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H.R. 5094, a bill to amend title 38, United States Code, to authorize the Secretary of Veterans Affairs to recoup certain bonuses or awards paid to employees of the Department of Veterans Affairs, and for other purposes 1 (December 11, 2014)

handle is hein.congrec/cbo2035 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE
COST ESTIMATE
December 11, 2014
H.R. 5094
A bill to amend title 38, United States Code, to authorize the Secretary of
Veterans Affairs to recoup certain bonuses or awards paid to employees
of the Department of Veterans Affairs, and for other purposes
As ordered reported by the House Committee on Veterans' Affairs on September 10, 2014
H.R. 5094 would modify several authorities and programs administered by the Department
of Veterans Affairs (VA). CBO estimates that implementing H.R. 5094 would cost less
than $500,000 over the 2015-2019 period, subject to the availability of appropriated funds.
In addition, enacting H.R. 5094 would affect direct spending. However, CBO estimates
that the net effects on direct spending would be insignificant for each year and over the
2015-2024 period. Enacting H.R. 5094 would not affect revenues.
Section 1 would give the Secretary of Veterans Affairs the authority to recoup all or part of
awards and bonuses that were paid to employees of the agency after providing a notice of
recoupment and an opportunity for a hearing conducted by VA. That authority would apply
to such payments made by VA before the date of enactment of H.R. 5094 as well as those
made after that date. CBO expects that this provision would be used infrequently, primarily
to recoup payments made to senior VA employees who were determined to have
committed a serious violation of the agency' s standards of conduct. Of the roughly
$400 million that VA pays out each year for awards and bonuses, about $4 million goes to
senior staff.
Most federal statutes of limitation are no more than six years. On that basis, CBO expects
that VA would not attempt to recoup payments made more than six years prior to the date
of enactment. In addition, the authority would only affect current employees of VA;
employees who resigned or retired would be exempt from recoupment.
In recovering overpayments made to employees, federal agencies have several options:
they can require lump-sum or installment payments, or they can use salary offsets-regular
deductions from bi-weekly payroll payments. Based on general practices at federal
agencies, CBO assumes that in most cases VA would offset future salary payments. Such
offsets would reduce discretionary costs. In those cases where VA requires a lump-sum or
installment repayment, the funds would generally be deposited in the Treasury and would
be considered a reduction in direct spending. Because CBO believes that this authority

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