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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.
Output:
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.