IIA
105TH CONGRESS
2D SESSION
H. R. 3249
IN THE SENATE OF THE UNITED STATES
JULY 21, 1998
Received; read twice and referred to the Committee on Finance
AN ACT
To provide for the rectification of certain retirement coverage
errors affecting Federal employees, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Federal Retirement Coverage Corrections Act’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Applicability.
Sec. 4. Restriction relating to future corrections.
Sec. 5. Irrevocability of elections.
TITLE I—DESCRIPTION OF RETIREMENT COVERAGE ERRORS TO
WHICH THIS ACT APPLIES AND MEASURES FOR THEIR REC-
TIFICATION
Subtitle A—Employee Who Should Have Been FERS Covered, But Who Was
Erroneously CSRS Covered or CSRS-Offset Covered Instead
Sec. 101. Elections.
Sec. 102. Effect of an election to be transferred from CSRS to FERS to cor-
rect a retirement coverage error.
Sec. 103. Effect of an election to be transferred from CSRS-Offset to FERS
to correct a retirement coverage error.
Sec. 104. Effect of an election to be transferred from CSRS to CSRS-Offset
to correct a retirement coverage error.
Sec. 105. Effect of an election to be restored (or transferred) to CSRS-Offset
after having been corrected to FERS from CSRS-Offset (or
CSRS).
Sec. 106. Effect of election to remain FERS covered after having been cor-
rected to FERS from CSRS-Offset (or CSRS).
Subtitle B—Employee Who Should Have Been FERS Covered, CSRS-Offset
Covered, or CSRS Covered, But Who Was Erroneously Social Security-Only
Covered Instead
Sec. 111. Elections.
Sec. 112. Effect of an election to become FERS covered to correct the retire-
ment coverage error.
Sec. 113. Effect of an election to become CSRS-Offset covered to correct the
retirement coverage error.
Sec. 114. Effect of an election to become CSRS covered to correct the retire-
ment coverage error.
Subtitle C—Employee Who Should Have Been Social Security-Only Covered,
But Who Was Erroneously FERS Covered, CSRS-Offset Covered, or CSRS
Covered Instead
Sec. 121. Uncorrected error: employee who should be Social Security-Only cov-
ered, but who is erroneously FERS covered instead.
Sec. 122. Uncorrected error: employee who should be Social Security-Only cov-
ered, but who is erroneously CSRS-Offset covered instead.
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Sec. 123. Uncorrected error: employee who should be Social Security-Only cov-
ered, but who is erroneously CSRS covered instead.
Sec. 124. Corrected error: situations under sections 121–123.
Sec. 125. Vested employees excepted from automatic exclusion.
Subtitle D—Employee Who Should Have Been CSRS Covered or CSRS-
Offset Covered, But Who Was Erroneously FERS Covered Instead
Sec. 131. Elections.
Sec. 132. Effect of an election to be transferred from FERS to CSRS to cor-
rect a retirement coverage error.
Sec. 133. Effect of an election to be transferred from FERS to CSRS-Offset
to correct a retirement coverage error.
Sec. 134. Effect of an election to be restored to FERS after having been cor-
rected to CSRS.
Sec. 135. Effect of an election to be restored to FERS after having been cor-
rected to CSRS-Offset.
Sec. 136. Disqualification of certain individuals to whom same election was pre-
viously available.
Subtitle E—Employee Who Should Have Been CSRS-Offset Covered, But
Who Was Erroneously CSRS Covered Instead
Sec. 141. Automatic transfer to CSRS-Offset.
Sec. 142. Effect of transfer.
Subtitle F—Employee Who Should Have Been CSRS Covered, But Who Was
Erroneously CSRS-Offset Covered Instead
Sec. 151. Elections.
Sec. 152. Effect of an election to be transferred from CSRS-Offset to CSRS
to correct the retirement coverage error.
Sec. 153. Effect of an election to be restored to CSRS-Offset after having been
corrected to CSRS.
Subtitle G—Additional Provisions Relating to Government Agencies
Sec. 161. Repayment required in certain situations.
Sec. 162. Equitable sharing of amounts payable from the Government if more
than one agency involved.
Sec. 163. Provisions relating to the original responsible agency.
TITLE II—GENERAL PROVISIONS
Sec. 201. Identification and notification requirements.
Sec. 202. Individual appeal rights.
Sec. 203. Information to be furnished by Government agencies to authorities
administering this Act.
Sec. 204. Social Security records.
Sec. 205. Conforming amendments respecting Social Security coverage and
OASDI taxes.
Sec. 206. Regulations.
Sec. 207. All elections to be approved by OPM.
Sec. 208. Additional transfers to OASDI trust funds in certain cases.
Sec. 209. Technical and conforming amendments.
TITLE III—OTHER PROVISIONS
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Sec. 301. Provisions to permit continued conformity of other Federal retire-
ment systems.
Sec. 302. Provisions to prevent reductions in force and any unfunded liability
in the CSRDF.
Sec. 303. Individual right of action preserved for amounts not otherwise pro-
vided for under this Act.
Sec. 304. Extension of open enrollment period to employees under the Foreign
Service Retirement and Disability System.
TITLE IV—TAX PROVISIONS
Sec. 401. Tax provisions.
SEC. 2. DEFINITIONS.
For purposes of this Act:
(1) CSRS.—The term ‘‘CSRS’’ means the Civil
Service Retirement System.
(2) CSRDF.—The term ‘‘CSRDF’’ means the
Civil Service Retirement and Disability Fund.
(3) CSRS COVERED.—The term ‘‘CSRS cov-
ered’’, with respect to any service, means service
that is subject to the provisions of subchapter III of
chapter 83 of title 5, United States Code, other than
those that apply only with respect to an individual
described in section 8402(b)(2) of such title.
(4) 
CSRS-OFFSET
COVERED.—The 
term
‘‘CSRS-Offset covered’’, with respect to any service,
means service that is subject to the provisions of
subchapter III of chapter 83 of title 5, United
States Code, that apply with respect to an individual
described in section 8402(b)(2) of such title.
(5) EMPLOYEE.—The term ‘‘employee’’ means
an employee as defined by section 8331 or 8401 of
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title 5, United States Code, and any other individual
(not satisfying either of those definitions) serving in
an appointive or elective office or position in the ex-
ecutive, legislative, or judicial branch of the Govern-
ment who, by virtue of that service, is permitted or
required to be CSRS covered, CSRS-Offset covered,
FERS covered, or Social Security-Only covered.
(6) EXECUTIVE DIRECTOR.—The term ‘‘Execu-
tive Director of the Federal Retirement Thrift In-
vestment Board’’ or ‘‘Executive Director’’ means the
Executive Director appointed under section 8474 of
title 5, United States Code.
(7) FERS.—The term ‘‘FERS’’ means the
Federal Employees’ Retirement System.
(8) FERS COVERED.—The term ‘‘FERS cov-
ered’’, with respect to any service, means service
that is subject to chapter 84 of title 5, United States
Code.
(9) GOVERNMENT.—The term ‘‘Government’’
has the meaning given such term by section 8331(7)
of title 5, United States Code.
(10) OASDI 
TAXES.—The term ‘‘OASDI
taxes’’ means the OASDI employee tax and the
OASDI employer tax.
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(11) 
OASDI 
EMPLOYEE
TAX.—The 
term
‘‘OASDI employee tax’’ means the tax imposed
under section 3101(a) of the Internal Revenue Code
of 1986 (relating to Old-Age, Survivors and Disabil-
ity Insurance).
(12) 
OASDI 
EMPLOYER
TAX.—The 
term
‘‘OASDI employer tax’’ means the tax imposed
under section 3111(a) of the Internal Revenue Code
of 1986 (relating to Old-Age, Survivors and Disabil-
ity Insurance).
(13) 
OASDI 
TRUST
FUNDS.—The 
term
‘‘OASDI trust funds’’ means the Federal Old-Age
and Survivors Insurance Trust Fund and the Fed-
eral Disability Insurance Trust Fund.
(14) PERIOD OF ERRONEOUS COVERAGE.—The
term ‘‘period of erroneous coverage’’ means, in the
case of a retirement coverage error, the period
throughout which retirement coverage is in effect
pursuant to such error (or would have been in effect,
but for such error).
(15) RETIREMENT
COVERAGE
DETERMINA-
TION.—The term ‘‘retirement coverage determina-
tion’’ means a determination by an employee or
agent of the Government as to whether a particular
type of Government service is CSRS covered, CSRS-
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Offset covered, FERS covered, or Social Security-
Only covered.
(16) RETIREMENT
COVERAGE
ERROR.—The
term ‘‘retirement coverage error’’ means a retire-
ment coverage determination that, as a result of any
error, misrepresentation, or inaction on the part of
an employee or agent of the Government (including
an error as described in section 163(b)(2)), causes
an individual erroneously to be enrolled or not en-
rolled in a retirement system, as further described in
the applicable subtitle of title I.
(17) SOCIAL
SECURITY-ONLY
COVERED.—The
term ‘‘Social Security-Only covered’’, with respect to
any service, means Government service that con-
stitutes employment under section 210 of the Social
Security Act (42 U.S.C. 410), and that—
(A) is subject to OASDI taxes; but
(B) is not subject to any retirement system
for Government employees (disregarding title II
of the Social Security Act).
(18) 
THRIFT
SAVINGS
FUND.—The 
term
‘‘Thrift Savings Fund’’ means the Thrift Savings
Fund established under section 8437 of title 5,
United States Code.
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SEC. 3. APPLICABILITY.
(a) IN GENERAL.—Subject to subsection (b), this Act
shall apply with respect to any retirement coverage error
that occurs before, on, or after the date of enactment of
this Act, excluding any error corrected within 1 year after
the date on which it occurs.
(b) LIMITATION.—Nothing in this Act shall affect
any retirement coverage or treatment accorded with re-
spect to any individual in connection with any period be-
ginning before the first day of the first applicable pay pe-
riod beginning on or after January 1, 1984.
SEC. 4. RESTRICTION RELATING TO FUTURE CORREC-
TIONS.
(a) IN GENERAL.—Except as otherwise provided in
this Act, any individual who, on or after the date of enact-
ment of this Act, becomes or remains affected by a retire-
ment coverage error may not be excluded from or made
subject to any retirement system for the sole purpose of
correcting such error.
(b) COORDINATION WITH OTHER LAWS.—
(1) IN GENERAL.—Nothing in this Act shall be
considered to preclude an election under the Federal
Employees’ Retirement System Open Enrollment
Act of 1997 (Public Law 105–61; 111 Stat. 1318)
or any other voluntary retirement coverage election
authorized by statute.
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(2) REGULATIONS.—The Office of Personnel
Management shall prescribe any regulations which
may be necessary to apply this Act in the case of
any individual who changes retirement coverage pur-
suant to a voluntary election made other than under
this Act.
SEC. 5. IRREVOCABILITY OF ELECTIONS.
Any election made (or deemed to have been made)
under this Act by an employee or any other individual
shall be irrevocable.
TITLE I—DESCRIPTION OF RE-
TIREMENT 
COVERAGE 
ER-
RORS TO WHICH THIS ACT AP-
PLIES AND MEASURES FOR
THEIR RECTIFICATION
Subtitle A—Employee Who Should
Have Been FERS Covered, But
Who 
Was 
Erroneously 
CSRS
Covered or CSRS-Offset Cov-
ered Instead
SEC. 101. ELECTIONS.
(a) APPLICABILITY.—This subtitle shall apply in the
case of any employee who—
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(1) should be (or should have been) FERS cov-
ered but, as a result of a retirement coverage error,
is (or was) CSRS covered instead; or
(2) should be (or should have been) FERS cov-
ered but, as a result of a retirement coverage error,
is (or was) CSRS-Offset covered instead.
(b) UNCORRECTED ERROR.—If, at the time of mak-
ing an election under this section, the retirement coverage
error described in paragraph (1) or (2) of subsection (a)
(as applicable) has not been corrected, the employee af-
fected by such error may elect—
(1) to be FERS covered instead; or
(2) to remain (or instead become) CSRS-Offset
covered.
(c) CORRECTED ERROR.—If, at the time of making
an election under this section, the retirement coverage
error described in paragraph (1) or (2) of subsection (a)
(as applicable) has been corrected, the employee affected
by such error may elect—
(1) to be CSRS-Offset covered instead; or
(2) to remain FERS covered.
(d) DEFAULT RULE.—
(1) IN
GENERAL.—If the employee is given
written notice in accordance with section 201 as to
the availability of an election under this section, but
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does not make any such election within the 6-month
period beginning on the date on which such notice
is so given, the option under subsection (b)(2) or
(c)(2), as applicable, shall be deemed to have been
elected on the last day of such period.
(2) CSRS NOT AN OPTION.—Nothing in this
section shall be considered to afford an employee the
option of becoming or remaining CSRS covered.
(e) RETROACTIVE EFFECT.—An election under this
section (including an election by default, and an election
to remain covered by the retirement system by which the
electing individual is covered as of the date of the election)
shall be effective retroactive to the effective date of the
retirement coverage error (as referred to in subsection (a))
to which such election relates.
SEC. 102. EFFECT OF AN ELECTION TO BE TRANSFERRED
FROM CSRS TO FERS TO CORRECT A RETIRE-
MENT COVERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 101(a)(1) who elects the option under section
101(b)(1).
(b) DISPOSITION
OF
CONTRIBUTIONS
TO
THE
CSRDF.—
(1) EMPLOYEE CONTRIBUTIONS.—
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(A) TRANSFER TO OASDI TRUST FUNDS.—
There shall be transferred from the CSRDF to
the OASDI trust funds an amount equal to the
amount of the OASDI employee tax that should
have been deducted and withheld from the Fed-
eral wages of the employee for the period of er-
roneous coverage involved.
(B) RULE IF THERE ARE EXCESS CSRDF
CONTRIBUTIONS.—
(i) IN GENERAL.—Any excess amount
described in clause (ii) that is attributable
to an employee described in subsection (a)
shall be forfeited.
(ii) EXCESS AMOUNT DEFINED.—The
excess amount described in this clause is,
in the case of an employee, the amount by
which—
(I) that portion of the employee’s
lump-sum credit that is attributable
to the period of erroneous coverage in-
volved, exceeds (if at all)
(II) the total of the amount de-
scribed in subparagraph (A) plus the
amount that should have been de-
ducted under section 8422 of title 5,
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United States Code, from the pay of
the employee for the period of erro-
neous coverage involved.
(C) RULE IF LUMP-SUM CREDIT IS LESS
THAN
TOTAL
EMPLOYEE
CONTRIBUTIONS
TO
OASDI AND CSRDF THAT SHOULD HAVE BEEN
MADE.—
(i) IN GENERAL.—
(I) SHORTFALL TO BE MADE UP
BY AGENCY.—If the amount described
in subparagraph (B)(ii)(I) is less than
the total amount described in sub-
paragraph 
(B)(ii)(II), 
an 
amount
equal to the shortfall shall be made up
(in such manner as the Commissioner
of Social Security shall prescribe) by
the agency in or under which the em-
ployee is then employed, out of
amounts otherwise available in the ap-
propriation, fund, or account from
which any OASDI employer tax or
contribution to the CSRDF (as appli-
cable) may be made, except as pro-
vided in subclause (II) or clause
(iii)(I).
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(II) REDUCTION
FOR
DEPOSIT
DUE.—In any case in which a deposit
is required under clause (ii), the
amount required to be made up under
subclause (I) shall be reduced by the
amount of the deposit so required
(but not below zero).
(ii) DEPOSIT REQUIREMENT.—
(I) IN GENERAL.—To the extent
that the shortfall under clause (i) is
due to the any lump-sum credit re-
ceived by the employee (for which an
appropriate 
deposit 
under 
section
8334(d)(1) of title 5, United States
Code, has not been made), the em-
ployee shall be required to repay an
amount equal to the amount of such
deposit, except as provided in clause
(iii)(I).
(II) TREATMENT
AS
A
DEBT
DUE.—If an employee fails to pay the
amount required under subclause (I),
that amount shall be recoverable by
the CSRDF under the same authori-
ties (including to waive a right of re-
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covery) 
as 
described 
in 
section
114(b)(2). For purposes of any exer-
cise of authority under the preceding
sentence, the Director of the Office of
Personnel Management shall be con-
sidered the head of the agency con-
cerned.
(iii) SPECIAL RULES.—
(I) DEPOSIT FOR FERS DEDUC-
TIONS NOT MANDATORY.—Nothing in
this subparagraph shall, in any situa-
tion described in clause (ii), be consid-
ered to require any agency make-up
payment (or employee repayment) of
any portion of the lump-sum credit
(beyond any amount necessary in
order to permit the transfer described
in paragraph (1)(A)) which would be
assignable to amounts that should
have been deducted under section
8422 of title 5, United States Code,
from pay of the employee involved.
(II) AUTHORITY TO MAKE FERS
DEPOSIT.—An employee under this
section who has received a lump-sum
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(2) GOVERNMENT CONTRIBUTIONS.—
(A) TRANSFER TO OASDI TRUST FUNDS.—
There shall be transferred from the CSRDF to
the OASDI trust funds the excess of—
(i) the amount of the OASDI em-
ployer tax that should have been paid with
respect to the employee for the period of
erroneous coverage involved, over
(ii) the amount of the OASDI em-
ployer tax that may be assessed under sec-
tion 6501 of the Internal Revenue Code of
1986 in connection with such employee,
determined in such manner as the Secretary of
the Treasury shall by regulation prescribe.
(B) RULE IF CSRDF CONTRIBUTIONS AC-
TUALLY MADE ARE LESS THAN TOTAL GOVERN-
MENT CONTRIBUTIONS TO OASDI AND CSRDF
THAT SHOULD HAVE BEEN MADE.—
(i) IN GENERAL.—If the total Govern-
ment contributions to the CSRDF that
were made with respect to the employee for
the period of erroneous coverage involved
are less than the amount described in
clause (ii), an amount equal to the short-
fall shall be made up (in such manner as
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the Commissioner of Social Security shall
prescribe) by the agency in or under which
the employee is then employed.
(ii) DESCRIPTION OF AMOUNT.—The
amount described in this clause is the total
of—
(I) the amount required to be
transferred under subparagraph (A),
plus
(II) the amount that should have
been contributed by the Government
under section 8423 of title 5, United
States Code, for such employee with
respect to such period.
(iii) SOURCE
OF
PAYMENTS.—Any
amount required to be paid by an agency
under clause (i) shall be payable out of any
appropriation, fund, or account available to
such agency for making Government con-
tributions to the CSRDF or the OASDI
trust funds (as appropriate).
(c) MAKEUP CONTRIBUTIONS TO THE THRIFT SAV-
INGS FUND.—
(1) IN GENERAL.—An employee to whom this
section applies is entitled to have contributed to the
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Thrift Savings Fund on such employee’s behalf, in
addition to any regular employee or Government
contributions that would be permitted or required
for the year in which the contributions under this
subsection are made, an amount equal to the sum
of—
(A) the amount determined under para-
graph (2) with respect to such employee for the
period of erroneous coverage involved;
(B) an amount equal to the total contribu-
tions that should have been made for such em-
ployee under section 8432(c)(1) of title 5,
United States Code, for the period of erroneous
coverage involved;
(C) an amount equal to the total contribu-
tions that should have been made for such em-
ployee under section 8432(c)(2) of title 5,
United States Code, for the period of erroneous
coverage involved (taking into account both the
amount referred to in subparagraph (A) and
any contributions to the Thrift Savings Fund
actually made by such employee with respect to
the period involved); and
(D) an amount equal to lost earnings on
the amounts referred to in subparagraphs (A)
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through (C), determined in accordance with
paragraph (3).
(2) AMOUNT BASED ON AVERAGE PERCENTAGE
OF PAY CONTRIBUTED BY EMPLOYEES DURING PE-
RIOD OF ERRONEOUS COVERAGE.—
(A) IN
GENERAL.—The amount deter-
mined under this paragraph with respect to an
employee for a period of erroneous coverage
shall be equal to the amount of the contribu-
tions such employee would have made if, during
each calendar year in such period, the employee
had contributed the percentage of such employ-
ee’s basic pay for such year specified in sub-
paragraph (B) (determined disregarding any
contributions actually made by such employee
with respect to the year involved).
(B) PERCENTAGE TO BE APPLIED.—
(i) IN GENERAL.—The percentage to
be applied under this subparagraph in the
case of any employee with respect to a par-
ticular year is—
(I) the average percentage of
basic pay that was contributed for
such year under section 8432(a) of
title 5, United States Code, by full-
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time FERS covered employees who
contributed to the Thrift Savings
Fund in such year and for whom a
salary rate is recorded (as of June 30
of such year) in the central personnel
data file maintained by the Office of
Personnel Management; or
(II) if such average percentage
for the year in question is unavailable,
the average percentage for the most
recent year prior to the year in ques-
tion that is available.
(ii) PERCENTAGE
CONTRIBUTED.—
For purposes of clause (i)(I), the percent-
age of basic pay for each employee in-
cluded in the average shall be determined
by dividing the total employee contribu-
tions received into the Thrift Savings Plan
account of that employee during such year
by the annual salary rate for that employee
as recorded in the central personnel data
file (referred to in clause (i)(I)) as of June
30 of such year.
(C) LIMITATIONS.—In no event may the
amount determined under this paragraph for an
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individual with respect to a year exceed the
amount that, if added to the amount of the con-
tributions that were actually made by such indi-
vidual to the Thrift Savings Fund with respect
to such year (if any), would cause the total to
exceed—
(i) any limitation under section 415 or
any other provision of the Internal Reve-
nue Code of 1986 that would have applied
to such employee with respect to such year;
or
(ii) any limitation under section
8432(a) or any other provision of title 5,
United States Code, that would have ap-
plied to such employee with respect to such
year.
(3) LOST EARNINGS.—
(A) IN GENERAL.—Lost earnings on any
amounts referred to in subparagraph (A), (B),
or (C) of paragraph (1) shall, to the extent
those amounts are attributable to contributions
that should have been made with respect to a
particular year, be determined in the same way
as if those amounts had in fact been timely con-
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tributed and allocated among the TSP invest-
ment funds in accordance with—
(i) the investment fund election that
was accepted by the employing agency be-
fore the date the contribution should have
been made and that was still in effect as
of that date; or
(ii) if no such election was then in ef-
fect for the employee, the investment fund
election attributed to such employee with
respect to such year.
(B) INVESTMENT FUND ELECTION ATTRIB-
UTED.—For purposes of subparagraph (A)(ii),
the investment fund election attributed to an
employee with respect to a particular year is—
(i) the average percentage allocation
of TSP contributions among the TSP in-
vestment funds from all sources, with re-
spect to that year, except that the invest-
ment fund election attributed to contribu-
tions in years prior to 1991 shall be the G
Fund; or
(ii) if such average percentage alloca-
tion for the year in question is unavailable,
the average percentage allocation for the
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most recent year prior to the year in ques-
tion that is available.
(C) DEFINITION
OF
INVESTMENT
FUND
ELECTION, ETC.—For purposes of this para-
graph—
(i) the term ‘‘investment fund elec-
tion’’ means a choice by a participant con-
cerning how contributions to the Thrift
Savings Plan shall be allocated among the
TSP investment funds;
(ii) the term ‘‘participant’’ means any
person with an account in the Thrift Sav-
ings Plan, or who would have an account
in the Thrift Savings Plan but for an em-
ploying agency error (including an error as
described in section 163(b)(2));
(iii) 
the 
term 
‘‘TSP 
investment
funds’’ means the C Fund, the F Fund,
the G Fund, and any other investment
fund in the Thrift Savings Plan created
after December 27, 1996; and
(iv) the terms ‘‘C Fund’’, ‘‘F Fund’’,
and ‘‘G Fund’’ refer to the funds described
in paragraphs (1), (3), and (4), respec-
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tively, of section 8438(a) of title 5, United
States Code.
(4) MAKEUP CONTRIBUTION TO BE MADE IN A
LUMP SUM.—
(A) IN GENERAL.—Any amount to which
an employee is entitled under this subsection
shall be paid promptly by the agency in or
under which the electing employee is (as of the
date of the election) employed, in a lump sum,
upon notification to such agency under sub-
paragraph (B)(ii) as to the amount due.
(B) BOARD FUNCTIONS.—The regulations
under paragraph (6) shall include provisions
under which—
(i) each employing agency shall be re-
quired to determine and notify the Federal
Retirement Thrift Investment Board, in a
timely manner, as to any amounts under
paragraph (1)(A)–(C) owed by such agen-
cy; and
(ii) the Board shall, based on the in-
formation it receives from an agency under
clause (i), determine lost earnings on those
amounts and promptly notify such agency
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as to the total amounts due from it under
this subsection.
(5) JUSTICES
AND
JUDGES; 
MAGISTRATES;
ETC.—The preceding provisions of this subsection
shall not apply in the case of any employee who,
pursuant to the election referred to in subsection
(a), becomes subject to section 8440a, 8440b,
8440c, or 8440d of title 5, United States Code.
(6) REGULATIONS.—The Executive Director of
the Federal Retirement Thrift Investment Board
shall prescribe any regulations necessary to carry
out this subsection.
SEC. 103. EFFECT OF AN ELECTION TO BE TRANSFERRED
FROM CSRS-OFFSET TO FERS TO CORRECT A
RETIREMENT COVERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 101(a)(2) who elects the option under section
101(b)(1).
(b) EFFECT OF ELECTION.—In the case of an em-
ployee described in subsection (a), the following provisions
shall apply:
(1) Section 102(b) (relating to disposition of
contributions to the CSRDF), but disregarding pro-
visions relating to transfers to OASDI trust funds.
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(2) Section 102(c) (relating to makeup con-
tributions to the Thrift Savings Fund).
SEC. 104. EFFECT OF AN ELECTION TO BE TRANSFERRED
FROM CSRS TO CSRS-OFFSET TO CORRECT A
RETIREMENT COVERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 101(a)(1) who elects the option under section
101(b)(2).
(b) SAME AS IN THE CASE OF AN ELECTION TO RAT-
IFY ERRONEOUS CSRS-OFFSET COVERAGE.—
(1) IN GENERAL.—The effect of an election de-
scribed in subsection (a) shall be as described in sec-
tion 101(b)(2), except that the provisions of section
102(b) shall also apply.
(2) APPROPRIATE PERCENTAGES TO BE USED
IN
DETERMINING
EMPLOYEE
AND
GOVERNMENT
CONTRIBUTIONS TO CSRDF.—For purposes of para-
graph (1), section 102(b) shall be applied by sub-
stituting 
‘‘the 
relevant 
provisions 
of 
section
8334(k)’’ for ‘‘section 8422’’ and ‘‘section 8423’’.
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SEC. 105. EFFECT OF AN ELECTION TO BE RESTORED (OR
TRANSFERRED) TO CSRS-OFFSET AFTER HAV-
ING BEEN CORRECTED TO FERS FROM CSRS-
OFFSET (OR CSRS).
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in
paragraph (1) or (2) of section 101(a) who (after having
been corrected to FERS coverage) elects the option under
section 101(c)(1).
(b) DISPOSITION
OF
CONTRIBUTIONS
TO
THE
CSRDF.—
(1) IN
GENERAL.—The provisions of section
102(b) shall apply in the case of an employee de-
scribed in subsection (a), subject to paragraph (2).
(2) NO
TRANSFERS
FOR
AMOUNTS
ALREADY
PAID INTO OASDI, ETC.—For purposes of paragraph
(1), section 102(b) shall be applied in conformance
with the following:
(A) NO DOUBLE PAYMENTS INTO OASDI.—
To the extent that the appropriate OASDI em-
ployee or employer tax has already been paid
for the total period involved (or any portion
thereof), reduce the respective amounts re-
quired by paragraphs (1)(A) and (2)(A)(i) of
section 102(b) accordingly.
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(B) APPROPRIATE
PERCENTAGES
TO
BE
USED IN DETERMINING EMPLOYEE AND GOV-
ERNMENT
CONTRIBUTIONS
TO
CSRDF.—Sub-
stitute ‘‘the relevant provisions of section
8334(k)’’ for ‘‘section 8422’’ and ‘‘section
8423’’.
(C) APPROPRIATE LUMP-SUM CREDIT TO
BE USED.—The appropriate lump-sum credit to
be used under this subsection shall be deter-
mined in accordance with regulations to be pre-
scribed by the Office of Personnel Management.
(D) PROVISIONS TO BE APPLIED WITH RE-
SPECT
TO
THE
TOTAL
PERIOD
INVOLVED.—
Substitute ‘‘total period involved (as defined by
section 105)’’ for ‘‘period of erroneous coverage
involved’’.
(c) DISPOSITION
OF
EXCESS
TSP CONTRIBU-
TIONS.—
(1) GOVERNMENT
CONTRIBUTIONS.—All Gov-
ernment contributions made on behalf of the em-
ployee to the Thrift Savings Fund that are attrib-
utable to the total period involved (including any
earnings thereon) shall be forfeited. For the purpose
of section 8437(d) of title 5, United States Code,
amounts so forfeited shall be treated as if they were
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amounts forfeited under section 8432(g) of such
title.
(2) EMPLOYEE CONTRIBUTIONS.—The election
referred to in subsection (a) shall not be taken into
account for purposes of any determination relating
to the disposition of any employee contributions to
the Thrift Savings Fund, attributable to the total
period involved, that were in excess of the maximum
amount that would have been allowable under appli-
cable provisions of subchapter III of chapter 83 of
title 5, United States Code (including any earnings
thereon).
(d) DEFINITION OF TOTAL PERIOD INVOLVED.—For
purposes of this section, the term ‘‘total period involved’’
means the period beginning on the effective date of the
retirement coverage error involved and ending on the day
before the date on which the election described in sub-
section (a) is made.
SEC. 106. EFFECT OF ELECTION TO REMAIN FERS COV-
ERED AFTER HAVING BEEN CORRECTED TO
FERS FROM CSRS-OFFSET (OR CSRS).
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in
paragraph (1) or (2) of section 101(a) who (after having
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been corrected to FERS coverage) elects the option under
section 101(c)(2).
(b) DISPOSITION
OF
CONTRIBUTIONS
TO
THE
CSRDF.—The provisions of section 102(b) shall apply in
the case of an employee described in subsection (a), sub-
ject to the same condition as set forth in section
105(b)(2)(A).
(c) MAKEUP CONTRIBUTIONS TO THE THRIFT SAV-
INGS FUND.—Section 102(c) shall apply, except that an
agency shall receive credit for any automatic or matching
Government contributions and any lost earnings paid by
such agency as part of any corrections process previously
carried out with respect to the employee involved.
Subtitle B—Employee Who Should
Have 
Been 
FERS 
Covered,
CSRS-Offset Covered, or CSRS
Covered, But Who Was Erro-
neously 
Social 
Security-Only
Covered Instead
SEC. 111. ELECTIONS.
(a) APPLICABILITY.—This subtitle shall apply in the
case of any employee who—
(1) should be (or should have been) FERS cov-
ered but, as a result of a retirement coverage error,
is (or was) Social Security-Only covered instead;
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(2) should be (or should have been) CSRS-Off-
set covered but, as a result of a retirement coverage
error, is (or was) Social Security-Only covered in-
stead; or
(3) should be (or should have been) CSRS cov-
ered but, as a result of a retirement coverage error,
is (or was) Social Security-Only covered instead.
(b) UNCORRECTED ERROR.—If, at the time of mak-
ing an election under this section, the retirement coverage
error described in paragraph (1), (2), or (3) of subsection
(a) (as applicable) has not been corrected, the employee
affected by such error may elect—
(1)(A) in the case of an error described in sub-
section (a)(1), to be FERS covered as well;
(B) in the case of an error described in sub-
section (a)(2), to be CSRS-Offset covered as well; or
(C) in the case of an error described in sub-
section (a)(3), to be CSRS covered instead; or
(2) to remain Social Security-Only covered.
(c) CORRECTED ERROR.—
(1) IN
GENERAL.—Not later than 6 months
after the date of enactment of this Act, there shall
be submitted to the Congress a proposal (including
any necessary draft legislation) to carry out the pol-
icy described in paragraph (2).
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(2) POLICY.—Under the proposal, any employee
with respect to whom the retirement coverage error
described in paragraph (1), (2), or (3) of subsection
(a) (as applicable) has already been corrected, but
under terms less advantageous to the employee than
would have been the case under this Act, shall be af-
forded a reasonable opportunity to obtain treatment
comparable to the treatment afforded under this
Act.
(3) JOINT ACTION.—This subsection shall be
carried out by the Director of the Office of Person-
nel Management, in consultation with the Executive
Director of the Federal Retirement Thrift Invest-
ment Board and the Commissioner of Social Secu-
rity.
(d) DEFAULT RULE.—In the case of any employee
to whom subsection (b) applies, if the employee is given
written notice in accordance with section 201 as to the
availability of an election under this section, but does not
make any such election within the 6-month period begin-
ning on the date on which such notice is so given, the
option under subsection (b)(2) shall be deemed to have
been elected on the last day of such period.
(e) RETROACTIVE EFFECT.—An election under this
section (including an election by default, and an election
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to remain covered by the retirement system by which the
electing individual is covered as of the date of the election)
shall be effective retroactive to the effective date of the
retirement coverage error (as referred to in subsection (a))
to which such election relates.
SEC. 112. EFFECT OF AN ELECTION TO BECOME FERS COV-
ERED TO CORRECT THE RETIREMENT COV-
ERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 111(a)(1) who elects the option under section
111(b)(1)(A).
(b) MAKEUP CONTRIBUTIONS TO THE CSRDF.—
Upon notification that an employee has made an election
under this section, the agency in or under which such em-
ployee is employed shall promptly pay to the CSRDF, in
a lump sum, an amount equal to the sum of—
(1) the amount that should have been deducted
and withheld from the pay of the employee for the
period of erroneous coverage involved under section
8422 of title 5, United States Code; and
(2) the Government contributions that should
have been paid for the period of erroneous coverage
involved under section 8423 of title 5, United States
Code.
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(c) MAKEUP CONTRIBUTIONS TO THE THRIFT SAV-
INGS FUND.—Section 102(c) shall apply in the case of an
employee described in subsection (a).
SEC. 113. EFFECT OF AN ELECTION TO BECOME CSRS-OFF-
SET COVERED TO CORRECT THE RETIRE-
MENT COVERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 111(a)(2) who elects the option under section
111(b)(1)(B).
(b) MAKEUP CONTRIBUTIONS TO THE CSRDF.—
Upon notification that an employee has made an election
under this section, the agency in or under which such em-
ployee is employed shall promptly pay to the CSRDF, in
a lump sum, an amount equal to the sum of—
(1) the amount that should have been deducted
and withheld from the pay of the employee for the
period of erroneous coverage involved under section
8334 of title 5, United States Code; and
(2) the Government contributions that should
have been paid under section 8334 of title 5, United
States Code, for the period of erroneous coverage in-
volved.
(c) MAKEUP CONTRIBUTIONS TO THE THRIFT SAV-
INGS FUND.—
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(1) IN GENERAL.—Makeup contributions to the
Thrift Savings Fund shall be made by the employing
agency in the same manner as described in section
102(c) (but disregarding subparagraphs (B) and (C)
of paragraph (1) thereof, and the other provisions of
section 102(c) to the extent that they relate to those
subparagraphs).
(2) APPROPRIATE PERCENTAGES, ETC. TO BE
USED.—For purposes of paragraph (1), section
102(c) shall be applied—
(A) by substituting ‘‘section 8351(b)’’ for
‘‘section 8432(a)’’ and by substituting ‘‘CSRS
covered and CSRS-Offset covered’’ for ‘‘FERS
covered’’ in paragraph (2)(B)(i) thereof; and
(B) by substituting ‘‘section 8351(b)(2)’’
for ‘‘section 8432(a)’’ in paragraph (2)(C)(ii)
thereof.
SEC. 114. EFFECT OF AN ELECTION TO BECOME CSRS COV-
ERED TO CORRECT THE RETIREMENT COV-
ERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 111(a)(3) who elects the option under section
111(b)(1)(C).
(b) MAKEUP CONTRIBUTIONS TO THE CSRDF.—
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(1) IN GENERAL.—Upon notification that an
employee has made an election under this section,
the agency in or under which such employee is em-
ployed shall promptly pay to the CSRDF, in a lump
sum, an amount equal to the sum of—
(A) the amount that should have been de-
ducted and withheld from the pay of the em-
ployee for the period of erroneous coverage in-
volved under section 8334 of title 5, United
States Code; and
(B) the Government contributions that
should have been paid under such section for
the period of erroneous coverage involved.
(2) AGENCY TO BE REIMBURSED FOR CERTAIN
AMOUNTS.—
(A) IN GENERAL.—The employee for whom
the payment under paragraph (1) is made shall
repay to the agency (referred to in paragraph
(1)) an amount equal to the OASDI employee
taxes refunded or refundable to such employee
for any portion of the period of erroneous cov-
erage involved (computed in such manner as the
Director of the Office of Personnel Manage-
ment, with the concurrence of the Secretary of
the Treasury, shall by regulation prescribe), not
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to exceed the amount described in paragraph
(1)(A).
(B) RIGHT OF RECOVERY; WAIVER.—If the
employee fails to repay the amount required
under subparagraph (A), a sum equal to the
amount outstanding is recoverable by the Gov-
ernment from the employee (or the employee’s
estate, if applicable) by—
(i) setoff against accrued pay, com-
pensation, amount of retirement credit, or
another amount due the employee from the
Government; and
(ii) such other method as is provided
by law for the recovery of amounts owing
to the Government.
The head of the agency concerned may waive,
in whole or in part, a right of recovery under
this paragraph if it is shown that recovery
would be against equity and good conscience or
against the public interest.
(C) TREATMENT OF AMOUNTS REPAID OR
RECOVERED.—Any amount repaid by, or recov-
ered from, an individual (or an estate) under
this paragraph shall be credited to the appro-
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priation account from which the amount in-
volved was originally paid.
(c) MAKEUP CONTRIBUTIONS TO THE THRIFT SAV-
INGS FUND.—In the case of an employee described in sub-
section (a), makeup contributions to the Thrift Savings
Fund shall be made in the same manner as described in
section 113(c).
Subtitle C—Employee Who Should
Have Been Social Security-Only
Covered, But Who Was Erro-
neously FERS Covered, CSRS-
Offset Covered, or CSRS Cov-
ered Instead
SEC. 121. UNCORRECTED ERROR: EMPLOYEE WHO SHOULD
BE SOCIAL SECURITY-ONLY COVERED, BUT
WHO IS ERRONEOUSLY FERS COVERED IN-
STEAD.
(a) IN GENERAL.—Except as provided in section 125,
this section shall apply in the case of any employee who
should be Social Security-Only covered but, as a result of
a retirement coverage error, is FERS covered instead.
(b) AUTOMATIC EXCLUSION FROM FERS.—An em-
ployee described in subsection (a) shall not, by reason of
the retirement coverage error described in subsection (a),
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be eligible to be treated as an individual who is FERS
covered.
(c) DISPOSITION OF EMPLOYEE CONTRIBUTIONS TO
THE CSRDF.—There shall be paid to the employee, from
the CSRDF, any lump-sum credit to which such employee
would be entitled under section 8424 of title 5, United
States Code, to the extent attributable to the period of
erroneous coverage involved.
(d) DISPOSITION OF TSP CONTRIBUTIONS.—
(1) GOVERNMENT
CONTRIBUTIONS.—All Gov-
ernment contributions made on behalf of the em-
ployee to the Thrift Savings Fund that are attrib-
utable to the period of erroneous coverage involved
(including any earnings thereon) shall be forfeited in
the same manner as described in section 105(c).
(2) 
EMPLOYEE
CONTRIBUTIONS.—Notwith-
standing any other provision of this section or any
other provision of law, any contributions made by
the employee to the Thrift Savings Fund during the
period of erroneous coverage involved (including any
earnings thereon) shall be treated as if such em-
ployee had then been correctly covered.
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SEC. 122. UNCORRECTED ERROR: EMPLOYEE WHO SHOULD
BE SOCIAL SECURITY-ONLY COVERED, BUT
WHO IS ERRONEOUSLY CSRS-OFFSET COV-
ERED INSTEAD.
(a) IN GENERAL.—Except as provided in section 125,
this section shall apply in the case of any employee who
should be Social Security-Only covered but, as a result of
a retirement coverage error, is CSRS-Offset covered in-
stead.
(b) AUTOMATIC EXCLUSION FROM CSRS-OFFSET.—
An employee described in subsection (a) shall not, by rea-
son of the retirement coverage error described in sub-
section (a), be eligible to be treated as an individual who
is CSRS-Offset covered.
(c) DISPOSITION OF EMPLOYEE CONTRIBUTIONS TO
THE CSRDF.—There shall be paid to the employee, from
the CSRDF, the lump-sum credit to which such employee
would be entitled under section 8342 of title 5, United
States Code, to the extent attributable to the period of
erroneous coverage involved.
(d) DISPOSITION OF TSP CONTRIBUTIONS.—In the
case of an employee described in subsection (a), section
121(d)(2) shall apply.
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SEC. 123. UNCORRECTED ERROR: EMPLOYEE WHO SHOULD
BE SOCIAL SECURITY-ONLY COVERED, BUT
WHO IS ERRONEOUSLY CSRS COVERED IN-
STEAD.
(a) IN GENERAL.—Except as provided in section 125,
this section shall apply in the case of any employee who
should be Social Security-Only covered but, as a result of
a retirement coverage error, is CSRS covered instead.
(b) AUTOMATIC EXCLUSION FROM CSRS.—An em-
ployee described in subsection (a) shall not, by reason of
the retirement coverage error described in subsection (a),
be eligible to be treated as an individual who is CSRS cov-
ered.
(c) DISPOSITION
OF
CONTRIBUTIONS
TO
THE
CSRDF.—
(1) IN GENERAL.—In the case of an employee
described in subsection (a), section 102(b) shall
apply.
(2) IRRELEVANT
PROVISIONS
TO
BE
DIS-
REGARDED.—For purposes of paragraph (1), section
102(b) shall be applied disregarding the provisions
of paragraphs (1)(B)(ii)(II) (to the extent they re-
late to amounts that should have been deducted
under section 8422 of title 5, United States Code)
and (2)(B)(ii)(II) thereof.
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(d) DISPOSITION OF TSP CONTRIBUTIONS.—In the
case of an employee described in subsection (a), section
121(d)(2) shall apply.
SEC. 124. CORRECTED ERROR: SITUATIONS UNDER SEC-
TIONS 121 THROUGH 123.
(a) IN GENERAL.—Not later than 6 months after the
date of enactment of this Act, there shall be submitted
to the Congress a proposal (including any necessary draft
legislation) to carry out the policy described in subsection
(b).
(b) POLICY.—Under the proposal, any employee with
respect to whom the applicable retirement coverage error
(referred to in section 121, 122, or 123, as applicable)
has already been corrected, but under terms less advan-
tageous to the employee than would have been the case
under this Act, shall be afforded a reasonable opportunity
to obtain treatment comparable to the treatment afforded
under this Act.
(c) JOINT ACTION.—This section shall be carried out
by the Director of the Office of Personnel Management,
in consultation with the Executive Director of the Federal
Retirement Thrift Investment Board and the Commis-
sioner of Social Security.
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SEC. 125. VESTED EMPLOYEES EXCEPTED FROM AUTO-
MATIC EXCLUSION.
(a) IN GENERAL.—Nothing in this subtitle shall, by
reason of any retirement coverage error, result in the auto-
matic exclusion of any employee from FERS, CSRS-Off-
set, or CSRS if, as of the date on which notice of such
error is given (in accordance with section 201), such em-
ployee’s rights have vested under the retirement system
involved.
(b) VESTING.—For purposes of this section, vesting
of rights shall be considered to have occurred if the em-
ployee has (by the date as of which the determination is
made) completed at least 5 years of civilian service, taking
into account only creditable service under section 8332 or
8411 of title 5, United States Code.
(c) ELECTIONS.—
(1) ERRONEOUSLY FERS COVERED.—Any em-
ployee affected by an error described in section 121
who is determined under this section to satisfy sub-
section (b) may elect—
(A) to be treated in accordance with sec-
tion 121; or
(B) to remain FERS covered.
(2) OTHER CASES.—Any employee affected by
an error described in section 122 or 123 who is de-
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termined under this section to satisfy subsection (b)
may elect—
(A) to be treated in accordance with sec-
tion 122 or 123 (as applicable); or
(B) to remain (or instead become) CSRS-
Offset covered.
(d) EFFECT OF AN ELECTION TO BE TRANSFERRED
FROM CSRS TO CSRS-OFFSET.—In the case of an em-
ployee affected by an error described in section 123 who
elects the option under subsection (c)(2)(B), the effect of
the election shall be the same as described in section 104.
(e) DEFAULT RULE.—If the employee does not make
any election within the 6-month period beginning on the
date on which the appropriate notice is given to such em-
ployee, the option under paragraph (1)(B) or (2)(B) of
subsection (c), as applicable, shall be deemed to have been
elected as of the last day of such period. Nothing in this
section shall be considered to afford an employee the op-
tion of becoming or remaining CSRS covered.
(f) RETROACTIVE EFFECT.—An election under this
section (including an election by default, and an election
to remain covered by the retirement system by which the
electing individual is covered as of the date of the election)
shall be effective retroactive to the effective date of the
retirement coverage error to which the election relates.
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(g) SPECIAL RULE IN CASE OF DISABILITY.—If, as
of the date referred to in subsection (a), the employee is
entitled to receive an annuity under chapter 83 or 84 of
title 5, United States Code, based on disability, or com-
pensation under subchapter I of chapter 81 of such title
for injury to, or disability of, such employee, subsections
(a) and (b) shall be applied by substituting (for the date
that would otherwise apply) the date as of which entitle-
ment to such annuity or compensation terminates (if at
all).
(h) NOTIFICATION.—Any notice under section 201
shall include such additional information or other modi-
fications as the Office of Personnel Management may by
regulation prescribe in connection with the situations cov-
ered by this subtitle, particularly as they relate to the con-
sequences of being vested or not being vested.
Subtitle D—Employee Who Should
Have Been CSRS Covered or
CSRS-Offset Covered, But Who
Was Erroneously FERS Covered
Instead
SEC. 131. ELECTIONS.
(a) APPLICABILITY.—This subtitle shall apply in the
case of any employee who—
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(1) should be (or should have been) CSRS cov-
ered but, as a result of a retirement coverage error,
is (or was) FERS covered instead; or
(2) should be (or should have been) CSRS-Off-
set covered but, as a result of a retirement coverage
error, is (or was) FERS covered instead.
(b) UNCORRECTED ERROR.—If, at the time of mak-
ing an election under this section, the retirement coverage
error described in paragraph (1) or (2) of subsection (a)
(as applicable) has not been corrected, the employee af-
fected by such error may elect—
(1)(A) in the case of an error described in sub-
section (a)(1), to be CSRS covered instead; or
(B) in the case of an error described in sub-
section (a)(2), to be CSRS-Offset covered instead; or
(2) to remain FERS covered.
(c) CORRECTED ERROR.—If, at the time of making
an election under this section, the retirement coverage
error described in paragraph (1) or (2) of subsection (a)
(as applicable) has been corrected, the employee affected
by such error may elect—
(1) to be FERS covered instead; or
(2)(A) in the case of an error described in sub-
section (a)(1), to remain CSRS covered; or
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(B) in the case of an error described in sub-
section (a)(2), to remain CSRS-Offset covered.
(d) DEFAULT RULE.—If the employee is given writ-
ten notice in accordance with section 201 as to the avail-
ability of an election under this section, but does not make
any such election within the 6-month period beginning on
the date on which such notice is so given, the option under
subsection (b)(2) or (c)(2), as applicable, shall be deemed
to have been elected on the last day of such period.
(e) RETROACTIVE EFFECT.—An election under this
section (including an election by default, and an election
to remain covered by the retirement system by which the
electing individual is covered as of the date of the election)
shall be effective retroactive to the effective date of the
retirement coverage error (as referred to in subsection (a))
to which such election relates.
SEC. 132. EFFECT OF AN ELECTION TO BE TRANSFERRED
FROM FERS TO CSRS TO CORRECT A RETIRE-
MENT COVERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 131(a)(1) who elects the option available to such em-
ployee under section 131(b)(1)(A).
(b) MAKEUP CONTRIBUTIONS TO THE CSRDF.—
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(1) IN GENERAL.—Upon notification that an
employee has made an election under this section,
the agency in or under which such employee is em-
ployed shall promptly pay to the CSRDF, in a lump
sum, an amount equal to the excess of—
(A) the amount by which—
(i) the amount that should have been
deducted and withheld from the pay of the
employee for the period of erroneous cov-
erage involved under section 8334 of title
5, United States Code, exceeds
(ii) the amount that was actually de-
ducted and withheld from the pay of the
employee for the period of erroneous cov-
erage involved under section 8422 of such
title (and not refunded), over
(B) the amount by which—
(i) the amount of the Government
contributions actually made under section
8423 of such title with respect to the em-
ployee for the period of erroneous coverage
involved, exceeds
(ii) the amount of the Government
contributions that should have been made
under section 8334 of such title with re-
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spect to the employee for the period of er-
roneous coverage involved.
(2) AGENCY TO BE REIMBURSED FOR CERTAIN
AMOUNTS.—
(A) IN GENERAL.—The employee for whom
the payment under paragraph (1) is made shall
repay to the agency (referred to in paragraph
(1)) an amount equal to the OASDI employee
taxes refunded or refundable to such employee
for any portion of the period of erroneous cov-
erage involved (computed in such manner as the
Director of the Office of Personnel Manage-
ment, with the concurrence of the Commis-
sioner of Social Security, shall by regulation
prescribe), not to exceed the amount described
in paragraph (1)(A).
(B) RIGHT OF RECOVERY; WAIVER.—If the
employee fails to repay the amount required
under subparagraph (A), a sum equal to the
amount outstanding is recoverable by the Gov-
ernment from the employee (or the employee’s
estate, if applicable) by—
(i) setoff against accrued pay, com-
pensation, amount of retirement credit, or
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another amount due the employee from the
Government; and
(ii) such other method as is provided
by law for the recovery of amounts owing
to the Government.
The head of the agency concerned may waive,
in whole or in part, a right of recovery under
this paragraph if it is shown that recovery
would be against equity and good conscience or
against the public interest.
(C) TREATMENT OF AMOUNTS REPAID OR
RECOVERED.—Any amount repaid by, or recov-
ered from, an individual (or an estate) under
this paragraph shall be credited to the appro-
priation, fund, or account from which the
amount involved was originally paid.
(c) DISPOSITION
OF
EXCESS
TSP CONTRIBU-
TIONS.—Section 105(c) shall apply in the case of an em-
ployee described in subsection (a).
SEC. 133. EFFECT OF AN ELECTION TO BE TRANSFERRED
FROM FERS TO CSRS-OFFSET TO CORRECT A
RETIREMENT COVERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
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tion 131(a)(2) who elects the option available to such em-
ployee under section 131(b)(1)(B).
(b) EFFECT.—The effect of an election referred to
in subsection (a) shall be substantially the same as that
described in section 105.
SEC. 134. EFFECT OF AN ELECTION TO BE RESTORED TO
FERS AFTER HAVING BEEN CORRECTED TO
CSRS.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 131(a)(1) who elects the option under section
131(c)(1).
(b) EFFECT.—The effect of an election referred to
in subsection (a) shall be substantially the same as that
described in section 102.
SEC. 135. EFFECT OF AN ELECTION TO BE RESTORED TO
FERS AFTER HAVING BEEN CORRECTED TO
CSRS-OFFSET.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 131(a)(2) who elects the option under section
131(c)(1).
(b) EFFECT.—The effect of an election referred to
in subsection (a) shall be substantially the same as that
described in section 103.
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SEC. 136. DISQUALIFICATION OF CERTAIN INDIVIDUALS TO
WHOM SAME ELECTION WAS PREVIOUSLY
AVAILABLE.
Notwithstanding any other provision of this subtitle,
an election under this subtitle shall not be available in the
case of any individual to whom an election under section
846.204 of title 5 of the Code of Federal Regulations (as
in effect as of January 1, 1997) was made available in
connection with the same error pursuant to notification
provided in accordance with such section.
Subtitle E—Employee Who Should
Have Been CSRS-Offset Cov-
ered, But Who Was Erroneously
CSRS Covered Instead
SEC. 141. AUTOMATIC TRANSFER TO CSRS-OFFSET.
(a) APPLICABILITY.—This subtitle shall apply in the
case of any employee who should be (or should have been)
CSRS-Offset covered but, as a result of a retirement cov-
erage error, is (or was) CSRS covered instead.
(b) UNCORRECTED ERROR.—If the error has not
been corrected, the employee shall be treated in the same
way as if such employee had instead been CSRS-Offset
covered, effective retroactive to the effective date of such
error.
(c) CORRECTED ERROR.—If the error has been cor-
rected, the correction shall (to the extent not already car-
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ried out) be made effective retroactive to the effective date
of such error.
SEC. 142. EFFECT OF TRANSFER.
The effect of a transfer under section 141 shall be
as set forth in regulations which the Office of Personnel
Management shall prescribe consistent with section 104.
Subtitle F—Employee Who Should
Have Been CSRS Covered, But
Who Was Erroneously CSRS-Off-
set Covered Instead
SEC. 151. ELECTIONS.
(a) APPLICABILITY.—This subtitle shall apply in the
case of any employee who should be (or should have been)
CSRS covered but, as a result of a retirement coverage
error, is (or was) CSRS-Offset covered instead.
(b) UNCORRECTED ERROR.—If, at the time of mak-
ing an election under this section, the retirement coverage
error described in subsection (a) has not been corrected,
the employee affected by such error may elect—
(1) to be CSRS covered instead; or
(2) to remain CSRS-Offset covered.
(c) CORRECTED ERROR.—If, at the time of making
an election under this section, the retirement coverage
error described in subsection (a) has been corrected, the
employee affected by such error may elect—
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(1) to be CSRS-Offset covered instead; or
(2) to remain CSRS covered.
(d) DEFAULT RULE.—If the employee is given writ-
ten notice in accordance with section 201 as to the avail-
ability of an election under this section, but does not make
any such election within the 6-month period beginning on
the date on which such notice is so given, the option under
subsection (b)(2) or (c)(2), as applicable, shall be deemed
to have been elected on the last day of such period.
(e) RETROACTIVE EFFECT.—An election under this
section (including an election by default, and an election
to remain covered by the retirement system by which the
electing individual is covered as of the date of the election)
shall be effective retroactive to the effective date of the
retirement coverage error (as referred to in subsection (a))
to which such election relates.
SEC. 152. EFFECT OF AN ELECTION TO BE TRANSFERRED
FROM CSRS-OFFSET TO CSRS TO CORRECT
THE RETIREMENT COVERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 151(a) who elects the option available to such em-
ployee under section 151(b)(1).
(b) MAKEUP CONTRIBUTIONS TO THE CSRDF.—
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(1) IN GENERAL.—Upon notification that an
employee has made an election under this section,
the agency in or under which such employee is em-
ployed shall promptly pay to the CSRDF, in a lump
sum, an amount equal to the amount by which—
(A) the amount that should have been de-
ducted and withheld from the pay of the em-
ployee for the period of erroneous coverage in-
volved under section 8334 of title 5, United
States Code (by virtue of being CSRS covered),
exceeds
(B) any amounts actually deducted and
withheld from the pay of the employee for the
period of erroneous coverage involved under
such section (pursuant to CSRS-Offset cov-
erage).
(2) AGENCY TO BE REIMBURSED FOR CERTAIN
AMOUNTS.—
(A) IN GENERAL.—The employee for whom
the payment under paragraph (1) is made shall
repay to the agency (referred to in paragraph
(1)) an amount equal to the OASDI employee
taxes refunded or refundable to such employee
for any portion of the period of erroneous cov-
erage involved (computed in such manner as the
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Director of the Office of Personnel Manage-
ment, with the concurrence of the Commis-
sioner of Social Security, shall by regulation
prescribe), not to exceed the amount described
in paragraph (1)(A).
(B) RIGHT OF RECOVERY; WAIVER.—If the
employee fails to repay the amount required
under subparagraph (A), a sum equal to the
amount outstanding is recoverable by the Gov-
ernment from the employee (or the employee’s
estate, if applicable) by—
(i) setoff against accrued pay, com-
pensation, amount of retirement credit, or
another amount due the employee from the
Government; and
(ii) such other method as is provided
by law for the recovery of amounts owing
to the Government.
The head of the agency concerned may waive,
in whole or in part, a right of recovery under
this paragraph if it is shown that recovery
would be against equity and good conscience or
against the public interest.
(C) TREATMENT OF AMOUNTS REPAID OR
RECOVERED.—Any amount repaid by, or recov-
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ered from, an individual (or an estate) under
this paragraph shall be credited to the appro-
priation, fund, or account from which the
amount involved was originally paid.
(3) DEPOSIT TO BE BASED ON AMOUNT OF RE-
FUND ACTUALLY RECEIVED.—For purposes of ap-
plying sections 8334(d)(1) and 8339(i) of title 5,
United States Code, in the case of an employee de-
scribed in subsection (a) who has received a refund
of deductions that are attributable to a period when
the employee was erroneously CSRS-Offset covered,
nothing in either of those sections shall be consid-
ered to require that, in order to receive credit for
that period as a CSRS-covered employee, a deposit
be made in excess of the refund actually received for
such period, plus interest.
SEC. 153. EFFECT OF AN ELECTION TO BE RESTORED TO
CSRS-OFFSET AFTER HAVING BEEN COR-
RECTED TO CSRS.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 151(a) who elects the option available to such em-
ployee under section 151(c)(1).
(b) DISPOSITION
OF
CONTRIBUTIONS
TO
THE
CSRDF.—In the case of an employee described in sub-
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section (a), the provisions of section 102(b) shall apply,
except that, in applying such provisions—
(1) ‘‘the applicable provisions of section 8334’’
shall be substituted for ‘‘section 8422’’ in paragraph
(1)(B)(ii)(II) thereof; and
(2) ‘‘the applicable provisions of section 8334’’
shall be substituted for ‘‘section 8423’’ in paragraph
(2)(B)(ii)(II) thereof.
Subtitle G—Additional Provisions
Relating to Government Agencies
SEC. 161. REPAYMENT REQUIRED IN CERTAIN SITUATIONS.
(a) IN GENERAL.—An individual who previously re-
ceived a payment ordered by a court or provided as a set-
tlement of claim for losses resulting from a retirement cov-
erage error shall not be entitled to make an election under
this Act unless repayment of the amount so received by
such individual is waived in whole or in part by the Office
of Personnel Management, and any amount not waived is
repaid.
(b) REGULATIONS.—Any repayment under this sec-
tion shall be made in accordance with regulations pre-
scribed by the Office.
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SEC. 162. EQUITABLE SHARING OF AMOUNTS PAYABLE
FROM THE GOVERNMENT IF MORE THAN ONE
AGENCY INVOLVED.
The Office of Personnel Management shall by regula-
tion prescribe rules under which, in the case of an em-
ployee who has been employed in or under more than 1
agency since the date of the retirement coverage error in-
volved (and before its rectification under this Act), any
contributions or other amounts required to be paid from
the then current employing agency (other than lost earn-
ings under section 163(a)(2)) shall be equitably allocated
between or among the appropriate agencies.
SEC. 163. PROVISIONS RELATING TO THE ORIGINAL RE-
SPONSIBLE AGENCY.
(a) OBLIGATIONS OF THE ORIGINAL RESPONSIBLE
AGENCY.—
(1) EXPENSES
FOR
SERVICES
OF
FINANCIAL
ADVISOR.—The Office of Personnel Management
shall by regulation prescribe rules under which, in
the case of any employee eligible to make an election
under this Act, the original responsible agency (as
determined under succeeding provisions of this sec-
tion) shall pay (or make reimbursement for) any
reasonable expenses incurred by such employee for
services received from any licensed financial or legal
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consultant or advisor in connection with such elec-
tion.
(2) SPECIAL RULE.—Such regulations shall also
include provisions to ensure that, to the extent lost
earnings under the Thrift Savings Fund are involved
in connection with a particular error, the original re-
sponsible agency shall pay (or reimburse any other
agency that pays) any amounts to the Thrift Sav-
ings Fund representing lost earnings with respect to
such error.
(b) ORIGINAL RESPONSIBLE AGENCY DEFINED.—
For purposes of this Act, the term ‘‘original responsible
agency’’, with respect to a retirement coverage error af-
fecting an employee, means—
(1) except in the situation described in para-
graph (2), the agency determined by the Office of
Personnel Management to have made the initial re-
tirement coverage error (including one made before
January 1, 1984); or
(2) if the error is attributable, in whole or in
part, to an erroneous regulation promulgated by the
Office of Personnel Management, such Office.
(c) PROCEDURES FOR IDENTIFYING THE ORIGINAL
RESPONSIBLE AGENCY.—
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(1) IN GENERAL.—For purposes of this section,
the original responsible agency, in any situation to
which this section applies, shall be identified by the
Office of Personnel Management in accordance with
regulations which the Office shall prescribe.
(2) FINALITY.—A determination made by the
Office under this subsection shall be final and not
subject to any review.
(d) IF ORIGINAL RESPONSIBLE AGENCY NO LONGER
EXISTS.—If the agency which (before the application of
this subsection) is identified as the original responsible
agency no longer exists (whether because of a reorganiza-
tion or otherwise)—
(1) the successor agency (as determined under
regulations prescribed by the Office) shall be treated
as the original responsible agency; or
(2) if none, this section shall be applied by sub-
stituting the CSRDF for the original responsible
agency.
(e) SOURCE OF PAYMENTS IF ERROR DUE TO ERRO-
NEOUS OPM REGULATIONS.—In any case in which the
Office of Personnel Management is the original respon-
sible agency by reason of subsection (b)(2), any amounts
payable from the Office under this section shall be payable
from the CSRDF.
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TITLE II—GENERAL PROVISIONS
SEC. 201. IDENTIFICATION AND NOTIFICATION REQUIRE-
MENTS.
(a) IN GENERAL.—The Office of Personnel Manage-
ment shall prescribe regulations under which Government
agencies shall take such measures as may be necessary
to ensure that all individuals who are (or have been) af-
fected by a retirement coverage error giving rise to any
election or automatic change in retirement coverage under
this Act shall be promptly identified and notified in ac-
cordance with this section.
(b) MATTER TO BE INCLUDED IN NOTICE TO INDI-
VIDUALS.—Any notice furnished under this section shall
be made in writing and shall include at least the following:
(1) DESCRIPTION OF ERROR.—A description of
the error involved, including a clear and concise ex-
planation as to why the original retirement coverage
determination was erroneous, citations to (and a
summary description of) the pertinent provisions of
law, and how that determination should instead have
been made.
(2) METHOD
FOR
RECTIFICATION.—How the
error is to be rectified under this Act, including
whether rectification will be achieved through an
automatic change in retirement coverage (and, if so,
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the time, form, and manner in which that change
will be effected) or an election.
(3) ELECTION PROCEDURES, ETC.—If an elec-
tion is provided under this Act, all relevant informa-
tion as to how such an election may be made, the
options available, the differences between those re-
spective options (as further specified in succeeding
provisions of this subsection), and the consequences
of failing to make a timely election.
(4) ACCRUED BENEFITS, ETC.—With respect to
the (or each) retirement system by which the indi-
vidual is then covered (disregarding the Thrift Sav-
ings Plan), and to the extent applicable:
(A) A brief summary of any benefits ac-
crued.
(B) The amount of employee contributions
made to date and the effect of any applicable
disposition rules relating thereto (including pro-
visions relating to excess amounts or shortfalls).
(C) The amount of any Government con-
tributions made to date and the effect of any
applicable disposition rules relating thereto (in-
cluding provisions relating to excess amounts or
shortfalls).
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(5) THRIFT SAVINGS FUND.—With respect to
the Thrift Savings Fund, the balance that then is
(or would be) credited to the individual’s account de-
pending on the option chosen, with any such balance
to be shown both in the aggregate and broken down
by—
(A) individual contributions;
(B) automatic (1 percent) Government
contributions; and
(C) matching Government contributions,
including lost earnings on each and the extent to
which any makeup contributions or forfeitures would
be involved.
(6) OASDI BENEFITS.—Such information re-
garding benefits under title II of the Social Security
Act as the Commissioner of Social Security consid-
ers appropriate.
(7) OTHER INFORMATION.—Any other informa-
tion that the Director of the Office of Personnel
Management may by regulation prescribe after con-
sultation with the Executive Director of the Federal
Retirement Thrift Investment Board and such other
agency heads as the Director considers appropriate,
including any appeal rights available to the individ-
ual.
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(c) COMPARISONS.—Any amounts required to be in-
cluded under subsection (b)(4) shall, with respect to the
respective retirement systems involved, be determined—
(1) as of the date the retirement coverage error
was corrected (if applicable);
(2) as of the then most recent date for which
those benefits and amounts are ascertainable, as-
suming no change in retirement coverage; and
(3) as of the then most recent date for which
those benefits and amounts are ascertainable, as-
suming the alternative option is chosen.
(d) PAST ERRORS.—All measures required under this
section shall, with respect to errors preceding the date
specified in section 206(e) (relating to the effective date
for all regulations prescribed under this Act), be completed
no later than December 31, 2001.
SEC. 202. INDIVIDUAL APPEAL RIGHTS.
(a) IN GENERAL.—An individual aggrieved by a final
determination under this Act shall be entitled to appeal
such determination to the Merit Systems Protection Board
under section 7701 of title 5, United States Code.
(b) NOTIFICATION APPEALS.—The Office of Person-
nel Management shall by regulation establish procedures
under which individuals may bring an appeal to the Office
with respect to any failure to have been properly notified
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in accordance with section 201. A final determination
under this subsection shall be appealable under subsection
(a).
SEC. 203. INFORMATION TO BE FURNISHED BY GOVERN-
MENT AGENCIES TO AUTHORITIES ADMIN-
ISTERING THIS ACT.
(a) APPLICABILITY.—The authorities identified in
this subsection are:
(1) The Director of the Office of Personnel
Management.
(2) The Commissioner of Social Security.
(3) The Executive Director of the Federal Re-
tirement Thrift Investment Board.
(b) AUTHORITY TO OBTAIN INFORMATION.—Each
authority identified in subsection (a) may secure directly
from any department or agency of the United States infor-
mation necessary to enable such authority to carry out its
responsibilities under this Act. Upon request of the au-
thority involved, the head of the department or agency in-
volved shall furnish that information to the requesting au-
thority.
(c) LIMITATION; SAFEGUARDS.—Each of the respec-
tive authorities under subsection (a)—
(1) shall request only such information as that
authority considers necessary; and
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(2) shall establish, by regulation or otherwise,
appropriate safeguards to ensure that any informa-
tion obtained under this section shall be used only
for the purpose authorized.
SEC. 204. SOCIAL SECURITY RECORDS.
Notwithstanding any limitations in section 205 of the
Social Security Act regarding the modification of wage
records maintained by the Commissioner of Social Secu-
rity for purposes of title II of such Act, the Commissioner
of Social Security shall modify the wage record of each
employee affected by a retirement coverage error to
change, add, or delete any entry regarding service as an
employee to the extent necessary to carry out the purposes
of this Act or the Social Security Act.
SEC. 205. CONFORMING AMENDMENTS RESPECTING SO-
CIAL 
SECURITY 
COVERAGE 
AND 
OASDI
TAXES.
(a) 
SOCIAL
SECURITY
COVERAGE.—Section
210(a)(5)(H) of the Social Security Act (42 U.S.C.
410(a)(5)(H)) is amended—
(1) in clause (i) by striking ‘‘or’’ at the end;
(2) in clause (ii) by striking the semicolon and
inserting ‘‘, or’’; and
(3) by adding at the end the following:
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‘‘(iii)(I) described in section 111(a)(3)
of the Federal Retirement Coverage Cor-
rections Act, on or after the effective date
of an election (or deemed election) by such
individual under section 111(b)(2) of such
Act;
‘‘(II) described in section 131(a)(1) of
such Act, on or after the effective date of
an election (or deemed election) by such in-
dividual under subsection (b)(2) or (c)(1)
of section 131 of such Act; or
‘‘(III) described in section 151(a) of
such Act, on or after the effective date of
an election (or deemed election) by such in-
dividual under subsection (b)(2) or (c)(1)
of section 151 of such Act;’’.
(b) OASDI TAXES.—Section 3121(b)(5)(H) of the
Internal Revenue Code of 1986 is amended—
(1) in clause (i) by striking ‘‘or’’ at the end;
(2) in clause (ii) by striking the semicolon and
inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(iii)(I) described in section 111(a)(3)
of the Federal Retirement Coverage Cor-
rections Act, on or after the effective date