106TH CONGRESS

1ST SESSION S. 1232

AN ACT

To provide for the correction of retirement coverage errors

under chapters 83 and 84 of title 5, United States Code.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Federal Erroneous Retirement Coverage Corrections

6 Act’’.
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1 (b) TABLE OF CONTENTS.—The table of contents for

2 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

Sec. 3. Applicability.

Sec. 4. Irrevocability of elections.

TITLE I—DESCRIPTION OF RETIREMENT COVERAGE ERRORS TO

WHICH THIS ACT APPLIES AND MEASURES FOR THEIR RECTIFICATION

Subtitle A—Employees and Annuitants Who Should Have Been FERS Covered, but Who Were Erroneously CSRS Covered or CSRS-Offset Covered

Instead, and Survivors of Such Employees and Annuitants

Sec. 101. Employees.

Sec. 102. Annuitants and survivors.

Subtitle B—Employee Who Should Have Been FERS Covered, CSRS-Offset

Covered, or CSRS Covered, but Who Was Erroneously Social Security-Only

Covered Instead

Sec. 111. Applicability.

Sec. 112. Correction mandatory.

Subtitle C—Employee Who Should or Could Have Been Social Security-Only

Covered but Who Was Erroneously CSRS-Offset Covered or CSRS Covered

Instead

Sec. 121. Employee who should be Social Security-Only covered, but who is erroneously CSRS or CSRS-Offset covered instead.

Subtitle D—Employee Who Was Erroneously FERS Covered.

Sec. 131. Employee who should be Social Security-Only covered, CSRS covered,

or CSRS-Offset covered and is not FERS-eligible, but who is

erroneously FERS covered instead.

Sec. 132. FERS-Eligible Employee Who Should Have Been CSRS Covered,

CSRS-Offset Covered, or Social Security-Only Covered, but

Who Was Erroneously FERS Covered Instead Without an

Election.

Sec. 133. Retroactive effect.

Subtitle E—Employee Who Should Have Been CSRS-Offset Covered, but

Who Was Erroneously CSRS Covered Instead

Sec. 141. Applicability.

Sec. 142. Correction mandatory.

Subtitle F—Employee Who Should Have Been CSRS Covered, but Who Was

Erroneously CSRS-Offset Covered Instead

Sec. 151. Applicability.

Sec. 152. Correction mandatory.

TITLE II—GENERAL PROVISIONS
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Sec. 201. Identification and notification requirements.

Sec. 202. Information to be furnished to and by authorities administering this

Act.

Sec. 203. Service credit deposits.

Sec. 204. Provisions related to Social Security coverage of misclassified employees.

Sec. 205. Thrift Savings Plan treatment for certain individuals.

Sec. 206. Certain agency amounts to be paid into or remain in the CSRDF.

Sec. 207. CSRS coverage determinations to be approved by OPM.

Sec. 208. Discretionary actions by Director.

Sec. 209. Regulations.

TITLE III—OTHER PROVISIONS

Sec. 301. Provisions to authorize continued conformity of other Federal retirement systems.

Sec. 302. Authorization of payments.

Sec. 303. Individual right of action preserved for amounts not otherwise provided for under this Act.

TITLE IV—TAX PROVISIONS

Sec. 401. Tax provisions.

TITLE V—MISCELLANEOUS RETIREMENT PROVISIONS

Sec. 501. Federal Reserve Board portability of service credit.

Sec. 502. Certain transfers to be treated as a separation from service for purposes of the Thrift Savings Plan.

TITLE VI—EFFECTIVE DATE

Sec. 601. Effective date.

1 SEC. 2. DEFINITIONS.

2 For purposes of this Act:

3 (1) ANNUITANT.—The term ‘‘annuitant’’ has

4 the meaning given such term under section 8331(9)

5 or 8401(2) of title 5, United States Code.

6 (2) CSRS.—The term ‘‘CSRS’’ means the Civil

7 Service Retirement System.

8 (3) CSRDF.—The term ‘‘CSRDF’’ means the

9 Civil Service Retirement and Disability Fund.

10 (4) CSRS COVERED.—The term ‘‘CSRS cov11 ered’’, with respect to any service, means service
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1 that is subject to the provisions of subchapter III of

2 chapter 83 of title 5, United States Code, other than

3 service subject to section 8334(k) of such title.

4 (5) CSRS-OFFSET COVERED.—The term

5 ‘‘CSRS-Offset covered’’, with respect to any service,

6 means service that is subject to the provisions of

7 subchapter III of chapter 83 of title 5, United

8 States Code, and to section 8334(k) of such title.

9 (6) EMPLOYEE.—The term ‘‘employee’’ has the

10 meaning given such term under section 8331(1) or

11 8401(11) of title 5, United States Code.

12 (7) EXECUTIVE DIRECTOR.—The term ‘‘Execu13 tive Director of the Federal Retirement Thrift In14 vestment Board’’ or ‘‘Executive Director’’ means the

15 Executive Director appointed under section 8474 of

16 title 5, United States Code.

17 (8) FERS.—The term ‘‘FERS’’ means the

18 Federal Employees’ Retirement System.

19 (9) FERS COVERED.—The term ‘‘FERS cov20 ered’’, with respect to any service, means service

21 that is subject to chapter 84 of title 5, United States

22 Code.

23 (10) FORMER EMPLOYEE.—The term ‘‘former

24 employee’’ means an individual who was an em25 ployee, but who is not an annuitant.
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1 (11) OASDI TAXES.—The term ‘‘OASDI

2 taxes’’ means the OASDI employee tax and the

3 OASDI employer tax.

4 (12) OASDI EMPLOYEE TAX.—The term

5 ‘‘OASDI employee tax’’ means the tax imposed

6 under section 3101(a) of the Internal Revenue Code

7 of 1986 (relating to Old-Age, Survivors and Dis8 ability Insurance).

9 (13) OASDI EMPLOYER TAX.—The term

10 ‘‘OASDI employer tax’’ means the tax imposed

11 under section 3111(a) of the Internal Revenue Code

12 of 1986 (relating to Old-Age, Survivors and Dis13 ability Insurance).

14 (14) OASDI TRUST FUNDS.—The term

15 ‘‘OASDI trust funds’’ means the Federal Old-Age

16 and Survivors Insurance Trust Fund and the Fed17 eral Disability Insurance Trust Fund.

18 (15) OFFICE.—The term ‘‘Office’’ means the

19 Office of Personnel Management.

20 (16) RETIREMENT COVERAGE DETERMINA21 TION.—The term ‘‘retirement coverage determina22 tion’’ means a determination by an employee or

23 agent of the Government as to whether a particular

24 type of Government service is CSRS covered, CSRS-
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1 Offset covered, FERS covered, or Social Security2 Only covered.

3 (17) RETIREMENT COVERAGE ERROR.—The

4 term ‘‘retirement coverage error’’ means an erro5 neous retirement coverage determination that was in

6 effect for a minimum period of 3 years of service

7 after December 31, 1986.

8 (18) SOCIAL SECURITY-ONLY COVERED.—The

9 term ‘‘Social Security-Only covered’’, with respect to

10 any service, means Government service that—

11 (A) constitutes employment under section

12 210 of the Social Security Act (42 U.S.C. 410);

13 and

14 (B)(i) is subject to OASDI taxes; but

15 (ii) is not subject to CSRS or FERS.

16 (19) SURVIVOR.—The term ‘‘survivor’’ has the

17 meaning given such term under section 8331(10) or

18 8401(28) of title 5, United States Code.

19 (20) THRIFT SAVINGS FUND.—The term

20 ‘‘Thrift Savings Fund’’ means the Thrift Savings

21 Fund established under section 8437 of title 5,

22 United States Code.
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1 SEC. 3. APPLICABILITY.

2 (a) IN GENERAL.—This Act shall apply with respect

3 to retirement coverage errors that occur before, on, or

4 after the date of enactment of this Act.

5 (b) LIMITATION.—Except as otherwise provided in

6 this Act, this Act shall not apply to any erroneous retire7 ment coverage determination that was in effect for a pe8 riod of less than 3 years of service after December 31,

9 1986.

10 SEC. 4. IRREVOCABILITY OF ELECTIONS.

11 Any election made (or deemed to have been made)

12 by an employee or any other individual under this Act

13 shall be irrevocable.
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1 TITLE I—DESCRIPTION OF RE2 TIREMENT COVERAGE ER3 RORS TO WHICH THIS ACT AP4 PLIES AND MEASURES FOR

5 THEIR RECTIFICATION

6 Subtitle A—Employees and Annu7 itants Who Should Have Been

8 FERS Covered, but Who Were

9 Erroneously CSRS Covered or

10 CSRS-Offset Covered Instead,

11 and Survivors of Such Employ12 ees and Annuitants

13 SEC. 101. EMPLOYEES.

14 (a) APPLICABILITY.—This section shall apply in the

15 case of any employee or former employee who should be

16 (or should have been) FERS covered but, as a result of

17 a retirement coverage error, is (or was) CSRS covered or

18 CSRS-Offset covered instead.

19 (b) UNCORRECTED ERROR.—

20 (1) APPLICABILITY.—This subsection applies if

21 the retirement coverage error has not been corrected

22 before the effective date of the regulations described

23 under paragraph (3). As soon as practicable after

24 discovery of the error, and subject to the right of an

25 election under paragraph (2), if CSRS covered or
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1 CSRS-Offset covered, such individual shall be treat2 ed as CSRS-Offset covered, retroactive to the date

3 of the retirement coverage error.

4 (2) COVERAGE.—

5 (A) ELECTION.—Upon written notice of a

6 retirement coverage error, an individual may

7 elect to be CSRS-Offset covered or FERS cov8 ered, effective as of the date of the retirement

9 coverage error. Such election shall be made not

10 later than 180 days after the date of receipt of

11 such notice.

12 (B) NONELECTION.—If the individual does

13 not make an election by the date provided

14 under subparagraph (A), a CSRS-Offset cov15 ered individual shall remain CSRS-Offset cov16 ered and a CSRS covered individual shall be

17 treated as CSRS-Offset covered.

18 (3) REGULATIONS.—The Office shall prescribe

19 regulations to carry out this subsection.

20 (c) CORRECTED ERROR.—

21 (1) APPLICABILITY.—This subsection applies if

22 the retirement coverage error was corrected before

23 the effective date of the regulations described under

24 subsection (b).

25 (2) COVERAGE.—
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1 (A) ELECTION.—

2 (i) CSRS-OFFSET COVERED.—Not

3 later than 180 days after the date of en4 actment of this Act, the Office shall pre5 scribe regulations authorizing individuals

6 to elect, during the 18-month period imme7 diately following the effective date of such

8 regulations, to be CSRS-Offset covered, ef9 fective as of the date of the retirement cov10 erage error.

11 (ii) THRIFT SAVINGS FUND CON12 TRIBUTIONS.—If under this section an in13 dividual elects to be CSRS-Offset covered,

14 all employee contributions to the Thrift

15 Savings Fund made during the period of

16 FERS coverage (and earnings on such

17 contributions) may remain in the Thrift

18 Savings Fund in accordance with regula19 tions prescribed by the Executive Director,

20 notwithstanding any limit that would oth21 erwise be applicable.

22 (B) PREVIOUS SETTLEMENT PAYMENT.—

23 An individual who previously received a pay24 ment ordered by a court or provided as a settle25 ment of claim for losses resulting from a retire-
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1 ment coverage error shall not be entitled to

2 make an election under this subsection unless

3 that amount is waived in whole or in part under

4 section 208, and any amount not waived is re5 paid.

6 (C) INELIGIBILITY FOR ELECTION.—An

7 individual who, subsequent to correction of the

8 retirement coverage error, received a refund of

9 retirement deductions under section 8424 of

10 title 5, United States Code, or a distribution

11 under section 8433 (b), (c), or (h)(1)(A) of title

12 5, United States Code, may not make an elec13 tion under this subsection.

14 (3) CORRECTIVE ACTION TO REMAIN IN EF15 FECT.—If an individual is ineligible to make an elec16 tion or does not make an election under paragraph

17 (2) before the end of any time limitation under this

18 subsection, the corrective action taken before such

19 time limitation shall remain in effect.

20 SEC. 102. ANNUITANTS AND SURVIVORS.

21 (a) IN GENERAL.—This section shall apply in the

22 case of an individual who is—

23 (1) an annuitant who should have been FERS

24 covered but, as a result of a retirement coverage
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1 error, was CSRS covered or CSRS-Offset covered in2 stead; or

3 (2) a survivor of an employee who should have

4 been FERS covered but, as a result of a retirement

5 coverage error, was CSRS covered or CSRS-Offset

6 covered instead.

7 (b) COVERAGE.—

8 (1) ELECTION.—Not later than 180 days after

9 the date of enactment of this Act, the Office shall

10 prescribe regulations authorizing an individual de11 scribed under subsection (a) to elect CSRS-Offset

12 coverage or FERS coverage, effective as of the date

13 of the retirement coverage error.

14 (2) TIME LIMITATION.—An election under this

15 subsection shall be made not later than 18 months

16 after the effective date of the regulations prescribed

17 under paragraph (1).

18 (3) REDUCED ANNUITY.—

19 (A) AMOUNT IN ACCOUNT.—If the indi20 vidual elects CSRS-Offset coverage, the amount

21 in the employee’s Thrift Savings Fund account

22 under subchapter III of chapter 84 of title 5,

23 United States Code, on the date of retirement

24 that represents the Government’s contributions

25 and earnings on those contributions (whether or
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1 not such amount was subsequently distributed

2 from the Thrift Savings Fund) will form the

3 basis for a reduction in the individual’s annuity,

4 under regulations prescribed by the Office.

5 (B) REDUCTION.—The reduced annuity to

6 which the individual is entitled shall be equal to

7 an amount which, when taken together with the

8 amount referred to in subparagraph (A), would

9 result in the present value of the total being ac10 tuarially equivalent to the present value of an

11 unreduced CSRS-Offset annuity that would

12 have been provided the individual.

13 (4) REDUCED BENEFIT.—If—

14 (A) a surviving spouse elects CSRS-Offset

15 benefits; and

16 (B) a FERS basic employee death benefit

17 under section 8442(b) of title 5, United States

18 Code, was previously paid;

19 then the survivor’s CSRS-Offset benefit shall be sub20 ject to a reduction, under regulations prescribed by

21 the Office. The reduced annuity to which the indi22 vidual is entitled shall be equal to an amount which,

23 when taken together with the amount of the pay24 ment referred to under subparagraph (B) would re25 sult in the present value of the total being actuari-
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1 ally equivalent to the present value of an unreduced

2 CSRS-Offset annuity that would have been provided

3 the individual.

4 (5) PREVIOUS SETTLEMENT PAYMENT.—An in5 dividual who previously received a payment ordered

6 by a court or provided as a settlement of claim for

7 losses resulting from a retirement coverage error

8 may not make an election under this subsection un9 less repayment of that amount is waived in whole or

10 in part under section 208, and any amount not

11 waived is repaid.

12 (c) NONELECTION.—If the individual does not make

13 an election under subsection (b) before any time limitation

14 under this section, the retirement coverage shall be subject

15 to the following rules:

16 (1) CORRECTIVE ACTION PREVIOUSLY

17 TAKEN.—If corrective action was taken before the

18 end of any time limitation under this section, that

19 corrective action shall remain in effect.

20 (2) CORRECTIVE ACTION NOT PREVIOUSLY

21 TAKEN.—If corrective action was not taken before

22 such time limitation, the employee shall be CSRS23 Offset covered, retroactive to the date of the retire24 ment coverage error.
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1 Subtitle B—Employee Who Should

2 Have Been FERS Covered,

3 CSRS-Offset Covered, or CSRS

4 Covered, but Who Was Erro5 neously Social Security-Only

6 Covered Instead

7 SEC. 111. APPLICABILITY.

8 This subtitle shall apply in the case of any employee

9 who—

10 (1) should be (or should have been) FERS cov11 ered but, as a result of a retirement coverage error,

12 is (or was) Social Security-Only covered instead;

13 (2) should be (or should have been) CSRS-Off14 set covered but, as a result of a retirement coverage

15 error, is (or was) Social Security-Only covered in16 stead; or

17 (3) should be (or should have been) CSRS cov18 ered but, as a result of a retirement coverage error,

19 is (or was) Social Security-Only covered instead.

20 SEC. 112. CORRECTION MANDATORY.

21 (a) UNCORRECTED ERROR.—If the retirement cov22 erage error has not been corrected, as soon as practicable

23 after discovery of the error, such individual shall be cov24 ered under the correct retirement coverage, effective as of

25 the date of the retirement coverage error.
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1 (b) CORRECTED ERROR.—If the retirement coverage

2 error has been corrected, the corrective action previously

3 taken shall remain in effect.

4 Subtitle C—Employee Who Should

5 or Could Have Been Social Se6 curity-Only Covered but Who

7 Was Erroneously CSRS-Offset

8 Covered or CSRS Covered In9 stead

10 SEC. 121. EMPLOYEE WHO SHOULD BE SOCIAL SECURITY11 ONLY COVERED, BUT WHO IS ERRONEOUSLY

12 CSRS OR CSRS-OFFSET COVERED INSTEAD.

13 (a) APPLICABILITY.—This section applies in the case

14 of a retirement coverage error in which a Social Security15 Only covered employee was erroneously CSRS covered or

16 CSRS-Offset covered.

17 (b) UNCORRECTED ERROR.—

18 (1) APPLICABILITY.—This subsection applies if

19 the retirement coverage error has not been corrected

20 before the effective date of the regulations described

21 in paragraph (3).

22 (2) COVERAGE.—In the case of an individual

23 who is erroneously CSRS covered, as soon as prac24 ticable after discovery of the error, and subject to

25 the right of an election under paragraph (3), such
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1 individual shall be CSRS-Offset covered, effective as

2 of the date of the retirement coverage error.

3 (3) ELECTION.—

4 (A) IN GENERAL.—Upon written notice of

5 a retirement coverage error, an individual may

6 elect to be CSRS-Offset covered or Social Secu7 rity-Only covered, effective as of the date of the

8 retirement coverage error. Such election shall

9 be made not later than 180 days after the date

10 of receipt of such notice.

11 (B) NONELECTION.—If the individual does

12 not make an election before the date provided

13 under subparagraph (A), the individual shall re14 main CSRS-Offset covered.

15 (C) REGULATIONS.—The Office shall pre16 scribe regulations to carry out this paragraph.

17 (c) CORRECTED ERROR.—

18 (1) APPLICABILITY.—This subsection applies if

19 the retirement coverage error was corrected before

20 the effective date of the regulations described under

21 subsection (b)(3).

22 (2) ELECTION.—Not later than 180 days after

23 the date of enactment of this Act, the Office shall

24 prescribe regulations authorizing individuals to elect,

25 during the 18-month period immediately following
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1 the effective date of such regulations, to be CSRS2 Offset covered or Social Security-Only covered, effec3 tive as of the date of the retirement coverage error.

4 (3) NONELECTION.—If an eligible individual

5 does not make an election under paragraph (2) be6 fore the end of any time limitation under this sub7 section, the corrective action taken before such time

8 limitation shall remain in effect.

9 Subtitle D—Employee Who Was

10 Erroneously FERS Covered

11 SEC. 131. EMPLOYEE WHO SHOULD BE SOCIAL SECURITY12 ONLY COVERED, CSRS COVERED, OR CSRS13 OFFSET COVERED AND IS NOT FERS-ELIGI14 BLE, BUT WHO IS ERRONEOUSLY FERS COV15 ERED INSTEAD.

16 (a) APPLICABILITY.—This section applies in the case

17 of a retirement coverage error in which a Social Security18 Only covered, CSRS covered, or CSRS-Offset covered em19 ployee not eligible to elect FERS coverage under authority

20 of section 8402(c) of title 5, United States Code, was erro21 neously FERS covered.

22 (b) UNCORRECTED ERROR.—

23 (1) APPLICABILITY.—This subsection applies if

24 the retirement coverage error has not been corrected
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1 before the effective date of the regulations described

2 in paragraph (2).

3 (2) COVERAGE.—

4 (A) ELECTION.—

5 (i) IN GENERAL.—Upon written notice

6 of a retirement coverage error, an indi7 vidual may elect to remain FERS covered

8 or to be Social Security-Only covered,

9 CSRS covered, or CSRS-Offset covered, as

10 would have applied in the absence of the

11 erroneous retirement coverage determina12 tion, effective as of the date of the retire13 ment coverage error. Such election shall be

14 made not later than 180 days after the

15 date of receipt of such notice.

16 (ii) TREATMENT OF FERS ELEC17 TION.—An election of FERS coverage

18 under this subsection is deemed to be an

19 election under section 301 of the Federal

20 Employees Retirement System Act of 1986

21 (5 U.S.C. 8331 note; Public Law 99–335;

22 100 Stat. 599).

23 (B) NONELECTION.—If the individual does

24 not make an election before the date provided

25 under subparagraph (A), the individual shall re-
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1 main FERS covered, effective as of the date of

2 the retirement coverage error.

3 (3) EMPLOYEE CONTRIBUTIONS IN THRIFT SAV4 INGS FUND.—If under this section, an individual

5 elects to be Social Security-Only covered, CSRS cov6 ered, or CSRS-Offset covered, all employee contribu7 tions to the Thrift Savings Fund made during the

8 period of erroneous FERS coverage (and all earn9 ings on such contributions) may remain in the

10 Thrift Savings Fund in accordance with regulations

11 prescribed by the Executive Director, notwith12 standing any limit under section 8351 or 8432 of

13 title 5, United States Code.

14 (4) REGULATIONS.—Except as provided under

15 paragraph (3), the Office shall prescribe regulations

16 to carry out this subsection.

17 (c) CORRECTED ERROR.—

18 (1) APPLICABILITY.—This subsection applies if

19 the retirement coverage error was corrected before

20 the effective date of the regulations described under

21 paragraph (2).

22 (2) ELECTION.—Not later than 180 days after

23 the date of enactment of this Act, the Office shall

24 prescribe regulations authorizing individuals to elect,

25 during the 18-month period immediately following
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1 the effective date of such regulations to remain So2 cial Security-Only covered, CSRS covered, or CSRS3 Offset covered, or to be FERS covered, effective as

4 of the date of the retirement coverage error.

5 (3) NONELECTION.—If an eligible individual

6 does not make an election under paragraph (2), the

7 corrective action taken before the end of any time

8 limitation under this subsection shall remain in ef9 fect.

10 (4) TREATMENT OF FERS ELECTION.—An elec11 tion of FERS coverage under this subsection is

12 deemed to be an election under section 301 of the

13 Federal Employees Retirement System Act of 1986

14 (5 U.S.C. 8331 note; Public Law 99–335; 100 Stat.

15 599).

16 SEC. 132. FERS-ELIGIBLE EMPLOYEE WHO SHOULD HAVE

17 BEEN CSRS COVERED, CSRS-OFFSET COV18 ERED, OR SOCIAL SECURITY-ONLY COVERED,

19 BUT WHO WAS ERRONEOUSLY FERS COV20 ERED INSTEAD WITHOUT AN ELECTION.

21 (a) IN GENERAL.—

22 (1) FERS ELECTION PREVENTED.—If an indi23 vidual was prevented from electing FERS coverage

24 because the individual was erroneously FERS cov25 ered during the period when the individual was eligi-
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1 ble to elect FERS under title III of the Federal Em2 ployees Retirement System Act or the Federal Em3 ployees’ Retirement System Open Enrollment Act of

4 1997 (Public Law 105–61; 111 Stat. 1318 et seq.),

5 the individual—

6 (A) is deemed to have elected FERS cov7 erage; and

8 (B) shall remain covered by FERS, unless

9 the individual declines, under regulations pre10 scribed by the Office, to be FERS covered.

11 (2) DECLINING FERS COVERAGE.—If an indi12 vidual described under paragraph (1)(B) declines to

13 be FERS covered, such individual shall be CSRS

14 covered, CSRS-Offset covered, or Social Security15 Only covered, as would apply in the absence of a

16 FERS election, effective as of the date of the erro17 neous retirement coverage determination.

18 (b) EMPLOYEE CONTRIBUTIONS IN THRIFT SAVINGS

19 FUND.—If under this section, an individual declines to be

20 FERS covered and instead is Social Security-Only cov21 ered, CSRS covered, or CSRS-Offset covered, as would

22 apply in the absence of a FERS election, all employee con23 tributions to the Thrift Savings Fund made during the

24 period of erroneous FERS coverage (and all earnings on

25 such contributions) may remain in the Thrift Savings
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1 Fund in accordance with regulations prescribed by the Ex2 ecutive Director, notwithstanding any limit that would

3 otherwise be applicable.

4 (c) INAPPLICABILITY OF DURATION OF ERRONEOUS

5 COVERAGE.—This section shall apply regardless of the

6 length of time the erroneous coverage determination re7 mained in effect.

8 SEC. 133. RETROACTIVE EFFECT.

9 This subtitle shall be effective as of January 1, 1987,

10 except that section 132 shall not apply to individuals who

11 made or were deemed to have made elections similar to

12 those provided in this section under regulations prescribed

13 by the Office before the effective date of this Act.

14 Subtitle E—Employee Who Should

15 Have Been CSRS-Offset Cov16 ered, but Who Was Erroneously

17 CSRS Covered Instead

18 SEC. 141. APPLICABILITY.

19 This subtitle shall apply in the case of any employee

20 who should be (or should have been) CSRS-Offset covered

21 but, as a result of a retirement coverage error, is (or was)

22 CSRS covered instead.

23 SEC. 142. CORRECTION MANDATORY.

24 (a) UNCORRECTED ERROR.—If the retirement cov25 erage error has not been corrected, as soon as practicable
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1 after discovery of the error, such individual shall be cov2 ered under the correct retirement coverage, effective as of

3 the date of the retirement coverage error.

4 (b) CORRECTED ERROR.—If the retirement coverage

5 error has been corrected before the effective date of this

6 Act, the corrective action taken before such date shall re7 main in effect.

8 Subtitle F—Employee Who Should

9 Have Been CSRS Covered, but

10 Who Was Erroneously CSRS-Off11 set Covered Instead

12 SEC. 151. APPLICABILITY.

13 This subtitle shall apply in the case of any employee

14 who should be (or should have been) CSRS covered but,

15 as a result of a retirement coverage error, is (or was)

16 CSRS-Offset covered instead.

17 SEC. 152. CORRECTION MANDATORY.

18 (a) UNCORRECTED ERROR.—If the retirement cov19 erage error has not been corrected, as soon as practicable

20 after discovery of the error, such individual shall be cov21 ered under the correct retirement coverage, effective as of

22 the date of the retirement coverage error.

23 (b) CORRECTED ERROR.—If the retirement coverage

24 error has been corrected before the effective date of this
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1 Act, the corrective action taken before such date shall re2 main in effect.

3 TITLE II—GENERAL PROVISIONS

4 SEC. 201. IDENTIFICATION AND NOTIFICATION REQUIRE5 MENTS.

6 Government agencies shall take all such measures as

7 may be reasonable and appropriate to promptly identify

8 and notify individuals who are (or have been) affected by

9 a retirement coverage error of their rights under this Act.

10 SEC. 202. INFORMATION TO BE FURNISHED TO AND BY AU11 THORITIES ADMINISTERING THIS ACT.

12 (a) APPLICABILITY.—The authorities identified in

13 this subsection are—

14 (1) the Director of the Office of Personnel

15 Management;

16 (2) the Commissioner of Social Security; and

17 (3) the Executive Director of the Federal Re18 tirement Thrift Investment Board.

19 (b) AUTHORITY TO OBTAIN INFORMATION.—Each

20 authority identified in subsection (a) may secure directly

21 from any department or agency of the United States infor22 mation necessary to enable such authority to carry out its

23 responsibilities under this Act. Upon request of the au24 thority involved, the head of the department or agency in-
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1 volved shall furnish that information to the requesting au2 thority.

3 (c) AUTHORITY TO PROVIDE INFORMATION.—Each

4 authority identified in subsection (a) may provide directly

5 to any department or agency of the United States all in6 formation such authority believes necessary to enable the

7 department or agency to carry out its responsibilities

8 under this Act.

9 (d) LIMITATION; SAFEGUARDS.—Each of the respec10 tive authorities under subsection (a) shall—

11 (1) request or provide only such information as

12 that authority considers necessary; and

13 (2) establish, by regulation or otherwise, appro14 priate safeguards to ensure that any information ob15 tained under this section shall be used only for the

16 purpose authorized.

17 SEC. 203. SERVICE CREDIT DEPOSITS.

18 (a) CSRS DEPOSIT.—In the case of a retirement cov19 erage error in which—

20 (1) a FERS covered employee was erroneously

21 CSRS covered or CSRS-Offset covered;

22 (2) the employee made a service credit deposit

23 under the CSRS rules; and

24 (3) there is a subsequent retroactive change to

25 FERS coverage;
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1 the excess of the amount of the CSRS civilian or military

2 service credit deposit over the FERS civilian or military

3 service credit deposit, together with interest computed in

4 accordance with paragraphs (2) and (3) of section 8334(e)

5 of title 5, United States Code, and regulations prescribed

6 by the Office, shall be paid to the employee, the annuitant

7 or, in the case of a deceased employee, to the individual

8 entitled to lump-sum benefits under section 8424(d) of

9 title 5, United States Code.

10 (b) FERS DEPOSIT.—

11 (1) APPLICABILITY.—This subsection applies in

12 the case of an erroneous retirement coverage deter13 mination in which—

14 (A) the employee owed a service credit de15 posit under section 8411(f) of title 5, United

16 States Code; and

17 (B)(i) there is a subsequent retroactive

18 change to CSRS or CSRS-Offset coverage; or

19 (ii) the service becomes creditable under

20 chapter 83 of title 5, United States Code.

21 (2) REDUCED ANNUITY.—

22 (A) IN GENERAL.—If at the time of com23 mencement of an annuity there is remaining

24 unpaid CSRS civilian or military service credit

25 deposit for service described under paragraph
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1 (1), the annuity shall be reduced based upon

2 the amount unpaid together with interest com3 puted in accordance with section 8334(e) (2)

4 and (3) of title 5, United States Code, and reg5 ulations prescribed by the Office.

6 (B) AMOUNT.—The reduced annuity to

7 which the individual is entitled shall be equal to

8 an amount that, when taken together with the

9 amount referred to under subparagraph (A),

10 would result in the present value of the total

11 being actuarially equivalent to the present value

12 of the unreduced annuity benefit that would

13 have been provided the individual.

14 (3) SURVIVOR ANNUITY.—

15 (A) IN GENERAL.—If at the time of com16 mencement of a survivor annuity, there is re17 maining unpaid any CSRS service credit de18 posit described under paragraph (1), and there

19 has been no actuarial reduction in an annuity

20 under paragraph (2), the survivor annuity shall

21 be reduced based upon the amount unpaid to22 gether with interest computed in accordance

23 with section 8334(e) (2) and (3) of title 5,

24 United States Code, and regulations prescribed

25 by the Office.
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1 (B) AMOUNT.—The reduced survivor an2 nuity to which the individual is entitled shall be

3 equal to an amount that, when taken together

4 with the amount referred to under subpara5 graph (A), would result in the present value of

6 the total being actuarially equivalent to the

7 present value of an unreduced survivor annuity

8 benefit that would have been provided the indi9 vidual.

10 SEC. 204. PROVISIONS RELATED TO SOCIAL SECURITY COV11 ERAGE OF MISCLASSIFIED EMPLOYEES.

12 (a) DEFINITIONS.—In this section, the term—

13 (1) ‘‘covered individual’’ means any employee,

14 former employee, or annuitant who—

15 (A) is or was employed erroneously subject

16 to CSRS coverage as a result of a retirement

17 coverage error; and

18 (B) is or was retroactively converted to

19 CSRS-offset coverage, FERS coverage, or So20 cial Security-only coverage; and

21 (2) ‘‘excess CSRS deduction amount’’ means an

22 amount equal to the difference between the CSRS

23 deductions withheld and the CSRS-Offset or FERS

24 deductions, if any, due with respect to a covered in25 dividual during the entire period the individual was
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1 erroneously subject to CSRS coverage as a result of

2 a retirement coverage error.

3 (b) REPORTS TO COMMISSIONER OF SOCIAL SECU4 RITY.—

5 (1) IN GENERAL.—In order to carry out the

6 Commissioner of Social Security’s responsibilities

7 under title II of the Social Security Act, the Com8 missioner may request the head of each agency that

9 employs or employed a covered individual to report

10 (in coordination with the Office of Personnel Man11 agement) in such form and within such timeframe as

12 the Commissioner may specify, any or all of—

13 (A) the total wages (as defined in section

14 3121(a) of the Internal Revenue Code of 1986)

15 paid to such individual during each year of the

16 entire period of the erroneous CSRS coverage;

17 and

18 (B) such additional information as the

19 Commissioner may require for the purpose of

20 carrying out the Commissioner’s responsibilities

21 under title II of the Social Security Act (42

22 U.S.C. 401 et seq.).

23 (2) COMPLIANCE.—The head of an agency or

24 the Office shall comply with a request from the

25 Commissioner under paragraph (1).
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1 (3) WAGES.—For purposes of section 201 of

2 the Social Security Act (42 U.S.C. 401), wages re3 ported under this subsection shall be deemed to be

4 wages reported to the Secretary of the Treasury or

5 the Secretary’s delegates pursuant to subtitle F of

6 the Internal Revenue Code of 1986.

7 (c) PAYMENT RELATING TO OASDI EMPLOYEE

8 TAXES.—

9 (1) IN GENERAL.—The Office shall transfer

10 from the Civil Service Retirement and Disability

11 Fund to the General Fund of the Treasury an

12 amount equal to the lesser of the excess CSRS de13 duction amount or the OASDI taxes due for covered

14 individuals (as adjusted by amounts transferred re15 lating to applicable OASDI employee taxes as a re16 sult of corrections made, including corrections made

17 before the date of enactment of this Act). If the ex18 cess CSRS deductions exceed the OASDI taxes, any

19 difference shall be paid to the covered individual or

20 survivors, as appropriate.

21 (2) TRANSFER.—Amounts transferred under

22 this subsection shall be determined notwithstanding

23 any limitation under section 6501 of the Internal

24 Revenue Code of 1986.

25 (d) PAYMENT OF OASDI EMPLOYER TAXES.—
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1 (1) IN GENERAL.—Each employing agency shall

2 pay an amount equal to the OASDI employer taxes

3 owed with respect to covered individuals during the

4 applicable period of erroneous coverage (as adjusted

5 by amounts transferred for the payment of such

6 taxes as a result of corrections made, including cor7 rections made before the date of enactment of this

8 Act).

9 (2) PAYMENT.—Amounts paid under this sub10 section shall be determined subject to any limitation

11 under section 6501 of the Internal Revenue Code of

12 1986.

13 (e) APPLICATION OF OASDI TAX PROVISIONS OF

14 THE INTERNAL REVENUE CODE OF 1986 TO AFFECTED

15 INDIVIDUALS AND EMPLOYING AGENCIES.—A covered in16 dividual and the individual’s employing agency shall be

17 deemed to have fully satisfied in a timely manner their

18 responsibilities with respect to the taxes imposed by sec19 tions 3101(a), 3102(a), and 3111(a) of the Internal Rev20 enue Code of 1986 on the wages paid by the employing

21 agency to such individual during the entire period such

22 individual was erroneously subject to CSRS coverage as

23 a result of a retirement coverage error based on the pay24 ments and transfers made under subsections (c) and (d).
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1 No credit or refund of taxes on such wages shall be al2 lowed as a result of this subsection.

3 SEC. 205. THRIFT SAVINGS PLAN TREATMENT FOR CER4 TAIN INDIVIDUALS.

5 (a) APPLICABILITY.—This section applies to an indi6 vidual who—

7 (1) is eligible to make an election of coverage

8 under section 101 or 102, and only if FERS cov9 erage is elected (or remains in effect) for the em10 ployee involved; or

11 (2) is described in section 111, and makes or

12 has made retroactive employee contributions to the

13 Thrift Savings Fund under regulations prescribed by

14 the Executive Director.

15 (b) PAYMENT INTO THRIFT SAVINGS FUND.—

16 (1) IN GENERAL.—

17 (A) PAYMENT.—With respect to an indi18 vidual to whom this section applies, the employ19 ing agency shall pay to the Thrift Savings

20 Fund under subchapter III of chapter 84 of

21 title 5, United States Code, for credit to the ac22 count of the employee involved, an amount

23 equal to the earnings which are disallowed

24 under section 8432a(a)(2) of such title on the
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1 employee’s retroactive contributions to such

2 Fund.

3 (B) AMOUNT.—Earnings under subpara4 graph (A) shall be computed in accordance with

5 the procedures for computing lost earnings

6 under section 8432a of title 5, United States

7 Code. The amount paid by the employing agen8 cy shall be treated for all purposes as if that

9 amount had actually been earned on the basis

10 of the employee’ s contributions.

11 (C) EXCEPTIONS.—If an individual made

12 retroactive contributions before the effective

13 date of the regulations under section 101(c),

14 the Director may provide for an alternative cal15 culation of lost earnings to the extent that a

16 calculation under subparagraph (B) is not ad17 ministratively feasible. The alternative calcula18 tion shall yield an amount that is as close as

19 practicable to the amount computed under sub20 paragraph (B), taking into account earnings

21 previously paid.

22 (2) ADDITIONAL EMPLOYEE CONTRIBUTION.—

23 In cases in which the retirement coverage error was

24 corrected before the effective date of the regulations

25 under section 101(c), the employee involved shall
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1 have an additional opportunity to make retroactive

2 contributions for the period of the retirement cov3 erage error (subject to applicable limits), and such

4 contributions (including any contributions made

5 after the date of the correction) shall be treated in

6 accordance with paragraph (1).

7 (c) REGULATIONS.—

8 (1) EXECUTIVE DIRECTOR.—The Executive Di9 rector shall prescribe regulations appropriate to

10 carry out this section relating to retroactive em11 ployee contributions and payments made on or after

12 the effective date of the regulations under section

13 101(c).

14 (2) OFFICE.—The Office, in consultation with

15 the Federal Retirement Thrift Investment Board,

16 shall prescribe regulations appropriate to carry out

17 this section relating to the calculation of lost earn18 ings on retroactive employee contributions made be19 fore the effective date of the regulations under sec20 tion 101(c).

21 SEC. 206. CERTAIN AGENCY AMOUNTS TO BE PAID INTO OR

22 REMAIN IN THE CSRDF.

23 (a) CERTAIN EXCESS AGENCY CONTRIBUTIONS TO

24 REMAIN IN THE CSRDF.—
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1 (1) IN GENERAL.—Any amount described under

2 paragraph (2) shall—

3 (A) remain in the CSRDF; and

4 (B) may not be paid or credited to an

5 agency.

6 (2) AMOUNTS.—Paragraph (1) refers to any

7 amount of contributions made by an agency under

8 section 8423 of title 5, United States Code, on be9 half of any employee, former employee, or annuitant

10 (or survivor of such employee, former employee, or

11 annuitant) who makes an election to correct a retire12 ment coverage error under this Act, that the Office

13 determines to be excess as a result of such election.

14 (b) ADDITIONAL EMPLOYEE RETIREMENT DEDUC15 TIONS TO BE PAID BY AGENCY.—If a correction in a re16 tirement coverage error results in an increase in employee

17 deductions under section 8334 or 8422 of title 5, United

18 States Code, that cannot be fully paid by a reallocation

19 of otherwise available amounts previously deducted from

20 the employee’s pay as employment taxes or retirement de21 ductions, the employing agency—

22 (1) shall pay the required additional amount

23 into the CSRDF; and
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1 (2) shall not seek repayment of that amount

2 from the employee, former employee, annuitant, or

3 survivor.

4 SEC. 207. CSRS COVERAGE DETERMINATIONS TO BE AP5 PROVED BY OPM.

6 No agency shall place an individual under CSRS cov7 erage unless—

8 (1) the individual has been employed with

9 CSRS coverage within the preceding 365 days; or

10 (2) the Office has agreed in writing that the

11 agency’s coverage determination is correct.

12 SEC. 208. DISCRETIONARY ACTIONS BY DIRECTOR.

13 (a) IN GENERAL.—The Director of the Office of Per14 sonnel Management may—

15 (1) extend the deadlines for making elections

16 under this Act in circumstances involving an individ17 ual’s inability to make a timely election due to a

18 cause beyond the individual’s control;

19 (2) provide for the reimbursement of necessary

20 and reasonable expenses incurred by an individual

21 with respect to settlement of a claim for losses re22 sulting from a retirement coverage error, including

23 attorney’s fees, court costs, and other actual ex24 penses;
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1 (3) compensate an individual for monetary

2 losses that are a direct and proximate result of a re3 tirement coverage error, excluding claimed losses re4 lating to forgone contributions and earnings under

5 the Thrift Savings Plan under subchapter III of

6 chapter 84 of title 5, United States Code, and all

7 other investment opportunities; and

8 (4) waive payments required due to correction

9 of a retirement coverage error under this Act.

10 (b) SIMILAR ACTIONS.—In exercising the authority

11 under this section, the Director shall, to the extent prac12 ticable, provide for similar actions in situations involving

13 similar circumstances.

14 (c) JUDICIAL REVIEW.—Actions taken under this

15 section are final and conclusive, and are not subject to

16 administrative or judicial review.

17 (d) REGULATIONS.—The Office of Personnel Man18 agement shall prescribe regulations regarding the process

19 and criteria used in exercising the authority under this

20 section.

21 (e) REPORT.—The Office of Personnel Management

22 shall, not later than 180 days after the date of enactment

23 of this Act, and annually thereafter for each year in which

24 the authority provided in this section is used, submit a
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1 report to each House of Congress on the operation of this

2 section.

3 SEC. 209. REGULATIONS.

4 (a) IN GENERAL.—In addition to the regulations spe5 cifically authorized in this Act, the Office may prescribe

6 such other regulations as are necessary for the administra7 tion of this Act.

8 (b) FORMER SPOUSE.—The regulations prescribed

9 under this Act shall provide for protection of the rights

10 of a former spouse with entitlement to an apportionment

11 of benefits or to survivor benefits based on the service of

12 the employee.

13 TITLE III—OTHER PROVISIONS

14 SEC. 301. PROVISIONS TO AUTHORIZE CONTINUED CON15 FORMITY OF OTHER FEDERAL RETIREMENT

16 SYSTEMS.

17 (a) FOREIGN SERVICE.—Sections 827 and 851 of the

18 Foreign Service Act of 1980 (22 U.S.C. 4067 and 4071)

19 shall apply with respect to this Act in the same manner

20 as if this Act were part of—

21 (1) the Civil Service Retirement System, to the

22 extent this Act relates to the Civil Service Retire23 ment System; and
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1 (2) the Federal Employees’ Retirement System,

2 to the extent this Act relates to the Federal Employ3 ees’ Retirement System.

4 (b) CENTRAL INTELLIGENCE AGENCY.—Sections

5 292 and 301 of the Central Intelligence Agency Retire6 ment Act (50 U.S.C. 2141 and 2151) shall apply with re7 spect to this Act in the same manner as if this Act were

8 part of—

9 (1) the Civil Service Retirement System, to the

10 extent this Act relates to the Civil Service Retire11 ment System; and

12 (2) the Federal Employees’ Retirement System,

13 to the extent this Act relates to the Federal Employ14 ees’ Retirement System.

15 SEC. 302. AUTHORIZATION OF PAYMENTS.

16 All payments authorized or required by this Act to

17 be paid from the Civil Service Retirement and Disability

18 Fund, together with administrative expenses incurred by

19 the Office in administering this Act, shall be deemed to

20 have been authorized to be paid from that Fund, which

21 is appropriated for the payment thereof.
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1 SEC. 303. INDIVIDUAL RIGHT OF ACTION PRESERVED FOR

2 AMOUNTS NOT OTHERWISE PROVIDED FOR

3 UNDER THIS ACT.

4 Nothing in this Act shall preclude an individual from

5 bringing a claim against the Government of the United

6 States which such individual may have under section

7 1346(b) or chapter 171 of title 28, United States Code,

8 or any other provision of law (except to the extent the

9 claim is for any amounts otherwise provided for under this

10 Act).

11 TITLE IV—TAX PROVISIONS

12 SEC. 401. TAX PROVISIONS.

13 (a) PLAN QUALIFICATION.—No retirement plan of

14 the United States (or any agency thereof) shall fail to be

15 treated as a qualified plan under the Internal Revenue

16 Code of 1986 by reason of—

17 (1) any failure to follow plan terms as ad18 dressed by this Act; or

19 (2) any action taken under this Act.

20 (b) TRANSFERS.—For purposes of the Internal Rev21 enue Code of 1986, no amount shall be includible in the

22 gross income of any individual in any tax year by reason

23 of any direct transfer under this Act between funds or any

24 Government contribution under this Act to any fund or

25 account in any such tax year.
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1 TITLE V—MISCELLANEOUS

2 RETIREMENT PROVISIONS

3 SEC. 501. FEDERAL RESERVE BOARD PORTABILITY OF

4 SERVICE CREDIT.

5 (a) CREDITABLE SERVICE.—

6 (1) IN GENERAL.—Section 8411(b) of title 5,

7 United States Code, is amended—

8 (A) by striking ‘‘and’’ at the end of para9 graph (3);

10 (B) in paragraph (4)—

11 (i) by striking ‘‘of the preceding provi12 sions’’ and inserting ‘‘other paragraph’’;

13 and

14 (ii) by striking the period at the end

15 and inserting ‘‘; and’’; and

16 (C) by adding at the end the following:

17 ‘‘(5) a period of service (other than any service

18 under any other paragraph of this subsection, any

19 military service, and any service performed in the

20 employ of a Federal Reserve Bank) that was cred21 itable under the Bank plan (as defined in subsection

22 (i)), if the employee waives credit for such service

23 under the Bank plan and makes a payment to the

24 Fund equal to the amount that would have been de25 ducted from pay under section 8422(a) had the em-
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1 ployee been subject to this chapter during such pe2 riod of service (together with interest on such

3 amount computed under paragraphs (2) and (3) of

4 section 8334(e)).

5 Paragraph (5) shall not apply in the case of any employee

6 as to whom subsection (g) (or, to the extent subchapter

7 III of chapter 83 is involved, section 8332(n)) otherwise

8 applies.’’.

9 (2) BANK PLAN DEFINED.—Section 8411 of

10 title 5, United States Code, is amended by adding

11 at the end the following:

12 ‘‘(i) For purposes of subsection (b)(5), the term

13 ‘Bank plan’ means the benefit structure—

14 ‘‘(1) in which employees of the Board of Gov15 ernors of the Federal Reserve System appointed on

16 or after January 1, 1984, participate; and

17 ‘‘(2) that is a component of the Retirement

18 Plan for Employees of the Federal Reserve System,

19 established under section 10 of the Federal Reserve

20 Act (and any redesignated or successor version of

21 such benefit structure, if so identified in writing by

22 the Board of Governors of the Federal Reserve Sys23 tem for purposes of this chapter).’’.

24 (b) EXCLUSION FROM CHAPTER 84.—
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1 (1) IN GENERAL.—Paragraph (2) of section

2 8402(b) of title 5, United States Code, is amended

3 by striking the matter before subparagraph (B) and

4 inserting the following:

5 ‘‘(2)(A) any employee or Member who has sepa6 rated from the service after—

7 ‘‘(i) having been subject to—

8 ‘‘(I) subchapter III of chapter 83 of

9 this title;

10 ‘‘(II) subchapter I of chapter 8 of title

11 I of the Foreign Service Act of 1980 (22

12 U.S.C. 4041 et seq.); or

13 ‘‘(III) the benefit structure for em14 ployees of the Board of Governors of the

15 Federal Reserve System appointed before

16 January 1, 1984, that is a component of

17 the Retirement Plan for Employees of the

18 Federal Reserve System, established under

19 section 10 of the Federal Reserve Act; and

20 ‘‘(ii) having completed—

21 ‘‘(I) at least 5 years of civilian service

22 creditable under subchapter III of chapter

23 83 of this title;

24 ‘‘(II) at least 5 years of civilian serv25 ice creditable under subchapter I of chap-
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1 ter 8 of title I of the Foreign Service Act

2 of 1980 (22 U.S.C. 4041 et seq.); or

3 ‘‘(III) at least 5 years of civilian serv4 ice (other than any service performed in

5 the employ of a Federal Reserve Bank)

6 creditable under the benefit structure for

7 employees of the Board of Governors of

8 the Federal Reserve System appointed be9 fore January 1, 1984, that is a component

10 of the Retirement Plan for Employees of

11 the Federal Reserve System, established

12 under section 10 of the Federal Reserve

13 Act,

14 determined without regard to any deposit or re15 deposit requirement under either such sub16 chapter or under such benefit structure, or any

17 requirement that the individual become subject

18 to either such subchapter or to such benefit

19 structure after performing the service involved;

20 or’’.

21 (2) EXCEPTION.—Subsection (d) of section

22 8402 of title 5, United States Code, is amended to

23 read as follows:

24 ‘‘(d) Paragraph (2) of subsection (b) shall not apply

25 to an individual who—
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1 ‘‘(1) becomes subject to—

2 ‘‘(A) subchapter II of chapter 8 of title I

3 of the Foreign Service Act of 1980 (22 U.S.C.

4 4071 et seq.) (relating to the Foreign Service

5 Pension System) pursuant to an election; or

6 ‘‘(B) the benefit structure in which em7 ployees of the Board of Governors of the Fed8 eral Reserve System appointed on or after Jan9 uary 1, 1984, participate, which benefit struc10 ture is a component of the Retirement Plan for

11 Employees of the Federal Reserve System, es12 tablished under section 10 of the Federal Re13 serve Act (and any redesignated or successor

14 version of such benefit structure, if so identified

15 in writing by the Board of Governors of the

16 Federal Reserve System for purposes of this

17 chapter); and

18 ‘‘(2) subsequently enters a position in which,

19 but for paragraph (2) of subsection (b), such indi20 vidual would be subject to this chapter.’’.

21 (c) PROVISIONS RELATING TO CERTAIN FORMER

22 EMPLOYEES.—A former employee of the Board of Gov23 ernors of the Federal Reserve System who—

24 (1) has at least 5 years of civilian service (other

25 than any service performed in the employ of a Fed-
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1 eral Reserve Bank) creditable under the benefit

2 structure for employees of the Board of Governors

3 of the Federal Reserve System appointed before

4 January 1, 1984, that is a component of the Retire5 ment Plan for Employees of the Federal Reserve

6 System, established under section 10 of the Federal

7 Reserve Act;

8 (2) was subsequently employed subject to the

9 benefit structure in which employees of the Board of

10 Governors of the Federal Reserve System appointed

11 on or after January 1, 1984, participate, which ben12 efit structure is a component of the Retirement Plan

13 for Employees of the Federal Reserve System, estab14 lished under section 10 of the Federal Reserve Act

15 (and any redesignated or successor version of such

16 benefit structure, if so identified in writing by the

17 Board of Governors of the Federal Reserve System

18 for purposes of chapter 84 of title 5, United States

19 Code); and

20 (3) after service described in paragraph (2), be21 comes subject to and thereafter entitled to benefits

22 under chapter 84 of title 5, United States Code,

23 shall, for purposes of section 302 of the Federal Employ24 ees’ Retirement System Act of 1986 (5 U.S.C. 8331 note;

25 Public Law 99–335; 100 Stat. 601) be considered to have
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1 become subject to chapter 84 of title 5, United States

2 Code, pursuant to an election under section 301 of such

3 Act.

4 (d) EFFECTIVE DATE.—

5 (1) IN GENERAL.—Subject to paragraphs (2)

6 and (3), this section and the amendments made by

7 this section shall take effect on the date of enact8 ment of this Act.

9 (2) PROVISIONS RELATING TO CREDITABILITY

10 AND CERTAIN FORMER EMPLOYEES.—The amend11 ments made by subsection (a) and the provisions of

12 subsection (c) shall apply only to individuals who

13 separate from service subject to chapter 84 of title

14 5, United States Code, on or after the date of enact15 ment of this Act.

16 (3) PROVISIONS RELATING TO EXCLUSION

17 FROM CHAPTER.—The amendments made by sub18 section (b) shall not apply to any former employee

19 of the Board of Governors of the Federal Reserve

20 System who, subsequent to his or her last period of

21 service as an employee of the Board of Governors of

22 the Federal Reserve System and prior to the date of

23 enactment of this Act, became subject to subchapter

24 III of chapter 83 or chapter 84 of title 5, United
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1 States Code, under the law in effect at the time of

2 the individual’s appointment.

3 SEC. 502. CERTAIN TRANSFERS TO BE TREATED AS A SEPA4 RATION FROM SERVICE FOR PURPOSES OF

5 THE THRIFT SAVINGS PLAN.

6 (a) AMENDMENTS TO CHAPTER 84 OF TITLE 5,

7 UNITED STATES CODE.—

8 (1) IN GENERAL.—Subchapter III of chapter

9 84 of title 5, United States Code, is amended by in10 serting before section 8432 the following:

11 ‘‘§ 8431. Certain transfers to be treated as a separa12 tion

13 ‘‘(a) For purposes of this subchapter, separation

14 from Government employment includes a transfer from a

15 position that is subject to one of the retirement systems

16 described in subsection (b) to a position that is not subject

17 to any such system.

18 ‘‘(b) The retirement systems described in this sub19 section are—

20 ‘‘(1) the retirement system under this chapter;

21 ‘‘(2) the retirement system under subchapter

22 III of chapter 83; and

23 ‘‘(3) any other retirement system under which

24 individuals may contribute to the Thrift Savings

25 Fund through withholdings from pay.’’.
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1 (2) CLERICAL AMENDMENT.—The table of sec2 tions for chapter 84 of title 5, United States Code,

3 is amended by inserting before the item relating to

4 section 8432 the following:

‘‘8431. Certain transfers to be treated as a separation.’’.

5 (b) CONFORMING AMENDMENTS.—Subsection (b) of

6 section 8351 of title 5, United States Code, is amended

7 by redesignating paragraph (11) as paragraph (8), and

8 by adding at the end the following:

9 ‘‘(9) For the purpose of this section, separation

10 from Government employment includes a transfer

11 described in section 8431.’’.

12 (c) EFFECTIVE DATE.—The amendments made by

13 this section shall apply with respect to transfers occurring

14 before, on, or after the date of enactment of this Act, ex15 cept that, for purposes of applying such amendments with

16 respect to any transfer occurring before such date of en17 actment, the date of such transfer shall be considered to

18 be the date of enactment of this Act. The Executive Direc19 tor (within the meaning of section 8401(13) of title 5,

20 United States Code) may prescribe any regulations nec21 essary to carry out this subsection.
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1 TITLE VI—EFFECTIVE DATE

2 SEC. 601. EFFECTIVE DATE.

3 Except as otherwise provided in this Act, this Act

4 shall take effect on the date of enactment of this Act.

Passed the Senate November 3, 1999.

Attest:

Secretary.
106TH CONGRESS

1ST SESSION S. 1232

AN ACT

To provide for the correction of retirement coverage

errors under chapters 83 and 84 of title 5,United States Code.