A bill to amend title 5, United States Code, to provide for grade retention benefits for certain Federal employees whose positions are reduced in grade, and for other purposes.

Provides for grade retention benefits for career or career-conditional Federal employees whose positions are reduced in grade, so long as such employee: (1) continues in the same agency, including an agency to which he is transferred in a transfer of function, without a break in service of one workday or more; (2) is not reassigned or promoted; and (3) is not demoted (A) for personal cause, (B) at his request, or (C) in a reduction in force.