4. Honorable Alan Cranston Section 8(b) would expand VA's existing authority to grant exceptions to a required reduction in retired military pay So as to include registered nurses in addition to physicians. Section 5532 of title 5, United States Code, now imposes upon retired officers of the uniformed services, a substantial reduction in their retired pay when appointed to civilian positions in the Federal Government. Under that section, the former officer's retired pay, following appointment, is reduced to an amount equal to $7,698.51 plus half the remainder of his retired pay. (Originally the base figure was $2,000; the statute authorizes an increase keyed to Consumer Price Index increases.) The statute also imposes an overall effective ceiling equivalent to Executive Level V ($75,500), upon the aggregate of retired pay and civilian pay. Naturally, this reduction makes VA employment less attractive for retired military health care officers. We now have authority in 38 U.S.C. $ 4107(i) to authorize exceptions to the statutory loss of pay for well-qualified physicians. Exercised infrequently and, we believe, prudently, the authority has nevertheless been particularly helpful in selectively recruiting highly qualified physicians in a variety of scarce categories. In our view, allowing VA to include retired military nurses would attract many more of these nurses to VA employment when they retire from the uniformed services. This expansion would be particularly helpful in recruiting and retaining nurses at facilities experiencing nursing shortages. Additionally, we recommend amending the bill to include authority not just for registered nurses, but all occupations providing patient care services or services incident to direct patient care. This will allow more competitive recruiting for retiring military pharmacists, physician assistants, dieticians, therapists, and other shortage category health personnel who now tend to avoid Federal civilian employment. It should be noted that although this provision will not increase VA outlays, it will continue outlays for military retired pay. The Administration urges that equivalent authority be provided for the Secretary of Defense. To provide the Secretary of Veterans Affairs authority to grant exceptions to the restrictions in section 5532 of title 5, United States Code, while failing to provide reciprocal authority to the Secretary of Defense, will further exacerbate DOD's difficulties in attracting and retaining health care professionals. 5. Honorable Alan Cranston VA estimates that the total cost of S. 574 would be approximately $15.8 million in Fiscal Year 1990, and $51.1 million over five fiscal years. The Office of Management and Budget advises that there is no objection from the standpoint of the Administration's program to the submission of this report on S. 574 to the Congress. Sincerely yours, El Munste Edward J. Derwinski COST ESTIMATION WORKSHEET S.574, Veterans Health-Care Program Improvements Amendments of 1989 8(a) Premium Pay for Certain Nursing Assistants FY 89 ECTION NUMBER/NAME: 1. ASSUMPTIONS & METHODOLOGY OF COST, FTEE, & WORKLOAD PROJECTIONS: Use a COST ESTIMATION (Continuation) WORKSHEET for additional space. LEGISLATION NUMBER/NAME: S. 574, Veterans Health-Care Program Improvements Amendments of 1989 SECTION NUMBER/NAME: 8(a) Premium Pay for Certain Nursing Assistants 1. Estimate of annual cost for Sunday premium pay for LPNs/NAS: FY 89 Pay Period S 2. 252,706.76 x 26 pay periods · 6,570,375.76 Estimate of Evening Night Differential for LPNs/NAS: FY 88 pay period 14 hourly pay out was 2079.81. 2079.81 x 1.041 (Jan. 1989 pay raise) 2,165.08 3. Assumptions: As of 12/31/88 employed 15,004 FT NAs and 10,033 LPNs; 60% of total LPNs/NAs are NAs. Saturday premium pay same as Sunday: Saturday premium pay for NAs) 6 a.m. 60% of 6,570,375.76 $3,942,225 (additional cost Evening and night differential Title 5 pays only the hours between 6 p.m. Title 38 pays all hours if majority are between 6 p.m. 6 a.m. Assume an additional 4 hours each day x 14 days per pay period. Hourly pay out was 2165.08 X 56 (4 additional hours/14 days) - 121,244.48 x 26 - 3,152,356.48. 60% of 3,152,356.48 - $1,891,414 (additional cost TOTAL $5,833,639 3. Initial demand is expected to be greater as the existing population of quadriplegics wanting Companion The combined cost for FYs 1989 thru 1994 to provide both Simian Aides and Companion Dogs is $2,373,750. |