A bill to provide legislative savings in spending programs within the jurisdiction of the Committee on Labor and Human Resources of the Senate in order to assist in implementing the provisions of section 9, (C) (11) (A) of Senate Concurrent Resolution 9, as revised.

Repeals provisions of Federal law authorizing the continuation of pay of a Federal employee who has filed a disability claim.

Authorizes the Secretary of Labor to use employees of a Federal agency, with the agency's consent, to make the initial determinations in disability claims of Federal employees.

Changes the formula for computing cost-of-living adjustments in disability compensation. Limits any increase to the lesser of the annual increase in the Consumer Price Index or the annual adjustment in General Schedule pay rates.

Amends the Black Lung Benefits Act to make the Black Lung Disability Trust Fund a party to any proceeding involving a claim for black lung benefits. Directs the Secretary of the Treasury to establish an Office of Counsel which shall have standing to become a party to a proceeding with regard to determining an operator's responsibility for such benefits. Limits payments from the Fund to prospective beneficiaries until final determination has been made regarding a claim for retrospective benefits. Includes black lung benefits as workmen's compensation for purposes of limiting the total social security benefits and workmen's compensation received by an individual.