[House Report 115-1069]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-1069
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SECRET SERVICE OVERTIME PAY EXTENSION ACT
_______
December 10, 2018.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Gowdy, from the Committee on Oversight and Government Reform,
submitted the following
R E P O R T
[To accompany H.R. 6893]
[Including cost estimate of the Congressional Budget Office]
The Committee on Oversight and Government Reform, to whom
was referred the bill (H.R. 6893) to amend the Overtime Pay for
Protective Services Act of 2016 to extend the Secret Service
overtime pay exception through 2019, and for other purposes,
having considered the same, report favorably thereon with
amendments and recommend that the bill as amended do pass.
CONTENTS
Page
Summary and Purpose of Legislation............................... 2
Background and Need for Legislation.............................. 2
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 4
Statement of General Performance Goals and Objectives............ 4
Legislative History.............................................. 4
Committee Consideration.......................................... 4
Roll Call Votes.................................................. 5
Explanation of Amendments........................................ 5
Application of Law to the Legislative Branch..................... 5
Duplication of Federal Programs.................................. 5
Disclosure of Directed Rule Makings.............................. 5
Federal Advisory Committee Act................................... 5
Unfunded Mandates Statement...................................... 5
Earmark Identification........................................... 5
Committee Estimate............................................... 6
New Budget Authority and Congressional Budget Office Cost
Estimate....................................................... 6
Section-by-Section Analysis...................................... 7
Changes in Existing Law Made by the Bill, as Reported............ 7
The amendments are as follows:
Section 2 is amended--
(1) in the heading for such section, by striking
``2019'' and inserting ``2020'';
(2) in paragraph (1), by striking ``2019'' and
inserting ``2020'';
(3) in paragraph (2), by striking ``or 2019'' and
inserting ``2019, or 2020''; and
(4) in paragraph (3)--
(A) by striking ``or 2018'' and inserting
``and 2018''; and
(B) by striking ``or 2019'' and inserting
``2019, and 2020''.
Summary and Purpose of Legislation
H.R. 6893, the Secret Service Overtime Pay Extension Act
extends a waiver of the annual pay cap for basic and premium
overtime pay for the U.S. Secret Service until the end of
calendar year 2020. Congress first authorized this waiver in
the Overtime Pay for Protective Services Act of 2016 (P.L. 114-
311), and extended it in the Secret Service Recruitment and
Retention Act of 2018 (P.L. 115-160). Lifting the pay cap
allows Secret Service personnel to be partially compensated for
overtime hours that result in owed compensation above the cap.
The additional premium overtime pay will not be creditable
toward the retirement annuity or annual leave calculations.
Background and Need for Legislation
The United States Secret Service is a federal law
enforcement agency whose chief responsibility is the protection
of the President of the United States, the Vice President of
the United States, immediate families of the occupants of both
positions, and select other individuals and events of national
significance.\1\ The Secret Service also has a role in
investigating certain cybercrimes and currency
counterfeiting.\2\ The agency has four main personnel types:
special agents; uniformed division officers; administrative,
professional, and technical staff; and special officers.\3\
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\1\18 U.S.C. 3056.
\2\Reporting Computer, Internet-Related, or Intellectual Property
Crime, Dep't of Justice, https://www.justice.gov/criminal-ccips/
reporting-computer-internet-related-or-intellectual- property-crime
(last accessed Oct. 1, 2018).
\3\See, e.g., Join, U.S. Secret Service, https://
www.secretservice.gov/join/careers/ (last accessed Oct. 1, 2018).
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The Committee has a longstanding interest in the Secret
Service's recruitment and retention issues and a number of
outstanding recommendations to address them.\4\ In a July 2018
briefing for Committee staff, the Secret Service provided
information on its significant efforts to rectify its staffing
shortage. As of July 27, 2018, the Secret Service was
projecting net growth of 350 personnel in fiscal year (FY)
2018, with total personnel totals reaching 7,250.\5\ In
addition, overall attrition rates were projected to decline to
7.55 percent, a 1.2 percentage point drop from FY 2016.\6\
While attrition is expected to oscillate during election years
due to the additional workload, the overall trend of declining
attrition represents progress.
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\4\See H. Comm. on Oversight & Gov't Reform, Secret Service
Recruitment and Retention Act of 2017 1-4, 115th Cong. (Dec. 4, 2017)
(H. Rep. 115-435, Part I); H. Comm. on Oversight & Gov't Reform, United
States Secret Service: An Agency in Crisis, 114th Cong. (Dec. 9, 2015)
(H. Rep. 114-385).
\5\Briefing by staff, U.S. Secret Service, to staffs, H. Comm. on
Oversight & Gov't Reform, S. Comm. on Homeland Sec. & Governmental
Affairs, H. Comm. on Homeland Sec., H. Comm. on the Judiciary, & S.
Comm. on the Judiciary (July 27, 2018) [hereinafter U.S. Secret Service
Briefing].
\6\Id.
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Even with these modest gains, Secret Service personnel are
required to work excessive overtime to ensure the agency's
protective mission is fully staffed. In calendar year 2017, for
example, 1,171 Secret Service personnel worked enough overtime
to reach the statutory annual premium pay cap.\7\ The statutory
annual premium pay cap limits total aggregate compensation,
which includes basic and premium overtime pay, for all Federal
employees on the General Schedule at the biweekly pay
equivalent of an annual salary of $163,654.\8\
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\7\U.S. Secret Service, Secret Service Overtime Payments For
Protective Services For Calendar Year 2017 3 (Sept. 25, 2018)
[hereinafter U.S. Secret Service Report].
\8\5 U.S.C. 5547; See also Office of Personnel Mgmt., Biweekly Caps
on Premium Pay, https://www.opm.gov/policy-data-oversight/pay-leave/
pay-administration/#url=Biweekly-Pay-Caps (last accessed Oct. 3, 2018);
The biweekly rate of pay limitation is adjusted for locality pay area,
and so may be lower or higher depending on the individual's duty
location. The $163,654 limitation is for the Washington, D.C., locality
pay area in 2018, the highest in the country. Because the limitation is
tied to the rate of pay applicable to certain positions (GS-15, step 10
locality rate, or level V of the Executive Schedule), the value of the
limitation will also fluctuate depending on any pay increases approved
by the President or Congress.
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Together, the agency's staffing shortages and increased
protective responsibilities have consistently caused Secret
Service personnel to reach the statutory pay cap before the end
of the year, meaning some overtime is not compensated.\9\
``Maxing out,'' as it is known within the Secret Service, has
been reported as a top issue affecting employee morale and
retention.\10\ In response, Congress raised the premium pay cap
limitation to level II of the Executive Schedule, which was
$189,600 in 2018, for calendar years 2016-2018.\11\ Raising the
premium pay cap limitation resulted in Secret Service personnel
receiving over $9.7 million in 2017.\12\ The average increase
in pay was $8,324, while the median increase was $6,211.\13\
The greatest amount received by an individual was $26,961.\14\
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\9\U.S. Secret Service Briefing, supra note 5.
\10\Id.
\11\Overtime Pay for Protective Services Act of 2016, Pub. L. No.
114-311, 130 Stat. 1531, 1532; Secret Service Recruitment and Retention
Act of 2017, Pub. L. No. 115-160, 132 Stat. 1246, 1248.
\12\U.S. Secret Service Report, supra note 7.
\13\Id.
\14\Id.
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H.R. 6893 will further extend the premium pay cap waiver
provided to the Secret Service for work on the agency's
protective mission through the 2020 election year. This is done
to ensure the Secret Service does not backtrack on its staffing
improvements and to give more time for the Committee to receive
the reports required in the most recent extension of the
premium pay cap waiver.\15\ In keeping with previous practice,
the bill subjects Secret Service personnel to a new aggregate
pay cap of level II of the Executive Schedule. Due to changes
made by the Secret Service Recruitment and Retention Act,
Secret Service personnel will only be able to collect the
additional money if the agency is specifically appropriated the
additional funds.\16\
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\15\Secret Service Recruitment and Retention Act of 2017, Pub. L.
No. 115-160, 132 Stat. 1246, 1248, 2(c), 3.
\16\Id., at 2(a)(1)(C).
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Between 700 and 900 Secret Service personnel will be
eligible for the raised premium pay cap in calendar year 2019,
while 1,100-1,200 will be eligible in 2020.\17\ Between 80 and
120 will not be fully compensated in 2019, while 300-500 will
still have some unpaid overtime in 2020 if the legislation is
enacted.\18\ However, H.R. 6893 provides partial relief to all
Secret Service personnel with overtime for which they would not
otherwise be compensated.
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\17\U.S. Secret Service Briefing, supra note 5
\18\Id.
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Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the previous section.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goal or objective of this bill is to amend the Overtime Pay for
Protective Services Act of 2016 to extend the Secret Service
overtime pay exception through 2020.
Legislative History
On September 25, 2018, Representative Steve Russell (R-OK)
introduced H.R. 6893, the Secret Service Overtime Pay Extension
Act, with Representatives John Katko (R-NY) and Bonnie Watson
Coleman (D-NJ). H.R. 6893 was referred to the Committee on
Oversight and Government Reform. The Committee considered H.R.
6893 at a business meeting on September 27, 2018 and ordered
the bill favorably reported, as amended, by voice vote.
H.R. 6893 extends the Secret Service-specific annual
premium pay cap waiver previously authorized by H.R. 3731, the
Secret Service Recruitment and Retention Act of 2018, and H.R.
6302, the Overtime Pay for Protective Services Act of 2016. The
latter was considered in the 114th Congress. Both were enacted
into law as P.L. 115-160 and P.L. 114-311, respectively.
Prior to consideration of H.R. 6302 in the 114th Congress,
the Committee on Oversight and Government Reform held a hearing
on compensation and staffing problems at the Secret Service.
The hearing was held on November 15, 2016.\19\ At that hearing,
Members discussed the Secret Service's challenges in hiring and
retaining a sufficient number of special agents in order to
mitigate excessive overtime in violation of the pay cap.
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\19\Oversight of the Secret Service: Hearing Before the H. Comm. on
Oversight & Gov't Reform, 114th Cong. (2016).
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Committee Consideration
On September 27, 2018, the Committee met in open session
and, with a quorum being present, ordered the bill favorably
reported, as amended, by voice vote.
Roll Call Votes
There were no roll call votes requested or conducted during
Committee consideration of H.R. 6893.
Explanation of Amendments
During Committee consideration of the bill, Representative
Elijah Cummings (D-MD), the Ranking Minority Member of the
Committee, offered an amendment to extend the life of the
Secret Service-specific annual premium pay cap waiver through
2020. The introduced version of the bill allowed for an
extension through 2019. The amendment was adopted by voice
vote.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to the terms and conditions of
employment or access to public services and accommodations.
This bill amends the Overtime Pay for Protective Services Act
of 2016 to extend the Secret Service overtime pay exception
through 2020. As such, this bill does not relate to employment
or access to public services and accommodations in the
legislative branch.
Duplication of Federal Programs
In accordance with clause 2(c)(5) of rule XIII no provision
of this bill establishes or reauthorizes a program of the
Federal Government known to be duplicative of another Federal
program, a program that was included in any report from the
Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Disclosure of Directed Rule Makings
This bill does not direct the completion of any specific
rule makings within the meaning of section 551 of title 5,
United States Code.
Federal Advisory Committee Act
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of Section 5(b) of the appendix to title 5,
United States Code.
Unfunded Mandates Statement
Pursuant to section 423 of the Congressional Budget Act of
1974 the Committee has included a letter received from the
Congressional Budget Office below.
Earmark Identification
This bill does not include any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI of the House of Representatives.
Committee Estimate
Pursuant to clause 3(d)(2)(B) of rule XIII of the Rules of
the House of Representatives, the Committee includes below a
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974.
New Budget Authority and Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the House of
Representatives, the cost estimate prepared by the
Congressional Budget Office and submitted pursuant to section
402 of the Congressional Budget Act of 1974 is as follows:
H.R. 6893--Secret Service Overtime Pay Extension Act
H.R. 6893 would remove certain limits on premium pay for
employees of the Secret Service who provide protective services
in calendar years 2019 and 2020. The bill's provisions would
not apply to years after 2020. The bill would extend the
provisions that governed such premium pay during calendar years
2016, 2017, and 2018.
Under current law, the Secret Service disbursed a total of
about $23 million in additional premium pay for calendar years
2016 (a presidential election year) and 2017. The agency
expects such premium pay to decline somewhat in 2019 and 2020
because a recent increase in permanent staff has reduced the
need for overtime. Using information from the Secret Service,
CBO estimates that implementing the bill would cost a total of
$17 million over the fiscal year 2019-2021 period, assuming
appropriation of the necessary amounts. We expect overtime
spending to surge in the first quarter of fiscal year 2021
(October through December) as a result of the 2020 presidential
election. The costs of this bill are shown in the following
table and fall within budget function 750 (administration of
justice).
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By fiscal year, in millions of dollars--
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2019 2020 2021 2022 2023 2019-2023
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INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level................................ 5 8 4 0 0 17
Estimated Outlays............................................ 5 8 4 0 0 17
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Enacting the bill would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply.
CBO estimates that enacting H.R. 6893 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2029.
H.R. 6893 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Mark Grabowicz.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Section-by-Section Analysis
Section 1. Short title
Section 1 establishes the short title of the bill.
Section 2. Extension of overtime pay exception through 2020 for
protective services
Section 2 amends the Overtime Pay for Protective Services
Act of 2016 by extending the waiver of the Secret Service-
specific annual premium pay cap in section 5547 of title 5,
United States Code, for covered employees of the Secret Service
to the end of 2020. The new premium pay cap will be set at
level II of the Executive Schedule, consistent with previous
extensions of the annual premium pay cap waiver at the Secret
Service.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
OVERTIME PAY FOR PROTECTIVE SERVICES ACT OF 2016
* * * * * * *
SEC. 2. PREMIUM PAY EXCEPTION DURING 2016 THROUGH [2018] 2020 FOR
PROTECTIVE SERVICES.
(a) Definition.--In this section, the term ``covered
employee'' means any officer, employee, or agent employed by
the United States Secret Service who performs protective
services for an individual or event protected by the United
States Secret Service during 2016, 2017, [or 2018] 2018, 2019,
or 2020.
(b) Exception to the Limitation on Premium Pay for Protective
Services.--
(1) In general.--Notwithstanding any other provision
of law, including section 5547(a) of title 5, United
States Code, and only to the extent that an
appropriation is provided specifically in an
appropriations Act for premium pay in excess of the
annual equivalent of the limitation on the rate of pay
contained in section 5547(a), any covered employee may
receive premium pay during 2016, 2017, [and 2018] 2018,
2019, and 2020, to the extent provided under section
118 of the Treasury and General Government
Appropriations Act, 2001 (5 U.S.C. 5547 note).
(2) Technical and conforming amendment.--Section 118
of the Treasury and General Government Appropriations
Act, 2001 (as enacted into law by section 1(3) of
Public Law 106-554; 114 Stat. 2763A-134) is amended, in
the first sentence, by inserting ``or, if the employee
qualifies for an exception to such limitation under
section 2(b)(1) of the Overtime Pay for Protective
Services Act of 2016, to the extent that such aggregate
amount would exceed the rate of basic pay payable for a
position at level II of the Executive Schedule under
section 5313 of title 5, United States Code'' after
``of that limitation''.
(c) Treatment of Additional Pay.--If subsection (b) results
in the payment of additional premium pay to a covered employee
of a type that is normally creditable as basic pay for
retirement or any other purpose, that additional pay shall
not--
(1) be considered to be basic pay of the covered
employee for any purpose; or
(2) be used in computing a lump-sum payment to the
covered employee for accumulated and accrued annual
leave under section 5551 or section 5552 of title 5,
United States Code.
(d) Aggregate Limit.--With respect to the application of
section 5307 of title 5, United States Code, the payment of any
additional premium pay to a covered employee as a result of
subsection (b) shall not be counted as part of the aggregate
compensation of the covered employee.
(e) Effective Date.--This section and the amendments made by
this section shall take effect as if enacted on December 31,
2015.
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