To provide that a Federal annuitant or former member of a uniformed service who is appointed to serve as a temporary civilian employee at a military installation which has been designated for closure shall be exempt from the provisions of title 5, United States Code, relating to offset from pay and other benefits, and for other purposes.

Exempts from provisions relating to offset from pay and other benefits retired members of the uniformed services and Federal annuitants who are appointed to serve as temporary civilian employees at military installations which have been designated for closure under the Defense Authorization Amendments and Base Closure and Realignment Act and which have been designated as installations facing a serious recruitment or retention problem unless such members or employees were previously receiving reduced pay under such provisions. Limits the pay of individuals receiving such an exemption to the maximum rate of basic pay then currently payable for GS-12 of the General Schedule.

Directs the Office of Personnel Management to study and report to the Congress on whether any ongoing or recurring shortages of Government employees could be alleviated by enlisting the temporary services of retired Federal civilian or military personnel.