PRIA, Government Policy, Made Personal

Summary

When the two gaseous diffusion plants are privatized, workers who already earned and vested pension benefits must keep them. If a new private owner or contractor replaces the old contractor, the pension plan sponsor must move the assets and liabilities for those accrued pensions into the new employer’s pension plan or a joint plan. Any employer at the plants must follow any unexpired collective bargaining agreement in effect on the privatization date until it ends, or if no agreement exists then must keep the same bargaining duties it had right before privatization. A new employer must offer jobs to non‑management workers from the prior contractor when those jobs still exist or when the workers are qualified for new jobs, and must honor the old contractor’s bargaining agreement until it ends or is replaced. If a plant closes or there is a mass layoff, the Secretary of Energy will treat affected contractor employees who worked at the plant on July 1, 1993, as Department of Energy employees for the purposes of sections 3161 and 3162 of the National Defense Authorization Act for Fiscal Year 1993. Post‑retirement health coverage must keep being provided in an efficient way and at about the same level as on the privatization date for eligible retirees and vested employees. Eligible people are those who retired on or before the privatization date or who were employed and vested on or before that date. The Secretary pays all post‑retirement health costs for people who retired before July 1, 1993. For those who retire on or after July 1, 1993, the Secretary and the corporation share the costs based on the retiree’s years and months of service under each of their management. Labor disputes follow the usual procedures: suits over labor agreements follow 29 U.S.C. 185, unfair‑labor‑practice charges follow NLRA section 10, and other claims can go to federal district court. If funds are available, by 30 days after August 8, 2005, the Secretary must act to protect certain workers at Portsmouth, Ohio, and Paducah, Kentucky, who on April 1, 2005, were eligible to join or transfer into the Multiple Employer Pension Plan or its retiree health plans. Employees who were covered by CSRS or FERS the day before privatization may choose to keep that CSRS or FERS coverage or take a deferred annuity or lump‑sum payment. An employee who takes the lump sum may move their Thrift Savings Plan balance into the corporation’s defined contribution plan if allowed. The corporation must make the required employee and agency payments to the Civil Service Retirement and Disability Fund under 5 U.S.C. 8334, 8422, and 8423, pay additional agency amounts that OPM says are needed to cover the “normal cost” using dynamic assumptions, and pay up to an extra 2% of those amounts for administration as OPM may set. The corporation must also pay required contributions to the Thrift Savings Fund under 5 U.S.C. 8432 and 8351. Employees who were in FEHBP the day before privatization and who keep CSRS or FERS may pick the corporation’s health plan or continue FEHBP without a break. The corporation must pay required FEHBP deductions and agency contributions under 5 U.S.C. 8906(a)–(f) and reimburse OPM amounts under 8906(g)(1). Reimbursements for retirees are prorated to count only the portion of service after the privatization date.

Title 42, §2297h–8

The Public Health and Welfare, Source: USLM XML via OLRC

(a)(1)Privatization shall not diminish the accrued, vested pension benefits of employees of the Corporation’s operating contractor at the two gaseous diffusion plants.

(2)In the event that the private corporation terminates or changes the contractor at either or both of the gaseous diffusion plants, the plan sponsor or other appropriate fiduciary of the pension plan covering employees of the prior operating contractor shall arrange for the transfer of all plan assets and liabilities relating to accrued pension benefits of such plan’s participants and beneficiaries from such plant to a pension plan sponsored by the new contractor or the private corporation or a joint labor-management plan, as the case may be.

(3)In addition to any obligations arising under the National Labor Relations Act (29 U.S.C. 151 et seq.), any employer (including the private corporation if it operates a gaseous diffusion plant without a contractor or any contractor of the private corporation) at a gaseous diffusion plant shall—

(A)abide by the terms of any unexpired collective bargaining agreement covering employees in bargaining units at the plant and in effect on the privatization date until the stated expiration or termination date of the agreement; or

(B)in the event a collective bargaining agreement is not in effect upon the privatization date, have the same bargaining obligations under section 8(d) of the National Labor Relations Act (29 U.S.C. 158(d)) as it had immediately before the privatization date.

(4)If the private corporation replaces its operating contractor at a gaseous diffusion plant, the new employer (including the new contractor or the private corporation if it operates a gaseous diffusion plant without a contractor) shall—

(A)offer employment to non-management employees of the predecessor contractor to the extent that their jobs still exist or they are qualified for new jobs, and

(B)abide by the terms of the predecessor contractor’s collective bargaining agreement until the agreement expires or a new agreement is signed.

(5)In the event of a plant closing or mass layoff (as such terms are defined in section 2101(a)(2) and (3) of title 29) at either of the gaseous diffusion plants, the Secretary of Energy shall treat any adversely affected employee of an operating contractor at either plant who was an employee at such plant on July 1, 1993, as a Department of Energy employee for purposes of section 3161 and 3162 of the National Defense Authorization Act for Fiscal Year 1993 (42 U.S.C. 7274h–7274i).11 See References in Text note below.

(6)(A)The Secretary and the private corporation shall cause the post-retirement health benefits plan provider (or its successor) to continue to provide benefits for eligible persons, as described under subparagraph (B), employed by an operating contractor at either of the gaseous diffusion plants in an economically efficient manner and at substantially the same level of coverage as eligible retirees are entitled to receive on the privatization date.

(B)Persons eligible for coverage under subparagraph (A) shall be limited to:

(i)persons who retired from active employment at one of the gaseous diffusion plants on or before the privatization date as vested participants in a pension plan maintained either by the Corporation’s operating contractor or by a contractor employed prior to July 1, 1993, by the Department of Energy to operate a gaseous diffusion plant; and

(ii)persons who are employed by the Corporation’s operating contractor on or before the privatization date and are vested participants in a pension plan maintained either by the Corporation’s operating contractor or by a contractor employed prior to July 1, 1993, by the Department of Energy to operate a gaseous diffusion plant.

(C)The Secretary shall fund the entire cost of post-retirement health benefits for persons who retired from employment with an operating contractor prior to July 1, 1993.

(D)The Secretary and the Corporation shall fund the cost of post-retirement health benefits for persons who retire from employment with an operating contractor on or after July 1, 1993, in proportion to the retired person’s years and months of service at a gaseous diffusion plant under their respective management.

(7)(A)Any suit under this subsection alleging a violation of an agreement between an employer and a labor organization shall be brought in accordance with section 185 1 of title 29.

(B)Any charge under this subsection alleging an unfair labor practice violative of section 8 of the National Labor Relations Act (29 U.S.C. 158) shall be pursued in accordance with section 10 of the National Labor Relations Act (29 U.S.C. 160).

(C)Any suit alleging a violation of any provision of this subsection, to the extent it does not allege a violation of the National Labor Relations Act [29 U.S.C. 151 et seq.], may be brought in any district court of the United States having jurisdiction over the parties, without regard to the amount in controversy or the citizenship of the parties.

(8)To the extent appropriations are provided in advance for this purpose or are otherwise available, not later than 30 days after August 8, 2005, the Secretary shall implement such actions as are necessary to ensure that any employee who—

(A)is involved in providing infrastructure or environmental remediation services at the Portsmouth, Ohio, or the Paducah, Kentucky, Gaseous Diffusion Plant;

(B)has been an employee of the Department of Energy’s predecessor management and integrating contractor (or its first or second tier subcontractors), or of the Corporation, at the Portsmouth, Ohio, or the Paducah, Kentucky, facility; and

(C)was eligible as of April 1, 2005, to participate in or transfer into the Multiple Employer Pension Plan or the associated multiple employer retiree health care benefit plans, as defined in those plans,

(b)(1)(A)An employee of the Corporation that was subject to either the Civil Service Retirement System (referred to in this section as “CSRS”) or the Federal Employees’ Retirement System (referred to in this section as “FERS”) on the day immediately preceding the privatization date shall elect—

(i)to retain the employee’s coverage under either CSRS or FERS, as applicable, in lieu of coverage by the Corporation’s retirement system, or

(ii)to receive a deferred annuity or lump-sum benefit payable to a terminated employee under CSRS or FERS, as applicable.

(B)An employee that makes the election under subparagraph (A)(ii) shall have the option to transfer the balance in the employee’s Thrift Savings Plan account to a defined contribution plan under the Corporation’s retirement system, consistent with applicable law and the terms of the Corporation’s defined contribution plan.

(2)The Corporation shall pay to the Civil Service Retirement and Disability Fund—

(A)such employee deductions and agency contributions as are required by section 8334, 8422, and 8423 of title 5 for those employees who elect to retain their coverage under either CSRS or FERS pursuant to paragraph (1);

(B)such additional agency contributions as are determined necessary by the Office of Personnel Management to pay, in combination with the sums under subparagraph (A), the “normal cost” (determined using dynamic assumptions) of retirement benefits for those employees who elect to retain their coverage under CSRS pursuant to paragraph (1), with the concept of “normal cost” being used consistent with generally accepted actuarial standards and principles; and

(C)such additional amounts, not to exceed two percent of the amounts under subparagraphs (A) and (B), as are determined necessary by the Office of Personnel Management to pay the cost of administering retirement benefits for employees who retire from the Corporation after the privatization date under either CSRS or FERS, for their survivors, and for survivors of employees of the Corporation who die after the privatization date (which amounts shall be available to the Office of Personnel Management as provided in section 8348(a)(1)(B) of title 5).

(3)The Corporation shall pay to the Thrift Savings Fund such employee and agency contributions as are required or authorized by section 8432 and 8351 of title 5 for employees who elect to retain their coverage under CSRS or FERS pursuant to paragraph (1).

(4)Any employee of the Corporation who was subject to the Federal Employee Health Benefits Program (referred to in this section as “FEHBP”) on the day immediately preceding the privatization date and who elects to retain coverage under either CSRS or FERS pursuant to paragraph (1) shall have the option to receive health benefits from a health benefit plan established by the Corporation or to continue without interruption coverage under the FEHBP, in lieu of coverage by the Corporation’s health benefit system.

(5)The Corporation shall pay to the Employees Health Benefits Fund—

(A)such employee deductions and agency contributions as are required by section 8906(a)–(f) of title 5 for those employees who elect to retain their coverage under FEHBP pursuant to paragraph (4); and

(B)such amounts as are determined necessary by the Office of Personnel Management under paragraph (6) to reimburse the Office of Personnel Management for contributions under section 8906(g)(1) of title 5 for those employees who elect to retain their coverage under FEHBP pursuant to paragraph (4).

(6)The amounts required under paragraph (5)(B) shall pay the Government contributions for retired employees who retire from the Corporation after the privatization date under either CSRS or FERS, for survivors of such retired employees, and for survivors of employees of the Corporation who die after the privatization date, with said amounts prorated to reflect only that portion of the total service of such employees and retired persons that was performed for the Corporation after the privatization date.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The National Labor Relations Act, referred to in subsec. (a)(3), (7)(C), is act July 5, 1935, ch. 372, 49 Stat. 449, which is classified generally to subchapter II (§ 151 et seq.) of chapter 7 of Title 29, Labor. For complete classification of this Act to the Code, see section 167 of Title 29 and Tables. section 3161 and 3162 of the National Defense Authorization Act for Fiscal Year 1993, referred to in subsec. (a)(5), were classified to section 7274h and 7274i, respectively, of this title and were renumbered section 4604 and 4643, respectively, of Pub. L. 107–314, the Bob Stump National Defense Authorization Act for Fiscal Year 2003, by Pub. L. 108–136, div. C, title XXXI, § 3141(i)(5)(A)–(C), (14)(A)–(C), Nov. 24, 2003, 117 Stat. 1777, 1779, 1780, which are classified to section 2704 and 2733, respectively, of Title 50, War and National Defense. Section 185 of title 29, referred to in subsec. (a)(7)(A), was in the original “section 301 of the Labor Management Relations Act (29 U.S.C. 185)”, and has been translated as reading section 301 of the Labor Management Relations Act, 1947, to reflect the probable intent of Congress. Codification Section was enacted as part of the USEC Privatization Act and also as part of the Omnibus Consolidated Rescissions and Appropriations Act of 1996, and not as part of the Atomic Energy Act of 1954 which comprises this chapter.

Amendments

2005—Subsec. (a)(8). Pub. L. 109–58 added par. (8). 1996—Subsec. (b)(3). Pub. L. 104–206 which directed the amendment of subsec. (b) by inserting par. (3), was executed to reflect the probable intent of Congress by substituting par. (3) for former par. (3) which read as follows: “The Corporation shall pay to the Thrift Savings Fund such employee and agency contributions as are required by section 8432 of title 5 for those employees who elect to retain their coverage under FERS pursuant to paragraph (1).”

§2297h–8 Employee Protections