Federal Reserve Board Retirement Portability Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Reserve Board Retirement 
Portability Act''.

SEC. 2. PORTABILITY OF SERVICE CREDIT.

    (a) Creditable Service.--
            (1) In general.--Section 8411(b) of title 5, United States 
        Code, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (3);
                    (B) in paragraph (4)--
                            (i) by striking ``of the preceding 
                        provisions'' and inserting ``other paragraph''; 
                        and
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(5) a period of service (other than any service under any 
        other paragraph of this subsection, any military service, and 
        any service performed in the employ of a Federal Reserve Bank) 
        that was creditable under the Bank Plan (as defined in 
        subsection (i)), if the employee waives credit for such service 
        under the Bank Plan and makes a payment to the Fund equal to 
        the amount that would have been deducted from pay under section 
        8422(a) had the employee been subject to this chapter during 
        such period of service (together with interest on such amount 
        computed under paragraphs (2) and (3) of section 8334(e)).
Paragraph (5) shall not apply in the case of any employee as to whom 
subsection (g) (or, to the extent subchapter III of chapter 83 is 
involved, section 8332(n)) otherwise applies.''.
            (2) Bank plan defined.--Section 8411 of title 5, United 
        States Code, is amended by adding at the end the following:
    ``(i) For purposes of subsection (b)(5), the term `Bank Plan' means 
the benefit structure in which employees of the Board of Governors of 
the Federal Reserve System appointed on or after January 1, 1984, 
participate, which benefit structure is a component of the Retirement 
Plan for Employees of the Federal Reserve System, established under 
section 10 of the Federal Reserve Act (and any redesignated or 
successor version of such benefit structure, if so identified in 
writing by the Board of Governors of the Federal Reserve System for 
purposes of this chapter).''.
    (b) Exclusion From Chapter 84.--
            (1) In general.--Paragraph (2) of section 8402(b) of title 
        5, United States Code, is amended by striking the matter before 
        subparagraph (B) and inserting the following:
            ``(2)(A) any employee or Member who has separated from the 
        service after--
                            ``(i) having been subject to--
                                    ``(I) subchapter III of chapter 83 
                                of this title;
                                    ``(II) subchapter I of chapter 8 of 
                                title I of the Foreign Service Act of 
                                1980; or
                                    ``(III) the benefit structure for 
                                employees of the Board of Governors of 
                                the Federal Reserve System appointed 
                                before January 1, 1984, that is a 
                                component of the Retirement Plan for 
                                Employees of the Federal Reserve 
                                System, established under section 10 of 
                                the Federal Reserve Act; and
                            ``(ii) having completed--
                                    ``(I) at least 5 years of civilian 
                                service creditable under subchapter III 
                                of chapter 83 of this title;
                                    ``(II) at least 5 years of civilian 
                                service creditable under subchapter I 
                                of chapter 8 of title I of the Foreign 
                                Service Act of 1980; or
                                    ``(III) at least 5 years of 
                                civilian service (other than any 
                                service performed in the employ of a 
                                Federal Reserve Bank) creditable under 
                                the benefit structure for employees of 
                                the Board of Governors of the Federal 
                                Reserve System appointed before January 
                                1, 1984, that is a component of the 
                                Retirement Plan for Employees of the 
                                Federal Reserve System, established 
                                under section 10 of the Federal Reserve 
                                Act,
                        determined without regard to any deposit or 
                        redeposit requirement under either such 
                        subchapter or under such benefit structure, or 
                        any requirement that the individual become 
                        subject to either such subchapter or to such 
                        benefit structure after performing the service 
                        involved; or''.
            (2) Exception.--Subsection (d) of section 8402 of title 5, 
        United States Code, is amended to read as follows:
    ``(d) Paragraph (2) of subsection (b) shall not apply to an 
individual who--
            ``(1) becomes subject to--
                    ``(A) subchapter II of chapter 8 of title I of the 
                Foreign Service Act of 1980 (relating to the Foreign 
                Service Pension System) pursuant to an election; or
                    ``(B) the benefit structure in which employees of 
                the Board of Governors of the Federal Reserve System 
                appointed on or after January 1, 1984, participate, 
                which benefit structure is a component of the 
                Retirement Plan for Employees of the Federal Reserve 
                System, established under section 10 of the Federal 
                Reserve Act (and any redesignated or successor version 
                of such benefit structure, if so identified in writing 
                by the Board of Governors of the Federal Reserve System 
                for purposes of this chapter); and
            ``(2) subsequently enters a position in which, but for 
        paragraph (2) of subsection (b), such individual would be 
        subject to this chapter.''.
    (c) Provisions Relating to Certain Former Employees.--A former 
employee of the Board of Governors of the Federal Reserve System who--
            (1) has at least 5 years of civilian service (other than 
        any service performed in the employ of a Federal Reserve Bank) 
        creditable under the benefit structure for employees of the 
        Board of Governors of the Federal Reserve System appointed 
        before January 1, 1984, that is a component of the Retirement 
        Plan for Employees of the Federal Reserve System, established 
        under section 10 of the Federal Reserve Act;
            (2) was subsequently employed subject to the benefit 
        structure in which employees of the Board of Governors of the 
        Federal Reserve System appointed on or after January 1, 1984, 
        participate, which benefit structure is a component of the 
        Retirement Plan for Employees of the Federal Reserve System, 
        established under section 10 of the Federal Reserve Act (and 
        any redesignated or successor version of such benefit 
        structure, if so identified in writing by the Board of 
        Governors of the Federal Reserve System for purposes of chapter 
        84 of title 5, United States Code); and
            (3) after service described in paragraph (2), becomes 
        subject to and thereafter entitled to benefits under chapter 84 
        of title 5, United States Code,
shall, for purposes of section 302 of the Federal Employees' Retirement 
System Act of 1986 (100 Stat. 601; 5 U.S.C. 8331 note) be considered to 
have become subject to chapter 84 of title 5, United States Code, 
pursuant to an election under section 301 of such Act.
    (d) Effective Date.--
            (1) In general.--Subject to succeeding provisions of this 
        subsection, this section and the amendments made by this 
        section shall take effect on the date of enactment of this Act.
            (2) Provisions relating to creditability and certain former 
        employees.--The amendments made by subsection (a) and the 
        provisions of subsection (c) shall apply only to individuals 
        who separate from service subject to chapter 84 of title 5, 
        United States Code, on or after the date of enactment of this 
        Act.
            (3) Provisions relating to exclusion from chapter.--The 
        amendments made by subsection (b) shall not apply to any former 
        employee of the Board of Governors of the Federal Reserve 
        System who, subsequent to his or her last period of service as 
        an employee of the Board of Governors of the Federal Reserve 
        System and prior to the date of enactment of this Act, became 
        subject to subchapter III of chapter 83 or chapter 84 of title 
        5, United States Code, under the law in effect at the time of 
        the individual's appointment.

SEC. 3. CERTAIN TRANSFERS TO BE TREATED AS A SEPARATION FROM SERVICE 
              FOR PURPOSES OF THE THRIFT SAVINGS PLAN.

    (a) Amendments to Chapter 84 of Title 5, United States Code.--
            (1) In general.--Subchapter III of chapter 84 of title 5, 
        United States Code, is amended by inserting before section 8432 
        the following:
``Sec. 8431. Certain transfers to be treated as a separation
    ``(a) For purposes of this subchapter, separation from Government 
employment includes a transfer from a position that is subject to one 
of the retirement systems described in subsection (b) to a position 
that is not subject to any of them.
    ``(b) The retirement systems described in this subsection are--
            ``(1) the retirement system under this chapter;
            ``(2) the retirement system under subchapter III of chapter 
        83; and
            ``(3) any other retirement system under which individuals 
        may contribute to the Thrift Savings Fund through withholdings 
        from pay.''.
            (2) Clerical amendment.--The table of sections for chapter 
        84 of title 5, United States Code, is amended by inserting 
        before the item relating to section 8432 the following:

``8431. Certain transfers to be treated as a separation.''.
    (b) Conforming Amendments.--Subsection (b) of section 8351 of title 
5, United States Code, is amended by redesignating paragraph (11) as 
paragraph (8), and by adding at the end the following:
            ``(9) For the purpose of this section, separation from 
        Government employment includes a transfer described in section 
        8431.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to transfers occurring before, on, or after the date 
of enactment of this Act, except that, for purposes of applying such 
amendments with respect to any transfer occurring before such date of 
enactment, the date of such transfer shall be considered to be the date 
of enactment of this Act. The Executive Director (within the meaning of 
section 8401(13) of title 5, United States Code) may prescribe any 
regulations necessary to carry out this subsection.

SEC. 4. CLARIFYING AMENDMENTS.

    (a) In General.--Subsection (f) of section 3304 of title 5, United 
States Code, as added by section 2 of Public Law 105-339, is amended--
            (1) by striking paragraph (4);
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively; and
            (3) by inserting after paragraph (1) the following:
    ``(2) If selected, a preference eligible or veteran described in 
paragraph (1) shall acquire competitive status and shall receive a 
career or career-conditional appointment, as appropriate.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect as if enacted on October 31, 1998.

            Passed the House of Representatives March 16, 1999.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

Summary: Federal Reserve Board Retirement Portability Act - Includes as creditable service of a Federal employee or Member of Congress for purposes of Federal Employees Retirement System (FERS) provisions a period of service (other than any service already creditable under FERS, any military service, and any service performed in the employ of a Federal Reserve Bank) that was creditable under the Bank Plan (the benefit structure in which employees of the Board of Governors of the Federal Reserve System appointed on or after January 1, 1984, participate), if the employee waives credit for such service under the Bank Plan and makes a payment to the Thrift Savings Fund equal to the amount that would have been deducted from pay had the employee been subject to FERS during such period of service (together with interest on such amount computed). 
Excludes from participation in FERS any employee or Member who has separated from civilian service after having been subject to the benefit structure for employees of the Board appointed before January 1, 1984, and having at least five years of civilian service (other than any service performed in the employ of a Federal Reserve Bank) creditable under such benefit structure, except for such persons who subsequently enter a position subject to FERS provisions. 
Makes the amendments regarding creditability and certain former Board employees applicable only to individuals who separate from service subject to FERS on or after the date of enactment of this Act. 
(Sec. 3) Treats as a separation from Government employment, for purposes of the Thrift Savings Plan, any transfer from a position that is subject to FERS, CSRS, or any other retirement system under which individuals may contribute to the Thrift Savings Fund through withholdings from pay, to a position that is not subject to any of them. 
(Sec. 4) Amends competitive service examination provisions to: (1) repeal the requirement that the Office of Personnel Management establish an appointing authority to appoint preference eligibles and veterans who have been separated from the armed forces under honorable conditions after three or more years of active service; and (2) require such a preference eligible or veteran, if selected, to acquire competitive status and receive a career or career-conditional appointment.