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respect to the employee for the period of
erroneous coverage involved, over
(ii) the amount of the OASDI em-
ployer tax that may be assessed under sec-
tion 6501 of the Internal Revenue Code of
1986 in connection with such employee,
determined in such manner as the Secretary of
the Treasury shall by regulation prescribe.
(B) RULE IF CSRDF CONTRIBUTIONS AC-
TUALLY MADE ARE LESS THAN TOTAL GOVERN-
MENT CONTRIBUTIONS TO OASDI AND CSRDF
THAT SHOULD HAVE BEEN MADE.—
(i) IN GENERAL.—If the total Govern-
ment contributions to the CSRDF that
were made with respect to the employee for
the period of erroneous coverage involved
are less than the amount described in
clause (ii), an amount equal to the short-
fall shall be made up (in such manner as
the Commissioner of Social Security shall
prescribe) by the agency in or under which
the employee is then employed.
(ii) DESCRIPTION OF AMOUNT.—The
amount described in this clause is the total
of—
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(I) the amount required to be
transferred under subparagraph (A),
plus
(II) the amount that should have
been contributed by the Government
under section 8423 of title 5, United
States Code, for such employee with
respect to such period.
(iii) SOURCE
OF
PAYMENTS.—Any
amount required to be paid by an agency
under clause (i) shall be payable out of any
appropriation, fund, or account available to
such agency for making Government con-
tributions to the CSRDF or the OASDI
trust funds (as appropriate).
(c) MAKEUP CONTRIBUTIONS TO THE THRIFT SAV-
INGS FUND.—
(1) IN GENERAL.—An employee to whom this
section applies is entitled to have contributed to the
Thrift Savings Fund on such employee’s behalf, in
addition to any regular employee or Government
contributions that would be permitted or required
for the year in which the contributions under this
subsection are made, an amount equal to the sum
of—
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(A) the amount determined under para-
graph (2) with respect to such employee for the
period of erroneous coverage involved;
(B) an amount equal to the total contribu-
tions that should have been made for such em-
ployee under section 8432(c)(1) of title 5,
United States Code, for the period of erroneous
coverage involved;
(C) an amount equal to the total contribu-
tions that should have been made for such em-
ployee under section 8432(c)(2) of title 5,
United States Code, for the period of erroneous
coverage involved (taking into account both the
amount referred to in subparagraph (A) and
any contributions to the Thrift Savings Fund
actually made by such employee with respect to
the period involved); and
(D) an amount equal to lost earnings on
the amounts referred to in subparagraphs (A)
through (C), determined in accordance with
paragraph (3).
(2) AMOUNT BASED ON AVERAGE PERCENTAGE
OF PAY CONTRIBUTED BY EMPLOYEES DURING PE-
RIOD OF ERRONEOUS COVERAGE.—
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(A) IN
GENERAL.—The amount deter-
mined under this paragraph with respect to an
employee for a period of erroneous coverage
shall be equal to the amount of the contribu-
tions such employee would have made if, during
each calendar year in such period, the employee
had contributed the percentage of such employ-
ee’s basic pay for such year specified in sub-
paragraph (B) (determined disregarding any
contributions actually made by such employee
with respect to the year involved).
(B) PERCENTAGE TO BE APPLIED.—
(i) IN GENERAL.—The percentage to
be applied under this subparagraph in the
case of any employee with respect to a par-
ticular year is—
(I) the average percentage of
basic pay that was contributed for
such year under section 8432(a) of
title 5, United States Code, by full-
time FERS covered employees who
contributed to the Thrift Savings
Fund in such year and for whom a
salary rate is recorded (as of June 30
of such year) in the central personnel
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data file maintained by the Office of
Personnel Management; or
(II) if such average percentage
for the year in question is unavailable,
the average percentage for the most
recent year prior to the year in ques-
tion that is available.
(ii) PERCENTAGE
CONTRIBUTED.—
For purposes of clause (i)(I), the percent-
age of basic pay for each employee in-
cluded in the average shall be determined
by dividing the total employee contribu-
tions received into the Thrift Savings Plan
account of that employee during such year
by the annual salary rate for that employee
as recorded in the central personnel data
file (referred to in clause (i)(I)) as of June
30 of such year.
(C) LIMITATIONS.—In no event may the
amount determined under this paragraph for an
individual with respect to a year exceed the
amount that, if added to the amount of the con-
tributions that were actually made by such indi-
vidual to the Thrift Savings Fund with respect
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to such year (if any), would cause the total to
exceed—
(i) any limitation under section 415 or
any other provision of the Internal Rev-
enue Code of 1986 that would have applied
to such employee with respect to such year;
or
(ii) any limitation under section
8432(a) or any other provision of title 5,
United States Code, that would have ap-
plied to such employee with respect to such
year.
(3) LOST EARNINGS.—
(A) IN GENERAL.—Lost earnings on any
amounts referred to in subparagraph (A), (B),
or (C) of paragraph (1) shall, to the extent
those amounts are attributable to contributions
that should have been made with respect to a
particular year, be determined in the same way
as if those amounts had in fact been timely con-
tributed and allocated among the TSP invest-
ment funds in accordance with—
(i) the investment fund election that
was accepted by the employing agency be-
fore the date the contribution should have
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been made and that was still in effect as
of that date; or
(ii) if no such election was then in ef-
fect for the employee, the investment fund
election attributed to such employee with
respect to such year.
(B) INVESTMENT FUND ELECTION ATTRIB-
UTED.—For purposes of subparagraph (A)(ii),
the investment fund election attributed to an
employee with respect to a particular year is—
(i) the average percentage allocation
of TSP contributions among the TSP in-
vestment funds from all sources, with re-
spect to that year, except that the invest-
ment fund election attributed to contribu-
tions in years prior to 1991 shall be the G
Fund; or
(ii) if such average percentage alloca-
tion for the year in question is unavailable,
the average percentage allocation for the
most recent year prior to the year in ques-
tion that is available.
(C) DEFINITION
OF
INVESTMENT
FUND
ELECTION, 
ETC.—For 
purposes 
of 
this
paragraph—
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(i) the term ‘‘investment fund elec-
tion’’ means a choice by a participant con-
cerning how contributions to the Thrift
Savings Plan shall be allocated among the
TSP investment funds;
(ii) the term ‘‘participant’’ means any
person with an account in the Thrift Sav-
ings Plan, or who would have an account
in the Thrift Savings Plan but for an em-
ploying agency error (including an error as
described in section 163(b)(2));
(iii) 
the 
term 
‘‘TSP 
investment
funds’’ means the C Fund, the F Fund,
the G Fund, and any other investment
fund in the Thrift Savings Plan created
after December 27, 1996; and
(iv) the terms ‘‘C Fund’’, ‘‘F Fund’’,
and ‘‘G Fund’’ refer to the funds described
in paragraphs (1), (3), and (4), respec-
tively, of section 8438(a) of title 5, United
States Code.
(4) MAKEUP CONTRIBUTION TO BE MADE IN A
LUMP SUM.—
(A) IN GENERAL.—Any amount to which
an employee is entitled under this subsection
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shall be paid promptly by the agency in or
under which the electing employee is (as of the
date of the election) employed, in a lump sum,
upon notification to such agency under sub-
paragraph (B)(ii) as to the amount due.
(B) BOARD FUNCTIONS.—The regulations
under paragraph (6) shall include provisions
under which—
(i) each employing agency shall be re-
quired to determine and notify the Federal
Retirement Thrift Investment Board, in a
timely manner, as to any amounts under
paragraph (1)(A)–(C) owed by such agen-
cy; and
(ii) the Board shall, based on the in-
formation it receives from an agency under
clause (i), determine lost earnings on those
amounts and promptly notify such agency
as to the total amounts due from it under
this subsection.
(5) JUSTICES
AND
JUDGES; 
MAGISTRATES;
ETC.—The preceding provisions of this subsection
shall not apply in the case of any employee who,
pursuant to the election referred to in subsection
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(a), becomes subject to section 8440a, 8440b,
8440c, or 8440d of title 5, United States Code.
(6) REGULATIONS.—The Executive Director of
the Federal Retirement Thrift Investment Board
shall prescribe any regulations necessary to carry
out this subsection.
SEC. 103. EFFECT OF AN ELECTION TO BE TRANSFERRED
FROM CSRS-OFFSET TO FERS TO CORRECT A
RETIREMENT COVERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 101(a)(2) who elects the option under section
101(b)(1).
(b) EFFECT OF ELECTION.—In the case of an em-
ployee described in subsection (a), the following provisions
shall apply:
(1) Section 102(b) (relating to disposition of
contributions to the CSRDF), but disregarding pro-
visions relating to transfers to OASDI trust funds.
(2) Section 102(c) (relating to makeup con-
tributions to the Thrift Savings Fund).
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SEC. 104. EFFECT OF AN ELECTION TO BE TRANSFERRED
FROM CSRS TO CSRS-OFFSET TO CORRECT A
RETIREMENT COVERAGE ERROR.
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in sec-
tion 101(a)(1) who elects the option under section
101(b)(2).
(b) SAME AS IN THE CASE OF AN ELECTION TO RAT-
IFY ERRONEOUS CSRS-OFFSET COVERAGE.—
(1) IN GENERAL.—The effect of an election de-
scribed in subsection (a) shall be as described in sec-
tion 101(b)(2), except that the provisions of section
102(b) shall also apply.
(2) APPROPRIATE PERCENTAGES TO BE USED
IN
DETERMINING
EMPLOYEE
AND
GOVERNMENT
CONTRIBUTIONS TO CSRDF.—For purposes of para-
graph (1), section 102(b) shall be applied by sub-
stituting 
‘‘the 
relevant 
provisions 
of 
section
8334(k)’’ for ‘‘section 8422’’ and ‘‘section 8423’’.
SEC. 105. EFFECT OF AN ELECTION TO BE RESTORED (OR
TRANSFERRED) TO CSRS-OFFSET AFTER HAV-
ING BEEN CORRECTED TO FERS FROM CSRS-
OFFSET (OR CSRS).
(a) APPLICABILITY.—This section shall apply in the
case of any employee affected by an error described in
paragraph (1) or (2) of section 101(a) who (after having
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been corrected to FERS coverage) elects the option under
section 101(c)(1).
(b) DISPOSITION
OF
CONTRIBUTIONS
TO
THE
CSRDF.—
(1) IN
GENERAL.—The provisions of section
102(b) shall apply in the case of an employee de-
scribed in subsection (a), subject to paragraph (2).
(2) NO
TRANSFERS
FOR
AMOUNTS
ALREADY
PAID INTO OASDI, ETC.—For purposes of paragraph
(1), section 102(b) shall be applied in conformance
with the following:
(A) NO DOUBLE PAYMENTS INTO OASDI.—
To the extent that the appropriate OASDI em-
ployee or employer tax has already been paid
for the total period involved (or any portion
thereof), reduce the respective amounts re-
quired by paragraphs (1)(A) and (2)(A)(i) of
section 102(b) accordingly.
(B) APPROPRIATE
PERCENTAGES
TO
BE
USED IN DETERMINING EMPLOYEE AND GOV-
ERNMENT
CONTRIBUTIONS
TO
CSRDF.—Sub-
stitute ‘‘the relevant provisions of section
8334(k)’’ for ‘‘section 8422’’ and ‘‘section
8423’’.