(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 em-
ployer tax.
(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 Disability Insur-
ance).
(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 Disability Insur-
ance).
(13) OASDI TRUST FUNDS.—The term ‘‘OASDI
trust funds’’ means the Federal Old-Age and Sur-
vivors Insurance Trust Fund and the Federal Disabil-
ity 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 pur-
suant to such error (or would have been in effect, but
for such error).
(15) RETIREMENT COVERAGE DETERMINATION.—
The term ‘‘retirement coverage determination’’ means
a determination by an employee or agent of the Gov-
ernment as to whether a particular type of Govern-
ment service is CSRS covered, CSRS-Offset covered,
FERS covered, or Social Security-Only covered.
(16) RETIREMENT COVERAGE ERROR.—The term
‘‘retirement coverage error’’ means a retirement cov-
erage determination that, as a result of any error,
misrepresentation, or inaction on the part of an em-
ployee or agent of the Government (including an error
as described in section 163(b)(2)), causes an individ-
ual erroneously to be enrolled or not enrolled in a re-
tirement 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 estab-
lished under section 8437 of title 5, United States
Code.
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 respect to
any individual in connection with any period beginning
before the first day of the first applicable pay period begin-
ning 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 sub-
ject to any retirement system for the sole purpose of correct-
ing 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 author-
ized by statute.
(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 pursuant
to a voluntary election made other than under this
Act.
SEC. 5. IRREVOCABILITY OF ELECTIONS.
Any election made (or deemed to have been made) by
an employee or any other individual under this Act 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 Cov-
ered or CSRS-Offset Covered In-
stead
SEC. 101. 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) 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 making
an election under this section, the retirement coverage error
described in paragraph (1) or (2) of subsection (a) (as ap-
plicable) has not been corrected, the employee affected 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 de-
scribed in paragraph (1) or (2) of subsection (a) (as appli-
cable) 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 writ-
ten 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
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 sec-
tion shall be considered to afford an employee the op-
tion 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 retire-
ment 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.—
(A) TRANSFER TO OASDI TRUST FUNDS.—
There shall be transferred from the CSRDF to
the OASDI trust funds an amount—
(i) equal to the amount of the OASDI
employee tax that should have been deducted
and withheld from the Federal wages of the
employee for the period of erroneous cov-
erage involved; but
(ii) not to exceed the amount of the em-
ployee’s lump-sum credit attributable to the
period of erroneous coverage involved.
(B) RULE IF THERE ARE EXCESS CSRDF
CONTRIBUTIONS.—If the amount described in
subparagraph (A)(ii) exceeds the sum of—
(i) the amount described in subpara-
graph (A)(i), plus
(ii) the amount that should have been
deducted under section 8422 of title 5,
United States Code, from pay of such em-
ployee for the period of erroneous coverage
involved,
the excess shall be refunded to the employee.
(C) RULE IF CSRDF CONTRIBUTIONS ARE
INSUFFICIENT.—If the amount described in sub-
paragraph (A)(ii) is less than the sum of the re-
spective amounts described in clauses (i) and (ii)
of subparagraph (B), the shortfall shall be made
up (in such manner as the Director of the Office
of Personnel Management, with the concurrence
of the Commissioner of Social Security, shall by
regulation prescribe) by the agency in or under
which the employee is then employed, out of
amounts otherwise available in the appropria-
tion, fund, or account from which any OASDI
employer tax or contribution to the CSRDF (as
applicable) may be made.
(D) DEFINITION OF LUMP-SUM CREDIT.—
For purposes of this paragraph, the term ‘‘lump-
sum credit’’ has the meaning given such term by
section 8331 of title 5, United States Code.
(2) GOVERNMENT CONTRIBUTIONS.—
(A) TRANSFER TO OASDI TRUST FUNDS.—
There shall be transferred from the CSRDF to
the OASDI trust funds the amount of the OASDI
employer tax that should have been paid with re-
spect to the employee for the period of erroneous
coverage involved.
(B) RULE IF THERE ARE EXCESS CSRDF
CONTRIBUTIONS.—If the total Government con-
tributions to the CSRDF that were made with
respect to the employee for the period of erro-
neous coverage involved exceed the sum of—
(i) the amount required to be trans-
ferred under subparagraph (A), plus
(ii) the amount that should have been
contributed by the Government under sec-
tion 8423 of title 5, United States Code, for
such employee with respect to such period,
the excess shall be transferred to the agency in or
under which the employee is then employed, to
the credit of the appropriation, fund, or account
from which any Government contributions to the
CSRDF may be made (to remain available until
expended).
(C) RULE IF CSRDF CONTRIBUTIONS ARE
INSUFFICIENT.—If the total Government con-
tributions to the CSRDF that were made with
respect to the employee for the period of erro-
neous coverage involved are less than the sum of
the respective amounts described in clauses (i)
and (ii) of subparagraph (B), the shortfall shall
be made up by the agency in or under which the
employee is then employed, out of amounts other-
wise available in the appropriation, fund, or ac-
count referred to in subparagraph (B) in such
manner as the Director of the Office of Personnel
Management, with the concurrence of the Com-
missioner of Social Security, shall by regulation
prescribe.
(c) MAKEUP CONTRIBUTIONS TO THE THRIFT SAVINGS
FUND.—
(1) IN GENERAL.—An employee to whom this
section applies is entitled to have contributed to the
Thrift Savings Fund on such employee’s behalf, in
addition to any regular employee or Government con-
tributions 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 con-
tributions 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)
through (C), determined in accordance with
paragraph (3).
(2) AMOUNT BASED ON AVERAGE PERCENTAGE
OF PAY CONTRIBUTED BY EMPLOYEES DURING PERIOD
OF ERRONEOUS COVERAGE.—
(A) IN GENERAL.—The amount determined
under this paragraph with respect to an em-
ployee for a period of erroneous coverage shall be
equal to the amount of the contributions such
employee would have made if, during each cal-
endar year in such period, the employee had con-
tributed the percentage of such employee’s basic
pay for such year specified in subparagraph (B)
(determined disregarding any contributions ac-
tually 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 particular
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-time FERS cov-
ered employees who contributed to the
Thrift Savings Fund in such year and
to such year (if any), would cause the total to ex-
ceed—
(i) any limitation under section 415 or
any other provision of the Internal Revenue
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 particu-
lar year, be determined in the same way as if
those amounts had in fact been timely contrib-
uted and allocated among the TSP investment
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 re-
spect to such year.
(B) INVESTMENT FUND ELECTION ATTRIB-
UTED.—For purposes of subparagraph (A)(ii),
the investment fund election attributed to an em-
ployee with respect to a particular year is—
(i) the average percentage allocation of
TSP contributions among the TSP invest-
ment funds from all sources, with respect to
that year, except that the investment fund
election attributed to contributions 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
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 election’’
means a choice by a participant concerning
how contributions to the Thrift Savings
Plan shall be allocated among the TSP in-
vestment 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 employ-
ing agency error (including an error as de-
scribed 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-
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 subpara-
graph (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 agency;
and
(ii) the Board shall, based on the infor-
mation it receives from an agency under
clause (i), determine lost earnings on those
amounts and promptly notify such agency
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, pur-
suant to the election referred to in subsection (a), be-
comes 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 employee
described in subsection (a), the following provisions shall
apply:
(1) Section 102(b) (relating to disposition of con-
tributions to the CSRDF), but disregarding provi-
sions relating to transfers to OASDI trust funds.
(2) Section 102(c) (relating to makeup contribu-
tions 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 RATIFY
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
CON-
TRIBUTIONS TO CSRDF.—For purposes of paragraph
(1), section 102(b) shall be applied by substituting
‘‘the relevant provisions of section 8334(k)’’ for ‘‘sec-
tion 8422’’ and ‘‘section 8423’’.
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 para-
graph (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 there-
of), reduce the respective amounts required by
paragraphs (1)(A)(i) and (2)(A) of section
102(b) accordingly.
(B) APPROPRIATE
PERCENTAGES
TO
BE
USED IN DETERMINING EMPLOYEE AND GOVERN-
MENT
CONTRIBUTIONS
TO
CSRDF.—Substitute
‘‘the relevant provisions of section 8334(k)’’ for
‘‘section 8422’’ and ‘‘section 8423’’.
(C) APPROPRIATE LUMP-SUM CREDIT TO BE
USED.—Substitute ‘‘8401’’ for ‘‘8331’’ in para-
graph (1)(D) thereof.
(D) PROVISIONS TO BE APPLIED WITH RE-
SPECT TO THE TOTAL PERIOD INVOLVED.—Sub-
stitute ‘‘total period involved (as defined by sec-
tion 105)’’ for ‘‘period of erroneous coverage in-
volved’’.
(c) DISPOSITION OF EXCESS TSP CONTRIBUTIONS.—
(1) GOVERNMENT CONTRIBUTIONS.—All Govern-
ment contributions made on behalf of the employee to
the Thrift Savings Fund that are attributable to the
total period involved (including any earnings there-
on) 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 amounts for-
feited 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 applicable pro-
visions 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 re-
tirement coverage error involved and ending on the day be-
fore the date on which the election described in subsection
(a) is made.
Subtitle B—Employee Who Should
Have Been FERS Covered, CSRS-
Offset Covered, or CSRS Cov-
ered, But Who Was Erroneously
Social Security-Only Covered In-
stead
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;
(2) should be (or should have been) CSRS-Offset
covered but, as a result of a retirement coverage error,
is (or was) Social Security-Only covered instead; or
(3) should be (or should have been) CSRS 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 making
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 sub-
mitted to the Congress a proposal (including any nec-
essary draft legislation) to carry out the policy de-
scribed in paragraph (2).
(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 car-
ried out by the Director of the Office of Personnel
Management, in consultation with the Executive Di-
rector of the Federal Retirement Thrift Investment
Board and the Commissioner of Social Security.
(d) DEFAULT RULE.—In the case of any employee to
whom subsection (b) applies, 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) 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 retire-
ment 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 employee
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 pe-
riod 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.
(c) MAKEUP CONTRIBUTIONS TO THE THRIFT SAVINGS
FUND.—Section 102(c) shall apply in the case of an em-
ployee 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 employee
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 pe-
riod 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 SAVINGS
FUND.—
(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)
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 coverage
involved (computed in such manner as the Direc-
tor of the Office of Personnel Management, with
the concurrence of the Secretary of the Treasury,
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 es-
tate, 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-
priation account from which the amount in-
volved was originally paid.
(c) MAKEUP CONTRIBUTIONS TO THE THRIFT SAVINGS
FUND.—In the case of an employee described in subsection
(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 Covered
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),
be eligible to be treated as an individual who is FERS cov-
ered.
(c) 
DISPOSITION
OF
CONTRIBUTIONS
TO
THE
CSRDF.—
(1) EMPLOYEE CONTRIBUTIONS.—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 cov-
erage involved.
(2) GOVERNMENT CONTRIBUTIONS.—There shall
be transferred from the CSRDF to the agency in or
under which the employee is then employed, to the
credit of the appropriation, fund, or account of such
agency from which any Government contributions to
the CSRDF may be made (to remain available until
expended), an amount equal to the Government con-
tributions, attributable to such employee for the pe-
riod of erroneous coverage involved, that were made
under section 8423 of title 5, United States Code.
(d) DISPOSITION OF TSP CONTRIBUTIONS.—
(1) GOVERNMENT CONTRIBUTIONS.—All Govern-
ment contributions made on behalf of the employee to
the Thrift Savings Fund that are attributable to the
period of erroneous coverage involved (including any
earnings thereon) shall be forfeited in the same man-
ner as described in section 105(c).
(2) EMPLOYEE CONTRIBUTIONS.—Notwithstand-
ing any other provision of this section or any other
provision of law, any contributions made by the em-
ployee to the Thrift Savings Fund during the period
of erroneous coverage involved (including any earn-
ings thereon) shall be treated as if such employee had
then been correctly covered.
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 instead.
(b) AUTOMATIC EXCLUSION FROM CSRS-OFFSET.—
An employee 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-Off-
set covered.
(c) 
DISPOSITION
OF
CONTRIBUTIONS
TO
THE
CSRDF.—
(1) EMPLOYEE CONTRIBUTIONS.—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 ex-
tent attributable to the period of erroneous coverage
involved.
(2) GOVERNMENT CONTRIBUTIONS.—There shall
be transferred from the CSRDF to the agency in or
under which the employee is then employed, to the
credit of the appropriation, fund, or account of such
agency from which any Government contributions to
the CSRDF may be made (to remain available until
expended), an amount equal to the Government con-
tributions that were made under section 8334 of title
5, United States Code, and attributable to such em-
ployee for 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.
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 de-
scribed 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 paragraphs
(1)(B)(ii) and (2)(B)(ii) thereof.
(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 121–123.
(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 leg-
islation) 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 advantageous
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 Re-
tirement Thrift Investment Board and the Commissioner of
Social Security.
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-Offset,
or CSRS if, as of the date on which notice of such error
is given (in accordance with section 201), such employee’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, as of the date
as of which the determination is made, the employee has
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 section
121; or
(B) to remain FERS covered.
(2) OTHER CASES.—Any employee affected by an
error described in section 122 or 123 who is deter-
mined under this section to satisfy subsection (b) may
elect—
(A) to be treated in accordance with section
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 sub-
section (c), as applicable, shall be deemed to have been elect-
ed as of the last day of such period. Nothing in this section
shall be considered to afford an employee the option of be-
coming 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 retire-
ment coverage error to which the election relates.
(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 entitlement 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 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—
(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-Offset
covered but, as a result of a retirement coverage error,
is (or was) FERS covered instead.
(b) UNCORRECTED 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 ap-
plicable) 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 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.
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.—
(1) IN
GENERAL.—Upon notification that an
employee has made an election under this section, the
agency in or under which such employee is employed
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 con-
tributions actually made under section 8423
of such title with respect to the employee for
the period of erroneous coverage involved,
exceeds
(ii) the amount of the Government con-
tributions that should have been made
under section 8334 of such title with respect
to the employee 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 coverage
involved (computed in such manner as the Direc-
tor of the Office of Personnel Management, with
the concurrence of the Commissioner 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 es-
tate, 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-
priation, fund, or account from which the
amount involved was originally paid.
(c) DISPOSITION OF EXCESS TSP CONTRIBUTIONS.—
Section 105(c) shall apply in the case of an employee de-
scribed 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-
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 de-
scribed 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 de-
scribed 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 de-
scribed in section 103.
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 con-
nection with the same error pursuant to notification pro-
vided in accordance with such section.
Subtitle E—Employee Who Should
Have Been CSRS-Offset Covered,
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 carried
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 Man-
agement 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 making
an election under this section, the retirement coverage error
described in subsection (a) has not been corrected, the em-
ployee 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 de-
scribed in subsection (a) has been corrected, the employee
affected by such error may elect—
(1) to be CSRS-Offset covered instead; or
(2) to remain CSRS covered.
(d) DEFAULT RULE.—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 beginning on the
date on which such notice is so given, the option under sub-
section (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 retire-
ment 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 employee
under section 151(b)(1).
(b) MAKEUP CONTRIBUTIONS TO THE CSRDF.—
(1) IN
GENERAL.—Upon notification that an
employee has made an election under this section, the
agency in or under which such employee is employed
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 nonrefunded amounts actually de-
ducted and withheld from the pay of the em-
ployee for the period of erroneous coverage in-
volved under such section (pursuant to CSRS-
Offset coverage).
(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 coverage
involved (computed in such manner as the Direc-
tor of the Office of Personnel Management, with
the concurrence of the Commissioner 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 es-
tate, 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-
priation, fund, or account from which the
amount involved was originally paid.
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 employee
under section 151(c)(1).
(b) 
DISPOSITION
OF
CONTRIBUTIONS
TO
THE
CSRDF.—In the case of an employee described in sub-
section (a), the provisions of section 102(b) shall apply, ex-
cept that, in applying such provisions—
(1) ‘‘the applicable provisions of section 8334’’
shall be substituted for ‘‘section 8422’’ in paragraph
(1)(B)(ii) thereof; and
(2) ‘‘the applicable provisions of section 8334’’
shall be substituted for ‘‘section 8423’’ in paragraph
(2)(B)(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 settle-
ment of claim for losses resulting from a retirement coverage
error shall not be entitled to make an election under this
Act unless repayment of the amount so received by such in-
dividual is waived in whole or in part by the Office of Per-
sonnel Management, and any amount not waived is repaid.
(b) REGULATIONS.—Any repayment under this section
shall be made in accordance with regulations prescribed by
the Office.
SEC. 162. EQUITABLE SHARING OF AMOUNTS PAYABLE TO
OR 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 employee
who has been employed in or under more than 1 agency
since the date of the retirement coverage error involved (and
before its rectification under this Act), any contributions
or other amounts required to be paid to or from the then
current employing agency (other than lost earnings 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 AD-
VISOR.—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 section) shall pay
(or make reimbursement for) any reasonable expenses
incurred by such employee for services received from
any licensed financial or legal consultant or advisor
in connection with such election.
(2) SPECIAL RULES.—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—
(A) shall pay (or reimburse any other agen-
cy that pays) any amounts to the Thrift Savings
Fund representing lost earnings with respect to
such error; and
(B) shall be entitled to receive (directly
from the Thrift Savings Fund or through trans-
fer from another agency) any amounts paid out
of the Thrift Savings Fund representing a refund
of lost earnings to which the Government is enti-
tled 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 affecting an em-
ployee, means—
(1) except in the situation described in para-
graph (2), the agency determined by the Office of Per-
sonnel Management to have made the initial retire-
ment coverage error (including one made before Janu-
ary 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.—
(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 Of-
fice under this subsection shall be final and not sub-
ject 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 reorganization or oth-
erwise)—
(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 Of-
fice of Personnel Management is the original responsible
agency by reason of subsection (b)(2), any amounts payable
to or from the Office under this section shall be payable
to or from the CSRDF.
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) affected
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 accordance
with this section.
(b) MATTER TO BE INCLUDED IN NOTICE TO INDIVID-
UALS.—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,
the time, form, and manner in which that change will
be effected) or an election.
(3) ELECTION PROCEDURES, ETC.—If an election
is provided under this Act, all relevant information
as to how such an election may be made, the options
available, the differences between those respective op-
tions (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 individ-
ual is then covered (disregarding the Thrift Savings
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 dis-
position rules relating thereto (including provi-
sions relating to excess amounts or shortfalls).
(C) The amount of any Government con-
tributions made to date and the effect of any ap-
plicable disposition rules relating thereto (in-
cluding provisions relating to excess amounts or
shortfalls).
(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 depend-
ing 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 con-
tributions, 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 considers
appropriate.
(7) OTHER INFORMATION.—Any other informa-
tion that the Director of the Office of Personnel Man-
agement may by regulation prescribe after consulta-
tion with the Executive Director of the Federal Re-
tirement Thrift Investment Board and such other
agency heads as the Director considers appropriate,
including any appeal rights available to the individ-
ual.
(c) COMPARISONS.—Any amounts required to be in-
cluded under subsection (b)(4) shall, with respect to the re-
spective 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, assum-
ing no change in retirement coverage; and
(3) as of the then most recent date for which
those benefits and amounts are ascertainable, assum-
ing the alternative option is chosen.
(d) PAST ERRORS.—All measures required under this
section shall, with respect to errors preceding the date speci-
fied 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 Personnel
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 in ac-
cordance 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 Man-
agement.
(2) The Commissioner of Social Security.
(3) The Executive Director of the Federal Retire-
ment Thrift Investment Board.
(b) AUTHORITY TO OBTAIN INFORMATION.—Each au-
thority identified in subsection (a) may secure directly from
any department or agency of the United States information
necessary to enable such authority to carry out its respon-
sibilities under this Act. Upon request of the authority in-
volved, the head of the department or agency involved shall
furnish that information to the requesting authority.
(c) LIMITATION; SAFEGUARDS.—Each of the respective
authorities under subsection (a)—
(1) shall request only such information as that
authority considers necessary; and
(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 Security
for purposes of title II of such Act, the Commissioner of
Social Security shall modify the wage record of each em-
ployee 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 SOCIAL
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:
‘‘(iii)(I) described in section 111(a)(3)
of the Federal Retirement Coverage Correc-
tions Act, on or after the effective date of an
election (or deemed election) by such indi-
vidual 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 indi-
vidual 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 indi-
vidual under subsection (b)(2) or (c)(1) of
section 151 of such Act;’’.
(b) OASDI TAXES.—Section 3121(b)(5)(H) of the In-
ternal 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 Correc-
tions Act, on or after the effective date of an
election (or deemed election) by such indi-
vidual 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 indi-
vidual 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 indi-
vidual under subsection (b)(2) or (c)(1) of
section 151 of such Act;’’.
SEC. 206. REGULATIONS.
(a) IN GENERAL.—Any regulations necessary to carry
out this Act shall be prescribed by the Director of the Office
of Personnel Management, the Executive Director of the
Federal Retirement Thrift Investment Board, the Commis-
sioner of Social Security, the Secretary of the Treasury, and
any other appropriate authority, with respect to matters
within their respective areas of jurisdiction.
(b) MATTERS TO BE INCLUDED.—The regulations pre-
scribed by the Director of the Office of Personnel Manage-
ment shall include at least the following:
(1) FORMER EMPLOYEES, ANNUITANTS, AND SUR-
VIVOR ANNUITANTS.—
(A) IN GENERAL.—Provisions under which,
to the maximum extent practicable and in ap-
propriate circumstances, any election available
to an employee under subtitle A, B, D, or F of
title I shall be available to a former employee,
annuitant, or survivor annuitant.
(B) SUBTITLE
C
SITUATIONS.—Provisions
under which subtitle C of title I shall apply in
the case of a former employee.
(C) SUBTITLE
E
SITUATIONS.—Provisions
under which the purposes of this paragraph shall
be carried with respect to any situation under
subtitle E of title I.
(2) FORMER SPOUSES.—Provisions under which
appropriate notification shall be afforded to any
former spouse affected by a change in retirement cov-
erage pursuant to this Act.
(3) PROCEDURAL
REQUIREMENTS.—Provisions
establishing the procedural requirements in accord-
ance with which any determinations under this Act
(not otherwise addressed in this Act) shall be made,
in conformance with the requirements of this Act.
(4) AUTHORITY TO MAKE ACTUARIAL REDUCTION
IN
ANNUITY
BY
REASON
OF
CERTAIN
UNPAID
AMOUNTS.—Provisions under which any payment re-
quired to be made by an individual to the Govern-
ment in order to make an election under this Act
which remains unpaid may be made by a reduction
in the appropriate annuity or survivor annuity. The
reduction shall, to the extent practicable, be designed
so that the present value of the future reduction is ac-
tuarially equivalent to the amount so required.
(c) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘annuitant’’ means any individual
who is an annuitant as defined by section 8331(9) or
8401(2) of title 5, United States Code; and
(2) the term ‘‘former employee’’ includes any
former employee who satisfies the service requirement
for title to a deferred annuity under chapter 83 or 84
of such title 5 (as applicable), but—
(A) has not attained the minimum age re-
quired for title to such an annuity; or
(B) has not filed claim therefor.
(d) COORDINATION RULE.—In prescribing regulations
to carry out this Act, the Director of the Office of Personnel
Management shall consult with—
(1) the Administrative Office of the United
States Courts;
(2) the Clerk of the House of Representatives;
(3) the Sergeant at Arms and Doorkeeper of the
Senate; and
(4) other appropriate officers or authorities.
(e) EFFECTIVE DATE.—All regulations necessary to
carry out this Act shall take effect as of the first day of
the first month beginning after the end of the 6-month pe-
riod beginning on the date of enactment of this Act.
SEC. 207. ALL ELECTIONS TO BE APPROVED BY OPM.
Notwithstanding any other provision of this Act, no
election under this Act (other than an election by default)
may be given effect until the Office of Personnel Manage-
ment has determined, in writing, that such election is in
compliance with the requirements of this Act.
SEC. 208. ADDITIONAL TRANSFERS TO OASDI TRUST FUNDS
IN CERTAIN CASES.
If the Commissioner of Social Security determines that
the payment of the OASDI taxes described in this Act did
not result in a credit to the OASDI trust funds of an equal
amount, the Commissioner of Social Security shall notify
the Secretary of the Treasury of the amount of any shortfall.
Promptly upon receiving such notification, the Secretary
of the Treasury shall transfer an amount equal to such
shortfall from the general fund of the Treasury to the
OASDI trust funds.
SEC. 209. TECHNICAL AND CONFORMING AMENDMENTS.
(a) AMENDMENT
RELATING
TO
LIMITATION
ON
SOURCES FROM WHICH CONTRIBUTIONS TO THE THRIFT
SAVINGS FUND ARE ALLOWED.—Section 8432(h) of title 5,
United States Code, is amended by striking ‘‘title.’’ and in-
serting ‘‘title or the Federal Retirement Coverage Correc-
tions Act.’’.
(b) DESCRIPTION
OF AMOUNTS COMPRISING
THE
THRIFT SAVINGS FUND.—Section 8437(b) of title 5, United
States Code, is amended by striking ‘‘expenses).’’ and in-
serting ‘‘expenses), as well as contributions under the Fed-
eral Retirement Coverage Corrections Act (and lost earnings
made up under such Act).’’.
(c) ADMINISTRATIVE EXPENSES.—
(1) THRIFT SAVINGS PLAN.—Section 8437(d) of
title 5, United States Code, is amended by inserting
‘‘(including the provisions of the Federal Retirement
Coverage Corrections Act that relate to this sub-
chapter)’’ after ‘‘this subchapter’’.
(2) 
CSRS, 
CSRS-OFFSET, 
FERS.—Section
8348(a)(2) of title 5, United States Code, is amended
by striking ‘‘statutes;’’ and inserting ‘‘statutes (in-
cluding the provisions of the Federal Retirement Cov-
erage Corrections Act that relate to this subchapter);’’.
(3) MSPB.—Section 8348(a)(3) of title 5,
United States Code, is amended by striking ‘‘title.’’
and inserting ‘‘title and the Federal Retirement Cov-
erage Corrections Act.’’.
TITLE III—OTHER PROVISIONS
SEC. 301. PROVISIONS TO PERMIT CONTINUED CONFORM-
ITY OF OTHER FEDERAL RETIREMENT SYS-
TEMS.
(a) FOREIGN SERVICE.—Sections 827 and 851 of the
Foreign Service Act of 1980 (22 U.S.C. 4067 and 4071)
shall apply with respect to this Act in the same manner
as if this Act were part of—
(1) the Civil Service Retirement System, to the
extent this Act relates to the Civil Service Retirement
System; and
(2) the Federal Employees’ Retirement System,
to the extent this Act relates to the Federal Employ-
ees’ Retirement System.
(b) CENTRAL INTELLIGENCE AGENCY.—Sections 292
and 301 of the Central Intelligence Agency Retirement Act
(50 U.S.C. 2141 and 2151) shall apply with respect to this
Act in the same manner as if this Act were part of—
(1) the Civil Service Retirement System, to the
extent this Act relates to the Civil Service Retirement
System; and
(2) the Federal Employees’ Retirement System,
to the extent this Act relates to the Federal Employ-
ees’ Retirement System.
SEC. 302. CERTAIN AMOUNTS PAYABLE OUT OF THE GEN-
ERAL FUND OF THE TREASURY OR CSRDF.
(a) GENERAL FUND OF THE TREASURY.—
(1) IN
GENERAL.—Notwithstanding any other
provision of this Act or any other provision of law
(but subject to paragraph (2)), all amounts for which
an Executive agency would otherwise be liable by vir-
tue of an election made (or deemed to have been
made) under this Act shall, to the extent the liability
relates to amounts payable for any portion of a pe-
riod of erroneous coverage (or of a period described in
section 105(d)), instead be paid by the Secretary of
the Treasury from amounts in the general fund of the
Treasury of the United States not otherwise appro-
priated, if or to the extent that the Director of the Of-
fice of Management and Budget determines, on appli-
cation of the agency involved, that the payment by
such agency of those amounts would substantially im-
pair the agency’s ability to accomplish its mission.
For purposes of the preceding sentence, a substantial
impairment may include a reduction in force if the
Director of the Office of Management and Budget de-
termines that such reduction in force is attributable
solely to payments required under this Act.
(2) EXCEPTION.—This subsection shall not apply
with respect to any amount for which an Executive
agency would otherwise be liable by reason of any re-
tirement coverage error as to which the notification
required under section 201 is not given before Janu-
ary 1, 2002.
(3) DEFINITION.—For purposes of this sub-
section, the term ‘‘Executive agency’’ has the meaning
given such term by section 105 of title 5, United
States Code, but does not include the General Ac-
counting Office.
(b) CSRDF.—
(1) IN
GENERAL.—For purposes of section
8348(f) of title 5, United States Code, any unfunded
liability in the CSRDF created as a result of an elec-
tion made (or deemed to have been made) under this
Act, as determined by the Office of Personnel Manage-
ment, shall be considered a new benefit payable from
the CSRDF.
(2) COORDINATION RULE.—Paragraph (1) shall
not apply to the extent that subsection (h), (i), or (m)
of section 8348 of title 5, United States Code, would
otherwise apply.
SEC. 303. INDIVIDUAL RIGHT OF ACTION PRESERVED FOR
AMOUNTS NOT OTHERWISE PROVIDED FOR
UNDER THIS ACT.
Nothing in this Act shall preclude an individual from
bringing a claim against the Government of the United
States which such individual may have under section
1346(b) or chapter 171 of title 28, United States Code, or
any other provision of law (except to the extent the claim
is for any amounts otherwise provided for under this Act).
SEC. 304. EXTENSION OF OPEN ENROLLMENT PERIOD TO
EMPLOYEES UNDER THE FOREIGN SERVICE
RETIREMENT AND DISABILITY SYSTEM.
Section 860 of the Foreign Service Act of 1980 (22
U.S.C. 4071i) is amended by inserting after the first sen-
tence the following: ‘‘The Secretary of State shall, in addi-
tion, issue regulations providing for an election for coverage
under the Foreign Service Pension System for employees
covered under the Foreign Service Retirement and Disabil-
ity System comparable to the election provided for by the
Federal Employees’ Retirement System Open Enrollment
Act of 1997.’’.
TITLE IV—TAX PROVISIONS
SEC. 401. TAX PROVISIONS.
(a) PLAN QUALIFICATION.—No retirement plan of the
United States (or any agency thereof) shall fail to be treated
as a qualified plan under the Internal Revenue Code of
1986 by reason of any action taken under this Act.
(b) TRANSFERS.—For purposes of the Internal Reve-
nue Code of 1986, no amount shall be includible in the gross
income of any individual by reason of any direct transfer
under this Act between funds or any Government contribu-
tion under this Act to any fund or account.
(c) DISTRIBUTION
OF EXCESS CSRS CONTRIBU-
TIONS.—Section 72(t) of the Internal Revenue Code of 1986
(relating to 10-percent additional tax on early distributions
from qualified retirement plans) shall not apply to the dis-
tribution of the excess described in section 102(b)(1)(B) of
this Act or to any other refund paid under this Act from
the Civil Service Retirement and Disability Fund.
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as
the ‘‘Federal Retirement Coverage Correc-
tions Act’’.
(b) TABLE OF CONTENTS.—The table of con-
tents 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 ER-
RORS TO WHICH THIS ACT APPLIES AND MEASURES
FOR THEIR RECTIFICATION
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 correct a retirement coverage error.
Sec. 103. Effect of an election to be transferred from CSRS-Off-
set 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 hav-
ing been corrected 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 Erro-
neously Social Security-Only Covered Instead
Sec. 111. Elections.
Sec. 112. Effect of an election to become FERS covered to cor-
rect the retirement 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 cor-
rect the retirement 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 covered, but who is erroneously
FERS covered instead.
Sec. 122. Uncorrected error: employee who should be Social
Security-Only covered, but who is erroneously
CSRS-Offset covered instead.
Sec. 123. Uncorrected error: employee who should be Social
Security-Only covered, 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 correct 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 hav-
ing been corrected to CSRS.
Sec. 135. Effect of an election to be restored to FERS after hav-
ing been corrected to CSRS-Offset.
Sec. 136. Disqualification of certain individuals to whom same
election was previously 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-Off-
set 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 Gov-
ernment if more than one agency involved.
Sec. 163. Provisions relating to the original responsible agen-
cy.
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
Sec. 301. Provisions to permit continued conformity of other
Federal retirement systems.
Sec. 302. Provisions to prevent reductions in force and any un-
funded liability in the CSRDF.
Sec. 303. Individual right of action preserved for amounts not
otherwise provided for under this Act.
Sec. 304. Extension of open enrollment period to employees
under the Foreign Service Retirement and Dis-
ability 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
covered’’, with respect to any service,
means service that is subject to the provi-
sions 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 title 5, United States
Code, and any other individual (not satis-
fying either of those definitions) serving
in an appointive or elective office or posi-
tion in the executive, legislative, or judi-
cial branch of the Government who, by
virtue of that service, is permitted or re-
quired to be CSRS covered, CSRS-Offset
covered, FERS covered, or Social Secu-
rity-Only covered.
(6) EXECUTIVE
DIRECTOR.—The term
‘‘Executive Director of the Federal Re-
tirement Thrift Investment Board’’ or
‘‘Executive Director’’ means the Execu-
tive Director appointed under section
8474 of title 5, United States Code.
(7) FERS.—The term ‘‘FERS’’ means
the Federal Employees’ Retirement Sys-
tem.
(8) FERS COVERED.—The term ‘‘FERS
covered’’, with respect to any service,
means service that is subject to chapter
84 of title 5, United States Code.
(9) GOVERNMENT.—The term ‘‘Govern-
ment’’ 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.
(11) OASDI EMPLOYEE TAX.—The term
‘‘OASDI employee tax’’ means the tax im-
posed under section 3101(a) of the Inter-
nal Revenue Code of 1986 (relating to
Old-Age, Survivors and Disability Insur-
ance).
(12) OASDI EMPLOYER TAX.—The term
‘‘OASDI employer tax’’ means the tax im-
posed under section 3111(a) of the Inter-
nal Revenue Code of 1986 (relating to
Old-Age, Survivors and Disability Insur-
ance).
(13) OASDI TRUST
FUNDS.—The term
‘‘OASDI trust funds’’ means the Federal
Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insur-
ance Trust Fund.
(14) 
PERIOD
OF
ERRONEOUS
COV-
ERAGE.—The term ‘‘period of erroneous
coverage’’ means, in the case of a retire-
ment coverage error, the period through-
out which retirement coverage is in ef-
fect pursuant to such error (or would
have been in effect, but for such error).
(15) 
RETIREMENT
COVERAGE
DETER-
MINATION.—The 
term 
‘‘retirement 
cov-
erage determination’’ means a determina-
tion by an employee or agent of the Gov-
ernment as to whether a particular type
of Government service is CSRS covered,
CSRS-Offset covered, FERS covered, or
Social Security-Only covered.
(16) RETIREMENT
COVERAGE
ERROR.—
The term ‘‘retirement coverage error’’
means a retirement coverage determina-
tion that, as a result of any error, mis-
representation, or inaction on the part of
an employee or agent of the Government
(including an error as described in sec-
tion 163(b)(2)), causes an individual erro-
neously to be enrolled or not enrolled 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 Gov-
ernment service that constitutes employ-
ment under section 210 of the Social Se-
curity Act (42 U.S.C. 410), and that—
(A) is subject to OASDI taxes; but
(B) is not subject to any retire-
ment system for Government employ-
ees (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.
SEC. 3. APPLICABILITY.
(a) IN GENERAL.—Subject to subsection (b),
this Act shall apply with respect to any retire-
ment coverage error that occurs before, on, or
after the date of enactment of this Act, exclud-
ing 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 respect to any individual in
connection with any period beginning before
the first day of the first applicable pay period
beginning on or after January 1, 1984.
SEC. 4. RESTRICTION RELATING TO FUTURE CORREC-
TIONS.
(a) IN GENERAL.—Except as otherwise pro-
vided in this Act, any individual who, on or
after the date of enactment of this Act, be-
comes or remains affected by a retirement
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 elec-
tion under the Federal Employees’ Re-
tirement System Open Enrollment Act of
1997 (Public Law 105–61; 111 Stat. 1318)
or any other voluntary retirement cov-
erage election authorized by statute.
(2) REGULATIONS.—The Office of Per-
sonnel Management shall prescribe any
regulations which may be necessary to
apply this Act in the case of any individ-
ual who changes retirement coverage
pursuant 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—
(1) should be (or should have been)
FERS covered but, as a result of a retire-
ment coverage error, is (or was) CSRS
covered instead; or
(2) should be (or should have been)
FERS covered but, as a result of a retire-
ment coverage error, is (or was) CSRS-
Offset covered instead.
(b) UNCORRECTED ERROR.—If, at the time
of making an election under this section, the
retirement coverage error described in para-
graph (1) or (2) of subsection (a) (as applica-
ble) 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 re-
tirement coverage error described in para-
graph (1) or (2) of subsection (a) (as applica-
ble) 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 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 appli-
cable, shall be deemed to have been elect-
ed 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 elec-
tion) shall be effective retroactive to the effec-
tive 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 section 101(a)(1) who
elects the option under section 101(b)(1).
(b) DISPOSITION OF CONTRIBUTIONS TO THE
CSRDF.—
(1) EMPLOYEE CONTRIBUTIONS.—
(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 with-
held from the Federal wages of the
employee for the period of erroneous
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 em-
ployee 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 em-
ployee’s lump-sum credit that
is attributable to the period of
erroneous coverage involved,
exceeds (if at all)
(II) 
the 
total 
of 
the
amount described in subpara-
graph (A) plus the amount
that should have been de-
ducted under section 8422 of
title 5, United States Code,
from the pay of the employee
for the period of erroneous
coverage involved.
(C) RULE
IF
LUMP-SUM
CREDIT
IS
LESS THAN TOTAL EMPLOYEE CONTRIBU-
TIONS
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 subpara-
graph (B)(ii)(II), an amount
equal to the shortfall shall be
transferred 
to 
the 
OASDI
trust funds (in such manner
as the Commissioner of Social
Security shall by regulation
prescribe) by the agency in or
under which the employee is
then 
employed, 
out 
of
amounts otherwise available
in the appropriation, fund, or
account 
from 
which 
any
OASDI employer tax or con-
tribution to the CSRDF (as
applicable) may be made, ex-
cept as provided in subclause
(II) or clause (iii)(I).
(II) REDUCTION
FOR
DE-
POSIT
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 ex-
tent that the shortfall under
clause (i) is due to the any
lump-sum credit received by
the employee (for which an
appropriate 
deposit 
under
section 8334(d)(1) of title 5,
United States Code, has not
been 
made), 
the 
employee
shall be required to repay an
amount equal to the amount
of such deposit, except as pro-
vided 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
authorities 
(including 
to
waive a right of recovery) as
described in section 114(b)(2).
For purposes of any exercise
of authority under the preced-
ing sentence, the Director of
the Office of Personnel Man-
agement shall be considered
the head of the agency con-
cerned.
(iii) SPECIAL RULES.—
(I) DEPOSIT
FOR
FERS
DE-
DUCTIONS
NOT
MANDATORY.—
Nothing in this subparagraph
shall, in any situation de-
scribed in clause (ii), be con-
sidered to require any agency
make-up 
payment 
(or 
em-
ployee repayment) of any por-
tion of the lump-sum credit
(beyond 
any 
amount 
nec-
essary in order to permit the
transfer described in para-
graph (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 re-
ceived a lump-sum credit (de-
scribed in clause (ii)(I)) may
not be credited, under chap-
ter 84 of title 5, United States
Code, with any period of serv-
ice to which that lump-sum
credit relates unless the em-
ployee 
deposits 
into 
the
CSRDF an amount equal to
the percentage of such em-
ployee’s basic pay (for such
period of service) that should
have been deducted under
section 8422 of such title 5.
(D) DEFINITION OF LUMP-SUM CRED-
IT.—For purposes of this paragraph,
the term ‘‘lump-sum credit’’ has the
meaning given such term by section
8331 of title 5, United States Code, ex-
cept as the context may otherwise in-
dicate.
(E) PROVISIONS
RELATING
TO
THE
APPLICATION
OF
THIS
PARAGRAPH
IN
OTHER SITUATIONS.—
(i) 
GENERAL
AUTHORITY.—To
the extent necessary to permit the
operation of this paragraph in
any situation covered by any
other 
provisions 
of 
this 
Act
(which 
incorporate 
this 
para-
graph by reference), any nec-
essary technical and conforming
amendments to this paragraph
not otherwise specifically pro-
vided for (such as citations to ap-
propriate provisions of law cor-
responding to provisions cited in
this paragraph) shall be made
under regulations which the Of-
fice of Personnel Management
shall prescribe.
(ii) SPECIAL RULE.—
(I) 
DEPOSITS
NOT
PRE-
CLUDED BY FERS RESTRICTION.—
Nothing in section 8424(a) of
title 5, United States Code,
shall, in any situation covered
by this Act, prevent the mak-
ing of any deposit (and credit-
ing, for retirement purposes,
of service for the correspond-
ing period of time) to the ex-
tent that the deposit relates to
the period of erroneous cov-
erage involved.
(II) EXCEPTION.—The pre-
ceding 
sentence 
shall 
not
apply 
in 
any 
situation 
in
which the employee involved
was erroneously FERS cov-
ered, and remained FERS cov-
ered after the rectification
provided for under this Act.
(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
employer tax that should have
been paid with respect to the em-
ployee for the period of erroneous
coverage involved, over
(ii) the amount of the OASDI
employer tax that may be as-
sessed under section 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
ACTUALLY MADE ARE LESS THAN TOTAL
GOVERNMENT CONTRIBUTIONS TO OASDI
AND
CSRDF
THAT
SHOULD
HAVE
BEEN
MADE.—
(i) IN
GENERAL.—If the total
Government contributions to the
CSRDF that were made with re-
spect to the employee for the pe-
riod of erroneous coverage in-
volved are less than the amount
described 
in 
clause 
(ii), 
an
amount equal to the shortfall
shall be transferred to the OASDI
trust funds (in such manner as
the Commissioner of Social Secu-
rity shall by regulation 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 subpara-
graph (A), plus
(II) 
the 
amount 
that
should have been contributed
by the Government under sec-
tion 8423 of title 5, United
States Code, for such em-
ployee 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 appro-
priation, fund, or account avail-
able to such agency for making
Government contributions to the
CSRDF or the OASDI trust funds
(as appropriate).
(c) MAKEUP CONTRIBUTIONS TO THE THRIFT
SAVINGS FUND.—
(1) 
IN
GENERAL.—An 
employee 
to
whom this section applies is entitled to
have contributed to the Thrift Savings
Fund on such employee’s behalf, in addi-
tion to any regular employee or Govern-
ment contributions that would be per-
mitted 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
paragraph (2) with respect to such
employee for the period of erroneous
coverage involved;
(B) an amount equal to the total
contributions that should have been
made for such employee under sec-
tion 8432(c)(1) of title 5, United States
Code, for the period of erroneous cov-
erage involved;
(C) an amount equal to the total
contributions that should have been
made for such employee under sec-
tion 8432(c)(2) of title 5, United States
Code, for the period of erroneous cov-
erage involved (taking into account
both the amount referred to in sub-
paragraph (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 earn-
ings on the amounts referred to in
subparagraphs (A) through (C), deter-
mined in accordance with paragraph
(3).
(2) AMOUNT
BASED
ON
AVERAGE
PER-
CENTAGE OF PAY CONTRIBUTED BY EMPLOY-
EES
DURING
PERIOD
OF
ERRONEOUS
COV-
ERAGE.—
(A) IN GENERAL.—The amount de-
termined under this paragraph with
respect to an employee for a period of
erroneous coverage shall be equal to
the amount of the contributions such
employee would have made if, during
each calendar year in such period,
the employee had contributed the
percentage of such employee’s basic
pay for such year specified in sub-
paragraph (B) (determined disregard-
ing any contributions actually made
by such employee with respect to the
year involved).
(B) PERCENTAGE TO BE APPLIED.—
(i) IN GENERAL.—The percent-
age to be applied under this sub-
paragraph in the case of any em-
ployee with respect to a particu-
lar year is—
(I) the average percentage
of basic pay that was contrib-
uted for such year under sec-
tion 8432(a) of title 5, United
States 
Code, 
by 
full-time
FERS covered employees who
contributed to the Thrift Sav-
ings Fund in such year and
100
for whom a salary rate is re-
corded (as of June 30 of such
year) in the central personnel
data file maintained by the
Office of Personnel Manage-
ment; or
(II) if such average per-
centage for the year in ques-
tion is unavailable, the aver-
age percentage for the most
recent year prior to the year
in question that is available.
(ii) 
PERCENTAGE
CONTRIB-
UTED.—For 
purposes 
of 
clause
(i)(I), the percentage of basic pay
for each employee included in the
average shall be determined by
dividing the total employee con-
tributions received into the Thrift
Savings Plan account of that em-
ployee during such year by the
annual salary rate for that em-
ployee as recorded in the central
personnel data file (referred to in
101
clause (i)(I)) as of June 30 of such
year.
(C) LIMITATIONS.—In no event may
the amount determined under this
paragraph for an individual with re-
spect to a year exceed the amount
that, if added to the amount of the
contributions 
that 
were 
actually
made by such individual to the Thrift
Savings Fund with respect to such
year (if any), would cause the total to
exceed—
(i) any limitation under sec-
tion 415 or any other provision of
the Internal Revenue Code of
1986 that would have applied to
such employee with respect to
such year; or
(ii) any limitation under sec-
tion 8432(a) or any other provi-
sion of title 5, United States Code,
that would have applied to such
employee with respect to such
year.
(3) LOST EARNINGS.—
102
(A) IN GENERAL.—Lost earnings on
any amounts referred to in subpara-
graph (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 contributed and
allocated among the TSP investment
funds in accordance with—
(i) the investment fund elec-
tion that was accepted by the em-
ploying agency before 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 effect for the employee,
the investment fund election at-
tributed to such employee with
respect to such year.
(B) INVESTMENT FUND ELECTION AT-
TRIBUTED.—For purposes of subpara-
graph (A)(ii), the investment fund
103
election attributed to an employee
with respect to a particular year is—
(i) the average percentage al-
location 
of 
TSP 
contributions
among the TSP investment funds
from all sources, with respect to
that year, except that the invest-
ment fund election attributed to
contributions in years prior to
1991 shall be the G Fund; or
(ii) if such average percentage
allocation for the year in question
is unavailable, the average per-
centage allocation for the most re-
cent year prior to the year in
question that is available.
(C) 
DEFINITION
OF
INVESTMENT
FUND ELECTION, ETC.—For purposes of
this paragraph—
(i) the term ‘‘investment fund
election’’ means a choice by a par-
ticipant concerning how contribu-
tions to the Thrift Savings Plan
shall be allocated among the TSP
investment funds;
104
(ii) 
the 
term 
‘‘participant’’
means any person with an ac-
count in the Thrift Savings Plan,
or who would have an account in
the Thrift Savings Plan but for an
employing agency error (includ-
ing an error as described in sec-
tion 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 Sav-
ings 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), respectively, 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 prompt-
105
ly 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 subparagraph (B)(ii) as
to the amount due.
(B) BOARD FUNCTIONS.—The regu-
lations under paragraph (6) shall in-
clude provisions under which—
(i) 
each 
employing 
agency
shall be required to determine
and notify the Federal Retire-
ment Thrift Investment Board, in
a 
timely 
manner, 
as 
to 
any
amounts under paragraph (1)(A)–
(C) owed by such agency; and
(ii) the Board shall, based on
the information it receives from
an agency under clause (i), deter-
mine 
lost 
earnings 
on 
those
amounts 
and 
promptly 
notify
such 
agency 
as 
to 
the 
total
amounts due from it under this
subsection.
106
(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 elec-
tion referred to in subsection (a), be-
comes subject to section 8440a, 8440b,
8440c, or 8440d of title 5, United States
Code.
(6) REGULATIONS.—The Executive Di-
rector 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 section 101(a)(2) who
elects the option under section 101(b)(1).
(b) EFFECT OF ELECTION.—In the case of an
employee described in subsection (a), the fol-
lowing provisions shall apply:
(1) Section 102(b) (relating to disposi-
tion of contributions to the CSRDF), but
107
disregarding provisions relating to trans-
fers to OASDI trust funds.
(2) Section 102(c) (relating to makeup
contributions 
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 section 101(a)(1) who
elects the option under section 101(b)(2).
(b) SAME AS IN THE CASE OF AN ELECTION TO
RATIFY ERRONEOUS CSRS-OFFSET COVERAGE.—
(1) IN GENERAL.—The effect of an elec-
tion described in subsection (a) shall be
as described in section 101(b)(2), except
that the provisions of section 102(b) shall
also apply.
(2) APPROPRIATE
PERCENTAGES
TO
BE
USED IN DETERMINING EMPLOYEE AND GOV-
ERNMENT
CONTRIBUTIONS
TO
CSRDF.—For
purposes of paragraph (1), section 102(b)
shall be applied by substituting ‘‘the rel-
108
evant provisions of section 8334(k)’’ for
‘‘section 8422’’ and ‘‘section 8423’’.
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 cor-
rected 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 described in subsection (a),
subject to paragraph (2).
(2) NO
TRANSFERS
FOR
AMOUNTS
AL-
READY
PAID
INTO
OASDI, ETC.—For pur-
poses 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 appro-
109
priate OASDI employee or employer
tax has already been paid for the
total period involved (or any portion
thereof), 
reduce 
the 
respective
amounts 
required 
by 
paragraphs
(1)(A) and (2)(A)(i) of section 102(b)
accordingly.
(B) APPROPRIATE PERCENTAGES TO
BE USED IN DETERMINING EMPLOYEE AND
GOVERNMENT
CONTRIBUTIONS
TO
CSRDF.—Substitute ‘‘the relevant pro-
visions 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 sub-
section shall be determined in ac-
cordance with regulations to be pre-
scribed by the Office of Personnel
Management.
(D) PROVISIONS TO BE APPLIED WITH
RESPECT
TO
THE
TOTAL
PERIOD
IN-
VOLVED.—Substitute ‘‘total period in-
volved (as defined by section 105)’’ for
110
‘‘period of erroneous coverage in-
volved’’.
(c) DISPOSITION OF EXCESS TSP CONTRIBU-
TIONS.—
(1) GOVERNMENT
CONTRIBUTIONS.—All
Government contributions made on be-
half of the employee to the Thrift Savings
Fund that are attributable to the total pe-
riod involved (including any earnings
thereon) shall be forfeited. For the pur-
pose of section 8437(d) of title 5, United
States Code, amounts so forfeited shall be
treated as if they were 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 disposi-
tion 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 applicable provi-
sions of subchapter III of chapter 83 of
111
title 5, United States Code (including any
earnings thereon).
(d) DEFINITION
OF
TOTAL
PERIOD
IN-
VOLVED.—For purposes of this section, the
term ‘‘total period involved’’ means the period
beginning on the effective date of the retire-
ment coverage error involved and ending on
the day before the date on which the election
described in subsection (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 been cor-
rected 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 de-
scribed in subsection (a), subject to the same
condition as set forth in section 105(b)(2)(A).
(c) MAKEUP CONTRIBUTIONS TO THE THRIFT
SAVINGS FUND.—Section 102(c) shall apply, ex-
112
cept that an agency shall receive credit for
any automatic or matching Government con-
tributions and any lost earnings paid by such
agency as part of any corrections process pre-
viously carried out with respect to the em-
ployee 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 covered but, as a result of a retire-
ment coverage error, is (or was) Social
Security-Only covered instead;
(2) should be (or should have been)
CSRS-Offset covered but, as a result of a
retirement coverage error, is (or was) So-
cial Security-Only covered instead; or
(3) should be (or should have been)
CSRS covered but, as a result of a retire-
113
ment coverage error, is (or was) Social
Security-Only covered instead.
(b) UNCORRECTED ERROR.—If, at the time
of making an election under this section, the
retirement coverage error described in para-
graph (1), (2), or (3) of subsection (a) (as appli-
cable) has not been corrected, the employee
affected by such error may elect—
(1)(A) in the case of an error de-
scribed in subsection (a)(1), to be FERS
covered as well;
(B) in the case of an error described
in subsection (a)(2), to be CSRS-Offset
covered as well; or
(C) in the case of an error described
in subsection (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 nec-
114
essary draft legislation) to carry out the
policy described in paragraph (2).
(2) POLICY.—Under the proposal, any
employee with respect to whom the re-
tirement coverage error described in
paragraph (1), (2), or (3) of subsection (a)
(as applicable) has already been cor-
rected, but under terms less advan-
tageous to the employee than would have
been the case under this Act, shall be af-
forded a reasonable opportunity to ob-
tain treatment comparable to the treat-
ment afforded under this Act.
(3) JOINT
ACTION.—This subsection
shall be carried out by the Director of the
Office of Personnel Management, in con-
sultation with the Executive Director of
the Federal Retirement Thrift Investment
Board and the Commissioner of Social Se-
curity.
(d) DEFAULT RULE.—In the case of any em-
ployee to whom subsection (b) applies, if the
employee is given written notice in accord-
ance with section 201 as to the availability of
an election under this section, but does not
115
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) 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 elec-
tion) shall be effective retroactive to the effec-
tive 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 section 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 employee is
116
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.
(c) MAKEUP CONTRIBUTIONS TO THE THRIFT
SAVINGS FUND.—Section 102(c) shall apply in
the case of an employee described in sub-
section (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 section 111(a)(2) who
elects the option under section 111(b)(1)(B).
(b) 
MAKEUP
CONTRIBUTIONS
TO
THE
CSRDF.—Upon notification that an employee
117
has made an election under this section, the
agency in or under which such employee 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 involved.
(c) MAKEUP CONTRIBUTIONS TO THE THRIFT
SAVINGS FUND.—
(1) IN
GENERAL.—Makeup contribu-
tions 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 sub-
paragraphs).
118
(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 cov-
ered’’ 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 section 111(a)(3) who
elects the option under section 111(b)(1)(C).
(b) 
MAKEUP
CONTRIBUTIONS
TO
THE
CSRDF.—
(1) IN
GENERAL.—Upon notification
that an employee has made an election
under this section, the agency in or
under which such employee is employed
119
shall promptly pay to the CSRDF, in a
lump sum, an amount equal to the sum
of—
(A) 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
(B) the Government contributions
that should have been paid under
such section for the period of erro-
neous coverage involved.
(2) AGENCY TO BE REIMBURSED FOR CER-
TAIN AMOUNTS.—
(A) IN
GENERAL.—The employee
for whom the payment under para-
graph (1) is made shall repay to the
agency (referred to in paragraph (1))
an amount equal to the OASDI em-
ployee taxes refunded or refundable
to such employee for any portion of
the period of erroneous coverage in-
volved (computed in such manner as
the Director of the Office of Person-
120
nel Management, with the concur-
rence of the Secretary of the Treas-
ury, 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 out-
standing is recoverable by the Gov-
ernment from the employee (or the
employee’s estate, if applicable) by—
(i) setoff against accrued pay,
compensation, amount of retire-
ment credit, or another amount
due the employee from the Gov-
ernment; and
(ii) such other method as is
provided by law for the recovery
of amounts owing to the Govern-
ment.
The head of the agency concerned
may waive, in whole or in part, a
right of recovery under this para-
graph if it is shown that recovery
121
would be against equity and good
conscience or against the public in-
terest.
(C) TREATMENT OF AMOUNTS REPAID
OR
RECOVERED.—Any amount repaid
by, or recovered from, an individual
(or an estate) under this paragraph
shall be credited to the appropriation
account from which the amount in-
volved was originally paid.
(c) MAKEUP CONTRIBUTIONS TO THE THRIFT
SAVINGS FUND.—In the case of an employee de-
scribed in subsection (a), makeup contribu-
tions to the Thrift Savings Fund shall be made
in the same manner as described in section
113(c).
122
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 Se-
curity-Only covered but, as a result of a re-
tirement coverage error, is FERS covered in-
stead.
(b) AUTOMATIC EXCLUSION FROM FERS.—
An employee 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 FERS
covered.
(c) DISPOSITION
OF EMPLOYEE CONTRIBU-
TIONS TO THE CSRDF.—There shall be paid to
the employee, from the CSRDF, any lump-sum
123
credit to which such employee would be enti-
tled 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
Government contributions made on be-
half of the employee to the Thrift Savings
Fund that are attributable to the period
of erroneous coverage involved (includ-
ing any earnings thereon) shall be for-
feited in the same manner as described in
section 105(c).
(2) 
EMPLOYEE
CONTRIBUTIONS.—Not-
withstanding 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 pe-
riod of erroneous coverage involved (in-
cluding any earnings thereon) shall be
treated as if such employee had then
been correctly covered.
124
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 Se-
curity-Only covered but, as a result of a re-
tirement coverage error, is CSRS-Offset cov-
ered instead.
(b) AUTOMATIC EXCLUSION FROM CSRS-OFF-
SET.—An employee described in subsection (a)
shall not, by reason of the retirement cov-
erage error described in subsection (a), be eli-
gible to be treated as an individual who is
CSRS-Offset covered.
(c) DISPOSITION
OF EMPLOYEE CONTRIBU-
TIONS TO THE CSRDF.—There shall be paid to
the employee, from the CSRDF, the lump-sum
credit to which such employee would be enti-
tled 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 sub-
section (a), section 121(d)(2) shall apply.
125
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 Se-
curity-Only covered but, as a result of a re-
tirement coverage error, is CSRS covered in-
stead.
(b) AUTOMATIC EXCLUSION FROM CSRS.—
An employee 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
covered.
(c) DISPOSITION OF CONTRIBUTIONS TO THE
CSRDF.—
(1) IN GENERAL.—In the case of an em-
ployee described in subsection (a), sec-
tion 102(b) shall apply.
(2) IRRELEVANT PROVISIONS TO BE DIS-
REGARDED.—For purposes of paragraph
(1), section 102(b) shall be applied dis-
regarding the provisions of paragraphs
(1)(B)(ii)(II) (to the extent they relate to
126
amounts that should have been deducted
under section 8422 of title 5, United
States Code) and (2)(B)(ii)(II) thereof.
(d) DISPOSITION OF TSP CONTRIBUTIONS.—
In the case of an employee described in sub-
section (a), section 121(d)(2) shall apply.
SEC. 124. CORRECTED ERROR: SITUATIONS UNDER SEC-
TIONS 121–123.
(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 em-
ployee with respect to whom the applicable
retirement coverage error (referred to in sec-
tion 121, 122, or 123, as applicable) has al-
ready 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 af-
forded under this Act.
127
(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 Retire-
ment Thrift Investment Board and the Com-
missioner of Social Security.
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 automatic exclusion of any
employee from FERS, CSRS-Offset, or CSRS
if, as of the date on which notice of such error
is given (in accordance with section 201), such
employee’s rights have vested under the re-
tirement system involved.
(b) VESTING.—For purposes of this section,
vesting of rights shall be considered to have
occurred if the employee has (by the date as
of which the determination is made) com-
pleted at least 5 years of civilian service, tak-
ing into account only creditable service under
section 8332 or 8411 of title 5, United States
Code.
(c) ELECTIONS.—
128
(1) ERRONEOUSLY FERS COVERED.—Any
employee affected by an error described
in section 121 who is determined under
this section to satisfy subsection (b) may
elect—
(A) to be treated in accordance
with section 121; or
(B) to remain FERS covered.
(2) OTHER
CASES.—Any employee af-
fected by an error described in section
122 or 123 who is determined under this
section to satisfy subsection (b) may
elect—
(A) to be treated in accordance
with section 122 or 123 (as applica-
ble); or
(B) to remain (or instead become)
CSRS-Offset covered.
(d) EFFECT OF AN ELECTION TO BE TRANS-
FERRED FROM CSRS TO CSRS-OFFSET.—In the
case of an employee affected by an error de-
scribed in section 123 who elects the option
under subsection (c)(2)(B), the effect of the
election shall be the same as described in sec-
tion 104.
129
(e) DEFAULT RULE.—If the employee does
not make any election within the 6-month pe-
riod beginning on the date on which the ap-
propriate notice is given to such employee,
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 con-
sidered to afford an employee the option 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 elec-
tion) shall be effective retroactive to the effec-
tive date of the retirement coverage error to
which the election relates.
(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 compensation
under subchapter I of chapter 81 of such title
for injury to, or disability of, such employee,
130
subsections (a) and (b) shall be applied by
substituting (for the date that would other-
wise apply) the date as of which entitlement
to such annuity or compensation terminates
(if at all).
(h) NOTIFICATION.—Any notice under sec-
tion 201 shall include such additional infor-
mation or other modifications as the Office of
Personnel Management may by regulation
prescribe in connection with the situations
covered by this subtitle, particularly as they
relate to the consequences 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—
(1) should be (or should have been)
CSRS covered but, as a result of a retire-
ment coverage error, is (or was) FERS
covered instead; or
131
(2) should be (or should have been)
CSRS-Offset covered but, as a result of a
retirement coverage error, is (or was)
FERS covered instead.
(b) UNCORRECTED ERROR.—If, at the time
of making an election under this section, the
retirement coverage error described in para-
graph (1) or (2) of subsection (a) (as applica-
ble) has not been corrected, the employee af-
fected by such error may elect—
(1)(A) in the case of an error de-
scribed in subsection (a)(1), to be CSRS
covered instead; or
(B) in the case of an error described
in subsection (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 re-
tirement coverage error described in para-
graph (1) or (2) of subsection (a) (as applica-
ble) has been corrected, the employee affected
by such error may elect—
(1) to be FERS covered instead; or
132
(2)(A) in the case of an error de-
scribed in subsection (a)(1), to remain
CSRS covered; or
(B) in the case of an error described
in subsection (a)(2), to remain CSRS-Off-
set covered.
(d) DEFAULT RULE.—If the employee is
given written notice in accordance with sec-
tion 201 as to the availability of an election
under this section, but does not make any
such election within the 6-month period be-
ginning 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 elec-
tion) shall be effective retroactive to the effec-
tive date of the retirement coverage error (as
referred to in subsection (a)) to which such
election relates.
133
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 section 131(a)(1) who
elects the option available to such employee
under section 131(b)(1)(A).
(b) 
MAKEUP
CONTRIBUTIONS
TO
THE
CSRDF.—
(1) IN
GENERAL.—Upon notification
that an employee has made an election
under this section, the agency in or
under which such employee is employed
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 coverage
involved under section 8334 of
title 5, United States Code, ex-
ceeds
134
(ii) the amount that was actu-
ally deducted and withheld from
the pay of the employee for the
period of erroneous coverage in-
volved under section 8422 of such
title (and not refunded), over
(B) the amount by which—
(i) the amount of the Govern-
ment contributions actually made
under section 8423 of such title
with respect to the employee for
the period of erroneous coverage
involved, exceeds
(ii) the amount of the Govern-
ment contributions that should
have been made under section
8334 of such title with respect to
the employee for the period of er-
roneous coverage involved.
(2) AGENCY TO BE REIMBURSED FOR CER-
TAIN AMOUNTS.—
(A) IN
GENERAL.—The employee
for whom the payment under para-
graph (1) is made shall repay to the
agency (referred to in paragraph (1))
135
an amount equal to the OASDI em-
ployee taxes refunded or refundable
to such employee for any portion of
the period of erroneous coverage in-
volved (computed in such manner as
the Director of the Office of Person-
nel Management, with the concur-
rence of the Commissioner of Social
Security, shall by regulation pre-
scribe), not to exceed the amount de-
scribed 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 out-
standing is recoverable by the Gov-
ernment from the employee (or the
employee’s estate, if applicable) by—
(i) setoff against accrued pay,
compensation, amount of retire-
ment credit, or another amount
due the employee from the Gov-
ernment; and
(ii) such other method as is
provided by law for the recovery
136
of amounts owing to the Govern-
ment.
The head of the agency concerned
may waive, in whole or in part, a
right of recovery under this para-
graph if it is shown that recovery
would be against equity and good
conscience or against the public in-
terest.
(C) TREATMENT OF AMOUNTS REPAID
OR
RECOVERED.—Any amount repaid
by, or recovered from, an individual
(or an estate) under this paragraph
shall be credited to the appropria-
tion, 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 employee 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 section 131(a)(2) who
137
elects the option available to such employee
under section 131(b)(1)(B).
(b) EFFECT.—The effect of an election re-
ferred to in subsection (a) shall be substan-
tially 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 section 131(a)(1) who
elects the option under section 131(c)(1).
(b) EFFECT.—The effect of an election re-
ferred to in subsection (a) shall be substan-
tially 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 section 131(a)(2) who
elects the option under section 131(c)(1).
138
(b) EFFECT.—The effect of an election re-
ferred to in subsection (a) shall be substan-
tially the same as that described in section
103.
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 indi-
vidual to whom an election under section
846.204 of title 5 of the Code of Federal Regu-
lations (as in effect as of January 1, 1997) was
made available in connection with the same
error pursuant to notification provided in ac-
cordance 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
139
but, as a result of a retirement coverage 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, effec-
tive retroactive to the effective date of such
error.
(c) CORRECTED ERROR.—If the error has
been corrected, the correction shall (to the ex-
tent not already carried out) be made effec-
tive 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 pre-
scribe 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
140
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 making an election under this section, the
retirement coverage error described in sub-
section (a) has not been corrected, the em-
ployee 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 re-
tirement coverage error described in sub-
section (a) has been corrected, the employee
affected by such error may elect—
(1) to be CSRS-Offset covered instead;
or
(2) to remain CSRS covered.
(d) DEFAULT RULE.—If the employee is
given written notice in accordance with sec-
tion 201 as to the availability of an election
under this section, but does not make any
such election within the 6-month period be-
ginning on the date on which such notice is
so given, the option under subsection (b)(2) or
141
(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 elec-
tion) shall be effective retroactive to the effec-
tive 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 section 151(a) who
elects the option available to such employee
under section 151(b)(1).
(b) 
MAKEUP
CONTRIBUTIONS
TO
THE
CSRDF.—
(1) IN
GENERAL.—Upon notification
that an employee has made an election
under this section, the agency in or
under which such employee is employed
142
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 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 (by virtue of being CSRS cov-
ered), exceeds
(B) any amounts actually de-
ducted and withheld from the pay of
the employee for the period of erro-
neous coverage involved under such
section (pursuant to CSRS-Offset cov-
erage).
(2) AGENCY TO BE REIMBURSED FOR CER-
TAIN AMOUNTS.—
(A) IN
GENERAL.—The employee
for whom the payment under para-
graph (1) is made shall repay to the
agency (referred to in paragraph (1))
an amount equal to the OASDI em-
ployee taxes refunded or refundable
to such employee for any portion of
143
the period of erroneous coverage in-
volved (computed in such manner as
the Director of the Office of Person-
nel Management, with the concur-
rence of the Commissioner of Social
Security, shall by regulation pre-
scribe), not to exceed the amount de-
scribed 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 out-
standing is recoverable by the Gov-
ernment from the employee (or the
employee’s estate, if applicable) by—
(i) setoff against accrued pay,
compensation, amount of retire-
ment credit, or another amount
due the employee from the Gov-
ernment; and
(ii) such other method as is
provided by law for the recovery
of amounts owing to the Govern-
ment.
144
The head of the agency concerned
may waive, in whole or in part, a
right of recovery under this para-
graph if it is shown that recovery
would be against equity and good
conscience or against the public in-
terest.
(C) TREATMENT OF AMOUNTS REPAID
OR
RECOVERED.—Any amount repaid
by, or recovered from, an individual
(or an estate) under this paragraph
shall be credited to the appropria-
tion, fund, or account from which the
amount involved was originally paid.
(3) DEPOSIT TO BE BASED ON AMOUNT OF
REFUND
ACTUALLY
RECEIVED.—For 
pur-
poses of applying sections 8334(d)(1) and
8339(i) of title 5, United States Code, in
the case of an employee described in sub-
section (a) who has received a refund of
deductions that are attributable to a pe-
riod when the employee was erroneously
CSRS-Offset covered, nothing in either of
those sections shall be considered to re-
quire that, in order to receive credit for
145
that period as a CSRS-covered employee,
a deposit be made in excess of the refund
actually received for such period, plus in-
terest.
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 section 151(a) who
elects the option available to such employee
under section 151(c)(1).
(b) DISPOSITION OF CONTRIBUTIONS TO THE
CSRDF.—In the case of an employee de-
scribed in subsection (a), the provisions of
section 102(b) shall apply, except that, in ap-
plying such provisions—
(1) ‘‘the applicable provisions of sec-
tion 8334’’ shall be substituted for ‘‘sec-
tion 
8422’’ 
in 
paragraph 
(1)(B)(ii)(II)
thereof; and
(2) ‘‘the applicable provisions of sec-
tion 8334’’ shall be substituted for ‘‘sec-
tion 
8423’’ 
in 
paragraph 
(2)(B)(ii)(II)
thereof.
146
Subtitle G—Additional Provisions
Relating to Government Agencies
SEC. 161. REPAYMENT REQUIRED IN CERTAIN SITUATIONS.
(a) IN GENERAL.—An individual who pre-
viously received a payment ordered by a
court or provided as a settlement of claim for
losses resulting from a retirement coverage
error shall not be entitled to make an election
under this 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 section shall be made in accordance with
regulations prescribed by the Office.
SEC. 162. EQUITABLE SHARING OF AMOUNTS PAYABLE
FROM THE GOVERNMENT IF MORE THAN ONE
AGENCY INVOLVED.
The Office of Personnel Management shall
by regulation prescribe rules under which, in
the case of an employee who has been em-
ployed in or under more than 1 agency since
the date of the retirement coverage error in-
volved (and before its rectification under this
147
Act), any contributions or other amounts re-
quired to be paid from the then current em-
ploying agency (other than lost earnings
under section 163(a)(2)) shall be equitably al-
located between or among the appropriate
agencies.
SEC. 163. PROVISIONS RELATING TO THE ORIGINAL RE-
SPONSIBLE AGENCY.
(a) OBLIGATIONS OF THE ORIGINAL RESPON-
SIBLE AGENCY.—
(1) EXPENSES FOR SERVICES OF FINAN-
CIAL
ADVISOR.—The Office of Personnel
Management shall by regulation pre-
scribe 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 section) shall pay (or
make reimbursement for) any reasonable
expenses incurred by such employee for
services received from any licensed fi-
nancial or legal consultant or advisor in
connection with such election.
(2) SPECIAL
RULE.—Such regulations
shall also include provisions to ensure
148
that, to the extent lost earnings under
the Thrift Savings Fund are involved in
connection with a particular error, the
original responsible agency shall pay (or
reimburse any other agency that pays)
any amounts to the Thrift Savings Fund
representing lost earnings with respect
to such error.
(b) ORIGINAL
RESPONSIBLE
AGENCY
DE-
FINED.—For purposes of this Act, the term
‘‘original responsible agency’’, with respect to
a retirement coverage error affecting an em-
ployee, means—
(1) except in the situation described
in paragraph (2), the agency determined
by the Office of Personnel Management
to have made the initial retirement cov-
erage error (including one made before
January 1, 1984); or
(2) if the error is attributable, in
whole or in part, to an erroneous regula-
tion promulgated by the Office of Person-
nel Management, such Office.
(c) PROCEDURES
FOR
IDENTIFYING
THE
ORIGINAL RESPONSIBLE AGENCY.—
149
(1) IN GENERAL.—For purposes of this
section, the original responsible agency,
in any situation to which this section ap-
plies, 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 identi-
fied as the original responsible agency no
longer exists (whether because of a reorga-
nization or otherwise)—
(1) the successor agency (as deter-
mined under regulations prescribed by
the Office) shall be treated as the original
responsible agency; or
(2) if none, this section shall be ap-
plied by substituting the CSRDF for the
original responsible agency.
(e) SOURCE OF PAYMENTS IF ERROR DUE TO
ERRONEOUS OPM REGULATIONS.—In any case
150
in which the Office of Personnel Management
is the original responsible agency by reason
of subsection (b)(2), any amounts payable
from the Office under this section shall be
payable from the CSRDF.
TITLE II—GENERAL PROVISIONS
SEC. 201. IDENTIFICATION AND NOTIFICATION REQUIRE-
MENTS.
(a) IN GENERAL.—The Office of Personnel
Management 
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 re-
tirement coverage under this Act shall be
promptly identified and notified in accord-
ance with this section.
(b) MATTER TO BE INCLUDED IN NOTICE TO
INDIVIDUALS.—Any notice furnished under this
section shall be made in writing and shall in-
clude at least the following:
(1) DESCRIPTION OF ERROR.—A descrip-
tion of the error involved, including a
clear and concise explanation as to why
151
the original retirement coverage deter-
mination was erroneous, citations to (and
a summary description of) the pertinent
provisions of law, and how that deter-
mination 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, the time,
form, and manner in which that change
will be effected) or an election.
(3) ELECTION PROCEDURES, ETC.—If an
election is provided under this Act, all
relevant information as to how such an
election may be made, the options avail-
able, 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 re-
spect to the (or each) retirement system
by which the individual is then covered
152
(disregarding the Thrift Savings Plan),
and to the extent applicable:
(A) A brief summary of any bene-
fits accrued.
(B) The amount of employee con-
tributions made to date and the effect
of any applicable disposition rules re-
lating thereto (including provisions
relating to excess amounts or short-
falls).
(C) The amount of any Govern-
ment contributions made to date and
the effect of any applicable disposi-
tion rules relating thereto (including
provisions relating to excess amounts
or shortfalls).
(5) THRIFT
SAVINGS
FUND.—With re-
spect to the Thrift Savings Fund, the bal-
ance that then is (or would be) credited
to the individual’s account depending on
the option chosen, with any such balance
to be shown both in the aggregate and
broken down by—
(A) individual contributions,
153
(B) automatic (1 percent) Govern-
ment contributions, and
(C) matching Government con-
tributions,
including lost earnings on each and the
extent to which any makeup contribu-
tions or forfeitures would be involved.
(6) OASDI BENEFITS.—Such informa-
tion regarding benefits under title II of
the Social Security Act as the Commis-
sioner of Social Security considers appro-
priate.
(7) OTHER
INFORMATION.—Any other
information that the Director of the Of-
fice of Personnel Management may by
regulation prescribe after consultation
with the Executive Director of the Fed-
eral Retirement Thrift Investment Board
and such other agency heads as the Di-
rector considers appropriate, including
any appeal rights available to the indi-
vidual.
(c) COMPARISONS.—Any amounts required
to be included under subsection (b)(4) shall,
154
with respect to the respective retirement sys-
tems involved, be determined—
(1) as of the date the retirement cov-
erage error was corrected (if applicable);
(2) as of the then most recent date for
which those benefits and amounts are as-
certainable, assuming no change in re-
tirement coverage; and
(3) as of the then most recent date for
which those benefits and amounts are as-
certainable, assuming the alternative op-
tion 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 regula-
tions 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.
155
(b) NOTIFICATION APPEALS.—The Office of
Personnel Management shall by regulation es-
tablish procedures under which individuals
may bring an appeal to the Office with re-
spect to any failure to have been properly no-
tified 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 identi-
fied in this subsection are:
(1) The Director of the Office of Per-
sonnel Management.
(2) The Commissioner of Social Secu-
rity.
(3) The Executive Director of the Fed-
eral Retirement 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 information nec-
essary to enable such authority to carry out
its responsibilities under this Act. Upon re-
156
quest of the authority involved, the head of
the department or agency involved shall fur-
nish that information to the requesting au-
thority.
(c) LIMITATION; SAFEGUARDS.—Each of the
respective authorities under subsection (a)—
(1) shall request only such informa-
tion as that authority considers nec-
essary; and
(2) shall establish, by regulation or
otherwise, appropriate safeguards to en-
sure that any information obtained under
this section shall be used only for the
purpose authorized.
SEC. 204. SOCIAL SECURITY RECORDS.
Notwithstanding any limitations in sec-
tion 205 of the Social Security Act regarding
the modification of wage records maintained
by the Commissioner of Social Security for
purposes of title II of such Act, the Commis-
sioner 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 em-
ployee to the extent necessary to carry out the
157
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 semi-
colon and inserting ‘‘, or’’; and
(3) by adding at the end the follow-
ing:
‘‘(iii)(I) described in section
111(a)(3) of the Federal Retire-
ment Coverage Corrections 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 indi-
158
vidual 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 individ-
ual 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 amend-
ed—
(1) in clause (i) by striking ‘‘or’’ at the
end;
(2) in clause (ii) by striking the semi-
colon and inserting ‘‘, or’’; and
(3) by adding at the end the follow-
ing:
‘‘(iii)(I) described in section
111(a)(3) of the Federal Retire-
ment Coverage Corrections Act,
on or after the effective date of an
election (or deemed election) by
such 
individual 
under 
section
111(b)(2) of such Act,
159
‘‘(II) 
described 
in 
section
131(a)(1) of such Act, on or after
the effective date of an election
(or deemed election) by such indi-
vidual 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 individ-
ual under subsection (b)(2) or
(c)(1) of section 151 of such Act;’’.
SEC. 206. REGULATIONS.
(a) IN
GENERAL.—Any regulations nec-
essary to carry out this Act shall be pre-
scribed by the Director of the Office of Per-
sonnel Management, the Executive Director
of the Federal Retirement Thrift Investment
Board, the Commissioner of Social Security,
the Secretary of the Treasury, and any other
appropriate authority, with respect to mat-
ters within their respective areas of jurisdic-
tion.
160
(b) MATTERS TO BE INCLUDED.—The regula-
tions prescribed by the Director of the Office
of Personnel Management shall include at
least the following:
(1) FORMER
EMPLOYEES, ANNUITANTS,
AND SURVIVOR ANNUITANTS.—
(A) IN GENERAL.—Provisions under
which, to the maximum extent prac-
ticable 
and 
in 
appropriate 
cir-
cumstances, any election available to
an employee under subtitle A, B, D, or
F of title I shall be available to a
former employee, annuitant, or sur-
vivor annuitant.
(B) SUBTITLE C SITUATIONS.—Provi-
sions under which subtitle C of title I
shall apply in the case of a former
employee.
(C) SUBTITLE E SITUATIONS.—Provi-
sions under which the purposes of
this paragraph shall be carried with
respect to any situation under sub-
title E of title I.
(2) 
FORMER
SPOUSES.—Provisions
under 
which 
appropriate 
notification
161
shall be afforded to any former spouse af-
fected by a change in retirement cov-
erage pursuant to this Act.
(3) PROCEDURAL
REQUIREMENTS.—Pro-
visions establishing the procedural re-
quirements in accordance with which
any determinations under this Act (not
otherwise addressed in this Act) shall be
made, in conformance with the require-
ments of this Act.
(4) AUTHORITY TO MAKE ACTUARIAL RE-
DUCTION IN ANNUITY BY REASON OF CERTAIN
UNPAID
AMOUNTS.—Provisions 
under
which any payment required to be made
by an individual to the Government in
order to make an election under this Act
which remains unpaid may be made by a
reduction in the appropriate annuity or
survivor annuity. The reduction shall, to
the extent practicable, be designed so
that the present value of the future re-
duction is actuarially equivalent to the
amount so required.
(c) DEFINITIONS.—For purposes of this sec-
tion—
162
(1) the term ‘‘annuitant’’ means any
individual who is an annuitant as defined
by section 8331(9) or 8401(2) of title 5,
United States Code; and
(2) the term ‘‘former employee’’ in-
cludes any former employee who satisfies
the service requirement for title to a de-
ferred annuity under chapter 83 or 84 of
such title 5 (as applicable), but—
(A) has not attained the minimum
age required for title to such an an-
nuity; or
(B) has not filed claim therefor.
(d) COORDINATION RULE.—In prescribing
regulations to carry out this Act, the Director
of the Office of Personnel Management shall
consult with—
(1) the Administrative Office of the
United States Courts;
(2) the Clerk of the House of Rep-
resentatives;
(3) the Sergeant at Arms and Door-
keeper of the Senate; and
(4) other appropriate officers or au-
thorities.
163
(e) EFFECTIVE DATE.—All regulations nec-
essary to carry out this Act shall take effect
as of the first day of the first month beginning
after the end of the 6-month period beginning
on the date of enactment of this Act.
SEC. 207. ALL ELECTIONS TO BE APPROVED BY OPM.
Notwithstanding any other provision of
this Act, no election under this Act (other
than an election by default) may be given ef-
fect until the Office of Personnel Management
has determined, in writing, that such election
is in compliance with the requirements of this
Act.
SEC. 208. ADDITIONAL TRANSFERS TO OASDI TRUST FUNDS
IN CERTAIN CASES.
If the Commissioner of Social Security de-
termines that the payment of the OASDI taxes
described in this Act did not result in a credit
to the OASDI trust funds of an equal amount,
the Commissioner of Social Security shall no-
tify the Secretary of the Treasury of the
amount of any shortfall. Promptly upon re-
ceiving such notification, the Secretary of the
Treasury shall transfer an amount equal to
164
such shortfall from the general fund of the
Treasury to the OASDI trust funds.
SEC. 209. TECHNICAL AND CONFORMING AMENDMENTS.
(a) AMENDMENT RELATING TO LIMITATION ON
SOURCES FROM WHICH CONTRIBUTIONS TO THE
THRIFT SAVINGS FUND ARE ALLOWED.—Section
8432(h) of title 5, United States Code, is
amended by striking ‘‘title.’’ and inserting
‘‘title or the Federal Retirement Coverage
Corrections Act.’’.
(b) DESCRIPTION OF AMOUNTS COMPRISING
THE THRIFT SAVINGS FUND.—Section 8437(b) of
title 5, United States Code, is amended by
striking 
‘‘expenses).’’ 
and 
inserting 
‘‘ex-
penses), as well as contributions under the
Federal Retirement Coverage Corrections Act
(and lost earnings made up under such Act).’’.
(c) ADMINISTRATIVE EXPENSES.—
(1) 
THRIFT
SAVINGS
PLAN.—Section
8437(d) of title 5, United States Code, is
amended by inserting ‘‘(including the
provisions of the Federal Retirement
Coverage Corrections Act that relate to
this subchapter)’’ after ‘‘this subchapter’’.
165
(2) CSRS, CSRS-OFFSET, FERS.—Section
8348(a)(2) of title 5, United States Code, is
amended by striking ‘‘statutes;’’ and in-
serting ‘‘statutes (including the provi-
sions of the Federal Retirement Coverage
Corrections Act that relate to this sub-
chapter);’’.
(3) MSPB.—Section 8348(a)(3) of title
5, United States Code, is amended by
striking ‘‘title.’’ and inserting ‘‘title and
the Federal Retirement Coverage Correc-
tions Act.’’.
TITLE III—OTHER PROVISIONS
SEC. 301. PROVISIONS TO PERMIT CONTINUED CONFORM-
ITY OF OTHER FEDERAL RETIREMENT SYS-
TEMS.
(a) FOREIGN SERVICE.—The Secretary of
State shall issue regulations to provide for the
application of the provisions of this Act in a
like manner with respect to participants, an-
nuitants, or survivors under the Foreign Serv-
ice Retirement and Disability System or the
Foreign Service Pension System (as applica-
ble), except that—
166
(1) any individual aggrieved by a
final determination shall appeal such de-
termination to the Foreign Service Griev-
ance Board instead of the Merit Systems
Protection Board under section 202; and
(2) the Secretary of State shall per-
form the functions and exercise the au-
thority vested in the Office of Personnel
Management or the Director of the Office
of Personnel Management under this Act.
(b) CENTRAL INTELLIGENCE AGENCY.—Sec-
tions 292 and 301 of the Central Intelligence
Agency Retirement Act (50 U.S.C. 2141 and
2151) shall apply with respect to this Act in
the same manner as if this Act were part of—
(1) the Civil Service Retirement Sys-
tem, to the extent this Act relates to the
Civil Service Retirement System; and
(2) the Federal Employees’ Retire-
ment System, to the extent this Act re-
lates to the Federal Employees’ Retire-
ment System.
167
SEC. 302. PROVISIONS TO PREVENT REDUCTIONS IN FORCE
AND ANY UNFUNDED LIABILITY IN THE
CSRDF.
(a) PROVISIONS TO PREVENT REDUCTIONS IN
FORCE.—
(1) LIMITATION.—An agency required
to make any payments under this Act
may not conduct any reduction in force
solely by reason of any current or antici-
pated lack of funds attributable to such
payments.
(2) ALTERNATIVE
REQUIRED.—In the
circumstance described in paragraph (1),
any cost savings that (but for this sub-
section) 
would 
otherwise 
be 
sought
through reductions in force shall instead
be achieved through attrition and limita-
tions on hiring.
(b) PROVISIONS TO PREVENT UNFUNDED LI-
ABILITY.—
(1) IN GENERAL.—For purposes of sec-
tion 8348(f) of title 5, United States Code,
any unfunded liability in the CSRDF cre-
ated as a result of an election made (or
deemed to have been made) under this
Act, as determined by the Office of Per-
168
sonnel Management, shall be considered
a new benefit payable from the CSRDF.
(2) COORDINATION
RULE.—Paragraph
(1) shall not apply to the extent that sub-
section (h), (i), or (m) of section 8348 of
title 5, United States Code, would other-
wise apply.
SEC. 303. INDIVIDUAL RIGHT OF ACTION PRESERVED FOR
AMOUNTS NOT OTHERWISE PROVIDED FOR
UNDER THIS ACT.
Nothing in this Act shall preclude an indi-
vidual from bringing a claim against the Gov-
ernment of the United States which such indi-
vidual may have under section 1346(b) or
chapter 171 of title 28, United States Code, or
any other provision of law (except to the ex-
tent the claim is for any amounts otherwise
provided for under this Act).
SEC. 304. EXTENSION OF OPEN ENROLLMENT PERIOD TO
EMPLOYEES UNDER THE FOREIGN SERVICE
RETIREMENT AND DISABILITY SYSTEM.
Section 860 of the Foreign Service Act of
1980 (22 U.S.C. 4071i) is amended by inserting
after the first sentence the following: ‘‘The
Secretary of State shall, in addition, issue reg-
169
ulations providing for an election for cov-
erage under the Foreign Service Pension Sys-
tem for employees covered under the Foreign
Service Retirement and Disability System
comparable to the election provided for by
the Federal Employees’ Retirement System
Open Enrollment Act of 1997.’’.
TITLE IV—TAX PROVISIONS
SEC. 401. TAX PROVISIONS.
(a) PLAN QUALIFICATION.—No retirement
plan of the United States (or any agency
thereof) shall fail to be treated as a qualified
plan under the Internal Revenue Code of 1986
by reason of any action taken under this Act.
(b) TRANSFERS.—For purposes of the Inter-
nal Revenue Code of 1986, no amount shall be
includible in the gross income of any individ-
ual by reason of any direct transfer under this
Act between funds or any Government con-
tribution under this Act to any fund or ac-
count, and no amount shall be subject to tax
under subtitle C of such Code by reason of
any such transfer or contribution.