To eliminate certain inequities in the Civil Service Retirement System and the Federal Employees' Retirement System with respect to the computation of benefits for law enforcement officers, firefighters, air traffic controllers, nuclear materials couriers, members of the Supreme Court and Capitol police, and their survivors, and for other purposes.

Summary: Federal Employees' Benefits Equity Act of 2001 - Sets forth provisions governing the computation of annuities under the Civil Service Retirement System and the Federal Employees' Retirement System for certain law enforcement officers, firefighters, air traffic controllers, nuclear materials couriers, members of the Supreme Court Police and the Capitol Police, and their survivors.

That this Act may be 
cited as the ``Federal Employees' Benefits Equity Act of 2001''.

                    civil service retirement system

    Sec. 2. (a) Section 8339 of title 5, United States Code, is 
amended--
            (1) in subsection (d)(1)--
                    (A) by striking ``(d)(1)'' and inserting 
                ``(d)(1)(A)'';
                    (B) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(B) If, at any age and after completing 20 years 
                of service as a law enforcement officer, firefighter, 
                nuclear materials courier, or member of the Supreme 
                Court Police, or any combination of such service 
                totaling at least 20 years, an employee retires under 
                section 8336(d)(1), or 8337, the annuity of such 
                employee shall be computed under subparagraph (A).'';
            (2) in subsection (e)--
                    (A) by striking ``(e)'' and inserting ``(e)(1)''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
            ``(2) If, at any age and after completing 20 years of 
        service as an air traffic controller, an employee retires under 
        section 8336(d)(1) or 8337, paragraph (1) shall be applied in 
        computing the annuity of such employee.''; and
            (3) in subsection (q)--
                    (A) by striking ``(q)'' and inserting ``(q)(1)'';
                    (B) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(2) If, at any age and after completing 20 years of 
        service as a member of the Capitol Police or as a law 
        enforcement officer (or any combination of such service 
        totaling at least 20 years), a member or former member of the 
        Capitol Police retires under section 8336(d)(1) or 8337, the 
        annuity of such member or former member shall be computed under 
        paragraph (1).''.
    (b) Section 8341(d) of title 5, United States Code, is amended--
            (1) by inserting the following immediately after the first 
        sentence: ``For purposes of the preceding sentence, subsections 
        (b)-(e), (q) and (r) of section 8339 shall be considered as 
        applying with respect to the employee or Member only if the 
        employee or Member satisfied the age and service requirements 
        for application of such subsections to the employee or Member 
        at the date of death. For this purpose, the decedent shall be 
        deemed to have been disabled for purposes of retirement under 
        section 8337 at the time of death.''; and
            (2) by striking ``Notwithstanding the preceding sentence'' 
        and inserting ``Notwithstanding the first sentence of this 
        subsection''.
    (c) Section 8342 of title 5, United States Code, is amended by 
adding at the end the following new subsection:
    ``(k) When an employee--
            ``(1) has service as a law enforcement officer, 
        firefighter, nuclear materials courier, or member of the 
        Capitol Police or Supreme Court Police for which retirement 
        deductions were withheld under section 8334(a) or deposited 
        under section 8334(c) at a higher percentage rate than that 
        applicable to employees generally; and
            ``(2)(A) begins to receive an annuity which is not computed 
        under section 8339(d) or (q) and, in the case of a member or 
        former member of the Capitol Police, also does not have his or 
        her service as a member of the Capitol Police credited in the 
        computation of an annuity under section 8339(b) or (c); or
            ``(B) dies before retiring under this subchapter but leaves 
        a survivor entitled to an annuity under section 8341 based on 
        the deceased employee's service, provided that--
                    ``(i) such survivor annuity is not based on an 
                employee annuity computed under section 8339(d) or (q); 
                and
                    ``(ii) where the decedent was a member or former 
                member of the Capitol Police, such survivor annuity is 
                not based on an annuity computed under section 8339(b) 
                or (c) which includes credit for service as a member of 
                the Capitol Police--
        the difference between the employee deductions for such service 
        at the higher percentage rate and the employee deductions that 
        would have been withheld at the rate applicable to employees 
        generally under section 8334(a)(1), together with interest 
        computed in accordance with paragraphs (2) and (3) of section 
        8334(e) and applicable regulations prescribed by the Office, 
        shall be paid to the annuitant or, in the case of a deceased 
        employee, to the individual entitled to a lump-sum benefit 
        under subsection (c).''.

                  federal employees' retirement system

    Sec. 3. (a) Section 8415(d) of title 5, United States Code, is 
amended to read as follows:
    ``(d)(1) The annuity of an employee retiring under subsection (d) 
or (e) of section 8412 or under subsection (a), (b), (c), or (d) of 
section 8425 is--
            ``(A) 1\7/10\ percent of that individual's average pay 
        multiplied by so much of such individual's total service as a 
        law enforcement officer, firefighter, member of the Capitol 
        Police or Supreme Court Police, nuclear materials courier, or 
        air traffic controller as does not exceed 20 years; plus
            ``(B) 1 percent of that individual's average pay multiplied 
        by the remainder of such individual's total service.
    ``(2) If, at any age and after completing 20 years of service as a 
law enforcement officer, firefighter, member of the Capitol Police or 
Supreme Court Police, or nuclear materials courier, or any combination 
of such service totaling at least 20 years, an employee retires under 
section 8414(b)(1)(A) or 8451, the annuity of such employee shall be 
computed under paragraph (1).
    ``(3) If, at any age and after completing 20 years of service as an 
air traffic controller, an employee retires under section 8414(b)(1)(A) 
or 8451, the annuity of such employee shall be computed under paragraph 
(1).''.
    (b) Section 8424 of title 5, United States Code, is amended by 
adding at the end of the following new subsection:
    ``(i) When an employee--
            ``(1) has service as a law enforcement officer, 
        firefighter, member of the Capitol Police or Supreme Court 
        Police, air traffic controller, or nuclear materials courier 
        for which retirement deductions were withheld under section 
        8422(a) at a higher percentage rate than that applicable to 
        employees generally; and
            ``(2)(A) begins to receive an annuity which is not computed 
        under section 8415(d) and, in the case of a member or former 
        member of the Capitol Police, also does not have his or her 
        service as a member of the Capitol Police credited in the 
        computation of an annuity under section 8415(b) or (c); or
            ``(B) dies before having retired under this chapter but 
        leaves a survivor entitled to an annuity under subchapter IV 
        based on the deceased employee's service, provided that--
                    ``(i) such survivor annuity is not based on an 
                employee annuity computed under section 8415(d); and
                    ``(ii) where the decedent was a member or former 
                member of the Capitol Police, such survivor annuity is 
                not based on an annuity computed under section 8415(b) 
                or (c) which includes service as a member of the 
                Capitol Police--
        the difference between the employee deductions for such service 
        at the higher percentage rate and the employee deductions that 
        would have been withheld at the rate applicable to employees 
        generally under section 8422(a)(2), together with interest 
        computed in accordance with paragraphs (2) and (3) of section 
        8334(e) and applicable regulations prescribed by the Office, 
        shall be paid to the annuitant or, in the case of a deceased 
        employee, to the individual entitled to a lump-sum benefit 
        under subsection (d).''.
    (c) Section 8442 of title 5, United States Code, is amended--
            (1) in subsection (b)(1) by adding at the end the 
        following:
``For purposes of the preceding sentence, section 8415(b)-(d) and (g) 
shall be considered as applying with respect to the employee or Member 
only if the employee or Member satisfied the age and service 
requirements for application of such subsections to the employee or 
Member at the date of death. For this purpose, the decedent shall be 
deemed to have been disabled for purposes of retirement under section 
8451 at the time of death.''; and
            (2) in subsection (c)(2)(A)(i) by striking ``section 8415'' 
        and inserting ``section 8415, but without regard to subsection 
        (d) of such section,''.

                             effective date

    Sec. 4. The amendments made by this Act shall take effect on the 
date of enactment of this Act and shall apply only with respect to 
individuals who, on or after such date of enactment, separate from 
employment subject to subchapter III of chapter 83, or chapter 84, of 
title 5, United States Code.