To amend subchapter III of chapter 83 of title 5, United States Code, to make service performed as an employee of a nonappropriated fund instrumentality after 1965 and before 1987 creditable for retirement purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Nonappropriated Fund Equity Act''.

SEC. 2. CREDITABILITY OF SERVICE.

    (a) In General.--Section 8332 of title 5, United States Code, is 
amended by adding at the end the following:
    ``(p)(1) Subject to paragraph (2), upon application to the Office 
of Personnel Management, any individual who is an employee or Member on 
the date of the enactment of this subsection, and who has on such date 
5 or more years of creditable civilian service under this section 
(exclusive of service for which credit is allowed under this 
subsection) shall be allowed credit for service performed, after 
December 31, 1965, and before January 1, 1987, as an employee described 
in section 2105(c).
    ``(2)(A) An employee or Member may, with respect to any period of 
service for which such employee or Member is allowed credit under this 
subsection, deposit to the credit of the Fund an amount equal to the 
deductions from basic pay which would have been required under section 
8334(a) if such service were service as an employee.
    ``(B) An employee or Member who makes the deposit described in 
subparagraph (A) shall be allowed full retirement credit for the period 
of service involved.
    ``(C) If an employee or Member does not make the deposit or makes 
less than the full amount of the deposit described in subparagraph (A), 
retirement credit shall be allowed, but the resulting annuity shall be 
reduced in a manner similar to the method provided under section 
8339(j)(3) to make up the amount of any deposit described in the second 
sentence thereof. In no event shall the application of this 
subparagraph cause an annuity to be less than it would have been if 
this subsection had not been enacted.
    ``(D) For the purpose of survivor annuities, any deposit authorized 
by subparagraph (A) may also be made by a survivor of an employee or 
Member.
    ``(3) The Office shall accept the certification of the appropriate 
Secretary or his designee concerning the service of, and the amount of 
compensation received by, an employee or Member with respect to which 
credit is sought under this subsection. For purposes of the preceding 
sentence, the `appropriate Secretary' is--
            ``(A) the Secretary of Defense, to the extent that service 
        in or under the Department of Defense is involved; and
            ``(B) the Secretary of Transportation, to the extent that 
        service in or under the Coast Guard is involved.
    ``(4) An individual receiving credit for service for any period 
under this subsection shall not be granted credit for such service 
under any retirement system for employees of a nonappropriated fund 
instrumentality.
    ``(5) An application for retirement credit under this subsection 
may be submitted no later than 2 years after the effective date of the 
regulations prescribed by the Office to carry out this subsection.''.
    (b) Regulations.--The Office of Personnel Management shall 
prescribe regulations to carry out this Act and the amendment made by 
subsection (a). Such regulations--
            (1) shall take effect not later than 12 months after the 
        date of the enactment of this Act; and
            (2) shall include provisions to provide for the application 
        of such amendment in the case of--
                    (A) any employee or Member (as defined by the 
                following sentence) who, upon separation (at the time 
                described in paragraph (1) or (2) of subsection (c)), 
                would otherwise be entitled to an annuity under chapter 
                84 of title 5, United States Code, that is partially 
                computed under subchapter III of chapter 83 of such 
                title; and
                    (B) any survivor of an employee or Member described 
                in subparagraph (A).
For purposes of this subsection, the terms ``employee'', ``Member'', 
and ``survivor'' have the meanings set forth in section 8401 of such 
title 5.
    (c) Applicability.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by subsection (a) shall apply only in the case 
        of any annuity entitlement which is based on a separation from 
        service occurring on or after the effective date of the 
        regulations prescribed under subsection (b).
            (2) Limited exception for annuities based on separations 
        occurring after date of enactment and before effective date of 
        implementing regulations.--
                    (A) Recomputation requirement.--In the case of any 
                individual--
                            (i) who is entitled to an annuity 
                        entitlement to which is based on a separation 
                        from service occurring after the date of the 
                        enactment of this Act and before the effective 
                        date of the regulations prescribed under 
                        subsection (b), and
                            (ii) whose annuity would be increased by 
                        the application of section 8332(p) of title 5, 
                        United States Code (as amended by subsection 
                        (a)),
        the Office of Personnel Management shall, upon receipt of an 
        appropriate application submitted before the deadline specified 
        in section 8332(p)(5) of such title 5 (as so amended), 
        recompute the amount of such annuity so as to take such section 
        8332(p) into account. In carrying out the preceding sentence, 
        any deposit timely made shall be treated as if it had been made 
        before the commencement date of the annuity involved.
                    (B) No payment for any earlier periods.--Any change 
                in an annuity resulting from a recomputation under 
                subparagraph (A) shall be payable only with respect to 
                amounts accruing for months beginning after the date on 
                which the application (referred to in subparagraph (A)) 
                is received.

SEC. 3. NOTIFICATION AND ASSISTANCE.

    (a) Notification.--The Office of Personnel Management shall take 
such measures as it considers appropriate to inform individuals 
entitled to have any service credited under section 8332(p) of title 5, 
United States Code (as amended by section 2(a)), or to have any amounts 
recomputed under section 2(c)(2), of their entitlement to such credit 
or recomputation.
    (b) Assistance From the Office of Personnel Management.--The Office 
of Personnel Management shall, on request, assist any individual 
referred to in subsection (a) in obtaining from any department, agency, 
or other instrumentality of the United States such information in the 
possession of such instrumentality as may be necessary to verify the 
entitlement of such individual to have any service credited under 
section 8332(p) of title 5, United States Code (as amended by section 
2(a)) or to have any amounts recomputed under section 2(c)(2).
    (c) Assistance From Other Agencies.--Any department, agency, or 
other instrumentality of the United States which possesses any 
information with respect to any service of an individual described in 
section 8332(p) of title 5, United States Code (as amended by section 
2(a)) shall--
            (1) at the request of such individual (or an appropriate 
        survivor), furnish such information to that individual (or 
        survivor); and
            (2) at the request of the Office of Personnel Management, 
        furnish such information to the Office.

Summary: Nonappropriated Fund Equity Act - Allows a federal employee or Member of Congress who has five or more years of creditable civilian service for purposes of civil service retirement on the date of enactment of this Act to receive credit for service performed as an employee of a nonappropriated fund instrumentality after December 31, 1965, and before January 1, 1987.