WASHINGTON, DC 20415-0001

SEP 14 2001

The Honorable David S. C. Chu
Under Secretary of Defense
for Personnel and Readiness
4000 Defense Pentagon
Washington, DC 20301-4000

Dear Mr. Chu:

This responds to your request on behalf of the Secretary of Defense for authorities to help you rehire former Federal employees in the wake of attacks on the World Trade Center and the Pentagon. I am privileged to grant your request.

You may use the following delegation and waivers on a case-by-case basis when needed to fill temporary positions established to respond to the attacks of September 11, 2001. At your request, the Associate Director for Employment may extend the duration of these waivers, and may add coverage for any similar subsequent situations.

Delegation of Authority to Waive Dual Compensation Reductions

Relevant laws and regulations allow us to delegate authority to a headquarters official to waive dual compensation limits for temporary positions "only if, and for so long as, the authority is necessary due to an emergency involving a direct threat to life and property or other unusual circumstances " (5 U.S.C. 8344 and 8468; 5 C.F.R. part 553). Accordingly this delegated authority is subject to the following conditions:
  1. You may redelegate this authority to senior officials of the Department of Defense familiar with problems in staffing temporary positions that execute security, rescue, investigative and directly related functions as required to take urgent actions and further protect our country.

  2. You may approve requests for waivers on a case-by-case basis only for temporary positions with not-to-exceed dates of September 30, 2002.

  3. The annuitant must have declined on offer to take the position without a waiver.

  4. Your approvals must be in writing (e-mail is acceptable) and include the following:

    • The annuitant's full name, civil service retirement number and his or her statement declining employment without a waiver;
    • The position's title, series, pay plan, grade, NTE date and location; and
    • A brief statement describing how the position's duties directly and solely support your response to the attacks.

  5. You must maintain a record of each approval and make these records available to the Office of Personnel Management (OPM) upon request for 3 years following the approval date.

Waiver of Repayment of Voluntary Separation Incentive Payments

For the effort to provide security, rescue, investigative, and directly related functions associated with the attacks on the World Trade Center and the Pentagon, you are also granted a waiver for the repayment of Voluntary Separation Incentive Payments (VSIP). This allows the Department of Defense to temporarily rehire, without repayment of VSIP funds, those former Federal employees who perform critical specialized work in direct support of the situation described above.

Your waiver covers any former Federal employee who received a VSIP within the last 5 years under an authority that permits OPM to waive the VSIP repayment requirement under 5 CFR Part 576 of OPM's regulations. Please be aware that several non-Defense buyouts, such as buyouts under Public Law 104-208, did not provide the VSIP repayment waiver option.

Within 60 days after the expiration date of this waiver, you must submit a report to OPM identifying: (1) the name, grade, title, and classification series of each employee covered by this waiver; (2) the period the employee worked under this waiver; (3) the reason(s) why the employee was essential to this effort, and (4) the name and location of the agency that paid the VSIP to the employee, as well as the statute under which the VSIP was paid.

These delegations and waivers are effective on the date of this letter. Unless extended by OPM, these delegations and waivers expire September 30, 2002. Individual waivers apply only while the employee is in the position for which you grant the waiver. Please direct questions on the use of these authorities to Larry Lorenz at (202) 606-1143, for waiver of salary offset; or Charles Gray at 202-606-2174, for VSIP waiver.


//original signed//
Kay Coles James