A bill to amend title 5, United States Code, to provide that employees subject to certain pay limitations shall be credited, for civil service retirement and life insurance purposes, with the pay which would be received if such pay limitations were not applicable.

Expands the definition of "basic pay" for purposes of civil service retirement to include the amount of additional pay which an employee would receive if the pay rate limitation of up to level V of the Executive Schedule was not in effect.

Provides that from March 1, 1973, to the date of enactment of this Act, an employee shall deposit the amount of additional retirement deductions that would have been deducted if the pay limitations had not been in effect. States that if the employee fails to make such deposit, his annuity shall be reduced by 10 percent of the unpaid deposit. (Amends 5 U.S.C. 8331 (3))