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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2990 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disabled Military Retiree Relief Act 
of 2009''.

SEC. 2. TABLE OF CONTENTS.

    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.
        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.

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.

    The following sections of title 37, United States Code, are amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2010'':
            (1) Section 308b(g), relating to Selected Reserve 
        reenlistment bonus.
            (2) Section 308c(i), relating to Selected Reserve 
        affiliation or enlistment bonus.
            (3) Section 308d(c), relating to special pay for enlisted 
        members assigned to certain high-priority units.
            (4) Section 308g(f)(2), relating to Ready Reserve 
        enlistment bonus for persons without prior service.
            (5) Section 308h(e), relating to Ready Reserve enlistment 
        and reenlistment bonus for persons with prior service.
            (6) Section 308i(f), relating to Selected Reserve 
        enlistment and reenlistment bonus for persons with prior 
        service.
            (7) Section 910(g), relating to income replacement payments 
        for reserve component members experiencing extended and 
        frequent mobilization for active duty service.

SEC. 102. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
              AUTHORITIES FOR HEALTH CARE PROFESSIONALS.

    (a) Title 10 Authorities.--The following sections of title 10, 
United States Code, are amended by striking ``December 31, 2009'' and 
inserting ``December 31, 2010'':
            (1) Section 2130a(a)(1), relating to nurse officer 
        candidate accession program.
            (2) Section 16302(d), relating to repayment of education 
        loans for certain health professionals who serve in the 
        Selected Reserve.
    (b) Title 37 Authorities.--The following sections of title 37, 
United States Code, are amended by striking ``December 31, 2009'' and 
inserting ``December 31, 2010'':
            (1) Section 302c-1(f), relating to accession and retention 
        bonuses for psychologists.
            (2) Section 302d(a)(1), relating to accession bonus for 
        registered nurses.
            (3) Section 302e(a)(1), relating to incentive special pay 
        for nurse anesthetists.
            (4) Section 302g(e), relating to special pay for Selected 
        Reserve health professionals in critically short wartime 
        specialties.
            (5) Section 302h(a)(1), relating to accession bonus for 
        dental officers.
            (6) Section 302j(a), relating to accession bonus for 
        pharmacy officers.
            (7) Section 302k(f), relating to accession bonus for 
        medical officers in critically short wartime specialties.
            (8) Section 302l(g), relating to accession bonus for dental 
        specialist officers in critically short wartime specialties.

SEC. 103. ONE-YEAR EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES FOR 
              NUCLEAR OFFICERS.

    The following sections of title 37, United States Code, are amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2010'':
            (1) Section 312(f), relating to special pay for nuclear-
        qualified officers extending period of active service.
            (2) Section 312b(c), relating to nuclear career accession 
        bonus.
            (3) Section 312c(d), relating to nuclear career annual 
        incentive bonus.

SEC. 104. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO TITLE 37 
              CONSOLIDATED SPECIAL PAY, INCENTIVE PAY, AND BONUS 
              AUTHORITIES.

    The following sections of title 37, United States Code, are amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2010'':
            (1) Section 331(h), relating to general bonus authority for 
        enlisted members.
            (2) Section 332(g), relating to general bonus authority for 
        officers.
            (3) Section 333(i), relating to special bonus and incentive 
        pay authorities for nuclear officers.
            (4) Section 334(i), relating to special aviation incentive 
        pay and bonus authorities for officers.
            (5) Section 335(k), relating to special bonus and incentive 
        pay authorities for officers in health professions.
            (6) Section 351(i), relating to hazardous duty pay.
            (7) Section 352(g), relating to assignment pay or special 
        duty pay.
            (8) Section 353(j), relating to skill incentive pay or 
        proficiency bonus.
            (9) Section 355(i), relating to retention incentives for 
        members qualified in critical military skills or assigned to 
        high priority units.

SEC. 105. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF 
              OTHER TITLE 37 BONUSES AND SPECIAL PAY.

    The following sections of chapter 5 of title 37, United States 
Code, are amended by striking ``December 31, 2009'' and inserting 
``December 31, 2010'':
            (1) Section 301b(a), relating to aviation officer retention 
        bonus.
            (2) Section 307a(g), relating to assignment incentive pay.
            (3) Section 308(g), relating to reenlistment bonus for 
        active members.
            (4) Section 309(e), relating to enlistment bonus.
            (5) Section 324(g), relating to accession bonus for new 
        officers in critical skills.
            (6) Section 326(g), relating to incentive bonus for 
        conversion to military occupational specialty to ease personnel 
        shortage.
            (7) Section 327(h), relating to incentive bonus for 
        transfer between Armed Forces.
            (8) Section 330(f), relating to accession bonus for officer 
        candidates.

SEC. 106. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF 
              REFERRAL BONUSES.

    The following sections of title 10, United States Code, are amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2010'':
            (1) Section 1030(i), relating to health professions 
        referral bonus.
            (2) Section 3252(h), relating to Army referral bonus.

SEC. 107. TECHNICAL CORRECTIONS AND CONFORMING AMENDMENTS TO RECONCILE 
              CONFLICTING AMENDMENTS REGARDING CONTINUED PAYMENT OF 
              BONUSES AND SIMILAR BENEFITS FOR CERTAIN MEMBERS.

    (a) Technical Corrections To Reconcile Conflicting Amendments.--
Section 303a(e) of title 37, United States Code, is amended--
            (1) in paragraph (1)(A), by striking ``paragraph (2)'' and 
        inserting ``paragraphs (2) and (3)'';
            (2) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively;
            (3) in paragraph (5), as so redesignated, by striking 
        ``paragraph (3)(B)'' and inserting ``paragraph (4)(B)'';
            (4) by redesignating paragraph (2), as added by section 
        651(b) of the Duncan Hunter National Defense Authorization Act 
        for Fiscal Year 2009 (Public Law 110-417; 122 Stat. 4495), as 
        paragraph (3); and
            (5) by redesignating the second subparagraph (B) of 
        paragraph (1), originally added as paragraph (2) by section 
        2(a)(3) of the Hubbard Act (Public Law 110-317; 122 Stat. 3526) 
        and erroneously designated as subparagraph (B) by section 
        651(a)(3) of the Duncan Hunter National Defense Authorization 
        Act for Fiscal Year 2009 (Public Law 110-417; 122 Stat. 4495), 
        as paragraph (2).
    (b) Inclusion of Hubbard Act Amendment in Consolidated Special Pay 
and Bonus Authorities.--Section 373(b) of such title is amended--
            (1) in paragraph (2), by striking the paragraph heading and 
        inserting ``Special rule for deceased and disabled members.--
        ''; and
            (2) by adding at the end the following new paragraph:
            ``(3) Special rule for members who receive sole 
        survivorship discharge.--(A) If a member of the uniformed 
        services receives a sole survivorship discharge, the Secretary 
        concerned--
                    ``(i) shall not require repayment by the member of 
                the unearned portion of any bonus, incentive pay, or 
                similar benefit previously paid to the member; and
                    ``(ii) may grant an exception to the requirement to 
                terminate the payment of any unpaid amounts of a bonus, 
                incentive pay, or similar benefit if the Secretary 
                concerned determines that termination of the payment of 
                the unpaid amounts would be contrary to a personnel 
                policy or management objective, would be against equity 
                and good conscience, or would be contrary to the best 
                interests of the United States.
            ``(B) In this paragraph, the term `sole survivorship 
        discharge' means the separation of a member from the Armed 
        Forces, at the request of the member, pursuant to the 
        Department of Defense policy permitting the early separation of 
        a member who is the only surviving child in a family in which--
                    ``(i) the father or mother or one or more 
                siblings--
                            ``(I) served in the Armed Forces; and
                            ``(II) was killed, died as a result of 
                        wounds, accident, or disease, is in a captured 
                        or missing in action status, or is permanently 
                        100 percent disabled or hospitalized on a 
                        continuing basis (and is not employed gainfully 
                        because of the disability or hospitalization); 
                        and
                    ``(ii) the death, status, or disability did not 
                result from the intentional misconduct or willful 
                neglect of the parent or sibling and was not incurred 
                during a period of unauthorized absence.''.

                    Subtitle B--Retired Pay Benefits

SEC. 111. RECOMPUTATION OF RETIRED PAY AND ADJUSTMENT OF RETIRED GRADE 
              OF RESERVE RETIREES TO REFLECT SERVICE AFTER RETIREMENT.

    (a) Recomputation of Retired Pay.--Section 12739 of title 10, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(e)(1) If a member of the Retired Reserve is recalled to an 
active status in the Selected Reserve of the Ready Reserve under 
section 10145(d) of this title and completes not less than two years of 
service in such active status, the member is entitled to the 
recomputation under this section of the retired pay of the member.
    ``(2) The Secretary concerned may reduce the two-year service 
requirement specified in paragraph (1) in the case of a member who--
            ``(A) is recalled to serve in a position of adjutant 
        general required under section 314 of title 32 or in a position 
        of assistant adjutant general subordinate to such a position of 
        adjutant general;
            ``(B) completes at least six months of service in such 
        position; and
            ``(C) fails to complete the minimum two years of service 
        solely because the appointment of the member to such position 
        is terminated or vacated as described in section 324(b) of 
        title 32.''.
    (b) Adjustment of Retired Grade.--Section 12771 of such title is 
amended--
            (1) by striking ``Unless'' and inserting ``(a) Grade on 
        Transfer.--Unless''; and
            (2) by adding at the end the following new subsection:
    ``(b) Effect of Subsequent Recall to Active Status.--(1) If a 
member of the Retired Reserve who is a commissioned officer is recalled 
to an active status in the Selected Reserve of the Ready Reserve under 
section 10145(d) of this title and completes not less than two years of 
service in such active status, the member is entitled to an adjustment 
in the retired grade of the member in the manner provided in section 
1370(d) of this title.
    ``(2) The Secretary concerned may reduce the two-year service 
requirement specified in paragraph (1) in the case of a member who--
            ``(A) is recalled to serve in a position of adjutant 
        general required under section 314 of title 32 or in a position 
        of assistant adjutant general subordinate to such a position of 
        adjutant general;
            ``(B) completes at least six months of service in such 
        position; and
            ``(C) fails to complete the minimum two years of service 
        solely because the appointment of the member to such position 
        is terminated or vacated as described in section 324(b) of 
        title 32.''.
    (c) Retroactive Applicability.--The amendments made by this section 
shall take effect as of January 1, 2008.

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.

    (a) Election Authority; Requirements.--Subsection (a) of section 
12741 of title 10, United States Code, is amended to read as follows:
    ``(a) Authority To Elect To Receive Reserve Retired Pay.--(1) 
Notwithstanding the requirement in paragraph (4) of section 12731(a) of 
this title that a person may not receive retired pay under this chapter 
when the person is entitled, under any other provision of law, to 
retired pay or retainer pay, a person may elect to receive retired pay 
under this chapter, instead of receiving retired or retainer pay under 
chapter 65, 367, 571, or 867 of this title, if the person--
            ``(A) satisfies the requirements specified in paragraphs 
        (1) and (2) of such section for entitlement to retired pay 
        under this chapter;
            ``(B) served in an active status in the Selected Reserve of 
        the Ready Reserve after becoming eligible for retirement under 
        chapter 65, 367, 571, or 867 of this title (without regard to 
        whether the person actually retired or received retired or 
        retainer pay under one of those chapters); and
            ``(C) completed not less than two years of satisfactory 
        service (as determined by the Secretary concerned) in such 
        active status (excluding any period of active service).
    ``(2) The Secretary concerned may reduce the minimum two-year 
service requirement specified in paragraph (1)(C) in the case of a 
person who--
            ``(A) completed at least six months of service in a 
        position of adjutant general required under section 314 of 
        title 32 or in a position of assistant adjutant general 
        subordinate to such a position of adjutant general; and
            ``(B) failed to complete the minimum years of service 
        solely because the appointment of the person to such position 
        was terminated or vacated as described in section 324(b) of 
        title 32.''.
    (b) Actions To Effectuate Election.--Subsection (b) of such section 
is amended by striking paragraph (1) and inserting the following new 
paragraph:
            ``(1) terminate the eligibility of the person to retire 
        under chapter 65, 367, 571, or 867 of this title, if the person 
        is not already retired under one of those chapters, and 
        terminate entitlement of the person to retired or retainer pay 
        under one of those chapters, if the person was already 
        receiving retired or retainer pay under one of those chapters; 
        and''.
    (c) Conforming Amendment To Reflect New Variable Age Requirement 
for Retirement.--Subsection (d) of such section is amended--
            (1) in paragraph (1), by striking ``attains 60 years of 
        age'' and inserting ``attains the eligibility age applicable to 
        the person under section 12731(f) of this title''; and
            (2) in paragraph (2)(A), by striking ``attains 60 years of 
        age'' and inserting ``attains the eligibility age applicable to 
        the person under such section''.
    (d) Clerical Amendments.--
            (1) Section heading.--The heading for section 12741 of such 
        title is amended to read as follows:
``Sec. 12741. Retirement for service in an active status performed in 
              the Selected Reserve of the Ready Reserve after 
              eligibility for regular retirement''.
            (2) Table of sections.--The table of sections at the 
        beginning of chapter 1223 of such title is amended by striking 
        the item relating to section 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.''.
    (e) Retroactive Applicability.--The amendments made by this section 
shall take effect as of January 1, 2008.

 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.

    (a) Phased Expansion Concurrent Receipt.--Subsection (a) of section 
1414 of title 10, United States Code, is amended to read as follows:
    ``(a) Payment of Both Retired Pay and Disability Compensation.--
            ``(1) Payment of both required.--
                    ``(A) In general.--Subject to subsection (b), a 
                member or former member of the uniformed services who 
                is entitled for any month to retired pay and who is 
                also entitled for that month to veterans' disability 
                compensation for a qualifying service-connected 
                disability (in this section referred to as a `qualified 
                retiree') is entitled to be paid both for that month 
                without regard to sections 5304 and 5305 of title 38.
                    ``(B) Applicability of full concurrent receipt 
                phase-in requirement.--During the period beginning on 
                January 1, 2004, and ending on December 31, 2013, 
                payment of retired pay to a qualified retiree is 
                subject to subsection (c).
                    ``(C) Phase-in exception for 100 percent disabled 
                retirees.--The payment of retired pay is subject to 
                subsection (c) only during the period beginning on 
                January 1, 2004, and ending on December 31, 2004, in 
                the case of the following qualified retirees:
                            ``(i) A qualified retiree receiving 
                        veterans' disability compensation for a 
                        disability rated as 100 percent.
                            ``(ii) A qualified retiree receiving 
                        veterans' disability compensation at the rate 
                        payable for a 100 percent disability by reason 
                        of a determination of individual 
                        unemployability.
                    ``(D) Temporary phase-in exception for certain 
                chapter 61 disability retirees; termination.--Subject 
                to subsection (b), during the period beginning on 
                January 1, 2010, and ending on September 30, 2010, 
                subsection (c) shall not apply to a qualified retiree 
                described in subparagraph (B) or (C) of paragraph (2).
            ``(2) Qualifying service-connected disability defined.--In 
        this section, the term `qualifying service-connected 
        disability' means the following:
                    ``(A) In the case of a member or former member 
                receiving retired pay under any provision of law other 
                than chapter 61 of this title, or under chapter 61 with 
                20 years or more of service otherwise creditable under 
                section 1405 or computed under section 12732 of this 
                title, a service-connected disability or combination of 
                service-connected disabilities that is rated as not 
                less than 50 percent disabling by the Secretary of 
                Veterans Affairs.
                    ``(B) In the case of a member or former member 
                receiving retired pay under chapter 61 of this title 
                with less than 20 years of service otherwise creditable 
                under section 1405 or computed under section 12732 of 
                this title, a service-connected disability or 
                combination of service-connected disabilities that is 
                rated by the Secretary of Veterans Affairs at the 
                disabling level specified in one of the following 
                clauses (and, subject to paragraph (3), is effective on 
                or after the date specified in the applicable clause):
                            ``(i) January 1, 2010, rated 100 percent, 
                        or a rate payable at 100 percent by reason of 
                        individual unemployability or rated 90 percent.
                            ``(ii) January 1, 2011, rated 80 percent or 
                        70 percent.
                            ``(iii) January 1, 2012, rated 60 percent 
                        or 50 percent.
                    ``(C) In the case of a member or former member 
                receiving retired pay under chapter 61 regardless of 
                years of service, a service-connected disability or 
                combination of service-connected disabilities that is 
                rated by the Secretary of Veterans Affairs at the 
                disabling level specified in one of the following 
                clauses (and, subject to paragraph (3), is effective on 
                or after the date specified in the applicable clause):
                            ``(i) January 1, 2013, rated 40 percent or 
                        30 percent.
                            ``(ii) January 1, 2014, any rating.
            ``(3) Limited duration.--Notwithstanding the effective date 
        specified in each clause of subparagraphs (B) and (C) of 
        paragraph (2), the clause shall apply only if the termination 
        date specified in subparagraph (D) of paragraph (1) occurs 
        during or after the calendar year specified in the clause, 
        except that, eligibility may not extend beyond the termination 
        date.''.
    (b) Conforming Amendment to Special Rules for Chapter 61 Disability 
Retirees.--Subsection (b) of such section is amended to read as 
follows:
    ``(b) Special Rules for Chapter 61 Disability Retirees When 
Eligibility Has Been Established for Such Retirees.--
            ``(1) General reduction rule.--The retired pay of a member 
        retired under chapter 61 of this title is subject to reduction 
        under sections 5304 and 5305 of title 38, but only to the 
        extent that the amount of the members retired pay under chapter 
        61 of this title exceeds the amount of retired pay to which the 
        member would have been entitled under any other provision of 
        law based upon the member's service in the uniformed services 
        if the member had not been retired under chapter 61 of this 
        title.
            ``(2) Retirees with fewer than 20 years of service.--
                    ``(A) Before termination date.--If a member with a 
                qualifying service-connected disability (as defined in 
                subsection (a)(2)) is retired under chapter 61 of this 
                title with fewer than 20 years of creditable service 
                otherwise creditable under section 1405 or computed 
                under section 12732 of this title, and the termination 
                date specified in subsection (a)(1)(D) has not 
                occurred, the retired pay of the member is subject to 
                reduction under sections 5304 and 5305 of title 38, but 
                only to the extent that the amount of the member's 
                retired pay under chapter 61 of this title exceeds the 
                amount equal to 2\1/2\ percent of the member's years of 
                creditable service multiplied by the member's retired 
                pay base under section 1406(b)(1) or 1407 of this 
                title, whichever is applicable to the member.
                    ``(B) After termination date.--Subsection (a) does 
                not apply to a member retired under chapter 61 of this 
                title with less than 20 years of service otherwise 
                creditable under section 1405 of this title, or with 
                less than 20 years of service computed under section 
                12732 of this title, at the time of the retirement of 
                the member if the termination date in paragraph (1)(D) 
                of such subsection has occurred.''.
    (c) Conforming Amendment to Full Concurrent Receipt Phase-In.--
Subsection (c) of such section is amended by striking ``the second 
sentence of''.
    (d) Clerical Amendments.--
            (1) Section heading.--The heading of such section is 
        amended to read as follows:
``Sec. 1414. Concurrent receipt of retired pay and veterans' disability 
              compensation''.
            (2) Table of sections.--The table of sections at the 
        beginning of chapter 71 of such title is amended by striking 
        the item related to section 1414 and inserting the following 
        new item:

``1414. Concurrent receipt of retired pay and veterans' disability 
                            compensation.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2010.

                  TITLE II--FEDERAL EMPLOYEE BENEFITS

                     Subtitle A--General Provisions

SEC. 201. CREDIT FOR UNUSED SICK LEAVE.

    (a) In General.--Section 8415 of title 5, United States Code, is 
amended--
            (1) by redesignating the second subsection (k) and 
        subsection (l) as subsections (l) and (m), respectively; and
            (2) in subsection (l) (as so redesignated by paragraph 
        (1))--
                    (A) by striking ``(l) In computing'' and inserting 
                ``(l)(1) In computing''; and
                    (B) by adding at the end the following:
    ``(2) Except as provided in paragraph (1), in computing an annuity 
under this subchapter, the total service of an employee who retires on 
an immediate annuity or who dies leaving a survivor or survivors 
entitled to annuity includes the days of unused sick leave to his 
credit under a formal leave system and for which days the employee has 
not received payment, except that these days will not be counted in 
determining average pay or annuity eligibility under this subchapter. 
For purposes of this subsection, in the case of any such employee who 
is excepted from subchapter I of chapter 63 under section 6301(2)(x) 
through (xiii), the days of unused sick leave to his credit include any 
unused sick leave standing to his credit when he was excepted from such 
subchapter.''.
    (b) Exception From Deposit Requirement.--Section 8422(d)(2) of 
title 5, United States Code, is amended by striking ``section 8415(k)'' 
and inserting ``paragraph (1) or (2) of section 8415(l)''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to annuities computed based on separations occurring 
on or after the date of enactment of this Act.

SEC. 202. LIMITED EXPANSION OF THE CLASS OF INDIVIDUALS ELIGIBLE TO 
              RECEIVE AN ACTUARIALLY REDUCED ANNUITY UNDER THE CIVIL 
              SERVICE RETIREMENT SYSTEM.

    (a) In General.--Section 8334(d)(2)(A)(i) of title 5, United States 
Code, is amended by striking ``October 1, 1990'' each place it appears 
and inserting ``March 1, 1991''.
    (b) Applicability.--The amendment made by subsection (a) shall be 
effective with respect to any annuity, entitlement to which is based on 
a separation from service occurring on or after the date of enactment 
of this Act.

SEC. 203. COMPUTATION OF CERTAIN ANNUITIES BASED ON PART-TIME SERVICE.

    (a) In General.--Section 8339(p) of title 5, United States Code, is 
amended by adding at the end the following:
    ``(3) In the administration of paragraph (1)--
            ``(A) subparagraph (A) of such paragraph shall apply with 
        respect to service performed before, on, or after April 7, 
        1986; and
            ``(B) subparagraph (B) of such paragraph--
                    ``(i) shall apply with respect to that portion of 
                any annuity which is attributable to service performed 
                on or after April 7, 1986; and
                    ``(ii) shall not apply with respect to that portion 
                of any annuity which is attributable to service 
                performed before April 7, 1986.''.
    (b) Applicability.--The amendment made by subsection (a) shall be 
effective with respect to any annuity, entitlement to which is based on 
a separation from service occurring on or after the date of enactment 
of this Act.

SEC. 204. AUTHORITY TO DEPOSIT REFUNDS UNDER FERS.

    (a) Deposit Authority.--Section 8422 of title 5, United States 
Code, is amended by adding at the end the following:
    ``(i)(1) Each employee or Member who has received a refund of 
retirement deductions under this or any other retirement system 
established for employees of the Government covering service for which 
such employee or Member may be allowed credit under this chapter may 
deposit the amount received, with interest. Credit may not be allowed 
for the service covered by the refund until the deposit is made.
    ``(2) Interest under this subsection shall be computed in 
accordance with paragraphs (2) and (3) of section 8334(e) and 
regulations prescribed by the Office. The option under the third 
sentence of section 8334(e)(2) to make a deposit in one or more 
installments shall apply to deposits under this subsection.
    ``(3) For the purpose of survivor annuities, deposits authorized by 
this subsection may also be made by a survivor of an employee or 
Member.''.
    (b) Technical and Conforming Amendments.--
            (1) Definitional amendment.--Section 8401(19)(C) of title 
        5, United States Code, is amended by striking ``8411(f);'' and 
        inserting ``8411(f) or 8422(i);''.
            (2) Crediting of deposits.--Section 8422(c) of title 5, 
        United States Code, is amended by adding at the end the 
        following: ``Deposits made by an employee, Member, or survivor 
        also shall be credited to the Fund.''.
            (3) Section heading.--(A) The heading for section 8422 of 
        title 5, United States Code, is amended to read as follows:
``Sec. 8422. Deductions from pay; contributions for other service; 
              deposits''.
            (B) The analysis for chapter 84 of title 5, United States 
        Code, is amended by striking the item relating to section 8422 
        and inserting the following:

``8422. Deductions from pay; contributions for other service; 
                            deposits.''.
            (4) Restoration of annuity rights.--The last sentence of 
        section 8424(a) of title 5, United States Code, is amended by 
        striking ``based.'' and inserting ``based, until the employee 
        or Member is reemployed in the service subject to this 
        chapter.''.

SEC. 205. RETIREMENT CREDIT FOR SERVICE OF CERTAIN EMPLOYEES 
              TRANSFERRED FROM DISTRICT OF COLUMBIA SERVICE TO FEDERAL 
              SERVICE.

    (a) Retirement Credit.--
            (1) In general.--Any individual who is treated as an 
        employee of the Federal Government for purposes of chapter 83 
        or chapter 84 of title 5, United States Code, on or after the 
        date of enactment of this Act who performed qualifying District 
        of Columbia service shall be entitled to have such service 
        included in calculating the individual's creditable service 
        under sections 8332 or 8411 of title 5, United States Code, but 
        only for purposes of the following provisions of such title:
                    (A) Sections 8333 and 8410 (relating to eligibility 
                for annuity).
                    (B) Sections 8336 (other than subsections (d), (h), 
                and (p) thereof) and 8412 (relating to immediate 
                retirement).
                    (C) Sections 8338 and 8413 (relating to deferred 
                retirement).
                    (D) Sections 8336(d), 8336(h), 8336(p), and 8414 
                (relating to early retirement).
                    (E) Section 8341 and subchapter IV of chapter 84 
                (relating to survivor annuities).
                    (F) Section 8337 and subchapter V of chapter 84 
                (relating to disability benefits).
            (2) Treatment of detention officer service as law 
        enforcement officer service.--Any portion of an individual's 
        qualifying District of Columbia service which consisted of 
        service as a detention officer under section 2604(2) of the 
        District of Columbia Government Comprehensive Merit Personnel 
        Act of 1978 (sec. 1-626.04(2), D.C. Official Code) shall be 
        treated as service as a law enforcement officer under sections 
        8331(20) or 8401(17) of title 5, United States Code, for 
        purposes of applying paragraph (1) with respect to the 
        individual.
            (3) Service not included in computing amount of any 
        annuity.--Qualifying District of Columbia service shall not be 
        taken into account for purposes of computing the amount of any 
        benefit payable out of the Civil Service Retirement and 
        Disability Fund.
    (b) Qualifying District of Columbia Service Defined.--In this 
section, ``qualifying District of Columbia service'' means any of the 
following:
            (1) Service performed by an individual as a nonjudicial 
        employee of the District of Columbia courts--
                    (A) which was performed prior to the effective date 
                of the amendments made by section 11246(b) of the 
                Balanced Budget Act of 1997; and
                    (B) for which the individual did not ever receive 
                credit under the provisions of subchapter III of 
                chapter 83 or chapter 84 of title 5, United States Code 
                (other than by virtue of section 8331(1)(iv) of such 
                title).
            (2) Service performed by an individual as an employee of an 
        entity of the District of Columbia government whose functions 
        were transferred to the Pretrial Services, Parole, Adult 
        Supervision, and Offender Supervision Trustee under section 
        11232 of the Balanced Budget Act of 1997--
                    (A) which was performed prior to the effective date 
                of the individual's coverage as an employee of the 
                Federal Government under section 11232(f) of such Act; 
                and
                    (B) for which the individual did not ever receive 
                credit under the provisions of subchapter III of 
                chapter 83 or chapter 84 of title 5, United States Code 
                (other than by virtue of section 8331(1)(iv) of such 
                title).
            (3) Service performed by an individual as an employee of 
        the District of Columbia Public Defender Service--
                    (A) which was performed prior to the effective date 
                of the amendments made by section 7(e) of the District 
                of Columbia Courts and Justice Technical Corrections 
                Act of 1998; and
                    (B) for which the individual did not ever receive 
                credit under the provisions of subchapter III of 
                chapter 83 or chapter 84 of title 5, United States Code 
                (other than by virtue of section 8331(1)(iv) of such 
                title).
            (4) In the case of an individual who was an employee of the 
        District of Columbia Department of Corrections who was 
        separated from service as a result of the closing of the Lorton 
        Correctional Complex and who was appointed to a position with 
        the Bureau of Prisons, the District of Columbia courts, the 
        Pretrial Services, Parole, Adult Supervision, and Offender 
        Supervision Trustee, the United States Parole Commission, or 
        the District of Columbia Public Defender Service, service 
        performed by the individual as an employee of the District of 
        Columbia Department of Corrections--
                    (A) which was performed prior to the effective date 
                of the individual's coverage as an employee of the 
                Federal Government; and
                    (B) for which the individual did not ever receive 
                credit under the provisions of subchapter III of 
                chapter 83 or chapter 84 of title 5, United States Code 
                (other than by virtue of section 8331(1)(iv) of such 
                title).
    (c) Certification of Service.--The Office of Personnel Management 
shall accept the certification of the appropriate personnel official of 
the government of the District of Columbia or other independent 
employing entity concerning whether an individual performed qualifying 
District of Columbia service and the length of the period of such 
service the individual performed.

        Subtitle B--Non-Foreign Area Retirement Equity Assurance

SEC. 211. SHORT TITLE.

    This subtitle may be cited as the ``Non-Foreign Area Retirement 
Equity Assurance Act of 2009'' or the ``Non-Foreign AREA Act of 2009''.

SEC. 212. EXTENSION OF LOCALITY PAY.

    (a) Locality-based Comparability Payments.--Section 5304 of title 
5, United States Code, is amended--
            (1) in subsection (f)(1), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) each General Schedule position in the United 
                States, as defined under section 5921(4), and its 
                territories and possessions, including the Commonwealth 
                of Puerto Rico and the Commonwealth of the Northern 
                Mariana Islands, shall be included within a pay 
                locality;'';
            (2) in subsection (g)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A), by striking 
                        ``and'' after the semicolon;
                            (ii) in subparagraph (B) by striking the 
                        period and inserting ``; and''; and
                            (iii) by adding after subparagraph (B) the 
                        following:
                    ``(C) positions under subsection (h)(1)(C) not 
                covered by appraisal systems certified under section 
                5382; and''; and
                    (B) by adding at the end the following:
            ``(3) The applicable maximum under this subsection shall be 
        level II of the Executive Schedule for positions under 
        subsection (h)(1)(C) covered by appraisal systems certified 
        under section 5307(d).''; and
            (3) in subsection (h)(1)--
                    (A) in subparagraph (B) by striking ``and'' after 
                the semicolon;
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D);
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) a Senior Executive Service position under 
                section 3132 or 3151 or a senior level position under 
                section 5376 stationed within the United States, but 
                outside the 48 contiguous States and the District of 
                Columbia in which the incumbent was an individual who 
                on the day before the date of enactment of the Non-
                Foreign Area Retirement Equity Assurance Act of 2009 
                was eligible to receive a cost-of-living allowance 
                under section 5941; and'';
                    (D) in clause (iv) in the matter following 
                subparagraph (D), by inserting ``, except for members 
                covered by subparagraph (C)'' before the semicolon; and
                    (E) in clause (v) in the matter following 
                subparagraph (D), by inserting ``, except for members 
                covered by subparagraph (C)'' before the semicolon.
    (b) Allowances Based on Living Costs and Conditions of 
Environment.--Section 5941 of title 5, United States Code, is amended--
            (1) in subsection (a), by adding after the last sentence 
        ``Notwithstanding any preceding provision of this subsection, 
        the cost-of-living allowance rate based on paragraph (1) shall 
        be the cost-of-living allowance rate in effect on the date of 
        enactment of the Non-Foreign Area Retirement Equity Assurance 
        Act of 2009, except as adjusted under subsection (c).'';
            (2) by redesignating subsection (b) as subsection (d); and
            (3) by inserting after subsection (a) the following:
    ``(b) This section shall apply only to areas that are designated as 
cost-of-living allowance areas as in effect on December 31, 2009.
    ``(c)(1) The cost-of-living allowance rate payable under this 
section shall be adjusted on the first day of the first applicable pay 
period beginning on or after--
            ``(A) January 1, 2010; and
            ``(B) January 1 of each calendar year in which a locality-
        based comparability adjustment takes effect under section 214 
        (2) and (3) of the Non-Foreign Area Retirement Equity Assurance 
        Act of 2009.
    ``(2)(A) In this paragraph, the term `applicable locality-based 
comparability pay percentage' means, with respect to calendar year 2010 
and each calendar year thereafter, the applicable percentage under 
section 214 (1), (2), or (3) of Non-Foreign Area Retirement Equity 
Assurance Act of 2009.
    ``(B) Each adjusted cost-of-living allowance rate under paragraph 
(1) shall be computed by--
            ``(i) subtracting 65 percent of the applicable locality-
        based comparability pay percentage from the cost-of-living 
        allowance percentage rate in effect on December 31, 2009; and
            ``(ii) dividing the resulting percentage determined under 
        clause (i) by the sum of--
                    ``(I) one; and
                    ``(II) the applicable locality-based comparability 
                payment percentage expressed as a numeral.
    ``(3) No allowance rate computed under paragraph (2) may be less 
than zero.
    ``(4) Each allowance rate computed under paragraph (2) shall be 
paid as a percentage of basic pay (including any applicable locality-
based comparability payment under section 5304 or similar provision of 
law and any applicable special rate of pay under section 5305 or 
similar provision of law).''.

SEC. 213. ADJUSTMENT OF SPECIAL RATES.

    (a) In General.--Each special rate of pay established under section 
5305 of title 5, United States Code, and payable in an area designated 
as a cost-of-living allowance area under section 5941(a) of that title, 
shall be adjusted, on the dates prescribed by section 214 of this 
subtitle, in accordance with regulations prescribed by the Director of 
the Office of Personnel Management under section 218 of this subtitle.
    (b) Agencies With Statutory Authority.--
            (1) In general.--Each special rate of pay established under 
        an authority described under paragraph (2) and payable in a 
        location designated as a cost-of-living allowance area under 
        section 5941(a)(1) of title 5, United States Code, shall be 
        adjusted in accordance with regulations prescribed by the 
        applicable head of the agency that are consistent with the 
        regulations issued by the Director of the Office of Personnel 
        Management under subsection (a).
            (2) Statutory authority.--The authority referred to under 
        paragraph (1), is any statutory authority that--
                    (A) is similar to the authority exercised under 
                section 5305 of title 5, United States Code;
                    (B) is exercised by the head of an agency when the 
                head of the agency determines it to be necessary in 
                order to obtain or retain the services of persons 
                specified by statute; and
                    (C) authorizes the head of the agency to increase 
                the minimum, intermediate, or maximum rates of basic 
                pay authorized under applicable statutes and 
                regulations.
    (c) Temporary Adjustment.--Regulations issued under subsection (a) 
or (b) may provide that statutory limitations on the amount of such 
special rates may be temporarily raised to a higher level during the 
transition period described in section 214 ending on the first day of 
the first pay period beginning on or after January 1, 2012, at which 
time any special rate of pay in excess of the applicable limitation 
shall be converted to a retained rate under section 5363 of title 5, 
United States Code.

SEC. 214. TRANSITION SCHEDULE FOR LOCALITY-BASED COMPARABILITY 
              PAYMENTS.

    Notwithstanding any other provision of this subtitle or section 
5304 or 5304a of title 5, United States Code, in implementing the 
amendments made by this subtitle, for each non-foreign area determined 
under section 5941(b) of that title, the applicable rate for the 
locality-based comparability adjustment that is used in the computation 
required under section 5941(c) of that title shall be adjusted 
effective on the first day of the first pay period beginning on or 
after January 1--
            (1) in calendar year 2010, by using \1/3\ of the locality 
        pay percentage for the rest of United States locality pay area;
            (2) in calendar year 2011, by using \2/3\ of the otherwise 
        applicable comparability payment approved by the President for 
        each non-foreign area; and
            (3) in calendar year 2012 and each subsequent year, by 
        using the full amount of the applicable comparability payment 
        approved by the President for each non-foreign area.

SEC. 215. SAVINGS PROVISION.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the application of this subtitle to any employee should 
        not result in a decrease in the take home pay of that employee;
            (2) in calendar year 2012 and each subsequent year, no 
        employee shall receive less than the Rest of the U.S. locality 
        pay rate;
            (3) concurrent with the surveys next conducted under the 
        provisions of section 5304(d)(1)(A) of title 5, United States 
        Code, beginning after the date of the enactment of this Act, 
        the Bureau of Labor Statistics should conduct separate surveys 
        to determine the extent of any pay disparity (as defined by 
        section 5302 of that title) that may exist with respect to 
        positions located in the State of Alaska, the State of Hawaii, 
        and the United States territories, including American Samoa, 
        Guam, Commonwealth of the Northern Mariana Islands, 
        Commonwealth of Puerto Rico, and the United States Virgin 
        Islands;
            (4) if the surveys under paragraph (3) indicate that the 
        pay disparity determined for the State of Alaska, the State of 
        Hawaii, or any 1 of the United States territories including 
        American Samoa, Guam, Commonwealth of the Northern Mariana 
        Islands, Commonwealth of Puerto Rico, and the United States 
        Virgin Islands exceeds the pay disparity determined for the 
        locality which (for purposes of section 5304 of that title) is 
        commonly known as the ``Rest of the United States'', the 
        President's Pay Agent should take appropriate measures to 
        provide that each such surveyed area be treated as a separate 
        pay locality for purposes of that section; and
            (5) the President's Pay Agent will establish 1 locality 
        area for the entire State of Hawaii and 1 locality area for the 
        entire State of Alaska.
    (b) Savings Provisions.--
            (1) In general.--During the period described under section 
        214 of this subtitle, an employee paid a special rate under 
        5305 of title 5, United States Code, who the day before the 
        date of enactment of this Act was eligible to receive a cost-
        of-living allowance under section 5941 of title 5, United 
        States Code, and who continues to be officially stationed in an 
        allowance area, shall receive an increase in the employee's 
        special rate consistent with increases in the applicable 
        special rate schedule. For employees in allowance areas, the 
        minimum step rate for any grade of a special rate schedule 
        shall be increased at the time of an increase in the applicable 
        locality rate percentage for the allowance area by not less 
        than the dollar increase in the locality-based comparability 
        payment for a non-special rate employee at the same minimum 
        step provided under section 214 of this subtitle, and 
        corresponding increases shall be provided for all step rates of 
        the given pay range.
            (2) Continuation of cost of living allowance rate.--If an 
        employee, who the day before the date of enactment of this Act 
        was eligible to receive a cost-of-living allowance under 
        section 5941 of title 5, United States Code, would receive a 
        rate of basic pay and applicable locality-based comparability 
        payment which is in excess of the maximum rate limitation set 
        under section 5304(g) of title 5, United States Code, for his 
        position (but for that maximum rate limitation) due to the 
        operation of this subtitle, the employee shall continue to 
        receive the cost-of-living allowance rate in effect on December 
        31, 2009 without adjustment until--
                    (A) the employee leaves the allowance area or pay 
                system; or
                    (B) the employee is entitled to receive basic pay 
                (including any applicable locality-based comparability 
                payment or similar supplement) at a higher rate,
        but, when any such position becomes vacant, the pay of any 
        subsequent appointee thereto shall be fixed in the manner 
        provided by applicable law and regulation.
            (3) Locality-based comparability payments.--Any employee 
        covered under paragraph (2) shall receive any applicable 
        locality-based comparability payment extended under section 214 
        of this subtitle which is not in excess of the maximum rate set 
        under section 5304(g) of title 5, United States Code, for his 
        position including any future increase to statutory pay 
        limitations under 5318 of title 5, United States Code. 
        Notwithstanding paragraph (2), to the extent that an employee 
        covered under that paragraph receives any amount of locality-
        based comparability payment, the cost-of-living allowance rate 
        under that paragraph shall be reduced accordingly, as provided 
        under section 5941(c)(2)(B) of title 5, United States Code.

SEC. 216. APPLICATION TO OTHER ELIGIBLE EMPLOYEES.

    (a) In General.--
            (1) Definition.--In this subsection, the term ``covered 
        employee'' means--
                    (A) any employee who--
                            (i) on the day before the date of enactment 
                        of this Act--
                                    (I) was eligible to be paid a cost-
                                of-living allowance under 5941 of title 
                                5, United States Code; and
                                    (II) was not eligible to be paid 
                                locality-based comparability payments 
                                under 5304 or 5304a of that title; or
                            (ii) on or after the date of enactment of 
                        this Act becomes eligible to be paid a cost-of-
                        living allowance under 5941 of title 5, United 
                        States Code; or
                    (B) any employee who--
                            (i) on the day before the date of enactment 
                        of this Act--
                                    (I) was eligible to be paid an 
                                allowance under section 1603(b) of 
                                title 10, United States Code;
                                    (II) was eligible to be paid an 
                                allowance under section 1005(b) of 
                                title 39, United States Code;
                                    (III) was employed by the 
                                Transportation Security Administration 
                                of the Department of Homeland Security 
                                and was eligible to be paid an 
                                allowance based on section 5941 of 
                                title 5, United States Code; or
                                    (IV) was eligible to be paid under 
                                any other authority a cost-of-living 
                                allowance that is equivalent to the 
                                cost-of-living allowance under section 
                                5941 of title 5, United States Code; or
                            (ii) on or after the date of enactment of 
                        this Act--
                                    (I) becomes eligible to be paid an 
                                allowance under section 1603(b) of 
                                title 10, United States Code;
                                    (II) becomes eligible to be paid an 
                                allowance under section 1005(b) of 
                                title 39, United States Code;
                                    (III) is employed by the 
                                Transportation Security Administration 
                                of the Department of Homeland Security 
                                and becomes eligible to be paid an 
                                allowance based on section 5941 of 
                                title 5, United States Code; or
                                    (IV) is eligible to be paid under 
                                any other authority a cost-of-living 
                                allowance that is equivalent to the 
                                cost-of-living allowance under section 
                                5941 of title 5, United States Code.
            (2) Application to covered employees.--
                    (A) In general.--Notwithstanding any other 
                provision of law, for purposes of this subtitle 
                (including the amendments made by this subtitle) any 
                covered employee shall be treated as an employee to 
                whom section 5941 of title 5, United States Code (as 
                amended by section 212 of this subtitle), and section 
                214 of this subtitle apply.
                    (B) Pay fixed by statute.--Pay to covered employees 
                under section 5304 or 5304a of title 5, United States 
                Code, as a result of the application of this subtitle 
                shall be considered to be fixed by statute.
                    (C) Performance appraisal system.--With respect to 
                a covered employee who is subject to a performance 
                appraisal system no part of pay attributable to 
                locality-based comparability payments as a result of 
                the application of this subtitle including section 5941 
                of title 5, United States Code (as amended by section 
                212 of this subtitle), may be reduced on the basis of 
                the performance of that employee.
    (b) Postal Employees in Non-foreign Areas.--
            (1) In general.--Section 1005(b) of title 39, United States 
        Code, is amended--
                    (A) by inserting ``(1)'' after ``(b)'';
                    (B) by striking ``Section 5941,'' and inserting 
                ``Except as provided under paragraph (2), section 
                5941'';
                    (C) by striking ``For purposes of such section,'' 
                and inserting ``Except as provided under paragraph (2), 
                for purposes of section 5941 of that title,''; and
                    (D) by adding at the end the following:
            ``(2) On and after the date of enactment of the Non-Foreign 
        Area Retirement Equity Assurance Act of 2009--
                    ``(A) the provisions of that Act and section 5941 
                of title 5 shall apply to officers and employees 
                covered by section 1003 (b) and (c) whose duty station 
                is in a nonforeign area; and
                    ``(B) with respect to officers and employees of the 
                Postal Service (other than those officers and employees 
                described under subparagraph (A)) of section 216(b)(2) 
                of that Act shall apply.''.
            (2) Continuation of cost of living allowance.--
                    (A) In general.--Notwithstanding any other 
                provision of this subtitle, any employee of the Postal 
                Service (other than an employee covered by section 1003 
                (b) and (c) of title 39, United States Code, whose duty 
                station is in a nonforeign area) who is paid an 
                allowance under section 1005(b) of that title shall be 
                treated for all purposes as if the provisions of this 
                subtitle (including the amendments made by this 
                subtitle) had not been enacted, except that the cost-
                of-living allowance rate paid to that employee--
                            (i) may result in the allowance exceeding 
                        25 percent of the rate of basic pay of that 
                        employee; and
                            (ii) shall be the greater of--
                                    (I) the cost-of-living allowance 
                                rate in effect on December 31, 2009, 
                                for the applicable area; or
                                    (II) the applicable locality-based 
                                comparability pay percentage under 
                                section 214.
                    (B) Rule of construction.--Nothing in this subtitle 
                shall be construed to--
                            (i) provide for an employee described under 
                        subparagraph (A) to be a covered employee as 
                        defined under subsection (a); or
                            (ii) authorize an employee described under 
                        subparagraph (A) to file an election under 
                        section 217 of this subtitle.

SEC. 217. ELECTION OF ADDITIONAL BASIC PAY FOR ANNUITY COMPUTATION BY 
              EMPLOYEES.

    (a) Definition.--In this section the term ``covered employee'' 
means any employee--
            (1) to whom section 214 applies;
            (2) who is separated from service by reason of retirement 
        under chapter 83 or 84 of title 5, United States Code, during 
        the period of January 1, 2010, through December 31, 2012; and
            (3) who files an election with the Office of Personnel 
        Management under subsection (b).
    (b) Election.--
            (1) In general.--An employee described under subsection (a) 
        (1) and (2) may file an election with the Office of Personnel 
        Management to be covered under this section.
            (2) Deadline.--An election under this subsection may be 
        filed not later than December 31, 2012.
    (c) Computation of Annuity.--
            (1) In general.--Except as provided under paragraph (2), 
        for purposes of the computation of an annuity of a covered 
        employee any cost-of-living allowance under section 5941 of 
        title 5, United States Code, paid to that employee during the 
        first applicable pay period beginning on or after January 1, 
        2010, through the first applicable pay period ending on or 
        after December 31, 2012, shall be considered basic pay as 
        defined under section 8331(3) or 8401(4) of that title.
            (2) Limitation.--The amount of the cost-of-living allowance 
        which may be considered basic pay under paragraph (1) may not 
        exceed the amount of the locality-based comparability payments 
        the employee would have received during that period for the 
        applicable pay area if the limitation under section 214 of this 
        subtitle did not apply.
    (d) Civil Service Retirement and Disability Retirement Fund.--
            (1) Employee contributions.--A covered employee shall pay 
        into the Civil Service Retirement and Disability Retirement 
        Fund--
                    (A) an amount equal to the difference between--
                            (i) employee contributions that would have 
                        been deducted and withheld from pay under 
                        section 8334 or 8422 of title 5, United States 
                        Code, during the period described under 
                        subsection (c) of this section if the cost-of-
                        living allowances described under that 
                        subsection had been treated as basic pay under 
                        section 8331(3) or 8401(4) of title 5, United 
                        States Code; and
                            (ii) employee contributions that were 
                        actually deducted and withheld from pay under 
                        section 8334 or 8422 of title 5, United States 
                        Code, during that period; and
                    (B) interest as prescribed under section 8334(e) of 
                title 5, United States Code, based on the amount 
                determined under subparagraph (A).
            (2) Agency contributions.--
                    (A) In general.--The employing agency of a covered 
                employee shall pay into the Civil Service Retirement 
                and Disability Retirement Fund an amount for applicable 
                agency contributions based on payments made under 
                paragraph (1).
                    (B) Source.--Amounts paid under this paragraph 
                shall be contributed from the appropriation or fund 
                used to pay the employee.
            (3) Regulations.--The Office of Personnel Management may 
        prescribe regulations to carry out this section.

SEC. 218. REGULATIONS.

    (a) In General.--The Director of the Office of Personnel Management 
shall prescribe regulations to carry out this subtitle, including--
            (1) rules for special rate employees described under 
        section 213;
            (2) rules for adjusting rates of basic pay for employees in 
        pay systems administered by the Office of Personnel Management 
        when such employees are not entitled to locality-based 
        comparability payments under section 5304 of title 5, United 
        States Code, without regard to otherwise applicable statutory 
        pay limitations during the transition period described in 
        section 214 ending on the first day of the first pay period 
        beginning on or after January 1, 2012; and
            (3) rules governing establishment and adjustment of saved 
        or retained rates for any employee whose rate of pay exceeds 
        applicable pay limitations on the first day of the first pay 
        period beginning on or after January 1, 2012.
    (b) Other Pay Systems.--With the concurrence of the Director of the 
Office of Personnel Management, the administrator of a pay system not 
administered by the Office of Personnel Management shall prescribe 
regulations to carry out this subtitle with respect to employees in 
such pay system, consistent with the regulations prescribed by the 
Office under subsection (a). With respect to employees not entitled to 
locality-based comparability payments under section 5304 of title 5, 
United States Code, regulations prescribed under this subsection may 
provide for special payments or adjustments for employees who were 
eligible to receive a cost-of-living allowance under section 5941 of 
that title on the date before the date of enactment of this Act.

SEC. 219. EFFECTIVE DATES.

    (a) In General.--Except as provided by subsection (b), this 
subtitle (including the amendments made by this subtitle) shall take 
effect on the date of enactment of this Act.
    (b) Locality Pay and Schedule.--The amendments made by section 212 
and the provisions of section 214 shall take effect on the first day of 
the first applicable pay period beginning on or after January 1, 2010.

   TITLE III--DEEPWATER OIL AND GAS RESEARCH AND DEVELOPMENT FUNDING 
                             SOURCE REPEAL

SEC. 301. REPEAL.

    Effective October 1, 2010, section 999H of the Energy Policy Act of 
2005 (42 U.S.C. 16378) is amended--
            (1) by striking subsections (a), (b), (c), and (f);
            (2) by redesignating subsections (d) and (e) as subsections 
        (a) and (b), respectively;
            (3) in subsection (a), as so redesignated, by striking 
        ``obligated from the Fund under subsection (a)(1)'' and 
        inserting ``available under this section''; and
            (4) in subsection (b), as so redesignated, by striking ``In 
        addition to other amounts that are made available to carry out 
        this section, there'' and inserting ``There''.
                                 <all>
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