H. R. 4986—343 
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. 
(a) EXTENSION.—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.’’. 
(b) RETROACTIVE EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect as of December 31, 2007. 
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 
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.’’.
H. R. 4986—344 
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’’. 
(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—
H. R. 4986—345 
‘‘(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: 
‘‘§ 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.—
H. R. 4986—346 
‘‘(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 
‘‘(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).
H. R. 4986—347 
‘‘(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; 
‘‘(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;
H. R. 4986—348 
‘‘(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. 
‘‘(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;
H. R. 4986—349 
‘‘(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 
the amount that would have been allocated for compensation 
of such employees for such fiscal year if they had not been 
converted to the National Security Personnel System, based 
on, at a minimum— 
‘‘(A) the number and mix of employees in such 
organizational or functional unit prior to the conversion 
of such employees to the National Security Personnel 
System; and 
‘‘(B) adjusted for normal step increases and rates of 
promotion that would have been expected, had such 
employees remained in their previous pay schedule. 
‘‘(5) To the maximum extent practicable, the regulations 
implementing the National Security Personnel System shall 
provide a formula for calculating the overall amount to be 
allocated for fiscal years after fiscal year 2012 for compensation 
of the civilian employees of an organization or functional unit 
of the Department of Defense that is included in the National 
Security Personnel System. The formula shall ensure that in 
the aggregate, employees are not disadvantaged in terms of 
the overall amount of pay available as a result of conversion 
to the National Security Personnel System, while providing 
flexibility to accommodate changes in the function of the 
organization, changes in the mix of employees performing those
H. R. 4986—350 
functions, and other changed circumstances that might impact 
pay levels. 
‘‘(6) Amounts allocated for compensation of civilian 
employees of the Department of Defense pursuant to para-
graphs (4) and (5) shall be available only for the purpose 
of providing such compensation. 
‘‘(7) At the time of any annual adjustment to pay schedules 
pursuant to section 5303, the rate of basic pay for each 
employee of an organizational or functional unit of the Depart-
ment of Defense that is included in the National Security 
Personnel System who receives a performance rating above 
unacceptable or who does not have a current rating of record 
for the most recently completed appraisal period shall be 
adjusted by no less than 60 percent of the amount of such 
adjustment. The balance of the amount that would have been 
available for an annual adjustment under section 5303 shall 
be allocated to pay pool funding, for the purpose of increasing 
rates of pay on the basis of employee performance. 
‘‘(8) Each employee of an organizational or functional unit 
of the Department of Defense that is included in the National 
Security Personnel System who receives a performance rating 
above unacceptable or who does not have a current rating 
of record for the most recently completed appraisal period shall 
receive— 
‘‘(A) locality-based comparability payments under sec-
tion 5304 and section 5304a in the same manner and 
to the same extent as employees under the General 
Schedule; or 
‘‘(B) the full measure of any other local market supple-
ment applicable to the employee if locality-based com-
parability payments referred to in subparagraph (A) are 
not generally applicable to the employee. 
Nothing in this paragraph shall be construed to make locality- 
based comparability payments or other local market supple-
ments payable to any category of employees or positions which 
were ineligible for such payments or supplements (as the case 
may be) as of the day before the date of the enactment of 
the National Defense Authorization Act for Fiscal Year 2004. 
‘‘(9) Any rate of pay established or adjusted in accordance 
with the requirements of this section shall be non-negotiable, 
but shall be subject to procedures and appropriate arrange-
ments of paragraphs (2) and (3) of section 7106(b), except 
that nothing in this paragraph shall be construed to eliminate 
the bargaining rights of any category of employees who were 
authorized to negotiate rates of pay as of the day before the 
date of the enactment of the National Defense Authorization 
Act for Fiscal Year 2004. 
‘‘(f) PROVISIONS REGARDING NATIONAL LEVEL BARGAINING.— 
‘‘(1) The Secretary may bargain with a labor organization 
which has been accorded exclusive recognition under chapter 
71 at an organizational level above the level of exclusive rec-
ognition. The decision to bargain above the level of exclusive 
recognition shall not be subject to review. The Secretary shall 
consult with the labor organization before determining the 
appropriate organizational level of bargaining. 
‘‘(2) Any such bargaining shall— 
‘‘(A) address issues that are—
H. R. 4986—351 
‘‘(i) subject to bargaining under chapter 71 and 
this chapter; 
‘‘(ii) applicable to multiple bargaining units; and 
‘‘(iii) raised by either party to the bargaining; 
‘‘(B) except as agreed by the parties or directed through 
an independent dispute resolution process agreed upon by 
the parties, be binding on all affected subordinate bar-
gaining units of the labor organization at the level of rec-
ognition and their exclusive representatives, and the 
Department of Defense and its subcomponents, without 
regard to levels of recognition; 
‘‘(C) to the extent agreed by the parties or directed 
through an independent dispute resolution process agreed 
upon by the parties, supersede conflicting provisions of 
all other collective bargaining agreements of the labor 
organization, including collective bargaining agreements 
negotiated with an exclusive representative at the level 
of recognition; and 
‘‘(D) except as agreed by the parties or directed through 
an independent dispute resolution process agreed upon by 
the parties, not be subject to further negotiations for any 
purpose, including bargaining at the level of recognition. 
‘‘(3) Any independent dispute resolution process agreed to 
by the parties for the purposes of paragraph (2) shall have 
the authority to address all issues on which the parties are 
unable to reach agreement. 
‘‘(4) The National Guard Bureau and the Army and Air 
Force National Guard may be included in coverage under this 
subsection. 
‘‘(5) Any bargaining completed pursuant to this subsection 
with a labor organization not otherwise having national con-
sultation rights with the Department of Defense or its sub-
components shall not create any obligation on the Department 
of Defense or its subcomponents to confer national consultation 
rights on such a labor organization. 
‘‘(g) PROVISIONS RELATED
TO SEPARATION
AND RETIREMENT 
INCENTIVES.— 
‘‘(1) The Secretary may establish a program within the 
Department of Defense under which employees may be eligible 
for early retirement, offered separation incentive pay to sepa-
rate from service voluntarily, or both. This authority may be 
used to reduce the number of personnel employed by the 
Department of Defense or to restructure the workforce to meet 
mission objectives without reducing the overall number of per-
sonnel. This authority is in addition to, and notwithstanding, 
any other authorities established by law or regulation for such 
programs. 
‘‘(2)(A) The Secretary may not authorize the payment of 
voluntary separation incentive pay under paragraph (1) to more 
than 25,000 employees in any fiscal year, except that employees 
who receive voluntary separation incentive pay as a result 
of a closure or realignment of a military installation under 
the Defense Base Closure and Realignment Act of 1990 (title 
XXIX of Public Law 101–510; 10 U.S.C. 2687 note) shall not 
be included in that number. 
‘‘(B) The Secretary shall prepare a report each fiscal year 
setting forth the number of employees who received such pay