Long-Term Care Security Act
PL 106-265 (H.R.4040), enacted 09/19/2000

114 STAT. 762 
PUBLIC LAW 106-265—SEPT. 19, 2000 
Public Law 106-265 
106th Congress 
An Act 
To amend title 5, United States Code, to provide for the establishment of a program 
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undor wluch long-term care insurance is made available to Federal employees, 
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members of the uniformed services, and civilian and military retirees, provide 
[H.R. 4040] 
for the correction of retirement coverage errors under chapters 83 and 84 of 
such title, and for other piirposes. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, 
L
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n
g Term Care 
T I T L E I — F E D E R A L L O N G - T E R M C A R E 
^'"^"''^'*- 
I N S U R A N C E 
5 use 9001 note. SEC. 1001. SHORT TITLE. 
This title may be cited as the "Long-Term Care Security Act". 
SEC. 1002. LONG-TERM CARE INSURANCE. 
(a) IN GENERAL.—Subpart G of part III of title 5, United States 
Code, is amended by adding at the end the following: 
"CHAPTER 90—LONG-TERM CARE INSURANCE 
"Sec. 
"9001. Definitions. 
"9002. Availability of insurance. 
"9003. Contracting authority. 
"9004. Financing. 
"9005. Preemption. 
"9006. Studies, reports, and audits. 
"9007. Jurisdiction of courts. 
"9008. Administrative functions. 
"9009. Cost accounting standards. 
"§ 9001. Definitions 
For purposes of this chapter: 
"(1) EMPLOYEE.—The term 'employee' means— 
"(A) an employee as defined by section 8901(1); 
"(B) an individual described in section 2105(e); and 
"(C) an individual employed by the Tennessee Valley 
Authority, 
but does not include an individual employed by the government 
of the District of Columbia. 
"(2) ANNUITANT.—^The term 'annuitant' has the meaning 
such term would have under paragraph (3) of section 8901 
if, for purposes of such paragraph, the term 'employee' were 
considered to have the meaning given to it under paragraph 
(1) of this subsection. 
PUBLIC LAW 106-265—SEPT. 19, 2000 
114 STAT. 763 
"(3) MEMBER OF THE UNIFORMED SERVICES.—^The term 
'member of the uniformed services' means a member of the 
uniformed services, other than a retired member of the uni-
formed services, who is— 
"(A) on active duty or full-time National Guard duty 
for a period of more than 30 days; and 
"(B) a member of the Selected Reserve. 
"(4) RETIRED MEMBER OF THE UNIFORMED SERVICES.—^The 
term 'retired member of the uniformed services' means a 
member or former member of the uniformed services entitled 
to retired or retainer pay, including a member or former 
member retired under chapter 1223 of title 10 who has attained 
the age of 60 and who satisfies such eligibility requirements 
as the Office of Personnel Management prescribes under section 
9008. 
"(5) QUALIFIED RELATIVE.—The term 'qualified relative' 
means each of the following: 
"(A) The spouse of an individual described in paragraph 
(1), (2), (3), or (4). 
"(B) A parent, stepparent, or parent-in-law of an indi-
vidual described in paragraph (1) or (3). 
"(C) A child (including an adopted child, a stepchild, 
or, to the extent the Office of Personnel Management by 
regulation provides, a foster child) of an 
individual 
described in paragraph (1), (2), (3), or (4), if such child 
is at least 18 years of age. 
"(D) An individual having such other relationship to 
an individual described in paragraph (1), (2), (3), or (4) 
as the Office may by regulation prescribe. 
"(6) ELIGIBLE INDIVIDUAL.—The term 'eligible individual' 
refers to an individual described in paragraph (1), (2), (3), 
(4), or (5). 
"(7) 
QUALIFIED CARRIER.—^The term 'qualified 
carrier' 
means an insurance company (or consortium of insurance 
companies) that is licensed to issue long-term care insurance 
in all States, taking any subsidiaries of such a company into 
account (and, in the case of a consortium, considering the 
member companies and any subsidiaries thereof, collectively). 
"(8) STATE.—The term 'State' includes the District of 
Columbia. 
"(9) QUALIFIED LONG-TERM CARE INSURANCE CONTRACT.— 
The term 'qualified long-term care insurance contract' has the 
meaning given such term by section 7702B of the Internal 
Revenue Code of 1986. 
"(10) APPROPRIATE SECRETARY.—^The term 'appropriate Sec-
retar)^' means— 
"(A) except as otherwise provided in this paragraph, 
the Secretary of Defense; 
"(B) with respect to the Coast Guard when it is not 
operating as a service of the Navy, the Secretary of 
Transportation; 
"(C) with respect to the commissioned corps of the 
National Oceanic and Atmospheric Administration, the Sec-
retary of Commerce; and 
"(D) with respect to the commissioned corps of the 
Public Health Service, the Secretary of Health and Human 
Services. 
114 STAT. 764 
PUBLIC LAW 106-265—SEPT. 19, 2000 
"§ 9002. Availability of insurance 
"(a) IN GENERAL.—^The Office of Personnel Management shall 
establish and, in consultation with the appropriate Secretaries, 
administer a program through which an individual described in 
paragraph (1), (2), (3), (4), or (5) of section 9001 may obtain long-
term care insurance coverage under this chapter for such individual. 
"(b) GENERAL REQUIREMENTS.—Long-term care insurance may 
not be offered under this chapter unless— 
"(1) the only coverage provided is under qualified long-
term care insurance contracts; and 
"(2) each insurance contract under which any such coverage 
is provided is issued by a qualified carrier. 
"(c) 
DOCUMENTATION 
REQUIREMENT.—^As 
a 
condition 
for 
obtaining long-term care insurance coverage under this chapter 
based on one's status as a qualified relative, an applicant shall 
provide documentation to demonstrate the relationship, as pre-
scribed by the Office. 
"(d) UNDERWRITING STANDARDS.— 
"(1) DISQUALIFYING CONDITION.—Nothing in this chapter 
shall be considered to require that long-term care insurance 
coverage be made available in the case of any individual who 
would be eligible for benefits immediately. 
"(2) SPOUSAL PARITY.—For the purpose of underwriting 
standards, a spouse of an individual described in paragraph 
(1), (2), (3), or (4) of section 9001 shall, as nearly as practicable, 
be treated like that individual. 
"(3) GUARANTEED ISSUE.—Nothing in this chapter shall 
be considered to require that long-term care insurance coverage 
be guaranteed to an eligible individual. 
"(4) REQUIREMENT THAT CONTRACT BE FULLY INSURED.— 
In addition to the requirements otherwise applicable under 
section 9001(9}, in order to be considered a qualified long-
term care insurance contract for purposes of this chapter, a 
contract must be fully insured, whether through reinsurance 
with other companies or otherwise. 
"(5) HIGHER 
STANDARDS ALLOWABLE.—Nothing in this 
chapter shall, in the case of an individual appljdng for long-
term care insurance coverage under this chapter after the 
expiration of such individual's first opportunity to enroll, pre-
clude the application of underwriting standards more stringent 
than those that would have applied if that opportunity had 
not yet expired. 
"(e) GUARANTEED RENEWABILITY.—^The benefits and coverage 
made available to eligible individuals under any insurance contract 
under this chapter shall be guaranteed renewable (as defined by 
• section 7A(2) of the model regulations described in section 
7702B(g)(2) of the Internal Revenue Code of 1986), including the 
right to have insurance remain in effect so long as premiums 
continue to be timely made. However, the authority to revise pre-
miums under this chapter shall be available only on a class basis 
and only to the extent otherwise allowable under section 9003(b). 
"§ 9003. Contracting authority 
"(a) IN GENERAL.—The Office of Personnel Management shall, 
without regard to section 5 of title 41 or any other statute requiring 
competitive bidding, contract with one or more qualified carriers 
for a policy or policies of long-term care insurance. The Office 
PUBLIC LAW 106-265—SEPT. 19, 2000 
114 STAT. 765 
shall ensure that each resulting contract (hereafter in this chapter 
referred to as a 'master contract') is awarded on the basis of con-
tractor qualifications, price, and reasonable competition. 
"(b) TERMS AND CONDITIONS.— 
"(1) IN GENERAL.—Each master contract under this chapter 
shall contain— 
"(A) a detailed statement of the benefits 
offered 
(including any maximums, limitations, exclusions, and 
other definitions of benefits); 
"(B) the premiums charged (including any limitations 
or other conditions on their subsequent adjustment); 
"(C) the terms of the enrollment period; and 
"(D) such other terms and conditions as may be mutu-
ally agreed to by the Office and the carrier involved, con-
sistent with the requirements of this chapter. 
"(2) PREMIUMS.—Premiums charged under each master con-
tract entered into under this section shall reasonably and equi-
tably reflect the cost of the benefits provided, as determined 
by the Office. The premiums shall not be adjusted during 
the term of the contract unless mutually agreed to by the 
Office and the carrier. 
"(3) NONRENEWABILITY.—^Master contracts 
under 
this 
chapter may not be made automatically renewable. 
"(c) PAYMENT OF REQUIRED BENEFITS; DISPUTE RESOLUTION.— 
"(1) IN GENERAL.—^Each master contract under this chapter 
shall require the carrier to agree— 
"(A) to provide payments or benefits to an eligible 
individual if such individual is entitled thereto under the 
terms of the contract; and 
"(B) with respect to disputes regarding claims for pay-
ments or benefits under the terms of the contract— 
"(i) to establish internal procedures designed to 
expeditiously resolve such disputes; and 
"(ii) to establish, for disputes not resolved through 
procedures under clause (i), procedures for one or more 
alternative means of dispute resolution involving inde-
pendent third-party review under appropriate cir-
cumstances by entities mutually acceptable to the 
Office and the carrier. 
"(2) ELIGIBILITY.—^A carrier's determination as to whether 
or not a particular individual is eligible to obtain long-term 
care insurance coverage under this chapter shall be subject 
to review only to the extent and in the manner provided in 
the applicable master contract. 
"(3) OTHER CLAIMS.—For purposes of applying the Contract 
Disputes Act of 1978 to disputes arising under this chapter 
between a carrier and the Office— 
"(A) the agency board having jurisdiction to decide 
an appeal relative to such a dispute shall be such board 
of contract appeals as the Director of the Office of Personnel 
Management shall specify in writing (after appropriate 
arrangements, as described in section 8(c) of such Act); 
and 
"(B) the district courts of the United States shall have Courts, 
original jurisdiction, concurrent with the United States 
Court of Federal Claims, of any action described in section 
10(a)( 1) of such Act relative to such a dispute. 
79-194 O - 00 - 26: QL 3 Part 1 
114 STAT. 766 
PUBLIC LAW 106-265—SEPT. 19, 2000 
"(4) RULE OF CONSTRUCTION.—^Nothing in this chapter shall 
be considered to grant authority for the Office or a third-
party reviewer to change the terms of any contract under 
this chapter. 
"(d) DURATION.— 
"(1) IN GENERAL.—Each master contract under this chapter 
shall be for a term of 7 years, unless terminated earlier by 
the Office in accordance with the terms of such contract. How-
ever, the rights and responsibilities of the enrolled individual, 
the insurer, and the Office (or duly designated third-party 
administrator) under such contract shall continue with respect 
to such individual until the termination of coverage of the 
enrolled individual or the effective date of a successor contract 
thereto. 
"(2) EXCEPTION.— 
"(A) SHORTER DURATION.—In the case of a master con-
tract entered into before the end of the period described 
in subparagraph (B), paragraph (1) shall be applied by 
substituting 'ending on the last day of the 7-year period 
described in paragraph (2)(B)' for 'of 7 years'. 
"(B) 
DEFINITION.—^The 
period 
described 
in 
this 
subparagraph is the 7-year period beginning on the earliest 
date as of which any long-term care insurance coverage 
under this chapter becomes effective. 
Deadline. 
"(3) CONGRESSIONAL NOTIFICATION.—No 
l a t e r t h a n 
180 
President. 
days after receiving the second report required under section 
9006(c), the President (or his designee) shall submit to the 
Committees on Government Reform and on Armed Services 
of the House of Representatives and the Committees on Govern-
mental Affairs and on Armed Services of the Senate, a written 
recommendation as to whether the program under this chapter 
should be continued without modification, terminated, or 
restructured. During the 180-day period following the date 
on which the President (or his designee) submits the rec-
ommendation required under the preceding sentence, the Office 
of Personnel Management may not take any steps to rebid 
or otherwise contract for any coverage to be available at any 
time following the expiration of the 7-year period described 
in paragraph (2)(B). 
"(4) FULL PORTABILITY.—Each master contract under this 
chapter shall include such provisions as may be necessary 
to ensure that, once an individual becomes duly enrolled, long-
term care insurance coverage obtained by such individual 
pursuant to that enrollment shall not be terminated due to 
any change in status (such as separation from Government 
service or the uniformed services) or ceasing to meet the 
requirements for being considered a qualified relative (whether 
as a result of dissolution of marriage or otherwise). 
"§ 9004. Financing 
"(a) IN GENERAL.—Each eligible individual obtaining long-term 
care insurance coverage under this chapter shall be responsible 
for 100 percent of the premiums for such coverage. 
"(b) WITHHOLDINGS.— 
"(1) IN GENERAL.—^The amount necessary to pay the pre-
miums for enrollment may— 
PUBLIC LAW 106-265—SEPT. 19, 2000 
114 STAT. 767 
"(A) in the case of an employee, be withheld from 
the pay of such employee; 
"(B) in the case of an annuitant, be withheld from 
the annuity of such annuitant; 
"(C) in the case of a member of the uniformed services 
described in section 9001(3), be withheld from the pay 
of such member; and 
"(D) in the case of a retired member of the uniformed 
services described in section 9001(4), be withheld from 
the retired pay or retainer pay payable to such member. 
"(2) 
VOLUNTARY 
WITHHOLDINGS 
FOR 
QUALIFIED 
REL-
ATIVES.—^Withholdings to pay the premiums for enrollment of 
a qualified relative may, upon election of the appropriate 
eligible individual (described in section 9001(l)-(4)), be with-
held under paragraph (1) to the same extent and in the same 
manner as if enrollment were for such individual. 
"(c) DIRECT PAYMENTS.—^All amounts withheld under this sec-
tion shall be paid directly to the carrier. 
"(d) OTHER FORMS OF PAYMENT.—Any enrollee who does not 
elect to have premiums withheld under subsection (b) or whose 
pay, annuity, or retired or retainer pay (as referred to in subsection 
(b)(1)) is insufficient to cover the withholding required for enroll-
ment (or who is not receiving any regular amounts from the Govern-
ment, as referred to in subsection (b)(1), from which any such 
withholdings may be made, and whose premiums are not otherwise 
being provided for under subsection (b)(2)) shall pay an amount 
equal to the full amount of those charges directly to the carrier. 
"(e) 
SEPARATE 
ACCOUNTING 
REQUIREMENT.—^Each 
carrier Records, 
participating under this chapter shall maintain records that permit 
it to account for all amounts received under this chapter (including 
investment earnings on those amounts) separate and apart from 
all other funds. 
"(f) REIMBURSEMENTS.— 
"(1) REASONABLE INITIAL COSTS.— 
"(A) IN GENERAL.—^The Employees' Life Insurance Fund 
is available, without fiscal year limitation, for reasonable 
expenses incurred by the Office of Personnel Management 
in administering this chapter before the start of the 7-
year period described in section 9003(d)(2)(B), including 
reasonable implementation costs. 
"(B) REIMBURSEMENT REQUIREMENT.—Such Fund shall 
be reimbursed, before the end of the first year of that 
7-year period, for all amounts obligated or expended under 
subparagraph (A) (including lost investment income). Such 
reimbursement shall be made by carriers, on a pro rata 
basis, in accordance with appropriate provisions which 
shall be included in master contracts under this chapter. 
"(2) SUBSEQUENT COSTS.— 
"(A) IN GENERAL.—^There is hereby established in the 
Employees' Life 
Insurance 
Fund 
a Long-Term 
Care 
Administrative Account, which shall be available to the 
Office, without fiscal year limitation, to defray reasonable 
expenses incurred by the Office in administering this 
chapter after the start of the 7-year period described in 
section 9003(d)(2)(B). 
114 STAT. 768 
PUBLIC LAW 106-265—SEPT. 19, 2000 
Contracts. 
Contracts. 
Records. 
Certification. 
Regulations. 
Regulations. 
"(B) 
REIMBURSEMENT 
REQUIREMENT.—Each 
master 
contract under this chapter shall include appropriate provi-
sions under which the carrier involved shall, during each 
year, make such periodic contributions to the Long-Term 
Care Administrative Account as necessary to ensure that 
the reasonable anticipated expenses of the Office in admin-
istering this chapter during such year (adjusted to reconcile 
for any earlier overestimates or underestimates under this 
subparagraph) are defrayed. 
"§ 9005. Preemption 
"The terms of any contract under this chapter which relate 
to the nature, provision, or extent of coverage or benefits (including 
payments with respect to benefits) shall supersede and preempt 
any State or local law, or any regulation issued thereunder, which 
relates to long-term care insurance or contracts. 
*
*
§ 9006. Studies, reports, and audits 
"(a) PROVISIONS RELATING TO CARRIERS.—Each master contract 
under this chapter shall contain provisions requiring the carrier— 
"(1) to furnish such reasonable reports as the Office of 
Personnel Management determines to be necessary to enable 
it to carry out its functions under this chapter; and 
"(2) to permit the Office and representatives of the General 
Accounting Office to examine such records of the carrier as 
may be necessary to carry out the purposes of this chapter. 
"(b) PROVISIONS RELATING TO FEDERAL AGENCIES.—Each Fed-
eral agency shall keep such records, make such certifications, and 
furnish the OfBce, the carrier, or both, with such information and 
reports as the Office may require. 
"(c) REPORTS BY THE GENERAL ACCOUNTING OFFICE.—^The Gen-
eral Accounting Office shall prepare and submit to the President, 
the Office of Personnel Management, and each House of Congress, 
before the end of the third and fifth years during which the program 
under this chapter is in effect, a written report evaluating such 
program. Each such report shall include an analysis of the competi-
tiveness of the program, as compared to both group and individual 
coverage generally available to individuals in the private insurance 
market. The Office shall cooperate with the General Accounting 
Office to provide periodic evaluations of the program. 
"§ 9007. Jurisdiction of courts 
"The district courts of the United States have original jurisdic-
tion of a civil action or claim described in paragraph (1) or (2) 
of section 9003(c), after such administrative remedies as required 
under such paragraph (1) or (2) (as applicable) have been exhausted, 
but only to the extent judicial review is not precluded by any 
dispute resolution or other remedy under this chapter. 
"§ 9008. Administrative functions 
"(a) IN GENERAL.—^The Office of Personnel Management shall 
prescribe regulations necessary to carry out this chapter. 
"(b) ENROLLMENT PERIODS.—^The Office shall provide for peri-
odic coordinated enrollment, promotion, and education efforts in 
consultation with the carriers. 
"(c) CONSULTATION.—^Any regulations necessary to effect the 
application and operation of this chapter with respect to an eligible 
PUBLIC LAW 106-265—SEPT. 19, 2000 
114 STAT. 769 
individual described in paragraph (3) or (4) of section 9001, or 
a qualified relative thereof, shall be prescribed by the Office in 
consultation with the appropriate Secretary. 
"(d) INFORMED DECISIONMAKING.—The Office shall ensure that 
each eligible individual applying for long-term care insurance under 
this chapter is furnished the information necessary to enable that 
individual to evaluate the advantages and disadvantages of 
obtaining long-term care insurance under this chapter, including 
the following: 
"(1) The principal long-term care benefits and coverage 
available under this chapter, and how those benefits and cov-
erage compare to the range of long-term care benefits and 
coverage otherwise generally available. 
"(2) Representative examples of the cost of long-term care, 
and the sufficiency of the benefits available under this chapter 
relative to those costs. The information under this paragraph 
shall also include— 
"(A) the projected effect of inflation on the value of 
those benefits; and 
"(B) a comparison of the inflation-adjusted value of 
those benefits to the projected future costs of long-term 
care. 
"(3) Any rights individuals under this chapter may have 
to cancel coverage, and to receive a total or partial refund 
of premiums. The information under this paragraph shall also 
include— 
"(A) the projected number or percentage of individuals 
likely to fail to maintain their coverage (determined based 
on lapse rates experienced under similar group long-term 
care insurance programs and, when available, this chapter); 
and 
"(B)(i) a summary description of how and when pre-
miums for long-term care insurance under this chapter 
may be raised; 
"(ii) the premium history during the last 10 years 
for each qualified carrier offering long-term care insurance 
under this chapter; and 
"(iii) if cost increases are anticipated, the projected 
premiums for a typical insured individual at various ages. 
"(4) The advantages and disadvantages of long-term care 
insurance generally, relative to other means of accumulating 
or otherwise acquiring the assets that may be needed to meet 
the costs of long-term care, such as through tax-qualified retire-
ment programs or other investment vehicles. 
*'§ 9009. Cost accounting standards 
"The cost accounting standards issued pursuant to section 26(f) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 422(f)) 
shall not apply with respect to a long-term care insurance contract 
under this chapter.". 
(b) CONFORMING AMENDMENT.—The analysis for part III of 
title 5, United States Code, is amended by adding at the end 
of subpart G the following: 
"90. Long-Term Care Insurance 
9001.". 
114 STAT. 770 
PUBLIC LAW 106-265—SEPT. 19, 2000 
5 u s e 9001 note. 
SEC. 1003. EFFECTIVE DATE. 
The Office of Personnel Management shall take such measures 
as may be necessary to ensure that long-term care insurance cov-
erage under title 5, United States Code, as amended by this title, 
may be obtained in time to take effect not later than the first 
day of the first applicable pay period of the first fiscal year which 
begins after the end of the 18-month period beginning on the 
date of the enactment of this Act. 
Federal 
Erroneous 
Retirement 
Coverage 
Corrections Act. 
5 u s e 8331 note. 
TITLE II—FEDERAL RETIREMENT 
COVERAGE ERRORS CORRECTION 
SEC. 2001. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—^This title may be cited as the "Federal 
Erroneous Retirement Coverage Corrections Act". 
(b) TABLE OF CONTENTS.—The table of contents for this title 
is as follows: 
TITLE II—FEDERAL RETIREMENT COVERAGE ERRORS CORRECTION 
Sec. 2001. Short title; table of contents. 
Sec. 2002. Definitions. 
Sec. 2003. Applicability. 
Sec. 2004. Irrevocability of elections. 
Subtitle A—Description of Retirement Coverage Errors to Which This Title Applies 
and Measures for Their Rectification 
CHAPTER 1—EMPLOYEES AND ANNUITANTS WHO SHOULD HAVE BEEN F E R S COV-
ERED, BUT WHO WERE ERRONEOUSLY C S R S COVERED OR CSRS-OFFSET COVERED 
INSTEAD, AND SURVIVORS OF SUCH EMPLOYEES AND ANNUITANTS 
Sec. 2101. Employees. 
Sec. 2102. Annuitants and survivors. 
CHAPTER 2—EMPLOYEE WHO SHOULD HAVE BEEN FERS COVERED, CSRS-OFFSET 
COVERED, OR C S R S COVERED, BUT WHO WAS ERRONEOUSLY SOCIAL SECURITY-
ONLY COVERED INSTEAD 
Sec. 2111. Applicability. 
Sec. 2112. Correction mandatory. 
CHAPTER 3—EMPLOYEE WHO SHOULD OR COULD HAVE BEEN SOCIAL SECURITY-ONLY 
COVERED BUT WHO WAS ERRONEOUSLY CSRS-OFFSET COVERED OR CSRS COV-
ERED INSTEAD 
Sec. 2121. Employee who shoxild be Social Security-Only covered, but who is erro-
neously CSRS or CSRS-Offset covered instead. 
CHAPTER 4—EMPLOYEE WHO WAS ERRONEOUSLY FERS COVERED 
Sec. 2131. Employee who should be Social Security-Only covered, CSRS covered, or 
CSRS-Offset covered and is not FERS-Eligible, but who is erroneously 
FERS covered instead. 
Sec. 2132. FERS-Eligible employee who should have been CSRS covered, CSRS-Off-
set covered, or Social Security-Only covered, but who was erroneously 
FERS covered instead without an election. 
Sec. 2133. Retroactive effect. 
CHAPTER 5—EMPLOYEE WHO SHOULD HAVE BEEN CSRS-OFFSET COVERED, BUT 
WHO WAS ERRONEOUSLY CSRS COVERED INSTEAD 
Sec. 2141. Applicability. 
Sec. 2142. Correction mandatory. 
CHAPTER 6—EMPLOYEE WHO SHOULD HAVE BEEN CSRS COVERED, BUT WHO WAS 
ERRONEOUSLY CSRS-OFFSET COVERED INSTEAD 
Sec. 2151. Applicability. 
PUBLIC LAW 106-265—SEPT. 19, 2000 
114 STAT. 771 
Sec. 2152. Correction mandatory. 
Subtitle B—General Provisions 
Sec. 2201. Identification and notification requirements. 
Sec. 2202. Information to be fiimished to and by authorities administering this 
title. 
Sec. 2203. Service credit deposits. 
Sec. 2204. Provisions related to Social Security coverage of misclassified employees. 
Sec. 2205. Thrift Savings Plan treatment for certain individuals. 
Sec. 2206. Certain agency amounts to be paid into or remain in the CSRDF. 
Sec. 2207. CSRS coverage determinations to be approved by 0PM. 
Sec. 2208. Discretionary actions by Director. 
Sec. 2209. Regulations. 
Subtitle C—Other Provisions 
Sec. 2301. Provisions to authorize continued conformity of other Federal retirement 
systems. 
Sec. 2302. Authorization of payments. 
Sec. 2303. Individual right of action preserved for amounts not otherwise provided 
for under this title. 
Subtitle D—Effective Date 
Sec. 2401. Effective date. 
SEC. 2002. DEFINITIONS. 
5 USC 8331 note. 
For purposes of this title: 
(1) ANNUITANT.—^The term "annuitant" has the meaning 
given such term under section 8331(9) or 8401(2) of title 5, 
United States Code. 
(2) CSRS.—The term "CSRS" means the Civil Service 
Retirement System. 
(3) CSRDF.—The term "CSRDF" means the Civil Service 
Retirement and Disability Fund. 
(4) CSRS COVERED.—The term "CSRS covered", with 
respect to any service, means service that is subject to the 
provisions of subchapter III of chapter 83 of title 5, United 
States Code, other than service subject to section 8334(k) of 
such title. 
(5) CSRS-OFFSET COVERED.—The term "CSRS-Offset cov-
ered", with respect to any service, means service that is subject 
to the provisions of subchapter III of chapter 83 of title 5, 
United States Code, and to section 8334(k) of such title. 
(6) EMPLOYEE.—The term "employee" has the meaning 
given such term under section 8331(1) or 8401(11) of title 
5, United States Code. 
(7) EXECUTIVE DIRECTOR.—^The term "Executive Director 
of the Federal Retirement Thrift Investment Board" or "Execu-
tive Director" means the Executive Director appointed under 
section 8474 of title 5, United States Code. 
(8) 
FERS.—The 
term 
"FERS" 
means 
the 
Federal 
Employees' Retirement System. 
(9) FERS COVERED.—The term "FERS covered", with 
respect to any service, means service that is subject to chapter 
84 of title 5, United States Code. 
(10) FORMER EMPLOYEE.—The term "former employee" 
means an individual who was an employee, but who is not 
an annuitant. 
(11) OASDI TAXES.—The term "OASDI taxes" means the 
OASDI employee tax and the OASDI employer tax. 
(12) OASDI EMPLOYEE TAX.—^The term "OASDI employee 
tax" means the tax imposed under section 3101(a) of the 
114 STAT. 772 
PUBLIC LAW 106-265—SEPT. 19, 2000 
Internal Revenue Code of 1986 (relating to Old-Age, Survivors 
and Disability Insurance). 
(13) OASDI EMPLOYER TAX.—^The term "OASDI employer 
tax" means the tax imposed under section 3111(a) of the 
Internal Revenue Code of 1986 (relating to Old-Age, Survivors 
and Disability Insurance). 
(14) OASDI TRUST FUNDS.—The term "OASDI trust funds" 
means the Federal Old-Age and Survivors Insurance Trust 
Fund and the Federal Disability Insurance Trust Fund. 
(15) OFFICE.—The term "Office" means the Office of Per-
sonnel Management. 
(16) RETIREMENT COVERAGE DETERMINATION.—The term 
"retirement coverage determination" means a determination 
by an employee or agent of the Government as to whether 
a particular type of Government service is CSRS covered, CSRS-
Offset covered, FERS covered, or Social Security-Only covered. 
(17) RETIREMENT COVERAGE ERROR.—^The term "retirement 
coverage error" means an erroneous retirement coverage deter-
mination that was in effect for a minimum period of 3 years 
of service after December 31, 1986. 
(18) SOCIAL SECURITY-ONLY COVERED.—The term "Social 
Security-Only covered", with respect to any service, means 
Government service that— 
(A) constitutes employment under section 210 of the 
Social Security Act (42 U.S.C. 410); and 
(B)(i) is subject to OASDI taxes; but 
(ii) is not subject to CSRS or FERS. 
(19) SURVIVOR.—^The term "survivor" has the meaning 
given such term under section 8331(10) or 8401(28) of title 
5, United States Code. 
(20) THRIFT SAVINGS FUND.—^The term "Thrift Savings 
Fund" means the Thrift Savings Fund established under section 
8437 of title 5, United States Code. 
5 u s e 8331 note. 
SEC. 2003. APPLICABILITY. 
(a) IN GENERAL.—This title shall apply with respect to retire-
ment coverage errors that occur before, on, or after the date of 
the enactment of this Act. 
(b) LIMITATION.—Except as otherwise provided in this title, 
this title shall not apply to any erroneous retirement coverage 
determination that was in effect for a period of less than 3 years 
of service after December 31, 1986. 
5 u s e 8331 note. 
SEC. 2004. IRREVOCABILITY OF ELECTIONS. 
Any election made (or deemed to have been made) by an 
employee or any other individual under this title shall be irrev-
ocable. 
PUBLIC LAW 106-265—SEPT. 19, 2000 
114 STAT. 773 
Subtitle A—Description of Retirement Cov-
erage Errors to Which This Title Applies 
and Measures for Their Rectification 
CHAPTER 
1—EMPLOYEES 
AND 
ANNUITANTS 
WHO 
SHOULD HAVE BEEN FERS COVERED, BUT WHO WERE 
ERRONEOUSLY CSRS COVERED OR CSRS-OFFSET COV-
ERED INSTEAD, AND SURVIVORS OF SUCH EMPLOY-
EES AND ANNUITANTS 
SEC. 2101. EMPLOYEES. 
5 USC 8331 note. 
(a) APPLICABILITY.—^This section shall apply in the case of any 
employee or former employee who should be (or should have been) 
FERS covered but, as a result of a retirement coverage error, 
is (or was) CSRS covered or CSRS-Offset covered instead. 
(b) UNCORRECTED ERROR.— 
(1) APPLICABILITY.—^This subsection applies if the retire-
ment coverage error has not been corrected before the effective 
date of the regulations described under paragraph (3). As soon 
as practicable after discovery of the error, and subject to the 
right of an election under paragraph (2), if CSRS covered or 
CSRS-Offset covered, such individual shall be treated as CSRS-
Offset covered, retroactive to the date of the retirement coverage 
error. 
(2) COVERAGE.— 
(A) ELECTION.—Upon written notice of a retirement 
coverage error, an individual may elect to be CSRS-Offset 
covered or FERS covered, effective as of the date of the 
retirement coverage error. Such election shall be made Deadline, 
not later than 180 days after the date of receipt of such 
notice. 
(B) NONELECTION.—If the individual does not make 
an election by the date provided under subparagraph (A), 
a CSRS-Offset covered individual shall remain CSRS-Offset 
covered and a CSRS covered individual shall be treated 
as CSRS-Offset covered. 
(3) REGULATIONS.—^The Office shall prescribe regulations 
to carry out this subsection. 
(c) CORRECTED ERROR.— 
(1) APPLICABILITY.—^This subsection applies if the retire-
ment coverage error was corrected before the effective date 
of the regulations described under subsection (b). 
(2) COVERAGE.— 
(A) ELECTION.— 
(i) CSRS-OFFSET COVERED.—Not later than 180 
Deadline, 
days after the date of the enactment of this Act, the Regulations. 
Office shall prescribe regulations authorizing individ-
uals to elect, during the 18-month period immediately 
following the effective date of such regulations, to be 
CSRS-Offset covered, effective as of the date of the 
retirement coverage error. 
(ii) 
THRIFT 
SAVINGS 
FUND 
CONTRIBUTIONS.—If 
under this section an individual elects to be CSRS-
Offset covered, all employee contributions to the Thrift 
114 STAT. 774 
PUBLIC LAW 106-265—SEPT. 19, 2000 
Savings Fund made during the period of FERS cov-
erage (and earnings on such contributions) may remain 
in the Thrift Savings Fund in accordance with regula-
tions prescribed by the Executive Director, notwith-
standing any Umit under title 5, United States Code, 
that would otherwise be applicable. 
(B) PREVIOUS SETTLEMENT PAYMENT.—^An individual 
who previously received a payment ordered by a court 
or provided as a settlement of claim for losses resulting 
from a retirement coverage error shall not be entitled to 
make an election under this subsection unless that amount 
is waived in whole or in part under section 2208, and 
any amount not waived is repaid. 
(C) INELIGIBILITY FOR ELECTION.—^An individual who, 
subsequent to correction of the retirement coverage error, 
received a refund of retirement deductions under section 
8424 of title 5, United States Code, or a distribution under 
section 8433(b), (c), or (h)(1)(A) of title 5, United States 
Code, may not make an election under this subsection. 
(3) CORRECTIVE ACTION TO REMAIN IN EFFECT.—If an indi-
vidual is ineligible to make an election or does not make an 
election under paragraph (2) before the end of any time limita-
tion under this subsection, the corrective action taken before 
such time limitation shall remain in effect. 
5 u s e 8331 note. 
SEC. 2102. ANNUITANTS AND SURVIVORS. 
(a) IN GENERAL.—This section shall apply in the case of an 
individual who is— 
(1) an annuitant who should have been FERS covered 
but, as a result of a retirement coverage error, was CSRS 
covered or CSRS-Offset covered instead; or 
(2) a survivor of an employee who should have been FERS 
covered but, as a result of a retirement coverage error, was 
CSRS covered or CSRS-Offset covered instead. 
(b) COVERAGE.— 
DeadHne. 
(1) ELECTION.—Not later than 180 days after the date 
Regulations. 
of the enactment of this Act, the Office shall prescribe regula-
tions authorizing an individual described under subsection (a) 
to elect CSRS-Offset coverage or FERS coverage, effective as 
of the date of the retirement coverage error. 
Deadline. 
(2) TiME LIMITATION.—^An election under this subsection 
shall be made not later than 18 months after the effective 
date of the regulations prescribed under paragraph (1). 
(3) REDUCED ANNUITY.— 
Regulations. 
(A) AMOUNT IN ACCOUNT.—If the individual elects 
CSRS-Offset coverage, the amount in the employee's Thrift 
Savings Fund account under subchapter III of chapter 84 
of title 5, United States Code, on the date of retirement 
that 
represents 
the 
Government's 
contributions 
and 
earnings on those contributions (whether or not such 
amount was subsequently distributed from the Thrift 
Savings Fund) will form the basis for a reduction in the 
individual's annuity, under regulations prescribed by the 
Office. 
(B) REDUCTION.—The reduced annuity to which the 
individual is entitled shall be equal to an amount which, 
when taken together with the amount referred to in 
PUBLIC LAW 106-265—SEPT. 19, 2000 
114 STAT. 775 
subparagraph (A), would result in the present value of 
the total being actuarially equivalent to the present value 
of an unreduced CSRS-OfFset annuity that would have 
been provided the individual. 
(4) REDUCED BENEFIT.—If— 
(A) a surviving spouse elects CSRS-Offset benefits; and 
(B) a FERS basic employee death benefit under section 
8442(b) of title 5, United States Code, was previously paid, 
then the survivor's CSRS-Offset benefit shall be subject to 
a reduction, under regulations prescribed by the Office. The 
reduced annuity to which the individual is entitled shall be 
equal to an amount which, when taken together with the 
amount of the pajment referred to under subparagraph (B) 
would result in the present value of the total being actuarially 
equivalent to the present value of an unreduced CSRS-Offset 
annuity that would have been provided the individual. 
(5) PREVIOUS SETTLEMENT PAYMENT.—^An individual who 
previously received a pajnnent ordered by a court or provided 
as a settlement of claim for losses resulting from a retirement 
coverage error may not make an election under this subsection 
unless repa3anent of that amount is waived in whole or in 
part under section 2208, and any amount not waived is repaid. 
(c) NONELECTION.—If the individual does not make an election 
under subsection (b) before any time limitation under this section, 
the retirement coverage shall be subject to the following rules: 
(1) CORRECTIVE ACTION PREVIOUSLY TAKEN.—If corrective 
action was taken before the end of any time limitation under 
this section, that corrective action shall remain in effect. 
(2) CORRECTIVE ACTION NOT PREVIOUSLY TAKEN.—If correc-
tive action was not taken before such time limitation, the 
employee shall be CSRS-Offset covered, retroactive to the date 
of the retirement coverage error. 
CHAPTER 2—EMPLOYEE WHO SHOULD HAVE BEEN 
FERS COVERED, CSRS-OFFSET COVERED, OR CSRS 
COVERED, 
BUT 
WHO WAS 
ERRONEOUSLY SOCIAL 
SE-
CURITY-ONLY 
COVERED 
INSTEAD 
SEC. 2111. APPLICABILITY. 
5 USC 8331 note. 
This chapter shall apply in the case of any employee who— 
(1) should be (or should have been) FERS covered but, 
as a result of a retirement coverage error, is (or was) Social 
Security-Only covered instead; 
(2) should be (or should have been) CSRS-Offset covered 
but, as a result of a retirement coverage error, is (or was) 
Social Security-Only covered instead; or 
(3) should be (or should have been) CSRS covered but, 
as a result of a retirement coverage error, is (or was) Social 
Security-Only covered instead. 
SEC. 2112. CORRECTION MANDATORY. 
5 USC 8331 note. 
(a) UNCORRECTED ERROR.—If the retirement coverage error 
has not been corrected, as soon as practicable after discovery of 
the error, such individual shall be covered under the correct retire-
ment coverage, effective as of the date of the retirement coverage 
error. 
114 STAT. 776 
PUBLIC LAW 106-265—SEPT. 19, 2000 
(b) CORRECTED ERROR.—If the retirement coverage error has 
been corrected, the corrective action previously taken shall remain 
in effect. 
CHAPTER 3—EMPLOYEE WHO SHOULD OR COULD HAVE 
BEEN SOCIAL SECURITY-ONLY COVERED BUT WHO 
WAS ERRONEOUSLY CSRS-OFFSET COVERED OR CSRS 
COVERED INSTEAD 
5 use 8331 note. 
SEC. 2121. EMPLOYEE WHO SHOULD BE SOCIAL SECURITY-ONLY COV-
ERED, BUT WHO IS ERRONEOUSLY CSRS OR CSRS-OFFSET 
COVERED INSTEAD. 
(a) APPLICABILITY.—^This section applies in the case of a retire-
ment coverage error in which a Social Security-Only covered 
employee was erroneously CSRS covered or CSRS-Offset covered. 
(b) UNCORRECTED ERROR.— 
(1) APPLICABILITY.—^This subsection applies if the retire-
ment coverage error has not been corrected before the effective 
date of the regulations described in paragraph (3). 
(2) COVERAGE.—In the case of an individual who is erro-
neously CSRS covered, as soon as practicable after discovery 
of the error, and subject to the right of an election under 
paragraph (3), such individual shall be CSRS-Offset covered, 
effective as of the date of the retirement coverage error. 
(3) ELECTION.— 
(A) IN GENERAL.—Upon written notice of a retirement 
coverage error, an individual may elect to be CSRS-Offset 
covered or Social Security-Only covered, effective as of the 
Deadline. 
date of the retirement coverage error. Such election shall 
be made not later than 180 days after the date of receipt 
of such notice. 
(B) NONELECTION.—If the individual does not make 
an election before the date provided under subparagraph 
(A), the individual shall remain CSRS-Offset covered. 
(C) REGULATIONS.—^The Office shall prescribe regula-
tions to carry out this paragraph. 
(c) CORRECTED ERROR.— 
(1) APPLICABILITY.—^This subsection applies if the retire-
ment coverage error was corrected before the effective date 
of the regulations described under subsection (b)(3). 
Deadline. 
(2) ELECTION.—^Not later than 180 days after the date 
Regulations. 
of the enactment of this Act, the Office shall prescribe regula-
tions authorizing individuals to elect, during the 18-month 
period immediately following the effective date of such regula-
tions, to be CSRS-Offset covered or Social Security-Only cov-
ered, effective as of the date of the retirement coverage error. 
(3) NONELECTION.—If an eligible individual does not make 
an election under paragraph (2) before the end of any time 
limitation under this subsection, the corrective action taken 
before such time limitation shall remain in effect. 
PUBLIC LAW 106-265—SEPT. 19, 2000 
114 STAT. 777 
CHAPTER 4—EMPLOYEE WHO WAS ERRONEOUSLY FERS 
COVERED 
SEC. 2131. EMPLOYEE WHO SHOULD BE SOCLU. SECURITY-ONLY COV- 
5 USC 8331 note. 
ERED, CSRS COVERED, OR CSRS-OFFSET COVERED AND 
IS NOT FERS-ELIGIBLE, BUT WHO IS ERRONEOUSLY FERS 
COVERED INSTEAD. 
(a) APPLICABILITY.—^This section applies in the case of a retire-
ment coverage error in which a Social Security-Only covered, CSRS 
covered, or CSRS-Offset covered employee not eligible to elect FERS 
coverage under authority of section 8402(c) of title 5, United States 
Code, was erroneously FERS covered. 
(b) UNCORRECTED ERROR.— 
(1) APPLICABILITY.—^This subsection applies if the retire-
ment coverage error has not been corrected before the effective 
date of the regulations described in paragraph (2). 
(2) COVERAGE.— 
(A) ELECTION.— 
(i) IN GENERAL.—^Upon written notice of a retire-
ment coverage error, an individual may elect to remain 
FERS covered or to be Social Security-Only covered, 
CSRS covered, or CSRS-Offset covered, as would have 
applied in the absence of the erroneous retirement 
coverage determination, effective as of the date of the 
retirement coverage error. Such election shall be made Deadline, 
not later than 180 days after the date of receipt of 
such notice. 
(ii) TREATMENT OF FERS ELECTION.—An election 
of FERS coverage under this subsection is deemed 
to be an election under section 301 of the Federal 
Employees Retirement System Act of 1986 (5 U.S.C. 
8331 note; Pubhc Law 99-335; 100 Stat. 599). 
(B) NONELECTION.—If the individual does not make 
an election before the date provided under subparagraph 
(A), the individual shall remain FERS covered, effective 
as of the date of the retirement coverage error. 
(3) EMPLOYEE CONTRIBUTIONS IN THRIFT SAVINGS FUND.— 
If under this section, an individual elects to be Social Security-
Only covered, CSRS covered, or CSRS-Offset covered, all 
employee contributions to the Thrift Savings Fund made during 
the period of erroneous FERS coverage (and all earnings on 
such contributions) may remain in the Thrift Savings Fund 
in accordance with regulations prescribed by the Executive 
Director, notwithstanding any limit under section 8351 or 8432 
of title 5, United States Code. 
(4) REGULATIONS.—Except as provided under paragraph 
(3), the Office shall prescribe regulations to carry out this 
subsection. 
(c) CORRECTED ERROR.— 
(1) APPLICABILITY.—^This subsection applies if the retire-
ment coverage error was corrected before the effective date 
of the regulations described under paragraph (2). 
(2) ELECTION.—^Not later than 180 days after the date Deadline, 
of the enactment of this Act, the Office shall prescribe regula- Regulations, 
tions authorizing individuals to elect, during the 18-month 
period immediately following the effective date of such regula-
tions to remain Social Security-Only covered, CSRS covered. 
114 STAT. 778 
PUBLIC LAW 106-265—SEPT. 19, 2000 
or CSRS-Offset covered, or to be FERS covered, effective as 
of the date of the retirement coverage error. 
(3) NONELECTION.—If an eligible individual does not make 
an election under paragraph (2), the corrective action taken 
before the end of any time limitation under this subsection 
shall remain in effect. 
(4) TREATMENT OF FERS ELECTION.—^An election of FERS 
coverage under this subsection is deemed to be an election 
under section 301 of the Federal Employees Retirement System 
Act of 1986 (5 U.S.C. 8331 note; Public Law 99-335; 100 Stat. 
599). 
5 u s e 8331 note. 
SEC. 2132. FERS-ELIGIBLE EMPLOYEE WHO SHOULD HAVE BEEN CSRS 
COVERED, CSRS-OFFSET COVERED, OR SOCIAL SECU-
RITY-ONLY COVERED, BUT WHO WAS ERRONEOUSLY 
FERS COVERED INSTEAD WITHOUT AN ELECTION. 
(a) IN GENERAL.— 
(1) FERS ELECTION PREVENTED.—If an individual was pre-
vented from electing FERS coverage because the individual 
was erroneously FERS covered during the period when the 
individual was eligible to elect FERS under title III of the 
Federal Employees Retirement System Act or the Federal 
Employees' Retirement System Open Enrollment Act of 1997 
(Public Law 105-61; 111 Stat. 1318 et seq.), the individual— 
(A) is deemed to have elected FERS coverage; and 
(B) shall remain covered by FERS, unless the indi-
vidual declines, under regulations prescribed by the Office, 
to be FERS covered. 
(2) DECLINING FERS COVERAGE.—If an individual described 
under paragraph (1)(B) declines to be FERS covered, such indi-
vidual shall be CSRS covered, CSRS-Offset covered, or Social 
Security-Only covered, as would apply in the absence of a 
FERS election, effective as of the date of the erroneous retire-
ment coverage determination. 
(b) EMPLOYEE CONTRIBUTIONS IN THRIFT SAVINGS FUND.—If 
under this section, an individual declines to be FERS covered and 
instead is Social Security-Only covered, CSRS covered, or CSRS-
Offset covered, as would apply in the absence of a FERS election, 
all employee contributions to the Thrift Savings Fund made during 
the period of erroneous FERS coverage (and all earnings on such 
contributions) may remain in the Thrift Savings Fund in accordance 
with regulations prescribed by the Executive Director, notwith-
standing any limit under title 5, United States Code, that would 
otherwise be applicable. 
(c) INAPPLICABILITY OF DURATION OF ERRONEOUS COVERAGE.— 
This section shall apply regardless of the length of time the erro-
neous coverage determination remained in effect. 
5 u s e 8331 note. 
SEC. 2133. RETROACTIVE EFFECT. 
Effective date. 
This chapter shall be effective as of January 1, 1987, except 
that section 2132 shall not apply to individuals who made or were 
deemed to have made elections similar to those provided in this 
section under regulations prescribed by the Office before the effec-
tive date of this title. 
PUBLIC LAW 106-265—SEPT. 19, 2000 
114 STAT. 779 
CHAPTER 5—EMPLOYEE WHO SHOULD HAVE 
BEEN 
CSRS-OFFSET 
COVERED, 
BUT 
WHO 
WAS 
ERRO-
NEOUSLY CSRS COVERED INSTEAD 
SEC, 2141. APPLICABILITY. 
5 USC 8331 note. 
This chapter shall apply in the case of any employee who 
should be (or should have been) CSRS-Offset covered but, as a 
result of a retirement coverage error, is (or was) CSRS covered 
instead. 
SEC. 2142. CORRECTION MANDATORY. 
5 USC 8331 note. 
(a) UNCORRECTED ERROR.—If the retirement coverage error 
has not been corrected, as soon as practicable after discovery of 
the error, such individual shall be covered under the correct retire-
ment coverage, effective as of the date of the retirement coverage 
error. 
(b) CORRECTED ERROR.—If the retirement coverage error has 
been corrected before the effective date of this title, the corrective 
action taken before such date shall remain in effect. 
CHAPTER 6—EMPLOYEE WHO SHOULD HAVE BEEN 
CSRS 
COVERED, 
BUT 
WHO WAS 
ERRONEOUSLY 
CSRS-
OFFSET 
COVERED 
INSTEAD 
SEC. 2151. APPLICABILITY. 
5 USC 8331 note. 
This chapter shall apply in the case of any employee who 
should be (or should have been) CSRS covered but, as a result 
of a retirement coverage error, is (or was) CSRS-Offset covered 
instead. 
SEC. 2152. CORRECTION MANDATORY. 
5 USC 8331 note. 
(a) UNCORRECTED ERROR.—If the retirement coverage error 
has not been corrected, as soon as practicable after discovery of 
the error, such individual shall be covered under the correct retire-
ment coverage, effective as of the date of the retirement coverage 
error. 
(b) CORRECTED ERROR.—If the retirement coverage error has 
been corrected before the effective date of this title, the corrective 
action taken before such date shall remain in effect. 
Subtitle B—General Provisions 
SEC. 2201. IDENTIFICATION AND NOTIFICATION REQUIREMENTS. 
5 USC 8331 note. 
Government agencies shall take all such measures as may 
be reasonable and appropriate to promptly identify and notify 
individuals who are (or have been) affected by a retirement coverage 
error of their rights under this title. 
SEC. 2202. INFORMATION TO BE FURNISHED TO AND BY AUTHORITIES 
5 USC 8331 note. 
ADMINISTERING THIS TITLE. 
(a) APPLICABILITY.—^The authorities identified in this subsection 
are— 
(1) the Director of the Office of Personnel Management; 
(2) the Commissioner of Social Security; and 
(3) the Executive Director of the Federal Retirement Thrift 
Investment Board. 
114 STAT. 780 
PUBLIC LAW 106-265—SEPT. 19, 2000 
(b) AUTHORITY TO OBTAIN INFORMATION.—Each 
authority 
identified in subsection (a) may secure directly from any department 
or agency of the United States information necessary to enable 
such authority to carry out its responsibilities under this title. 
Upon request of the authority involved, the head of the department 
or agency involved shall furnish that information to the requesting 
authority. 
(c) AUTHORITY To PROVIDE INFORMATION.—Each authority 
identified in subsection (a) may provide directly to any department 
or agency of the United States all information such authority 
believes necessary to enable the department or agency to carry 
out its responsibilities under this title. 
(d) LIMITATION; SAFEGUARDS.—Each of the respective authori-
ties under subsection (a) shall— 
(1) request or provide only such information as that 
authority considers necessary; and 
(2) establish, by regulation or otherwise, appropriate safe-
guards to ensure that any information obtained under this 
section shall be used only for the purpose authorized. 
5 u s e 8331 note. 
SEC. 2203. SERVICE CREDIT DEPOSITS. 
(a) CSRS DEPOSIT.—In the case of a retirement coverage error 
in which— 
(1) a FERS covered employee was erroneously CSRS cov-
ered or CSRS-Offset covered; 
(2) the employee made a service credit deposit under the 
CSRS rules; and 
(3) there is a subsequent retroactive change to FERS cov-
erage, 
the excess of the amount of the CSRS civilian or military service 
credit deposit over the FERS civilian or military service credit 
deposit, together with interest computed in accordance with para-
graphs (2) and (3) of section 8334(e) of title 5, United States Code, 
and regulations prescribed by the Office, shall be paid to the 
employee, the annuitant or, in the case of a deceased employee, 
to the individual entitled to lump-sum benefits under section 
8424(d) of title 5, United States Code. 
(b) FERS DEPOSIT.— 
(1) APPLICABILITY.—^This subsection applies in the case of 
an erroneous retirement coverage determination in which— 
(A) the employee owed a service credit deposit under 
section 8411(f) of title 5, United States Code; and 
(B)(i) there is a subsequent retroactive change to CSRS 
or CSRS-Offset coverage; or 
(ii) the service becomes creditable under chapter 83 
of title 5, United States Code. 
(2) REDUCED ANNUITY.— 
Regulations. 
(A) IN GENERAL.—If at the time of commencement of 
an annuity there is remaining unpaid CSRS civilian or 
military service credit deposit for service described under 
paragraph (1), the annuity shall be reduced based upon 
the amount unpaid together with interest computed in 
accordance with section 8334(e)(2) and (3) of title 5, United 
States Code, and regulations prescribed by the Office. 
(B) AMOUNT.—^The reduced annuity to which the indi-
vidual is entitled shall be equal to an amount that, when 
PUBLIC LAW 106-265—SEPT. 19, 2000 
114 STAT. 781 
taken together with the amount referred to under subpara-
graph (A), would result in the present value of the total 
being actuarially equivalent to the present value of the 
unreduced annuity benefit that would have been provided 
the individual. 
(3) SURVIVOR ANNUITY.— 
(A) IN GENERAL.—If at the time of commencement of 
a survivor annuity, there is remaining unpaid any CSRS 
service credit deposit described under paragraph (1), and 
there has been no actuarial reduction in an annuity under 
paragraph (2), the survivor annuity shall be reduced based 
upon the amount unpaid together with interest computed 
in accordance with section 8334(e)(2) and (3) of title 5, 
United States Code, and regulations prescribed by the 
Office. 
(B) AMOUNT.—^The reduced survivor annuity to which 
the individual is entitled shall be equal to an amount 
that, when taken together with the amount referred to 
under subparagraph (A), would result in the present value 
of the total being actuarially equivalent to the present 
value of an unreduced survivor annuity benefit that would 
have been provided the individual. 
SEC. 2204. PROVISIONS RELATED TO SOCIAL SECURITY COVERAGE 
5 USC 8331 note. 
OF MISCLASSIFIED EMPLOYEES. 
(a) DEFINITIONS.—In this section, the term— 
(1) "covered individual" means any employee, former 
employee, or annuitant who— 
(A) is or was employed erroneously subject to CSRS 
coverage as a result of a retirement coverage error; and 
(B) is or was retroactively converted to CSRS-offset 
coverage, FERS coverage, or Social Security-Only coverage; 
and 
(2) "excess CSRS deduction amount" means an amount 
equal to the difference between the CSRS deductions withheld 
and the CSRS-Offset or FERS deductions, if any, due with 
respect to a covered individual during the entire period the 
individual was erroneously subject to CSRS coverage as a result 
of a retirement coverage error. 
(b) REPORTS TO COMMISSIONER OF SOCIAL SECURITY.— 
(1) IN GENERAL.—In order to carry out the Commissioner 
of Social Security's responsibilities under title II of the Social 
Security Act, the Commissioner may request the head of each 
agency that employs or employed a covered individual to report 
(in coordination with the Office of Personnel Management) in 
such form and within such timeframe as the Commissioner 
may specify, any or all of— 
(A) the total wages (as defined in section 3121(a) of 
the Internal Revenue Code of 1986) paid to such individual 
during each year of the entire period of the erroneous 
CSRS coverage; and 
(B) such additional information as the Commissioner 
may require for the purpose of carrying out the Commis-
sioner's responsibilities under title II of the Social Security 
Act (42 U.S.C. 401 et seq.). 
114 STAT. 782 
PUBLIC LAW 106-265—SEPT. 19, 2000 
(2) COMPLIANCE.—The head of an agency or the Office 
shall comply v/ith a request from the Commissioner under 
paragraph (1). 
(3) WAGES.—For purposes of section 201 of the Social Secu-
rity Act (42 U.S.C. 401), wages reported under this subsection 
shall be deemed to be wages reported to the Secretary of 
the Treasury or the Secretary's delegates pursuant to subtitle 
F of the Internal Revenue Code of 1986. 
(c) PAYMENT RELATING TO O A S D I 
EMPLOYEE TAXES.—The 
Office shall transfer from the Civil Service Retirement and Dis-
ability Fund to the General Fund of the Treasury an amount 
equal to the lesser of the excess CSRS deduction amount or the 
OASDI taxes due for covered individuals (as adjusted by amounts 
transferred relating to applicable OASDI employee taxes as a result 
of corrections made, including corrections made before the date 
of the enactment of this Act). If the excess CSRS deductions exceed 
the OASDI taxes, any difference shall be paid to the covered indi-
vidual or survivors, as appropriate. 
(d) PAYMENT OF OASDI EMPLOYER TAXES.— 
(1) IN GENERAL.—Each employing agency shall pay an 
amount equal to the OASDI employer taxes owed with respect 
to covered individuals during the applicable period of erroneous 
coverage (as adjusted by amounts transferred for the payment 
of such taxes as a result of corrections made, including correc-
tions made before the date of the enactment of this Act). 
(2) PAYMENT.—^Amounts paid under this subsection shall 
be determined subject to any limitation under section 6501 
of the Internal Revenue Code of 1986. 
5 use 8331 note. 
SEC. 2205. THRIFT SAVINGS PLAN TREATMENT FOR CERTAIN INDIVID-
UALS. 
(a) APPLICABILITY.—^This section applies to an individual who— 
(1) is eligible to make an election of coverage under section 
2101 or 2102, and only if FERS coverage is elected (or remains 
in effect) for the employee involved; or 
(2) is described in section 2111, and makes or has made 
retroactive employee contributions to the Thrift Savings Fund 
under regulations prescribed by the Executive Director. 
(b) PAYMENT INTO THRIFT SAVINGS FUND.— 
(1) I N GENERAL.— 
(A) PAYMENT.—^With respect to an individual to whom 
this section applies, the employing agency shall pay to 
the Thrift Savings Fund under subchapter III of chapter 
84 of title 5, United States Code, for credit to the account 
of the employee involved, an amount equal to the earnings 
which are disallowed under section 8432a(a)(2) of such 
title on the employee's retroactive contributions to such 
Fund. 
(B) AMOUNT.—Earnings under subparagraph (A) shall 
be computed in accordance with the procedures for com-
puting lost earnings under section 8432a of title 5, United 
States Code. The amount paid by the employing agency 
shall be treated for all purposes as if that amount had 
actually been earned on the basis of the employee's con-
tributions. 
(C) EXCEPTIONS.—If an individual made retroactive 
contributions before the effective date of the regulations 
PUBLIC LAW 106-265—SEPT. 19, 2000 
114 STAT. 783 
under section 2101(c), the Director may provide for an 
alternative calculation of lost earnings to the extent that 
a calculation under subparagraph (B) is not administra-
tively feasible. The alternative calculation shall yield an 
amount that is as close as practicable to the amount com-
puted 
under 
subparagraph (B), taking into 
account 
earnings previously paid. 
(2) ADDITIONAL EMPLOYEE CONTRIBUTION.—In cases in 
which the retirement coverage error was corrected before the 
effective date of the regulations under section 2101(c), the 
employee involved shall have an additional opportunity to make 
retroactive contributions for the period of the retirement cov-
erage error (subject to applicable limits), and such contributions 
(including any contributions made after the date of the correc-
tion) shall be treated in accordance with paragraph (1). 
(c) REGULATIONS.— 
(1) EXECUTIVE DIRECTOR.—The Executive Director shall 
prescribe regulations appropriate to carry out this section 
relating to retroactive employee contributions and payments 
made on or after the effective date of the regulations under 
section 2101(c). 
(2) OFFICE.—The Office, in consultation with the Federal 
Retirement Thrift Investment Board, shall prescribe regulations 
appropriate to carry out this section relating to the calculation 
of lost earnings on retroactive employee contributions made 
before the effective date of the regulations under section 
2101(c). 
SEC. 2206. CERTAIN AGENCY AMOUNTS TO BE PAID INTO OR REMAIN 
5 USC 8331 note. 
IN THE CSRDF. 
(a) CERTAIN EXCESS AGENCY CONTRIBUTIONS TO REMAIN IN 
THE CSRDF.— 
(1) IN GENERAL.—^Any amount described under paragraph 
(2) shall— 
(A) remain in the CSRDF; and 
(B) may not be paid or credited to an agency. 
(2) AMOUNTS.—Paragraph (1) refers to any amount of con-
tributions made by an agency under section 8423 of title 5, 
United States Code, on behalf of any employee, former 
employee, or annuitant (or survivor of such employee, former 
employee, or annuitant) who makes an election to correct a 
retirement coverage error under this title, that the Office deter-
mines to be excess as a result of such election. 
(b) ADDITIONAL EMPLOYEE RETIREMENT DEDUCTIONS TO B E 
PAID BY AGENCY.—If a correction in a retirement coverage error 
results in an increase in employee deductions under section 8334 
or 8422 of title 5, United States Code, that cannot be fully paid 
by a reallocation of otherwise available amounts 
previously 
deducted from the employee's pay as employment taxes or retire-
ment deductions, the employing agency— 
(1) shall pay the required additional amount into the 
CSRDF; and 
(2) shall not seek repa3anent of that amount from the 
employee, former employee, annuitant, or survivor. 
114 STAT. 784 
PUBLIC LAW 106-265—SEPT. 19, 2000 
5 u s e 8331 note. 
SEC. 2207. CSRS COVERAGE DETERMINATIONS TO BE APPROVED BY 
OPM. 
No agency shall place an individual under CSRS coverage 
unless— 
(1) the individual has been employed with CSRS coverage 
within the preceding 365 days; or 
(2) the Office has agreed in writing that the agenc5^s cov-
erage determination is correct. 
5 u s e 8331 note. 
SEC. 2208. DISCRETIONARY ACTIONS BY DIRECTOR. 
(a) IN GENERAL.—^The Director of the OfTice of Personnel 
Management may— 
(1) extend the deadlines for making elections under this 
title in circumstances involving an individual's inability to make 
a timely election due to a cause beyond the individual's control; 
(2) provide for the reimbursement of necessary and reason-
able expenses incurred by an individual with respect to settle-
ment of a claim for losses resulting from a retirement coverage 
error, including attome3^s fees, court costs, and other actual 
expenses; 
(3) compensate an individual for monetary losses that are 
a direct and proximate result of a retirement coverage error, 
excluding claimed losses relating to forgone contributions and 
earnings under the Thrift Savings Plan under subchapter III 
of chapter 84 of title 5, United States Code, and all other 
investment opportunities; and 
(4) waive payments required due to correction of a retire-
ment coverage error under this title. 
(b) SIMILAR ACTIONS.—In exercising the authority under this 
section, the Director shall, to the extent practicable, provide for 
similar actions in situations involving similar circumstances. 
(c) JUDICIAL REVIEW.—^Actions taken under this section are 
final and conclusive, and are not subject to administrative or judicial 
review. 
(d) REGULATIONS.—^The Office of Personnel Management shall 
prescribe regulations regarding the process and criteria used in 
exercising the authority under this section. 
Deadline. 
(e) REPORT.—^The Office of Personnel Management shall, not 
later than 180 days after the date of the enactment of this Act, 
and annually thereafter for each year in which the authority pro-
vided in this section is used, submit a report to each House of 
Congress on the operation of this section. 
5 u s e 8331 note. 
SEC. 2209. REGULATIONS. 
(a) IN GENERAL.—In addition to the regulations specifically 
authorized in this title, the Office may prescribe such other regula-
tions as are necessary for the administration of this title. 
(b) FORMER SPOUSE.—^The regulations prescribed under this 
title shall provide for protection of the rights of a former spouse 
with entitlement to an apportionment of benefits or to survivor 
benefits based on the service of the employee. 
PUBLIC LAW 106-265—SEPT. 19, 2000 
Subtitle C—Other Provisions 
114 STAT. 785 
SEC. 2301. PROVISIONS TO AUTHORIZE CONTINUED CONFORMITY OF 5 USC 8331 note. 
OTHER FEDERAL RETIREMENT SYSTEMS. 
(a) FOREIGN SERVICE.—Sections 827 and 851 of the Foreign Applicability. 
Service Act of 1980 (22 U.S.C. 4067 and 4071) shall apply with 
respect to this title in the same manner as if this title were 
part of— 
(1) the Civil Service Retirement System, to the extent 
this title relates to the Civil Service Retirement System; and 
(2) the Federal Employees' Retirement System, to the 
extent this title relates to the Federal Employees' Retirement 
System. 
(b) CENTRAL INTELLIGENCE AGENCY.—Sections 292 and 301 AppMcabiHty. 
of the Central Intelligence Agency Retirement Act (50 U.S.C. 2141 
and 2151) shall apply with respect to this title in the same manner 
as if this title were part of— 
(1) the Civil Service Retirement System, to the extent 
this title relates to the Civil Service Retirement System; and 
(2) the Federal Employees' Retirement System, to the 
extent this title relates to the Federal Employees' Retirement 
System. 
SEC. 2302. AUTHORIZATION OF PAYMENTS. 
5 USC 8331 note. 
All payments authorized or required by this title to be paid 
from the Civil Service Retirement and Disability Fund, together 
with administrative expenses incurred by the Office in admin-
istering this title, shall be deemed to have been authorized to 
be paid from that Fund, which is appropriated for the payment 
thereof. 
SEC. 2303. INDIVIDUAL RIGHT OF ACTION PRESERVED FOR AMOUNTS 
NOT OTHERWISE PROVIDED FOR UNDER THIS TITLE. 
5 USC 8331 note. 
Nothing in this title shall preclude an individual from bringing 
a claim against the Government of the United States which such 
individual may have under section 1346(b) or chapter 171 of title 
28, United States Code, or any other provision of law (except 
to the extent the claim is for any amounts otherwise provided 
for under this title). 
114 STAT. 786 
PUBLIC LAW 106-265—SEPT. 19, 2000 
Subtitle D—Effective Date 
5 u s e 8331 note. 
SEC. 2401. EFFECTIVE DATE. 
Except as otherwise provided in this title, this title shall take 
effect on the date of the enactment of this Act. 
Approved September 19, 2000. 
LEGISLATIVE HISTORY—H.R. 4040 (S. 2420): 
HOUSE REPORTS: No. 106-610, Pt. 1 (Comm. on Government Reform). 
SENATE REPORTS: No. 106-344 accompanying S. 2420 (Comm. on Governmental 
Affairs). 
CONGRESSIONAL RECORD, Vol. 146 (2000): 
May 9, considered and passed House. 
July 25, considered and passed Senate, amended, in lieu of S. 2420. 
July 27, House concurred in Senate amendments with amendments. 
Senate concurred in House amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000): 
Sept. 19, Presidential remarks and statement.