Title I: Description of Retirement Coverage Errors to Which This Act Applies and Measures for Their Rectification - Subtitle A: Employees and Annuitants Who Should Have Been FERS Covered, but Who Were Erroneously CSRS Covered or CSRS-Offset Covered Instead, and Survivors of Such Employees and Annuitants - Permits any Federal employee or former employee, who should be (or should have been) Federal Employees' Retirement System (FERS) covered, but who is erroneously CSRS (Civil Service Retirement System) covered or CSRS-Offset covered instead, to elect to: (1) be FERS covered instead; or (2) remain or instead become CSRS-Offset covered. Permits an employee affected by such an error that has been corrected to elect to be CSRS-Offset covered instead.
Authorizes, if an individual elects to be CSRS-Offset covered, all employee contributions to the Thrift Savings Fund (TSF) made during the period of FERS coverage, and any earnings, to remain in the TSF. Makes ineligible for elections under this paragraph individuals who: (1) received a payment ordered by a court or provided as a settlement of claim for losses resulting from a retirement coverage error unless such payment is waived or repaid; or (2) received a refund of retirement deductions or distribution under specified Federal civil service provisions.
(Sec. 102) Permits annuitants (and survivors of employees) who should have been FERS covered but were erroneously CSRS covered or CSRS-Offset covered to elect CSRS-Offset or FERS coverage. Provides for a reduced annuity for annuitants or survivors who elect CSRS- Offset coverage. Sets forth requirements parallel to those for employees with respect to previously-received settlement payments. Provides for CSRS-Offset coverage for annuitants or survivors who do not make elections and for whom corrective action was not taken before any time limitation prescribed by this Act.
Subtitle B: Employee Who Should Have Been FERS Covered, CSRS-Offset Covered, or CSRS Covered, but Who Was Erroneously Social Security-Only Covered Instead - Requires employees who should be (or should have been) FERS, CSRS-Offset, or CSRS covered but are (or were) erroneously Social Security-Only covered to be covered under the correct retirement coverage effective as of the date of the coverage error. Provides that if the error has been corrected, the previous corrective action shall remain in effect.
Subtitle C: Employee Who Should or Could Have Been Social Security-Only Covered but Who Was Erroneously CSRS-Offset Covered or CSRS Covered Instead - Requires employees who should have been Social Security-Only covered but were erroneously CSRS covered to be CSRS- Offset covered, subject to a right of election. Permits such individuals to elect CSRS-Offset or Social-Security-Only coverage. Requires individuals who do not make an election to remain CSRS-Offset covered. Directs the Office of Personnel Management (OPM) to promulgate regulations authorizing individuals to elect CSRS-Offset or Social Security-Only coverage if an error was previously corrected.
Subtitle D: Employee Who Was Erroneously FERS Covered - Authorizes FERS-ineligible employees who should have been Social Security-Only, CSRS, or CSRS-Offset covered and were erroneously FERS covered to elect to remain FERS covered or be covered under the coverage that would have applied in the absence of the error. Requires individuals who do not make an election to remain FERS covered.
Permits contributions to the TSF made during the period of erroneous FERS coverage and all earnings to remain in the TSF in the case of employees who elect coverage other than FERS.
Requires OPM to promulgate regulations authorizing individuals covered by this subtitle to make elections if an error was previously corrected.
(Sec. 132) Sets forth provisions regarding individuals who were prevented from electing FERS coverage as a result of being erroneously FERS covered.
(Sec. 133) Makes this subtitle effective as of January 1, 1987.
Subtitle E: Employee Who Should Have Been CSRS-Offset Covered, but Who Was Erroneously CSRS Covered Instead - Requires employees who should be (or should have been) CSRS-Offset covered but are (or were) erroneously CSRS covered to be covered under the correct coverage effective as of the date of the error.
Subtitle F: Employee Who Should Have Been CSRS Covered, but Who Was Erroneously CSRS-Offset Covered Instead - Requires employees who should be (or should have been) CSRS covered but are (or were) erroneously CSRS-Offset covered to be covered under the correct coverage effective as of the date of the error.
Title II: General Provisions - Directs Government agencies to take appropriate measures to promptly identify and notify individuals affected by a retirement coverage error of their rights under this Act.
(Sec. 203) Sets forth requirements with respect to service credit deposits in cases where: (1) a FERS covered employee was erroneously CSRS or CSRS-Offset covered and made a service credit deposit under CSRS and there was a subsequent retroactive change to FERS coverage; or (2) an employee owed a service credit deposit, there is a subsequent retroactive change to CSRS or CSRS-Offset coverage, or the service becomes creditable.
(Sec. 205) Sets forth provisions regarding TSF treatment for individuals erroneously not covered as a FERS employee who make or have made retroactive employee contributions to the TSF. Provides for an alternative calculation of lost earnings due to erroneous coverage.
(Sec. 207) Bars an agency from placing an individual under CSRS coverage unless: (1) the individual has been employed with such coverage within the preceding 365 days; or (2) OPM has agreed that the agency's coverage determination is correct.
(Sec. 208) Authorizes the OPM Director to: (1) extend deadlines for making elections under certain circumstances; (2) reimburse expenses incurred by an individual with respect to settlement of a claim for losses resulting from a coverage error; (3) compensate an individual for monetary losses that are a direct and proximate result of such an error, excluding claimed losses relating to foregone contributions and earnings under the Thrift Savings Plan (TSP) and other investment opportunities; and (4) waive payments otherwise required by this Act.
Title III: General Provisions - Provides for conformity with this Act of the Foreign Service and Central Intelligence Agency retirement systems.
Title IV: Tax Provisions - Provides that no Federal retirement plan shall fail to be treated as a qualified plan under the Internal Revenue Code by reason of: (1) any failure to follow plan terms as addressed by this Act; or (2) any action taken under this Act.
Excludes from individual gross income any amount attributable to a direct transfer under this Act between funds or any Government contribution to any fund or account.
Title V: Miscellaneous Retirement Provisions - Includes as creditable service of a Federal employee or Member of Congress for purposes of FERS provisions a period of service (other than any service already creditable under FERS, any military service, and any service performed in the employ of a Federal Reserve Bank) that was creditable under the Bank Plan (the benefit structure in which employees of the Board of Governors of the Federal Reserve System appointed on or after January 1, 1984, participate), if the employee waives credit for such service under the Bank Plan and makes a payment to the TSF equal to the amount that would have been deducted from pay had the employee been subject to FERS during such period of service (together with interest on such amount computed).
Excludes from participation in FERS any employee or Member who has separated from civilian service after having been subject to the benefit structure for employees of the Board appointed before January 1, 1984, and having at least five years of civilian service (other than any service performed in the employ of a Federal Reserve Bank) creditable under such benefit structure, except for such persons who subsequently enter a position subject to FERS provisions.
Makes provisions regarding creditability and certain former Board employees applicable only to individuals who separate from service subject to FERS on or after the date of enactment of this Act.
(Sec. 502) Treats as a separation from Government employment, for purposes of the TSP, any transfer from a position that is subject to FERS, CSRS, or any other retirement system under which individuals may contribute to the TSF through withholdings from pay, to a position that is not subject to any of them.
Applies the amendments made by this section to transfers occurring before, on, or after this Act's enactment date. Considers, for transfers occurring before this Act's enactment, the date of transfer to be this Act's enactment date.
Title VI: Effective Date - Sets forth the effective date of this Act.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1232 Introduced in Senate (IS)]
106th CONGRESS
1st Session
S. 1232
To provide for the correction of retirement coverage errors under
chapters 83 and 84 of title 5, United States Code.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 17, 1999
Mr. Cochran (for himself and Mr. Akaka) introduced the following bill;
which was read twice and referred to the Committee on Governmental
Affairs
_______________________________________________________________________
A BILL
To provide for the correction of retirement coverage errors under
chapters 83 and 84 of title 5, United States Code.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Federal Erroneous
Retirement Coverage Corrections Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Applicability.
Sec. 4. Irrevocability of elections.
TITLE I--DESCRIPTION OF RETIREMENT COVERAGE ERRORS TO WHICH THIS ACT
APPLIES AND MEASURES FOR THEIR RECTIFICATION
Subtitle A--Employees and Annuitants Who Should Have Been FERS Covered,
but Who Were Erroneously CSRS Covered or CSRS-Offset Covered Instead,
and Survivors of Such Employees and Annuitants
Sec. 101. Employees.
Sec. 102. Annuitants and survivors.
Subtitle B--Employee Who Should Have Been FERS Covered, CSRS-Offset
Covered, or CSRS Covered, but Who Was Erroneously Social Security-Only
Covered Instead
Sec. 111. Applicability.
Sec. 112. Correction mandatory.
Subtitle C--Employee Who Should or Could Have Been Social Security-Only
Covered but Who Was Erroneously CSRS-Offset Covered or CSRS Covered
Instead
Sec. 121. Employee who should be Social Security-Only covered, but who
is erroneously CSRS or CSRS-Offset covered
instead.
Subtitle D--Employee Who Was Erroneously FERS Covered.
Sec. 131. Employee who should be Social Security-Only covered, CSRS
covered, or CSRS-Offset covered and is not
FERS-eligible, but who is erroneously FERS
covered instead.
Sec. 132. FERS-Eligible Employee Who Should Have Been CSRS Covered,
CSRS-Offset Covered, or Social Security-
Only Covered, but Who Was Erroneously FERS
Covered Instead Without an Election.
Sec. 133. Retroactive effect.
Subtitle E--Employee Who Should Have Been CSRS-Offset Covered, but Who
Was Erroneously CSRS Covered Instead
Sec. 141. Applicability.
Sec. 142. Correction mandatory.
Subtitle F--Employee Who Should Have Been CSRS Covered, but Who Was
Erroneously CSRS-Offset Covered Instead
Sec. 151. Applicability.
Sec. 152. Correction mandatory.
TITLE II--GENERAL PROVISIONS
Sec. 201. Identification and notification requirements.
Sec. 202. Information to be furnished to and by authorities
administering this Act.
Sec. 203. Service credit deposits.
Sec. 204. Provisions related to Social Security coverage of
misclassified employees.
Sec. 205. Thrift Savings Plan treatment for certain individuals.
Sec. 206. Certain agency amounts to be paid into or remain in the
CSRDF.
Sec. 207. CSRS coverage determinations to be approved by OPM.
Sec. 208. Discretionary actions by Director.
Sec. 209. Regulations.
TITLE III--OTHER PROVISIONS
Sec. 301. Provisions to permit continued conformity of other Federal
retirement systems.
Sec. 302. Authorization and appropriation.
Sec. 303. Individual right of action preserved for amounts not
otherwise provided for under this Act.
Sec. 304. Effective date.
TITLE IV--TAX PROVISIONS
Sec. 401. Tax provisions.
TITLE V--MISCELLANEOUS RETIREMENT PROVISIONS
Sec. 501. Federal Reserve Board portability of service credit.
Sec. 502. Certain transfers to be treated as a separation from service
for purposes of the Thrift Savings Plan.
SEC. 2. DEFINITIONS.
For purposes of this Act:
(1) Annuitant.--The term ``annuitant'' has the meaning
given such term under section 8331(9) or 8401(2) of title 5,
United States Code.
(2) CSRS.--The term ``CSRS'' means the Civil Service
Retirement System.
(3) CSRDF.--The term ``CSRDF'' means the Civil Service
Retirement and Disability Fund.
(4) CSRS covered.--The term ``CSRS covered'', with respect
to any service, means service that is subject to the provisions
of subchapter III of chapter 83 of title 5, United States Code,
other than service subject to section 8334(k) of such title.
(5) CSRS-offset covered.--The term ``CSRS-Offset covered'',
with respect to any service, means service that is subject to
the provisions of subchapter III of chapter 83 of title 5,
United States Code, and to section 8334(k) of such title.
(6) Executive director.--The term ``Executive Director of
the Federal Retirement Thrift Investment Board'' or ``Executive
Director'' means the Executive Director appointed under section
8474 of title 5, United States Code.
(7) FERS.--The term ``FERS'' means the Federal Employees'
Retirement System.
(8) FERS covered.--The term ``FERS covered'', with respect
to any service, means service that is subject to chapter 84 of
title 5, United States Code.
(9) Former employee.--The term ``former employee'' means an
individual who formerly was a Government employee, but who is
not an annuitant.
(10) OASDI taxes.--The term ``OASDI taxes'' means the OASDI
employee tax and the OASDI employer tax.
(11) OASDI employee tax.--The term ``OASDI employee tax''
means the tax imposed under section 3101(a) of the Internal
Revenue Code of 1986 (relating to Old-Age, Survivors and
Disability Insurance).
(12) OASDI employer tax.--The term ``OASDI employer tax''
means the tax imposed under section 3111(a) of the Internal
Revenue Code of 1986 (relating to Old-Age, Survivors and
Disability Insurance).
(13) OASDI trust funds.--The term ``OASDI trust funds''
means the Federal Old-Age and Survivors Insurance Trust Fund
and the Federal Disability Insurance Trust Fund.
(14) Office.--The term ``Office'' means the Office of
Personnel Management.
(15) Retirement coverage determination.--The term
``retirement coverage determination'' means a determination by
an employee or agent of the Government as to whether a
particular type of Government service is CSRS covered, CSRS-
Offset covered, FERS covered, or Social Security-Only covered.
(16) Retirement coverage error.--The term ``retirement
coverage error'' means an erroneous retirement coverage
determination that was in effect for a minimum period of 3
years of service after December 31, 1986.
(17) Social security-only covered.--The term ``Social
Security-Only covered'', with respect to any service, means
Government service that--
(A) constitutes employment under section 210 of the
Social Security Act (42 U.S.C. 410); and
(B)(i) is subject to OASDI taxes; but
(ii) is not subject to CSRS or FERS.
(18) Survivor.--The term ``survivor'' has the meaning given
such term under section 8331(10) or 8401(28) of title 5, United
States Code.
(19) Thrift savings fund.--The term ``Thrift Savings Fund''
means the Thrift Savings Fund established under section 8437 of
title 5, United States Code.
SEC. 3. APPLICABILITY.
(a) In General.--This Act shall apply with respect to retirement
coverage errors that occur before, on, or after the date of enactment
of this Act.
(b) Limitation.--Except as otherwise provided in this Act, this Act
shall not apply to any erroneous retirement coverage determination that
was in effect for a period of less than 3 years of service after
December 31, 1986.
SEC. 4. IRREVOCABILITY OF ELECTIONS.
Any election made (or deemed to have been made) by an employee or
any other individual under this Act shall be irrevocable.
TITLE I--DESCRIPTION OF RETIREMENT COVERAGE ERRORS TO WHICH THIS ACT
APPLIES AND MEASURES FOR THEIR RECTIFICATION
Subtitle A--Employees and Annuitants Who Should Have Been FERS Covered,
but Who Were Erroneously CSRS Covered or CSRS-Offset Covered Instead,
and Survivors of Such Employees and Annuitants
SEC. 101. EMPLOYEES.
(a) Applicability.--This section shall apply in the case of any
employee or former employee who should be (or should have been) FERS
covered but, as a result of a retirement coverage error, is (or was)
CSRS covered or CSRS-Offset covered instead.
(b) Uncorrected Error.--
(1) Applicability.--This subsection applies if the
retirement coverage error has not been corrected before the
effective date of the regulations described under paragraph
(3). As soon as practicable after discovery of the error, and
subject to the right of an election under paragraph (2), if
CSRS covered or CSRS-Offset covered, such individual shall be
treated as CSRS-Offset covered, retroactive to the date of the
retirement coverage error.
(2) Coverage.--
(A) Election.--Upon written notice of a retirement
coverage error, an individual may elect to be CSRS-
Offset covered or FERS covered, effective as of the
date of the retirement coverage error. Such election
shall be made not later than 180 days after the date of
receipt of such notice.
(B) Nonelection.--If the individual does not make
an election by the date provided under subparagraph
(A), a CSRS-Offset covered individual shall remain
CSRS-Offset covered and a CSRS covered individual shall
be treated as CSRS-Offset covered.
(3) Regulations.--The Office shall promulgate regulations
to carry out this subsection.
(c) Corrected Error.--
(1) Applicability.--This subsection applies if the
retirement coverage error was corrected before the effective
date of the regulations described under subsection (b).
(2) Coverage.--
(A) Election.--
(i) CSRS-offset covered.--Not later than
180 days after the date of enactment of this
Act, the Office shall promulgate regulations
authorizing individuals to elect, during the
18-month period immediately following the
effective date of such regulations, to be CSRS-
Offset covered, effective as of the date of the
retirement coverage error.
(ii) Thrift savings fund contributions.--If
an individual elects to be CSRS-Offset covered,
all employee contributions to the Thrift
Savings Fund made during the period of FERS
coverage, and earnings thereon, may remain in
that Fund, notwithstanding any limit that would
otherwise be applicable.
(B) Previous settlement payment.--An individual who
previously received a payment ordered by a court or
provided as a settlement of claim for losses resulting
from a retirement coverage error shall not be entitled
to make an election under this subsection unless that
amount is waived in whole or in part under section 208,
and any amount not waived is repaid.
(C) Ineligibility for election.--An individual who,
subsequent to correction of the retirement coverage
error, received a refund of retirement deductions under
section 8424 of title 5, United States Code, or a
distribution under section 8433 of title 5, United
States Code, may not make an election under this
subsection.
(3) Corrective action to remain in effect.--If an
individual is ineligible to make an election or does not make
an election under paragraph (2) before the end of any time
limitation under this subsection, the corrective action taken
before such time limitation shall remain in effect.
SEC. 102. ANNUITANTS AND SURVIVORS.
(a) In General.--This section shall apply in the case of an
individual who is--
(1) an annuitant who should have been FERS covered but, as
a result of a retirement coverage error, was CSRS covered or
CSRS-Offset covered instead; or
(2) a survivor of an employee who should have been FERS
covered but, as a result of a retirement coverage error, was
CSRS covered or CSRS-Offset covered instead.
(b) Coverage.--
(1) Election.--Not later than 180 days after the date of
enactment of this Act, the Office shall promulgate regulations
authorizing an individual described under subsection (a) to
elect CSRS-Offset coverage or FERS coverage, effective as of
the date of the retirement coverage error.
(2) Time limitation.--An election under this subsection
shall be made not later than 18 months after the effective date
of the regulations promulgated under paragraph (1).
(3) Reduced annuity.--
(A) Amount in account.--If the individual elects
CSRS-Offset coverage, the amount in the employee's
Thrift Savings Fund account under subchapter III of
chapter 84 of title 5, United States Code, on the date
of retirement that represents the Government's
contributions and earnings on those contributions
(whether or not such amount was subsequently
distributed from the Thrift Savings Fund) will form the
basis for a reduction in the individual's annuity,
under regulations promulgated by the Office.
(B) Reduction.--The reduced annuity to which the
individual is entitled shall be equal to an amount
which, when taken together with the amount referred to
in subparagraph (A), would result in the present value
of the total being actuarially equivalent to the
present value of an unreduced CSRS-Offset annuity that
would have been provided the individual.
(4) Reduced benefit.--If--
(A) a surviving spouse elects CSRS-Offset benefits;
and
(B) a FERS basic employee death benefit under
section 8442(b) of title 5, United States Code, was
previously paid;
then the survivor's CSRS-Offset benefit shall be subject to a
reduction, under regulations promulgated by the Office. The
reduced annuity to which the individual is entitled shall be
equal to an amount which, when taken together with the amount
of the payment referred to under subparagraph (B) would result
in the present value of the total being actuarially equivalent
to the present value of an unreduced CSRS-Offset annuity that
would have been provided the individual.
(5) Previous settlement payment.--An individual who
previously received a payment ordered by a court or provided as
a settlement of claim for losses resulting from a retirement
coverage error may not make an election under this subsection
unless repayment of that amount is waived in whole or in part
under section 208, and any amount not waived is repaid.
(c) Nonelection.--If the individual does not make an election under
subsection (b) before any time limitation under this section, the
retirement coverage shall be subject to the following rules:
(1) Corrective action previously taken.--If corrective
action was taken before the end of any time limitation under
this section, that corrective action shall remain in effect.
(2) Corrective action not previously taken.--If corrective
action was not taken before such time limitation, the employee
shall be CSRS-Offset covered, retroactive to the date of the
retirement coverage error.
Subtitle B--Employee Who Should Have Been FERS Covered, CSRS-Offset
Covered, or CSRS Covered, but Who Was Erroneously Social Security-Only
Covered Instead
SEC. 111. APPLICABILITY.
This subtitle shall apply in the case of any employee who--
(1) should be (or should have been) FERS covered but, as a
result of a retirement coverage error, is (or was) Social
Security-Only covered instead;
(2) should be (or should have been) CSRS-Offset covered
but, as a result of a retirement coverage error, is (or was)
Social Security-Only covered instead; or
(3) should be (or should have been) CSRS covered but, as a
result of a retirement coverage error, is (or was) Social
Security-Only covered instead.
SEC. 112. CORRECTION MANDATORY.
(a) Uncorrected Error.--If the retirement coverage error has not
been corrected, as soon as practicable after discovery of the error,
such individual shall be covered under the correct retirement coverage,
effective as of the date of the retirement coverage error.
(b) Corrected Error.--If the retirement coverage error has been
corrected, the corrective action previously taken shall remain in
effect.
Subtitle C--Employee Who Should or Could Have Been Social Security-Only
Covered but Who Was Erroneously CSRS-Offset Covered or CSRS Covered
Instead
SEC. 121. EMPLOYEE WHO SHOULD BE SOCIAL SECURITY-ONLY COVERED, BUT WHO
IS ERRONEOUSLY CSRS OR CSRS-OFFSET COVERED INSTEAD.
(a) Applicability.--This section applies in the case of a
retirement coverage error in which a Social Security-Only covered
employee was erroneously CSRS covered or CSRS-Offset covered.
(b) Uncorrected Error.--
(1) Applicability.--This subsection applies if the
retirement coverage error has not been corrected before the
effective date of the regulations described in paragraph (3).
(2) Coverage.--In the case of an individual who is
erroneously CSRS covered, as soon as practicable after
discovery of the error, and subject to the right of an election
under paragraph (3), such individual shall be CSRS-Offset
covered, effective as of the date of the retirement coverage error.
(3) Election.--
(A) In general.--Upon written notice of a
retirement coverage error, an individual may elect to
be CSRS-Offset covered or Social Security-Only covered,
effective as of the date of the retirement coverage
error. Such election shall be made not later than 180
days after the date of receipt of such notice.
(B) Nonelection.--If the individual does not make
an election before the date provided under subparagraph
(A), the individual shall remain CSRS-Offset covered.
(C) Regulations.--The Office shall promulgate
regulations to carry out this paragraph.
(c) Corrected Error.--
(1) Applicability.--This subsection applies if the
retirement coverage error was corrected before the effective
date of the regulations described under subsection (b)(3).
(2) Election.--Not later than 180 days after the date of
enactment of this Act, the Office shall promulgate regulations
authorizing individuals to elect, during the 18-month period
immediately following the effective date of such regulations,
to be CSRS-Offset covered or Social Security-Only covered,
effective as of the date of the retirement coverage error.
(3) Nonelection.--If an eligible individual does not make
an election under paragraph (2) before the end of any time
limitation under this subsection, the corrective action taken
before such time limitation shall remain in effect.
Subtitle D--Employee Who Was Erroneously FERS Covered
SEC. 131. EMPLOYEE WHO SHOULD BE SOCIAL SECURITY-ONLY COVERED, CSRS
COVERED, OR CSRS-OFFSET COVERED AND IS NOT FERS-ELIGIBLE,
BUT WHO IS ERRONEOUSLY FERS COVERED INSTEAD.
(a) Applicability.--This section applies in the case of a
retirement coverage error in which a Social Security-Only covered, CSRS
covered, or CSRS-Offset covered employee not eligible to elect FERS
coverage under authority of section 8402(c) of title 5, United States
Code, was erroneously FERS covered.
(b) Uncorrected Error.--
(1) Applicability.--This subsection applies if the
retirement coverage error has not been corrected before the
effective date of the regulations described in paragraph (2).
(2) Coverage.--
(A) Election.--Upon written notice of a retirement
coverage error, an individual may elect to remain FERS
covered or to be Social Security-Only covered, CSRS
covered, or CSRS-Offset covered, as would have applied
in the absence of the erroneous retirement coverage
determination, effective as of the date of the
retirement coverage error. Such election shall be made
not later than 180 days after the date of receipt of
such notice.
(B) Nonelection.--If the individual does not make
an election before the date provided under subparagraph
(A), the individual shall remain FERS covered,
effective as of the date of the retirement coverage
error.
(3) Employee contributions in thrift savings fund.--If
under this section, an individual elects to be Social Security-
Only covered, CSRS covered, or CSRS-Offset covered, all
employee contributions to the Thrift Savings Fund made during
the period of erroneous FERS coverage (and all earnings on such
contributions) may remain in the Thrift Savings Fund in
accordance with regulations promulgated by the Executive
Director, notwithstanding any limit under section 8351 or 8432
of title 5, United States Code.
(4) Regulations.--Except as provided under paragraph (3),
the Office shall promulgate regulations to carry out this
subsection.
(c) Corrected Error.--
(1) Applicability.--This subsection applies if the
retirement coverage error was corrected before the effective
date of the regulations described under paragraph (2).
(2) Election.--Not later than 180 days after the date of
enactment of this Act, the Office shall promulgate regulations
authorizing individuals to elect, during the 18-month period
immediately following the effective date of such regulations to
remain Social Security-Only covered, CSRS covered, or CSRS-
Offset covered, or to be FERS covered, effective as of the date
of the retirement coverage error.
(3) Nonelection.--If an eligible individual does not make
an election under paragraph (2), the corrective action before
the end of any time limitation under this subsection shall
remain in effect.
SEC. 132. FERS-ELIGIBLE EMPLOYEE WHO SHOULD HAVE BEEN CSRS COVERED,
CSRS-OFFSET COVERED, OR SOCIAL SECURITY-ONLY COVERED, BUT
WHO WAS ERRONEOUSLY FERS COVERED INSTEAD WITHOUT AN
ELECTION.
(a) In General.--
(1) FERS election prevented.--If an individual was
prevented from electing FERS coverage because the individual
was erroneously FERS covered during the period when the
individual was eligible to elect FERS under title III of the
Federal Employees Retirement System Act or the Federal
Employees' Retirement System Open Enrollment Act of 1997
(Public Law 105-61; 111 Stat. 1318 et seq.), the individual--
(A) is deemed to have elected FERS coverage; and
(B) shall remain covered by FERS, unless the
individual declines, under regulations promulgated by
the Office, to be FERS covered.
(2) Declining fers coverage.--If an individual described
under paragraph (1)(B) declines to be FERS covered, such
individual shall be CSRS covered, CSRS-Offset covered, or
Social Security-Only covered, as would apply in the absence of a FERS
election, effective as of the date of the erroneous retirement coverage
determination.
(b) Employee Contributions in Thrift Savings Fund.--If under this
section, an individual declines to be FERS covered and instead is
Social Security-Only covered, CSRS covered, or CSRS-Offset covered, as
would apply in the absence of a FERS election, all employee
contributions to the Thrift Savings Fund made during the period of
erroneous FERS coverage (and all earnings on such contributions) may
remain in the Thrift Savings Fund in accordance with regulations
promulgated by the Executive Director, notwithstanding any limit that
would otherwise be applicable.
(c) Inapplicability of Duration of Erroneous Coverage.--This
section shall apply regardless of the length of time the erroneous
coverage determination remained in effect.
SEC. 133. RETROACTIVE EFFECT.
This subtitle shall be effective as of January 1, 1987, except that
section 132 shall not apply to individuals who made or were deemed to
have made elections similar to those provided in this section under
regulations promulgated by the Office before the effective date of this
Act.
Subtitle E--Employee Who Should Have Been CSRS-Offset Covered, but Who
Was Erroneously CSRS Covered Instead
SEC. 141. APPLICABILITY.
This subtitle shall apply in the case of any employee who should be
(or should have been) CSRS-Offset covered but, as a result of a
retirement coverage error, is (or was) CSRS covered instead.
SEC. 142. CORRECTION MANDATORY.
(a) Uncorrected Error.--If the retirement coverage error has not
been corrected, as soon as practicable after discovery of the error,
such individual shall be covered under the correct retirement coverage,
effective as of the date of the retirement coverage error.
(b) Corrected Error.--If the retirement coverage error has been
corrected before the effective date of this Act, the corrective action
taken before such date shall remain in effect.
Subtitle F--Employee Who Should Have Been CSRS Covered, but Who Was
Erroneously CSRS-Offset Covered Instead
SEC. 151. APPLICABILITY.
This subtitle shall apply in the case of any employee who should be
(or should have been) CSRS covered but, as a result of a retirement
coverage error, is (or was) CSRS-Offset covered instead.
SEC. 152. CORRECTION MANDATORY.
(a) Uncorrected Error.--If the retirement coverage error has not
been corrected, as soon as practicable after discovery of the error,
such individual shall be covered under the correct retirement coverage,
effective as of the date of the retirement coverage error.
(b) Corrected Error.--If the retirement coverage error has been
corrected before the effective date of this Act, the corrective action
taken before such date shall remain in effect.
TITLE II--GENERAL PROVISIONS
SEC. 201. IDENTIFICATION AND NOTIFICATION REQUIREMENTS.
Government agencies shall take all such measures as may be
reasonable and appropriate to promptly identify and notify individuals
who are (or have been) affected by a retirement coverage error of their
rights under this Act.
SEC. 202. INFORMATION TO BE FURNISHED TO AND BY AUTHORITIES
ADMINISTERING THIS ACT.
(a) Applicability.--The authorities identified in this subsection
are--
(1) the Director of the Office of Personnel Management;
(2) the Commissioner of Social Security; and
(3) the Executive Director of the Federal Retirement Thrift
Investment Board.
(b) Authority To Obtain Information.--Each authority identified in
subsection (a) may secure directly from any department or agency of the
United States information necessary to enable such authority to carry
out its responsibilities under this Act. Upon request of the authority
involved, the head of the department or agency involved shall furnish
that information to the requesting authority.
(c) Authority To Provide Information.--Each authority identified in
subsection (a) may provide directly to any department or agency of the
United States all information such authority believes necessary to
enable the department or agency to carry out its responsibilities under
this Act.
(d) Limitation; Safeguards.--Each of the respective authorities
under subsection (a) shall--
(1) request or provide only such information as that
authority considers necessary; and
(2) establish, by regulation or otherwise, appropriate
safeguards to ensure that any information obtained under this
section shall be used only for the purpose authorized.
SEC. 203. SERVICE CREDIT DEPOSITS.
(a) CSRS Deposit.--In the case of a retirement coverage error in
which--
(1) a FERS covered employee was erroneously CSRS covered or
CSRS-Offset covered;
(2) the employee made a service credit deposit under the
CSRS rules; and
(3) there is a subsequent retroactive change to FERS
coverage;
the excess of the amount of the CSRS civilian or military service
credit deposit over the FERS civilian or military service credit
deposit, together with interest computed in accordance with paragraphs
(2) and (3) of section 8334(e) of title 5, United States Code, and
regulations prescribed by the Office, shall be paid to the employee,
the annuitant or, in the case of a deceased employee, to the
individual entitled to lump-sum benefits under section 8342(c) or
8424(d) of title 5, United States Code, as applicable.
(b) FERS Deposit.--
(1) Applicability.--This subsection applies in the case of
an erroneous retirement coverage determination in which--
(A) the employee owed a service credit deposit
under section 8411(f) of title 5, United States Code;
and
(B)(i) there is a subsequent retroactive change to
CSRS or CSRS-Offset coverage; or
(ii) the service becomes creditable under chapter
83 of title 5, United States Code.
(2) Reduced annuity.--
(A) In general.--If at the time of commencement of
an annuity there is remaining unpaid CSRS civilian or
military service credit deposit for service described
under paragraph (1), the annuity shall be reduced based
upon the amount unpaid together with interest computed
in accordance with section 8334(e) (2) and (3) of title
5, United States Code, and regulations prescribed by
the Office.
(B) Amount.--The reduced annuity to which the
individual is entitled shall be equal to an amount
that, when taken together with the amount referred to
under subparagraph (A), would result in the present
value of the total being actuarially equivalent to the
present value of the unreduced annuity benefit that
would have been provided the individual.
(3) Survivor annuity.--
(A) In general.--If at the time of commencement of
a survivor annuity, there is remaining unpaid any CSRS
service credit deposit described under paragraph (1),
and there has been no actuarial reduction in an annuity
under paragraph (2), the survivor annuity shall be
reduced based upon the amount unpaid together with
interest computed in accordance with section 8334(e)
(2) and (3) of title 5, United States Code, and
regulations prescribed by the Office.
(B) Amount.--The reduced survivor annuity to which
the individual is entitled shall be equal to an amount
that, when taken together with the amount referred to
under subparagraph (A), would result in the present
value of the total being actuarially equivalent to the
present value of an unreduced survivor annuity benefit
that would have been provided the individual.
SEC. 204. PROVISIONS RELATED TO SOCIAL SECURITY COVERAGE OF
MISCLASSIFIED EMPLOYEES.
(a) Definitions.--In this section, the term--
(1) ``covered individual'' means any employee, former
employee, or annuitant who--
(A) is or was employed erroneously subject to CSRS
coverage as a result of a retirement coverage error;
and
(B) is or was retroactively converted to CSRS-
offset coverage, FERS coverage, or Social Security-only
coverage; and
(2) ``excess CSRS deduction amount'' means an amount equal
to the difference between the CSRS deductions withheld and the
CSRS-Offset or FERS deductions, if any, due with respect to a
covered individual during the entire period the individual was
erroneously subject to CSRS coverage as a result of a
retirement coverage error.
(b) Reports to Commissioner of Social Security.--
(1) In general.--In order to carry out the Commissioner of
Social Security's responsibilities under title II of the Social
Security Act, the Commissioner may request the head of each
agency that employs or employed a covered individual to report
(in coordination with the Office of Personnel Management) in
such form and within such timeframe as the Commissioner may
specify, any or all of--
(A) the total wages (as defined in section 3121(a)
of the Internal Revenue Code of 1986) paid to such
individual during each year of the entire period of the
erroneous CSRS coverage; and
(B) such additional information as the Commissioner
may require for the purpose of carrying out the
Commissioner's responsibilities under title II of the
Social Security Act (42 U.S.C. 401 et seq.).
(2) Compliance.--The head of an agency or the Office shall
comply with a request from the Commissioner under paragraph
(1).
(3) Wages.--For purposes of section 201 of the Social
Security Act (42 U.S.C. 401), wages reported under this
subsection shall be deemed to be wages reported to the
Secretary of the Treasury or the Secretary's delegates pursuant
to subtitle F of the Internal Revenue Code of 1986.
(c) Payment Relating To OASDI Employee Taxes.--
(1) In general.-- The Director of the Office of Personnel
Management shall transfer from the Civil Service Retirement and
Disability Fund to the OASDI trust funds an amount equal to the
excess CSRS deduction amount for covered individuals (as
adjusted by amounts transferred relating to applicable OASDI
employee taxes as a result of corrections made, including
corrections made before the date of enactment of this Act).
(2) Transfer.--Amounts transferred under this subsection--
(A) shall be deposited in the OASDI trust funds in
the proportions indicated under section 201 (a) and (b)
of the Social Security Act (42 U.S.C. 401 (a) and (b));
and
(B) shall be determined notwithstanding any
limitation under section 6501 of the Internal Revenue
Code of 1986.
(d) Payment of OASDI Employer Taxes.--
(1) In general.--Each employing agency shall pay into the
OASDI trust funds an amount equal to OASDI employer taxes owed
with respect to covered individuals during the applicable
period of erroneous coverage (as adjusted by amounts
transferred for the payment of such taxes as a result of corrections
made, including corrections made before the date of enactment of this
Act).
(2) Transfer.--Amounts transferred under this subsection--
(A) shall be deposited in the OASDI trust funds in
the proportions indicated under section 201 (a) and (b)
of the Social Security Act (42 U.S.C. 401 (a) and (b));
and
(B) shall be determined subject to any limitation
under section 6501 of the Internal Revenue Code of
1986.
(e) Application of OASDI Tax Provisions of the Internal Revenue
Code of 1986 to Affected Individuals and Employing Agencies.--A covered
individual and the individual's employing agency shall be deemed to
have fully satisfied in a timely manner their responsibilities with
respect to the taxes imposed by sections 3101(a), 3102(a), and 3111(a)
of the Internal Revenue Code of 1986 on the wages paid by the employing
agency to such individual during the entire period such individual was
erroneously subject to CSRS coverage as a result of a retirement
coverage error. No credit or refund of taxes on such wages shall be
allowed as a result of this subsection.
SEC. 205. THRIFT SAVINGS PLAN TREATMENT FOR CERTAIN INDIVIDUALS.
(a) Applicability.--This section applies to an individual who--
(1) is eligible to make an election of coverage under
section 101 or 102, and only if FERS coverage is elected (or
remains in effect) for the employee involved;
(2) is described in section 111; or
(3) is a former employee, annuitant, or survivor (subject
to conditions similar to those in sections 101 and 102) in the
case of a retirement coverage error in which a FERS covered
employee was erroneously Social Security-Only covered and is
corrected to FERS coverage.
(b) Payment Into Thrift Savings Fund.--
(1) In general.--
(A) Payment.--With respect to an individual to whom
this section applies, the employing agency shall pay to
the Thrift Savings Fund under subchapter III of chapter
84 of title 5, United States Code, for credit to the
account of the employee involved, an amount equal to
the earnings which are disallowed under section 8432a
of such title on the employee's retroactive
contributions to such Fund.
(B) Amount.--The amount paid under subparagraph (A)
shall represent earnings, on such retroactive
contributions, during the period of the retirement
coverage error and continuing through the date on which
the amount is paid by the employing agency (and based
on distributions from the employee's Thrift Savings
Plan account).
(C) Earnings.--Earnings under subparagraph (B)
shall be computed in accordance with the procedures for
computing lost earnings under section 8432a of title 5,
United States Code. The amount paid by the employing
agency shall be treated for all purposes as if that
amount had actually been earned on the basis of the
employee's contributions.
(2) Additional employee contribution.--In cases in which
the retirement coverage error was corrected before the
effective date of the regulations under section 101(c), the
employee involved (including an employee described in
subsection (a)(2)) shall have an additional opportunity to make
retroactive contributions for the period of the retirement
coverage error (subject to applicable limits), and such
contributions (including any contributions made after the date
of the correction) shall be treated in accordance with
paragraph (1).
(c) Regulations.--The Office, in consultation with the Federal
Retirement Thrift Investment Board, shall prescribe regulations
appropriate to carry out this section.
SEC. 206. CERTAIN AGENCY AMOUNTS TO BE PAID INTO OR REMAIN IN THE
CSRDF.
(a) Certain Excess Agency Contributions to Remain in the CSRDF.--
(1) In general.--Any amount described under paragraph (2)
shall--
(A) remain in the CSRDF; and
(B) may not be paid or credited to an agency.
(2) Amounts.--Paragraph (1) refers to any amount of
contributions made by an agency under section 8423 of title 5,
United States Code, on behalf of any employee, former employee,
or annuitant (or survivor of such employee, former employee, or
annuitant) who makes an election to correct a retirement
coverage error under this Act, that the Office determines to be
excess as a result of such election.
(b) Additional Employee Retirement Deductions To Be Paid by
Agency.--If a correction in a retirement coverage error results in an
increase in employee deductions under section 8334 or 8422 of title 5,
United States Code, that cannot be fully paid by a reallocation of
otherwise available amounts previously deducted from the employee's pay
as employment taxes or retirement deductions, the employing agency--
(1) shall pay the required additional amount into the
CSRDF; and
(2) shall not seek repayment of that amount from the
employee, former employee, annuitant, or survivor.
SEC. 207. CSRS COVERAGE DETERMINATIONS TO BE APPROVED BY OPM.
No agency shall place an individual under CSRS coverage unless--
(1) the individual has been employed with CSRS coverage
within the preceding 365 days; or
(2) the Office has agreed in writing that the agency's
coverage determination is correct.
SEC. 208. DISCRETIONARY ACTIONS BY DIRECTOR.
(a) In General.--The Director of the Office of Personnel Management
may--
(1) extend the deadlines for making elections under this
Act in circumstances involving an individual's inability to
make a timely election due to a cause beyond the individual's
control;
(2) provide for the reimbursement of necessary and
reasonable expenses incurred by an individual with respect to
settlement of a claim for losses resulting from a retirement
coverage error, including attorney's fees, court costs, and
other actual expenses;
(3) compensate an individual for monetary losses that are a
direct and proximate result of a retirement coverage error,
excluding claimed losses relating to forgone contributions and
earnings under the Thrift Savings Plan under subchapter III of
chapter 84 of title 5, United States Code, and all other
investment opportunities; and
(4) waive repayments otherwise required under this Act.
(b) Similar Actions.--In exercising the authority under this
section, the Director shall, to the extent practicable, provide for
similar actions in situations involving similar circumstances.
(c) Judicial Review.--Actions taken under this section are final
and conclusive, and are not subject to administrative or judicial
review.
(d) Regulations.--The Office of Personnel Management shall
prescribe regulations regarding the process and criteria used in
exercising the authority under this section.
(e) Report.--The Office of Personnel Management shall, not later
than 180 days after the date of enactment of this Act, and annually
thereafter for each year in which the authority provided in this
section is used, submit a report to each House of Congress on the
operation of this section.
SEC. 209. REGULATIONS.
(a) In General.--In addition to the regulations specifically
authorized in this Act, the Office may prescribe such other regulations
as are necessary for the administration of this Act.
(b) Former Spouse.--The regulations prescribed under this Act shall
provide for protection of the rights of a former spouse with
entitlement to an apportionment of benefits or to survivor benefits
based on the service of the employee.
TITLE III--OTHER PROVISIONS
SEC. 301. PROVISIONS TO PERMIT CONTINUED CONFORMITY OF OTHER FEDERAL
RETIREMENT SYSTEMS.
(a) Foreign Service.--Sections 827 and 851 of the Foreign Service
Act of 1980 (22 U.S.C. 4067 and 4071) shall apply with respect to this
Act in the same manner as if this Act were part of--
(1) the Civil Service Retirement System, to the extent this
Act relates to the Civil Service Retirement System; and
(2) the Federal Employees' Retirement System, to the extent
this Act relates to the Federal Employees' Retirement System.
(b) Central Intelligence Agency.--Sections 292 and 301 of the
Central Intelligence Agency Retirement Act (50 U.S.C. 2141 and 2151)
shall apply with respect to this Act in the same manner as if this Act
were part of--
(1) the Civil Service Retirement System, to the extent this
Act relates to the Civil Service Retirement System; and
(2) the Federal Employees' Retirement System, to the extent
this Act relates to the Federal Employees' Retirement System.
SEC. 302. AUTHORIZATION AND APPROPRIATION.
All payments permitted or required by this Act to be paid from the
Civil Service Retirement and Disability Fund, together with
administrative expenses incurred by the Office in administering this
Act, shall be deemed to have been authorized to be paid from that Fund,
which is appropriated for the payment thereof.
SEC. 303. INDIVIDUAL RIGHT OF ACTION PRESERVED FOR AMOUNTS NOT
OTHERWISE PROVIDED FOR UNDER THIS ACT.
Nothing in this Act shall preclude an individual from bringing a
claim against the Government of the United States which such individual
may have under section 1346(b) or chapter 171 of title 28, United
States Code, or any other provision of law (except to the extent the
claim is for any amounts otherwise provided for under this Act).
SEC. 304. EFFECTIVE DATE.
Except as otherwise provided in this Act, this Act shall take
effect on the date of enactment of this Act.
TITLE IV--TAX PROVISIONS
SEC. 401. TAX PROVISIONS.
(a) Plan Qualification.--No retirement plan of the United States
(or any agency thereof) shall fail to be treated as a qualified plan
under the Internal Revenue Code of 1986 by reason of any action taken
under this Act.
(b) Transfers.--For purposes of the Internal Revenue Code of 1986,
no amount shall be includible in the gross income of any individual in
any tax year by reason of any direct transfer under this Act between
funds or any Government contribution under this Act to any fund or
account in any such tax year.
TITLE V--MISCELLANEOUS RETIREMENT PROVISIONS
SEC. 501. FEDERAL RESERVE BOARD PORTABILITY OF SERVICE CREDIT.
(a) Creditable Service.--
(1) In general.--Section 8411(b) of title 5, United States
Code, is amended--
(A) by striking ``and'' at the end of paragraph
(3);
(B) in paragraph (4)--
(i) by striking ``of the preceding
provisions'' and inserting ``other paragraph'';
and
(ii) by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(5) a period of service (other than any service under any
other paragraph of this subsection, any military service, and
any service performed in the employ of a Federal Reserve Bank)
that was creditable under the Bank Plan (as defined in
subsection (i)), if the employee waives credit for such service
under the Bank Plan and makes a payment to the Fund equal to
the amount that would have been deducted from pay under section
8422(a) had the employee been subject to this chapter during
such period of service (together with interest on such amount
computed under paragraphs (2) and (3) of section 8334(e)).
Paragraph (5) shall not apply in the case of any employee as to whom
subsection (g) (or, to the extent subchapter III of chapter 83 is
involved, section 8332(n)) otherwise applies.''.
(2) Bank plan defined.--Section 8411 of title 5, United
States Code, is amended by adding at the end the following:
``(i) For purposes of subsection (b)(5), the term `Bank Plan' means
the benefit structure in which employees of the Board of Governors of
the Federal Reserve System appointed on or after January 1, 1984,
participate, which benefit structure is a component of the Retirement
Plan for Employees of the Federal Reserve System, established under
section 10 of the Federal Reserve Act (and any redesignated or
successor version of such benefit structure, if so identified in
writing by the Board of Governors of the Federal Reserve System for
purposes of this chapter).''.
(b) Exclusion From Chapter 84.--
(1) In general.--Paragraph (2) of section 8402(b) of title
5, United States Code, is amended by striking the matter before
subparagraph (B) and inserting the following:
``(2)(A) any employee or Member who has separated from the
service after--
``(i) having been subject to--
``(I) subchapter III of chapter 83 of this
title;
``(II) subchapter I of chapter 8 of title I
of the Foreign Service Act of 1980; or
``(III) the benefit structure for employees
of the Board of Governors of the Federal
Reserve System appointed before January 1,
1984, that is a component of the Retirement
Plan for Employees of the Federal Reserve
System, established under section 10 of the
Federal Reserve Act; and
``(ii) having completed--
``(I) at least 5 years of civilian service
creditable under subchapter III of chapter 83
of this title;
``(II) at least 5 years of civilian service
creditable under subchapter I of chapter 8 of
title I of the Foreign Service Act of 1980; or
``(III) at least 5 years of civilian
service (other than any service performed in
the employ of a Federal Reserve Bank)
creditable under the benefit structure for
employees of the Board of Governors of the
Federal Reserve System appointed before January
1, 1984, that is a component of the Retirement
Plan for Employees of the Federal Reserve
System, established under section 10 of the
Federal Reserve Act,
determined without regard to any deposit or redeposit
requirement under either such subchapter or under such
benefit structure, or any requirement that the
individual become subject to either such subchapter or
to such benefit structure after performing the service
involved; or''.
(2) Exception.--Subsection (d) of section 8402 of title 5,
United States Code, is amended to read as follows:
``(d) Paragraph (2) of subsection (b) shall not apply to an
individual who--
``(1) becomes subject to--
``(A) subchapter II of chapter 8 of title I of the
Foreign Service Act of 1980 (relating to the Foreign
Service Pension System) pursuant to an election; or
``(B) the benefit structure in which employees of
the Board of Governors of the Federal Reserve System
appointed on or after January 1, 1984, participate,
which benefit structure is a component of the
Retirement Plan for Employees of the Federal Reserve
System, established under section 10 of the Federal
Reserve Act (and any redesignated or successor version
of such benefit structure, if so identified in writing
by the Board of Governors of the Federal Reserve System
for purposes of this chapter); and
``(2) subsequently enters a position in which, but for
paragraph (2) of subsection (b), such individual would be
subject to this chapter.''.
(c) Provisions Relating to Certain Former Employees.--A former
employee of the Board of Governors of the Federal Reserve System who--
(1) has at least 5 years of civilian service (other than
any service performed in the employ of a Federal Reserve Bank)
creditable under the benefit structure for employees of the
Board of Governors of the Federal Reserve System appointed
before January 1, 1984, that is a component of the Retirement
Plan for Employees of the Federal Reserve System, established
under section 10 of the Federal Reserve Act;
(2) was subsequently employed subject to the benefit
structure in which employees of the Board of Governors of the
Federal Reserve System appointed on or after January 1, 1984,
participate, which benefit structure is a component of the
Retirement Plan for Employees of the Federal Reserve System,
established under section 10 of the Federal Reserve Act (and
any redesignated or successor version of such benefit
structure, if so identified in writing by the Board of Governors of the
Federal Reserve System for purposes of chapter 84 of title 5, United
States Code); and
(3) after service described in paragraph (2), becomes
subject to and thereafter entitled to benefits under chapter 84
of title 5, United States Code,
shall, for purposes of section 302 of the Federal Employees' Retirement
System Act of 1986 (100 Stat. 601; 5 U.S.C. 8331 note) be considered to
have become subject to chapter 84 of title 5, United States Code,
pursuant to an election under section 301 of such Act.
(d) Effective Date.--
(1) In general.--Subject to succeeding provisions of this
subsection, this section and the amendments made by this
section shall take effect on the date of enactment of this Act.
(2) Provisions relating to creditability and certain former
employees.--The amendments made by subsection (a) and the
provisions of subsection (c) shall apply only to individuals
who separate from service subject to chapter 84 of title 5,
United States Code, on or after the date of enactment of this
Act.
(3) Provisions relating to exclusion from chapter.--The
amendments made by subsection (b) shall not apply to any former
employee of the Board of Governors of the Federal Reserve
System who, subsequent to his or her last period of service as
an employee of the Board of Governors of the Federal Reserve
System and prior to the date of enactment of this Act, became
subject to subchapter III of chapter 83 or chapter 84 of title
5, United States Code, under the law in effect at the time of
the individual's appointment.
SEC. 502. CERTAIN TRANSFERS TO BE TREATED AS A SEPARATION FROM SERVICE
FOR PURPOSES OF THE THRIFT SAVINGS PLAN.
(a) Amendments to Chapter 84 of Title 5, United States Code.--
(1) In general.--Subchapter III of chapter 84 of title 5,
United States Code, is amended by inserting before section 8432
the following:
``Sec. 8431. Certain transfers to be treated as a separation
``(a) For purposes of this subchapter, separation from Government
employment includes a transfer from a position that is subject to one
of the retirement systems described in subsection (b) to a position
that is not subject to any of them.
``(b) The retirement systems described in this subsection are--
``(1) the retirement system under this chapter;
``(2) the retirement system under subchapter III of chapter
83; and
``(3) any other retirement system under which individuals
may contribute to the Thrift Savings Fund through withholdings
from pay.''.
(2) Clerical amendment.--The table of sections for chapter
84 of title 5, United States Code, is amended by inserting
before the item relating to section 8432 the following:
``8431. Certain transfers to be treated as a separation.''.
(b) Conforming Amendments.--Subsection (b) of section 8351 of title
5, United States Code, is amended by redesignating paragraph (11) as
paragraph (8), and by adding at the end the following:
``(9) For the purpose of this section, separation from
Government employment includes a transfer described in section
8431.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to transfers occurring before, on, or after the date
of enactment of this Act, except that, for purposes of applying such
amendments with respect to any transfer occurring before such date of
enactment, the date of such transfer shall be considered to be the date
of enactment of this Act. The Executive Director (within the meaning of
section 8401(13) of title 5, United States Code) may prescribe any
regulations necessary to carry out this subsection.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S7226-7227)
Read twice and referred to the Committee on Governmental Affairs.
Referred to Subcommittee on International Security.
Committee on Governmental Affairs. Ordered to be reported without amendment favorably.
Committee on Governmental Affairs. Reported to Senate by Senator Thompson without amendment. With written report No. 106-178.
Committee on Governmental Affairs. Reported to Senate by Senator Thompson without amendment. With written report No. 106-178.
Placed on Senate Legislative Calendar under General Orders. Calendar No. 309.
Measure laid before Senate by unanimous consent. (consideration: CR S13861-13867)
Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent.
Passed Senate with an amendment by Unanimous Consent.
Received in the House.
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Held at the desk.
Pursuant to the provisions of H. Res. 394, papers are returned to the Senate.
Message received in Senate: Returned to the Senate pursuant to the provisions of H.Res.394. (consideration: CR H12833)