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‘‘(2) in the case of a covered employee, with re-
spect to not more than one motor vehicle as of any 
given time. 
‘‘(d) RELATIONSHIP
TO OTHER BENEFITS.—Any 
benefits under this section shall be in addition to (and not 
in lieu of) any other benefits for which the covered em-
ployee is otherwise eligible.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 57 of such title is amended by inserting after 
the item relating to section 5737 the following: 
‘‘5737a. Employees temporarily deployed in contingency operations.’’. 
SEC. 1103. ACCUMULATION OF ANNUAL LEAVE BY SENIOR 
LEVEL EMPLOYEES. 
Section 6304(f)(1) of title 5, United States Code, is 
amended— 
(1) in the matter before subparagraph (A), by 
striking ‘‘in a position in—’’ and inserting ‘‘in—’’; 
(2) in subparagraphs (A) through (E), by in-
serting ‘‘a position in’’ before ‘‘the’’; 
(3) in subparagraph (D), by striking ‘‘or’’ at 
the end; 
(4) in subparagraph (E), by striking the period 
at the end and inserting a semicolon; and 
(5) by adding after subparagraph (E) the fol-
lowing:
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‘‘(F) a position to which section 5376 ap-
plies; or 
‘‘(G) a position designated under section 
1607(a) of title 10 as an Intelligence Senior 
Level position.’’. 
SEC. 1104. TRAVEL COMPENSATION FOR WAGE GRADE PER-
SONNEL. 
(a) ELIGIBILITY FOR COMPENSATORY TIME OFF FOR 
TRAVEL.—Section 5550b(a) of title 5, United States 
Code, is amended by striking ‘‘section 5542(b)(2),’’ and 
inserting ‘‘any provision of section 5542(b)(2) or 
5544(a),’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
5541(2)(xi) of such title is amended by striking ‘‘section 
5544’’ and inserting ‘‘section 5544 or 5550b’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the earlier of— 
(1) the effective date of any regulations pre-
scribed to carry out such amendments; or 
(2) the 90th day after the date of the enact-
ment of this Act.
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SEC. 1105. DEATH GRATUITY AUTHORIZED FOR FEDERAL 
EMPLOYEES. 
(a) DEATH GRATUITY AUTHORIZED.—Chapter 81 of 
title 5, United States Code, is amended by inserting after 
section 8102 the following new section: 
‘‘§ 8102a. Death gratuity for injuries incurred in con-
nection with employee’s service with an 
Armed Force 
‘‘(a) DEATH GRATUITY AUTHORIZED.—The United 
States shall pay a death gratuity of $100,000 to or for 
the survivor prescribed by subsection (d) immediately 
upon receiving official notification of the death of an em-
ployee who dies of injuries incurred in connection with the 
employee’s service with an Armed Force in a contingency 
operation, or who dies of injuries incurred in connection 
with a terrorist incident occurring during the employee’s 
service with an Armed Force. 
‘‘(b) RETROACTIVE PAYMENT IN CERTAIN CASES.— 
Subsection (a) applies in the case of an employee who dies 
on or after October 7, 2001, as a result of injuries in-
curred in connection with the employee’s service with an 
Armed Force in the theater of operations of Operation En-
during Freedom or Operation Iraqi Freedom. 
‘‘(c) OTHER BENEFITS.—The death gratuity payable 
under this section is in addition to any death benefits oth-
erwise provided for in law.
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‘‘(d) ELIGIBLE SURVIVORS.— 
‘‘(1) Subject to paragraph (5), a death gratuity 
payable upon the death of a person covered by sub-
section (a) shall be paid to or for the living survivor 
highest on the following list: 
‘‘(A) The employee’s surviving spouse. 
‘‘(B) The employee’s children, as pre-
scribed by paragraph (2), in equal shares. 
‘‘(C) If designated by the employee, any 
one or more of the following persons: 
‘‘(i) The employee’s parents or per-
sons in loco parentis, as prescribed by 
paragraph (3). 
‘‘(ii) The employee’s brothers. 
‘‘(iii) The employee’s sisters. 
‘‘(D) The employee’s parents or persons in 
loco parentis, as prescribed by paragraph (3), 
in equal shares. 
‘‘(E) The employee’s brothers and sisters 
in equal shares. 
Subparagraphs (C) and (E) of this paragraph in-
clude brothers and sisters of the half blood and 
those through adoption. 
‘‘(2) Paragraph (1)(B) applies, without regard 
to age or marital status, to—
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‘‘(A) legitimate children; 
‘‘(B) adopted children; 
‘‘(C) stepchildren who were a part of the 
decedent’s household at the time of death; 
‘‘(D) illegitimate children of a female dece-
dent; and 
‘‘(E) illegitimate children of a male dece-
dent— 
‘‘(i) who have been acknowledged in 
writing signed by the decedent; 
‘‘(ii) who have been judicially deter-
mined, before the decedent’s death, to be 
his children; 
‘‘(iii) who have been otherwise proved, 
by evidence satisfactory to the employing 
agency, to be children of the decedent; or 
‘‘(iv) to whose support the decedent 
had been judicially ordered to contribute. 
‘‘(3) Subparagraphs (C) and (D) of paragraph 
(1), so far as they apply to parents and persons in 
loco parentis, include fathers and mothers through 
adoption, and persons who stood in loco parentis to 
the decedent for a period of not less than one year 
at any time before the decedent became an em-
ployee. However, only one father and one mother, or
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their counterparts in loco parentis, may be recog-
nized in any case, and preference shall be given to 
those who exercised a parental relationship on the 
date, or most nearly before the date, on which the 
decedent became an employee. 
‘‘(4) Beginning on the date of the enactment of 
this paragraph, a person covered by this section may 
designate another person to receive not more than 
50 percent of the amount payable under this section. 
The designation shall indicate the percentage of the 
amount, to be specified only in 10 percent incre-
ments up to the maximum of 50 percent, that the 
designated person may receive. The balance of the 
amount of the death gratuity shall be paid to or for 
the living survivors of the person concerned in ac-
cordance with subparagraphs (A) through (E) of 
paragraph (1). 
‘‘(5) If a person entitled to all or a portion of 
a death gratuity under paragraph (1) or (4) dies be-
fore the person receives the death gratuity, it shall 
be paid to the living survivor next in the order pre-
scribed by paragraph (1). 
‘‘(e) DEFINITIONS.—(1) The term ‘contingency oper-
ation’ has the meaning given to that term in section 
1482a(c) of title 10, United States Code.
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‘‘(2) The term ‘employee’ has the meaning provided 
in section 8101 of this title, but also includes a non-
appropriated fund instrumentality employee, as defined in 
section 1587(a)(1) of title 10.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 81 of such title is amended 
by inserting after the item relating to section 8102 the 
following new item: 
‘‘8102a. Death gratuity for injuries incurred in connection with employee’s serv-
ice with an Armed Force.’’. 
SEC. 1106. MODIFICATIONS TO THE NATIONAL SECURITY 
PERSONNEL SYSTEM. 
(a) IN GENERAL.—Section 9902 of title 5, United 
States Code, is amended— 
(1) in subsection (a), by striking ‘‘Notwith-
standing any other provision of this part, the’’ and 
inserting ‘‘The’’; 
(2) in subsection (b)(4)— 
(A) by striking ‘‘collectively as provided for 
in this chapter,’’ and inserting ‘‘collectively,’’; 
and 
(B) by striking ‘‘the provisions of this 
chapter and’’; 
(3) in subsection (b)(6), by striking subpara-
graph (I) and inserting the following:
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‘‘(I) A pay-for-performance evaluation sys-
tem to reward individual or group performance. 
Any such system— 
‘‘(i) shall be based on an equitable 
method for appraising and compensating 
employees; 
‘‘(ii) shall ensure that rates of pay 
(including those described in subchapter 
IV of chapter 53 and those payable to em-
ployees paid from nonappropriated funds) 
are adjusted at the same time and by the 
same percentages as would be required 
under sections 5303 through 5304a for 
rates subject to those sections, except that 
no such adjustment may be made if or to 
the extent that the resulting rate would ex-
ceed the maximum rate allowable under 
such system; 
‘‘(iii) may not be implemented before 
the requirements described in section 
4703(b) have been met by the Secretary 
and the Director jointly with respect to 
such system; 
‘‘(iv) may not provide for any waiver 
with respect to such system that would not
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be allowable under any paragraph of sec-
tion 4703(c); and 
‘‘(v) shall be subject to the provisions 
of subsections (f) and (g) of section 
4703.’’; 
(4) in subsection (c)(1), by striking ‘‘October 1, 
2008’’ each place it appears and inserting ‘‘October 
1, 2011’’; 
(5) in subsection (d)— 
(A) in the matter before paragraph (1), by 
striking ‘‘are (to the extent not otherwise speci-
fied in this title)—’’ and inserting ‘‘are—’’; and 
(B) in paragraph (2), by inserting ‘‘43,’’ 
after ‘‘41,’’ and by inserting ‘‘75, 77,’’ after 
‘‘73,’’; 
(6) in subsection (e)(3), by striking the period 
at the end and inserting ‘‘, except as provided in 
subsection (b)(6)(I)(ii).’’; 
(7) in subsection (f)(4), strike ‘‘The’’ and insert 
‘‘Subject to subsection (d)(2), the’’; 
(8) in subsection (g)— 
(A) by striking paragraph (2) and insert-
ing the following: 
‘‘(2) The decision to bargain at a level above the level 
of exclusive recognition shall be mutually agreed to by the
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Secretary and the labor organization at an organizational 
level above the level of exclusive recognition.’’; 
(B) in paragraph (3), by striking ‘‘are ex-
cluded from’’ and inserting ‘‘may be included 
in’’; and 
(C) by striking paragraph (4); and 
(9) by striking subsections (h), (k), and (m) 
and redesignating subsections (i), (j), and (l) as sub-
sections (h), (i), and (j), respectively. 
(b) SAVINGS PROVISION.—Any rate of pay which is 
in effect with respect to an employee immediately before 
this section takes effect, and which was determined under 
a performance management system established under sec-
tion 9902(b)(6) of title 5, United States Code, shall re-
main in effect until— 
(1) such rate is modified, superseded, or ren-
dered inapplicable— 
(A) in accordance with such system, as last 
in effect before this section takes effect; or 
(B) in accordance with a system estab-
lished under such section 9902(b)(6), as 
amended by this section (hereinafter referred to 
as a ‘‘successor system’’); or 
(2) such employee otherwise ceases to be cov-
ered by such system (as described in paragraph
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(1)(A)), whether by transferring to a position not 
covered by the system (as so described) or otherwise. 
The performance management system (as described in 
paragraph (1)(A)) shall remain in effect, in accordance 
with its terms, until all employees who, immediately before 
this section takes effect, are subject to the system (as so 
described) have either become subject to a successor sys-
tem or have otherwise ceased to be covered by the system 
(as so described). Such system (as so described) shall not 
apply in the case of any employee, or during any period 
of time, not described in the preceding sentence. 
SEC. 1107. ANNUITY COMMENCING DATES. 
(a) CIVIL SERVICE RETIREMENT SYSTEM.—Section 
8345(b)(1) of title 5, United States Code, is amended by 
striking ‘‘the first day of the month after’’ both places 
it appears and inserting ‘‘the day after’’. 
(b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.— 
Section 8464(a) of such title is amended to read as fol-
lows: 
‘‘(a) Except as otherwise provided in this chapter— 
‘‘(1) an annuity payable from the Fund com-
mences on the day after— 
‘‘(A) separation from the service, in the 
case of an employee or Member retiring under 
section 8412 or 8414; or
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‘‘(B) pay ceases, and the applicable age 
and service requirements are met, in the case of 
an employee or Member retiring under section 
8413; and 
‘‘(2) an annuity payable from the Fund com-
mences on the day after separation from the service 
or the day after pay ceases and the requirements for 
title to an annuity are met in the case of an em-
ployee or Member retiring under section 8451.’’. 
SEC. 1108. FLEXIBILITY IN SETTING PAY FOR EMPLOYEES 
WHO MOVE FROM A DEPARTMENT OF DE-
FENSE 
OR 
COAST 
GUARD 
NON-
APPROPRIATED 
FUND 
INSTRUMENTALITY 
POSITION TO A POSITION IN THE GENERAL 
SCHEDULE PAY SYSTEM. 
The first sentence of section 5334(f) of title 5, United 
States Code, is amended by striking ‘‘any step of such 
grade that does not exceed the highest previous rate of 
basic pay received by that employee during the employee’s 
service described in section 2105(c).’’ and inserting ‘‘any 
step of such grade that does not exceed— 
‘‘(1) if the highest previous rate of basic pay re-
ceived by that employee during the employee’s serv-
ice described in section 2105(c) is equal to a rate of
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the appropriate grade, such rate of the appropriate 
grade; 
‘‘(2) if the employee’s highest previous rate of 
basic pay (as described in paragraph (1)) is between 
two rates of the appropriate grade, the higher of 
those two rates; or 
‘‘(3) if the employee’s highest previous rate of 
basic pay (as described in paragraph (1)) exceeds 
the maximum rate of the appropriate grade, the 
maximum rate of the appropriate grade.’’. 
SEC. 1109. TRANSPORTATION OF DEPENDENTS, HOUSE-
HOLD EFFECTS, AND PERSONAL PROPERTY 
TO FORMER HOME FOLLOWING DEATH OF 
FEDERAL EMPLOYEE WHERE DEATH RE-
SULTED 
FROM 
DISEASE 
OR 
INJURY 
IN-
CURRED IN A COMBAT ZONE. 
(a) IN GENERAL.—Section 5742 of title 5, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(f)(1) The benefits of subsection (b)(2) may not be 
denied, solely because the dependents were residing within 
the continental United States when the employee died, if 
such employee died as a result of disease or injury in-
curred while holding a position or performing one or more
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functions in support of military operations of the United 
States in a combat zone. 
‘‘(2) For purposes of paragraph (1)— 
‘‘(A) the term ‘continental United States’ has 
the meaning given such term by section 5721(3); 
and 
‘‘(B) the term ‘combat zone’ has the meaning 
given such term by section 1580 of title 10.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to deaths occurring 
on or after the date of the enactment of this Act. 
SEC. 1110. USE OF LEAVE TRANSFER PROGRAM BY WOUND-
ED VETERANS WHO ARE FEDERAL EMPLOY-
EES. 
Section 6333(b) of title 5, United States Code, is 
amended— 
(1) by striking ‘‘A leave’’ and inserting ‘‘(1) 
Except as provided in paragraph (2), a leave’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) The requirement to exhaust annual leave and 
sick leave under paragraph (1) shall not apply in the case 
of a leave recipient who, while a member of the Armed 
Forces, including a member of the National Guard or a 
Reserve, sustained a combat-related disability (as defined