A bill making technical corrections relating to the Federal Employees' Retirement System, and for other purposes.

(Measure passed Senate, amended)

Title I: Amendments Relating to the Civil Service Retirement System and the Federal Employees' Retirement System - Amends provisions of the Civil Service Retirement System (CSRS) to provide for computing deposits for offset service for which retirement contributions were not withheld with respect to such service performed after December 31, 1986. (Offset service is subject to social security coverage and civil service retirement.)

Authorizes the head of an agency to determine and fix the maximum age limit for an original appointment to a position as a firefighter or law enforcement officer. Deletes the requirement for the President to designate an agent to concur in the fixing of such age limits.

Makes such members of the United States Park Police and the Uniformed Division of the Secret Service who are excluded from coverage under the District of Columbia Police and Firefighters' Retirement System eligible for law enforcement officer benefits under the Federal Employee Retirement System (FERS).

Provides that a law enforcement officer or firefighter who is transferred to a supervisory or administrative position must have performed other law enforcement duties for at least three years.

Provides offsets with respect to retirement coverage for employees of the United States Secret Service or the United States Park Police whose pay is simultaneously subject to a deposit requirement under the District of Columbia Police and Firefighters' Retirement System and social security.

Authorizes survivors of deceased employees or Members of Congress to make military service deposits under FERS for the purpose of survivor annuities.

Declares that a deposit to FERS for service covered by a refund from CSRS may be permitted only if such refund was pursuant to an application filed with the Office of Personnel Management before the employee became subject to FERS.

Authorizes partial refunds of contributions made under CSRS for service which subsequently becomes creditable under FERS.

Amends the Federal Employees' Retirement System Act of 1986 to permit certain employees (generally temporary, indefinite, and term appointments) to elect FERS coverage.

Makes certain CSRS service creditable for determining a higher accrual rate for transferees to FERS.

Declares that certain non-Federal employees who are eligible for service credit under CSRS and benefits under the Federal Employees Group Life Insurance Program and the Federal Employees' Health Benefits Plan shall no longer be entitled to such coverage and benefits after October 1, 1988. Establishes offset provisions for such employees who are subject to social security and CSRS deductions and who were hired after December 31, 1983.

Continues coverage under CSRS, Federal life insurance, and Federal health insurance for employees of Saint Elizabeths Hospital who were appointed to a position in the government of the District of Columbia due to the Federal Government's transfer of such hospital to the District of Columbia.

Provides credit for service under CSRS for certain employees hired under personal service contracts and who performed such service before November 5, 1985. Specifies that retirement credit will not be extended to employees of: (1) a contract that could be terminated by a party other than the individual or the Government; or (2) a contract for a single transaction or under which services are paid for in a single payment.

Excludes foreign service nationals from participation in the Thrift Savings Plan, CSRS (if appointed after December 31, 1987) and FERS.

Declares that certain one-time retroactive contributions to the Thrift Savings Plan shall not be taken into account for purposes of applying Internal Revenue Code limitations.

Provides that the automatic contribution to the Thrift Savings Plan by the employing agency is not forfeited in the case of an employee who dies prior to completing the required period of service. Provides that such automatic contribution is not subject to legal process for the enforcement of child support or alimony payments unless such contribution is nonforfeitable.

Provides for administrative expenses of the Thrift Savings Plan to be paid from earnings on all contributions.

Excludes from the age-based reduction under CSRS that portion of an annuity made subject to reduction under FERS.

Provides for interest on refunds of excess CSRS contributions made by employees who elect to transfer to FERS and by certain employees who elect to become subject to CSRS offsets for social security.

Establishes the effective date of the final merit increase under the performance management and recognition system for certain supervisory and management employees of Saint Elizabeths Hospital.

Establishes a deadline for agency contributions to the Thrift Savings Plan per pay period.

Provides for an individual's actual social security disability benefit to be used to determine the appropriate FERS offset. Revises the method for redetermining a FERS disability annuity at age 62. Provides for taking into account cost of living adjustments in computing such FERS annuities.

Declares that the fund balance of the Civil Service Retirement and Disability Fund does not include any amount attributable to FERS or contributions made under the Federal Employees' Retirement Contribution Temporary Adjustment Act of 1983.

Provides that an individual is not entitled to receive both a workers' compensation benefit and a concurrent FERS annuity based on that individual's own service. Provides that a survivor may not receive a FERS survivor annuity and a workers' compensation benefit based on the same individual's death.

Requires the Executive Director of the Thrift Saving Plan to prescribe regulations for participation in the Plan by the following participants in CSRS or FERS: (1) an individual who has entered on approved leave without pay to serve as a full-time officer or employee of an organization composed primarily of Federal employees; (2) an individual assigned from a Federal agency to a State or local government; (3) an individual appointed or otherwise assigned to one of the cooperative extension services; and (4) certain other non-Federal employees who are eligible for CSRS service credit, life insurance, and health benefits.

Includes the special pay of Veterans Administration physicians and dentists in such individual's average salary under FERS.

Amends the Civil Service Retirement Spouse Equity Act of 1984 to extend the deadline from May 7, 1987, to May 7, 1989, for certain former spouses to apply for survivor benefits under such Act.

Provides for refunding certain excess deductions taken after December 31, 1983, to employees who became subject to the CSRS offset provision by statute.

Requires the Thrift Investment Board to provide for automatic adjustments in the amount of the annuity payable so long as the amount of the annuity payable in any one year is not less than such amount for the previous year.

Requires participants in the Forest Service Pension System to be covered by FERS.

Provides options to FERS employees with respect to survivors annuities.

Requires loans from employee contributions to the Thrift Savings Fund to be available to all eligible employees.

Revises fiduciary responsibilities and liabilities in the management of the Thrift Savings Fund. Provides for the indemnification of the fiduciaries of the Thrift Investment Board.

Revises provisions concerning the reemployment of annuitants.

Designates the U.S. Post Office building on Nueces Bay Boulevard, Corpus Christi, Texas, as the Dr. Hector Perez Garcia Post Office Building.

Extends to certain employees and retirees of the Alaska Railroad coverage under the Federal health and life insurance programs.

Extends, from January 1, 1985, to January 1, 1999, the authority of the Secretary of Transportation and the Postal Service to contract for the transportation of mail by air in Alaska. Sets forth requirements for the Postal Service regarding the selection of carriers for, and the provision of, non-priority bypass mail in Alaska.

Title II: Foreign Service Retirement - Amends the Foreign Service Act of 1980 to entitle qualified former spouses of Foreign Service members to specified benefits under the Civil Service Retirement Spouse Equity Act of 1984. Defines a qualified former spouse as: (1) a former spouse of an individual who has performed at least 18 months of civilian service as a Foreign Service employee; and (2) a former spouse married to such individual for at least nine months but not more than ten years. Requires the regulations implementing such entitlement to be submitted to specified congressional committees. Prohibits such regulations from taking effect until 60 days after submission to the Congress.

Permits a former Foreign Service member who married his or her current spouse after retirement but before the effective date of the Foreign Service Act of 1980 to elect to provide survivor benefits for such current spouse. Requires the retiree to reduce his or her annuity and to deposit amounts equivalent to such reduction as of commencement of the annuity, plus six percent interest.

Provides survivor benefits to former spouses of Foreign Service members who were divorced from such members prior to February 15, 1981. Allows health insurance benefits to former spouses who were divorced prior to May 7, 1985.

Reduces from one year to nine months the minimum time that a former spouse must be married to a Foreign Service member to qualify for survivor benefits.

Provides that when an employee has received a refund of contributions to the Foreign Service Retirement and Disability Fund, any redeposit of such refund must include interest.

Extends from 12 months to 24 months the time following a divorce during which a Foreign Service participant and the former spouse may jointly elect to waive survivor benefits.

Provides for paying children's survivor benefits at a lower rate if there is a surviving former spouse who is the parent of the surviving child.

Provides for calculating disability retirement and death in service benefits as if the employee had been able to serve until age 60 (Currently, age 65).

Requires a participant in the Foreign Service Retirement System to have served at least five years under such system before being allowed to voluntarily retire. Allows such participant who has not served the five years and who was a former civil service participant to transfer all contributions to the Civil Service Retirement and Disability System and retire under that system.

Requires an individual to be married to a Foreign Service participant for at least five years while the employee was in the Foreign Service in order to qualify as a former spouse. Extends from 12 months to 24 months the time period following a divorce during which a court order relating to the participants' annuity may be issued.

Specifies procedures for a participant to be entitled to a lump sum payment of retirement contributions.

Codifies executive order provisions with respect to cost-of-living adjustments.

Establishes a definition of lump-sum credit for the Foreign Service Pension System to conform to such definition under FERS.

Requires that a full normal cost contribution be made to the Foreign Service Retirement and Disability Fund for a participant who serves in the Office of a Member of Congress or any other congressional office while on approved leave without pay from the Foreign Service.