To amend title 5, United States Code, to provide for reform relating to employment at the Federal Bureau of Investigation.

SECTION 1. MANDATORY SEPARATION AGE.

    (a) Civil Service Retirement System.--Section 8335(b) of title 5, 
United States Code, is amended--
            (1) by striking ``(b)'' and inserting ``(b)(1)''; and
            (2) by adding at the end the following:
    ``(2) In the case of employees of the Federal Bureau of 
Investigation, the second sentence of paragraph (1) shall be applied by 
substituting `65 years of age' for `60 years of age'. The authority to 
grant exemptions in accordance with the preceding sentence shall cease 
to be available after December 31, 2009.''.
    (b) Federal Employees' Retirement System.--Section 8425(b) of title 
5, United States Code, is amended--
            (1) by striking ``(b)'' and inserting ``(b)(1)''; and
            (2) by adding at the end the following:
    ``(2) In the case of employees of the Federal Bureau of 
Investigation, the second sentence of paragraph (1) shall be applied by 
substituting `65 years of age' for `60 years of age'. The authority to 
grant exemptions in accordance with the preceding sentence shall cease 
to be available after December 31, 2009.''.

SEC. 2. RETENTION AND RELOCATION BONUSES.

    (a) In General.--Subchapter IV of chapter 57 of title 5, United 
States Code is amended by adding at the end the following:
``Sec. 5759. Retention and relocation bonuses for the Federal Bureau of 
              Investigation
    ``(a) Authority.--The Director of the Federal Bureau of 
Investigation, after consultation with the Director of the Office of 
Personnel Management, may pay, on a case-by-case basis, a bonus under 
this section to an employee of the Bureau if--
            ``(1)(A) the unusually high or unique qualifications of the 
        employee or a special need of the Bureau for the employee's 
        services makes it essential to retain the employee; and
            ``(B) the Director of the Federal Bureau of Investigation 
        determines that, in the absence of such a bonus, the employee 
        would be likely to leave--
                    ``(i) the Federal service; or
                    ``(ii) for a different position in the Federal 
                service; or
            ``(2) the individual is transferred to a different 
        geographic area with a higher cost of living (as determined by 
        the Director of the Federal Bureau of Investigation).
    ``(b) Service Agreement.--Payment of a bonus under this section is 
contingent upon the employee entering into a written service agreement 
with the Bureau to complete a period of service with the Bureau. Such 
agreement shall include--
            ``(1) the period of service the individual shall be 
        required to complete in return for the bonus; and
            ``(2) the conditions under which the agreement may be 
        terminated before the agreed-upon service period has been 
        completed, and the effect of the termination.
    ``(c) Limitation on Authority.--A bonus paid under this section may 
not exceed 50 percent of the employee's basic pay.
    ``(d) Impact on Basic Pay.--A retention bonus is not part of the 
basic pay of an employee for any purpose.
    ``(e) Termination of Authority.--The authority to grant bonuses 
under this section shall cease to be available after December 31, 
2009.''.
    (b) Clerical Amendment.--The analysis for chapter 57 of title 5, 
United States Code, is amended by adding at the end the following:

``5759. Retention and relocation bonuses for the Federal Bureau of 
                            Investigation.''.

SEC. 3. FEDERAL BUREAU OF INVESTIGATION RESERVE SERVICE.

    (a) In General.--Chapter 35 of title 5, United States Code, is 
amended by adding at the end the following:

  ``SUBCHAPTER VII--RETENTION OF RETIRED SPECIALIZED EMPLOYEES AT THE 
                    FEDERAL BUREAU OF INVESTIGATION

``Sec. 3598. Federal Bureau of Investigation Reserve Service
    ``(a) Establishment.--The Director of the Federal Bureau of 
Investigation may provide for the establishment and training of a 
Federal Bureau of Investigation Reserve Service (hereinafter in this 
section referred to as the `FBI Reserve Service') for temporary 
reemployment of employees in the Bureau during periods of emergency, as 
determined by the Director.
    ``(b) Membership.--Membership in the FBI Reserve Service shall be 
limited to individuals who previously served as full-time employees of 
the Bureau.
    ``(c) Annuitants.--If an annuitant receiving an annuity from the 
Civil Service Retirement and Disability Fund becomes temporarily 
reemployed pursuant to this section, such annuity shall not be 
discontinued thereby. An annuitant so reemployed shall not be 
considered an employee for the purposes of chapter 83 or 84.
    ``(d) No Impact on Bureau Personnel Ceiling.--FBI Reserve Service 
members reemployed on a temporary basis pursuant to this section shall 
not count against any personnel ceiling applicable to the Bureau.
    ``(e) Expenses.--The Director may provide members of the FBI 
Reserve Service transportation and per diem in lieu of subsistence, in 
accordance with applicable provisions of this title, for the purpose of 
participating in any training that relates to service as a member of 
the FBI Reserve Service.
    ``(f) Limitation on Membership.--Membership of the FBI Reserve 
Service is not to exceed 500 members at any given time.''.
    (b) Clerical Amendment.--The analysis for chapter 35 of title 5, 
United States Code, is amended by adding at the end the following:

  ``subchapter vii--retention of retired specialized employees at the 
                    federal bureau of investigation
``3598. Federal Bureau of Investigation reserve service.''.

SEC. 4. CRITICAL POSITIONS IN THE FEDERAL BUREAU OF INVESTIGATION 
              INTELLIGENCE DIRECTORATE.

    Section 5377(a)(2) of title 5, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (E);
            (2) by striking the period at the end of subparagraph (F) 
        and inserting ``; and''; and
            (3) by inserting after subparagraph (F) the following:
                    ``(G) a position at the Federal Bureau of 
                Investigation, the primary duties and responsibilities 
                of which relate to intelligence functions (as 
                determined by the Director of the Federal Bureau of 
                Investigation).''.

Summary: Amend Federal retirement provisions relating to the Civil Service Retirement System and the Federal Employees' Retirement System to raise, from 60 to 65, the mandatory separation age for employees of the Federal Bureau of Investigation (FBI) who have been exempted, because it is in the public interest to do so, by the head of the agency from being retired at the earlier automatic separation age limit of 57.

Sets forth provisions for payment of retention and relocation bonuses for the FBI.

Authorizes the Director of the FBI to provide for the establishment and training of a Federal Bureau of Investigation Reserve Service (FBI Reserve Service) for temporary reemployment in the FBI of previously full-time employees of the FBI during emergencies. Limits the membership of the FBI Reserve Service to 500 members at any given time.

Amends Federal law relating to Government organization and employees, to include, with regard to pay authority for critical positions, positions at the FBI, the primary duties and responsibilities of which relate to intelligence functions.