NON-FEDERAL EMPLOYMENT INCENTIVE PILOT PROGRAM.

SEC. 348. NON-FEDERAL EMPLOYMENT INCENTIVE PILOT PROGRAM. (a) Authority.— The Secretary of Defense may establish a pilot program for the payment of incentives in accordance with this section to facilitate the reemployment of eligible employees of the Department of Defense whose employment with the Department is being terminated by reason of the closure or realignment of the military installations where such persons are employed. Under the pilot program, the Secretary may pay retraining and relocation incentives to encourage non-Federal employers to hire and retain such employees. (b) Eligible Employees.— For purposes of this section, an eligible employee is an employee of the Department of Defense, serving under an appointment without time limitation, who has been employed by the Department of Defense for a continuous period of at least 12 months and who has been given notice of separation pursuant to a reduction in force, except that such term does not include— (1) a reemployed annuitant under subchapter III of chapter 83 of title 5, United States Code, chapter 84 of such title, or another retirement system for employees of the Government; (2) an employee who, upon separation from Federal service, is eligible for an immediate annuity under subchapter III of 108 STAT. 2726chapter 83 of title 5, United States Code, or subchapter II of chapter 84 of such title; or (3) an employee who is eligible for disability retirement under any of the retirement systems referred to in paragraph (1). (c) Retraining Incentive.— (1) Under the pilot program, the Secretary may enter into an agreement with a non-Federal employer under which the non-Federal employer agrees— (A) to employ a person referred to in subsection (a) for at least 12 months for a salary which is mutually agreeable to the employer and such person; and (B) to certify to the Secretary the cost incurred by the employer for any necessary training provided to such person in connection with the employment by that employer. (2) The Secretary shall pay a retraining incentive to the non-Federal employer upon the employee’s completion of 12 months of continuous employment by that employer. Subject to subsection (f), the Secretary shall prescribe the amount of the incentive. (3) The Secretary shall pay a prorated amount of the full retraining incentive to the non-Federal employer for an employee who does not remain employed by the non-Federal employer for at least 12 months. (4) In no event may the amount of the retraining incentive paid for the training of any one person under the pilot program exceed the amount certified for that person under paragraph (1). (d) Relocation Incentive.— The Secretary may pay a relocation incentive to an eligible employee if it is necessary for the employee to relocate in order to commence employment with a non-Federal employer under the pilot program. Subject to subsection (f), the amount of the incentive shall be equal to the total amount authorized to be paid for travel, transportation, and subsistence expenses under subchapter II of chapter 57 of title 5, United States Code, including the reimbursements authorized under section 5724b of such title, to a Federal employee being transferred between the same locations as the person paid the incentive. (e) Approval of Secretary of Defense.— The Secretary of a military department or the head of a Defense Agency may offer an incentive under the pilot program with the prior approval of the Secretary of Defense or pursuant to a delegation of authority by the Secretary of Defense. (f) Limitation.— The total amount of incentives paid in the case of a person under the pilot program may not exceed $10,000. (g) Duration.— No incentive may be paid under the pilot program for training or relocations commenced after September 30, 1999. (h) Definitions.— In this section: (1) The term “non-Federal employer” means an employer that is not an Executive agency, as defined in section 105 of title 5, United States Code, or the legislative or judicial branch of the Federal Government. (2) The term “Defense Agency” has the meaning given such term in section 101(a)(11) of title 10, United States Code.