNTARY SEPARATION INCENTIVE PAYMENTS.

(a) Definitions.--For purposes of this section--

(1) the term ``employee'' means an employee (as

defined by section 2105 of title 5, United States Code)

who--

(A) has completed at least 3 years of

current continuous service with 1 or more

covered entities; and

(B) is serving under an appointment without

time limitation,

but does not include any person under subparagraphs

(A)-(G) of section 663(a)(2) of Public Law 104-208 (5

U.S.C. 5597 note);

(2) the term ``covered entity'' means--

(A) the Immigration and Naturalization

Service;

(B) the Bureau of Border Security of the

Department of Homeland Security; and

(C) the Bureau of Citizenship and

Immigration Services of the Department of

Homeland Security; and

(3) the term ``transfer date'' means the date on

which the transfer of functions specified under section

441 takes effect.

(b) Strategic Restructuring Plan.--Before the Attorney

General or the Secretary obligates any resources for voluntary

separation incentive payments under this section, such official

shall submit to the appropriate committees of Congress a

strategic restructuring plan, which shall include--

(1) an organizational chart depicting the covered

entities after their restructuring pursuant to this

Act;

(2) a summary description of how the authority

under this section will be used to help carry out that

restructuring; and

(3) the information specified in section 663(b)(2)

of Public Law 104-208 (5 U.S.C. 5597 note).

As used in the preceding sentence, the ``appropriate committees

of Congress'' are the Committees on Appropriations, Government

Reform, and the Judiciary of the House of Representatives, and

the Committees on Appropriations, Governmental Affairs, and the

Judiciary of the Senate.

(c) Authority.--The Attorney General and the Secretary may,

to the extent necessary to help carry out their respective

strategic restructuring plan described in subsection (b), make

voluntary separation incentive payments to employees. Any such

payment--

(1) shall be paid to the employee, in a lump sum,

after the employee has separated from service;

(2) shall be paid from appropriations or funds

available for the payment of basic pay of the employee;

(3) shall be equal to the lesser of--

(A) the amount the employee would be

entitled to receive under section 5595(c) of

title 5, United States Code; or

(B) an amount not to exceed $25,000, as

determined by the Attorney General or the

Secretary;

(4) may not be made except in the case of any

qualifying employee who voluntarily separates (whether

by retirement or resignation) before the end of--

(A) the 3-month period beginning on the

date on which such payment is offered or made

available to such employee; or

(B) the 3-year period beginning on the date

of the enactment of this Act,

whichever occurs first;

(5) shall not be a basis for payment, and shall not

be included in the computation, of any other type of

Government benefit; and

(6) shall not be taken into account in determining

the amount of any severance pay to which the employee

may be entitled under section 5595 of title 5, United

States Code, based on any other separation.

(d) Additional Agency Contributions to the Retirement

Fund.--

(1) In general.--In addition to any payments which

it is otherwise required to make, the Department of

Justice and the Department of Homeland Security shall,

for each fiscal year with respect to which it makes any

voluntary separation incentive payments under this

section, 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 the amount required under paragraph (2).

(2) Amount required.--The amount required under

this paragraph shall, for any fiscal year, be the

amount under subparagraph (A) or (B), whichever is

greater.

(A) First method.--The amount under this

subparagraph shall, for any fiscal year, be

equal to the minimum amount necessary to offset

the additional costs to the retirement systems

under title 5, United States Code (payable out

of the Civil Service Retirement and Disability

Fund) resulting from the voluntary separation

of the employees described in paragraph (3), as

determined under regulations of the Office of

Personnel Management.

(B) Second method.--The amount under this

subparagraph shall, for any fiscal year, be

equal to 45 percent of the sum total of the

final basic pay of the employees described in

paragraph (3).

(3) Computations to be based on separations

occurring in the fiscal year involved.--The employees

described in this paragraph are those employees who

receive a voluntary separation incentive payment under

this section based on their separating from service

during the fiscal year with respect to which the

payment under this subsection relates.

(4) Final basic pay defined.--In this subsection,

the term ``final basic pay'' means, with respect to an

employee, the total amount of basic pay which would be

payable for a year of service by such 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.

(e) Effect of Subsequent Employment With the Government.--

An individual who receives a voluntary separation incentive

payment under this section and who, within 5 years after the

date of the separation on which the payment is based, accepts

any compensated employment with the Government or works for any

agency of the Government through a personal services contract,

shall be required to pay, prior to the individual's first day

of employment, the entire amount of the incentive payment. Such

payment shall be made to the covered entity from which the

individual separated or, if made on or after the transfer date,

to the Deputy Secretary or the Under Secretary for Border and

Transportation Security (for transfer to the appropriate

component of the Department of Homeland Security, if

necessary).

(f) Effect on Employment Levels.--

(1) Intended effect.--Voluntary separations under

this section are not intended to necessarily reduce the

total number of full-time equivalent positions in any

covered entity.

(2) Use of voluntary separations.--A covered entity

may redeploy or use the full-time equivalent positions

vacated by voluntary separations under this section to

make other positions available to more critical

locations or more critical occupations.

SEC. 473. [6 U.S.C. 293] AUTHORITY TO CONDUCT A DEMONSTRATION PROJECT

RELATING TO DISCIPLINARY ACTION.

(a) In General.--The Attorney General and the Secretary may

each, during a period ending not later than 5 years after the

date of the enactment of this Act, conduct a demonstration

project for the purpose of determining whether one or more

changes in the policies or procedures relating to methods for

disciplining employees would result in improved personnel

management.

(b) Scope.--A demonstration project under this section--

(1) may not cover any employees apart from those

employed in or under a covered entity; and

(2) shall not be limited by any provision of

chapter 43, 75, or 77 of title 5, United States Code.

(c) Procedures.--Under the demonstration project--

(1) the use of alternative means of dispute

resolution (as defined in section 571 of title 5,

United States Code) shall be encouraged, whenever

appropriate; and

(2) each covered entity under the jurisdiction of

the official conducting the project shall be required

to provide for the expeditious, fair, and independent

review of any action to which section 4303 or

subchapter II of chapter 75 of such title 5 would

otherwise apply (except an action described in section

7512(5) of such title 5).

(d) Actions Involving Discrimination.--Notwithstanding any

other provision of this section, if, in the case of any matter

described in section 7702(a)(1)(B) of title 5, United States

Code, there is no judicially reviewable action under the

demonstration project within 120 days after the filing of an

appeal or other formal request for review (referred to in

subsection (c)(2)), an employee shall be entitled to file a

civil action to the same extent and in the same manner as

provided in section 7702(e)(1) of such title 5 (in the matter

following subparagraph (C) thereof).

(e) Certain Employees.--Employees shall not be included

within any project under this section if such employees are--

(1) neither managers nor supervisors; and

(2) within a unit with respect to which a labor

organization is accorded exclusive recognition under

chapter 71 of title 5, United States Code.

Notwithstanding the preceding sentence, an aggrieved employee

within a unit (referred to in paragraph (2)) may elect to

participate in a complaint procedure developed under the

demonstration project in lieu of any negotiated grievance

procedure and any statutory procedure (as such term is used in

section 7121 of such title 5).

(f) Reports.--The General Accounting Office shall prepare

and submit to the Committees on Government Reform and the

Judiciary of the House of Representatives and the Committees on

Governmental Affairs and the Judiciary of the Senate periodic

reports on any demonstration project conducted under this

section, such reports to be submitted after the second and

fourth years of its operation. Upon request, the Attorney

General or the Secretary shall furnish such information as the

General Accounting Office may require to carry out this

subsection.

(g) Definition.--In this section, the term ``covered

entity'' has the meaning given such term in section 472(a)(2).

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