A bill to permit immediate retirement of certain Federal employees.

Provides that a Federal employee is eligible for immediate retirement if such employee is separated from the service while his agency is undergoing a major reduction in force, as determined by the Civil Service Commission, and is serving in such geographic areas as may be designated by the Commission after completing 25 years of service or after becoming fifty years of age and completing 20 years of service.

States that a person retiring under this Act, during a period of one year after the date of enactment of this Act, shall have his annuity reduced only by 1/12 of 1 percent for each full month the employee is under fifty-five years of age at the date of separation, except that such reduction shall not exceed 5 percent. (Amends 5 U.S.C. 8336(d))