Federal Employees' Optional Early Retirement Act

Federal Employees' Optional Early Retirement Act - Authorizes early retirement during the 60-day period beginning 30 days after enactment of this Act for certain Federal employees after: (1) completing 25 years of service; (2) becoming 50 years of age and completing 20 years of service; (3) becoming 55 years of age and completing 15 years of service; or (4) becoming 57 years of age and completing five years of service. Specifies those employees who are not eligible for such retirement. Subjects such retirement annuities to the applicable reduction for employees who retire under the age of 55.

Directs the President to extend the early retirement provisions of this Act to: (1) participants in the Central Intelligence Agency Retirement and Disability System; (2) participants in the Foreign Service Retirement and Disability System; and (3) if determined appropriate, employees of the executive branch who are participants in any other Federal retirement system.

Authorizes the President to exempt employees from early retirement provisions in cases of essential occupational categories, projects, or locations.

Authorizes the head of an executive agency to hold over essential employees who are entitled to early retirement for a period not to exceed six months.

Establishes a five-year hiring limitation period for the replacement of retirees. Authorizes the President to waive the application of such hiring limitation in cases of essential positions and for positions financed by user fees. Declares such hiring limitation inapplicable to postal employees, certain reinstatements, certain transfers, and periods of war or national emergency.

Directs the President to ensure that there is no increase in contract procurement of personal services by reason of enactment of this Act.

Requires that the savings in any fiscal year resulting from provisions of this Act be credited to personnel costs required to be sequestered under the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act).

Requires the Director of the Office of Personnel Management to report to the Congress on an evaluation of the optional early retirement program and the limitation on the replacement of retirees.

Requires congressional committees to report to their respective Houses revised allocations and budget aggregates resulting from this Act.