Federal Employees Benefits Improvement Act of 1986

Federal Employees Benefits Improvement Act of 1986 - Title I: Federal Employees Health Benefits - Amends current law relating to the Federal Employee Health Benefit Plan to establish contracting authority for nurses, certified nurse-midwives, and clinical social workers.

Authorizes Federal health plans to require a referral by a psychiatrist as a condition for reimbursement of clinical social workers. Prohibits such plans from requiring that services be performed under the supervision of a psychiatrist or other health practitioner.

Eliminates the requirement of three medical specialties for group-practice prepayment plans.

Authorizes the Office of Personnel Mangement (OPM) to waive certain health benefits plan election coverage requirements for individuals who fail to satisfy such requirements due to exceptional circumstances.

Directs OPM to provide a three week period during which enrollees in health benefits plans may change or cancel their enrollments before any contract term in which the rates or benefits of a plan will change, a new plan will be offered, or an existing plan will be terminated.

Authorizes an enrollee to transfer such enrollment at other times and under other conditions as prescribed by OPM.

Changes from "employees" to "enrollees" those persons eligible for rebates from amounts held in contingency reserves under the Federal Employees Health Benefits Fund.

Reinstates contracting authority under the plan for health services for medically underserved populations.

Expresses the sense of the Congress that: (1) Federal health plan participants should receive adequate insurance coverage for treatment of mental illness, alcoholism, and drug addiction; and (2) OPM should encourage participating plans to provide adequate benefits relating to such illnesses.

Directs OPM to report, by March 1, 1986, to the House Committee on Post Office and Civil Service and the Senate Committee on Governmental Affairs on the adequacy of current sources in assisting individuals in making an informed choice for a health plan.

Requires the Director of OPM, in consultation with the Secretary of Health and Human Services, to conduct at least one demonstration project to determine the most effective (including cost-effective) means of: (1) furnishing health protection, health promotion, disease prevention, and secondary prevention services to Federal employees; (2) encouraging employees to adopt good health habits; (3) reducing health risks and medical expenses; (4) enhancing employee productivity and reducing Federal health-related liability through an occupational health program; and (5) training employees to provide certain health services and utilizing such employees through interagency agreements. Requires such project to determine the cost effectiveness of organizational structures and of social and educational programs which may be useful to achieve the objectives of such project. Sets forth administrative requirements for such project and requires a report to the Congress 60 days after its termination.

Authorizes OPM to approve mixed model prepayment plans, which are combinations of group-practice and individual-practice health plans.

Requires that amounts refunded during FY 1986 or 1987 to the Employees Health Benefits Fund be used solely to pay the Government contribution for annuitants enrolled in health benefits plans.

Title II: Civil Service Spouse and Former Spouse Equity Improvements - Amends the Civil Service Retirement Spouse Equity Act of 1984 to make technical and clarifying changes with respect to the applicability of survivor benefits. Directs OPM to prescribe regulations under which an employee or Member of Congress may designate a portion of such employee's annuity to be used as the base for the survivor annuity for a former spouse.

Title III: Miscellaneous Civil Service Amendments - Authorizes OPM to incur reception and representation expenses subject to limitations prescribed by law.

Exempts actions of the Director of OPM regarding routine pay matters from certain notice requirements.

Includes in pre-departure allowances for employees in a foreign area the costs incurred in U.S. territories or possessions, the Commonwealth of Puerto Rico, or areas available to the United States in the Republic of Panama.

Authorizes routine dental care at Naval hospitals and dispensaries to Federal employees and their dependents, and Federal contractors and their dependents, outside the continental limits of the United States under specified circumstances.

Repeals provisions relating to a minimum annuity under the Civil Service Retirement System. Declares that certain retirees who have received erroneous overpayments before enactment of this Act shall be deemed entitled to such overpayments. Provides for lump-sum payments to certain retirees as an adjustment for certain reductions.

Extends Government benefits regarding rates of pay on changes of position, annual leave, and reductions-in-force to former employees of county committees established under the soil conservation program. (Currently, such benefits are extended only to the former committee employees who are also employees of the Department of Agriculture.)

Grants Federal retirees an 18-month period after their retirement date to elect a survivor annuity for their spouses or to increase such annuity. Declares such election ineffective unless the necessary amount to cover such election is deposited in the Civil Service Retirement and Disability Fund prior to the expiration of the 18-month period.

Declares that a survivor annuity election made under the provisions of this Act voids any such previous election.

Directs OPM to annually inform each employee and Member of his or her right of election, including applicable procedures and deadlines.