In the Senate of the United States,
July 25, 2000.
Resolved, That the bill from the House of Representa-
tives (H.R. 4040) entitled ‘‘An Act to amend title 5, United
States Code, to provide for the establishment of a program
under which long-term care insurance is made available to
Federal employees, members of the uniformed services, and
civilian and military retirees, and for other purposes.’’, do
pass with the following
AMENDMENTS:
Strike out all after the enacting clause and insert:
TITLE I—FEDERAL LONG-TERM
CARE INSURANCE
SEC. 1001. SHORT TITLE.
This title may be cited as the ‘‘Long-Term Care Secu-
rity Act’’.
SEC. 1002. LONG-TERM CARE INSURANCE.
(a) IN GENERAL.—Subpart G of part III of title 5,
United States Code, is amended by adding at the end the
following:
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‘‘CHAPTER 90—LONG-TERM CARE
INSURANCE
‘‘Sec.
‘‘9001. Definitions.
‘‘9002. Availability of insurance.
‘‘9003. Contracting authority.
‘‘9004. Financing.
‘‘9005. Preemption.
‘‘9006. Studies, reports, and audits.
‘‘9007. Jurisdiction of courts.
‘‘9008. Administrative functions.
‘‘9009. Cost accounting standards.
‘‘§ 9001. Definitions
For purposes of this chapter:
‘‘(1) EMPLOYEE.—The term ‘employee’ means—
‘‘(A) an employee as defined by section
8901(1); and
‘‘(B) an individual described in section
2105(e),
but does not include an individual employed by the
government of the District of Columbia.
‘‘(2) ANNUITANT.—The term ‘annuitant’ has the
meaning such term would have under paragraph (3)
of section 8901 if, for purposes of such paragraph, the
term ‘employee’ were considered to have the meaning
given to it under paragraph (1) of this subsection.
‘‘(3) MEMBER OF THE UNIFORMED SERVICES.—
The term ‘member of the uniformed services’ means a
member of the uniformed services, other than a retired
member of the uniformed services, who is—
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‘‘(A) on active duty or full-time National
Guard duty for a period of more than 30 days;
and
‘‘(B) a member of the Selected Reserve.
‘‘(4) RETIRED
MEMBER
OF
THE
UNIFORMED
SERVICES.—The term ‘retired member of the uni-
formed services’ means a member or former member
of the uniformed services entitled to retired or re-
tainer pay, including a member or former member re-
tired under chapter 1223 of title 10 who has attained
the age of 60 and who satisfies such eligibility re-
quirements as the Office of Personnel Management
prescribes under section 9008.
‘‘(5) QUALIFIED RELATIVE.—The term ‘qualified
relative’ means each of the following:
‘‘(A) The spouse of an individual described
in paragraph (1), (2), (3), or (4).
‘‘(B) A parent, stepparent, or parent-in-law
of an individual described in paragraph (1) or
(3).
‘‘(C) A child (including an adopted child, a
stepchild, or, to the extent the Office of Personnel
Management by regulation provides, a foster
child) of an individual described in paragraph
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(1), (2), (3), or (4), if such child is at least 18
years of age.
‘‘(D) An individual having such other rela-
tionship to an individual described in paragraph
(1), (2), (3), or (4) as the Office may by regula-
tion prescribe.
‘‘(6) ELIGIBLE INDIVIDUAL.—The term ‘eligible
individual’ refers to an individual described in para-
graph (1), (2), (3), (4), or (5).
‘‘(7) QUALIFIED CARRIER.—The term ‘qualified
carrier’ means an insurance company (or consortium
of insurance companies) that is licensed to issue long-
term care insurance in all States, taking any subsidi-
aries of such a company into account (and, in the
case of a consortium, considering the member compa-
nies and any subsidiaries thereof, collectively).
‘‘(8) STATE.—The term ‘State’ includes the Dis-
trict of Columbia.
‘‘(9) QUALIFIED
LONG-TERM
CARE
INSURANCE
CONTRACT.—The term ‘qualified long-term care insur-
ance contract’ has the meaning given such term by
section 7702B of the Internal Revenue Code of 1986.
‘‘(10) APPROPRIATE SECRETARY.—The term ‘ap-
propriate Secretary’ means—
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‘‘(c) DOCUMENTATION REQUIREMENT.—As a condition
for obtaining long-term care insurance coverage under this
chapter based on one’s status as a qualified relative, an ap-
plicant shall provide documentation to demonstrate the re-
lationship, as prescribed by the Office.
‘‘(d) UNDERWRITING STANDARDS.—
‘‘(1) DISQUALIFYING
CONDITION.—Nothing in
this chapter shall be considered to require that long-
term care insurance coverage be made available in the
case of any individual who would be eligible for bene-
fits immediately.
‘‘(2) SPOUSAL PARITY.—For the purpose of un-
derwriting standards, a spouse of an individual de-
scribed in paragraph (1), (2), (3), or (4) of section
9001 shall, as nearly as practicable, be treated like
that individual.
‘‘(3) GUARANTEED
ISSUE.—Nothing in this
chapter shall be considered to require that long-term
care insurance coverage be guaranteed to an eligible
individual.
‘‘(4) REQUIREMENT THAT CONTRACT BE FULLY
INSURED.—In addition to the requirements otherwise
applicable under section 9001(9), in order to be con-
sidered a qualified long-term care insurance contract
for purposes of this chapter, a contract must be fully
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insured, whether through reinsurance with other com-
panies or otherwise.
‘‘(5) HIGHER STANDARDS ALLOWABLE.—Nothing
in this chapter shall, in the case of an individual ap-
plying for long-term care insurance coverage under
this chapter after the expiration of such individual’s
first opportunity to enroll, preclude the application of
underwriting standards more stringent than those
that would have applied if that opportunity had not
yet expired.
‘‘(e) GUARANTEED RENEWABILITY.—The benefits and
coverage made available to eligible individuals under any
insurance contract under this chapter shall be guaranteed
renewable (as defined by section 7A(2) of the model regula-
tions described in section 7702B(g)(2) of the Internal Rev-
enue Code of 1986), including the right to have insurance
remain in effect so long as premiums continue to be timely
made. However, the authority to revise premiums under
this chapter shall be available only on a class basis and
only to the extent otherwise allowable under section 9003(b).
‘‘§ 9003. Contracting authority
‘‘(a) IN GENERAL.—The Office of Personnel Manage-
ment shall, without regard to section 5 of title 41 or any
other statute requiring competitive bidding, contract with
one or more qualified carriers for a policy or policies of
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long-term care insurance. The Office shall ensure that each
resulting contract (hereafter in this chapter referred to as
a ‘master contract’) is awarded on the basis of contractor
qualifications, price, and reasonable competition.
‘‘(b) TERMS AND CONDITIONS.—
‘‘(1) IN GENERAL.—Each master contract under
this chapter shall contain—
‘‘(A) a detailed statement of the benefits of-
fered (including any maximums, limitations, ex-
clusions, and other definitions of benefits);
‘‘(B) the premiums charged (including any
limitations or other conditions on their subse-
quent adjustment);
‘‘(C) the terms of the enrollment period; and
‘‘(D) such other terms and conditions as
may be mutually agreed to by the Office and the
carrier involved, consistent with the requirements
of this chapter.
‘‘(2) PREMIUMS.—Premiums charged under each
master contract entered into under this section shall
reasonably and equitably reflect the cost of the benefits
provided, as determined by the Office. The premiums
shall not be adjusted during the term of the contract
unless mutually agreed to by the Office and the car-
rier.
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‘‘(3) 
NONRENEWABILITY.—Master 
contracts
under this chapter may not be made automatically
renewable.
‘‘(c) PAYMENT
OF REQUIRED BENEFITS; DISPUTE
RESOLUTION.—
‘‘(1) IN GENERAL.—Each master contract under
this chapter shall require the carrier to agree—
‘‘(A) to provide payments or benefits to an
eligible individual if such individual is entitled
thereto under the terms of the contract; and
‘‘(B) with respect to disputes regarding
claims for payments or benefits under the terms
of the contract—
‘‘(i) to establish internal procedures de-
signed to expeditiously resolve such dis-
putes; and
‘‘(ii) to establish, for disputes not re-
solved through procedures under clause (i),
procedures for one or more alternative
means of dispute resolution involving inde-
pendent third-party review under appro-
priate circumstances by entities mutually
acceptable to the Office and the carrier.
‘‘(2) ELIGIBILITY.—A carrier’s determination as
to whether or not a particular individual is eligible
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to obtain long-term care insurance coverage under
this chapter shall be subject to review only to the ex-
tent and in the manner provided in the applicable
master contract.
‘‘(3) OTHER CLAIMS.—For purposes of applying
the Contract Disputes Act of 1978 to disputes arising
under this chapter between a carrier and the Office—
‘‘(A) the agency board having jurisdiction
to decide an appeal relative to such a dispute
shall be such board of contract appeals as the Di-
rector of the Office of Personnel Management
shall specify in writing (after appropriate ar-
rangements, as described in section 8(c) of such
Act); and
‘‘(B) the district courts of the United States
shall have original jurisdiction, concurrent with
the United States Court of Federal Claims, of
any action described in section 10(a)(1) of such
Act relative to such a dispute.
‘‘(4) RULE OF CONSTRUCTION.—Nothing in this
chapter shall be considered to grant authority for the
Office or a third-party reviewer to change the terms
of any contract under this chapter.
‘‘(d) DURATION.—
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‘‘(1) IN GENERAL.—Each master contract under
this chapter shall be for a term of 7 years, unless ter-
minated earlier by the Office in accordance with the
terms of such contract. However, the rights and re-
sponsibilities of the enrolled individual, the insurer,
and the Office (or duly designated third-party admin-
istrator) under such contract shall continue with re-
spect to such individual until the termination of cov-
erage of the enrolled individual or the effective date
of a successor contract thereto.
‘‘(2) EXCEPTION.—
‘‘(A) SHORTER DURATION.—In the case of a
master contract entered into before the end of the
period described in subparagraph (B), para-
graph (1) shall be applied by substituting ‘end-
ing on the last day of the 7-year period described
in paragraph (2)(B)’ for ‘of 7 years’.
‘‘(B) DEFINITION.—The period described in
this subparagraph is the 7-year period beginning
on the earliest date as of which any long-term
care insurance coverage under this chapter be-
comes effective.
‘‘(3) CONGRESSIONAL
NOTIFICATION.—No later
than 180 days after receiving the second report re-
quired under section 9006(c), the President (or his
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designee) shall submit to the Committees on Govern-
ment Reform and on Armed Services of the House of
Representatives and the Committees on Governmental
Affairs and on Armed Services of the Senate, a writ-
ten recommendation as to whether the program under
this chapter should be continued without modifica-
tion, terminated, or restructured. During the 180-day
period following the date on which the President (or
his designee) submits the recommendation required
under the preceding sentence, the Office of Personnel
Management may not take any steps to rebid or oth-
erwise contract for any coverage to be available at
any time following the expiration of the 7-year period
described in paragraph (2)(B).
‘‘(4) FULL PORTABILITY.—Each master contract
under this chapter shall include such provisions as
may be necessary to ensure that, once an individual
becomes duly enrolled, long-term care insurance cov-
erage obtained by such individual pursuant to that
enrollment shall not be terminated due to any change
in status (such as separation from Government serv-
ice or the uniformed services) or ceasing to meet the
requirements for being considered a qualified relative
(whether as a result of dissolution of marriage or oth-
erwise).
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‘‘§ 9004. Financing
‘‘(a) IN GENERAL.—Each eligible individual obtaining
long-term care insurance coverage under this chapter shall
be responsible for 100 percent of the premiums for such cov-
erage.
‘‘(b) WITHHOLDINGS.—
‘‘(1) IN
GENERAL.—The amount necessary to
pay the premiums for enrollment may—
‘‘(A) in the case of an employee, be withheld
from the pay of such employee;
‘‘(B) in the case of an annuitant, be with-
held from the annuity of such annuitant;
‘‘(C) in the case of a member of the uni-
formed services described in section 9001(3), be
withheld from the pay of such member; and
‘‘(D) in the case of a retired member of the
uniformed services described in section 9001(4),
be withheld from the retired pay or retainer pay
payable to such member.
‘‘(2) VOLUNTARY WITHHOLDINGS FOR QUALIFIED
RELATIVES.—Withholdings to pay the premiums for
enrollment of a qualified relative may, upon election
of the appropriate eligible individual (described in
section 9001(1)–(4)), be withheld under paragraph
(1) to the same extent and in the same manner as if
enrollment were for such individual.
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‘‘(c) DIRECT PAYMENTS.—All amounts withheld under
this section shall be paid directly to the carrier.
‘‘(d) OTHER FORMS OF PAYMENT.—Any enrollee who
does not elect to have premiums withheld under subsection
(b) or whose pay, annuity, or retired or retainer pay (as
referred to in subsection (b)(1)) is insufficient to cover the
withholding required for enrollment (or who is not receiving
any regular amounts from the Government, as referred to
in subsection (b)(1), from which any such withholdings may
be made, and whose premiums are not otherwise being pro-
vided for under subsection (b)(2)) shall pay an amount
equal to the full amount of those charges directly to the car-
rier.
‘‘(e) SEPARATE ACCOUNTING REQUIREMENT.—Each
carrier participating under this chapter shall maintain
records that permit it to account for all amounts received
under this chapter (including investment earnings on those
amounts) separate and apart from all other funds.
‘‘(f) REIMBURSEMENTS.—
‘‘(1) REASONABLE INITIAL COSTS.—
‘‘(A) IN
GENERAL.—The Employees’ Life
Insurance Fund is available, without fiscal year
limitation, for reasonable expenses incurred by
the Office of Personnel Management in admin-
istering this chapter before the start of the 7-year
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period described in section 9003(d)(2)(B), in-
cluding reasonable implementation costs.
‘‘(B) REIMBURSEMENT
REQUIREMENT.—
Such Fund shall be reimbursed, before the end of
the first year of that 7-year period, for all
amounts obligated or expended under subpara-
graph (A) (including lost investment income).
Such reimbursement shall be made by carriers,
on a pro rata basis, in accordance with appro-
priate provisions which shall be included in
master contracts under this chapter.
‘‘(2) SUBSEQUENT COSTS.—
‘‘(A) IN GENERAL.—There is hereby estab-
lished in the Employees’ Life Insurance Fund a
Long-Term Care Administrative Account, which
shall be available to the Office, without fiscal
year limitation, to defray reasonable expenses in-
curred by the Office in administering this chap-
ter after the start of the 7-year period described
in section 9003(d)(2)(B).
‘‘(B) REIMBURSEMENT
REQUIREMENT.—
Each master contract under this chapter shall
include appropriate provisions under which the
carrier involved shall, during each year, make
such periodic contributions to the Long-Term
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Care Administrative Account as necessary to en-
sure that the reasonable anticipated expenses of
the Office in administering this chapter during
such year (adjusted to reconcile for any earlier
overestimates or underestimates under this sub-
paragraph) are defrayed.
‘‘§ 9005. Preemption
‘‘The terms of any contract under this chapter which
relate to the nature, provision, or extent of coverage or bene-
fits (including payments with respect to benefits) shall su-
persede and preempt any State or local law, or any regula-
tion issued thereunder, which relates to long-term care in-
surance or contracts.
‘‘§ 9006. Studies, reports, and audits
‘‘(a) PROVISIONS RELATING
TO CARRIERS.—Each
master contract under this chapter shall contain provisions
requiring the carrier—
‘‘(1) to furnish such reasonable reports as the Of-
fice of Personnel Management determines to be nec-
essary to enable it to carry out its functions under
this chapter; and
‘‘(2) to permit the Office and representatives of
the General Accounting Office to examine such records
of the carrier as may be necessary to carry out the
purposes of this chapter.
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‘‘(b) PROVISIONS
RELATING
TO
FEDERAL
AGEN-
CIES.—Each Federal agency shall keep such records, make
such certifications, and furnish the Office, the carrier, or
both, with such information and reports as the Office may
require.
‘‘(c) REPORTS BY THE GENERAL ACCOUNTING OF-
FICE.—The General Accounting Office shall prepare and
submit to the President, the Office of Personnel Manage-
ment, and each House of Congress, before the end of the
third and fifth years during which the program under this
chapter is in effect, a written report evaluating such pro-
gram. Each such report shall include an analysis of the
competitiveness of the program, as compared to both group
and individual coverage generally available to individuals
in the private insurance market. The Office shall cooperate
with the General Accounting Office to provide periodic eval-
uations of the program.
‘‘§ 9007. Jurisdiction of courts
‘‘The district courts of the United States have original
jurisdiction of a civil action or claim described in para-
graph (1) or (2) of section 9003(c), after such administra-
tive remedies as required under such paragraph (1) or (2)
(as applicable) have been exhausted, but only to the extent
judicial review is not precluded by any dispute resolution
or other remedy under this chapter.
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‘‘§ 9008. Administrative functions
‘‘(a) IN GENERAL.—The Office of Personnel Manage-
ment shall prescribe regulations necessary to carry out this
chapter.
‘‘(b) ENROLLMENT PERIODS.—The Office shall provide
for periodic coordinated enrollment, promotion, and edu-
cation efforts in consultation with the carriers.
‘‘(c) CONSULTATION.—Any regulations necessary to ef-
fect the application and operation of this chapter with re-
spect to an eligible individual described in paragraph (3)
or (4) of section 9001, or a qualified relative thereof, shall
be prescribed by the Office in consultation with the appro-
priate Secretary.
‘‘(d) INFORMED DECISIONMAKING.—The Office shall
ensure that each eligible individual applying for long-term
care insurance under this chapter is furnished the informa-
tion necessary to enable that individual to evaluate the ad-
vantages and disadvantages of obtaining long-term care in-
surance under this chapter, including the following:
‘‘(1) The principal long-term care benefits and
coverage available under this chapter, and how those
benefits and coverage compare to the range of long-
term care benefits and coverage otherwise generally
available.
‘‘(2) Representative examples of the cost of long-
term care, and the sufficiency of the benefits available
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under this chapter relative to those costs. The infor-
mation under this paragraph shall also include—
‘‘(A) the projected effect of inflation on the
value of those benefits; and
‘‘(B) a comparison of the inflation-adjusted
value of those benefits to the projected future
costs of long-term care.
‘‘(3) Any rights individuals under this chapter
may have to cancel coverage, and to receive a total or
partial refund of premiums. The information under
this paragraph shall also include—
‘‘(A) the projected number or percentage of
individuals likely to fail to maintain their cov-
erage (determined based on lapse rates experi-
enced under similar group long-term care insur-
ance programs and, when available, this chap-
ter); and
‘‘(B)(i) a summary description of how and
when premiums for long-term care insurance
under this chapter may be raised;
‘‘(ii) the premium history during the last
10 years for each qualified carrier offering long-
term care insurance under this chapter; and
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‘‘(iii) if cost increases are anticipated, the
projected premiums for a typical insured indi-
vidual at various ages.
‘‘(4) The advantages and disadvantages of long-
term care insurance generally, relative to other means
of accumulating or otherwise acquiring the assets that
may be needed to meet the costs of long-term care,
such as through tax-qualified retirement programs or
other investment vehicles.
‘‘§ 9009. Cost accounting standards
‘‘The cost accounting standards issued pursuant to sec-
tion 26(f) of the Office of Federal Procurement Policy Act
(41 U.S.C. 422(f)) shall not apply with respect to a long-
term care insurance contract under this chapter.’’.
(b) CONFORMING AMENDMENT.—The analysis for part
III of title 5, United States Code, is amended by adding
at the end of subpart G the following:
‘‘90. Long-Term Care Insurance ...............................................................
9001.’’.
SEC. 1003. EFFECTIVE DATE.
The Office of Personnel Management shall take such
measures as may be necessary to ensure that long-term care
insurance coverage under title 5, United States Code, as
amended by this title, may be obtained in time to take effect
not later than the first day of the first applicable pay period
of the first fiscal year which begins after the end of the 18-
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month period beginning on the date of the enactment of this
Act.
TITLE II—FEDERAL RETIREMENT
COVERAGE ERRORS CORREC-
TION
SEC. 2001. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This title may be cited as the
‘‘Federal Erroneous Retirement Coverage Corrections Act’’.
(b) TABLE OF CONTENTS.—The table of contents for
this title is as follows:
TITLE II—FEDERAL RETIREMENT COVERAGE ERRORS CORRECTION
Sec. 2001. Short title; table of contents.
Sec. 2002. Definitions.
Sec. 2003. Applicability.
Sec. 2004. Irrevocability of elections.
Subtitle A—Description of Retirement Coverage Errors to Which This Title
Applies and Measures for Their Rectification
CHAPTER 1—EMPLOYEES AND ANNUITANTS WHO SHOULD HAVE BEEN FERS
COVERED, BUT WHO WERE ERRONEOUSLY CSRS COVERED OR CSRS-OFF-
SET COVERED INSTEAD, AND SURVIVORS OF SUCH EMPLOYEES AND ANNU-
ITANTS
Sec. 2101. Employees.
Sec. 2102. Annuitants and survivors.
CHAPTER 2—EMPLOYEE WHO SHOULD HAVE BEEN FERS COVERED, CSRS-
OFFSET COVERED, OR CSRS COVERED, BUT WHO WAS ERRONEOUSLY SO-
CIAL SECURITY-ONLY COVERED INSTEAD
Sec. 2111. Applicability.
Sec. 2112. Correction mandatory.
CHAPTER 3—EMPLOYEE WHO SHOULD OR COULD HAVE BEEN SOCIAL SECU-
RITY-ONLY COVERED BUT WHO WAS ERRONEOUSLY CSRS-OFFSET COVERED
OR CSRS COVERED INSTEAD
Sec. 2121. Employee who should be Social Security-Only covered, but who is erro-
neously CSRS or CSRS-Offset covered instead.
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CHAPTER 4—EMPLOYEE WHO WAS ERRONEOUSLY FERS COVERED
Sec. 2131. Employee who should be Social Security-Only covered, CSRS covered,
or CSRS-Offset covered and is not FERS-Eligible, but who is
erroneously FERS covered instead.
Sec. 2132. FERS-Eligible employee who should have been CSRS covered, CSRS-
Offset covered, or Social Security-Only covered, but who was er-
roneously FERS covered instead without an election.
Sec. 2133. Retroactive effect.
CHAPTER 5—EMPLOYEE WHO SHOULD HAVE BEEN CSRS-OFFSET COVERED,
BUT WHO WAS ERRONEOUSLY CSRS COVERED INSTEAD
Sec. 2141. Applicability.
Sec. 2142. Correction mandatory.
CHAPTER 6—EMPLOYEE WHO SHOULD HAVE BEEN CSRS COVERED, BUT
WHO WAS ERRONEOUSLY CSRS-OFFSET COVERED INSTEAD
Sec. 2151. Applicability.
Sec. 2152. Correction mandatory.
Subtitle B—General Provisions
Sec. 2201. Identification and notification requirements.
Sec. 2202. Information to be furnished to and by authorities administering this
title.
Sec. 2203. Service credit deposits.
Sec. 2204. Provisions related to Social Security coverage of misclassified employ-
ees.
Sec. 2205. Thrift Savings Plan treatment for certain individuals.
Sec. 2206. Certain agency amounts to be paid into or remain in the CSRDF.
Sec. 2207. CSRS coverage determinations to be approved by OPM.
Sec. 2208. Discretionary actions by Director.
Sec. 2209. Regulations.
Subtitle C—Other Provisions
Sec. 2301. Provisions to authorize continued conformity of other Federal retire-
ment systems.
Sec. 2302. Authorization of payments.
Sec. 2303. Individual right of action preserved for amounts not otherwise pro-
vided for under this title.
Subtitle D—Effective Date
Sec. 2401. Effective date.
SEC. 2002. DEFINITIONS.
For purposes of this title:
(1) ANNUITANT.—The term ‘‘annuitant’’ has the
meaning given such term under section 8331(9) or
8401(2) of title 5, United States Code.
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(2) CSRS.—The term ‘‘CSRS’’ means the Civil
Service Retirement System.
(3) CSRDF.—The term ‘‘CSRDF’’ means the
Civil Service Retirement and Disability Fund.
(4) CSRS COVERED.—The term ‘‘CSRS cov-
ered’’, with respect to any service, means service that
is subject to the provisions of subchapter III of chap-
ter 83 of title 5, United States Code, other than serv-
ice subject to section 8334(k) of such title.
(5) 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, and
to section 8334(k) of such title.
(6) EMPLOYEE.—The term ‘‘employee’’ has the
meaning given such term under section 8331(1) or
8401(11) of title 5, United States Code.
(7) EXECUTIVE DIRECTOR.—The term ‘‘Execu-
tive Director of the Federal Retirement Thrift Invest-
ment Board’’ or ‘‘Executive Director’’ means the Ex-
ecutive Director appointed under section 8474 of title
5, United States Code.
(8) FERS.—The term ‘‘FERS’’ means the Fed-
eral Employees’ Retirement System.
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(9) FERS COVERED.—The term ‘‘FERS cov-
ered’’, with respect to any service, means service that
is subject to chapter 84 of title 5, United States Code.
(10) FORMER
EMPLOYEE.—The term ‘‘former
employee’’ means an individual who was an em-
ployee, but who is not an annuitant.
(11) OASDI TAXES.—The term ‘‘OASDI taxes’’
means the OASDI employee tax and the OASDI em-
ployer tax.
(12) 
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).
(13) 
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).
(14) OASDI TRUST FUNDS.—The term ‘‘OASDI
trust funds’’ means the Federal Old-Age and Sur-
vivors Insurance Trust Fund and the Federal Dis-
ability Insurance Trust Fund.
(15) OFFICE.—The term ‘‘Office’’ means the Of-
fice of Personnel Management.
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(16) 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.
(17) RETIREMENT COVERAGE ERROR.—The term
‘‘retirement coverage error’’ means an erroneous re-
tirement coverage determination that was in effect for
a minimum period of 3 years of service after Decem-
ber 31, 1986.
(18) SOCIAL
SECURITY-ONLY
COVERED.—The
term ‘‘Social Security-Only covered’’, with respect to
any service, means Government service that—
(A) constitutes employment under section
210 of the Social Security Act (42 U.S.C. 410);
and
(B)(i) is subject to OASDI taxes; but
(ii) is not subject to CSRS or FERS.
(19) SURVIVOR.—The term ‘‘survivor’’ has the
meaning given such term under section 8331(10) or
8401(28) of title 5, United States Code.
(20) THRIFT SAVINGS FUND.—The term ‘‘Thrift
Savings Fund’’ means the Thrift Savings Fund estab-
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lished under section 8437 of title 5, United States
Code.
SEC. 2003. APPLICABILITY.
(a) IN GENERAL.—This title shall apply with respect
to retirement coverage errors that occur before, on, or after
the date of enactment of this Act.
(b) LIMITATION.—Except as otherwise provided in this
title, this title shall not apply to any erroneous retirement
coverage determination that was in effect for a period of
less than 3 years of service after December 31, 1986.
SEC. 2004. IRREVOCABILITY OF ELECTIONS.
Any election made (or deemed to have been made) by
an employee or any other individual under this title shall
be irrevocable.
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Subtitle A—Description of Retire-
ment Coverage Errors to Which
This Title Applies and Measures
for Their Rectification
CHAPTER 
1—EMPLOYEES 
AND 
ANNU-
ITANTS WHO SHOULD HAVE BEEN
FERS COVERED, BUT WHO WERE ERRO-
NEOUSLY CSRS COVERED OR CSRS-
OFFSET COVERED INSTEAD, AND SUR-
VIVORS OF SUCH EMPLOYEES AND AN-
NUITANTS
SEC. 2101. EMPLOYEES.
(a) APPLICABILITY.—This section shall apply in the
case of any employee or former employee who should be (or
should have been) FERS covered but, as a result of a retire-
ment coverage error, is (or was) CSRS covered or CSRS-
Offset covered instead.
(b) UNCORRECTED ERROR.—
(1) APPLICABILITY.—This subsection applies if
the retirement coverage error has not been corrected
before the effective date of the regulations described
under paragraph (3). As soon as practicable after dis-
covery of the error, and subject to the right of an elec-
tion under paragraph (2), if CSRS covered or CSRS-
Offset covered, such individual shall be treated as
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CSRS-Offset covered, retroactive to the date of the re-
tirement coverage error.
(2) COVERAGE.—
(A) ELECTION.—Upon written notice of a
retirement coverage error, an individual may
elect to be CSRS-Offset covered or FERS covered,
effective as of the date of the retirement coverage
error. Such election shall be made not later than
180 days after the date of receipt of such notice.
(B) NONELECTION.—If the individual does
not make an election by the date provided under
subparagraph (A), a CSRS-Offset covered indi-
vidual shall remain CSRS-Offset covered and a
CSRS covered individual shall be treated as
CSRS-Offset covered.
(3) REGULATIONS.—The Office shall prescribe
regulations to carry out this subsection.
(c) CORRECTED ERROR.—
(1) APPLICABILITY.—This subsection applies if
the retirement coverage error was corrected before the
effective date of the regulations described under sub-
section (b).
(2) COVERAGE.—
(A) ELECTION.—
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(i) 
CSRS-OFFSET
COVERED.—Not
later than 180 days after the date of enact-
ment of this Act, the Office shall prescribe
regulations authorizing individuals to elect,
during the 18-month period immediately
following the effective date of such regula-
tions, to be CSRS-Offset covered, effective as
of the date of the retirement coverage error.
(ii) THRIFT SAVINGS FUND CONTRIBU-
TIONS.—If under this section an individual
elects to be CSRS-Offset covered, all em-
ployee contributions to the Thrift Savings
Fund made during the period of FERS cov-
erage (and earnings on such contributions)
may remain in the Thrift Savings Fund in
accordance with regulations prescribed by
the Executive Director, notwithstanding
any limit that would otherwise be applica-
ble.
(B) PREVIOUS SETTLEMENT PAYMENT.—An
individual who previously received a payment
ordered by a court or provided as a settlement of
claim for losses resulting from a retirement cov-
erage error shall not be entitled to make an elec-
tion under this subsection unless that amount is
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waived in whole or in part under section 2208,
and any amount not waived is repaid.
(C) INELIGIBILITY FOR ELECTION.—An in-
dividual who, subsequent to correction of the re-
tirement coverage error, received a refund of re-
tirement deductions under section 8424 of title 5,
United States Code, or a distribution under sec-
tion 8433 (b), (c), or (h)(1)(A) of title 5, United
States Code, may not make an election under
this subsection.
(3) CORRECTIVE
ACTION
TO
REMAIN
IN
EF-
FECT.—If an individual is ineligible to make an elec-
tion or does not make an election under paragraph
(2) before the end of any time limitation under this
subsection, the corrective action taken before such time
limitation shall remain in effect.
SEC. 2102. ANNUITANTS AND SURVIVORS.
(a) IN GENERAL.—This section shall apply in the case
of an individual who is—
(1) an annuitant who should have been FERS
covered but, as a result of a retirement coverage error,
was CSRS covered or CSRS-Offset covered instead; or
(2) a survivor of an employee who should have
been FERS covered but, as a result of a retirement
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coverage error, was CSRS covered or CSRS-Offset
covered instead.
(b) COVERAGE.—
(1) ELECTION.—Not later than 180 days after
the date of enactment of this Act, the Office shall pre-
scribe regulations authorizing an individual described
under subsection (a) to elect CSRS-Offset coverage or
FERS coverage, effective as of the date of the retire-
ment coverage error.
(2) TIME LIMITATION.—An election under this
subsection shall be made not later than 18 months
after the effective date of the regulations prescribed
under paragraph (1).
(3) REDUCED ANNUITY.—
(A) AMOUNT
IN
ACCOUNT.—If the indi-
vidual elects CSRS-Offset coverage, the amount
in the employee’s Thrift Savings Fund account
under subchapter III of chapter 84 of title 5,
United States Code, on the date of retirement
that represents the Government’s contributions
and earnings on those contributions (whether or
not such amount was subsequently distributed
from the Thrift Savings Fund) will form the
basis for a reduction in the individual’s annuity,
under regulations prescribed by the Office.
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(B) REDUCTION.—The reduced annuity to
which the individual is entitled shall be equal to
an amount which, when taken together with the
amount referred to in subparagraph (A), would
result in the present value of the total being ac-
tuarially equivalent to the present value of an
unreduced CSRS-Offset annuity that would have
been provided the individual.
(4) REDUCED BENEFIT.—If—
(A) a surviving spouse elects CSRS-Offset
benefits; and
(B) a FERS basic employee death benefit
under section 8442(b) of title 5, United States
Code, was previously paid;
then the survivor’s CSRS-Offset benefit shall be sub-
ject to a reduction, under regulations prescribed by
the Office. The reduced annuity to which the indi-
vidual is entitled shall be equal to an amount which,
when taken together with the amount of the payment
referred to under subparagraph (B) would result in
the present value of the total being actuarially equiva-
lent to the present value of an unreduced CSRS-Offset
annuity that would have been provided the indi-
vidual.
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(5) PREVIOUS SETTLEMENT PAYMENT.—An indi-
vidual who previously received a payment ordered by
a court or provided as a settlement of claim for losses
resulting from a retirement coverage error may not
make an election under this subsection unless repay-
ment of that amount is waived in whole or in part
under section 2208, and any amount not waived is
repaid.
(c) NONELECTION.—If the individual does not make
an election under subsection (b) before any time limitation
under this section, the retirement coverage shall be subject
to the following rules:
(1) CORRECTIVE ACTION PREVIOUSLY TAKEN.—If
corrective action was taken before the end of any time
limitation under this section, that corrective action
shall remain in effect.
(2) 
CORRECTIVE
ACTION
NOT
PREVIOUSLY
TAKEN.—If corrective action was not taken before
such time limitation, the employee shall be CSRS-Off-
set covered, retroactive to the date of the retirement
coverage error.
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CHAPTER 
2—EMPLOYEE 
WHO 
SHOULD
HAVE BEEN FERS COVERED, CSRS-OFF-
SET COVERED, OR CSRS COVERED,
BUT WHO WAS ERRONEOUSLY SOCIAL
SECURITY-ONLY COVERED INSTEAD
SEC. 2111. APPLICABILITY.
This chapter 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.
SEC. 2112. CORRECTION MANDATORY.
(a) UNCORRECTED ERROR.—If the retirement coverage
error has not been corrected, as soon as practicable after
discovery of the error, such individual shall be covered
under the correct retirement coverage, effective as of the date
of the retirement coverage error.
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(b) CORRECTED ERROR.—If the retirement coverage
error has been corrected, the corrective action previously
taken shall remain in effect.
CHAPTER 3—EMPLOYEE WHO SHOULD OR
COULD HAVE BEEN SOCIAL SECURITY-
ONLY COVERED BUT WHO WAS ERRO-
NEOUSLY CSRS-OFFSET COVERED OR
CSRS COVERED INSTEAD
SEC. 2121. EMPLOYEE WHO SHOULD BE SOCIAL SECURITY-
ONLY COVERED, BUT WHO IS ERRONEOUSLY
CSRS OR CSRS-OFFSET COVERED INSTEAD.
(a) APPLICABILITY.—This section applies in the case
of a retirement coverage error in which a Social Security-
Only covered employee was erroneously CSRS covered or
CSRS-Offset covered.
(b) UNCORRECTED ERROR.—
(1) APPLICABILITY.—This subsection applies if
the retirement coverage error has not been corrected
before the effective date of the regulations described in
paragraph (3).
(2) COVERAGE.—In the case of an individual
who is erroneously CSRS covered, as soon as prac-
ticable after discovery of the error, and subject to the
right of an election under paragraph (3), such indi-
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vidual shall be CSRS-Offset covered, effective as of the
date of the retirement coverage error.
(3) ELECTION.—
(A) IN GENERAL.—Upon written notice of a
retirement coverage error, an individual may
elect to be CSRS-Offset covered or Social Secu-
rity-Only covered, effective as of the date of the
retirement coverage error. Such election shall be
made not later than 180 days after the date of
receipt of such notice.
(B) NONELECTION.—If the individual does
not make an election before the date provided
under subparagraph (A), the individual shall re-
main CSRS-Offset covered.
(C) REGULATIONS.—The Office shall pre-
scribe regulations to carry out this paragraph.
(c) CORRECTED ERROR.—
(1) APPLICABILITY.—This subsection applies if
the retirement coverage error was corrected before the
effective date of the regulations described under sub-
section (b)(3).
(2) ELECTION.—Not later than 180 days after
the date of enactment of this Act, the Office shall pre-
scribe regulations authorizing individuals to elect,
during the 18-month period immediately following
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the effective date of such regulations, to be CSRS-Off-
set covered or Social Security-Only covered, effective
as of the date of the retirement coverage error.
(3) NONELECTION.—If an eligible individual
does not make an election under paragraph (2) before
the end of any time limitation under this subsection,
the corrective action taken before such time limitation
shall remain in effect.
CHAPTER 4—EMPLOYEE WHO WAS
ERRONEOUSLY FERS COVERED
SEC. 2131. EMPLOYEE WHO SHOULD BE SOCIAL SECURITY-
ONLY COVERED, CSRS COVERED, OR CSRS-
OFFSET COVERED AND IS NOT FERS-ELIGI-
BLE, BUT WHO IS ERRONEOUSLY FERS COV-
ERED INSTEAD.
(a) APPLICABILITY.—This section applies in the case
of a retirement coverage error in which a Social Security-
Only covered, CSRS covered, or CSRS-Offset covered em-
ployee not eligible to elect FERS coverage under authority
of section 8402(c) of title 5, United States Code, was erro-
neously FERS covered.
(b) UNCORRECTED ERROR.—
(1) APPLICABILITY.—This subsection applies if
the retirement coverage error has not been corrected
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before the effective date of the regulations described in
paragraph (2).
(2) COVERAGE.—
(A) ELECTION.—
(i) IN GENERAL.—Upon written notice
of a retirement coverage error, an indi-
vidual may elect to remain FERS covered
or to be Social Security-Only covered,
CSRS covered, or CSRS-Offset covered, as
would have applied in the absence of the er-
roneous retirement coverage determination,
effective as of the date of the retirement cov-
erage error. Such election shall be made not
later than 180 days after the date of receipt
of such notice.
(ii) TREATMENT OF FERS ELECTION.—
An election of FERS coverage under this
subsection is deemed to be an election under
section 301 of the Federal Employees Re-
tirement System Act of 1986 (5 U.S.C. 8331
note; Public Law 99–335; 100 Stat. 599).
(B) NONELECTION.—If the individual does
not make an election before the date provided
under subparagraph (A), the individual shall re-
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main FERS covered, effective as of the date of
the retirement coverage error.
(3) EMPLOYEE CONTRIBUTIONS IN THRIFT SAV-
INGS
FUND.—If under this section, an individual
elects to be Social Security-Only covered, CSRS cov-
ered, or CSRS-Offset covered, all employee contribu-
tions to the Thrift Savings Fund made during the pe-
riod of erroneous FERS coverage (and all earnings on
such contributions) may remain in the Thrift Savings
Fund in accordance with regulations prescribed by
the Executive Director, notwithstanding any limit
under section 8351 or 8432 of title 5, United States
Code.
(4) REGULATIONS.—Except as provided under
paragraph (3), the Office shall prescribe regulations
to carry out this subsection.
(c) CORRECTED ERROR.—
(1) APPLICABILITY.—This subsection applies if
the retirement coverage error was corrected before the
effective date of the regulations described under para-
graph (2).
(2) ELECTION.—Not later than 180 days after
the date of enactment of this Act, the Office shall pre-
scribe regulations authorizing individuals to elect,
during the 18-month period immediately following
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the effective date of such regulations to remain Social
Security-Only covered, CSRS covered, or CSRS-Offset
covered, or to be FERS covered, effective as of the date
of the retirement coverage error.
(3) NONELECTION.—If an eligible individual
does not make an election under paragraph (2), the
corrective action taken before the end of any time lim-
itation under this subsection shall remain in effect.
(4) TREATMENT OF FERS ELECTION.—An elec-
tion of FERS coverage under this subsection is
deemed to be an election under section 301 of the Fed-
eral Employees Retirement System Act of 1986 (5
U.S.C. 8331 note; Public Law 99–335; 100 Stat.
599).
SEC. 2132. FERS-ELIGIBLE EMPLOYEE WHO SHOULD HAVE
BEEN CSRS COVERED, CSRS-OFFSET COV-
ERED, OR SOCIAL SECURITY-ONLY COVERED,
BUT WHO WAS ERRONEOUSLY FERS COVERED
INSTEAD WITHOUT AN ELECTION.
(a) IN GENERAL.—
(1) FERS ELECTION PREVENTED.—If an indi-
vidual was prevented from electing FERS coverage
because the individual was erroneously FERS covered
during the period when the individual was eligible to
elect FERS under title III of the Federal Employees
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Retirement System Act or the Federal Employees’ Re-
tirement System Open Enrollment Act of 1997 (Pub-
lic Law 105–61; 111 Stat. 1318 et seq.), the
individual—
(A) is deemed to have elected FERS cov-
erage; and
(B) shall remain covered by FERS, unless
the individual declines, under regulations pre-
scribed by the Office, to be FERS covered.
(2) DECLINING
FERS
COVERAGE.—If an indi-
vidual described under paragraph (1)(B) declines to
be FERS covered, such individual shall be CSRS cov-
ered, CSRS-Offset covered, or Social Security-Only
covered, as would apply in the absence of a FERS
election, effective as of the date of the erroneous retire-
ment coverage determination.
(b) EMPLOYEE CONTRIBUTIONS IN THRIFT SAVINGS
FUND.—If under this section, an individual declines to be
FERS covered and instead is Social Security-Only covered,
CSRS covered, or CSRS-Offset covered, as would apply in
the absence of a FERS election, all employee contributions
to the Thrift Savings Fund made during the period of erro-
neous FERS coverage (and all earnings on such contribu-
tions) may remain in the Thrift Savings Fund in accord-
ance with regulations prescribed by the Executive Director,
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notwithstanding any limit that would otherwise be applica-
ble.
(c) INAPPLICABILITY OF DURATION OF ERRONEOUS
COVERAGE.—This section shall apply regardless of the
length of time the erroneous coverage determination re-
mained in effect.
SEC. 2133. RETROACTIVE EFFECT.
This chapter shall be effective as of January 1, 1987,
except that section 2132 shall not apply to individuals who
made or were deemed to have made elections similar to those
provided in this section under regulations prescribed by the
Office before the effective date of this title.
CHAPTER 
5—EMPLOYEE 
WHO 
SHOULD
HAVE BEEN CSRS-OFFSET COVERED,
BUT WHO WAS ERRONEOUSLY CSRS
COVERED INSTEAD
SEC. 2141. APPLICABILITY.
This chapter 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 coverage error, is (or was)
CSRS covered instead.
SEC. 2142. CORRECTION MANDATORY.
(a) UNCORRECTED ERROR.—If the retirement coverage
error has not been corrected, as soon as practicable after
discovery of the error, such individual shall be covered
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under the correct retirement coverage, effective as of the date
of the retirement coverage error.
(b) CORRECTED ERROR.—If the retirement coverage
error has been corrected before the effective date of this title,
the corrective action taken before such date shall remain
in effect.
CHAPTER 
6—EMPLOYEE 
WHO 
SHOULD
HAVE BEEN CSRS COVERED, BUT WHO
WAS 
ERRONEOUSLY 
CSRS-OFFSET
COVERED INSTEAD
SEC. 2151. APPLICABILITY.
This chapter 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.
SEC. 2152. CORRECTION MANDATORY.
(a) UNCORRECTED ERROR.—If the retirement coverage
error has not been corrected, as soon as practicable after
discovery of the error, such individual shall be covered
under the correct retirement coverage, effective as of the date
of the retirement coverage error.
(b) CORRECTED ERROR.—If the retirement coverage
error has been corrected before the effective date of this title,
the corrective action taken before such date shall remain
in effect.
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Subtitle B—General Provisions
SEC. 2201. IDENTIFICATION AND NOTIFICATION REQUIRE-
MENTS.
Government agencies shall take all such measures as
may be reasonable and appropriate to promptly identify
and notify individuals who are (or have been) affected by
a retirement coverage error of their rights under this title.
SEC. 2202. INFORMATION TO BE FURNISHED TO AND BY AU-
THORITIES ADMINISTERING THIS TITLE.
(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; and
(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 title. Upon request of the authority in-
volved, the head of the department or agency involved shall
furnish that information to the requesting authority.
(c) AUTHORITY TO PROVIDE INFORMATION.—Each
authority identified in subsection (a) may provide directly
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to any department or agency of the United States all infor-
mation such authority believes necessary to enable the de-
partment or agency to carry out its responsibilities under
this title.
(d) LIMITATION; SAFEGUARDS.—Each of the respective
authorities under subsection (a) shall—
(1) request or provide only such information as
that authority considers necessary; and
(2) establish, by regulation or otherwise, appro-
priate safeguards to ensure that any information ob-
tained under this section shall be used only for the
purpose authorized.
SEC. 2203. SERVICE CREDIT DEPOSITS.
(a) CSRS DEPOSIT.—In the case of a retirement cov-
erage error in which—
(1) a FERS covered employee was erroneously
CSRS covered or CSRS-Offset covered;
(2) the employee made a service credit deposit
under the CSRS rules; and
(3) there is a subsequent retroactive change to
FERS coverage;
the excess of the amount of the CSRS civilian or military
service credit deposit over the FERS civilian or military
service credit deposit, together with interest computed in ac-
cordance with paragraphs (2) and (3) of section 8334(e)
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of title 5, United States Code, and regulations prescribed
by the Office, shall be paid to the employee, the annuitant
or, in the case of a deceased employee, to the individual
entitled to lump-sum benefits under section 8424(d) of title
5, United States Code.
(b) FERS DEPOSIT.—
(1) APPLICABILITY.—This subsection applies in
the case of an erroneous retirement coverage deter-
mination in which—
(A) the employee owed a service credit de-
posit under section 8411(f) of title 5, United
States Code; and
(B)(i) there is a subsequent retroactive
change to CSRS or CSRS-Offset coverage; or
(ii) the service becomes creditable under
chapter 83 of title 5, United States Code.
(2) REDUCED ANNUITY.—
(A) IN GENERAL.—If at the time of com-
mencement of an annuity there is remaining un-
paid CSRS civilian or military service credit
deposit for service described under paragraph
(1), the annuity shall be reduced based upon the
amount unpaid together with interest computed
in accordance with section 8334(e) (2) and (3)
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of title 5, United States Code, and regulations
prescribed by the Office.
(B) AMOUNT.—The reduced annuity to
which the individual is entitled shall be equal to
an amount that, when taken together with the
amount referred to under subparagraph (A),
would result in the present value of the total
being actuarially equivalent to the present value
of the unreduced annuity benefit that would have
been provided the individual.
(3) SURVIVOR ANNUITY.—
(A) IN GENERAL.—If at the time of com-
mencement of a survivor annuity, there is re-
maining unpaid any CSRS service credit de-
posit described under paragraph (1), and there
has been no actuarial reduction in an annuity
under paragraph (2), the survivor annuity shall
be reduced based upon the amount unpaid to-
gether with interest computed in accordance with
section 8334(e) (2) and (3) of title 5, United
States Code, and regulations prescribed by the
Office.
(B) AMOUNT.—The reduced survivor annu-
ity to which the individual is entitled shall be
equal to an amount that, when taken together
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with the amount referred to under subparagraph
(A), would result in the present value of the total
being actuarially equivalent to the present value
of an unreduced survivor annuity benefit that
would have been provided the individual.
SEC. 2204. PROVISIONS RELATED TO SOCIAL SECURITY
COVERAGE OF MISCLASSIFIED EMPLOYEES.
(a) DEFINITIONS.—In this section, the term—
(1) ‘‘covered individual’’ means any employee,
former employee, or annuitant who—
(A) is or was employed erroneously subject
to CSRS coverage as a result of a retirement cov-
erage error; and
(B) is or was retroactively converted to
CSRS-offset coverage, FERS coverage, or Social
Security-only coverage; and
(2) ‘‘excess CSRS deduction amount’’ means an
amount equal to the difference between the CSRS de-
ductions withheld and the CSRS-Offset or FERS de-
ductions, if any, due with respect to a covered indi-
vidual during the entire period the individual was er-
roneously subject to CSRS coverage as a result of a
retirement coverage error.
(b) REPORTS TO COMMISSIONER OF SOCIAL SECU-
RITY.—
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(1) IN
GENERAL.—In order to carry out the
Commissioner of Social Security’s responsibilities
under title II of the Social Security Act, the Commis-
sioner may request the head of each agency that em-
ploys or employed a covered individual to report (in
coordination with the Office of Personnel Manage-
ment) in such form and within such timeframe as the
Commissioner may specify, any or all of—
(A) the total wages (as defined in section
3121(a) of the Internal Revenue Code of 1986)
paid to such individual during each year of the
entire period of the erroneous CSRS coverage;
and
(B) such additional information as the
Commissioner may require for the purpose of
carrying out the Commissioner’s responsibilities
under title II of the Social Security Act (42
U.S.C. 401 et seq.).
(2) COMPLIANCE.—The head of an agency or the
Office shall comply with a request from the Commis-
sioner under paragraph (1).
(3) WAGES.—For purposes of section 201 of the
Social Security Act (42 U.S.C. 401), wages reported
under this subsection shall be deemed to be wages re-
ported to the Secretary of the Treasury or the Sec-
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retary’s delegates pursuant to subtitle F of the Inter-
nal Revenue Code of 1986.
(c) PAYMENT
RELATING
TO
OASDI EMPLOYEE
TAXES.—
(1) IN GENERAL.—The Office shall transfer from
the Civil Service Retirement and Disability Fund to
the General Fund of the Treasury an amount equal
to the lesser of the excess CSRS deduction amount or
the OASDI taxes due for covered individuals (as ad-
justed by amounts transferred relating to applicable
OASDI employee taxes as a result of corrections
made, including corrections made before the date of
enactment of this Act). If the excess CSRS deductions
exceed the OASDI taxes, any difference shall be paid
to the covered individual or survivors, as appropriate.
(2) TRANSFER.—Amounts transferred under this
subsection shall be determined notwithstanding any
limitation under section 6501 of the Internal Revenue
Code of 1986.
(d) PAYMENT OF OASDI EMPLOYER TAXES.—
(1) IN GENERAL.—Each employing agency shall
pay an amount equal to the OASDI employer taxes
owed with respect to covered individuals during the
applicable period of erroneous coverage (as adjusted
by amounts transferred for the payment of such taxes
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as a result of corrections made, including corrections
made before the date of enactment of this Act).
(2) PAYMENT.—Amounts paid under this sub-
section shall be determined subject to any limitation
under section 6501 of the Internal Revenue Code of
1986.
(e) APPLICATION OF OASDI TAX PROVISIONS OF THE
INTERNAL REVENUE CODE OF 1986 TO AFFECTED INDIVID-
UALS AND EMPLOYING AGENCIES.—A covered individual
and the individual’s employing agency shall be deemed to
have fully satisfied in a timely manner their responsibil-
ities with respect to the taxes imposed by sections 3101(a),
3102(a), and 3111(a) of the Internal Revenue Code of 1986
on the wages paid by the employing agency to such indi-
vidual during the entire period such individual was erro-
neously subject to CSRS coverage as a result of a retirement
coverage error based on the payments and transfers made
under subsections (c) and (d). No credit or refund of taxes
on such wages shall be allowed as a result of this subsection.
SEC. 2205. THRIFT SAVINGS PLAN TREATMENT FOR CER-
TAIN INDIVIDUALS.
(a) APPLICABILITY.—This section applies to an indi-
vidual who—
(1) is eligible to make an election of coverage
under section 2101 or 2102, and only if FERS cov-
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erage is elected (or remains in effect) for the employee
involved; or
(2) is described in section 2111, and makes or
has made retroactive employee contributions to the
Thrift Savings Fund under regulations prescribed by
the Executive Director.
(b) PAYMENT INTO THRIFT SAVINGS FUND.—
(1) IN GENERAL.—
(A) PAYMENT.—With respect to an indi-
vidual to whom this section applies, the employ-
ing agency shall pay to the Thrift Savings Fund
under subchapter III of chapter 84 of title 5,
United States Code, for credit to the account of
the employee involved, an amount equal to the
earnings which are disallowed under section
8432a(a)(2) of such title on the employee’s retro-
active contributions to such Fund.
(B) AMOUNT.—Earnings under subpara-
graph (A) shall be computed in accordance with
the procedures for computing lost earnings under
section 8432a of title 5, United States Code. The
amount paid by the employing agency shall be
treated for all purposes as if that amount had
actually been earned on the basis of the em-
ployee’ s contributions.
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(C) EXCEPTIONS.—If an individual made
retroactive contributions before the effective date
of the regulations under section 2101(c), the Di-
rector may provide for an alternative calculation
of lost earnings to the extent that a calculation
under subparagraph (B) is not administratively
feasible. The alternative calculation shall yield
an amount that is as close as practicable to the
amount computed under subparagraph (B), tak-
ing into account earnings previously paid.
(2) ADDITIONAL EMPLOYEE CONTRIBUTION.—In
cases in which the retirement coverage error was cor-
rected before the effective date of the regulations under
section 2101(c), the employee involved shall have an
additional opportunity to make retroactive contribu-
tions for the period of the retirement coverage error
(subject to applicable limits), and such contributions
(including any contributions made after the date of
the correction) shall be treated in accordance with
paragraph (1).
(c) REGULATIONS.—
(1) EXECUTIVE DIRECTOR.—The Executive Di-
rector shall prescribe regulations appropriate to carry
out this section relating to retroactive employee con-
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tributions and payments made on or after the effec-
tive date of the regulations under section 2101(c).
(2) OFFICE.—The Office, in consultation with
the Federal Retirement Thrift Investment Board,
shall prescribe regulations appropriate to carry out
this section relating to the calculation of lost earnings
on retroactive employee contributions made before the
effective date of the regulations under section 2101(c).
SEC. 2206. CERTAIN AGENCY AMOUNTS TO BE PAID INTO OR
REMAIN IN THE CSRDF.
(a) CERTAIN EXCESS AGENCY CONTRIBUTIONS TO RE-
MAIN IN THE CSRDF.—
(1) IN GENERAL.—Any amount described under
paragraph (2) shall—
(A) remain in the CSRDF; and
(B) may not be paid or credited to an agen-
cy.
(2) AMOUNTS.—Paragraph (1) refers to any
amount of contributions made by an agency under
section 8423 of title 5, United States Code, on behalf
of any employee, former employee, or annuitant (or
survivor of such employee, former employee, or annu-
itant) who makes an election to correct a retirement
coverage error under this title, that the Office deter-
mines to be excess as a result of such election.
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(b) ADDITIONAL EMPLOYEE RETIREMENT DEDUC-
TIONS TO BE PAID BY AGENCY.—If a correction in a retire-
ment coverage error results in an increase in employee de-
ductions under section 8334 or 8422 of title 5, United
States Code, that cannot be fully paid by a reallocation of
otherwise available amounts previously deducted from the
employee’s pay as employment taxes or retirement deduc-
tions, the employing agency—
(1) shall pay the required additional amount
into the CSRDF; and
(2) shall not seek repayment of that amount
from the employee, former employee, annuitant, or
survivor.
SEC. 2207. CSRS COVERAGE DETERMINATIONS TO BE AP-
PROVED BY OPM.
No agency shall place an individual under CSRS cov-
erage unless—
(1) the individual has been employed with CSRS
coverage within the preceding 365 days; or
(2) the Office has agreed in writing that the
agency’s coverage determination is correct.
SEC. 2208. DISCRETIONARY ACTIONS BY DIRECTOR.
(a) IN GENERAL.—The Director of the Office of Per-
sonnel Management may—
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(1) extend the deadlines for making elections
under this title in circumstances involving an indi-
vidual’s inability to make a timely election due to a
cause beyond the individual’s control;
(2) provide for the reimbursement of necessary
and reasonable expenses incurred by an individual
with respect to settlement of a claim for losses result-
ing from a retirement coverage error, including attor-
ney’s fees, court costs, and other actual expenses;
(3) compensate an individual for monetary losses
that are a direct and proximate result of a retirement
coverage error, excluding claimed losses relating to
forgone contributions and earnings under the Thrift
Savings Plan under subchapter III of chapter 84 of
title 5, United States Code, and all other investment
opportunities; and
(4) waive payments required due to correction of
a retirement coverage error under this title.
(b) SIMILAR ACTIONS.—In exercising the authority
under this section, the Director shall, to the extent prac-
ticable, provide for similar actions in situations involving
similar circumstances.
(c) JUDICIAL REVIEW.—Actions taken under this sec-
tion are final and conclusive, and are not subject to admin-
istrative or judicial review.
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(d) REGULATIONS.—The Office of Personnel Manage-
ment shall prescribe regulations regarding the process and
criteria used in exercising the authority under this section.
(e) REPORT.—The Office of Personnel Management
shall, not later than 180 days after the date of enactment
of this Act, and annually thereafter for each year in which
the authority provided in this section is used, submit a re-
port to each House of Congress on the operation of this sec-
tion.
SEC. 2209. REGULATIONS.
(a) IN GENERAL.—In addition to the regulations spe-
cifically authorized in this title, the Office may prescribe
such other regulations as are necessary for the administra-
tion of this title.
(b) FORMER SPOUSE.—The regulations prescribed
under this title shall provide for protection of the rights of
a former spouse with entitlement to an apportionment of
benefits or to survivor benefits based on the service of the
employee.
Subtitle C—Other Provisions
SEC. 2301. PROVISIONS TO AUTHORIZE CONTINUED CON-
FORMITY OF OTHER FEDERAL RETIREMENT
SYSTEMS.
(a) FOREIGN SERVICE.—Sections 827 and 851 of the
Foreign Service Act of 1980 (22 U.S.C. 4067 and 4071)
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shall apply with respect to this title in the same manner
as if this title were part of—
(1) the Civil Service Retirement System, to the
extent this title relates to the Civil Service Retirement
System; and
(2) the Federal Employees’ Retirement System,
to the extent this title 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
title in the same manner as if this title were part of—
(1) the Civil Service Retirement System, to the
extent this title relates to the Civil Service Retirement
System; and
(2) the Federal Employees’ Retirement System,
to the extent this title relates to the Federal Employ-
ees’ Retirement System.
SEC. 2302. AUTHORIZATION OF PAYMENTS.
All payments authorized or required by this title to
be paid from the Civil Service Retirement and Disability
Fund, together with administrative expenses incurred by
the Office in administering this title, shall be deemed to
have been authorized to be paid from that Fund, which is
appropriated for the payment thereof.
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SEC. 2303. INDIVIDUAL RIGHT OF ACTION PRESERVED FOR
AMOUNTS NOT OTHERWISE PROVIDED FOR
UNDER THIS TITLE.
Nothing in this title 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 title).
Subtitle D—Effective Date
SEC. 2401. EFFECTIVE DATE.
Except as otherwise provided in this title, this title
shall take effect on the date of enactment of this Act.
Amend the title so as to read: ‘‘An Act to amend
title 5, United States Code, to provide for the establish-
ment of a program under which long-term care insurance
is made available to Federal employees, members of the
uniformed services, and civilian and military retirees, pro-
vide for the correction of retirement coverage errors
under chapters 83 and 84 of such title, and for other
purposes.’’.
Attest:
Secretary.
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