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(i) in subsection (e)(1) by striking
‘‘Each’’ and inserting ‘‘Subject to para-
graph (5), each’’; and
(ii) by adding after paragraph (4) the
following new paragraph:
‘‘(5) Effective with respect to any period of mili-
tary service after December 31, 1998, the percentage
of basic pay under section 204 of title 37, United
States Code, payable under paragraph (1) shall be
equal to the same percentage as would be applicable
under section 8334(c) of title 5, United States Code,
for that same period for service as an employee.’’.
(e) FOREIGN SERVICE PENSION SYSTEM.—
(1) 
INDIVIDUAL
DEDUCTIONS
AND
WITHHOLDINGS FROM PAY.—
(A) IN
GENERAL.—Section 856(a) of the
Foreign Service Act of 1980 (22 U.S.C.
4071e(a)) is amended to read as follows:
‘‘(a)(1) The employing agency shall deduct and with-
hold from the basic pay of each participant the applicable
percentage of basic pay specified in paragraph (2) of this
subsection minus the percentage then in effect under section
3101(a) of the Internal Revenue Code of 1986 (26 U.S.C.
3101(a)) (relating to the rate of tax for old age, survivors,
and disability insurance).
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‘‘(2) The applicable percentage under this subsection
shall be as follows:
‘‘7.5 .........
Before January 1, 1999.
7.75 .......
January 1, 1999, to December 31, 1999.
7.9 .........
January 1, 2000, to December 31, 2000.
8 ............
January 1, 2001, to December 31, 2002.
7.5 .........
After December 31, 2002.’’.
(B) 
VOLUNTEER
SERVICE.—Subsection
854(c) of the Foreign Service Act of 1980 (22
U.S.C. 4071c(c)) is amended to read as follows:
‘‘(c)(1) Credit shall be given under this System to a
participant for a period of prior satisfactory service as—
‘‘(A) a volunteer or volunteer leader under the
Peace Corps Act (22 U.S.C. 2501 et seq.),
‘‘(B) a volunteer under part A of title VIII of the
Economic Opportunity Act of 1964, or
‘‘(C) a full-time volunteer for a period of service
of at least 1 year’s duration under part A, B, or C
of title I of the Domestic Volunteer Service Act of
1973 (42 U.S.C. 4951 et seq.),
if the participant makes a payment to the Fund equal to
3 percent of pay received for the volunteer service; except,
the amount to be paid for volunteer service beginning on
January 1, 1999, through December 31, 2002, shall be as
follows:
‘‘3.25 .......
January 1, 1999, to December 31, 1999.
3.4 .........
January 1, 2000, to December 31, 2000.
3.5 .........
January 1, 2001, to December 31, 2002.
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‘‘(2) The amount of such payments shall be determined
in accordance with regulations of the Secretary of State
consistent with regulations for making corresponding deter-
minations under chapter 83, title 5, United States Code,
together with interest determined under regulations issued
by the Secretary of State.’’.
(2) NO
REDUCTION
IN
AGENCY
CONTRIBU-
TIONS.—Agency contributions under section 857 of
the Foreign Service Act of 1980 (22 U.S.C. 4071f)
shall not be reduced as a result of the amendments
made under paragraph (1) of this subsection.
(f) EFFECTIVE DATE.—Except as otherwise provided,
the amendments made by this section shall take effect on
the first day of the first applicable pay period beginning
on or after January 1, 1999.
SEC. 6002. GOVERNMENT CONTRIBUTIONS UNDER THE FED-
ERAL EMPLOYEES HEALTH BENEFITS PRO-
GRAM.
(a) IN GENERAL.—Section 8906 of title 5, United
States Code, is amended by striking subsection (a) and all
that follows through the end of paragraph (1) of subsection
(b) and inserting the following:
‘‘(a)(1) Not later than October 1 of each year, the Of-
fice of Personnel Management shall determine the weighted
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average of the subscription charges that will be in effect dur-
ing the following contract year with respect to—
‘‘(A) enrollments under this chapter for self
alone; and
‘‘(B) enrollments under this chapter for self and
family.
‘‘(2) In determining each weighted average under
paragraph (1), the weight to be given to a particular sub-
scription charge shall, with respect to each plan (and op-
tion) to which it is to apply, be commensurate with the
number of enrollees enrolled in such plan (and option) as
of March 31 of the year in which the determination is being
made.
‘‘(3) For purposes of paragraph (2), the term ‘enrollee’
means any individual who, during the contract year for
which the weighted average is to be used under this section,
will be eligible for a Government contribution for health
benefits.
‘‘(b)(1) Except as provided in paragraphs (2) and (3),
the biweekly Government contribution for health benefits for
an employee or annuitant enrolled in a health benefits plan
under this chapter is adjusted to an amount equal to 72
percent of the weighted average under subsection (a)(1) (A)
or (B), as applicable. For an employee, the adjustment be-
gins on the first day of the employee’s first pay period of
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each year. For an annuitant, the adjustment begins on the
first day of the first period of each year for which an annu-
ity payment is made.’’.
(b) EFFECTIVE DATE.—This section shall take effect
on the first day of the contract year that begins in 1999.
Nothing in this subsection shall prevent the Office of Per-
sonnel Management from taking any action, before such
first day, which it considers necessary in order to ensure
the timely implementation of this section.
SEC. 6003. REPEAL OF AUTHORIZATION OF TRANSITIONAL
APPROPRIATIONS FOR THE UNITED STATES
POSTAL SERVICE.
(a) REPEAL.—
(1) IN GENERAL.—Section 2004 of title 39, Unit-
ed States Code, is repealed.
(2) 
TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—
(A) The table of sections for chapter 20 of
such title is amended by repealing the item relat-
ing to section 2004.
(B) Section 2003(e)(2) of such title is
amended by striking ‘‘sections 2401 and 2004’’
each place it appears and inserting ‘‘section
2401’’.
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(b) CLARIFICATION THAT LIABILITIES FORMERLY
PAID PURSUANT TO SECTION 2004 REMAIN LIABILITIES
PAYABLE BY THE POSTAL SERVICE.—Section 2003 of title
39, United States Code, is amended by adding at the end
the following:
‘‘(h) Liabilities of the former Post Office Department
to the Employees’ Compensation Fund (appropriations for
which were authorized by former section 2004, as in effect
before the effective date of this subsection) shall be liabilities
of the Postal Service payable out of the Fund.’’.
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall be effective as of October
1, 1997.
SEC. 6004. MEDICARE MEANS TESTING STANDARD APPLICA-
BLE 
TO 
SENATORS’ 
HEALTH 
COVERAGE
UNDER THE FEHBP.
(a) PURPOSE.—The purpose of this section is to apply
the medicare means testing requirements for part B pre-
miums to individuals with adjusted gross incomes in excess
of $100,000 as enacted under section 5542 of this Act, to
United States Senators with respect to their employee con-
tributions and Government contributions under the Federal
Employees Health Benefits Program.
(b) IN GENERAL.—Section 8906 of title 5, United
States Code, is amended by adding at the end the following: