conviction was based on the acts or omissions 
of the covered individual that— 
‘‘(i) were taken or not taken in the 
performance of the covered individual’s of-
ficial duties at the agency; and 
‘‘(ii) are sufficient to support a re-
moval action under section 7513, 7543, or 
any other provision of law against the cov-
ered individual. 
‘‘(2) 
PROCEDURES.—A 
covered 
individual 
against whom a determination is made under para-
graph (1) shall be afforded— 
‘‘(A) notice of the determination not later 
than 15 business days in advance of a final 
order under paragraph (3); and 
‘‘(B) an opportunity to respond to the de-
termination by not later than 10 business days 
after receipt of the notice. 
‘‘(3) FINAL ORDER.—The head of the agency 
shall issue a final order to carry out paragraph (1) 
not later than— 
‘‘(A) in the case of a covered individual 
who responds under paragraph (2)(B), 5 busi-
ness days after receiving the response from the 
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covered individual, to the maximum extent 
practicable; or 
‘‘(B) in the case of a covered individual 
who does not so respond, 15 business days after 
the date on which the head of the agency pro-
vided notice to the individual under paragraph 
(2)(A), to the maximum extent practicable. 
‘‘(4) APPEAL.—A covered individual with re-
spect to whom an annuity is to be reduced under 
this subsection may appeal the final order under 
paragraph (3) to the Merit Systems Protection 
Board in accordance with any regulations that the 
Board may prescribe for purposes of this subsection. 
An appeal may not be made under this paragraph 
later than that date that is 10 business days after 
the date on which an order is issued under para-
graph (3). 
‘‘(b) ADMINISTRATIVE REQUIREMENTS.— 
‘‘(1) IN GENERAL.—Not later than 30 business 
days after the date on which the head of an agency 
issues a final order under subsection (a) or a final 
decision of the Merit Systems Protection Board is 
rendered (as the case may be) with respect to an in-
dividual, the applicable employing agency shall 
amend the covered individual’s retirement records to 
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reflect the period of service that is no longer cred-
itable by operation of this section and transmit the 
amended records to the Director of the Office of 
Personnel Management. 
‘‘(2) ANNUITANTS.—With respect to any cov-
ered individual who is an annuitant on the date on 
which a final order is so issued, the Director of the 
Office of Personnel Management shall, not later 
than 30 business days after the receipt of amended 
retirement records from an agency under paragraph 
(1), recalculate the annuity of the annuitant. 
‘‘(c) LUMP-SUM ANNUITY CREDIT.—A covered indi-
vidual with respect to whom an annuity is reduced under 
subsection (a) shall be entitled to be paid so much of the 
individual’s lump-sum credit as is attributable to the pe-
riod of felonious service. 
‘‘(d) SPOUSE EXCEPTION.—The spouse of any cov-
ered individual referred to in subsection (a) shall be eligi-
ble for spousal annuity benefits that, but for subsection 
(a), would otherwise have been payable if the Attorney 
General of the United States or the attorney general of 
a State, a territory, or the District of Columbia determines 
that the spouse fully cooperated with authorities in the 
conduct of a criminal investigation and subsequent pros-
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ecution of the individual that resulted in the benefit reduc-
tion. 
‘‘(e) APPLICATION.—Nothing in this section shall be 
construed to affect or otherwise mitigate the application 
of any other section of this subchapter. 
‘‘(f) DEFINITIONS.—In this section— 
‘‘(1) the term ‘covered individual’ means— 
‘‘(A) an individual who is removed from a 
position as an employee (as defined in section 
2105) in the civil service for performance or 
misconduct under section 7513, 7543, or any 
other provision of law; or 
‘‘(B) an individual who— 
‘‘(i) is an employee (as defined in sec-
tion 2105) subject to a removal action for 
performance or misconduct under section 
7513, 7543, or any other provision of law; 
and 
‘‘(ii) voluntarily separates from service 
with the employing agency prior to the 
issuance of a final decision with respect to 
the removal action; 
‘‘(2) the term ‘felonious service’ means, with re-
spect to a covered individual, the period of service— 
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‘‘(A) beginning on the date on which the 
head of the employing agency determines that 
the individual commenced engaging in the acts 
or omissions that gave rise to the removal ac-
tion or proposed removal action described in 
paragraph (1); and 
‘‘(B) ending on the date that is the earlier 
of— 
‘‘(i) the date on which the individual 
is removed from or voluntarily separates 
from a position at the agency; or 
‘‘(ii) the date on which the individual 
ceases engaging in the acts or omissions 
that gave rise to the removal action or pro-
posed removal action described in para-
graph (1); 
‘‘(3) the term ‘finally convicted’ or ‘final convic-
tion’ refers to a conviction of a felony— 
‘‘(A) that has not been appealed and is no 
longer appealable because the time for taking 
an appeal has expired; or 
‘‘(B) that has been appealed and the ap-
peals process for which is completed; 
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‘‘(4) the term ‘lump-sum credit’ has the mean-
ing given that term in section 8331(8) or 8401(19) 
(as the case may be); and 
‘‘(5) the term ‘service’ has the meaning given 
that term in section 8331(12) or 8401(26) (as the 
case may be).’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter II of chapter 83 of title 5, 
United States Code, is amended by adding at the 
end the following: 
‘‘8323. Reduction of benefits of employees convicted of certain crimes.’’. 
(b) APPLICATION.—Section 8323 of title 5, United 
States Code, as added by subsection (a), shall apply to 
acts or omissions described in subsection (a)(1)(B) of that 
section occurring after the date of enactment of this Act. 
(c) REGULATIONS.—The Office of Personnel Man-
agement may prescribe regulations to carry out this sec-
tion and the amendments made by this section. 
SEC. 9. AUTHORITY TO RECOUP BONUSES OR AWARDS 
PAID TO EMPLOYEES. 
(a) ADVERSE FINDINGS AND EMPLOYEES UNDER IN-
VESTIGATION.—Chapter 45 of title 5, United States Code, 
is amended by adding at the end the following: 
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