A bill to amend Civil Service provisions as they apply to certain employees of the Bureau of Indian Affairs and of the Indian Health Service who are not entitled to Indian employment preference and to modify the application of the Indian employment preference laws as it applies to those agencies.

Entitles certain employees of Indian tribal organizations, the Indian Health Service (IHS), or the Bureau of Indian Affairs (BIA) to an annuity if separated from service after completing 25 years of service or after attaining 50 years of age and completing 20 years of service, if such employee is not an Indian entitled to an employment preference by law.

States that employees entitled to Indian preference and military preference shall be retained in preference to employees entitled to only military preference during reductions in force within the BIA or the IHS.

Declares that reassignments of individuals within the BIA or the IHS shall not be subject to the Indian preference laws where the Commissioner of Indian Affairs determines that the reassignment is necessary to: (1) assure the health or safety of an individual or his family; (2) avoid the displacement of an Indian during a reduction in force; or (3) prevent the deterioration of an individual's operation or of a necessary service to the Indian people.

Forbids the application of Indian preference laws to any personnel action respecting an individual if the tribal organization served by the unit in which the position exists grants a waiver of those laws.

Requires the Secretaries of the Interior and of Health, Education, and Welfare to report annually to Congress on their actions to recruit and train Indians for positions subject to Indian preference laws and to place non-Indian employees of the BIA and the IHS in other Federal positions.