I 
111TH CONGRESS 
1ST SESSION H. R. 2990 
To provide special pays and allowances to certain members of the Armed 
Forces, expand concurrent receipt of military retirement and VA dis-
ability benefits to disabled military retirees, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 23, 2009 
Mr. SKELTON (for himself, Mr. TOWNS, Mr. SPRATT, Mr. WAXMAN, Mr. RA-
HALL, Mr. MARKEY of Massachusetts, Mrs. DAVIS of California, and Mr. 
LYNCH) introduced the following bill; which was referred to the Com-
mittee on Armed Services, and in addition to the Committees on Over-
sight and Government Reform, Natural Resources, and Veterans’ Affairs, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
A BILL 
To provide special pays and allowances to certain members 
of the Armed Forces, expand concurrent receipt of mili-
tary retirement and VA disability benefits to disabled 
military retirees, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Disabled Military Re-
tiree Relief Act of 2009’’. 
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SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—COMPENSATION AND BENEFITS FOR MEMBERS OF THE 
ARMED FORCES AND MILITARY RETIREES 
Subtitle A—Bonuses and Special and Incentive Pays 
Sec. 101. One-year extension of certain bonus and special pay authorities for 
reserve forces. 
Sec. 102. One-year extension of certain bonus and special pay authorities for 
health care professionals. 
Sec. 103. One-year extension of special pay and bonus authorities for nuclear 
officers. 
Sec. 104. One-year extension of authorities relating to title 37 consolidated spe-
cial pay, incentive pay, and bonus authorities. 
Sec. 105. One-year extension of authorities relating to payment of other title 
37 bonuses and special pay. 
Sec. 106. One-year extension of authorities relating to payment of referral bo-
nuses. 
Sec. 107. Technical corrections and conforming amendments to reconcile con-
flicting amendments regarding continued payment of bonuses 
and similar benefits for certain members. 
Subtitle B—Retired Pay Benefits 
Sec. 111. Recomputation of retired pay and adjustment of retired grade of Re-
serve retirees to reflect service after retirement. 
Sec. 112. Election to receive retired pay for non-regular service upon retirement 
for service in an active reserve status performed after attaining 
eligibility for regular retirement. 
Subtitle C—Concurrent Receipt of Military Retired Pay and Veterans’ 
Disability Compensation 
Sec. 121. One-year expansion of eligibility for concurrent receipt of military re-
tired pay and veterans’ disability compensation to include all 
chapter 61 disability retirees regardless of disability rating per-
centage or years of service. 
TITLE II—FEDERAL EMPLOYEE BENEFITS 
Subtitle A—General Provisions 
Sec. 201. Credit for unused sick leave. 
Sec. 202. Limited expansion of the class of individuals eligible to receive an ac-
tuarially reduced annuity under the civil service retirement sys-
tem. 
Sec. 203. Computation of certain annuities based on part-time service. 
Sec. 204. Authority to deposit refunds under FERS. 
Sec. 205. Retirement credit for service of certain employees transferred from 
District of Columbia service to Federal service. 
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Subtitle B—Non-Foreign Area Retirement Equity Assurance 
Sec. 211. Short title. 
Sec. 212. Extension of Locality Pay. 
Sec. 213. Adjustment of special rates. 
Sec. 214. Transition schedule for locality-based comparability payments. 
Sec. 215. Savings provision. 
Sec. 216. Application to other eligible employees. 
Sec. 217. Election of additional basic pay for annuity computation by employ-
ees. 
Sec. 218. Regulations. 
Sec. 219. Effective dates. 
TITLE III—DEEPWATER OIL AND GAS RESEARCH AND 
DEVELOPMENT FUNDING SOURCE REPEAL 
Sec. 301. Repeal. 
TITLE 
I—COMPENSATION 
AND 
BENEFITS FOR MEMBERS OF 
THE 
ARMED 
FORCES 
AND 
MILITARY RETIREES 
Subtitle A—Bonuses and Special 
and Incentive Pays 
SEC. 101. ONE-YEAR EXTENSION OF CERTAIN BONUS AND 
SPECIAL PAY AUTHORITIES FOR RESERVE 
FORCES. 
The following sections of title 37, United States 
Code, are amended by striking ‘‘December 31, 2009’’ and 
inserting ‘‘December 31, 2010’’: 
(1) Section 308b(g), relating to Selected Re-
serve reenlistment bonus. 
(2) Section 308c(i), relating to Selected Reserve 
affiliation or enlistment bonus. 
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(3) Section 308d(c), relating to special pay for 
enlisted members assigned to certain high-priority 
units. 
(4) Section 308g(f)(2), relating to Ready Re-
serve enlistment bonus for persons without prior 
service. 
(5) Section 308h(e), relating to Ready Reserve 
enlistment and reenlistment bonus for persons with 
prior service. 
(6) Section 308i(f), relating to Selected Reserve 
enlistment and reenlistment bonus for persons with 
prior service. 
(7) Section 910(g), relating to income replace-
ment payments for reserve component members ex-
periencing extended and frequent mobilization for 
active duty service. 
SEC. 102. ONE-YEAR EXTENSION OF CERTAIN BONUS AND 
SPECIAL PAY AUTHORITIES FOR HEALTH 
CARE PROFESSIONALS. 
(a) TITLE 10 AUTHORITIES.—The following sections 
of title 10, United States Code, are amended by striking 
‘‘December 31, 2009’’ and inserting ‘‘December 31, 
2010’’: 
(1) Section 2130a(a)(1), relating to nurse offi-
cer candidate accession program. 
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(2) Section 16302(d), relating to repayment of 
education loans for certain health professionals who 
serve in the Selected Reserve. 
(b) TITLE 37 AUTHORITIES.—The following sections 
of title 37, United States Code, are amended by striking 
‘‘December 31, 2009’’ and inserting ‘‘December 31, 
2010’’: 
(1) Section 302c–1(f), relating to accession and 
retention bonuses for psychologists. 
(2) Section 302d(a)(1), relating to accession 
bonus for registered nurses. 
(3) Section 302e(a)(1), relating to incentive 
special pay for nurse anesthetists. 
(4) Section 302g(e), relating to special pay for 
Selected Reserve health professionals in critically 
short wartime specialties. 
(5) Section 302h(a)(1), relating to accession 
bonus for dental officers. 
(6) Section 302j(a), relating to accession bonus 
for pharmacy officers. 
(7) Section 302k(f), relating to accession bonus 
for medical officers in critically short wartime spe-
cialties. 
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(8) Section 302l(g), relating to accession bonus 
for dental specialist officers in critically short war-
time specialties. 
SEC. 103. ONE-YEAR EXTENSION OF SPECIAL PAY AND 
BONUS AUTHORITIES FOR NUCLEAR OFFI-
CERS. 
The following sections of title 37, United States 
Code, are amended by striking ‘‘December 31, 2009’’ and 
inserting ‘‘December 31, 2010’’: 
(1) Section 312(f), relating to special pay for 
nuclear-qualified officers extending period of active 
service. 
(2) Section 312b(c), relating to nuclear career 
accession bonus. 
(3) Section 312c(d), relating to nuclear career 
annual incentive bonus. 
SEC. 104. ONE-YEAR EXTENSION OF AUTHORITIES RELAT-
ING TO TITLE 37 CONSOLIDATED SPECIAL 
PAY, INCENTIVE PAY, AND BONUS AUTHORI-
TIES. 
The following sections of title 37, United States 
Code, are amended by striking ‘‘December 31, 2009’’ and 
inserting ‘‘December 31, 2010’’: 
(1) Section 331(h), relating to general bonus 
authority for enlisted members. 
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(2) Section 332(g), relating to general bonus 
authority for officers. 
(3) Section 333(i), relating to special bonus and 
incentive pay authorities for nuclear officers. 
(4) Section 334(i), relating to special aviation 
incentive pay and bonus authorities for officers. 
(5) Section 335(k), relating to special bonus 
and incentive pay authorities for officers in health 
professions. 
(6) Section 351(i), relating to hazardous duty 
pay. 
(7) Section 352(g), relating to assignment pay 
or special duty pay. 
(8) Section 353(j), relating to skill incentive 
pay or proficiency bonus. 
(9) Section 355(i), relating to retention incen-
tives for members qualified in critical military skills 
or assigned to high priority units. 
SEC. 105. ONE-YEAR EXTENSION OF AUTHORITIES RELAT-
ING TO PAYMENT OF OTHER TITLE 37 BO-
NUSES AND SPECIAL PAY. 
The following sections of chapter 5 of title 37, United 
States Code, are amended by striking ‘‘December 31, 
2009’’ and inserting ‘‘December 31, 2010’’: 
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(1) Section 301b(a), relating to aviation officer 
retention bonus. 
(2) Section 307a(g), relating to assignment in-
centive pay. 
(3) Section 308(g), relating to reenlistment 
bonus for active members. 
(4) Section 309(e), relating to enlistment 
bonus. 
(5) Section 324(g), relating to accession bonus 
for new officers in critical skills. 
(6) Section 326(g), relating to incentive bonus 
for conversion to military occupational specialty to 
ease personnel shortage. 
(7) Section 327(h), relating to incentive bonus 
for transfer between Armed Forces. 
(8) Section 330(f), relating to accession bonus 
for officer candidates. 
SEC. 106. ONE-YEAR EXTENSION OF AUTHORITIES RELAT-
ING TO PAYMENT OF REFERRAL BONUSES. 
The following sections of title 10, United States 
Code, are amended by striking ‘‘December 31, 2009’’ and 
inserting ‘‘December 31, 2010’’: 
(1) Section 1030(i), relating to health profes-
sions referral bonus. 
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Law 110–317; 122 Stat. 3526) and erroneously des-
ignated as subparagraph (B) by section 651(a)(3) of 
the Duncan Hunter National Defense Authorization 
Act for Fiscal Year 2009 (Public Law 110–417; 122 
Stat. 4495), as paragraph (2). 
(b) INCLUSION OF HUBBARD ACT AMENDMENT IN 
CONSOLIDATED SPECIAL PAY
AND BONUS AUTHORI-
TIES.—Section 373(b) of such title is amended— 
(1) in paragraph (2), by striking the paragraph 
heading and inserting ‘‘SPECIAL
RULE
FOR
DE-
CEASED AND DISABLED MEMBERS.—’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(3) SPECIAL RULE FOR MEMBERS WHO RE-
CEIVE SOLE SURVIVORSHIP DISCHARGE.—(A) If a 
member of the uniformed services receives a sole 
survivorship discharge, the Secretary concerned— 
‘‘(i) shall not require repayment by the 
member of the unearned portion of any bonus, 
incentive pay, or similar benefit previously paid 
to the member; and 
‘‘(ii) may grant an exception to the re-
quirement to terminate the payment of any un-
paid amounts of a bonus, incentive pay, or simi-
lar benefit if the Secretary concerned deter-
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mines that termination of the payment of the 
unpaid amounts would be contrary to a per-
sonnel policy or management objective, would 
be against equity and good conscience, or would 
be contrary to the best interests of the United 
States. 
‘‘(B) In this paragraph, the term ‘sole survivor-
ship discharge’ means the separation of a member 
from the Armed Forces, at the request of the mem-
ber, pursuant to the Department of Defense policy 
permitting the early separation of a member who is 
the only surviving child in a family in which— 
‘‘(i) the father or mother or one or more 
siblings— 
‘‘(I) served in the Armed Forces; and 
‘‘(II) was killed, died as a result of 
wounds, accident, or disease, is in a cap-
tured or missing in action status, or is per-
manently 100 percent disabled or hospital-
ized on a continuing basis (and is not em-
ployed gainfully because of the disability or 
hospitalization); and 
‘‘(ii) the death, status, or disability did not 
result from the intentional misconduct or willful 
neglect of the parent or sibling and was not in-
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curred during a period of unauthorized ab-
sence.’’. 
Subtitle B—Retired Pay Benefits 
SEC. 111. RECOMPUTATION OF RETIRED PAY AND ADJUST-
MENT OF RETIRED GRADE OF RESERVE RE-
TIREES TO REFLECT SERVICE AFTER RE-
TIREMENT. 
(a) RECOMPUTATION
OF RETIRED PAY.—Section 
12739 of title 10, United States Code, is amended by add-
ing at the end the following new subsection: 
‘‘(e)(1) If a member of the Retired Reserve is recalled 
to an active status in the Selected Reserve of the Ready 
Reserve under section 10145(d) of this title and completes 
not less than two years of service in such active status, 
the member is entitled to the recomputation under this 
section of the retired pay of the member. 
‘‘(2) The Secretary concerned may reduce the two- 
year service requirement specified in paragraph (1) in the 
case of a member who— 
‘‘(A) is recalled to serve in a position of adju-
tant general required under section 314 of title 32 
or in a position of assistant adjutant general subor-
dinate to such a position of adjutant general; 
‘‘(B) completes at least six months of service in 
such position; and 
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‘‘(C) fails to complete the minimum two years 
of service solely because the appointment of the 
member to such position is terminated or vacated as 
described in section 324(b) of title 32.’’. 
(b) ADJUSTMENT
OF RETIRED GRADE.—Section 
12771 of such title is amended— 
(1) by striking ‘‘Unless’’ and inserting ‘‘(a) 
GRADE ON TRANSFER.—Unless’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) EFFECT OF SUBSEQUENT RECALL TO ACTIVE 
STATUS.—(1) If a member of the Retired Reserve who 
is a commissioned officer is recalled to an active status 
in the Selected Reserve of the Ready Reserve under sec-
tion 10145(d) of this title and completes not less than two 
years of service in such active status, the member is enti-
tled to an adjustment in the retired grade of the member 
in the manner provided in section 1370(d) of this title. 
‘‘(2) The Secretary concerned may reduce the two- 
year service requirement specified in paragraph (1) in the 
case of a member who— 
‘‘(A) is recalled to serve in a position of adju-
tant general required under section 314 of title 32 
or in a position of assistant adjutant general subor-
dinate to such a position of adjutant general; 
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‘‘(B) completes at least six months of service in 
such position; and 
‘‘(C) fails to complete the minimum two years 
of service solely because the appointment of the 
member to such position is terminated or vacated as 
described in section 324(b) of title 32.’’. 
(c) RETROACTIVE
APPLICABILITY.—The amend-
ments made by this section shall take effect as of January 
1, 2008. 
SEC. 112. ELECTION TO RECEIVE RETIRED PAY FOR NON- 
REGULAR SERVICE UPON RETIREMENT FOR 
SERVICE IN AN ACTIVE RESERVE STATUS 
PERFORMED AFTER ATTAINING ELIGIBILITY 
FOR REGULAR RETIREMENT. 
(a) ELECTION AUTHORITY; REQUIREMENTS.—Sub-
section (a) of section 12741 of title 10, United States 
Code, is amended to read as follows: 
‘‘(a) AUTHORITY TO ELECT TO RECEIVE RESERVE 
RETIRED PAY.—(1) Notwithstanding the requirement in 
paragraph (4) of section 12731(a) of this title that a per-
son may not receive retired pay under this chapter when 
the person is entitled, under any other provision of law, 
to retired pay or retainer pay, a person may elect to re-
ceive retired pay under this chapter, instead of receiving 
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retired or retainer pay under chapter 65, 367, 571, or 867 
of this title, if the person— 
‘‘(A) satisfies the requirements specified in 
paragraphs (1) and (2) of such section for entitle-
ment to retired pay under this chapter; 
‘‘(B) served in an active status in the Selected 
Reserve of the Ready Reserve after becoming eligible 
for retirement under chapter 65, 367, 571, or 867 
of this title (without regard to whether the person 
actually retired or received retired or retainer pay 
under one of those chapters); and 
‘‘(C) completed not less than two years of satis-
factory service (as determined by the Secretary con-
cerned) in such active status (excluding any period 
of active service). 
‘‘(2) The Secretary concerned may reduce the min-
imum two-year service requirement specified in paragraph 
(1)(C) in the case of a person who— 
‘‘(A) completed at least six months of service in 
a position of adjutant general required under section 
314 of title 32 or in a position of assistant adjutant 
general subordinate to such a position of adjutant 
general; and 
‘‘(B) failed to complete the minimum years of 
service solely because the appointment of the person 
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to such position was terminated or vacated as de-
scribed in section 324(b) of title 32.’’. 
(b) ACTIONS TO EFFECTUATE ELECTION.—Sub-
section (b) of such section is amended by striking para-
graph (1) and inserting the following new paragraph: 
‘‘(1) terminate the eligibility of the person to 
retire under chapter 65, 367, 571, or 867 of this 
title, if the person is not already retired under one 
of those chapters, and terminate entitlement of the 
person to retired or retainer pay under one of those 
chapters, if the person was already receiving retired 
or retainer pay under one of those chapters; and’’. 
(c) CONFORMING AMENDMENT TO REFLECT NEW 
VARIABLE AGE REQUIREMENT FOR RETIREMENT.—Sub-
section (d) of such section is amended— 
(1) in paragraph (1), by striking ‘‘attains 60 
years of age’’ and inserting ‘‘attains the eligibility 
age applicable to the person under section 12731(f) 
of this title’’; and 
(2) in paragraph (2)(A), by striking ‘‘attains 60 
years of age’’ and inserting ‘‘attains the eligibility 
age applicable to the person under such section’’. 
(d) CLERICAL AMENDMENTS.— 
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(1) SECTION HEADING.—The heading for sec-
tion 12741 of such title is amended to read as fol-
lows: 
‘‘§ 12741. Retirement for service in an active status 
performed in the Selected Reserve of the 
Ready Reserve after eligibility for reg-
ular retirement’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 1223 of such title is 
amended by striking the item relating to section 
12741 and inserting the following new item: 
‘‘12741. Retirement for service in an active status performed in the Selected Re-
serve of the Ready Reserve after eligibility for regular retire-
ment.’’. 
(e) RETROACTIVE
APPLICABILITY.—The amend-
ments made by this section shall take effect as of January 
1, 2008. 
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Subtitle C—Concurrent Receipt of 
Military Retired Pay and Vet-
erans’ Disability Compensation 
SEC. 121. ONE-YEAR EXPANSION OF ELIGIBILITY FOR CON-
CURRENT RECEIPT OF MILITARY RETIRED 
PAY AND VETERANS’ DISABILITY COMPENSA-
TION TO INCLUDE ALL CHAPTER 61 DIS-
ABILITY RETIREES REGARDLESS OF DIS-
ABILITY RATING PERCENTAGE OR YEARS OF 
SERVICE. 
(a) PHASED EXPANSION CONCURRENT RECEIPT.— 
Subsection (a) of section 1414 of title 10, United States 
Code, is amended to read as follows: 
‘‘(a) PAYMENT OF BOTH RETIRED PAY AND DIS-
ABILITY COMPENSATION.— 
‘‘(1) PAYMENT OF BOTH REQUIRED.— 
‘‘(A) IN GENERAL.—Subject to subsection 
(b), a member or former member of the uni-
formed services who is entitled for any month 
to retired pay and who is also entitled for that 
month to veterans’ disability compensation for a 
qualifying service-connected disability (in this 
section referred to as a ‘qualified retiree’) is en-
titled to be paid both for that month without 
regard to sections 5304 and 5305 of title 38. 
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‘‘(B) APPLICABILITY
OF
FULL
CONCUR-
RENT RECEIPT PHASE-IN REQUIREMENT.—Dur-
ing the period beginning on January 1, 2004, 
and ending on December 31, 2013, payment of 
retired pay to a qualified retiree is subject to 
subsection (c). 
‘‘(C) PHASE-IN EXCEPTION FOR 100 PER-
CENT DISABLED RETIREES.—The payment of 
retired pay is subject to subsection (c) only dur-
ing the period beginning on January 1, 2004, 
and ending on December 31, 2004, in the case 
of the following qualified retirees: 
‘‘(i) A qualified retiree receiving vet-
erans’ disability compensation for a dis-
ability rated as 100 percent. 
‘‘(ii) A qualified retiree receiving vet-
erans’ disability compensation at the rate 
payable for a 100 percent disability by rea-
son of a determination of individual 
unemployability. 
‘‘(D) TEMPORARY
PHASE-IN
EXCEPTION 
FOR CERTAIN CHAPTER 61 DISABILITY RETIR-
EES; TERMINATION.—Subject to subsection (b), 
during the period beginning on January 1, 
2010, and ending on September 30, 2010, sub-
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section (c) shall not apply to a qualified retiree 
described in subparagraph (B) or (C) of para-
graph (2). 
‘‘(2) QUALIFYING
SERVICE-CONNECTED
DIS-
ABILITY DEFINED.—In this section, the term ‘quali-
fying service-connected disability’ means the fol-
lowing: 
‘‘(A) In the case of a member or former 
member receiving retired pay under any provi-
sion of law other than chapter 61 of this title, 
or under chapter 61 with 20 years or more of 
service otherwise creditable under section 1405 
or computed under section 12732 of this title, 
a service-connected disability or combination of 
service-connected disabilities that is rated as 
not less than 50 percent disabling by the Sec-
retary of Veterans Affairs. 
‘‘(B) In the case of a member or former 
member receiving retired pay under chapter 61 
of this title with less than 20 years of service 
otherwise creditable under section 1405 or com-
puted under section 12732 of this title, a serv-
ice-connected disability or combination of serv-
ice-connected disabilities that is rated by the 
Secretary of Veterans Affairs at the disabling 
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level specified in one of the following clauses 
(and, subject to paragraph (3), is effective on 
or after the date specified in the applicable 
clause): 
‘‘(i) January 1, 2010, rated 100 per-
cent, or a rate payable at 100 percent by 
reason of individual unemployability or 
rated 90 percent. 
‘‘(ii) January 1, 2011, rated 80 per-
cent or 70 percent. 
‘‘(iii) January 1, 2012, rated 60 per-
cent or 50 percent. 
‘‘(C) In the case of a member or former 
member receiving retired pay under chapter 61 
regardless of years of service, a service-con-
nected disability or combination of service-con-
nected disabilities that is rated by the Secretary 
of Veterans Affairs at the disabling level speci-
fied in one of the following clauses (and, subject 
to paragraph (3), is effective on or after the 
date specified in the applicable clause): 
‘‘(i) January 1, 2013, rated 40 per-
cent or 30 percent. 
‘‘(ii) January 1, 2014, any rating. 
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‘‘(3) 
LIMITED
DURATION.—Notwithstanding 
the effective date specified in each clause of subpara-
graphs (B) and (C) of paragraph (2), the clause 
shall apply only if the termination date specified in 
subparagraph (D) of paragraph (1) occurs during or 
after the calendar year specified in the clause, except 
that, eligibility may not extend beyond the termi-
nation date.’’. 
(b) CONFORMING AMENDMENT TO SPECIAL RULES 
FOR CHAPTER 61 DISABILITY RETIREES.—Subsection (b) 
of such section is amended to read as follows: 
‘‘(b) SPECIAL RULES FOR CHAPTER 61 DISABILITY 
RETIREES WHEN ELIGIBILITY HAS BEEN ESTABLISHED 
FOR SUCH RETIREES.— 
‘‘(1) GENERAL REDUCTION RULE.—The retired 
pay of a member retired under chapter 61 of this 
title is subject to reduction under sections 5304 and 
5305 of title 38, but only to the extent that the 
amount of the members retired pay under chapter 
61 of this title exceeds the amount of retired pay to 
which the member would have been entitled under 
any other provision of law based upon the member’s 
service in the uniformed services if the member had 
not been retired under chapter 61 of this title. 
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‘‘(2) RETIREES WITH FEWER THAN 20 YEARS 
OF SERVICE.— 
‘‘(A) BEFORE TERMINATION DATE.—If a 
member with a qualifying service-connected dis-
ability (as defined in subsection (a)(2)) is re-
tired under chapter 61 of this title with fewer 
than 20 years of creditable service otherwise 
creditable under section 1405 or computed 
under section 12732 of this title, and the termi-
nation date specified in subsection (a)(1)(D) 
has not occurred, the retired pay of the member 
is subject to reduction under sections 5304 and 
5305 of title 38, but only to the extent that the 
amount of the member’s retired pay under 
chapter 61 of this title exceeds the amount 
equal to 21⁄2 percent of the member’s years of 
creditable service multiplied by the member’s 
retired pay base under section 1406(b)(1) or 
1407 of this title, whichever is applicable to the 
member. 
‘‘(B) AFTER
TERMINATION
DATE.—Sub-
section (a) does not apply to a member retired 
under chapter 61 of this title with less than 20 
years of service otherwise creditable under sec-
tion 1405 of this title, or with less than 20 
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years of service computed under section 12732 
of this title, at the time of the retirement of the 
member if the termination date in paragraph 
(1)(D) of such subsection has occurred.’’. 
(c) CONFORMING AMENDMENT TO FULL CONCUR-
RENT RECEIPT PHASE-IN.—Subsection (c) of such section 
is amended by striking ‘‘the second sentence of’’. 
(d) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of such 
section is amended to read as follows: 
‘‘§ 1414. Concurrent receipt of retired pay and vet-
erans’ disability compensation’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 71 of such title is 
amended by striking the item related to section 1414 
and inserting the following new item: 
‘‘1414. Concurrent receipt of retired pay and veterans’ disability compensa-
tion.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2010. 
TITLE II—FEDERAL EMPLOYEE 
BENEFITS 
Subtitle A—General Provisions 
SEC. 201. CREDIT FOR UNUSED SICK LEAVE. 
(a) IN GENERAL.—Section 8415 of title 5, United 
States Code, is amended— 
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(1) by redesignating the second subsection (k) 
and subsection (l) as subsections (l) and (m), respec-
tively; and 
(2) in subsection (l) (as so redesignated by 
paragraph (1))— 
(A) by striking ‘‘(l) In computing’’ and in-
serting ‘‘(l)(1) In computing’’; and 
(B) by adding at the end the following: 
‘‘(2) Except as provided in paragraph (1), in com-
puting an annuity under this subchapter, the total service 
of an employee who retires on an immediate annuity or 
who dies leaving a survivor or survivors entitled to annuity 
includes the days of unused sick leave to his credit under 
a formal leave system and for which days the employee 
has not received payment, except that these days will not 
be counted in determining average pay or annuity eligi-
bility under this subchapter. For purposes of this sub-
section, in the case of any such employee who is excepted 
from subchapter I of chapter 63 under section 6301(2)(x) 
through (xiii), the days of unused sick leave to his credit 
include any unused sick leave standing to his credit when 
he was excepted from such subchapter.’’. 
(b) EXCEPTION FROM DEPOSIT REQUIREMENT.— 
Section 8422(d)(2) of title 5, United States Code, is 
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amended by striking ‘‘section 8415(k)’’ and inserting 
‘‘paragraph (1) or (2) of section 8415(l)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to annuities computed 
based on separations occurring on or after the date of en-
actment of this Act. 
SEC. 202. LIMITED EXPANSION OF THE CLASS OF INDIVID-
UALS ELIGIBLE TO RECEIVE AN ACTUARI-
ALLY REDUCED ANNUITY UNDER THE CIVIL 
SERVICE RETIREMENT SYSTEM. 
(a) IN GENERAL.—Section 8334(d)(2)(A)(i) of title 
5, United States Code, is amended by striking ‘‘October 
1, 1990’’ each place it appears and inserting ‘‘March 1, 
1991’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall be effective with respect to any annuity, 
entitlement to which is based on a separation from service 
occurring on or after the date of enactment of this Act. 
SEC. 203. COMPUTATION OF CERTAIN ANNUITIES BASED 
ON PART-TIME SERVICE. 
(a) IN GENERAL.—Section 8339(p) of title 5, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(3) In the administration of paragraph (1)— 
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‘‘(A) subparagraph (A) of such paragraph shall 
apply with respect to service performed before, on, 
or after April 7, 1986; and 
‘‘(B) subparagraph (B) of such paragraph— 
‘‘(i) shall apply with respect to that portion 
of any annuity which is attributable to service 
performed on or after April 7, 1986; and 
‘‘(ii) shall not apply with respect to that 
portion of any annuity which is attributable to 
service performed before April 7, 1986.’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall be effective with respect to any annuity, 
entitlement to which is based on a separation from service 
occurring on or after the date of enactment of this Act. 
SEC. 204. AUTHORITY TO DEPOSIT REFUNDS UNDER FERS. 
(a) DEPOSIT AUTHORITY.—Section 8422 of title 5, 
United States Code, is amended by adding at the end the 
following: 
‘‘(i)(1) Each employee or Member who has received 
a refund of retirement deductions under this or any other 
retirement system established for employees of the Gov-
ernment covering service for which such employee or Mem-
ber may be allowed credit under this chapter may deposit 
the amount received, with interest. Credit may not be al-
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lowed for the service covered by the refund until the de-
posit is made. 
‘‘(2) Interest under this subsection shall be computed 
in accordance with paragraphs (2) and (3) of section 
8334(e) and regulations prescribed by the Office. The op-
tion under the third sentence of section 8334(e)(2) to 
make a deposit in one or more installments shall apply 
to deposits under this subsection. 
‘‘(3) For the purpose of survivor annuities, deposits 
authorized by this subsection may also be made by a sur-
vivor of an employee or Member.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) 
DEFINITIONAL
AMENDMENT.—Section 
8401(19)(C) of title 5, United States Code, is 
amended by striking ‘‘8411(f);’’ and inserting 
‘‘8411(f) or 8422(i);’’. 
(2) CREDITING OF DEPOSITS.—Section 8422(c) 
of title 5, United States Code, is amended by adding 
at the end the following: ‘‘Deposits made by an em-
ployee, Member, or survivor also shall be credited to 
the Fund.’’. 
(3) SECTION HEADING.—(A) The heading for 
section 8422 of title 5, United States Code, is 
amended to read as follows: 
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‘‘§ 8422. Deductions from pay; contributions for other 
service; deposits’’. 
(B) The analysis for chapter 84 of title 5, 
United States Code, is amended by striking the item 
relating to section 8422 and inserting the following: 
‘‘8422. Deductions from pay; contributions for other service; deposits.’’. 
(4) RESTORATION OF ANNUITY RIGHTS.—The 
last sentence of section 8424(a) of title 5, United 
States Code, is amended by striking ‘‘based.’’ and 
inserting ‘‘based, until the employee or Member is 
reemployed in the service subject to this chapter.’’. 
SEC. 205. RETIREMENT CREDIT FOR SERVICE OF CERTAIN 
EMPLOYEES TRANSFERRED FROM DISTRICT 
OF COLUMBIA SERVICE TO FEDERAL SERV-
ICE. 
(a) RETIREMENT CREDIT.— 
(1) IN GENERAL.—Any individual who is treat-
ed as an employee of the Federal Government for 
purposes of chapter 83 or chapter 84 of title 5, 
United States Code, on or after the date of enact-
ment of this Act who performed qualifying District 
of Columbia service shall be entitled to have such 
service included in calculating the individual’s cred-
itable service under sections 8332 or 8411 of title 5, 
United States Code, but only for purposes of the fol-
lowing provisions of such title: 
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(A) Sections 8333 and 8410 (relating to 
eligibility for annuity). 
(B) Sections 8336 (other than subsections 
(d), (h), and (p) thereof) and 8412 (relating to 
immediate retirement). 
(C) Sections 8338 and 8413 (relating to 
deferred retirement). 
(D) Sections 8336(d), 8336(h), 8336(p), 
and 8414 (relating to early retirement). 
(E) Section 8341 and subchapter IV of 
chapter 84 (relating to survivor annuities). 
(F) Section 8337 and subchapter V of 
chapter 84 (relating to disability benefits). 
(2) TREATMENT OF DETENTION OFFICER SERV-
ICE AS LAW ENFORCEMENT OFFICER SERVICE.—Any 
portion of an individual’s qualifying District of Co-
lumbia service which consisted of service as a deten-
tion officer under section 2604(2) of the District of 
Columbia Government Comprehensive Merit Per-
sonnel Act of 1978 (sec. 1–626.04(2), D.C. Official 
Code) shall be treated as service as a law enforce-
ment officer under sections 8331(20) or 8401(17) of 
title 5, United States Code, for purposes of applying 
paragraph (1) with respect to the individual. 
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(3) SERVICE
NOT
INCLUDED
IN
COMPUTING 
AMOUNT OF ANY ANNUITY.—Qualifying District of 
Columbia service shall not be taken into account for 
purposes of computing the amount of any benefit 
payable out of the Civil Service Retirement and Dis-
ability Fund. 
(b) QUALIFYING DISTRICT OF COLUMBIA SERVICE 
DEFINED.—In this section, ‘‘qualifying District of Colum-
bia service’’ means any of the following: 
(1) Service performed by an individual as a 
nonjudicial employee of the District of Columbia 
courts— 
(A) which was performed prior to the ef-
fective date of the amendments made by section 
11246(b) of the Balanced Budget Act of 1997; 
and 
(B) for which the individual did not ever 
receive credit under the provisions of sub-
chapter III of chapter 83 or chapter 84 of title 
5, United States Code (other than by virtue of 
section 8331(1)(iv) of such title). 
(2) Service performed by an individual as an 
employee of an entity of the District of Columbia 
government whose functions were transferred to the 
Pretrial Services, Parole, Adult Supervision, and Of-
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fender Supervision Trustee under section 11232 of 
the Balanced Budget Act of 1997— 
(A) which was performed prior to the ef-
fective date of the individual’s coverage as an 
employee of the Federal Government under sec-
tion 11232(f) of such Act; and 
(B) for which the individual did not ever 
receive credit under the provisions of sub-
chapter III of chapter 83 or chapter 84 of title 
5, United States Code (other than by virtue of 
section 8331(1)(iv) of such title). 
(3) Service performed by an individual as an 
employee of the District of Columbia Public De-
fender Service— 
(A) which was performed prior to the ef-
fective date of the amendments made by section 
7(e) of the District of Columbia Courts and 
Justice Technical Corrections Act of 1998; and 
(B) for which the individual did not ever 
receive credit under the provisions of sub-
chapter III of chapter 83 or chapter 84 of title 
5, United States Code (other than by virtue of 
section 8331(1)(iv) of such title). 
(4) In the case of an individual who was an em-
ployee of the District of Columbia Department of 
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Corrections who was separated from service as a re-
sult of the closing of the Lorton Correctional Com-
plex and who was appointed to a position with the 
Bureau of Prisons, the District of Columbia courts, 
the Pretrial Services, Parole, Adult Supervision, and 
Offender Supervision Trustee, the United States Pa-
role Commission, or the District of Columbia Public 
Defender Service, service performed by the indi-
vidual as an employee of the District of Columbia 
Department of Corrections— 
(A) which was performed prior to the ef-
fective date of the individual’s coverage as an 
employee of the Federal Government; and 
(B) for which the individual did not ever 
receive credit under the provisions of sub-
chapter III of chapter 83 or chapter 84 of title 
5, United States Code (other than by virtue of 
section 8331(1)(iv) of such title). 
(c) CERTIFICATION OF SERVICE.—The Office of Per-
sonnel Management shall accept the certification of the 
appropriate personnel official of the government of the 
District of Columbia or other independent employing enti-
ty concerning whether an individual performed qualifying 
District of Columbia service and the length of the period 
of such service the individual performed. 
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Subtitle B—Non-Foreign Area 
Retirement Equity Assurance 
SEC. 211. SHORT TITLE. 
This subtitle may be cited as the ‘‘Non-Foreign Area 
Retirement Equity Assurance Act of 2009’’ or the ‘‘Non- 
Foreign AREA Act of 2009’’. 
SEC. 212. EXTENSION OF LOCALITY PAY. 
(a) LOCALITY-BASED COMPARABILITY PAYMENTS.— 
Section 5304 of title 5, United States Code, is amended— 
(1) in subsection (f)(1), by striking subpara-
graph (A) and inserting the following: 
‘‘(A) each General Schedule position in the 
United 
States, 
as 
defined 
under 
section 
5921(4), and its territories and possessions, in-
cluding the Commonwealth of Puerto Rico and 
the Commonwealth of the Northern Mariana Is-
lands, shall be included within a pay locality;’’; 
(2) in subsection (g)— 
(A) in paragraph (2)— 
(i) in subparagraph (A), by striking 
‘‘and’’ after the semicolon; 
(ii) in subparagraph (B) by striking 
the period and inserting ‘‘; and’’; and 
(iii) by adding after subparagraph (B) 
the following: 
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‘‘(C) positions under subsection (h)(1)(C) 
not covered by appraisal systems certified under 
section 5382; and’’; and 
(B) by adding at the end the following: 
‘‘(3) The applicable maximum under this sub-
section shall be level II of the Executive Schedule for 
positions under subsection (h)(1)(C) covered by ap-
praisal systems certified under section 5307(d).’’; 
and 
(3) in subsection (h)(1)— 
(A) in subparagraph (B) by striking ‘‘and’’ 
after the semicolon; 
(B) by redesignating subparagraph (C) as 
subparagraph (D); 
(C) by inserting after subparagraph (B) 
the following: 
‘‘(C) a Senior Executive Service position 
under section 3132 or 3151 or a senior level po-
sition under section 5376 stationed within the 
United States, but outside the 48 contiguous 
States and the District of Columbia in which 
the incumbent was an individual who on the 
day before the date of enactment of the Non- 
Foreign Area Retirement Equity Assurance Act 
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of 2009 was eligible to receive a cost-of-living 
allowance under section 5941; and’’; 
(D) in clause (iv) in the matter following 
subparagraph (D), by inserting ‘‘, except for 
members covered by subparagraph (C)’’ before 
the semicolon; and 
(E) in clause (v) in the matter following 
subparagraph (D), by inserting ‘‘, except for 
members covered by subparagraph (C)’’ before 
the semicolon. 
(b) ALLOWANCES BASED
ON LIVING COSTS
AND 
CONDITIONS OF ENVIRONMENT.—Section 5941 of title 5, 
United States Code, is amended— 
(1) in subsection (a), by adding after the last 
sentence ‘‘Notwithstanding any preceding provision 
of this subsection, the cost-of-living allowance rate 
based on paragraph (1) shall be the cost-of-living al-
lowance rate in effect on the date of enactment of 
the Non-Foreign Area Retirement Equity Assurance 
Act of 2009, except as adjusted under subsection 
(c).’’; 
(2) by redesignating subsection (b) as sub-
section (d); and 
(3) by inserting after subsection (a) the fol-
lowing: 
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‘‘(b) This section shall apply only to areas that are 
designated as cost-of-living allowance areas as in effect on 
December 31, 2009. 
‘‘(c)(1) The cost-of-living allowance rate payable 
under this section shall be adjusted on the first day of 
the first applicable pay period beginning on or after— 
‘‘(A) January 1, 2010; and 
‘‘(B) January 1 of each calendar year in which 
a locality-based comparability adjustment takes ef-
fect under section 214 (2) and (3) of the Non-For-
eign Area Retirement Equity Assurance Act of 
2009. 
‘‘(2)(A) In this paragraph, the term ‘applicable local-
ity-based comparability pay percentage’ means, with re-
spect to calendar year 2010 and each calendar year there-
after, the applicable percentage under section 214 (1), (2), 
or (3) of Non-Foreign Area Retirement Equity Assurance 
Act of 2009. 
‘‘(B) Each adjusted cost-of-living allowance rate 
under paragraph (1) shall be computed by— 
‘‘(i) subtracting 65 percent of the applicable lo-
cality-based comparability pay percentage from the 
cost-of-living allowance percentage rate in effect on 
December 31, 2009; and 
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‘‘(ii) dividing the resulting percentage deter-
mined under clause (i) by the sum of— 
‘‘(I) one; and 
‘‘(II) the applicable locality-based com-
parability payment percentage expressed as a 
numeral. 
‘‘(3) No allowance rate computed under paragraph 
(2) may be less than zero. 
‘‘(4) Each allowance rate computed under paragraph 
(2) shall be paid as a percentage of basic pay (including 
any applicable locality-based comparability payment under 
section 5304 or similar provision of law and any applicable 
special rate of pay under section 5305 or similar provision 
of law).’’. 
SEC. 213. ADJUSTMENT OF SPECIAL RATES. 
(a) IN GENERAL.—Each special rate of pay estab-
lished under section 5305 of title 5, United States Code, 
and payable in an area designated as a cost-of-living allow-
ance area under section 5941(a) of that title, shall be ad-
justed, on the dates prescribed by section 214 of this sub-
title, in accordance with regulations prescribed by the Di-
rector of the Office of Personnel Management under sec-
tion 218 of this subtitle. 
(b) AGENCIES WITH STATUTORY AUTHORITY.— 
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(1) IN GENERAL.—Each special rate of pay es-
tablished under an authority described under para-
graph (2) and payable in a location designated as a 
cost-of-living 
allowance 
area 
under 
section 
5941(a)(1) of title 5, United States Code, shall be 
adjusted in accordance with regulations prescribed 
by the applicable head of the agency that are con-
sistent with the regulations issued by the Director of 
the Office of Personnel Management under sub-
section (a). 
(2) STATUTORY AUTHORITY.—The authority re-
ferred to under paragraph (1), is any statutory au-
thority that— 
(A) is similar to the authority exercised 
under section 5305 of title 5, United States 
Code; 
(B) is exercised by the head of an agency 
when the head of the agency determines it to be 
necessary in order to obtain or retain the serv-
ices of persons specified by statute; and 
(C) authorizes the head of the agency to 
increase the minimum, intermediate, or max-
imum rates of basic pay authorized under appli-
cable statutes and regulations. 
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