PUBLIC LAW 106–265—SEPT. 19, 2000

FEDERAL LONG-TERM CARE INSURANCE

114 STAT. 762 PUBLIC LAW 106–265—SEPT. 19, 2000

Public Law 106–265

106th Congress

An Act

To amend title 5, United States Code, to provide for the establishment of a program

under which long-term care insurance is made available to Federal employees,

members of the uniformed services, and civilian and military retirees, provide

for the correction of retirement coverage errors under chapters 83 and 84 of

such title, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

TITLE I—FEDERAL LONG-TERM CARE

INSURANCE

SEC. 1001. SHORT TITLE.

This title may be cited as the ‘‘Long-Term Care Security Act’’.

SEC. 1002. LONG-TERM CARE INSURANCE.

(a) IN GENERAL.—Subpart G of part III of title 5, United States

Code, is amended by adding at the end the following:

‘‘CHAPTER 90—LONG-TERM CARE INSURANCE

‘‘Sec.

‘‘9001. Definitions.

‘‘9002. Availability of insurance.

‘‘9003. Contracting authority.

‘‘9004. Financing.

‘‘9005. Preemption.

‘‘9006. Studies, reports, and audits.

‘‘9007. Jurisdiction of courts.

‘‘9008. Administrative functions.

‘‘9009. Cost accounting standards.

‘‘§ 9001. Definitions

For purposes of this chapter:

‘‘(1) EMPLOYEE.—The term ‘employee’ means—

‘‘(A) an employee as defined by section 8901(1);

‘‘(B) an individual described in section 2105(e); and

‘‘(C) an individual employed by the Tennessee Valley

Authority,

but does not include an individual employed by the government

of the District of Columbia.

‘‘(2) ANNUITANT.—The term ‘annuitant’ has the meaning

such term would have under paragraph (3) of section 8901

if, for purposes of such paragraph, the term ‘employee’ were

considered to have the meaning given to it under paragraph

(1) of this subsection.

5 USC 9001 note.

Long-Term Care

Security Act.

Sept. 19, 2000

[H.R. 4040]

PUBLIC LAW 106–265—SEPT. 19, 2000 114 STAT. 763

‘‘(3) MEMBER OF THE UNIFORMED SERVICES.—The term

‘member of the uniformed services’ means a member of the

uniformed services, other than a retired member of the uniformed services, who is—

‘‘(A) on active duty or full-time National Guard duty

for a period of more than 30 days; and

‘‘(B) a member of the Selected Reserve.

‘‘(4) RETIRED MEMBER OF THE UNIFORMED SERVICES.—The

term ‘retired member of the uniformed services’ means a

member or former member of the uniformed services entitled

to retired or retainer pay, including a member or former

member retired under chapter 1223 of title 10 who has attained

the age of 60 and who satisfies such eligibility requirements

as the Office of Personnel Management prescribes under section

9008.

‘‘(5) QUALIFIED RELATIVE.—The term ‘qualified relative’

means each of the following:

‘‘(A) The spouse of an individual described in paragraph

(1), (2), (3), or (4).

‘‘(B) A parent, stepparent, or parent-in-law of an individual described in paragraph (1) or (3).

‘‘(C) A child (including an adopted child, a stepchild,

or, to the extent the Office of Personnel Management by

regulation provides, a foster child) of an individual

described in paragraph (1), (2), (3), or (4), if such child

is at least 18 years of age.

‘‘(D) An individual having such other relationship to

an individual described in paragraph (1), (2), (3), or (4)

as the Office may by regulation prescribe.

‘‘(6) ELIGIBLE INDIVIDUAL.—The term ‘eligible individual’

refers to an individual described in paragraph (1), (2), (3),

(4), or (5).

‘‘(7) QUALIFIED CARRIER.—The term ‘qualified carrier’

means an insurance company (or consortium of insurance

companies) that is licensed to issue long-term care insurance

in all States, taking any subsidiaries of such a company into

account (and, in the case of a consortium, considering the

member companies and any subsidiaries thereof, collectively).

‘‘(8) STATE.—The term ‘State’ includes the District of

Columbia.

‘‘(9) QUALIFIED LONG-TERM CARE INSURANCE CONTRACT.—

The term ‘qualified long-term care insurance contract’ has the

meaning given such term by section 7702B of the Internal

Revenue Code of 1986.

‘‘(10) APPROPRIATE SECRETARY.—The term ‘appropriate Secretary’ means—

‘‘(A) except as otherwise provided in this paragraph,

the Secretary of Defense;

‘‘(B) with respect to the Coast Guard when it is not

operating as a service of the Navy, the Secretary of

Transportation;

‘‘(C) with respect to the commissioned corps of the

National Oceanic and Atmospheric Administration, the Secretary of Commerce; and

‘‘(D) with respect to the commissioned corps of the

Public Health Service, the Secretary of Health and Human

Services.

114 STAT. 764 PUBLIC LAW 106–265—SEPT. 19, 2000

‘‘§ 9002. Availability of insurance

‘‘(a) IN GENERAL.—The Office of Personnel Management shall

establish and, in consultation with the appropriate Secretaries,

administer a program through which an individual described in

paragraph (1), (2), (3), (4), or (5) of section 9001 may obtain longterm care insurance coverage under this chapter for such individual.

‘‘(b) GENERAL REQUIREMENTS.—Long-term care insurance may

not be offered under this chapter unless—

‘‘(1) the only coverage provided is under qualified longterm care insurance contracts; and

‘‘(2) each insurance contract under which any such coverage

is provided is issued by a qualified carrier.

‘‘(c) DOCUMENTATION REQUIREMENT.—As a condition for

obtaining long-term care insurance coverage under this chapter

based on one’s status as a qualified relative, an applicant shall

provide documentation to demonstrate the relationship, as prescribed by the Office.

‘‘(d) UNDERWRITING STANDARDS.— ‘‘(1) DISQUALIFYING CONDITION.—Nothing in this chapter

shall be considered to require that long-term care insurance

coverage be made available in the case of any individual who

would be eligible for benefits immediately.

‘‘(2) SPOUSAL PARITY.—For the purpose of underwriting

standards, a spouse of an individual described in paragraph

(1), (2), (3), or (4) of section 9001 shall, as nearly as practicable,

be treated like that individual.

‘‘(3) GUARANTEED ISSUE.—Nothing in this chapter shall

be considered to require that long-term care insurance coverage

be guaranteed to an eligible individual.

‘‘(4) REQUIREMENT THAT CONTRACT BE FULLY INSURED.— In addition to the requirements otherwise applicable under

section 9001(9), in order to be considered a qualified longterm care insurance contract for purposes of this chapter, a

contract must be fully insured, whether through reinsurance

with other companies or otherwise.

‘‘(5) HIGHER STANDARDS ALLOWABLE.—Nothing in this

chapter shall, in the case of an individual applying for longterm care insurance coverage under this chapter after the

expiration of such individual’s first opportunity to enroll, preclude the application of underwriting standards more stringent

than those that would have applied if that opportunity had

not yet expired.

‘‘(e) GUARANTEED RENEWABILITY.—The benefits and coverage

made available to eligible individuals under any insurance contract

under this chapter shall be guaranteed renewable (as defined by

section 7A(2) of the model regulations described in section

7702B(g)(2) of the Internal Revenue Code of 1986), including the

right to have insurance remain in effect so long as premiums

continue to be timely made. However, the authority to revise premiums under this chapter shall be available only on a class basis

and only to the extent otherwise allowable under section 9003(b).

‘‘§ 9003. Contracting authority

‘‘(a) IN GENERAL.—The Office of Personnel Management shall,

without regard to section 5 of title 41 or any other statute requiring

competitive bidding, contract with one or more qualified carriers

for a policy or policies of long-term care insurance. The Office

PUBLIC LAW 106–265—SEPT. 19, 2000 114 STAT. 765

shall ensure that each resulting contract (hereafter in this chapter

referred to as a ‘master contract’) is awarded on the basis of contractor qualifications, price, and reasonable competition.

‘‘(b) TERMS AND CONDITIONS.—

‘‘(1) IN GENERAL.—Each master contract under this chapter

shall contain—

‘‘(A) a detailed statement of the benefits offered

(including any maximums, limitations, exclusions, and

other definitions of benefits);

‘‘(B) the premiums charged (including any limitations

or other conditions on their subsequent adjustment);

‘‘(C) the terms of the enrollment period; and

‘‘(D) such other terms and conditions as may be mutually agreed to by the Office and the carrier involved, consistent with the requirements of this chapter.

‘‘(2) PREMIUMS.—Premiums charged under each master contract entered into under this section shall reasonably and equitably reflect the cost of the benefits provided, as determined

by the Office. The premiums shall not be adjusted during

the term of the contract unless mutually agreed to by the

Office and the carrier.

‘‘(3) NONRENEWABILITY.—Master contracts under this

chapter may not be made automatically renewable.

‘‘(c) PAYMENT OF REQUIRED BENEFITS; DISPUTE RESOLUTION.—

‘‘(1) IN GENERAL.—Each master contract under this chapter

shall require the carrier to agree—

‘‘(A) to provide payments or benefits to an eligible

individual if such individual is entitled thereto under the

terms of the contract; and

‘‘(B) with respect to disputes regarding claims for payments or benefits under the terms of the contract—

‘‘(i) to establish internal procedures designed to

expeditiously resolve such disputes; and

‘‘(ii) to establish, for disputes not resolved through

procedures under clause (i), procedures for one or more

alternative means of dispute resolution involving independent third-party review under appropriate circumstances by entities mutually acceptable to the

Office and the carrier.

‘‘(2) ELIGIBILITY.—A carrier’s determination as to whether

or not a particular individual is eligible to obtain long-term

care insurance coverage under this chapter shall be subject

to review only to the extent and in the manner provided in

the applicable master contract.

‘‘(3) OTHER CLAIMS.—For purposes of applying the Contract

Disputes Act of 1978 to disputes arising under this chapter

between a carrier and the Office—

‘‘(A) the agency board having jurisdiction to decide

an appeal relative to such a dispute shall be such board

of contract appeals as the Director of the Office of Personnel

Management shall specify in writing (after appropriate

arrangements, as described in section 8(c) of such Act);

and

‘‘(B) the district courts of the United States shall have

original jurisdiction, concurrent with the United States

Court of Federal Claims, of any action described in section

10(a)(1) of such Act relative to such a dispute.

Courts.

114 STAT. 766 PUBLIC LAW 106–265—SEPT. 19, 2000

‘‘(4) RULE OF CONSTRUCTION.—Nothing in this chapter shall

be considered to grant authority for the Office or a thirdparty reviewer to change the terms of any contract under

this chapter.

‘‘(d) DURATION.—

‘‘(1) IN GENERAL.—Each master contract under this chapter

shall be for a term of 7 years, unless terminated earlier by

the Office in accordance with the terms of such contract. However, the rights and responsibilities of the enrolled individual,

the insurer, and the Office (or duly designated third-party

administrator) under such contract shall continue with respect

to such individual until the termination of coverage of the

enrolled individual or the effective date of a successor contract

thereto.

‘‘(2) EXCEPTION.—

‘‘(A) SHORTER DURATION.—In the case of a master contract entered into before the end of the period described

in subparagraph (B), paragraph (1) shall be applied by

substituting ‘ending on the last day of the 7-year period

described in paragraph (2)(B)’ for ‘of 7 years’.

‘‘(B) DEFINITION.—The period described in this

subparagraph is the 7-year period beginning on the earliest

date as of which any long-term care insurance coverage

under this chapter becomes effective.

‘‘(3) CONGRESSIONAL NOTIFICATION.—No later than 180

days after receiving the second report required under section

9006(c), the President (or his designee) shall submit to the

Committees on Government Reform and on Armed Services

of the House of Representatives and the Committees on Governmental Affairs and on Armed Services of the Senate, a written

recommendation as to whether the program under this chapter

should be continued without modification, terminated, or

restructured. During the 180-day period following the date

on which the President (or his designee) submits the recommendation required under the preceding sentence, the Office

of Personnel Management may not take any steps to rebid

or otherwise contract for any coverage to be available at any

time following the expiration of the 7-year period described

in paragraph (2)(B).

‘‘(4) FULL PORTABILITY.—Each master contract under this

chapter shall include such provisions as may be necessary

to ensure that, once an individual becomes duly enrolled, longterm care insurance coverage obtained by such individual

pursuant to that enrollment shall not be terminated due to

any change in status (such as separation from Government

service or the uniformed services) or ceasing to meet the

requirements for being considered a qualified relative (whether

as a result of dissolution of marriage or otherwise).

‘‘§ 9004. Financing

‘‘(a) IN GENERAL.—Each eligible individual obtaining long-term

care insurance coverage under this chapter shall be responsible

for 100 percent of the premiums for such coverage.

‘‘(b) WITHHOLDINGS.—

‘‘(1) IN GENERAL.—The amount necessary to pay the premiums for enrollment may—

Deadline.

President.

PUBLIC LAW 106–265—SEPT. 19, 2000 114 STAT. 767

‘‘(A) in the case of an employee, be withheld from

the pay of such employee;

‘‘(B) in the case of an annuitant, be withheld from

the annuity of such annuitant;

‘‘(C) in the case of a member of the uniformed services

described in section 9001(3), be withheld from the pay

of such member; and

‘‘(D) in the case of a retired member of the uniformed

services described in section 9001(4), be withheld from

the retired pay or retainer pay payable to such member.

‘‘(2) VOLUNTARY WITHHOLDINGS FOR QUALIFIED RELATIVES.—Withholdings to pay the premiums for enrollment of

a qualified relative may, upon election of the appropriate

eligible individual (described in section 9001(1)–(4)), be withheld under paragraph (1) to the same extent and in the same

manner as if enrollment were for such individual.

‘‘(c) DIRECT PAYMENTS.—All amounts withheld under this section shall be paid directly to the carrier.

‘‘(d) OTHER FORMS OF PAYMENT.—Any enrollee who does not

elect to have premiums withheld under subsection (b) or whose

pay, annuity, or retired or retainer pay (as referred to in subsection

(b)(1)) is insufficient to cover the withholding required for enrollment (or who is not receiving any regular amounts from the Government, as referred to in subsection (b)(1), from which any such

withholdings may be made, and whose premiums are not otherwise

being provided for under subsection (b)(2)) shall pay an amount

equal to the full amount of those charges directly to the carrier.

‘‘(e) SEPARATE ACCOUNTING REQUIREMENT.—Each carrier

participating under this chapter shall maintain records that permit

it to account for all amounts received under this chapter (including

investment earnings on those amounts) separate and apart from

all other funds.

‘‘(f ) REIMBURSEMENTS.—

‘‘(1) REASONABLE INITIAL COSTS.—

‘‘(A) IN GENERAL.—The Employees’ Life Insurance Fund

is available, without fiscal year limitation, for reasonable

expenses incurred by the Office of Personnel Management

in administering this chapter before the start of the 7-

year period described in section 9003(d)(2)(B), including

reasonable implementation costs.

‘‘(B) REIMBURSEMENT REQUIREMENT.—Such Fund shall

be reimbursed, before the end of the first year of that

7-year period, for all amounts obligated or expended under

subparagraph (A) (including lost investment income). Such

reimbursement shall be made by carriers, on a pro rata

basis, in accordance with appropriate provisions which

shall be included in master contracts under this chapter.

‘‘(2) SUBSEQUENT COSTS.—

‘‘(A) IN GENERAL.—There is hereby established in the

Employees’ Life Insurance Fund a Long-Term Care

Administrative Account, which shall be available to the

Office, without fiscal year limitation, to defray reasonable

expenses incurred by the Office in administering this

chapter after the start of the 7-year period described in

section 9003(d)(2)(B).

Records.

114 STAT. 768 PUBLIC LAW 106–265—SEPT. 19, 2000

‘‘(B) REIMBURSEMENT REQUIREMENT.—Each master

contract under this chapter shall include appropriate provisions under which the carrier involved shall, during each

year, make such periodic contributions to the Long-Term

Care Administrative Account as necessary to ensure that

the reasonable anticipated expenses of the Office in administering this chapter during such year (adjusted to reconcile

for any earlier overestimates or underestimates under this

subparagraph) are defrayed.

‘‘§ 9005. Preemption

‘‘The terms of any contract under this chapter which relate

to the nature, provision, or extent of coverage or benefits (including

payments with respect to benefits) shall supersede and preempt

any State or local law, or any regulation issued thereunder, which

relates to long-term care insurance or contracts.

‘‘§ 9006. Studies, reports, and audits

‘‘(a) PROVISIONS RELATING TO CARRIERS.—Each master contract

under this chapter shall contain provisions requiring the carrier—

‘‘(1) to furnish such reasonable reports as the Office of

Personnel Management determines to be necessary to enable

it to carry out its functions under this chapter; and

‘‘(2) to permit the Office and representatives of the General

Accounting Office to examine such records of the carrier as

may be necessary to carry out the purposes of this chapter.

‘‘(b) PROVISIONS RELATING TO FEDERAL AGENCIES.—Each Federal agency shall keep such records, make such certifications, and

furnish the Office, the carrier, or both, with such information and

reports as the Office may require.

‘‘(c) REPORTS BY THE GENERAL ACCOUNTING OFFICE.—The General Accounting Office shall prepare and submit to the President,

the Office of Personnel Management, and each House of Congress,

before the end of the third and fifth years during which the program

under this chapter is in effect, a written report evaluating such

program. Each such report shall include an analysis of the competitiveness of the program, as compared to both group and individual

coverage generally available to individuals in the private insurance

market. The Office shall cooperate with the General Accounting

Office to provide periodic evaluations of the program.

‘‘§ 9007. Jurisdiction of courts

‘‘The district courts of the United States have original jurisdiction of a civil action or claim described in paragraph (1) or (2)

of section 9003(c), after such administrative remedies as required

under such paragraph (1) or (2) (as applicable) have been exhausted,

but only to the extent judicial review is not precluded by any

dispute resolution or other remedy under this chapter.

‘‘§ 9008. Administrative functions

‘‘(a) IN GENERAL.—The Office of Personnel Management shall

prescribe regulations necessary to carry out this chapter.

‘‘(b) ENROLLMENT PERIODS.—The Office shall provide for periodic coordinated enrollment, promotion, and education efforts in

consultation with the carriers.

‘‘(c) CONSULTATION.—Any regulations necessary to effect the

application and operation of this chapter with respect to an eligible

Regulations.

Regulations.

Records.

Certification.

Contracts.

Contracts.

PUBLIC LAW 106–265—SEPT. 19, 2000 114 STAT. 769

individual described in paragraph (3) or (4) of section 9001, or

a qualified relative thereof, shall be prescribed by the Office in

consultation with the appropriate Secretary.

‘‘(d) INFORMED DECISIONMAKING.—The Office shall ensure that

each eligible individual applying for long-term care insurance under

this chapter is furnished the information necessary to enable that

individual to evaluate the advantages and disadvantages of

obtaining long-term care insurance under this chapter, including

the following:

‘‘(1) The principal long-term care benefits and coverage

available under this chapter, and how those benefits and coverage compare to the range of long-term care benefits and

coverage otherwise generally available.

‘‘(2) Representative examples of the cost of long-term care,

and the sufficiency of the benefits available under this chapter

relative to those costs. The information under this paragraph

shall also include—

‘‘(A) the projected effect of inflation on the value of

those benefits; and

‘‘(B) a comparison of the inflation-adjusted value of

those benefits to the projected future costs of long-term

care.

‘‘(3) Any rights individuals under this chapter may have

to cancel coverage, and to receive a total or partial refund

of premiums. The information under this paragraph shall also

include—

‘‘(A) the projected number or percentage of individuals

likely to fail to maintain their coverage (determined based

on lapse rates experienced under similar group long-term

care insurance programs and, when available, this chapter);

and

‘‘(B)(i) a summary description of how and when premiums for long-term care insurance under this chapter

may be raised;

‘‘(ii) the premium history during the last 10 years

for each qualified carrier offering long-term care insurance

under this chapter; and

‘‘(iii) if cost increases are anticipated, the projected

premiums for a typical insured individual at various ages.

‘‘(4) The advantages and disadvantages of long-term care

insurance generally, relative to other means of accumulating

or otherwise acquiring the assets that may be needed to meet

the costs of long-term care, such as through tax-qualified retirement programs or other investment vehicles.

‘‘§ 9009. Cost accounting standards

‘‘The cost accounting standards issued pursuant to section 26(f )

of the Office of Federal Procurement Policy Act (41 U.S.C. 422(f ))

shall not apply with respect to a long-term care insurance contract

under this chapter.’’.

(b) CONFORMING AMENDMENT.—The analysis for part III of

title 5, United States Code, is amended by adding at the end

of subpart G the following:

‘‘90. Long-Term Care Insurance ..................................................................... 9001.’’.

114 STAT. 770 PUBLIC LAW 106–265—SEPT. 19, 2000

SEC. 1003. EFFECTIVE DATE.

The Office of Personnel Management shall take such measures

as may be necessary to ensure that long-term care insurance coverage under title 5, United States Code, as amended by this title,

may be obtained in time to take effect not later than the first

day of the first applicable pay period of the first fiscal year which

begins after the end of the 18-month period beginning on the

date of the enactment of this Act.

TITLE II—FEDERAL RETIREMENT

COVERAGE ERRORS CORRECTION

SEC. 2001. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This title may be cited as the ‘‘Federal

Erroneous Retirement Coverage Corrections Act’’.

(b) TABLE OF CONTENTS.—The table of contents for this title

is as follows:

TITLE II—FEDERAL RETIREMENT COVERAGE ERRORS CORRECTION

Sec. 2001. Short title; table of contents.

Sec. 2002. Definitions.

Sec. 2003. Applicability.

Sec. 2004. Irrevocability of elections.

Subtitle A—Description of Retirement Coverage Errors to Which This Title Applies

and Measures for Their Rectification

CHAPTER 1—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. 2101. Employees.

Sec. 2102. Annuitants and survivors.

CHAPTER 2—EMPLOYEE WHO SHOULD HAVE BEEN FERS COVERED, CSRS-OFFSET

COVERED, OR CSRS COVERED, BUT WHO WAS ERRONEOUSLY SOCIAL SECURITYONLY COVERED INSTEAD

Sec. 2111. Applicability.

Sec. 2112. Correction mandatory.

CHAPTER 3—EMPLOYEE WHO SHOULD OR COULD HAVE BEEN SOCIAL SECURITY-ONLY

COVERED BUT WHO WAS ERRONEOUSLY CSRS-OFFSET COVERED OR CSRS COVERED INSTEAD

Sec. 2121. Employee who should be Social Security-Only covered, but who is erroneously CSRS or CSRS-Offset covered instead.

CHAPTER 4—EMPLOYEE WHO WAS ERRONEOUSLY FERS COVERED

Sec. 2131. 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. 2132. 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. 2133. Retroactive effect.

CHAPTER 5—EMPLOYEE WHO SHOULD HAVE BEEN CSRS-OFFSET COVERED, BUT

WHO WAS ERRONEOUSLY CSRS COVERED INSTEAD

Sec. 2141. Applicability.

Sec. 2142. Correction mandatory.

CHAPTER 6—EMPLOYEE WHO SHOULD HAVE BEEN CSRS COVERED, BUT WHO WAS

ERRONEOUSLY CSRS-OFFSET COVERED INSTEAD

Sec. 2151. Applicability.

Federal

Erroneous

Retirement

Coverage

Corrections Act.

5 USC 8331 note.

5 USC 9001 note.

PUBLIC LAW 106–265—SEPT. 19, 2000 114 STAT. 771

Sec. 2152. Correction mandatory.

Subtitle B—General Provisions

Sec. 2201. Identification and notification requirements.

Sec. 2202. Information to be furnished to and by authorities administering this

title.

Sec. 2203. Service credit deposits.

Sec. 2204. Provisions related to Social Security coverage of misclassified employees.

Sec. 2205. Thrift Savings Plan treatment for certain individuals.

Sec. 2206. Certain agency amounts to be paid into or remain in the CSRDF.

Sec. 2207. CSRS coverage determinations to be approved by OPM.

Sec. 2208. Discretionary actions by Director.

Sec. 2209. Regulations.

Subtitle C—Other Provisions

Sec. 2301. Provisions to authorize continued conformity of other Federal retirement

systems.

Sec. 2302. Authorization of payments.

Sec. 2303. Individual right of action preserved for amounts not otherwise provided

for under this title.

Subtitle D—Effective Date

Sec. 2401. Effective date.

SEC. 2002. DEFINITIONS.

For purposes of this title:

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

given such term under section 8331(9) or 8401(2) of title 5,

United States Code.

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

Retirement System.

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

Retirement and Disability Fund.

(4) CSRS COVERED.—The term ‘‘CSRS covered’’, with

respect to any service, means service that is subject to the

provisions of subchapter III of chapter 83 of title 5, United

States Code, other than service subject to section 8334(k) of

such title.

(5) CSRS-OFFSET COVERED.—The term ‘‘CSRS-Offset covered’’, with respect to any service, means service that is subject

to the provisions of subchapter III of chapter 83 of title 5,

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

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

given such term under section 8331(1) or 8401(11) of title

5, United States Code.

(7) EXECUTIVE DIRECTOR.—The term ‘‘Executive Director

of the Federal Retirement Thrift Investment Board’’ or ‘‘Executive Director’’ means the Executive Director appointed under

section 8474 of title 5, United States Code.

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

Employees’ Retirement System.

(9) FERS COVERED.—The term ‘‘FERS covered’’, with

respect to any service, means service that is subject to chapter

84 of title 5, United States Code.

(10) FORMER EMPLOYEE.—The term ‘‘former employee’’

means an individual who was an employee, but who is not

an annuitant.

(11) OASDI TAXES.—The term ‘‘OASDI taxes’’ means the

OASDI employee tax and the OASDI employer tax.

(12) OASDI EMPLOYEE TAX.—The term ‘‘OASDI employee

tax’’ means the tax imposed under section 3101(a) of the

5 USC 8331 note.

114 STAT. 772 PUBLIC LAW 106–265—SEPT. 19, 2000

Internal Revenue Code of 1986 (relating to Old-Age, Survivors

and Disability Insurance).

(13) OASDI EMPLOYER TAX.—The term ‘‘OASDI employer

tax’’ means the tax imposed under section 3111(a) of the

Internal Revenue Code of 1986 (relating to Old-Age, Survivors

and Disability Insurance).

(14) OASDI TRUST FUNDS.—The term ‘‘OASDI trust funds’’

means the Federal Old-Age and Survivors Insurance Trust

Fund and the Federal Disability Insurance Trust Fund.

(15) OFFICE.—The term ‘‘Office’’ means the Office of Personnel Management.

(16) RETIREMENT COVERAGE DETERMINATION.—The term

‘‘retirement coverage determination’’ means a determination

by an employee or agent of the Government as to whether

a particular type of Government service is CSRS covered, CSRSOffset covered, FERS covered, or Social Security-Only covered.

(17) RETIREMENT COVERAGE ERROR.—The term ‘‘retirement

coverage error’’ means an erroneous retirement coverage determination that was in effect for a minimum period of 3 years

of service after December 31, 1986.

(18) SOCIAL SECURITY-ONLY COVERED.—The term ‘‘Social

Security-Only covered’’, with respect to any service, means

Government service that—

(A) constitutes employment under section 210 of the

Social Security Act (42 U.S.C. 410); and

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

(ii) is not subject to CSRS or FERS.

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

given such term under section 8331(10) or 8401(28) of title

5, United States Code.

(20) THRIFT SAVINGS FUND.—The term ‘‘Thrift Savings

Fund’’ means the Thrift Savings Fund established under section

8437 of title 5, United States Code.

SEC. 2003. APPLICABILITY.

(a) IN GENERAL.—This title shall apply with respect to retirement coverage errors that occur before, on, or after the date of

the enactment of this Act.

(b) LIMITATION.—Except as otherwise provided in this title,

this title shall not apply to any erroneous retirement coverage

determination that was in effect for a period of less than 3 years

of service after December 31, 1986.

SEC. 2004. IRREVOCABILITY OF ELECTIONS.

Any election made (or deemed to have been made) by an

employee or any other individual under this title shall be irrevocable.

5 USC 8331 note.

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PUBLIC LAW 106–265—SEPT. 19, 2000 114 STAT. 773

Subtitle A—Description of Retirement Coverage Errors to Which This Title Applies

and Measures for Their Rectification

CHAPTER 1—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. 2101. EMPLOYEES.

(a) APPLICABILITY.—This section shall apply in the case of any

employee or former employee who should be (or should have been)

FERS covered but, as a result of a retirement coverage error,

is (or was) CSRS covered or CSRS-Offset covered instead.

(b) UNCORRECTED ERROR.—

(1) APPLICABILITY.—This subsection applies if the retirement coverage error has not been corrected before the effective

date of the regulations described under paragraph (3). As soon

as practicable after discovery of the error, and subject to the

right of an election under paragraph (2), if CSRS covered or

CSRS-Offset covered, such individual shall be treated as CSRSOffset covered, retroactive to the date of the retirement coverage

error.

(2) COVERAGE.—

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

coverage error, an individual may elect to be CSRS-Offset

covered or FERS covered, effective as of the date of the

retirement coverage error. Such election shall be made

not later than 180 days after the date of receipt of such

notice.

(B) NONELECTION.—If the individual does not make

an election by the date provided under subparagraph (A),

a CSRS-Offset covered individual shall remain CSRS-Offset

covered and a CSRS covered individual shall be treated

as CSRS-Offset covered.

(3) REGULATIONS.—The Office shall prescribe regulations

to carry out this subsection.

(c) CORRECTED ERROR.—

(1) APPLICABILITY.—This subsection applies if the retirement coverage error was corrected before the effective date

of the regulations described under subsection (b).

(2) COVERAGE.—

(A) ELECTION.—

(i) CSRS-OFFSET COVERED.—Not later than 180

days after the date of the enactment of this Act, the

Office shall prescribe regulations authorizing individuals to elect, during the 18-month period immediately

following the effective date of such regulations, to be

CSRS-Offset covered, effective as of the date of the

retirement coverage error.

(ii) THRIFT SAVINGS FUND CONTRIBUTIONS.—If

under this section an individual elects to be CSRSOffset covered, all employee contributions to the Thrift

Deadline.

Regulations.

Deadline.

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114 STAT. 774 PUBLIC LAW 106–265—SEPT. 19, 2000

Savings Fund made during the period of FERS coverage (and earnings on such contributions) may remain

in the Thrift Savings Fund in accordance with regulations prescribed by the Executive Director, notwithstanding any limit under title 5, United States Code,

that would otherwise be applicable.

(B) PREVIOUS SETTLEMENT PAYMENT.—An individual

who previously received a payment ordered by a court

or provided as a settlement of claim for losses resulting

from a retirement coverage error shall not be entitled to

make an election under this subsection unless that amount

is waived in whole or in part under section 2208, and

any amount not waived is repaid.

(C) INELIGIBILITY FOR ELECTION.—An individual who,

subsequent to correction of the retirement coverage error,

received a refund of retirement deductions under section

8424 of title 5, United States Code, or a distribution under

section 8433(b), (c), or (h)(1)(A) of title 5, United States

Code, may not make an election under this subsection.

(3) CORRECTIVE ACTION TO REMAIN IN EFFECT.—If an individual is ineligible to make an election or does not make an

election under paragraph (2) before the end of any time limitation under this subsection, the corrective action taken before

such time limitation shall remain in effect.

SEC. 2102. ANNUITANTS AND SURVIVORS.

(a) IN GENERAL.—This section shall apply in the case of an

individual who is—

(1) an annuitant who should have been FERS covered

but, as a result of a retirement coverage error, was CSRS

covered or CSRS-Offset covered instead; or

(2) a survivor of an employee who should have been FERS

covered but, as a result of a retirement coverage error, was

CSRS covered or CSRS-Offset covered instead.

(b) COVERAGE.—

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

of the enactment of this Act, the Office shall prescribe regulations authorizing an individual described under subsection (a)

to elect CSRS-Offset coverage or FERS coverage, effective as

of the date of the retirement coverage error.

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

shall be made not later than 18 months after the effective

date of the regulations prescribed under paragraph (1).

(3) REDUCED ANNUITY.—

(A) AMOUNT IN ACCOUNT.—If the individual elects

CSRS-Offset coverage, the amount in the employee’s Thrift

Savings Fund account under subchapter III of chapter 84

of title 5, United States Code, on the date of retirement

that represents the Government’s contributions and

earnings on those contributions (whether or not such

amount was subsequently distributed from the Thrift

Savings Fund) will form the basis for a reduction in the

individual’s annuity, under regulations prescribed by the

Office.

(B) REDUCTION.—The reduced annuity to which the

individual is entitled shall be equal to an amount which,

when taken together with the amount referred to in

Regulations.

Dealine.

Deadline.

Regulations.

5 USC 8331 note.

PUBLIC LAW 106–265—SEPT. 19, 2000 114 STAT. 775

subparagraph (A), would result in the present value of

the total being actuarially equivalent to the present value

of an unreduced CSRS-Offset annuity that would have

been provided the individual.

(4) REDUCED BENEFIT.—If—

(A) a surviving spouse elects CSRS-Offset benefits; and

(B) a FERS basic employee death benefit under section

8442(b) of title 5, United States Code, was previously paid,

then the survivor’s CSRS-Offset benefit shall be subject to

a reduction, under regulations prescribed by the Office. The

reduced annuity to which the individual is entitled shall be

equal to an amount which, when taken together with the

amount of the payment referred to under subparagraph (B)

would result in the present value of the total being actuarially

equivalent to the present value of an unreduced CSRS-Offset

annuity that would have been provided the individual.

(5) PREVIOUS SETTLEMENT PAYMENT.—An individual who

previously received a payment ordered by a court or provided

as a settlement of claim for losses resulting from a retirement

coverage error may not make an election under this subsection

unless repayment of that amount is waived in whole or in

part under section 2208, and any amount not waived is repaid.

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

under subsection (b) before any time limitation under this section,

the retirement coverage shall be subject to the following rules:

(1) CORRECTIVE ACTION PREVIOUSLY TAKEN.—If corrective

action was taken before the end of any time limitation under

this section, that corrective action shall remain in effect.

(2) CORRECTIVE ACTION NOT PREVIOUSLY TAKEN.—If corrective action was not taken before such time limitation, the

employee shall be CSRS-Offset covered, retroactive to the date

of the retirement coverage error.

CHAPTER 2—EMPLOYEE WHO SHOULD HAVE BEEN

FERS COVERED, CSRS-OFFSET COVERED, OR CSRS

COVERED, BUT WHO WAS ERRONEOUSLY SOCIAL SECURITY-ONLY COVERED INSTEAD

SEC. 2111. APPLICABILITY.

This chapter shall apply in the case of any employee who—

(1) should be (or should have been) FERS covered but,

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

Security-Only covered instead;

(2) should be (or should have been) CSRS-Offset covered

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

Social Security-Only covered instead; or

(3) should be (or should have been) CSRS covered but,

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

Security-Only covered instead.

SEC. 2112. CORRECTION MANDATORY.

(a) UNCORRECTED ERROR.—If the retirement coverage error

has not been corrected, as soon as practicable after discovery of

the error, such individual shall be covered under the correct retirement coverage, effective as of the date of the retirement coverage

error.

5 USC 8331 note.

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114 STAT. 776 PUBLIC LAW 106–265—SEPT. 19, 2000

(b) CORRECTED ERROR.—If the retirement coverage error has

been corrected, the corrective action previously taken shall remain

in effect.

CHAPTER 3—EMPLOYEE WHO SHOULD OR COULD HAVE

BEEN SOCIAL SECURITY-ONLY COVERED BUT WHO

WAS ERRONEOUSLY CSRS-OFFSET COVERED OR CSRS

COVERED INSTEAD

SEC. 2121. EMPLOYEE WHO SHOULD BE SOCIAL SECURITY-ONLY COVERED, BUT WHO IS ERRONEOUSLY CSRS OR CSRS-OFFSET

COVERED INSTEAD.

(a) APPLICABILITY.—This section applies in the case of a retirement coverage error in which a Social Security-Only covered

employee was erroneously CSRS covered or CSRS-Offset covered.

(b) UNCORRECTED ERROR.—

(1) APPLICABILITY.—This subsection applies if the retirement coverage error has not been corrected before the effective

date of the regulations described in paragraph (3).

(2) COVERAGE.—In the case of an individual who is erroneously CSRS covered, as soon as practicable after discovery

of the error, and subject to the right of an election under

paragraph (3), such individual shall be CSRS-Offset covered,

effective as of the date of the retirement coverage error.

(3) ELECTION.—

(A) IN GENERAL.—Upon written notice of a retirement

coverage error, an individual may elect to be CSRS-Offset

covered or Social Security-Only covered, effective as of the

date of the retirement coverage error. Such election shall

be made not later than 180 days after the date of receipt

of such notice.

(B) NONELECTION.—If the individual does not make

an election before the date provided under subparagraph

(A), the individual shall remain CSRS-Offset covered.

(C) REGULATIONS.—The Office shall prescribe regulations to carry out this paragraph.

(c) CORRECTED ERROR.—

(1) APPLICABILITY.—This subsection applies if the retirement coverage error was corrected before the effective date

of the regulations described under subsection (b)(3).

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

of the enactment of this Act, the Office shall prescribe regulations authorizing individuals to elect, during the 18-month

period immediately following the effective date of such regulations, to be CSRS-Offset covered or Social Security-Only covered, effective as of the date of the retirement coverage error.

(3) NONELECTION.—If an eligible individual does not make

an election under paragraph (2) before the end of any time

limitation under this subsection, the corrective action taken

before such time limitation shall remain in effect.

Deadline.

Regulations.

Deadline.

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PUBLIC LAW 106–265—SEPT. 19, 2000 114 STAT. 777

CHAPTER 4—EMPLOYEE WHO WAS ERRONEOUSLY FERS

COVERED

SEC. 2131. 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.

(a) APPLICABILITY.—This section applies in the case of a retirement coverage error in which a Social Security-Only covered, CSRS

covered, or CSRS-Offset covered employee not eligible to elect FERS

coverage under authority of section 8402(c) of title 5, United States

Code, was erroneously FERS covered.

(b) UNCORRECTED ERROR.— (1) APPLICABILITY.—This subsection applies if the retirement coverage error has not been corrected before the effective

date of the regulations described in paragraph (2).

(2) COVERAGE.—

(A) ELECTION.—

(i) IN GENERAL.—Upon written notice of a retirement coverage error, an individual may elect to remain

FERS covered or to be Social Security-Only covered,

CSRS covered, or CSRS-Offset covered, as would have

applied in the absence of the erroneous retirement

coverage determination, effective as of the date of the

retirement coverage error. Such election shall be made

not later than 180 days after the date of receipt of

such notice.

(ii) TREATMENT OF FERS ELECTION.—An election

of FERS coverage under this subsection is deemed

to be an election under section 301 of the Federal

Employees Retirement System Act of 1986 (5 U.S.C.

8331 note; Public Law 99–335; 100 Stat. 599).

(B) NONELECTION.—If the individual does not make

an election before the date provided under subparagraph

(A), the individual shall remain FERS covered, effective

as of the date of the retirement coverage error.

(3) EMPLOYEE CONTRIBUTIONS IN THRIFT SAVINGS FUND.—

If under this section, an individual elects to be Social SecurityOnly covered, CSRS covered, or CSRS-Offset covered, all

employee contributions to the Thrift Savings Fund made during

the period of erroneous FERS coverage (and all earnings on

such contributions) may remain in the Thrift Savings Fund

in accordance with regulations prescribed by the Executive

Director, notwithstanding any limit under section 8351 or 8432

of title 5, United States Code.

(4) REGULATIONS.—Except as provided under paragraph

(3), the Office shall prescribe regulations to carry out this

subsection.

(c) CORRECTED ERROR.—

(1) APPLICABILITY.—This subsection applies if the retirement coverage error was corrected before the effective date

of the regulations described under paragraph (2).

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

of the enactment of this Act, the Office shall prescribe regulations authorizing individuals to elect, during the 18-month

period immediately following the effective date of such regulations to remain Social Security-Only covered, CSRS covered,

Deadline.

Regulations.

Deadline.

5 USC 8331 note.

114 STAT. 778 PUBLIC LAW 106–265—SEPT. 19, 2000

or CSRS-Offset covered, or to be FERS covered, effective as

of the date of the retirement coverage error.

(3) NONELECTION.—If an eligible individual does not make

an election under paragraph (2), the corrective action taken

before the end of any time limitation under this subsection

shall remain in effect.

(4) TREATMENT OF FERS ELECTION.—An election of FERS

coverage under this subsection is deemed to be an election

under section 301 of the Federal Employees Retirement System

Act of 1986 (5 U.S.C. 8331 note; Public Law 99–335; 100 Stat.

599).

SEC. 2132. 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.

(a) IN GENERAL.—

(1) FERS ELECTION PREVENTED.—If an individual was prevented from electing FERS coverage because the individual

was erroneously FERS covered during the period when the

individual was eligible to elect FERS under title III of the

Federal Employees Retirement System Act or the Federal

Employees’ Retirement System Open Enrollment Act of 1997

(Public Law 105–61; 111 Stat. 1318 et seq.), the individual—

(A) is deemed to have elected FERS coverage; and

(B) shall remain covered by FERS, unless the individual declines, under regulations prescribed by the Office,

to be FERS covered.

(2) DECLINING FERS COVERAGE.—If an individual described

under paragraph (1)(B) declines to be FERS covered, such individual shall be CSRS covered, CSRS-Offset covered, or Social

Security-Only covered, as would apply in the absence of a

FERS election, effective as of the date of the erroneous retirement coverage determination.

(b) EMPLOYEE CONTRIBUTIONS IN THRIFT SAVINGS FUND.—If

under this section, an individual declines to be FERS covered and

instead is Social Security-Only covered, CSRS covered, or CSRSOffset covered, as would apply in the absence of a FERS election,

all employee contributions to the Thrift Savings Fund made during

the period of erroneous FERS coverage (and all earnings on such

contributions) may remain in the Thrift Savings Fund in accordance

with regulations prescribed by the Executive Director, notwithstanding any limit under title 5, United States Code, that would

otherwise be applicable.

(c) INAPPLICABILITY OF DURATION OF ERRONEOUS COVERAGE.—

This section shall apply regardless of the length of time the erroneous coverage determination remained in effect.

SEC. 2133. RETROACTIVE EFFECT.

This chapter shall be effective as of January 1, 1987, except

that section 2132 shall not apply to individuals who made or were

deemed to have made elections similar to those provided in this

section under regulations prescribed by the Office before the effective date of this title.

Effective date.

5 USC 8331 note.

5 USC 8331 note.

PUBLIC LAW 106–265—SEPT. 19, 2000 114 STAT. 779

CHAPTER 5—EMPLOYEE WHO SHOULD HAVE BEEN

CSRS-OFFSET COVERED, BUT WHO WAS ERRONEOUSLY CSRS COVERED INSTEAD

SEC. 2141. APPLICABILITY.

This chapter shall apply in the case of any employee who

should be (or should have been) CSRS-Offset covered but, as a

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

instead.

SEC. 2142. CORRECTION MANDATORY.

(a) UNCORRECTED ERROR.—If the retirement coverage error

has not been corrected, as soon as practicable after discovery of

the error, such individual shall be covered under the correct retirement coverage, effective as of the date of the retirement coverage

error.

(b) CORRECTED ERROR.—If the retirement coverage error has

been corrected before the effective date of this title, the corrective

action taken before such date shall remain in effect.

CHAPTER 6—EMPLOYEE WHO SHOULD HAVE BEEN

CSRS COVERED, BUT WHO WAS ERRONEOUSLY CSRSOFFSET COVERED INSTEAD

SEC. 2151. APPLICABILITY.

This chapter shall apply in the case of any employee who

should be (or should have been) CSRS covered but, as a result

of a retirement coverage error, is (or was) CSRS-Offset covered

instead.

SEC. 2152. CORRECTION MANDATORY.

(a) UNCORRECTED ERROR.—If the retirement coverage error

has not been corrected, as soon as practicable after discovery of

the error, such individual shall be covered under the correct retirement coverage, effective as of the date of the retirement coverage

error.

(b) CORRECTED ERROR.—If the retirement coverage error has

been corrected before the effective date of this title, the corrective

action taken before such date shall remain in effect.

Subtitle B—General Provisions

SEC. 2201. IDENTIFICATION AND NOTIFICATION REQUIREMENTS.

Government agencies shall take all such measures as may

be reasonable and appropriate to promptly identify and notify

individuals who are (or have been) affected by a retirement coverage

error of their rights under this title.

SEC. 2202. INFORMATION TO BE FURNISHED TO AND BY AUTHORITIES

ADMINISTERING THIS TITLE.

(a) APPLICABILITY.—The authorities identified in this subsection

are—

(1) the Director of the Office of Personnel Management;

(2) the Commissioner of Social Security; and

(3) the Executive Director of the Federal Retirement Thrift

Investment Board.

5 USC 8331 note.

5 USC 8331 note.

5 USC 8331 note.

5 USC 8331 note.

5 USC 8331 note.

5 USC 8331 note.

114 STAT. 780 PUBLIC LAW 106–265—SEPT. 19, 2000

(b) AUTHORITY TO OBTAIN INFORMATION.—Each authority

identified in subsection (a) may secure directly from any department

or agency of the United States information necessary to enable

such authority to carry out its responsibilities under this title.

Upon request of the authority involved, the head of the department

or agency involved shall furnish that information to the requesting

authority.

(c) AUTHORITY TO PROVIDE INFORMATION.—Each authority

identified in subsection (a) may provide directly to any department

or agency of the United States all information such authority

believes necessary to enable the department or agency to carry

out its responsibilities under this title.

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

(1) request or provide only such information as that

authority considers necessary; and

(2) establish, by regulation or otherwise, appropriate safeguards to ensure that any information obtained under this

section shall be used only for the purpose authorized.

SEC. 2203. SERVICE CREDIT DEPOSITS.

(a) CSRS DEPOSIT.—In the case of a retirement coverage error

in which—

(1) a FERS covered employee was erroneously CSRS covered or CSRS-Offset covered;

(2) the employee made a service credit deposit under the

CSRS rules; and

(3) there is a subsequent retroactive change to FERS coverage,

the excess of the amount of the CSRS civilian or military service

credit deposit over the FERS civilian or military service credit

deposit, together with interest computed in accordance with paragraphs (2) and (3) of section 8334(e) of title 5, United States Code,

and regulations prescribed by the Office, shall be paid to the

employee, the annuitant or, in the case of a deceased employee,

to the individual entitled to lump-sum benefits under section

8424(d) of title 5, United States Code.

(b) FERS DEPOSIT.—

(1) APPLICABILITY.—This subsection applies in the case of

an erroneous retirement coverage determination in which—

(A) the employee owed a service credit deposit under

section 8411(f ) of title 5, United States Code; and

(B)(i) there is a subsequent retroactive change to CSRS

or CSRS-Offset coverage; or

(ii) the service becomes creditable under chapter 83

of title 5, United States Code.

(2) REDUCED ANNUITY.—

(A) IN GENERAL.—If at the time of commencement of

an annuity there is remaining unpaid CSRS civilian or

military service credit deposit for service described under

paragraph (1), the annuity shall be reduced based upon

the amount unpaid together with interest computed in

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

States Code, and regulations prescribed by the Office.

(B) AMOUNT.—The reduced annuity to which the individual is entitled shall be equal to an amount that, when

Regulations.

5 USC 8331 note.

PUBLIC LAW 106–265—SEPT. 19, 2000 114 STAT. 781

taken together with the amount referred to under subparagraph (A), would result in the present value of the total

being actuarially equivalent to the present value of the

unreduced annuity benefit that would have been provided

the individual.

(3) SURVIVOR ANNUITY.—

(A) IN GENERAL.—If at the time of commencement of

a survivor annuity, there is remaining unpaid any CSRS

service credit deposit described under paragraph (1), and

there has been no actuarial reduction in an annuity under

paragraph (2), the survivor annuity shall be reduced based

upon the amount unpaid together with interest computed

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

United States Code, and regulations prescribed by the

Office.

(B) AMOUNT.—The reduced survivor annuity to which

the individual is entitled shall be equal to an amount

that, when taken together with the amount referred to

under subparagraph (A), would result in the present value

of the total being actuarially equivalent to the present

value of an unreduced survivor annuity benefit that would

have been provided the individual.

SEC. 2204. PROVISIONS RELATED TO SOCIAL SECURITY COVERAGE

OF MISCLASSIFIED EMPLOYEES.

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

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

employee, or annuitant who—

(A) is or was employed erroneously subject to CSRS

coverage as a result of a retirement coverage error; and

(B) is or was retroactively converted to CSRS-offset

coverage, FERS coverage, or Social Security-Only coverage;

and

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

equal to the difference between the CSRS deductions withheld

and the CSRS-Offset or FERS deductions, if any, due with

respect to a covered individual during the entire period the

individual was erroneously subject to CSRS coverage as a result

of a retirement coverage error.

(b) REPORTS TO COMMISSIONER OF SOCIAL SECURITY.—

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

of Social Security’s responsibilities under title II of the Social

Security Act, the Commissioner may request the head of each

agency that employs or employed a covered individual to report

(in coordination with the Office of Personnel Management) in

such form and within such timeframe as the Commissioner

may specify, any or all of—

(A) the total wages (as defined in section 3121(a) of

the Internal Revenue Code of 1986) paid to such individual

during each year of the entire period of the erroneous

CSRS coverage; and

(B) such additional information as the Commissioner

may require for the purpose of carrying out the Commissioner’s responsibilities under title II of the Social Security

Act (42 U.S.C. 401 et seq.).

5 USC 8331 note.

114 STAT. 782 PUBLIC LAW 106–265—SEPT. 19, 2000

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

shall comply with a request from the Commissioner under

paragraph (1).

(3) WAGES.—For purposes of section 201 of the Social Security Act (42 U.S.C. 401), wages reported under this subsection

shall be deemed to be wages reported to the Secretary of

the Treasury or the Secretary’s delegates pursuant to subtitle

F of the Internal Revenue Code of 1986.

(c) PAYMENT RELATING TO OASDI EMPLOYEE TAXES.—The

Office shall transfer from the Civil Service Retirement and Disability Fund to the General Fund of the Treasury an amount

equal to the lesser of the excess CSRS deduction amount or the

OASDI taxes due for covered individuals (as adjusted by amounts

transferred relating to applicable OASDI employee taxes as a result

of corrections made, including corrections made before the date

of the enactment of this Act). If the excess CSRS deductions exceed

the OASDI taxes, any difference shall be paid to the covered individual or survivors, as appropriate.

(d) PAYMENT OF OASDI EMPLOYER TAXES.—

(1) IN GENERAL.—Each employing agency shall pay an

amount equal to the OASDI employer taxes owed with respect

to covered individuals during the applicable period of erroneous

coverage (as adjusted by amounts transferred for the payment

of such taxes as a result of corrections made, including corrections made before the date of the enactment of this Act).

(2) PAYMENT.—Amounts paid under this subsection shall

be determined subject to any limitation under section 6501

of the Internal Revenue Code of 1986.

SEC. 2205. THRIFT SAVINGS PLAN TREATMENT FOR CERTAIN INDIVIDUALS.

(a) APPLICABILITY.—This section applies to an individual who—

(1) is eligible to make an election of coverage under section

2101 or 2102, and only if FERS coverage is elected (or remains

in effect) for the employee involved; or

(2) is described in section 2111, and makes or has made

retroactive employee contributions to the Thrift Savings Fund

under regulations prescribed by the Executive Director.

(b) PAYMENT INTO THRIFT SAVINGS FUND.—

(1) IN GENERAL.—

(A) PAYMENT.—With respect to an individual to whom

this section applies, the employing agency shall pay to

the Thrift Savings Fund under subchapter III of chapter

84 of title 5, United States Code, for credit to the account

of the employee involved, an amount equal to the earnings

which are disallowed under section 8432a(a)(2) of such

title on the employee’s retroactive contributions to such

Fund.

(B) AMOUNT.—Earnings under subparagraph (A) shall

be computed in accordance with the procedures for computing lost earnings under section 8432a of title 5, United

States Code. The amount paid by the employing agency

shall be treated for all purposes as if that amount had

actually been earned on the basis of the employee’s contributions.

(C) EXCEPTIONS.—If an individual made retroactive

contributions before the effective date of the regulations

5 USC 8331 note.

PUBLIC LAW 106–265—SEPT. 19, 2000 114 STAT. 783

under section 2101(c), the Director may provide for an

alternative calculation of lost earnings to the extent that

a calculation under subparagraph (B) is not administratively feasible. The alternative calculation shall yield an

amount that is as close as practicable to the amount computed under subparagraph (B), taking into account

earnings previously paid.

(2) ADDITIONAL EMPLOYEE CONTRIBUTION.—In cases in

which the retirement coverage error was corrected before the

effective date of the regulations under section 2101(c), the

employee involved shall have an additional opportunity to make

retroactive contributions for the period of the retirement coverage error (subject to applicable limits), and such contributions

(including any contributions made after the date of the correction) shall be treated in accordance with paragraph (1).

(c) REGULATIONS.—

(1) EXECUTIVE DIRECTOR.—The Executive Director shall

prescribe regulations appropriate to carry out this section

relating to retroactive employee contributions and payments

made on or after the effective date of the regulations under

section 2101(c).

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

Retirement Thrift Investment Board, shall prescribe regulations

appropriate to carry out this section relating to the calculation

of lost earnings on retroactive employee contributions made

before the effective date of the regulations under section

2101(c).

SEC. 2206. CERTAIN AGENCY AMOUNTS TO BE PAID INTO OR REMAIN

IN THE CSRDF.

(a) CERTAIN EXCESS AGENCY CONTRIBUTIONS TO REMAIN IN

THE CSRDF.—

(1) IN GENERAL.—Any amount described under paragraph

(2) shall—

(A) remain in the CSRDF; and

(B) may not be paid or credited to an agency.

(2) AMOUNTS.—Paragraph (1) refers to any amount of contributions made by an agency under section 8423 of title 5,

United States Code, on behalf of any employee, former

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

employee, or annuitant) who makes an election to correct a

retirement coverage error under this title, that the Office determines to be excess as a result of such election.

(b) ADDITIONAL EMPLOYEE RETIREMENT DEDUCTIONS TO BE

PAID BY AGENCY.—If a correction in a retirement coverage error

results in an increase in employee deductions under section 8334

or 8422 of title 5, United States Code, that cannot be fully paid

by a reallocation of otherwise available amounts previously

deducted from the employee’s pay as employment taxes or retirement deductions, the employing agency—

(1) shall pay the required additional amount into the

CSRDF; and

(2) shall not seek repayment of that amount from the

employee, former employee, annuitant, or survivor.

5 USC 8331 note.

114 STAT. 784 PUBLIC LAW 106–265—SEPT. 19, 2000

SEC. 2207. CSRS COVERAGE DETERMINATIONS TO BE APPROVED BY

OPM.

No agency shall place an individual under CSRS coverage

unless—

(1) the individual has been employed with CSRS coverage

within the preceding 365 days; or

(2) the Office has agreed in writing that the agency’s coverage determination is correct.

SEC. 2208. DISCRETIONARY ACTIONS BY DIRECTOR.

(a) IN GENERAL.—The Director of the Office of Personnel

Management may—

(1) extend the deadlines for making elections under this

title in circumstances involving an individual’s inability to make

a timely election due to a cause beyond the individual’s control;

(2) provide for the reimbursement of necessary and reasonable expenses incurred by an individual with respect to settlement of a claim for losses resulting from a retirement coverage

error, including attorney’s fees, court costs, and other actual

expenses;

(3) compensate an individual for monetary losses that are

a direct and proximate result of a retirement coverage error,

excluding claimed losses relating to forgone contributions and

earnings under the Thrift Savings Plan under subchapter III

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

investment opportunities; and

(4) waive payments required due to correction of a retirement coverage error under this title.

(b) SIMILAR ACTIONS.—In exercising the authority under this

section, the Director shall, to the extent practicable, provide for

similar actions in situations involving similar circumstances.

(c) JUDICIAL REVIEW.—Actions taken under this section are

final and conclusive, and are not subject to administrative or judicial

review.

(d) REGULATIONS.—The Office of Personnel Management shall

prescribe regulations regarding the process and criteria used in

exercising the authority under this section.

(e) REPORT.—The Office of Personnel Management shall, not

later than 180 days after the date of the enactment of this Act,

and annually thereafter for each year in which the authority provided in this section is used, submit a report to each House of

Congress on the operation of this section.

SEC. 2209. REGULATIONS.

(a) IN GENERAL.—In addition to the regulations specifically

authorized in this title, the Office may prescribe such other regulations as are necessary for the administration of this title.

(b) FORMER SPOUSE.—The regulations prescribed under this

title shall provide for protection of the rights of a former spouse

with entitlement to an apportionment of benefits or to survivor

benefits based on the service of the employee.

5 USC 8331 note.

Deadline.

5 USC 8331 note.

5 USC 8331 note.

PUBLIC LAW 106–265—SEPT. 19, 2000 114 STAT. 785

Subtitle C—Other Provisions

SEC. 2301. PROVISIONS TO AUTHORIZE CONTINUED CONFORMITY OF

OTHER FEDERAL RETIREMENT SYSTEMS.

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

Service Act of 1980 (22 U.S.C. 4067 and 4071) shall apply with

respect to this title in the same manner as if this title were

part of—

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

this title relates to the Civil Service Retirement System; and

(2) the Federal Employees’ Retirement System, to the

extent this title relates to the Federal Employees’ Retirement

System.

(b) CENTRAL INTELLIGENCE AGENCY.—Sections 292 and 301

of the Central Intelligence Agency Retirement Act (50 U.S.C. 2141

and 2151) shall apply with respect to this title in the same manner

as if this title were part of—

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

this title relates to the Civil Service Retirement System; and

(2) the Federal Employees’ Retirement System, to the

extent this title relates to the Federal Employees’ Retirement

System.

SEC. 2302. AUTHORIZATION OF PAYMENTS.

All payments authorized or required by this title to be paid

from the Civil Service Retirement and Disability Fund, together

with administrative expenses incurred by the Office in administering this title, shall be deemed to have been authorized to

be paid from that Fund, which is appropriated for the payment

thereof.

SEC. 2303. INDIVIDUAL RIGHT OF ACTION PRESERVED FOR AMOUNTS

NOT OTHERWISE PROVIDED FOR UNDER THIS TITLE.

Nothing in this title shall preclude an individual from bringing

a claim against the Government of the United States which such

individual may have under section 1346(b) or chapter 171 of title

28, United States Code, or any other provision of law (except

to the extent the claim is for any amounts otherwise provided

for under this title).

5 USC 8331 note.

5 USC 8331 note.

Applicability.

Applicability.

5 USC 8331 note.

114 STAT. 786 PUBLIC LAW 106–265—SEPT. 19, 2000

LEGISLATIVE HISTORY—H.R. 4040 (S. 2420):

HOUSE REPORTS: No. 106–610, Pt. 1 (Comm. on Government Reform).

SENATE REPORTS: No. 106–344 accompanying S. 2420 (Comm. on Governmental

Affairs).

CONGRESSIONAL RECORD, Vol. 146 (2000):

May 9, considered and passed House.

July 25, considered and passed Senate, amended, in lieu of S. 2420.

July 27, House concurred in Senate amendments with amendments.

Senate concurred in House amendments.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000):

Sept. 19, Presidential remarks and statement.

Æ

Subtitle D—Effective Date

SEC. 2401. EFFECTIVE DATE.

Except as otherwise provided in this title, this title shall take

effect on the date of the enactment of this Act.

Approved September 19, 2000.

5 USC 8331 note.