H. R. 1585—335 
so designated when the claim is filed under this section 
or was so designated within the 6-month period before 
the claim is filed under this section; or 
‘‘(II) in the case of an action that is refiled under 
this section by reason of section 1083(c)(2)(A) of the 
National Defense Authorization Act for Fiscal Year 2008 
or is filed under this section by reason of section 1083(c)(3) 
of that Act, the foreign state was designated as a state 
sponsor of terrorism when the original action or the related 
action under section 1605(a)(7) (as in effect before the 
enactment of this section) or section 589 of the Foreign 
Operations, Export Financing, and Related Programs 
Appropriations Act, 1997 (as contained in section 101(c) 
of division A of Public Law 104–208) was filed; 
‘‘(ii) the claimant or the victim was, at the time the 
act described in paragraph (1) occurred— 
‘‘(I) a national of the United States; 
‘‘(II) a member of the armed forces; or 
‘‘(III) otherwise an employee of the Government 
of the United States, or of an individual performing 
a contract awarded by the United States Government, 
acting within the scope of the employee’s employment; 
and 
‘‘(iii) in a case in which the act occurred in the foreign 
state against which the claim has been brought, the claim-
ant has afforded the foreign state a reasonable opportunity 
to arbitrate the claim in accordance with the accepted 
international rules of arbitration; or 
‘‘(B) the act described in paragraph (1) is related to 
Case Number 1:00CV03110 (EGS) in the United States 
District Court for the District of Columbia. 
‘‘(b) LIMITATIONS.—An action may be brought or maintained 
under this section if the action is commenced, or a related action 
was commenced under section 1605(a)(7) (before the date of the 
enactment of this section) or section 589 of the Foreign Operations, 
Export Financing, and Related Programs Appropriations Act, 1997 
(as contained in section 101(c) of division A of Public Law 104– 
208) not later than the latter of— 
‘‘(1) 10 years after April 24, 1996; or 
‘‘(2) 10 years after the date on which the cause of action 
arose. 
‘‘(c) PRIVATE RIGHT
OF ACTION.—A foreign state that is or 
was a state sponsor of terrorism as described in subsection 
(a)(2)(A)(i), and any official, employee, or agent of that foreign 
state while acting within the scope of his or her office, employment, 
or agency, shall be liable to— 
‘‘(1) a national of the United States, 
‘‘(2) a member of the armed forces, 
‘‘(3) an employee of the Government of the United States, 
or of an individual performing a contract awarded by the United 
States Government, acting within the scope of the employee’s 
employment, or 
‘‘(4) the legal representative of a person described in para-
graph (1), (2), or (3), 
for personal injury or death caused by acts described in subsection 
(a)(1) of that foreign state, or of an official, employee, or agent 
of that foreign state, for which the courts of the United States
H. R. 1585—336 
may maintain jurisdiction under this section for money damages. 
In any such action, damages may include economic damages, 
solatium, pain and suffering, and punitive damages. In any such 
action, a foreign state shall be vicariously liable for the acts of 
its officials, employees, or agents. 
‘‘(d) ADDITIONAL DAMAGES.—After an action has been brought 
under subsection (c), actions may also be brought for reasonably 
foreseeable property loss, whether insured or uninsured, third party 
liability, and loss claims under life and property insurance policies, 
by reason of the same acts on which the action under subsection 
(c) is based. 
‘‘(e) SPECIAL MASTERS.— 
‘‘(1) IN GENERAL.—The courts of the United States may 
appoint special masters to hear damage claims brought under 
this section. 
‘‘(2) TRANSFER
OF
FUNDS.—The Attorney General shall 
transfer, from funds available for the program under section 
1404C of the Victims of Crime Act of 1984 (42 U.S.C. 10603c), 
to the Administrator of the United States district court in 
which any case is pending which has been brought or main-
tained under this section such funds as may be required to 
cover the costs of special masters appointed under paragraph 
(1). Any amount paid in compensation to any such special 
master shall constitute an item of court costs. 
‘‘(f) APPEAL.—In an action brought under this section, appeals 
from orders not conclusively ending the litigation may only be 
taken pursuant to section 1292(b) of this title. 
‘‘(g) PROPERTY DISPOSITION.— 
‘‘(1) IN GENERAL.—In every action filed in a United States 
district court in which jurisdiction is alleged under this section, 
the filing of a notice of pending action pursuant to this section, 
to which is attached a copy of the complaint filed in the action, 
shall have the effect of establishing a lien of lis pendens upon 
any real property or tangible personal property that is— 
‘‘(A) subject to attachment in aid of execution, or execu-
tion, under section 1610; 
‘‘(B) located within that judicial district; and 
‘‘(C) titled in the name of any defendant, or titled 
in the name of any entity controlled by any defendant 
if such notice contains a statement listing such controlled 
entity. 
‘‘(2) NOTICE.—A notice of pending action pursuant to this 
section shall be filed by the clerk of the district court in the 
same manner as any pending action and shall be indexed 
by listing as defendants all named defendants and all entities 
listed as controlled by any defendant. 
‘‘(3) ENFORCEABILITY.—Liens established by reason of this 
subsection shall be enforceable as provided in chapter 111 
of this title. 
‘‘(h) DEFINITIONS.—For purposes of this section— 
‘‘(1) the term ‘aircraft sabotage’ has the meaning given 
that term in Article 1 of the Convention for the Suppression 
of Unlawful Acts Against the Safety of Civil Aviation; 
‘‘(2) the term ‘hostage taking’ has the meaning given that 
term in Article 1 of the International Convention Against the 
Taking of Hostages;
H. R. 1585—337 
‘‘(3) the term ‘material support or resources’ has the 
meaning given that term in section 2339A of title 18; 
‘‘(4) the term ‘armed forces’ has the meaning given that 
term in section 101 of title 10; 
‘‘(5) the term ‘national of the United States’ has the 
meaning given that term in section 101(a)(22) of the Immigra-
tion and Nationality Act (8 U.S.C. 1101(a)(22)); 
‘‘(6) the term ‘state sponsor of terrorism’ means a country 
the government of which the Secretary of State has determined, 
for purposes of section 6(j) of the Export Administration Act 
of 1979 (50 U.S.C. App. 2405(j)), section 620A of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2371), section 40 of the 
Arms Export Control Act (22 U.S.C. 2780), or any other provi-
sion of law, is a government that has repeatedly provided 
support for acts of international terrorism; and 
‘‘(7) the terms ‘torture’ and ‘extrajudicial killing’ have the 
meaning given those terms in section 3 of the Torture Victim 
Protection Act of 1991 (28 U.S.C. 1350 note).’’. 
(2) AMENDMENT TO CHAPTER ANALYSIS.—The table of sec-
tions at the beginning of chapter 97 of title 28, United States 
Code, is amended by inserting after the item relating to section 
1605 the following: 
‘‘1605A. Terrorism exception to the jurisdictional immunity of a foreign state.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) GENERAL EXCEPTION.—Section 1605 of title 28, United 
States Code, is amended— 
(A) in subsection (a)— 
(i) in paragraph (5)(B), by inserting ‘‘or’’ after the 
semicolon; 
(ii) in paragraph (6)(D), by striking ‘‘; or’’ and 
inserting a period; and 
(iii) by striking paragraph (7); 
(B) by repealing subsections (e) and (f); and 
(C) in subsection (g)(1)(A), by striking ‘‘but for sub-
section (a)(7)’’ and inserting ‘‘but for section 1605A’’. 
(2) COUNTERCLAIMS.—Section 1607(a) of title 28, United 
States Code, is amended by inserting ‘‘or 1605A’’ after ‘‘1605’’. 
(3) PROPERTY.—Section 1610 of title 28, United States Code, 
is amended— 
(A) in subsection (a)(7), by striking ‘‘1605(a)(7)’’ and 
inserting ‘‘1605A’’; 
(B) in subsection (b)(2), by striking ‘‘(5), or (7), or 
1605(b)’’ and inserting ‘‘or (5), 1605(b), or 1605A’’; 
(C) in subsection (f), in paragraphs (1)(A) and (2)(A), 
by inserting ‘‘(as in effect before the enactment of section 
1605A) or section 1605A’’ after ‘‘1605(a)(7)’’; and 
(D) by adding at the end the following: 
‘‘(g) PROPERTY IN CERTAIN ACTIONS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (3), the property 
of a foreign state against which a judgment is entered under 
section 1605A, and the property of an agency or instrumentality 
of such a state, including property that is a separate juridical 
entity or is an interest held directly or indirectly in a separate 
juridical entity, is subject to attachment in aid of execution, 
and execution, upon that judgment as provided in this section, 
regardless of—
H. R. 1585—338 
‘‘(A) the level of economic control over the property 
by the government of the foreign state; 
‘‘(B) whether the profits of the property go to that 
government; 
‘‘(C) the degree to which officials of that government 
manage the property or otherwise control its daily affairs; 
‘‘(D) whether that government is the sole beneficiary 
in interest of the property; or 
‘‘(E) whether establishing the property as a separate 
entity would entitle the foreign state to benefits in United 
States courts while avoiding its obligations. 
‘‘(2) UNITED STATES SOVEREIGN IMMUNITY INAPPLICABLE.— 
Any property of a foreign state, or agency or instrumentality 
of a foreign state, to which paragraph (1) applies shall not 
be immune from attachment in aid of execution, or execution, 
upon a judgment entered under section 1605A because the 
property is regulated by the United States Government by 
reason of action taken against that foreign state under the 
Trading With the Enemy Act or the International Emergency 
Economic Powers Act. 
‘‘(3) THIRD-PARTY JOINT PROPERTY HOLDERS.—Nothing in 
this subsection shall be construed to supersede the authority 
of a court to prevent appropriately the impairment of an 
interest held by a person who is not liable in the action giving 
rise to a judgment in property subject to attachment in aid 
of execution, or execution, upon such judgment.’’. 
(4) VICTIMS OF CRIME ACT.—Section 1404C(a)(3) of the Vic-
tims of Crime Act of 1984 (42 U.S.C. 10603c(a)(3)) is amended 
by striking ‘‘December 21, 1988 with respect to which an inves-
tigation or’’ and inserting ‘‘October 23, 1983, with respect to 
which an investigation or civil or criminal’’. 
(c) APPLICATION TO PENDING CASES.— 
(1) IN GENERAL.—The amendments made by this section 
shall apply to any claim arising under section 1605A of title 
28, United States Code. 
(2) PRIOR ACTIONS.— 
(A) IN GENERAL.—With respect to any action that— 
(i) was brought under section 1605(a)(7) of title 
28, United States Code, or section 589 of the Foreign 
Operations, Export Financing, and Related Programs 
Appropriations Act, 1997 (as contained in section 101(c) 
of division A of Public Law 104–208), before the date 
of the enactment of this Act, 
(ii) relied upon either such provision as creating 
a cause of action, 
(iii) has been adversely affected on the grounds 
that either or both of these provisions fail to create 
a cause of action against the state, and 
(iv) as of such date of enactment, is before the 
courts in any form, including on appeal or motion 
under rule 60(b) of the Federal Rules of Civil Proce-
dure, 
that action, and any judgment in the action shall, on motion 
made by plaintiffs to the United States district court where 
the action was initially brought, or judgment in the action 
was initially entered, be given effect as if the action had
H. R. 1585—339 
originally been filed under section 1605A(c) of title 28, 
United States Code. 
(B) DEFENSES WAIVED.—The defenses of res judicata, 
collateral estoppel, and limitation period are waived— 
(i) in any action with respect to which a motion 
is made under subparagraph (A), or 
(ii) in any action that was originally brought, 
before the date of the enactment of this Act, under 
section 1605(a)(7) of title 28, United States Code, or 
section 589 of the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 
1997 (as contained in section 101(c) of division A of 
Public Law 104–208), and is refiled under section 
1605A(c) of title 28, United States Code, 
to the extent such defenses are based on the claim in 
the action. 
(C) TIME LIMITATIONS.—A motion may be made or an 
action may be refiled under subparagraph (A) only— 
(i) if the original action was commenced not later 
than the latter of— 
(I) 10 years after April 24, 1996; or 
(II) 10 years after the cause of action arose; 
and 
(ii) within the 60-day period beginning on the date 
of the enactment of this Act. 
(3) RELATED ACTIONS.—If an action arising out of an act 
or incident has been timely commenced under section 1605(a)(7) 
of title 28, United States Code, or section 589 of the Foreign 
Operations, Export Financing, and Related Programs Appro-
priations Act, 1997 (as contained in section 101(c) of division 
A of Public Law 104–208), any other action arising out of 
the same act or incident may be brought under section 1605A 
of title 28, United States Code, if the action is commenced 
not later than the latter of 60 days after— 
(A) the date of the entry of judgment in the original 
action; or 
(B) the date of the enactment of this Act. 
(4) PRESERVING
THE
JURISDICTION
OF
THE
COURTS.— 
Nothing in section 1503 of the Emergency Wartime Supple-
mental Appropriations Act, 2003 (Public Law 108–11, 117 Stat. 
579) has ever authorized, directly or indirectly, the making 
inapplicable of any provision of chapter 97 of title 28, United 
States Code, or the removal of the jurisdiction of any court 
of the United States. 
(d) SEVERABILITY.—If any provision of this section or the 
amendments made by this section, or the application of such provi-
sion to any person or circumstance, is held invalid, the remainder 
of this section and such amendments, and the application of such 
provision to other persons not similarly situated or to other cir-
cumstances, shall not be affected by such invalidation.
H. R. 1585—340 
TITLE XI—CIVILIAN PERSONNEL 
MATTERS 
Sec. 1101. Extension of authority to waive annual limitation on total compensation 
paid to Federal civilian employees working overseas under areas of 
United States Central Command. 
Sec. 1102. Continuation of life insurance coverage for Federal employees called to 
active duty. 
Sec. 1103. Transportation of dependents, household effects, and personal property 
to former home following death of Federal employee where death re-
sulted from disease or injury incurred in the Central Command area of 
responsibility. 
Sec. 1104. Special benefits for civilian employees assigned on deployment tem-
porary change of station. 
Sec. 1105. Death gratuity authorized for Federal employees. 
Sec. 1106. Modifications to the National Security Personnel System. 
Sec. 1107. Requirement for full implementation of personnel demonstration project. 
Sec. 1108. Authority for inclusion of certain Office of Defense Research and Engi-
neering positions in experimental personnel program for scientific and 
technical personnel. 
Sec. 1109. Pilot program for the temporary assignment of information technology 
personnel to private sector organizations. 
Sec. 1110. Compensation for Federal wage system employees for certain travel 
hours. 
Sec. 1111. Travel compensation for wage grade personnel. 
Sec. 1112. Accumulation of annual leave by senior level employees. 
Sec. 1113. Uniform allowances for civilian employees. 
Sec. 1114. Flexibility in setting pay for employees who move from a Department of 
Defense or Coast Guard nonappropriated fund instrumentality position 
to a position in the General Schedule pay system. 
Sec. 1115. Retirement service credit for service as cadet or midshipman at a mili-
tary service academy. 
Sec. 1116. Authorization for increased compensation for faculty and staff of the 
Uniformed Services University of the Health Sciences. 
Sec. 1117. Report on establishment of a scholarship program for civilian mental 
health professionals. 
SEC. 1101. EXTENSION OF AUTHORITY TO WAIVE ANNUAL LIMITATION 
ON TOTAL COMPENSATION PAID TO FEDERAL CIVILIAN 
EMPLOYEES WORKING OVERSEAS UNDER AREAS OF 
UNITED STATES CENTRAL COMMAND. 
Section 1105 of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3450), as amended 
by section 1105 of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109–364; 120 Stat. 2409), 
is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘and 2007’’ and inserting ‘‘2007, and 
2008’’; and 
(B) by striking ‘‘Code).’’ and inserting ‘‘Code) or, during 
2008, a military operation (including a contingency oper-
ation, as so defined) or an operation in response to an 
emergency declared by the President.’’; and 
(2) in subsection (b), by striking ‘‘2007.’’ and inserting ‘‘2007 
or 2008.’’. 
SEC. 1102. CONTINUATION OF LIFE INSURANCE COVERAGE FOR FED-
ERAL EMPLOYEES CALLED TO ACTIVE DUTY. 
Section 8706 of title 5, United States Code, is amended— 
(1) by redesignating subsections (d) through (g) as sub-
sections (e) through (h), respectively; and 
(2) by inserting after subsection (c) the following: 
‘‘(d)(1) An employee who enters on approved leave without 
pay in the circumstances described in paragraph (2) may elect
H. R. 1585—341 
to have such employee’s life insurance continue (beyond the end 
of the 12 months of coverage provided for under subsection (a)) 
for an additional 12 months and arrange to pay currently into 
the Employees’ Life Insurance Fund, through such employee’s 
employing agency, both employee and agency contributions, from 
the beginning of that additional 12 months of coverage. The 
employing agency shall forward the premium payments to the Fund. 
If the employee does not so elect, such employee’s insurance will 
continue during nonpay status and stop as provided by subsection 
(a). An individual making an election under this subsection may 
cancel that election at any time, in which case such employee’s 
insurance will stop as provided by subsection (a) or upon receipt 
of notice of cancellation, whichever is later. 
‘‘(2) This subsection applies in the case of any employee who— 
‘‘(A) is a member of a reserve component of the armed 
forces called or ordered to active duty under a call or order 
that does not specify a period of 30 days or less; and 
‘‘(B) enters on approved leave without pay to perform active 
duty pursuant to such call or order.’’. 
SEC. 1103. TRANSPORTATION OF DEPENDENTS, HOUSEHOLD EFFECTS, 
AND PERSONAL PROPERTY TO FORMER HOME FOL-
LOWING DEATH OF FEDERAL EMPLOYEE WHERE DEATH 
RESULTED FROM DISEASE OR INJURY INCURRED IN THE 
CENTRAL COMMAND AREA OF RESPONSIBILITY. 
(a) IN GENERAL.—Paragraph (2) of section 5742(b) of title 5, 
United States Code, is amended to read as follows: 
‘‘(2) the expense of transporting his dependents, including 
expenses of packing, crating, draying, and transporting house-
hold effects and other personal property to his former home 
or such other place as is determined by the head of the agency 
concerned, if— 
‘‘(A) the employee died while performing official duties 
outside the continental United States or in transit thereto 
or therefrom; or 
‘‘(B) in the case of an employee who was a party 
to a mandatory mobility agreement that was in effect when 
the employee died— 
‘‘(i) the employee died in the circumstances 
described in subparagraph (A); or 
‘‘(ii)(I) the employee died as a result of disease 
or injury incurred while performing official duties— 
‘‘(aa) in an overseas location that, at the time 
such employee was performing such official duties, 
was within the area of responsibility of the Com-
mander of the United States Central Command; 
and 
‘‘(bb) in direct support of or directly related 
to a military operation, including a contingency 
operation (as defined in section 101(13) of title 
10) or an operation in response to an emergency 
declared by the President; and 
‘‘(II) the employee’s dependents were residing 
either outside the continental United States or within 
the continental United States when the employee died; 
and’’.
H. R. 1585—342 
(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. 1104. SPECIAL BENEFITS FOR CIVILIAN EMPLOYEES ASSIGNED 
ON DEPLOYMENT TEMPORARY CHANGE OF STATION. 
(a) AUTHORITY.—Subchapter II of chapter 57 of title 5, United 
States Code, is amended by inserting after section 5737 the fol-
lowing: 
‘‘§ 5737a. Employees temporarily deployed in contingency 
operations 
‘‘(a) DEFINITIONS.—For purposes of this section— 
‘‘(1) the term ‘covered employee’ means an individual who— 
‘‘(A) is an employee of an Executive agency or a military 
department, excluding a Government controlled corpora-
tion; and 
‘‘(B) is assigned on a temporary change of station in 
support of a contingency operation; 
‘‘(2) the term ‘temporary change of station’, as used with 
respect to an employee, means an assignment— 
‘‘(A) from the employee’s official duty station to a tem-
porary duty station; and 
‘‘(B) for which such employee is eligible for expenses 
under section 5737; and 
‘‘(3) the term ‘contingency operation’ has the meaning given 
such term by section 1482a(c) of title 10. 
‘‘(b) QUARTERS
AND RATIONS.—The head of an agency may 
provide quarters and rations, without charge, to any covered 
employee of such agency during the period of such employee’s 
temporary assignment (as described in subsection (a)(1)(B)). 
‘‘(c) STORAGE
OF MOTOR VEHICLE.—The head of an agency 
may provide for the storage, without charge, or for the reimburse-
ment of the cost of storage, of a motor vehicle that is owned 
or leased by a covered employee of such agency (or by a dependent 
of such an employee) and that is for the personal use of the 
covered employee. This subsection shall apply— 
‘‘(1) with respect to storage during the period of the 
employee’s temporary assignment (as described in subsection 
(a)(1)(B)); and 
‘‘(2) in the case of a covered employee, with respect 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 employee 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. 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:
H. R. 1585—343 
‘‘§ 8102a. Death gratuity for injuries incurred in connection 
with employee’s service with an Armed Force 
‘‘(a) DEATH GRATUITY AUTHORIZED.—The United States shall 
pay a death gratuity of up to $100,000 to or for the survivor 
prescribed by subsection (d) immediately upon receiving official 
notification of the death of an employee who dies of injuries incurred 
in connection with the employee’s service with an Armed Force 
in a contingency operation. 
‘‘(b) RETROACTIVE PAYMENT IN CERTAIN CASES.—At the discre-
tion of the Secretary concerned, subsection (a) may apply in the 
case of an employee who died, on or after October 7, 2001, and 
before the date of enactment of this section, as a result of injuries 
incurred in connection with the employee’s service with an Armed 
Force in the theater of operations of Operation Enduring Freedom 
or Operation Iraqi Freedom. 
‘‘(c) RELATIONSHIP TO OTHER BENEFITS.—The death gratuity 
payable under this section shall be reduced by the amount of 
any death gratuity provided under section 413 of the Foreign Service 
Act of 1980, section 1603 of the Emergency Supplemental Appro-
priations Act for Defense, the Global War on Terror, and Hurricane 
Recovery, 2006, or any other law of the United States based on 
the same death. 
‘‘(d) ELIGIBLE SURVIVORS.— 
‘‘(1) Subject to paragraph (5), a death gratuity payable 
upon the death of a person covered by subsection (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 prescribed by para-
graph (2), in equal shares. 
‘‘(C) If designated by the employee, any one or more 
of the following persons: 
‘‘(i) The employee’s parents or persons 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 include brothers 
and sisters of the half blood and those through adoption. 
‘‘(2) Paragraph (1)(B) applies, without regard to age or 
marital status, to— 
‘‘(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 decedent; and 
‘‘(E) illegitimate children of a male decedent— 
‘‘(i) who have been acknowledged in writing signed 
by the decedent; 
‘‘(ii) who have been judicially determined, 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
H. R. 1585—344 
‘‘(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 employee. 
However, only one father and one mother, or their counterparts 
in loco parentis, may be recognized 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 para-
graph, 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 
increments up to the maximum of 50 percent, that the des-
ignated 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 accordance 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 before the person 
receives the death gratuity, it shall be paid to the living sur-
vivor next in the order prescribed by paragraph (1). 
‘‘(e) DEFINITIONS.—(1) The term ‘contingency operation’ has the 
meaning given to that term in section 1482a(c) of title 10, United 
States Code. 
‘‘(2) The term ‘employee’ has the meaning provided in section 
8101 of this title, but also includes a nonappropriated fund 
instrumentality employee, as defined in section 1587(a)(1) of title 
10.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 81 of such title is amended by inserting after 
the item relating to section 8102 the following: 
‘‘8102a. Death gratuity for injuries incurred in connection with employee’s service 
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 to read as follows: 
‘‘§ 9902. Establishment of human resources management 
system 
‘‘(a) IN GENERAL.—The Secretary may, in regulations prescribed 
jointly with the Director, establish, and from time to time adjust, 
a human resources management system for some or all of the 
organizational or functional units of the Department of Defense. 
The human resources management system established under 
authority of this section shall be referred to as the ‘National Security 
Personnel System’. 
‘‘(b) SYSTEM REQUIREMENTS.—Any system established under 
subsection (a) shall— 
‘‘(1) be flexible; 
‘‘(2) be contemporary;
H. R. 1585—345 
‘‘(3) not waive, modify, or otherwise affect— 
‘‘(A) the public employment principles of merit and 
fitness set forth in section 2301, including the principles 
of hiring based on merit, fair treatment without regard 
to political affiliation or other nonmerit considerations, 
equal pay for equal work, and protection of employees 
against reprisal for whistleblowing; 
‘‘(B) any provision of section 2302, relating to prohib-
ited personnel practices; 
‘‘(C)(i) any provision of law referred to in section 
2302(b)(1), (8), and (9); or 
‘‘(ii) any provision of law implementing any provision 
of law referred to in section 2302(b)(1), (8), and (9) by— 
‘‘(I) providing for equal employment opportunity 
through affirmative action; or 
‘‘(II) providing any right or remedy available to 
any employee or applicant for employment in the public 
service; 
‘‘(D) any other provision of this part (as described 
in subsection (d)); or 
‘‘(E) any rule or regulation prescribed under any provi-
sion of law referred to in this paragraph; 
‘‘(4) not apply to any prevailing rate employees, as defined 
in section 5342(a)(2); 
‘‘(5) ensure that employees may organize, bargain collec-
tively, and participate through labor organizations of their own 
choosing in decisions which affect them, subject to any exclusion 
from coverage or limitation on negotiability established pursu-
ant to law; 
‘‘(6) not be limited by any specific law or authority under 
this title, or by any rule or regulation prescribed under this 
title, that is waived in regulations prescribed under this 
chapter, subject to paragraph (3); and 
‘‘(7) include a performance management system that incor-
porates the following elements: 
‘‘(A) Adherence to merit principles set forth in section 
2301. 
‘‘(B) A fair, credible, and transparent employee 
performance appraisal system. 
‘‘(C) A link between the performance management 
system and the agency’s strategic plan. 
‘‘(D) A means for ensuring employee involvement in 
the design and implementation of the system. 
‘‘(E) Adequate training and retraining for supervisors, 
managers, and employees in the implementation and oper-
ation of the performance management system. 
‘‘(F) A process for ensuring ongoing performance feed-
back and dialogue between supervisors, managers, and 
employees throughout the appraisal period, and setting 
timetables for review. 
‘‘(G) Effective safeguards to ensure that the manage-
ment of the system is fair and equitable and based on 
employee performance. 
‘‘(H) A means for ensuring that adequate agency 
resources are allocated for the design, implementation, and 
administration of the performance management system.
H. R. 1585—346 
‘‘(I) A pay-for-performance evaluation system to better 
link individual pay to performance, and provide an equi-
table method for appraising and compensating employees. 
‘‘(c) PERSONNEL MANAGEMENT AT DEFENSE LABORATORIES.— 
‘‘(1) The National Security Personnel System shall not 
apply with respect to a laboratory under paragraph (2) before 
October 1, 2011, and shall apply on or after October 1, 2011, 
only to the extent that the Secretary determines that the flexi-
bilities provided by the National Security Personnel System 
are greater than the flexibilities provided to those laboratories 
pursuant to section 342 of the National Defense Authorization 
Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2721) 
and section 1101 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 note), 
respectively. 
‘‘(2) The laboratories to which this subsection applies are— 
‘‘(A) the Aviation and Missile Research Development 
and Engineering Center; 
‘‘(B) the Army Research Laboratory; 
‘‘(C) the Medical Research and Materiel Command; 
‘‘(D) the Engineer Research and Development Com-
mand; 
‘‘(E) the Communications-Electronics Command; 
‘‘(F) the Soldier and Biological Chemical Command; 
‘‘(G) the Naval Sea Systems Command Centers; 
‘‘(H) the Naval Research Laboratory; 
‘‘(I) the Office of Naval Research; and 
‘‘(J) the Air Force Research Laboratory. 
‘‘(d) OTHER NONWAIVABLE PROVISIONS.—The other provisions 
of this part referred to in subsection (b)(3)(D) are— 
‘‘(1) subparts A, B, E, G, and H of this part; and 
‘‘(2) chapters 41, 45, 47, 55 (except subchapter V thereof, 
apart from section 5545b), 57, 59, 71, 72, 73, 75, 77, and 
79, and this chapter. 
‘‘(e) LIMITATIONS RELATING TO PAY.— 
‘‘(1) Nothing in this section shall constitute authority to 
modify the pay of any employee who serves in an Executive 
Schedule position under subchapter II of chapter 53. 
‘‘(2) Except as provided for in paragraph (1), the total 
amount in a calendar year of allowances, differentials, bonuses, 
awards, or other similar cash payments paid under this title 
to any employee who is paid under section 5376 or 5383 or 
under title 10 or under other comparable pay authority estab-
lished for payment of Department of Defense senior executive 
or equivalent employees may not exceed the total annual com-
pensation payable to the Vice President under section 104 
of title 3. 
‘‘(3) To the maximum extent practicable, the rates of com-
pensation for civilian employees at the Department of Defense 
shall be adjusted at the same rate, and in the same proportion, 
as are rates of compensation for members of the uniformed 
services. 
‘‘(4) To the maximum extent practicable, for fiscal years 
2004 through 2012, the overall amount allocated for compensa-
tion of the civilian employees of an organizational or functional 
unit of the Department of Defense that is included in the 
National Security Personnel System shall not be less than