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(C) APPROPRIATE LUMP-SUM CREDIT TO
BE USED.—The appropriate lump-sum credit to
be used under this subsection shall be deter-
mined in accordance with regulations to be pre-
scribed by the Office of Personnel Management.
(D) PROVISIONS TO BE APPLIED WITH RE-
SPECT
TO
THE
TOTAL
PERIOD
INVOLVED.—
Substitute ‘‘total period involved (as defined by
section 105)’’ for ‘‘period of erroneous coverage
involved’’.
(c) DISPOSITION
OF
EXCESS
TSP CONTRIBU-
TIONS.—
(1) GOVERNMENT
CONTRIBUTIONS.—All Gov-
ernment contributions made on behalf of the em-
ployee to the Thrift Savings Fund that are attrib-
utable to the total period involved (including any
earnings thereon) shall be forfeited. For the purpose
of section 8437(d) of title 5, United States Code,
amounts so forfeited shall be treated as if they were
amounts forfeited under section 8432(g) of such
title.
(2) EMPLOYEE CONTRIBUTIONS.—The election
referred to in subsection (a) shall not be taken into
account for purposes of any determination relating
to the disposition of any employee contributions to
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the Thrift Savings Fund, attributable to the total
period involved, that were in excess of the maximum
amount that would have been allowable under appli-
cable provisions of subchapter III of chapter 83 of
title 5, United States Code (including any earnings
thereon).
(d) DEFINITION OF TOTAL PERIOD INVOLVED.—For
purposes of this section, the term ‘‘total period involved’’
means the period beginning on the effective date of the
retirement coverage error involved and ending on the day
before the date on which the election described in sub-
section (a) is made.
SEC. 106. EFFECT OF ELECTION TO REMAIN FERS COV-
ERED AFTER HAVING BEEN CORRECTED TO
FERS FROM CSRS-OFFSET (OR CSRS).
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in
paragraph (1) or (2) of section 101(a) who (after having
been corrected to FERS coverage) elects the option under
section 101(c)(2).
(b) DISPOSITION
OF
CONTRIBUTIONS
TO
THE
CSRDF.—The provisions of section 102(b) shall apply in
the case of an employee described in subsection (a), sub-
ject to the same condition as set forth in section
105(b)(2)(A).
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(c) MAKEUP CONTRIBUTIONS TO THE THRIFT SAV-
INGS FUND.—Section 102(c) shall apply, except that an
agency shall receive credit for any automatic or matching
Government contributions and any lost earnings paid by
such agency as part of any corrections process previously
carried out with respect to the employee involved.
Subtitle B—Employee Who Should
Have 
Been 
FERS 
Covered,
CSRS-Offset Covered, or CSRS
Covered, But Who Was Erro-
neously 
Social 
Security-Only
Covered Instead
SEC. 111. ELECTIONS.
(a) APPLICABILITY.—This subtitle shall apply in the
case of any employee who—
(1) should be (or should have been) FERS cov-
ered but, as a result of a retirement coverage error,
is (or was) Social Security-Only covered instead;
(2) should be (or should have been) CSRS-Off-
set covered but, as a result of a retirement coverage
error, is (or was) Social Security-Only covered in-
stead; or
(3) should be (or should have been) CSRS cov-
ered but, as a result of a retirement coverage error,
is (or was) Social Security-Only covered instead.
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(b) UNCORRECTED ERROR.—If, at the time of mak-
ing an election under this section, the retirement coverage
error described in paragraph (1), (2), or (3) of subsection
(a) (as applicable) has not been corrected, the employee
affected by such error may elect—
(1)(A) in the case of an error described in sub-
section (a)(1), to be FERS covered as well;
(B) in the case of an error described in sub-
section (a)(2), to be CSRS-Offset covered as well; or
(C) in the case of an error described in sub-
section (a)(3), to be CSRS covered instead; or
(2) to remain Social Security-Only covered.
(c) CORRECTED ERROR.—
(1) IN
GENERAL.—Not later than 6 months
after the date of enactment of this Act, there shall
be submitted to the Congress a proposal (including
any necessary draft legislation) to carry out the pol-
icy described in paragraph (2).
(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
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comparable to the treatment afforded under this
Act.
(3) JOINT ACTION.—This subsection shall be
carried out by the Director of the Office of Per-
sonnel Management, in consultation with the Execu-
tive Director of the Federal Retirement Thrift In-
vestment Board and the Commissioner of Social Se-
curity.
(d) DEFAULT RULE.—In the case of any employee
to whom subsection (b) applies, if the employee is given
written notice in accordance with section 201 as to the
availability of an election under this section, but does not
make any such election within the 6-month period begin-
ning on the date on which such notice is so given, the
option under subsection (b)(2) shall be deemed to have
been elected on the last day of such period.
(e) RETROACTIVE EFFECT.—An election under this
section (including an election by default, and an election
to remain covered by the retirement system by which the
electing individual is covered as of the date of the election)
shall be effective retroactive to the effective date of the
retirement coverage error (as referred to in subsection (a))
to which such election relates.
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SEC. 112. EFFECT OF AN ELECTION TO BECOME FERS COV-
ERED TO CORRECT THE RETIREMENT COV-
ERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 111(a)(1) who elects the option under section
111(b)(1)(A).
(b) MAKEUP CONTRIBUTIONS TO THE CSRDF.—
Upon notification that an employee has made an election
under this section, the agency in or under which such em-
ployee is employed shall promptly pay to the CSRDF, in
a lump sum, an amount equal to the sum of—
(1) the amount that should have been deducted
and withheld from the pay of the employee for the
period of erroneous coverage involved under section
8422 of title 5, United States Code; and
(2) the Government contributions that should
have been paid for the period of erroneous coverage
involved under section 8423 of title 5, United States
Code.
(c) MAKEUP CONTRIBUTIONS TO THE THRIFT SAV-
INGS FUND.—Section 102(c) shall apply in the case of an
employee described in subsection (a).
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SEC. 113. EFFECT OF AN ELECTION TO BECOME CSRS-OFF-
SET COVERED TO CORRECT THE RETIRE-
MENT COVERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 111(a)(2) who elects the option under section
111(b)(1)(B).
(b) MAKEUP CONTRIBUTIONS TO THE CSRDF.—
Upon notification that an employee has made an election
under this section, the agency in or under which such em-
ployee is employed shall promptly pay to the CSRDF, in
a lump sum, an amount equal to the sum of—
(1) the amount that should have been deducted
and withheld from the pay of the employee for the
period of erroneous coverage involved under section
8334 of title 5, United States Code; and
(2) the Government contributions that should
have been paid under section 8334 of title 5, United
States Code, for the period of erroneous coverage in-
volved.
(c) MAKEUP CONTRIBUTIONS TO THE THRIFT SAV-
INGS FUND.—
(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)
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of paragraph (1) thereof, and the other provisions of
section 102(c) to the extent that they relate to those
subparagraphs).
(2) APPROPRIATE PERCENTAGES, ETC. TO BE
USED.—For purposes of paragraph (1), section
102(c) shall be applied—
(A) by substituting ‘‘section 8351(b)’’ for
‘‘section 8432(a)’’ and by substituting ‘‘CSRS
covered and CSRS-Offset covered’’ for ‘‘FERS
covered’’ in paragraph (2)(B)(i) thereof; and
(B) by substituting ‘‘section 8351(b)(2)’’
for ‘‘section 8432(a)’’ in paragraph (2)(C)(ii)
thereof.
SEC. 114. EFFECT OF AN ELECTION TO BECOME CSRS COV-
ERED TO CORRECT THE RETIREMENT COV-
ERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 111(a)(3) who elects the option under section
111(b)(1)(C).
(b) MAKEUP CONTRIBUTIONS TO THE CSRDF.—
(1) IN GENERAL.—Upon notification that an
employee has made an election under this section,
the agency in or under which such employee is em-
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ployed shall promptly pay to the CSRDF, in a lump
sum, an amount equal to the sum of—
(A) the amount that should have been de-
ducted and withheld from the pay of the em-
ployee for the period of erroneous coverage in-
volved under section 8334 of title 5, United
States Code; and
(B) the Government contributions that
should have been paid under such section for
the period of erroneous coverage involved.
(2) AGENCY TO BE REIMBURSED FOR CERTAIN
AMOUNTS.—
(A) IN GENERAL.—The employee for whom
the payment under paragraph (1) is made shall
repay to the agency (referred to in paragraph
(1)) an amount equal to the OASDI employee
taxes refunded or refundable to such employee
for any portion of the period of erroneous cov-
erage involved (computed in such manner as the
Director of the Office of Personnel Manage-
ment, with the concurrence of the Secretary of
the Treasury, shall by regulation prescribe), not
to exceed the amount described in paragraph
(1)(A).
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(B) RIGHT OF RECOVERY; WAIVER.—If the
employee fails to repay the amount required
under subparagraph (A), a sum equal to the
amount outstanding is recoverable by the Gov-
ernment from the employee (or the employee’s
estate, if applicable) by—
(i) setoff against accrued pay, com-
pensation, amount of retirement credit, or
another amount due the employee from the
Government; and
(ii) such other method as is provided
by law for the recovery of amounts owing
to the Government.
The head of the agency concerned may waive,
in whole or in part, a right of recovery under
this paragraph if it is shown that recovery
would be against equity and good conscience or
against the public interest.
(C) TREATMENT OF AMOUNTS REPAID OR
RECOVERED.—Any amount repaid by, or recov-
ered from, an individual (or an estate) under
this paragraph shall be credited to the appro-
priation account from which the amount in-
volved was originally paid.
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(c) MAKEUP CONTRIBUTIONS TO THE THRIFT SAV-
INGS FUND.—In the case of an employee described in sub-
section (a), makeup contributions to the Thrift Savings
Fund shall be made in the same manner as described in
section 113(c).
Subtitle C—Employee Who Should
Have Been Social Security-Only
Covered, But Who Was Erro-
neously FERS Covered, CSRS-
Offset Covered, or CSRS Cov-
ered Instead
SEC. 121. UNCORRECTED ERROR: EMPLOYEE WHO SHOULD
BE SOCIAL SECURITY-ONLY COVERED, BUT
WHO IS ERRONEOUSLY FERS COVERED IN-
STEAD.
(a) IN GENERAL.—Except as provided in section 125,
this section shall apply in the case of any employee who
should be Social Security-Only covered but, as a result of
a retirement coverage error, is FERS covered instead.
(b) AUTOMATIC EXCLUSION FROM FERS.—An em-
ployee described in subsection (a) shall not, by reason of
the retirement coverage error described in subsection (a),
be eligible to be treated as an individual who is FERS
covered.
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(c) DISPOSITION OF EMPLOYEE CONTRIBUTIONS TO
THE CSRDF.—There shall be paid to the employee, from
the CSRDF, any lump-sum credit to which such employee
would be entitled under section 8424 of title 5, United
States Code, to the extent attributable to the period of
erroneous coverage involved.
(d) DISPOSITION OF TSP CONTRIBUTIONS.—
(1) GOVERNMENT
CONTRIBUTIONS.—All Gov-
ernment contributions made on behalf of the em-
ployee to the Thrift Savings Fund that are attrib-
utable to the period of erroneous coverage involved
(including any earnings thereon) shall be forfeited in
the same manner as described in section 105(c).
(2) 
EMPLOYEE
CONTRIBUTIONS.—Notwith-
standing any other provision of this section or any
other provision of law, any contributions made by
the employee to the Thrift Savings Fund during the
period of erroneous coverage involved (including any
earnings thereon) shall be treated as if such em-
ployee had then been correctly covered.
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SEC. 122. UNCORRECTED ERROR: EMPLOYEE WHO SHOULD
BE SOCIAL SECURITY-ONLY COVERED, BUT
WHO IS ERRONEOUSLY CSRS-OFFSET COV-
ERED INSTEAD.
(a) IN GENERAL.—Except as provided in section 125,
this section shall apply in the case of any employee who
should be Social Security-Only covered but, as a result of
a retirement coverage error, is CSRS-Offset covered in-
stead.
(b) AUTOMATIC EXCLUSION FROM CSRS-OFFSET.—
An employee described in subsection (a) shall not, by rea-
son of the retirement coverage error described in sub-
section (a), be eligible to be treated as an individual who
is CSRS-Offset covered.
(c) DISPOSITION OF EMPLOYEE CONTRIBUTIONS TO
THE CSRDF.—There shall be paid to the employee, from
the CSRDF, the lump-sum credit to which such employee
would be entitled under section 8342 of title 5, United
States Code, to the extent attributable to the period of
erroneous coverage involved.
(d) DISPOSITION OF TSP CONTRIBUTIONS.—In the
case of an employee described in subsection (a), section
121(d)(2) shall apply.
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SEC. 123. UNCORRECTED ERROR: EMPLOYEE WHO SHOULD
BE SOCIAL SECURITY-ONLY COVERED, BUT
WHO IS ERRONEOUSLY CSRS COVERED IN-
STEAD.
(a) IN GENERAL.—Except as provided in section 125,
this section shall apply in the case of any employee who
should be Social Security-Only covered but, as a result of
a retirement coverage error, is CSRS covered instead.
(b) AUTOMATIC EXCLUSION FROM CSRS.—An em-
ployee described in subsection (a) shall not, by reason of
the retirement coverage error described in subsection (a),
be eligible to be treated as an individual who is CSRS cov-
ered.
(c) DISPOSITION
OF
CONTRIBUTIONS
TO
THE
CSRDF.—
(1) IN GENERAL.—In the case of an employee
described in subsection (a), section 102(b) shall
apply.
(2) IRRELEVANT
PROVISIONS
TO
BE
DIS-
REGARDED.—For purposes of paragraph (1), section
102(b) shall be applied disregarding the provisions
of paragraphs (1)(B)(ii)(II) (to the extent they re-
late to amounts that should have been deducted
under section 8422 of title 5, United States Code)
and (2)(B)(ii)(II) thereof.
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(d) DISPOSITION OF TSP CONTRIBUTIONS.—In the
case of an employee described in subsection (a), section
121(d)(2) shall apply.
SEC. 124. CORRECTED ERROR: SITUATIONS UNDER SEC-
TIONS 121 THROUGH 123.
(a) IN GENERAL.—Not later than 6 months after the
date of enactment of this Act, there shall be submitted
to the Congress a proposal (including any necessary draft
legislation) to carry out the policy described in subsection
(b).
(b) POLICY.—Under the proposal, any employee with
respect to whom the applicable retirement coverage error
(referred to in section 121, 122, or 123, as applicable)
has already been corrected, but under terms less advan-
tageous to the employee than would have been the case
under this Act, shall be afforded a reasonable opportunity
to obtain treatment comparable to the treatment afforded
under this Act.
(c) JOINT ACTION.—This section shall be carried out
by the Director of the Office of Personnel Management,
in consultation with the Executive Director of the Federal
Retirement Thrift Investment Board and the Commis-
sioner of Social Security.
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SEC. 125. VESTED EMPLOYEES EXCEPTED FROM AUTO-
MATIC EXCLUSION.
(a) IN GENERAL.—Nothing in this subtitle shall, by
reason of any retirement coverage error, result in the auto-
matic exclusion of any employee from FERS, CSRS-Off-
set, or CSRS if, as of the date on which notice of such
error is given (in accordance with section 201), such em-
ployee’s rights have vested under the retirement system
involved.
(b) VESTING.—For purposes of this section, vesting
of rights shall be considered to have occurred if the em-
ployee has (by the date as of which the determination is
made) completed at least 5 years of civilian service, taking
into account only creditable service under section 8332 or
8411 of title 5, United States Code.
(c) ELECTIONS.—
(1) ERRONEOUSLY FERS COVERED.—Any em-
ployee affected by an error described in section 121
who is determined under this section to satisfy sub-
section (b) may elect—
(A) to be treated in accordance with sec-
tion 121; or
(B) to remain FERS covered.
(2) OTHER CASES.—Any employee affected by
an error described in section 122 or 123 who is de-
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termined under this section to satisfy subsection (b)
may elect—
(A) to be treated in accordance with sec-
tion 122 or 123 (as applicable); or
(B) to remain (or instead become) CSRS-
Offset covered.
(d) EFFECT OF AN ELECTION TO BE TRANSFERRED
FROM CSRS TO CSRS-OFFSET.—In the case of an em-
ployee affected by an error described in section 123 who
elects the option under subsection (c)(2)(B), the effect of
the election shall be the same as described in section 104.
(e) DEFAULT RULE.—If the employee does not make
any election within the 6-month period beginning on the
date on which the appropriate notice is given to such em-
ployee, the option under paragraph (1)(B) or (2)(B) of
subsection (c), as applicable, shall be deemed to have been
elected as of the last day of such period. Nothing in this
section shall be considered to afford an employee the op-
tion of becoming or remaining CSRS covered.
(f) RETROACTIVE EFFECT.—An election under this
section (including an election by default, and an election
to remain covered by the retirement system by which the
electing individual is covered as of the date of the election)
shall be effective retroactive to the effective date of the
retirement coverage error to which the election relates.
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(g) SPECIAL RULE IN CASE OF DISABILITY.—If, as
of the date referred to in subsection (a), the employee is
entitled to receive an annuity under chapter 83 or 84 of
title 5, United States Code, based on disability, or com-
pensation under subchapter I of chapter 81 of such title
for injury to, or disability of, such employee, subsections
(a) and (b) shall be applied by substituting (for the date
that would otherwise apply) the date as of which entitle-
ment to such annuity or compensation terminates (if at
all).
(h) NOTIFICATION.—Any notice under section 201
shall include such additional information or other modi-
fications as the Office of Personnel Management may by
regulation prescribe in connection with the situations cov-
ered by this subtitle, particularly as they relate to the con-
sequences of being vested or not being vested.
Subtitle D—Employee Who Should
Have Been CSRS Covered or
CSRS-Offset Covered, But Who
Was Erroneously FERS Covered
Instead
SEC. 131. ELECTIONS.
(a) APPLICABILITY.—This subtitle shall apply in the
case of any employee who—
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(1) should be (or should have been) CSRS cov-
ered but, as a result of a retirement coverage error,
is (or was) FERS covered instead; or
(2) should be (or should have been) CSRS-Off-
set covered but, as a result of a retirement coverage
error, is (or was) FERS covered instead.
(b) UNCORRECTED ERROR.—If, at the time of mak-
ing an election under this section, the retirement coverage
error described in paragraph (1) or (2) of subsection (a)
(as applicable) has not been corrected, the employee af-
fected by such error may elect—
(1)(A) in the case of an error described in sub-
section (a)(1), to be CSRS covered instead; or
(B) in the case of an error described in sub-
section (a)(2), to be CSRS-Offset covered instead; or
(2) to remain FERS covered.
(c) CORRECTED ERROR.—If, at the time of making
an election under this section, the retirement coverage
error described in paragraph (1) or (2) of subsection (a)
(as applicable) has been corrected, the employee affected
by such error may elect—
(1) to be FERS covered instead; or
(2)(A) in the case of an error described in sub-
section (a)(1), to remain CSRS covered; or
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(B) in the case of an error described in sub-
section (a)(2), to remain CSRS-Offset covered.
(d) DEFAULT RULE.—If the employee is given writ-
ten notice in accordance with section 201 as to the avail-
ability of an election under this section, but does not make
any such election within the 6-month period beginning on
the date on which such notice is so given, the option under
subsection (b)(2) or (c)(2), as applicable, shall be deemed
to have been elected on the last day of such period.
(e) RETROACTIVE EFFECT.—An election under this
section (including an election by default, and an election
to remain covered by the retirement system by which the
electing individual is covered as of the date of the election)
shall be effective retroactive to the effective date of the
retirement coverage error (as referred to in subsection (a))
to which such election relates.
SEC. 132. EFFECT OF AN ELECTION TO BE TRANSFERRED
FROM FERS TO CSRS TO CORRECT A RETIRE-
MENT COVERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 131(a)(1) who elects the option available to such em-
ployee under section 131(b)(1)(A).
(b) MAKEUP CONTRIBUTIONS TO THE CSRDF.—
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(1) IN GENERAL.—Upon notification that an
employee has made an election under this section,
the agency in or under which such employee is em-
ployed shall promptly pay to the CSRDF, in a lump
sum, an amount equal to the excess of—
(A) the amount by which—
(i) the amount that should have been
deducted and withheld from the pay of the
employee for the period of erroneous cov-
erage involved under section 8334 of title
5, United States Code, exceeds
(ii) the amount that was actually de-
ducted and withheld from the pay of the
employee for the period of erroneous cov-
erage involved under section 8422 of such
title (and not refunded), over
(B) the amount by which—
(i) the amount of the Government
contributions actually made under section
8423 of such title with respect to the em-
ployee for the period of erroneous coverage
involved, exceeds
(ii) the amount of the Government
contributions that should have been made
under section 8334 of such title with re-
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spect to the employee for the period of er-
roneous coverage involved.
(2) AGENCY TO BE REIMBURSED FOR CERTAIN
AMOUNTS.—
(A) IN GENERAL.—The employee for whom
the payment under paragraph (1) is made shall
repay to the agency (referred to in paragraph
(1)) an amount equal to the OASDI employee
taxes refunded or refundable to such employee
for any portion of the period of erroneous cov-
erage involved (computed in such manner as the
Director of the Office of Personnel Manage-
ment, with the concurrence of the Commis-
sioner of Social Security, shall by regulation
prescribe), not to exceed the amount described
in paragraph (1)(A).
(B) RIGHT OF RECOVERY; WAIVER.—If the
employee fails to repay the amount required
under subparagraph (A), a sum equal to the
amount outstanding is recoverable by the Gov-
ernment from the employee (or the employee’s
estate, if applicable) by—
(i) setoff against accrued pay, com-
pensation, amount of retirement credit, or
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another amount due the employee from the
Government; and
(ii) such other method as is provided
by law for the recovery of amounts owing
to the Government.
The head of the agency concerned may waive,
in whole or in part, a right of recovery under
this paragraph if it is shown that recovery
would be against equity and good conscience or
against the public interest.
(C) TREATMENT OF AMOUNTS REPAID OR
RECOVERED.—Any amount repaid by, or recov-
ered from, an individual (or an estate) under
this paragraph shall be credited to the appro-
priation, fund, or account from which the
amount involved was originally paid.
(c) DISPOSITION
OF
EXCESS
TSP CONTRIBU-
TIONS.—Section 105(c) shall apply in the case of an em-
ployee described in subsection (a).
SEC. 133. EFFECT OF AN ELECTION TO BE TRANSFERRED
FROM FERS TO CSRS-OFFSET TO CORRECT A
RETIREMENT COVERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
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tion 131(a)(2) who elects the option available to such em-
ployee under section 131(b)(1)(B).
(b) EFFECT.—The effect of an election referred to
in subsection (a) shall be substantially the same as that
described in section 105.
SEC. 134. EFFECT OF AN ELECTION TO BE RESTORED TO
FERS AFTER HAVING BEEN CORRECTED TO
CSRS.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 131(a)(1) who elects the option under section
131(c)(1).
(b) EFFECT.—The effect of an election referred to
in subsection (a) shall be substantially the same as that
described in section 102.
SEC. 135. EFFECT OF AN ELECTION TO BE RESTORED TO
FERS AFTER HAVING BEEN CORRECTED TO
CSRS-OFFSET.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 131(a)(2) who elects the option under section
131(c)(1).
(b) EFFECT.—The effect of an election referred to
in subsection (a) shall be substantially the same as that
described in section 103.
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SEC. 136. DISQUALIFICATION OF CERTAIN INDIVIDUALS TO
WHOM SAME ELECTION WAS PREVIOUSLY
AVAILABLE.
Notwithstanding any other provision of this subtitle,
an election under this subtitle shall not be available in the
case of any individual to whom an election under section
846.204 of title 5 of the Code of Federal Regulations (as
in effect as of January 1, 1997) was made available in
connection with the same error pursuant to notification
provided in accordance with such section.
Subtitle E—Employee Who Should
Have Been CSRS-Offset Cov-
ered, But Who Was Erroneously
CSRS Covered Instead
SEC. 141. AUTOMATIC TRANSFER TO CSRS-OFFSET.
(a) APPLICABILITY.—This subtitle shall apply in the
case of any employee who should be (or should have been)
CSRS-Offset covered but, as a result of a retirement cov-
erage error, is (or was) CSRS covered instead.
(b) UNCORRECTED ERROR.—If the error has not
been corrected, the employee shall be treated in the same
way as if such employee had instead been CSRS-Offset
covered, effective retroactive to the effective date of such
error.
(c) CORRECTED ERROR.—If the error has been cor-
rected, the correction shall (to the extent not already car-
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ried out) be made effective retroactive to the effective date
of such error.
SEC. 142. EFFECT OF TRANSFER.
The effect of a transfer under section 141 shall be
as set forth in regulations which the Office of Personnel
Management shall prescribe consistent with section 104.
Subtitle F—Employee Who Should
Have Been CSRS Covered, But
Who Was Erroneously CSRS-Off-
set Covered Instead
SEC. 151. ELECTIONS.
(a) APPLICABILITY.—This subtitle shall apply in the
case of any employee who should be (or should have been)
CSRS covered but, as a result of a retirement coverage
error, is (or was) CSRS-Offset covered instead.
(b) UNCORRECTED ERROR.—If, at the time of mak-
ing an election under this section, the retirement coverage
error described in subsection (a) has not been corrected,
the employee affected by such error may elect—
(1) to be CSRS covered instead; or
(2) to remain CSRS-Offset covered.
(c) CORRECTED ERROR.—If, at the time of making
an election under this section, the retirement coverage
error described in subsection (a) has been corrected, the
employee affected by such error may elect—
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(1) to be CSRS-Offset covered instead; or
(2) to remain CSRS covered.
(d) DEFAULT RULE.—If the employee is given writ-
ten notice in accordance with section 201 as to the avail-
ability of an election under this section, but does not make
any such election within the 6-month period beginning on
the date on which such notice is so given, the option under
subsection (b)(2) or (c)(2), as applicable, shall be deemed
to have been elected on the last day of such period.
(e) RETROACTIVE EFFECT.—An election under this
section (including an election by default, and an election
to remain covered by the retirement system by which the
electing individual is covered as of the date of the election)
shall be effective retroactive to the effective date of the
retirement coverage error (as referred to in subsection (a))
to which such election relates.
SEC. 152. EFFECT OF AN ELECTION TO BE TRANSFERRED
FROM CSRS-OFFSET TO CSRS TO CORRECT
THE RETIREMENT COVERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 151(a) who elects the option available to such em-
ployee under section 151(b)(1).
(b) MAKEUP CONTRIBUTIONS TO THE CSRDF.—
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(1) IN GENERAL.—Upon notification that an
employee has made an election under this section,
the agency in or under which such employee is em-
ployed shall promptly pay to the CSRDF, in a lump
sum, an amount equal to the amount by which—
(A) the amount that should have been de-
ducted and withheld from the pay of the em-
ployee for the period of erroneous coverage in-
volved under section 8334 of title 5, United
States Code (by virtue of being CSRS covered),
exceeds
(B) any amounts actually deducted and
withheld from the pay of the employee for the
period of erroneous coverage involved under
such section (pursuant to CSRS-Offset cov-
erage).
(2) AGENCY TO BE REIMBURSED FOR CERTAIN
AMOUNTS.—
(A) IN GENERAL.—The employee for whom
the payment under paragraph (1) is made shall
repay to the agency (referred to in paragraph
(1)) an amount equal to the OASDI employee
taxes refunded or refundable to such employee
for any portion of the period of erroneous cov-
erage involved (computed in such manner as the
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Director of the Office of Personnel Manage-
ment, with the concurrence of the Commis-
sioner of Social Security, shall by regulation
prescribe), not to exceed the amount described
in paragraph (1)(A).
(B) RIGHT OF RECOVERY; WAIVER.—If the
employee fails to repay the amount required
under subparagraph (A), a sum equal to the
amount outstanding is recoverable by the Gov-
ernment from the employee (or the employee’s
estate, if applicable) by—
(i) setoff against accrued pay, com-
pensation, amount of retirement credit, or
another amount due the employee from the
Government; and
(ii) such other method as is provided
by law for the recovery of amounts owing
to the Government.
The head of the agency concerned may waive,
in whole or in part, a right of recovery under
this paragraph if it is shown that recovery
would be against equity and good conscience or
against the public interest.
(C) TREATMENT OF AMOUNTS REPAID OR
RECOVERED.—Any amount repaid by, or recov-
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ered from, an individual (or an estate) under
this paragraph shall be credited to the appro-
priation, fund, or account from which the
amount involved was originally paid.
(3) DEPOSIT TO BE BASED ON AMOUNT OF RE-
FUND ACTUALLY RECEIVED.—For purposes of ap-
plying sections 8334(d)(1) and 8339(i) of title 5,
United States Code, in the case of an employee de-
scribed in subsection (a) who has received a refund
of deductions that are attributable to a period when
the employee was erroneously CSRS-Offset covered,
nothing in either of those sections shall be consid-
ered to require that, in order to receive credit for
that period as a CSRS-covered employee, a deposit
be made in excess of the refund actually received for
such period, plus interest.
SEC. 153. EFFECT OF AN ELECTION TO BE RESTORED TO
CSRS-OFFSET AFTER HAVING BEEN COR-
RECTED TO CSRS.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 151(a) who elects the option available to such em-
ployee under section 151(c)(1).
(b) DISPOSITION
OF
CONTRIBUTIONS
TO
THE
CSRDF.—In the case of an employee described in sub-
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section (a), the provisions of section 102(b) shall apply,
except that, in applying such provisions—
(1) ‘‘the applicable provisions of section 8334’’
shall be substituted for ‘‘section 8422’’ in paragraph
(1)(B)(ii)(II) thereof; and
(2) ‘‘the applicable provisions of section 8334’’
shall be substituted for ‘‘section 8423’’ in paragraph
(2)(B)(ii)(II) thereof.
Subtitle G—Additional Provisions
Relating to Government Agencies
SEC. 161. REPAYMENT REQUIRED IN CERTAIN SITUATIONS.
(a) IN GENERAL.—An individual who previously re-
ceived a payment ordered by a court or provided as a set-
tlement of claim for losses resulting from a retirement cov-
erage error shall not be entitled to make an election under
this Act unless repayment of the amount so received by
such individual is waived in whole or in part by the Office
of Personnel Management, and any amount not waived is
repaid.
(b) REGULATIONS.—Any repayment under this sec-
tion shall be made in accordance with regulations pre-
scribed by the Office.
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SEC. 162. EQUITABLE SHARING OF AMOUNTS PAYABLE
FROM THE GOVERNMENT IF MORE THAN ONE
AGENCY INVOLVED.
The Office of Personnel Management shall by regula-
tion prescribe rules under which, in the case of an em-
ployee who has been employed in or under more than 1
agency since the date of the retirement coverage error in-
volved (and before its rectification under this Act), any
contributions or other amounts required to be paid from
the then current employing agency (other than lost earn-
ings under section 163(a)(2)) shall be equitably allocated
between or among the appropriate agencies.
SEC. 163. PROVISIONS RELATING TO THE ORIGINAL RE-
SPONSIBLE AGENCY.
(a) OBLIGATIONS OF THE ORIGINAL RESPONSIBLE
AGENCY.—
(1) EXPENSES
FOR
SERVICES
OF
FINANCIAL
ADVISOR.—The Office of Personnel Management
shall by regulation prescribe rules under which, in
the case of any employee eligible to make an election
under this Act, the original responsible agency (as
determined under succeeding provisions of this sec-
tion) shall pay (or make reimbursement for) any
reasonable expenses incurred by such employee for
services received from any licensed financial or legal
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consultant or advisor in connection with such elec-
tion.
(2) SPECIAL RULE.—Such regulations shall also
include provisions to ensure that, to the extent lost
earnings under the Thrift Savings Fund are involved
in connection with a particular error, the original re-
sponsible agency shall pay (or reimburse any other
agency that pays) any amounts to the Thrift Sav-
ings Fund representing lost earnings with respect to
such error.
(b) ORIGINAL RESPONSIBLE AGENCY DEFINED.—
For purposes of this Act, the term ‘‘original responsible
agency’’, with respect to a retirement coverage error af-
fecting an employee, means—
(1) except in the situation described in para-
graph (2), the agency determined by the Office of
Personnel Management to have made the initial re-
tirement coverage error (including one made before
January 1, 1984); or
(2) if the error is attributable, in whole or in
part, to an erroneous regulation promulgated by the
Office of Personnel Management, such Office.
(c) PROCEDURES FOR IDENTIFYING THE ORIGINAL
RESPONSIBLE AGENCY.—
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(1) IN GENERAL.—For purposes of this section,
the original responsible agency, in any situation to
which this section applies, shall be identified by the
Office of Personnel Management in accordance with
regulations which the Office shall prescribe.
(2) FINALITY.—A determination made by the
Office under this subsection shall be final and not
subject to any review.
(d) IF ORIGINAL RESPONSIBLE AGENCY NO LONGER
EXISTS.—If the agency which (before the application of
this subsection) is identified as the original responsible
agency no longer exists (whether because of a reorganiza-
tion or otherwise)—
(1) the successor agency (as determined under
regulations prescribed by the Office) shall be treated
as the original responsible agency; or
(2) if none, this section shall be applied by sub-
stituting the CSRDF for the original responsible
agency.
(e) SOURCE OF PAYMENTS IF ERROR DUE TO ERRO-
NEOUS OPM REGULATIONS.—In any case in which the
Office of Personnel Management is the original respon-
sible agency by reason of subsection (b)(2), any amounts
payable from the Office under this section shall be payable
from the CSRDF.
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TITLE II—GENERAL PROVISIONS
SEC. 201. IDENTIFICATION AND NOTIFICATION REQUIRE-
MENTS.
(a) IN GENERAL.—The Office of Personnel Manage-
ment shall prescribe regulations under which Government
agencies shall take such measures as may be necessary
to ensure that all individuals who are (or have been) af-
fected by a retirement coverage error giving rise to any
election or automatic change in retirement coverage under
this Act shall be promptly identified and notified in ac-
cordance with this section.
(b) MATTER TO BE INCLUDED IN NOTICE TO INDI-
VIDUALS.—Any notice furnished under this section shall
be made in writing and shall include at least the following:
(1) DESCRIPTION OF ERROR.—A description of
the error involved, including a clear and concise ex-
planation as to why the original retirement coverage
determination was erroneous, citations to (and a
summary description of) the pertinent provisions of
law, and how that determination should instead have
been made.
(2) METHOD
FOR
RECTIFICATION.—How the
error is to be rectified under this Act, including
whether rectification will be achieved through an
automatic change in retirement coverage (and, if so,