To amend title 5, United States Code, with respect to setting rates of basic pay for law enforcement officers, and for other purposes.

Raises the minimum per annum rates of basic pay for entry level grades GS-3 through GS-10 for Federal law enforcement officers on a sliding scale with larger adjustments at the lower levels.

Directs the Office of Personnel Management (OPM) to prescribe regulations to: (1) readjust the rates of pay for such entry level grades every three years, based upon comparisons of State and local compensation for comparable work, in order to keep starting salaries of Federal law enforcement officers competitive with those paid to State and local law enforcement officers; and (2) establish a mechanism to adjust the rates of pay of Federal law enforcement officers serving in certain high cost-of-living areas in order to recruit and retain the best-qualified individuals. Sets forth procedures for identifying those regions for which higher pay rates are needed. Terminates a pay rate payable to Federal law enforcement officers that is based on a particular region if such an officer is transferred or reassigned to a place outside of such region. Requires pay rates established under this Act to be based on data compiled by the National Advisory Commission on Law Enforcement.

Directs the Bureau of Labor Statistics to survey State and local law enforcement salaries every three years to compile the data needed to carry out this Act.

Authorizes Federal agency heads, in order to retain highly qualified law enforcement officers who possess special skills or experience or whose continued services are particularly important due to factors associated with the geographic area to which they are assigned, to pay Federal law enforcement officers who are eligible for retirement an allowance of up to $10,000 per year provided the officers agree to complete at least one year of additional service in the agency involved.

Makes Federal law enforcement officers who are transferred to an area within the United States having higher than average housing costs eligible for a relocation payment of up to $20,000 provided they agree to remain in Federal law enforcement for a specified period.

Authorizes Federal agencies to offer rates of pay higher than the minimum rates for positions of GS-3 (currently, GS-11) or above if necessary to attract well qualified entry-candidates for Federal law enforcement service.

Authorizes Federal agencies to pay law enforcement officers who possess and make substantial use of foreign language proficiency while performing their official duties a cash award of up to 25 percent of basic pay.

Raises the mandatory age for Federal law enforcement officers to retire under the Civil Service and Federal Employees' Retirement Systems from 55 to 57.

Changes the method of computing overtime for Federal law enforcement officers to one and one-half times the hourly rate of basic pay for work performed in excess of 40 hours per week. Limits the aggregate rate of pay (including premium pay) for Federal law enforcement officers in a calendar year to the pay rate for level V of the Executive Schedule. Prohibits application of other limitations on premium pay for administratively uncontrollable overtime.

Excludes members of the U.S. Secret Service, Uniformed Division, Diplomatic Security Service special agents, postal inspectors, and pretrial services and probation officers from receiving premium pay except for night, Sunday, and holiday work.