I 

111TH CONGRESS 

1ST SESSION H. R. 2990 

To provide special pays and allowances to certain members of the Armed 

Forces, expand concurrent receipt of military retirement and VA disability benefits to disabled military retirees, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 23, 2009 

Mr. SKELTON (for himself, Mr. TOWNS, Mr. SPRATT, Mr. WAXMAN, Mr. RAHALL, Mr. MARKEY of Massachusetts, Mrs. DAVIS of California, and Mr. 

LYNCH) introduced the following bill; which was referred to the Committee on Armed Services, and in addition to the Committees on Oversight and Government Reform, Natural Resources, and Veterans’ Affairs, 

for a period to be subsequently determined by the Speaker, in each case 

for consideration of such provisions as fall within the jurisdiction of the 

committee concerned 

A BILL 

To provide special pays and allowances to certain members 

of the Armed Forces, expand concurrent receipt of military retirement and VA disability benefits to disabled 

military retirees, and for other purposes. 

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. 

4 This Act may be cited as the ‘‘Disabled Military Re5 tiree Relief Act of 2009’’. 


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1 SEC. 2. TABLE OF CONTENTS. 

2 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—COMPENSATION AND BENEFITS FOR MEMBERS OF THE 

ARMED FORCES AND MILITARY RETIREES 

Subtitle A—Bonuses and Special and Incentive Pays 

Sec. 101. One-year extension of certain bonus and special pay authorities for 

reserve forces. 

Sec. 102. One-year extension of certain bonus and special pay authorities for 

health care professionals. 

Sec. 103. One-year extension of special pay and bonus authorities for nuclear 

officers. 

Sec. 104. One-year extension of authorities relating to title 37 consolidated special pay, incentive pay, and bonus authorities. 

Sec. 105. One-year extension of authorities relating to payment of other title 

37 bonuses and special pay. 

Sec. 106. One-year extension of authorities relating to payment of referral bonuses. 

Sec. 107. Technical corrections and conforming amendments to reconcile conflicting amendments regarding continued payment of bonuses 

and similar benefits for certain members. 

Subtitle B—Retired Pay Benefits 

Sec. 111. Recomputation of retired pay and adjustment of retired grade of Reserve retirees to reflect service after retirement. 

Sec. 112. Election to receive retired pay for non-regular service upon retirement 

for service in an active reserve status performed after attaining 

eligibility for regular retirement. 

Subtitle C—Concurrent Receipt of Military Retired Pay and Veterans’ 

Disability Compensation 

Sec. 121. One-year expansion of eligibility for concurrent receipt of military retired pay and veterans’ disability compensation to include all 

chapter 61 disability retirees regardless of disability rating percentage or years of service. 

TITLE II—FEDERAL EMPLOYEE BENEFITS 

Subtitle A—General Provisions 

Sec. 201. Credit for unused sick leave. 

Sec. 202. Limited expansion of the class of individuals eligible to receive an actuarially reduced annuity under the civil service retirement system. 

Sec. 203. Computation of certain annuities based on part-time service. 

Sec. 204. Authority to deposit refunds under FERS. 

Sec. 205. Retirement credit for service of certain employees transferred from 

District of Columbia service to Federal service. 


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Subtitle B—Non-Foreign Area Retirement Equity Assurance 

Sec. 211. Short title. 

Sec. 212. Extension of Locality Pay. 

Sec. 213. Adjustment of special rates. 

Sec. 214. Transition schedule for locality-based comparability payments. 

Sec. 215. Savings provision. 

Sec. 216. Application to other eligible employees. 

Sec. 217. Election of additional basic pay for annuity computation by employees. 

Sec. 218. Regulations. 

Sec. 219. Effective dates. 

TITLE III—DEEPWATER OIL AND GAS RESEARCH AND 

DEVELOPMENT FUNDING SOURCE REPEAL 

Sec. 301. Repeal. 

1 TITLE I—COMPENSATION AND 

2 BENEFITS FOR MEMBERS OF 

3 THE ARMED FORCES AND 

4 MILITARY RETIREES 

5 Subtitle A—Bonuses and Special 

6 and Incentive Pays 

7 SEC. 101. ONE-YEAR EXTENSION OF CERTAIN BONUS AND 

8 SPECIAL PAY AUTHORITIES FOR RESERVE 

9 FORCES. 

10 The following sections of title 37, United States 

11 Code, are amended by striking ‘‘December 31, 2009’’ and 

12 inserting ‘‘December 31, 2010’’: 

13 (1) Section 308b(g), relating to Selected Re14 serve reenlistment bonus. 

15 (2) Section 308c(i), relating to Selected Reserve 

16 affiliation or enlistment bonus. 


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1 (3) Section 308d(c), relating to special pay for 

2 enlisted members assigned to certain high-priority 

3 units. 

4 (4) Section 308g(f)(2), relating to Ready Re5 serve enlistment bonus for persons without prior 

6 service. 

7 (5) Section 308h(e), relating to Ready Reserve 

8 enlistment and reenlistment bonus for persons with 

9 prior service. 

10 (6) Section 308i(f), relating to Selected Reserve 

11 enlistment and reenlistment bonus for persons with 

12 prior service. 

13 (7) Section 910(g), relating to income replace14 ment payments for reserve component members ex15 periencing extended and frequent mobilization for 

16 active duty service. 

17 SEC. 102. ONE-YEAR EXTENSION OF CERTAIN BONUS AND 

18 SPECIAL PAY AUTHORITIES FOR HEALTH 

19 CARE PROFESSIONALS. 

20 (a) TITLE 10 AUTHORITIES.—The following sections 

21 of title 10, United States Code, are amended by striking 

22 ‘‘December 31, 2009’’ and inserting ‘‘December 31, 

23 2010’’: 

24 (1) Section 2130a(a)(1), relating to nurse offi25 cer candidate accession program. 


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1 (2) Section 16302(d), relating to repayment of 

2 education loans for certain health professionals who 

3 serve in the Selected Reserve. 

4 (b) TITLE 37 AUTHORITIES.—The following sections 

5 of title 37, United States Code, are amended by striking 

6 ‘‘December 31, 2009’’ and inserting ‘‘December 31, 

7 2010’’: 

8 (1) Section 302c–1(f), relating to accession and 

9 retention bonuses for psychologists. 

10 (2) Section 302d(a)(1), relating to accession 

11 bonus for registered nurses. 

12 (3) Section 302e(a)(1), relating to incentive 

13 special pay for nurse anesthetists. 

14 (4) Section 302g(e), relating to special pay for 

15 Selected Reserve health professionals in critically 

16 short wartime specialties. 

17 (5) Section 302h(a)(1), relating to accession 

18 bonus for dental officers. 

19 (6) Section 302j(a), relating to accession bonus 

20 for pharmacy officers. 

21 (7) Section 302k(f), relating to accession bonus 

22 for medical officers in critically short wartime spe23 cialties. 


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1 (8) Section 302l(g), relating to accession bonus 

2 for dental specialist officers in critically short war3 time specialties. 

4 SEC. 103. ONE-YEAR EXTENSION OF SPECIAL PAY AND 

5 BONUS AUTHORITIES FOR NUCLEAR OFFI6 CERS. 

7 The following sections of title 37, United States 

8 Code, are amended by striking ‘‘December 31, 2009’’ and 

9 inserting ‘‘December 31, 2010’’: 

10 (1) Section 312(f), relating to special pay for 

11 nuclear-qualified officers extending period of active 

12 service. 

13 (2) Section 312b(c), relating to nuclear career 

14 accession bonus. 

15 (3) Section 312c(d), relating to nuclear career 

16 annual incentive bonus. 

17 SEC. 104. ONE-YEAR EXTENSION OF AUTHORITIES RELAT18 ING TO TITLE 37 CONSOLIDATED SPECIAL 

19 PAY, INCENTIVE PAY, AND BONUS AUTHORI20 TIES. 

21 The following sections of title 37, United States 

22 Code, are amended by striking ‘‘December 31, 2009’’ and 

23 inserting ‘‘December 31, 2010’’: 

24 (1) Section 331(h), relating to general bonus 

25 authority for enlisted members. 


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1 (2) Section 332(g), relating to general bonus 

2 authority for officers. 

3 (3) Section 333(i), relating to special bonus and 

4 incentive pay authorities for nuclear officers. 

5 (4) Section 334(i), relating to special aviation 

6 incentive pay and bonus authorities for officers. 

7 (5) Section 335(k), relating to special bonus 

8 and incentive pay authorities for officers in health 

9 professions. 

10 (6) Section 351(i), relating to hazardous duty 

11 pay. 

12 (7) Section 352(g), relating to assignment pay 

13 or special duty pay. 

14 (8) Section 353(j), relating to skill incentive 

15 pay or proficiency bonus. 

16 (9) Section 355(i), relating to retention incen17 tives for members qualified in critical military skills 

18 or assigned to high priority units. 

19 SEC. 105. ONE-YEAR EXTENSION OF AUTHORITIES RELAT20 ING TO PAYMENT OF OTHER TITLE 37 BO21 NUSES AND SPECIAL PAY. 

22 The following sections of chapter 5 of title 37, United 

23 States Code, are amended by striking ‘‘December 31, 

24 2009’’ and inserting ‘‘December 31, 2010’’: 


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1 (1) Section 301b(a), relating to aviation officer 

2 retention bonus. 

3 (2) Section 307a(g), relating to assignment in4 centive pay. 

5 (3) Section 308(g), relating to reenlistment 

6 bonus for active members. 

7 (4) Section 309(e), relating to enlistment 

8 bonus. 

9 (5) Section 324(g), relating to accession bonus 

10 for new officers in critical skills. 

11 (6) Section 326(g), relating to incentive bonus 

12 for conversion to military occupational specialty to 

13 ease personnel shortage. 

14 (7) Section 327(h), relating to incentive bonus 

15 for transfer between Armed Forces. 

16 (8) Section 330(f), relating to accession bonus 

17 for officer candidates. 

18 SEC. 106. ONE-YEAR EXTENSION OF AUTHORITIES RELAT19 ING TO PAYMENT OF REFERRAL BONUSES. 

20 The following sections of title 10, United States 

21 Code, are amended by striking ‘‘December 31, 2009’’ and 

22 inserting ‘‘December 31, 2010’’: 

23 (1) Section 1030(i), relating to health profes24 sions referral bonus. 


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1 (2) Section 3252(h), relating to Army referral 

2 bonus. 

3 SEC. 107. TECHNICAL CORRECTIONS AND CONFORMING 

4 AMENDMENTS TO RECONCILE CONFLICTING 

5 AMENDMENTS REGARDING CONTINUED PAY6 MENT OF BONUSES AND SIMILAR BENEFITS 

7 FOR CERTAIN MEMBERS. 

8 (a) TECHNICAL CORRECTIONS TO RECONCILE CON9 FLICTING AMENDMENTS.—Section 303a(e) of title 37, 

10 United States Code, is amended— 

11 (1) in paragraph (1)(A), by striking ‘‘paragraph 

12 (2)’’ and inserting ‘‘paragraphs (2) and (3)’’; 

13 (2) by redesignating paragraphs (3) and (4) as 

14 paragraphs (4) and (5), respectively; 

15 (3) in paragraph (5), as so redesignated, by 

16 striking ‘‘paragraph (3)(B)’’ and inserting ‘‘para17 graph (4)(B)’’; 

18 (4) by redesignating paragraph (2), as added by 

19 section 651(b) of the Duncan Hunter National De20 fense Authorization Act for Fiscal Year 2009 (Pub21 lic Law 110–417; 122 Stat. 4495), as paragraph 

22 (3); and 

23 (5) by redesignating the second subparagraph 

24 (B) of paragraph (1), originally added as paragraph 

25 (2) by section 2(a)(3) of the Hubbard Act (Public 


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1 Law 110–317; 122 Stat. 3526) and erroneously des2 ignated as subparagraph (B) by section 651(a)(3) of 

3 the Duncan Hunter National Defense Authorization 

4 Act for Fiscal Year 2009 (Public Law 110–417; 122 

5 Stat. 4495), as paragraph (2). 

6 (b) INCLUSION OF HUBBARD ACT AMENDMENT IN

7 CONSOLIDATED SPECIAL PAY AND BONUS AUTHORI8 TIES.—Section 373(b) of such title is amended— 

9 (1) in paragraph (2), by striking the paragraph 

10 heading and inserting ‘‘SPECIAL RULE FOR DE11 CEASED AND DISABLED MEMBERS.—’’; and 

12 (2) by adding at the end the following new 

13 paragraph: 

14 ‘‘(3) SPECIAL RULE FOR MEMBERS WHO RE15 CEIVE SOLE SURVIVORSHIP DISCHARGE.—(A) If a 

16 member of the uniformed services receives a sole 

17 survivorship discharge, the Secretary concerned— 

18 ‘‘(i) shall not require repayment by the 

19 member of the unearned portion of any bonus, 

20 incentive pay, or similar benefit previously paid 

21 to the member; and 

22 ‘‘(ii) may grant an exception to the re23 quirement to terminate the payment of any un24 paid amounts of a bonus, incentive pay, or simi25 lar benefit if the Secretary concerned deterVerDate Nov 24 2008 04:04 Jun 24, 2009 Jkt 079200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2990.IH H2990

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1 mines that termination of the payment of the 

2 unpaid amounts would be contrary to a per3 sonnel policy or management objective, would 

4 be against equity and good conscience, or would 

5 be contrary to the best interests of the United 

6 States. 

7 ‘‘(B) In this paragraph, the term ‘sole survivor8 ship discharge’ means the separation of a member 

9 from the Armed Forces, at the request of the mem10 ber, pursuant to the Department of Defense policy 

11 permitting the early separation of a member who is 

12 the only surviving child in a family in which— 

13 ‘‘(i) the father or mother or one or more 

14 siblings— 

15 ‘‘(I) served in the Armed Forces; and 

16 ‘‘(II) was killed, died as a result of 

17 wounds, accident, or disease, is in a cap18 tured or missing in action status, or is per19 manently 100 percent disabled or hospital20 ized on a continuing basis (and is not em21 ployed gainfully because of the disability or 

22 hospitalization); and 

23 ‘‘(ii) the death, status, or disability did not 

24 result from the intentional misconduct or willful 

25 neglect of the parent or sibling and was not inVerDate Nov 24 2008 04:04 Jun 24, 2009 Jkt 079200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H2990.IH H2990

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1 curred during a period of unauthorized ab2 sence.’’. 

3 Subtitle B—Retired Pay Benefits 

4 SEC. 111. RECOMPUTATION OF RETIRED PAY AND ADJUST5 MENT OF RETIRED GRADE OF RESERVE RE6 TIREES TO REFLECT SERVICE AFTER RE7 TIREMENT. 

8 (a) RECOMPUTATION OF RETIRED PAY.—Section 

9 12739 of title 10, United States Code, is amended by add10 ing at the end the following new subsection: 

11 ‘‘(e)(1) If a member of the Retired Reserve is recalled 

12 to an active status in the Selected Reserve of the Ready 

13 Reserve under section 10145(d) of this title and completes 

14 not less than two years of service in such active status, 

15 the member is entitled to the recomputation under this 

16 section of the retired pay of the member. 

17 ‘‘(2) The Secretary concerned may reduce the two18 year service requirement specified in paragraph (1) in the 

19 case of a member who— 

20 ‘‘(A) is recalled to serve in a position of adju21 tant general required under section 314 of title 32 

22 or in a position of assistant adjutant general subor23 dinate to such a position of adjutant general; 

24 ‘‘(B) completes at least six months of service in 

25 such position; and 


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1 ‘‘(C) fails to complete the minimum two years 

2 of service solely because the appointment of the 

3 member to such position is terminated or vacated as 

4 described in section 324(b) of title 32.’’. 

5 (b) ADJUSTMENT OF RETIRED GRADE.—Section 

6 12771 of such title is amended— 

7 (1) by striking ‘‘Unless’’ and inserting ‘‘(a) 

8 GRADE ON TRANSFER.—Unless’’; and 

9 (2) by adding at the end the following new sub10 section: 

11 ‘‘(b) EFFECT OF SUBSEQUENT RECALL TO ACTIVE

12 STATUS.—(1) If a member of the Retired Reserve who 

13 is a commissioned officer is recalled to an active status 

14 in the Selected Reserve of the Ready Reserve under sec15 tion 10145(d) of this title and completes not less than two 

16 years of service in such active status, the member is enti17 tled to an adjustment in the retired grade of the member 

18 in the manner provided in section 1370(d) of this title. 

19 ‘‘(2) The Secretary concerned may reduce the two20 year service requirement specified in paragraph (1) in the 

21 case of a member who— 

22 ‘‘(A) is recalled to serve in a position of adju23 tant general required under section 314 of title 32 

24 or in a position of assistant adjutant general subor25 dinate to such a position of adjutant general; 


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1 ‘‘(B) completes at least six months of service in 

2 such position; and 

3 ‘‘(C) fails to complete the minimum two years 

4 of service solely because the appointment of the 

5 member to such position is terminated or vacated as 

6 described in section 324(b) of title 32.’’. 

7 (c) RETROACTIVE APPLICABILITY.—The amend8 ments made by this section shall take effect as of January 

9 1, 2008. 

10 SEC. 112. ELECTION TO RECEIVE RETIRED PAY FOR NON11 REGULAR SERVICE UPON RETIREMENT FOR 

12 SERVICE IN AN ACTIVE RESERVE STATUS 

13 PERFORMED AFTER ATTAINING ELIGIBILITY 

14 FOR REGULAR RETIREMENT. 

15 (a) ELECTION AUTHORITY; REQUIREMENTS.—Sub16 section (a) of section 12741 of title 10, United States 

17 Code, is amended to read as follows: 

18 ‘‘(a) AUTHORITY TO ELECT TO RECEIVE RESERVE

19 RETIRED PAY.—(1) Notwithstanding the requirement in 

20 paragraph (4) of section 12731(a) of this title that a per21 son may not receive retired pay under this chapter when 

22 the person is entitled, under any other provision of law, 

23 to retired pay or retainer pay, a person may elect to re24 ceive retired pay under this chapter, instead of receiving 


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1 retired or retainer pay under chapter 65, 367, 571, or 867 

2 of this title, if the person— 

3 ‘‘(A) satisfies the requirements specified in 

4 paragraphs (1) and (2) of such section for entitle5 ment to retired pay under this chapter; 

6 ‘‘(B) served in an active status in the Selected 

7 Reserve of the Ready Reserve after becoming eligible 

8 for retirement under chapter 65, 367, 571, or 867 

9 of this title (without regard to whether the person 

10 actually retired or received retired or retainer pay 

11 under one of those chapters); and 

12 ‘‘(C) completed not less than two years of satis13 factory service (as determined by the Secretary con14 cerned) in such active status (excluding any period 

15 of active service). 

16 ‘‘(2) The Secretary concerned may reduce the min17 imum two-year service requirement specified in paragraph 

18 (1)(C) in the case of a person who— 

19 ‘‘(A) completed at least six months of service in 

20 a position of adjutant general required under section 

21 314 of title 32 or in a position of assistant adjutant 

22 general subordinate to such a position of adjutant 

23 general; and 

24 ‘‘(B) failed to complete the minimum years of 

25 service solely because the appointment of the person 


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1 to such position was terminated or vacated as de2 scribed in section 324(b) of title 32.’’. 

3 (b) ACTIONS TO EFFECTUATE ELECTION.—Sub4 section (b) of such section is amended by striking para5 graph (1) and inserting the following new paragraph: 

6 ‘‘(1) terminate the eligibility of the person to 

7 retire under chapter 65, 367, 571, or 867 of this 

8 title, if the person is not already retired under one 

9 of those chapters, and terminate entitlement of the 

10 person to retired or retainer pay under one of those 

11 chapters, if the person was already receiving retired 

12 or retainer pay under one of those chapters; and’’. 

13 (c) CONFORMING AMENDMENT TO REFLECT NEW

14 VARIABLE AGE REQUIREMENT FOR RETIREMENT.—Sub15 section (d) of such section is amended— 

16 (1) in paragraph (1), by striking ‘‘attains 60 

17 years of age’’ and inserting ‘‘attains the eligibility 

18 age applicable to the person under section 12731(f) 

19 of this title’’; and 

20 (2) in paragraph (2)(A), by striking ‘‘attains 60 

21 years of age’’ and inserting ‘‘attains the eligibility 

22 age applicable to the person under such section’’. 

23 (d) CLERICAL AMENDMENTS.— 


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1 (1) SECTION HEADING.—The heading for sec2 tion 12741 of such title is amended to read as fol3 lows: 

4 ‘‘§ 12741. Retirement for service in an active status 

5 performed in the Selected Reserve of the 

6 Ready Reserve after eligibility for reg7 ular retirement’’. 

8 (2) TABLE OF SECTIONS.—The table of sections 

9 at the beginning of chapter 1223 of such title is 

10 amended by striking the item relating to section 

11 12741 and inserting the following new item: 

‘‘12741. Retirement for service in an active status performed in the Selected Reserve of the Ready Reserve after eligibility for regular retirement.’’. 

12 (e) RETROACTIVE APPLICABILITY.—The amend13 ments made by this section shall take effect as of January 

14 1, 2008. 


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1 Subtitle C—Concurrent Receipt of 

2 Military Retired Pay and Vet3 erans’ Disability Compensation 

4 SEC. 121. ONE-YEAR EXPANSION OF ELIGIBILITY FOR CON5 CURRENT RECEIPT OF MILITARY RETIRED 

6 PAY AND VETERANS’ DISABILITY COMPENSA7 TION TO INCLUDE ALL CHAPTER 61 DIS8 ABILITY RETIREES REGARDLESS OF DIS9 ABILITY RATING PERCENTAGE OR YEARS OF 

10 SERVICE. 

11 (a) PHASED EXPANSION CONCURRENT RECEIPT.— 

12 Subsection (a) of section 1414 of title 10, United States 

13 Code, is amended to read as follows: 

14 ‘‘(a) PAYMENT OF BOTH RETIRED PAY AND DIS15 ABILITY COMPENSATION.— 

16 ‘‘(1) PAYMENT OF BOTH REQUIRED.— 

17 ‘‘(A) IN GENERAL.—Subject to subsection 

18 (b), a member or former member of the uni19 formed services who is entitled for any month 

20 to retired pay and who is also entitled for that 

21 month to veterans’ disability compensation for a 

22 qualifying service-connected disability (in this 

23 section referred to as a ‘qualified retiree’) is en24 titled to be paid both for that month without 

25 regard to sections 5304 and 5305 of title 38. 


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1 ‘‘(B) APPLICABILITY OF FULL CONCUR2 RENT RECEIPT PHASE-IN REQUIREMENT.—Dur3 ing the period beginning on January 1, 2004, 

4 and ending on December 31, 2013, payment of 

5 retired pay to a qualified retiree is subject to 

6 subsection (c). 

7 ‘‘(C) PHASE-IN EXCEPTION FOR 100 PER8 CENT DISABLED RETIREES.—The payment of 

9 retired pay is subject to subsection (c) only dur10 ing the period beginning on January 1, 2004, 

11 and ending on December 31, 2004, in the case 

12 of the following qualified retirees: 

13 ‘‘(i) A qualified retiree receiving vet14 erans’ disability compensation for a dis15 ability rated as 100 percent. 

16 ‘‘(ii) A qualified retiree receiving vet17 erans’ disability compensation at the rate 

18 payable for a 100 percent disability by rea19 son of a determination of individual 

20 unemployability. 

21 ‘‘(D) TEMPORARY PHASE-IN EXCEPTION

22 FOR CERTAIN CHAPTER 61 DISABILITY RETIR23 EES; TERMINATION.—Subject to subsection (b), 

24 during the period beginning on January 1, 

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1 section (c) shall not apply to a qualified retiree 

2 described in subparagraph (B) or (C) of para3 graph (2). 

4 ‘‘(2) QUALIFYING SERVICE-CONNECTED DIS5 ABILITY DEFINED.—In this section, the term ‘quali6 fying service-connected disability’ means the fol7 lowing: 

8 ‘‘(A) In the case of a member or former 

9 member receiving retired pay under any provi10 sion of law other than chapter 61 of this title, 

11 or under chapter 61 with 20 years or more of 

12 service otherwise creditable under section 1405 

13 or computed under section 12732 of this title, 

14 a service-connected disability or combination of 

15 service-connected disabilities that is rated as 

16 not less than 50 percent disabling by the Sec17 retary of Veterans Affairs. 

18 ‘‘(B) In the case of a member or former 

19 member receiving retired pay under chapter 61 

20 of this title with less than 20 years of service 

21 otherwise creditable under section 1405 or com22 puted under section 12732 of this title, a serv23 ice-connected disability or combination of serv24 ice-connected disabilities that is rated by the 

25 Secretary of Veterans Affairs at the disabling 


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1 level specified in one of the following clauses 

2 (and, subject to paragraph (3), is effective on 

3 or after the date specified in the applicable 

4 clause): 

5 ‘‘(i) January 1, 2010, rated 100 per6 cent, or a rate payable at 100 percent by 

7 reason of individual unemployability or 

8 rated 90 percent. 

9 ‘‘(ii) January 1, 2011, rated 80 per10 cent or 70 percent. 

11 ‘‘(iii) January 1, 2012, rated 60 per12 cent or 50 percent. 

13 ‘‘(C) In the case of a member or former 

14 member receiving retired pay under chapter 61 

15 regardless of years of service, a service-con16 nected disability or combination of service-con17 nected disabilities that is rated by the Secretary 

18 of Veterans Affairs at the disabling level speci19 fied in one of the following clauses (and, subject 

20 to paragraph (3), is effective on or after the 

21 date specified in the applicable clause): 

22 ‘‘(i) January 1, 2013, rated 40 per23 cent or 30 percent. 

24 ‘‘(ii) January 1, 2014, any rating. 


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1 ‘‘(3) LIMITED DURATION.—Notwithstanding 

2 the effective date specified in each clause of subpara3 graphs (B) and (C) of paragraph (2), the clause 

4 shall apply only if the termination date specified in 

5 subparagraph (D) of paragraph (1) occurs during or 

6 after the calendar year specified in the clause, except 

7 that, eligibility may not extend beyond the termi8 nation date.’’. 

9 (b) CONFORMING AMENDMENT TO SPECIAL RULES

10 FOR CHAPTER 61 DISABILITY RETIREES.—Subsection (b) 

11 of such section is amended to read as follows: 

12 ‘‘(b) SPECIAL RULES FOR CHAPTER 61 DISABILITY

13 RETIREES WHEN ELIGIBILITY HAS BEEN ESTABLISHED

14 FOR SUCH RETIREES.— 

15 ‘‘(1) GENERAL REDUCTION RULE.—The retired 

16 pay of a member retired under chapter 61 of this 

17 title is subject to reduction under sections 5304 and 

18 5305 of title 38, but only to the extent that the 

19 amount of the members retired pay under chapter 

20 61 of this title exceeds the amount of retired pay to 

21 which the member would have been entitled under 

22 any other provision of law based upon the member’s 

23 service in the uniformed services if the member had 

24 not been retired under chapter 61 of this title. 


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1 ‘‘(2) RETIREES WITH FEWER THAN 20 YEARS

2 OF SERVICE.— 

3 ‘‘(A) BEFORE TERMINATION DATE.—If a 

4 member with a qualifying service-connected dis5 ability (as defined in subsection (a)(2)) is re6 tired under chapter 61 of this title with fewer 

7 than 20 years of creditable service otherwise 

8 creditable under section 1405 or computed 

9 under section 12732 of this title, and the termi10 nation date specified in subsection (a)(1)(D) 

11 has not occurred, the retired pay of the member 

12 is subject to reduction under sections 5304 and 

13 5305 of title 38, but only to the extent that the 

14 amount of the member’s retired pay under 

15 chapter 61 of this title exceeds the amount 

equal to 21 16 ⁄2 percent of the member’s years of 

17 creditable service multiplied by the member’s 

18 retired pay base under section 1406(b)(1) or 

19 1407 of this title, whichever is applicable to the 

20 member. 

21 ‘‘(B) AFTER TERMINATION DATE.—Sub22 section (a) does not apply to a member retired 

23 under chapter 61 of this title with less than 20 

24 years of service otherwise creditable under sec25 tion 1405 of this title, or with less than 20 


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1 years of service computed under section 12732 

2 of this title, at the time of the retirement of the 

3 member if the termination date in paragraph 

4 (1)(D) of such subsection has occurred.’’. 

5 (c) CONFORMING AMENDMENT TO FULL CONCUR6 RENT RECEIPT PHASE-IN.—Subsection (c) of such section 

7 is amended by striking ‘‘the second sentence of’’. 

8 (d) CLERICAL AMENDMENTS.— 

9 (1) SECTION HEADING.—The heading of such 

10 section is amended to read as follows: 

11 ‘‘§ 1414. Concurrent receipt of retired pay and vet12 erans’ disability compensation’’. 

13 (2) TABLE OF SECTIONS.—The table of sections 

14 at the beginning of chapter 71 of such title is 

15 amended by striking the item related to section 1414 

16 and inserting the following new item: 

‘‘1414. Concurrent receipt of retired pay and veterans’ disability compensation.’’. 

17 (e) EFFECTIVE DATE.—The amendments made by 

18 this section shall take effect on January 1, 2010. 

19 TITLE II—FEDERAL EMPLOYEE 

20 BENEFITS 

21 Subtitle A—General Provisions 

22 SEC. 201. CREDIT FOR UNUSED SICK LEAVE. 

23 (a) IN GENERAL.—Section 8415 of title 5, United 

24 States Code, is amended— 


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1 (1) by redesignating the second subsection (k) 

2 and subsection (l) as subsections (l) and (m), respec3 tively; and 

4 (2) in subsection (l) (as so redesignated by 

5 paragraph (1))— 

6 (A) by striking ‘‘(l) In computing’’ and in7 serting ‘‘(l)(1) In computing’’; and 

8 (B) by adding at the end the following: 

9 ‘‘(2) Except as provided in paragraph (1), in com10 puting an annuity under this subchapter, the total service 

11 of an employee who retires on an immediate annuity or 

12 who dies leaving a survivor or survivors entitled to annuity 

13 includes the days of unused sick leave to his credit under 

14 a formal leave system and for which days the employee 

15 has not received payment, except that these days will not 

16 be counted in determining average pay or annuity eligi17 bility under this subchapter. For purposes of this sub18 section, in the case of any such employee who is excepted 

19 from subchapter I of chapter 63 under section 6301(2)(x) 

20 through (xiii), the days of unused sick leave to his credit 

21 include any unused sick leave standing to his credit when 

22 he was excepted from such subchapter.’’. 

23 (b) EXCEPTION FROM DEPOSIT REQUIREMENT.— 

24 Section 8422(d)(2) of title 5, United States Code, is 


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1 amended by striking ‘‘section 8415(k)’’ and inserting 

2 ‘‘paragraph (1) or (2) of section 8415(l)’’. 

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

4 this section shall apply with respect to annuities computed 

5 based on separations occurring on or after the date of en6 actment of this Act. 

7 SEC. 202. LIMITED EXPANSION OF THE CLASS OF INDIVID8 UALS ELIGIBLE TO RECEIVE AN ACTUARI9 ALLY REDUCED ANNUITY UNDER THE CIVIL 

10 SERVICE RETIREMENT SYSTEM. 

11 (a) IN GENERAL.—Section 8334(d)(2)(A)(i) of title 

12 5, United States Code, is amended by striking ‘‘October 

13 1, 1990’’ each place it appears and inserting ‘‘March 1, 

14 1991’’. 

15 (b) APPLICABILITY.—The amendment made by sub16 section (a) shall be effective with respect to any annuity, 

17 entitlement to which is based on a separation from service 

18 occurring on or after the date of enactment of this Act. 

19 SEC. 203. COMPUTATION OF CERTAIN ANNUITIES BASED 

20 ON PART-TIME SERVICE. 

21 (a) IN GENERAL.—Section 8339(p) of title 5, United 

22 States Code, is amended by adding at the end the fol23 lowing: 

24 ‘‘(3) In the administration of paragraph (1)— 


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1 ‘‘(A) subparagraph (A) of such paragraph shall 

2 apply with respect to service performed before, on, 

3 or after April 7, 1986; and 

4 ‘‘(B) subparagraph (B) of such paragraph— 

5 ‘‘(i) shall apply with respect to that portion 

6 of any annuity which is attributable to service 

7 performed on or after April 7, 1986; and 

8 ‘‘(ii) shall not apply with respect to that 

9 portion of any annuity which is attributable to 

10 service performed before April 7, 1986.’’. 

11 (b) APPLICABILITY.—The amendment made by sub12 section (a) shall be effective with respect to any annuity, 

13 entitlement to which is based on a separation from service 

14 occurring on or after the date of enactment of this Act. 

15 SEC. 204. AUTHORITY TO DEPOSIT REFUNDS UNDER FERS. 

16 (a) DEPOSIT AUTHORITY.—Section 8422 of title 5, 

17 United States Code, is amended by adding at the end the 

18 following: 

19 ‘‘(i)(1) Each employee or Member who has received 

20 a refund of retirement deductions under this or any other 

21 retirement system established for employees of the Gov22 ernment covering service for which such employee or Mem23 ber may be allowed credit under this chapter may deposit 

24 the amount received, with interest. Credit may not be alVerDate Nov 24 2008 04:04 Jun 24, 2009 Jkt 079200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H2990.IH H2990

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1 lowed for the service covered by the refund until the de2 posit is made. 

3 ‘‘(2) Interest under this subsection shall be computed 

4 in accordance with paragraphs (2) and (3) of section 

5 8334(e) and regulations prescribed by the Office. The op6 tion under the third sentence of section 8334(e)(2) to 

7 make a deposit in one or more installments shall apply 

8 to deposits under this subsection. 

9 ‘‘(3) For the purpose of survivor annuities, deposits 

10 authorized by this subsection may also be made by a sur11 vivor of an employee or Member.’’. 

12 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

13 (1) DEFINITIONAL AMENDMENT.—Section 

14 8401(19)(C) of title 5, United States Code, is 

15 amended by striking ‘‘8411(f);’’ and inserting 

16 ‘‘8411(f) or 8422(i);’’. 

17 (2) CREDITING OF DEPOSITS.—Section 8422(c) 

18 of title 5, United States Code, is amended by adding 

19 at the end the following: ‘‘Deposits made by an em20 ployee, Member, or survivor also shall be credited to 

21 the Fund.’’. 

22 (3) SECTION HEADING.—(A) The heading for 

23 section 8422 of title 5, United States Code, is 

24 amended to read as follows: 


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1 ‘‘§ 8422. Deductions from pay; contributions for other 

2 service; deposits’’. 

3 (B) The analysis for chapter 84 of title 5, 

4 United States Code, is amended by striking the item 

5 relating to section 8422 and inserting the following: 

‘‘8422. Deductions from pay; contributions for other service; deposits.’’. 

6 (4) RESTORATION OF ANNUITY RIGHTS.—The 

7 last sentence of section 8424(a) of title 5, United 

8 States Code, is amended by striking ‘‘based.’’ and 

9 inserting ‘‘based, until the employee or Member is 

10 reemployed in the service subject to this chapter.’’. 

11 SEC. 205. RETIREMENT CREDIT FOR SERVICE OF CERTAIN 

12 EMPLOYEES TRANSFERRED FROM DISTRICT 

13 OF COLUMBIA SERVICE TO FEDERAL SERV14 ICE. 

15 (a) RETIREMENT CREDIT.— 

16 (1) IN GENERAL.—Any individual who is treat17 ed as an employee of the Federal Government for 

18 purposes of chapter 83 or chapter 84 of title 5, 

19 United States Code, on or after the date of enact20 ment of this Act who performed qualifying District 

21 of Columbia service shall be entitled to have such 

22 service included in calculating the individual’s cred23 itable service under sections 8332 or 8411 of title 5, 

24 United States Code, but only for purposes of the fol25 lowing provisions of such title: 


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1 (A) Sections 8333 and 8410 (relating to 

2 eligibility for annuity). 

3 (B) Sections 8336 (other than subsections 

4 (d), (h), and (p) thereof) and 8412 (relating to 

5 immediate retirement). 

6 (C) Sections 8338 and 8413 (relating to 

7 deferred retirement). 

8 (D) Sections 8336(d), 8336(h), 8336(p), 

9 and 8414 (relating to early retirement). 

10 (E) Section 8341 and subchapter IV of 

11 chapter 84 (relating to survivor annuities). 

12 (F) Section 8337 and subchapter V of 

13 chapter 84 (relating to disability benefits). 

14 (2) TREATMENT OF DETENTION OFFICER SERV15 ICE AS LAW ENFORCEMENT OFFICER SERVICE.—Any 

16 portion of an individual’s qualifying District of Co17 lumbia service which consisted of service as a deten18 tion officer under section 2604(2) of the District of 

19 Columbia Government Comprehensive Merit Per20 sonnel Act of 1978 (sec. 1–626.04(2), D.C. Official 

21 Code) shall be treated as service as a law enforce22 ment officer under sections 8331(20) or 8401(17) of 

23 title 5, United States Code, for purposes of applying 

24 paragraph (1) with respect to the individual. 


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1 (3) SERVICE NOT INCLUDED IN COMPUTING

2 AMOUNT OF ANY ANNUITY.—Qualifying District of 

3 Columbia service shall not be taken into account for 

4 purposes of computing the amount of any benefit 

5 payable out of the Civil Service Retirement and Dis6 ability Fund. 

7 (b) QUALIFYING DISTRICT OF COLUMBIA SERVICE

8 DEFINED.—In this section, ‘‘qualifying District of Colum9 bia service’’ means any of the following: 

10 (1) Service performed by an individual as a 

11 nonjudicial employee of the District of Columbia 

12 courts— 

13 (A) which was performed prior to the ef14 fective date of the amendments made by section 

15 11246(b) of the Balanced Budget Act of 1997; 

16 and 

17 (B) for which the individual did not ever 

18 receive credit under the provisions of sub19 chapter III of chapter 83 or chapter 84 of title 

20 5, United States Code (other than by virtue of 

21 section 8331(1)(iv) of such title). 

22 (2) Service performed by an individual as an 

23 employee of an entity of the District of Columbia 

24 government whose functions were transferred to the 

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1 fender Supervision Trustee under section 11232 of 

2 the Balanced Budget Act of 1997— 

3 (A) which was performed prior to the ef4 fective date of the individual’s coverage as an 

5 employee of the Federal Government under sec6 tion 11232(f) of such Act; and 

7 (B) for which the individual did not ever 

8 receive credit under the provisions of sub9 chapter III of chapter 83 or chapter 84 of title 

10 5, United States Code (other than by virtue of 

11 section 8331(1)(iv) of such title). 

12 (3) Service performed by an individual as an 

13 employee of the District of Columbia Public De14 fender Service— 

15 (A) which was performed prior to the ef16 fective date of the amendments made by section 

17 7(e) of the District of Columbia Courts and 

18 Justice Technical Corrections Act of 1998; and 

19 (B) for which the individual did not ever 

20 receive credit under the provisions of sub21 chapter III of chapter 83 or chapter 84 of title 

22 5, United States Code (other than by virtue of 

23 section 8331(1)(iv) of such title). 

24 (4) In the case of an individual who was an em25 ployee of the District of Columbia Department of 


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1 Corrections who was separated from service as a re2 sult of the closing of the Lorton Correctional Com3 plex and who was appointed to a position with the 

4 Bureau of Prisons, the District of Columbia courts, 

5 the Pretrial Services, Parole, Adult Supervision, and 

6 Offender Supervision Trustee, the United States Pa7 role Commission, or the District of Columbia Public 

8 Defender Service, service performed by the indi9 vidual as an employee of the District of Columbia 

10 Department of Corrections— 

11 (A) which was performed prior to the ef12 fective date of the individual’s coverage as an 

13 employee of the Federal Government; and 

14 (B) for which the individual did not ever 

15 receive credit under the provisions of sub16 chapter III of chapter 83 or chapter 84 of title 

17 5, United States Code (other than by virtue of 

18 section 8331(1)(iv) of such title). 

19 (c) CERTIFICATION OF SERVICE.—The Office of Per20 sonnel Management shall accept the certification of the 

21 appropriate personnel official of the government of the 

22 District of Columbia or other independent employing enti23 ty concerning whether an individual performed qualifying 

24 District of Columbia service and the length of the period 

25 of such service the individual performed. 


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1 Subtitle B—Non-Foreign Area 

2 Retirement Equity Assurance 

3 SEC. 211. SHORT TITLE. 

4 This subtitle may be cited as the ‘‘Non-Foreign Area 

5 Retirement Equity Assurance Act of 2009’’ or the ‘‘Non6 Foreign AREA Act of 2009’’. 

7 SEC. 212. EXTENSION OF LOCALITY PAY. 

8 (a) LOCALITY-BASED COMPARABILITY PAYMENTS.— 

9 Section 5304 of title 5, United States Code, is amended— 

10 (1) in subsection (f)(1), by striking subpara11 graph (A) and inserting the following: 

12 ‘‘(A) each General Schedule position in the 

13 United States, as defined under section 

14 5921(4), and its territories and possessions, in15 cluding the Commonwealth of Puerto Rico and 

16 the Commonwealth of the Northern Mariana Is17 lands, shall be included within a pay locality;’’; 

18 (2) in subsection (g)— 

19 (A) in paragraph (2)— 

20 (i) in subparagraph (A), by striking 

21 ‘‘and’’ after the semicolon; 

22 (ii) in subparagraph (B) by striking 

23 the period and inserting ‘‘; and’’; and 

24 (iii) by adding after subparagraph (B) 

25 the following: 


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1 ‘‘(C) positions under subsection (h)(1)(C) 

2 not covered by appraisal systems certified under 

3 section 5382; and’’; and 

4 (B) by adding at the end the following: 

5 ‘‘(3) The applicable maximum under this sub6 section shall be level II of the Executive Schedule for 

7 positions under subsection (h)(1)(C) covered by ap8 praisal systems certified under section 5307(d).’’; 

9 and 

10 (3) in subsection (h)(1)— 

11 (A) in subparagraph (B) by striking ‘‘and’’ 

12 after the semicolon; 

13 (B) by redesignating subparagraph (C) as 

14 subparagraph (D); 

15 (C) by inserting after subparagraph (B) 

16 the following: 

17 ‘‘(C) a Senior Executive Service position 

18 under section 3132 or 3151 or a senior level po19 sition under section 5376 stationed within the 

20 United States, but outside the 48 contiguous 

21 States and the District of Columbia in which 

22 the incumbent was an individual who on the 

23 day before the date of enactment of the Non24 Foreign Area Retirement Equity Assurance Act 


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1 of 2009 was eligible to receive a cost-of-living 

2 allowance under section 5941; and’’; 

3 (D) in clause (iv) in the matter following 

4 subparagraph (D), by inserting ‘‘, except for 

5 members covered by subparagraph (C)’’ before 

6 the semicolon; and 

7 (E) in clause (v) in the matter following 

8 subparagraph (D), by inserting ‘‘, except for 

9 members covered by subparagraph (C)’’ before 

10 the semicolon. 

11 (b) ALLOWANCES BASED ON LIVING COSTS AND

12 CONDITIONS OF ENVIRONMENT.—Section 5941 of title 5, 

13 United States Code, is amended— 

14 (1) in subsection (a), by adding after the last 

15 sentence ‘‘Notwithstanding any preceding provision 

16 of this subsection, the cost-of-living allowance rate 

17 based on paragraph (1) shall be the cost-of-living al18 lowance rate in effect on the date of enactment of 

19 the Non-Foreign Area Retirement Equity Assurance 

20 Act of 2009, except as adjusted under subsection 

21 (c).’’; 

22 (2) by redesignating subsection (b) as sub23 section (d); and 

24 (3) by inserting after subsection (a) the fol25 lowing: 


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1 ‘‘(b) This section shall apply only to areas that are 

2 designated as cost-of-living allowance areas as in effect on 

3 December 31, 2009. 

4 ‘‘(c)(1) The cost-of-living allowance rate payable 

5 under this section shall be adjusted on the first day of 

6 the first applicable pay period beginning on or after— 

7 ‘‘(A) January 1, 2010; and 

8 ‘‘(B) January 1 of each calendar year in which 

9 a locality-based comparability adjustment takes ef10 fect under section 214 (2) and (3) of the Non-For11 eign Area Retirement Equity Assurance Act of 

12 2009. 

13 ‘‘(2)(A) In this paragraph, the term ‘applicable local14 ity-based comparability pay percentage’ means, with re15 spect to calendar year 2010 and each calendar year there16 after, the applicable percentage under section 214 (1), (2), 

17 or (3) of Non-Foreign Area Retirement Equity Assurance 

18 Act of 2009. 

19 ‘‘(B) Each adjusted cost-of-living allowance rate 

20 under paragraph (1) shall be computed by— 

21 ‘‘(i) subtracting 65 percent of the applicable lo22 cality-based comparability pay percentage from the 

23 cost-of-living allowance percentage rate in effect on 

24 December 31, 2009; and 


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1 ‘‘(ii) dividing the resulting percentage deter2 mined under clause (i) by the sum of— 

3 ‘‘(I) one; and 

4 ‘‘(II) the applicable locality-based com5 parability payment percentage expressed as a 

6 numeral. 

7 ‘‘(3) No allowance rate computed under paragraph 

8 (2) may be less than zero. 

9 ‘‘(4) Each allowance rate computed under paragraph 

10 (2) shall be paid as a percentage of basic pay (including 

11 any applicable locality-based comparability payment under 

12 section 5304 or similar provision of law and any applicable 

13 special rate of pay under section 5305 or similar provision 

14 of law).’’. 

15 SEC. 213. ADJUSTMENT OF SPECIAL RATES. 

16 (a) IN GENERAL.—Each special rate of pay estab17 lished under section 5305 of title 5, United States Code, 

18 and payable in an area designated as a cost-of-living allow19 ance area under section 5941(a) of that title, shall be ad20 justed, on the dates prescribed by section 214 of this sub21 title, in accordance with regulations prescribed by the Di22 rector of the Office of Personnel Management under sec23 tion 218 of this subtitle. 

24 (b) AGENCIES WITH STATUTORY AUTHORITY.— 


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1 (1) IN GENERAL.—Each special rate of pay es2 tablished under an authority described under para3 graph (2) and payable in a location designated as a 

4 cost-of-living allowance area under section 

5 5941(a)(1) of title 5, United States Code, shall be 

6 adjusted in accordance with regulations prescribed 

7 by the applicable head of the agency that are con8 sistent with the regulations issued by the Director of 

9 the Office of Personnel Management under sub10 section (a). 

11 (2) STATUTORY AUTHORITY.—The authority re12 ferred to under paragraph (1), is any statutory au13 thority that— 

14 (A) is similar to the authority exercised 

15 under section 5305 of title 5, United States 

16 Code; 

17 (B) is exercised by the head of an agency 

18 when the head of the agency determines it to be 

19 necessary in order to obtain or retain the serv20 ices of persons specified by statute; and 

21 (C) authorizes the head of the agency to 

22 increase the minimum, intermediate, or max23 imum rates of basic pay authorized under appli24 cable statutes and regulations. 


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1 (c) TEMPORARY ADJUSTMENT.—Regulations issued 

2 under subsection (a) or (b) may provide that statutory 

3 limitations on the amount of such special rates may be 

4 temporarily raised to a higher level during the transition 

5 period described in section 214 ending on the first day 

6 of the first pay period beginning on or after January 1, 

7 2012, at which time any special rate of pay in excess of 

8 the applicable limitation shall be converted to a retained 

9 rate under section 5363 of title 5, United States Code. 

10 SEC. 214. TRANSITION SCHEDULE FOR LOCALITY-BASED 

11 COMPARABILITY PAYMENTS. 

12 Notwithstanding any other provision of this subtitle 

13 or section 5304 or 5304a of title 5, United States Code, 

14 in implementing the amendments made by this subtitle, 

15 for each non-foreign area determined under section 

16 5941(b) of that title, the applicable rate for the locality17 based comparability adjustment that is used in the com18 putation required under section 5941(c) of that title shall 

19 be adjusted effective on the first day of the first pay period 

20 beginning on or after January 1— 

(1) in calendar year 2010, by using 1 21 ⁄3 of the 

22 locality pay percentage for the rest of United States 

23 locality pay area; 


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(2) in calendar year 2011, by using 2 1 ⁄3 of the 

2 otherwise applicable comparability payment approved 

3 by the President for each non-foreign area; and 

4 (3) in calendar year 2012 and each subsequent 

5 year, by using the full amount of the applicable com6 parability payment approved by the President for 

7 each non-foreign area. 

8 SEC. 215. SAVINGS PROVISION. 

9 (a) SENSE OF CONGRESS.—It is the sense of Con10 gress that— 

11 (1) the application of this subtitle to any em12 ployee should not result in a decrease in the take 

13 home pay of that employee; 

14 (2) in calendar year 2012 and each subsequent 

15 year, no employee shall receive less than the Rest of 

16 the U.S. locality pay rate; 

17 (3) concurrent with the surveys next conducted 

18 under the provisions of section 5304(d)(1)(A) of title 

19 5, United States Code, beginning after the date of 

20 the enactment of this Act, the Bureau of Labor Sta21 tistics should conduct separate surveys to determine 

22 the extent of any pay disparity (as defined by sec23 tion 5302 of that title) that may exist with respect 

24 to positions located in the State of Alaska, the State 

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1 ing American Samoa, Guam, Commonwealth of the 

2 Northern Mariana Islands, Commonwealth of Puerto 

3 Rico, and the United States Virgin Islands; 

4 (4) if the surveys under paragraph (3) indicate 

5 that the pay disparity determined for the State of 

6 Alaska, the State of Hawaii, or any 1 of the United 

7 States territories including American Samoa, Guam, 

8 Commonwealth of the Northern Mariana Islands, 

9 Commonwealth of Puerto Rico, and the United 

10 States Virgin Islands exceeds the pay disparity de11 termined for the locality which (for purposes of sec12 tion 5304 of that title) is commonly known as the 

13 ‘‘Rest of the United States’’, the President’s Pay 

14 Agent should take appropriate measures to provide 

15 that each such surveyed area be treated as a sepa16 rate pay locality for purposes of that section; and 

17 (5) the President’s Pay Agent will establish 1 

18 locality area for the entire State of Hawaii and 1 lo19 cality area for the entire State of Alaska. 

20 (b) SAVINGS PROVISIONS.— 

21 (1) IN GENERAL.—During the period described 

22 under section 214 of this subtitle, an employee paid 

23 a special rate under 5305 of title 5, United States 

24 Code, who the day before the date of enactment of 

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1 ance under section 5941 of title 5, United States 

2 Code, and who continues to be officially stationed in 

3 an allowance area, shall receive an increase in the 

4 employee’s special rate consistent with increases in 

5 the applicable special rate schedule. For employees 

6 in allowance areas, the minimum step rate for any 

7 grade of a special rate schedule shall be increased at 

8 the time of an increase in the applicable locality rate 

9 percentage for the allowance area by not less than 

10 the dollar increase in the locality-based com11 parability payment for a non-special rate employee 

12 at the same minimum step provided under section 

13 214 of this subtitle, and corresponding increases 

14 shall be provided for all step rates of the given pay 

15 range. 

16 (2) CONTINUATION OF COST OF LIVING ALLOW17 ANCE RATE.—If an employee, who the day before 

18 the date of enactment of this Act was eligible to re19 ceive a cost-of-living allowance under section 5941 of 

20 title 5, United States Code, would receive a rate of 

21 basic pay and applicable locality-based comparability 

22 payment which is in excess of the maximum rate 

23 limitation set under section 5304(g) of title 5, 

24 United States Code, for his position (but for that 

25 maximum rate limitation) due to the operation of 


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1 this subtitle, the employee shall continue to receive 

2 the cost-of-living allowance rate in effect on Decem3 ber 31, 2009 without adjustment until— 

4 (A) the employee leaves the allowance area 

5 or pay system; or 

6 (B) the employee is entitled to receive 

7 basic pay (including any applicable locality8 based comparability payment or similar supple9 ment) at a higher rate, 

10 but, when any such position becomes vacant, the pay 

11 of any subsequent appointee thereto shall be fixed in 

12 the manner provided by applicable law and regula13 tion. 

14 (3) LOCALITY-BASED COMPARABILITY PAY15 MENTS.—Any employee covered under paragraph (2) 

16 shall receive any applicable locality-based com17 parability payment extended under section 214 of 

18 this subtitle which is not in excess of the maximum 

19 rate set under section 5304(g) of title 5, United 

20 States Code, for his position including any future in21 crease to statutory pay limitations under 5318 of 

22 title 5, United States Code. Notwithstanding para23 graph (2), to the extent that an employee covered 

24 under that paragraph receives any amount of local25 ity-based comparability payment, the cost-of-living 


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1 allowance rate under that paragraph shall be re2 duced accordingly, as provided under section 

3 5941(c)(2)(B) of title 5, United States Code. 

4 SEC. 216. APPLICATION TO OTHER ELIGIBLE EMPLOYEES. 

5 (a) IN GENERAL.— 

6 (1) DEFINITION.—In this subsection, the term 

7 ‘‘covered employee’’ means— 

8 (A) any employee who— 

9 (i) on the day before the date of en10 actment of this Act— 

11 (I) was eligible to be paid a cost12 of-living allowance under 5941 of title 

13 5, United States Code; and 

14 (II) was not eligible to be paid lo15 cality-based comparability payments 

16 under 5304 or 5304a of that title; or 

17 (ii) on or after the date of enactment 

18 of this Act becomes eligible to be paid a 

19 cost-of-living allowance under 5941 of title 

20 5, United States Code; or 

21 (B) any employee who— 

22 (i) on the day before the date of en23 actment of this Act— 


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1 (I) was eligible to be paid an al2 lowance under section 1603(b) of title 

3 10, United States Code; 

4 (II) was eligible to be paid an al5 lowance under section 1005(b) of title 

6 39, United States Code; 

7 (III) was employed by the Trans8 portation Security Administration of 

9 the Department of Homeland Security 

10 and was eligible to be paid an allow11 ance based on section 5941 of title 5, 

12 United States Code; or 

13 (IV) was eligible to be paid under 

14 any other authority a cost-of-living al15 lowance that is equivalent to the cost16 of-living allowance under section 5941 

17 of title 5, United States Code; or 

18 (ii) on or after the date of enactment 

19 of this Act— 

20 (I) becomes eligible to be paid an 

21 allowance under section 1603(b) of 

22 title 10, United States Code; 

23 (II) becomes eligible to be paid 

24 an allowance under section 1005(b) of 

25 title 39, United States Code; 


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1 (III) is employed by the Trans2 portation Security Administration of 

3 the Department of Homeland Security 

4 and becomes eligible to be paid an al5 lowance based on section 5941 of title 

6 5, United States Code; or 

7 (IV) is eligible to be paid under 

8 any other authority a cost-of-living al9 lowance that is equivalent to the cost10 of-living allowance under section 5941 

11 of title 5, United States Code. 

12 (2) APPLICATION TO COVERED EMPLOYEES.— 

13 (A) IN GENERAL.—Notwithstanding any 

14 other provision of law, for purposes of this sub15 title (including the amendments made by this 

16 subtitle) any covered employee shall be treated 

17 as an employee to whom section 5941 of title 

18 5, United States Code (as amended by section 

19 212 of this subtitle), and section 214 of this 

20 subtitle apply. 

21 (B) PAY FIXED BY STATUTE.—Pay to cov22 ered employees under section 5304 or 5304a of 

23 title 5, United States Code, as a result of the 

24 application of this subtitle shall be considered 

25 to be fixed by statute. 


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1 (C) PERFORMANCE APPRAISAL SYSTEM.— 

2 With respect to a covered employee who is sub3 ject to a performance appraisal system no part 

4 of pay attributable to locality-based com5 parability payments as a result of the applica6 tion of this subtitle including section 5941 of 

7 title 5, United States Code (as amended by sec8 tion 212 of this subtitle), may be reduced on 

9 the basis of the performance of that employee. 

10 (b) POSTAL EMPLOYEES IN NON-FOREIGN AREAS.— 

11 (1) IN GENERAL.—Section 1005(b) of title 39, 

12 United States Code, is amended— 

13 (A) by inserting ‘‘(1)’’ after ‘‘(b)’’; 

14 (B) by striking ‘‘Section 5941,’’ and in15 serting ‘‘Except as provided under paragraph 

16 (2), section 5941’’; 

17 (C) by striking ‘‘For purposes of such sec18 tion,’’ and inserting ‘‘Except as provided under 

19 paragraph (2), for purposes of section 5941 of 

20 that title,’’; and 

21 (D) by adding at the end the following: 

22 ‘‘(2) On and after the date of enactment of the 

23 Non-Foreign Area Retirement Equity Assurance Act 

24 of 2009— 


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1 ‘‘(A) the provisions of that Act and section 

2 5941 of title 5 shall apply to officers and em3 ployees covered by section 1003 (b) and (c) 

4 whose duty station is in a nonforeign area; and 

5 ‘‘(B) with respect to officers and employees 

6 of the Postal Service (other than those officers 

7 and employees described under subparagraph 

8 (A)) of section 216(b)(2) of that Act shall 

9 apply.’’. 

10 (2) CONTINUATION OF COST OF LIVING ALLOW11 ANCE.— 

12 (A) IN GENERAL.—Notwithstanding any 

13 other provision of this subtitle, any employee of 

14 the Postal Service (other than an employee cov15 ered by section 1003 (b) and (c) of title 39, 

16 United States Code, whose duty station is in a 

17 nonforeign area) who is paid an allowance 

18 under section 1005(b) of that title shall be 

19 treated for all purposes as if the provisions of 

20 this subtitle (including the amendments made 

21 by this subtitle) had not been enacted, except 

22 that the cost-of-living allowance rate paid to 

23 that employee— 


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1 (i) may result in the allowance exceed2 ing 25 percent of the rate of basic pay of 

3 that employee; and 

4 (ii) shall be the greater of— 

5 (I) the cost-of-living allowance 

6 rate in effect on December 31, 2009, 

7 for the applicable area; or 

8 (II) the applicable locality-based 

9 comparability pay percentage under 

10 section 214. 

11 (B) RULE OF CONSTRUCTION.—Nothing in 

12 this subtitle shall be construed to— 

13 (i) provide for an employee described 

14 under subparagraph (A) to be a covered 

15 employee as defined under subsection (a); 

16 or 

17 (ii) authorize an employee described 

18 under subparagraph (A) to file an election 

19 under section 217 of this subtitle. 

20 SEC. 217. ELECTION OF ADDITIONAL BASIC PAY FOR ANNU21 ITY COMPUTATION BY EMPLOYEES. 

22 (a) DEFINITION.—In this section the term ‘‘covered 

23 employee’’ means any employee— 

24 (1) to whom section 214 applies; 


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1 (2) who is separated from service by reason of 

2 retirement under chapter 83 or 84 of title 5, United 

3 States Code, during the period of January 1, 2010, 

4 through December 31, 2012; and 

5 (3) who files an election with the Office of Per6 sonnel Management under subsection (b). 

7 (b) ELECTION.— 

8 (1) IN GENERAL.—An employee described 

9 under subsection (a) (1) and (2) may file an election 

10 with the Office of Personnel Management to be cov11 ered under this section. 

12 (2) DEADLINE.—An election under this sub13 section may be filed not later than December 31, 

14 2012. 

15 (c) COMPUTATION OF ANNUITY.— 

16 (1) IN GENERAL.—Except as provided under 

17 paragraph (2), for purposes of the computation of 

18 an annuity of a covered employee any cost-of-living 

19 allowance under section 5941 of title 5, United 

20 States Code, paid to that employee during the first 

21 applicable pay period beginning on or after January 

22 1, 2010, through the first applicable pay period end23 ing on or after December 31, 2012, shall be consid24 ered basic pay as defined under section 8331(3) or 

25 8401(4) of that title. 


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1 (2) LIMITATION.—The amount of the cost-of2 living allowance which may be considered basic pay 

3 under paragraph (1) may not exceed the amount of 

4 the locality-based comparability payments the em5 ployee would have received during that period for 

6 the applicable pay area if the limitation under sec7 tion 214 of this subtitle did not apply. 

8 (d) CIVIL SERVICE RETIREMENT AND DISABILITY

9 RETIREMENT FUND.— 

10 (1) EMPLOYEE CONTRIBUTIONS.—A covered 

11 employee shall pay into the Civil Service Retirement 

12 and Disability Retirement Fund— 

13 (A) an amount equal to the difference be14 tween— 

15 (i) employee contributions that would 

16 have been deducted and withheld from pay 

17 under section 8334 or 8422 of title 5, 

18 United States Code, during the period de19 scribed under subsection (c) of this section 

20 if the cost-of-living allowances described 

21 under that subsection had been treated as 

22 basic pay under section 8331(3) or 

23 8401(4) of title 5, United States Code; and 

24 (ii) employee contributions that were 

25 actually deducted and withheld from pay 


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1 under section 8334 or 8422 of title 5, 

2 United States Code, during that period; 

3 and 

4 (B) interest as prescribed under section 

5 8334(e) of title 5, United States Code, based on 

6 the amount determined under subparagraph 

7 (A). 

8 (2) AGENCY CONTRIBUTIONS.— 

9 (A) IN GENERAL.—The employing agency 

10 of a covered employee shall pay into the Civil 

11 Service Retirement and Disability Retirement 

12 Fund an amount for applicable agency con13 tributions based on payments made under para14 graph (1). 

15 (B) SOURCE.—Amounts paid under this 

16 paragraph shall be contributed from the appro17 priation or fund used to pay the employee. 

18 (3) REGULATIONS.—The Office of Personnel 

19 Management may prescribe regulations to carry out 

20 this section. 

21 SEC. 218. REGULATIONS. 

22 (a) IN GENERAL.—The Director of the Office of Per23 sonnel Management shall prescribe regulations to carry 

24 out this subtitle, including— 


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1 (1) rules for special rate employees described 

2 under section 213; 

3 (2) rules for adjusting rates of basic pay for 

4 employees in pay systems administered by the Office 

5 of Personnel Management when such employees are 

6 not entitled to locality-based comparability payments 

7 under section 5304 of title 5, United States Code, 

8 without regard to otherwise applicable statutory pay 

9 limitations during the transition period described in 

10 section 214 ending on the first day of the first pay 

11 period beginning on or after January 1, 2012; and 

12 (3) rules governing establishment and adjust13 ment of saved or retained rates for any employee 

14 whose rate of pay exceeds applicable pay limitations 

15 on the first day of the first pay period beginning on 

16 or after January 1, 2012. 

17 (b) OTHER PAY SYSTEMS.—With the concurrence of 

18 the Director of the Office of Personnel Management, the 

19 administrator of a pay system not administered by the Of20 fice of Personnel Management shall prescribe regulations 

21 to carry out this subtitle with respect to employees in such 

22 pay system, consistent with the regulations prescribed by 

23 the Office under subsection (a). With respect to employees 

24 not entitled to locality-based comparability payments 

25 under section 5304 of title 5, United States Code, regulaVerDate Nov 24 2008 04:04 Jun 24, 2009 Jkt 079200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\H2990.IH H2990

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1 tions prescribed under this subsection may provide for spe2 cial payments or adjustments for employees who were eli3 gible to receive a cost-of-living allowance under section 

4 5941 of that title on the date before the date of enactment 

5 of this Act. 

6 SEC. 219. EFFECTIVE DATES. 

7 (a) IN GENERAL.—Except as provided by subsection 

8 (b), this subtitle (including the amendments made by this 

9 subtitle) shall take effect on the date of enactment of this 

10 Act. 

11 (b) LOCALITY PAY AND SCHEDULE.—The amend12 ments made by section 212 and the provisions of section 

13 214 shall take effect on the first day of the first applicable 

14 pay period beginning on or after January 1, 2010. 

15 TITLE III—DEEPWATER OIL AND 

16 GAS RESEARCH AND DEVEL17 OPMENT FUNDING SOURCE 

18 REPEAL 

19 SEC. 301. REPEAL. 

20 Effective October 1, 2010, section 999H of the En21 ergy Policy Act of 2005 (42 U.S.C. 16378) is amended— 

22 (1) by striking subsections (a), (b), (c), and (f); 

23 (2) by redesignating subsections (d) and (e) as 

24 subsections (a) and (b), respectively; 


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1 (3) in subsection (a), as so redesignated, by 

2 striking ‘‘obligated from the Fund under subsection 

3 (a)(1)’’ and inserting ‘‘available under this section’’; 

4 and 

5 (4) in subsection (b), as so redesignated, by 

6 striking ‘‘In addition to other amounts that are 

7 made available to carry out this section, there’’ and 

8 inserting ‘‘There’’. 

Æ 


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