Federal Employee Placement and Retraining Act

Federal Employee Placement and Retraining Act - Directs the Office of Personnel Management (OPM) to establish and maintain a list for priority placement of certain civilian Department of Defense (DOD) employees who are notified of separation due to a major reduction in force and have not declined offers of employment for other DOD positions within their commuting area for which they qualify and which will not provide a cut in pay. Requires DOD to fill vacant positions within a particular commuting area with the individuals listed to be placed in positions in that particular area unless there are no such individuals who are qualified for such positions. Grants individuals listed for priority placement who apply for agency positions for which they are qualified priority over individuals not so listed. Terminates an individual's eligibility to remain on such a list: (1) six months after the individual's separation; (2) upon the request of an individual to have his or her name removed from the list; or (3) upon such an individual's acceptance of an offer of employment for an agency position for which he or she is qualified and which will not result in a cut in pay.

Requires the Secretary of Defense to file a certificate with the Administrator of OPM which identifies such DOD employees as eligible to apply for the following assistance made available under this title: (1) supplemental severance allowances; (2) supplemental wage allowance; (3) job search allowance; (4) relocation allowances; (5) job retraining programs; and (6) counseling, testing, and placement services and supportive and other employment services provided under any other Federal law. Entitles such employees to: (1) continued health insurance coverage while receiving severance pay if they pay the employee contributions required for such coverage; and (2) early retirement benefits.

Requires the Administrator to provide notice and information to such employees about such assistance and the application procedures. Authorizes payment of a supplemental severance allowance to such employees who meet specified conditions concerning the length of former DOD employment. Requires such employees to be enrolled in or have completed a job retraining program approved by the Administrator unless the Administrator or the State or a State agency determines that such a program is not feasible or appropriate. Sets forth amounts of such allowances payable, reduced by any payments received during approved retraining. Requires such payments to be coordinated with benefits provided under other Federal training programs. Provides supplemental wage allowances in lieu of supplemental severance allowances to adversely affected workers covered by such a certification who accept full-time employment at an average weekly wage that is less than their average weekly wage during DOD employment. Limits the dollar amounts of such supplemental allowances. Allows such workers to file applications with the Administrator to receive allowances to cover a certain amount of the expenses of searching and relocating for other employment, under certain conditions. Authorizes the Administrator to approve worker training under specified conditions and give priority to on-the-job training. Requires such benefits to be coordinated with other Federal training programs. Outlines other training program conditions, requirements, and limitations. Directs the Administrator to make every reasonable effort to secure for such workers the employment services made available under this Act.

Outlines provisions concerning: (1) agreements between the Administrator and a State for provision of such assistance; (2) the determination and provision of such assistance by the Administrator in the absence of any State agreement; (3) payments to States under an agreement concerning sums necessary to make such assistance payments to affected workers; (4) liabilities of certifying and disbursing officers; (5) fraud and the recovery of overpayments in the provision of such assistance; and (6) penalties in connection with the disclosure of false information to receive such assistance. Gives the Administrator subpoena power to make eligibility determinations under this Act.

Authorizes appropriations to OPM for FY 1990 through 1995 to carry out this Act.