[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 995 Reported in House (RH)]

103d CONGRESS
  1st Session
                                H. R. 995

                      [Report No. 103-65, Part I]

 To amend title 38, United States Code, to improve reemployment rights 
 and benefits of veterans and other benefits of employment of certain 
       members of the uniformed services, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 18, 1993

  Mr. Montgomery (for himself, Mr. Stump, Mr. Penny, Mr. Smith of New 
   Jersey, Mr. Slattery, Mr. Clyburn, and Mr. Quinn) introduced the 
    following bill; which was referred jointly to the Committees on 
          Veterans' Affairs and Post Office and Civil Service

                             April 28, 1993

   Additional sponsors: Mr. Everett, Mr. Hefner, Mr. Richardson, Mr. 
 Stenholm, Mr. Payne of Virginia, Mr. Parker, Ms. Waters, Ms. Brown of 
                        Florida, and Mr. Bishop

                             April 28, 1993

   Reported from the Committee on Veterans' Affairs with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
  [For text of the introduced bill, see copy of bill as introduced on 
                           February 18, 1993]

_______________________________________________________________________

                                 A BILL


 
 To amend title 38, United States Code, to improve reemployment rights 
 and benefits of veterans and other benefits of employment of certain 
       members of the uniformed services, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Uniformed Services Employment and 
Reemployment Rights Act of 1993''.

SEC. 2. REVISION OF CHAPTER 43 OF TITLE 38.

    (a) Restatement and Improvement of Employment and Reemployment 
Rights.--Chapter 43 of title 38, United States Code, is amended to read 
as follows:

  ``CHAPTER 43--EMPLOYMENT AND REEMPLOYMENT RIGHTS OF MEMBERS OF THE 
                           UNIFORMED SERVICES

    ``SUBCHAPTER I--PURPOSES, RELATION TO OTHER LAW, AND DEFINITIONS

``Sec.
``4301. Purposes; sense of Congress.
``4302. Relation to other law and plans or agreements.
``4303. Definitions.

 ``SUBCHAPTER II--EMPLOYMENT AND REEMPLOYMENT RIGHTS AND LIMITATIONS; 
                              PROHIBITIONS

``4311. Discrimination against persons who serve in the uniformed 
                            services and acts of reprisal prohibited.
``4312. Reemployment rights of persons who serve in the uniformed 
                            services.
``4313. Reemployment positions.
``4314. Reemployment by the Federal Government.
``4315. Rights, benefits, and obligations of persons absent from 
                            employment for service in a uniformed 
                            service.
``4316. Employee pension benefit plans.
``4317. Character of service.

     ``SUBCHAPTER III--PROCEDURES FOR ASSISTANCE, ENFORCEMENT, AND 
                             INVESTIGATIONS

``4321. Assistance in obtaining employment or reemployment.
``4322. Enforcement of employment or reemployment rights.
``4323. Conduct of investigation; subpoenas.

               ``SUBCHAPTER IV--MISCELLANEOUS PROVISIONS

``4331. Regulations.
``4332. Reports.
``4333. Outreach.

    ``SUBCHAPTER I--PURPOSES, RELATION TO OTHER LAW, AND DEFINITIONS

``Sec. 4301. Purposes; sense of Congress
    ``(a) The purposes of this chapter are--
            ``(1) to encourage noncareer service in the uniformed 
        services by eliminating or minimizing the disadvantages to 
        civilian careers and employment which can result from such 
        service;
            ``(2) to minimize the disruption to the lives of persons 
        performing service in the uniformed services as well as to 
        their employers, their fellow employees, and their communities, 
        by providing for the prompt reemployment of such persons upon 
        their completion of such service under honorable conditions; 
        and
            ``(3) to prohibit discrimination against persons because of 
        their service in the uniformed services.
    ``(b) It is the sense of Congress that the Federal Government 
should be a model employer in carrying out the reemployment practices 
provided for in this chapter.
``Sec. 4302. Relation to other law and plans or agreements
    ``(a) Nothing in this chapter shall supersede, nullify, or diminish 
any Federal or State law (including any local law or ordinance) or any 
contract, practice, policy, agreement, plan, or other matter provided 
by an employer which establishes rights or benefits which are greater 
than or in addition to those provided in this chapter.
    ``(b) This chapter supersedes State laws (including any local law 
or ordinance), employer practices, policies, agreements, and plans, and 
other matters that reduce, limit, or eliminate in any manner rights or 
benefits provided by this chapter, including the establishment of 
additional prerequisites to the exercise of such rights.
``Sec. 4303. Definitions
    ``For the purposes of this chapter:
            ``(1) The term `Attorney General' means the Attorney 
        General of the United States or any person designated by the 
        Attorney General to carry out a responsibility of the Attorney 
        General under this chapter.
            ``(2) The term `benefit', `benefit of employment', or 
        `rights and benefits' means any aspect of the employment 
        relationship, other than wages or salary for work performed, 
        provided by contract or employer practice or custom, that 
        offers advantage, profit, privilege, gain, status, account, or 
        interest and includes, but is not limited to, pension plans and 
        payments, insurance coverage and awards, employee stock 
        ownership plans, bonuses, severance pay, supplemental 
        unemployment benefits, vacations, and selection of work hours 
        or locations of employment.
            ``(3) The term `employee' means any person employed by an 
        employer.
            ``(4)(A) Except as provided in subparagraphs (B) and (C), 
        the term `employer' means any person, institution, 
        organization, or other entity that pays salary or wages for 
        work performed or that has control over employment 
        opportunities, including--
                    ``(i) a person, institution, organization, or other 
                entity to whom the employer has delegated the 
                performance of employment-related responsibilities;
                    ``(ii) the Federal Government;
                    ``(iii) a State;
                    ``(iv) any successor in interest to a person, 
                institution, organization, or other entity referred to 
                in this subparagraph; and
                    ``(v) a person, institution, organization, or other 
                entity that has denied initial employment in violation 
                of section 4311.
            ``(B) In the case of a National Guard technician employed 
        under section 709 of title 32, the term `employer' means the 
        adjutant general of the State in which the technician is 
        employed.
            ``(C) Except as an actual employer of employees, an 
        employee pension benefit plan described in section 3(2) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1002(2)) shall be deemed to be an employer only with respect to 
        the obligation to provide benefits described in section 4316.
            ``(5) The term `Federal Government' includes the executive 
        branch, the judicial branch, and the legislative branch, with 
        the executive branch including--
                    ``(A) any department, administration, agency, 
                commission, board, or independent establishment in, or 
                other part of, the executive branch (including any 
                executive agency as defined in section 105 of title 5);
                    ``(B) the United States Postal Service and the 
                Postal Rate Commission;
                    ``(C) any nonappropriated fund activity of the 
                United States; and
                    ``(D) any corporation wholly owned by the United 
                States.
            ``(6) The term `health plan' means an insurance policy or 
        contract, medical or hospital service agreement, membership or 
        subscription contract, or other arrangement under which health 
        services for individuals are provided or the expenses of such 
        services are paid.
            ``(7) The term `notice' means (with respect to subchapter 
        II) any written or verbal notification of an obligation or 
        intention to perform service in the uniformed services provided 
        to an employer by the employee who will perform such service or 
        by the uniformed service in which such service is to be 
        performed.
            ``(8) The term `other than a temporary position' means a 
        position of employment as to which there is a reasonable 
        expectation that it will continue indefinitely.
            ``(9) The term `qualified' means having the ability to 
        perform the essential tasks of an employment position.
            ``(10) The term `reasonable efforts' means actions, 
        including training provided by an employer, that do not create 
        an undue hardship on the employer.
            ``(11) Notwithstanding section 101, the term `Secretary' 
        means the Secretary of Labor or any person designated by such 
        Secretary to carry out an activity under this chapter.
            ``(12) The term `seniority' means longevity in employment 
        together with any benefits of employment which accrue with, or 
        are determined by, longevity in employment.
            ``(13) The term `service in the uniformed services' means 
        the performance of duty on a voluntary or involuntary basis in 
        a uniformed service under competent authority and includes 
        active duty, active duty for training, initial active duty for 
        training, inactive duty training, full-time National Guard 
        duty, and a period for which a person is absent from a position 
        of employment for the purpose of an examination to determine 
        the fitness of the person to perform any such duty.
            ``(14) The term `State' means each of the several States of 
        the United States, the District of Columbia, the Commonwealth 
        of Puerto Rico, Guam, the Virgin Islands, and other territories 
        of the United States (including the agencies and political 
        subdivisions thereof).
            ``(15)(A) The term `undue hardship' means an action 
        requiring significant difficulty or expense, when considered in 
        light of the factors set forth in subparagraph (B).
            ``(B) In determining whether an action would impose an 
        undue hardship on an employer, factors to be considered 
        include--
                    ``(i) the nature and cost of the action needed 
                under this chapter;
                    ``(ii) the overall financial resources of the 
                facility or facilities involved in the provision of the 
                action; the number of persons employed at such 
                facility; the effect on expenses and resources, or the 
                impact otherwise of such action upon the operation of 
                the facility;
                    ``(iii) the overall financial resources of the 
                employer; the overall size of the business of an 
                employer with respect to the number of its employees; 
                the number, type, and location of its facilities; and
                    ``(iv) the type of operation or operations of the 
                employer, including the composition, structure, and 
                functions of the work force of such employer; the 
                geographic separateness, administrative, or fiscal 
                relationship of the facility or facilities in question 
                to the employer.
            ``(16) The term `uniformed services' means the Armed 
        Forces, the Army National Guard and the Air National Guard when 
        engaged in active duty for training, inactive duty training, or 
        full-time National Guard duty, the commissioned corps of the 
        Public Health Service, and any other category of persons 
        designated by the President in time of war or emergency.

 ``SUBCHAPTER II--EMPLOYMENT AND REEMPLOYMENT RIGHTS AND LIMITATIONS; 
                              PROHIBITIONS

``Sec. 4311. Discrimination against persons who serve in the uniformed 
              services and acts of reprisal prohibited
    ``(a) A person who is a member of, applies to be a member of, 
performs, has performed, applies to perform, or has an obligation to 
perform service in a uniformed service shall not be denied initial 
employment, reemployment, retention in employment, promotion, or any 
benefit of employment by an employer on the basis of that membership, 
application for membership, service, application for service, or 
obligation.
    ``(b) An employer shall be considered to have denied a person 
initial employment, reemployment, retention in employment, promotion, 
or a benefit of employment in violation of this section if the person's 
membership, application for membership, service, application for 
service, or obligation for service in the uniformed services is a 
motivating factor in the employer's action, unless the employer can 
demonstrate that the action would have been taken in the absence of 
such membership, application for membership, service, application for 
service, or obligation.
    ``(c)(1) An employer may not discriminate in employment against or 
take any adverse employment action against any person because such 
person has taken an action to enforce a protection afforded any person 
under this chapter, has testified or otherwise made a statement in or 
in connection with any proceeding under this chapter, has assisted or 
otherwise participated in an investigation under this chapter, or has 
exercised a right provided for in this chapter.
    ``(2) The prohibition in paragraph (1) shall apply with respect to 
a person regardless of whether that person has performed service in the 
uniformed services.
``Sec. 4312. Reemployment rights of persons who serve in the uniformed 
              services
    ``(a) Subject to subsections (b), (c), and (d) and to section 4317, 
any person who is absent from a position of employment (other than a 
temporary position) by reason of service in the uniformed services 
shall be entitled to the reemployment rights and benefits and other 
employment benefits of this chapter if--
            ``(1) the person (or an appropriate officer of the 
        uniformed service in which such service is performed) has given 
        advance written or verbal notice of such service to such 
        person's employer;
            ``(2) except as provided in subsection (c), the cumulative 
        length of the absence and of all previous absences from a 
        position of employment with that employer by reason of service 
        in the uniformed services does not exceed five years; and
            ``(3) except as provided in subsection (f), the person 
        reports to, or submits an application for reemployment to, such 
        employer in accordance with the provisions of subsection (e).
    ``(b) No notice is required under subsection (a)(1) if the giving 
of such notice is precluded by military necessity or, under all of the 
relevant circumstances, the giving of such notice is otherwise 
impossible or unreasonable. A determination of military necessity for 
the purposes of this subsection shall be made pursuant to regulations 
prescribed by the Secretary of Defense and shall not be subject to 
judicial review.
    ``(c) Subsection (a) shall apply if such person's cumulative period 
of service in the uniformed services, with respect to the employer 
relationship for which a person seeks reemployment, does not exceed 
five years, except that any such period of service shall not include 
any service--
            ``(1) that is required, beyond five years, to complete an 
        initial period of obligated service;
            ``(2) during which such person was unable to obtain orders 
        releasing such person from a period of service in the uniformed 
        services before the expiration of such five-year period and 
        such inability was through no fault of such person;
            ``(3) performed as required pursuant to section 270 of 
        title 10, under section 502(a) or 503 of title 32, or to 
        fulfill additional training requirements determined and 
        certified in writing by the Secretary concerned to be necessary 
        for professional development or for completion of skill 
        training or retraining; or
            ``(4) performed by a member of a uniformed service who is--
                    ``(A) ordered to or retained on active duty under 
                section 672(a), 672(g), 673, 673b, 673c, or 688 of 
                title 10;
                    ``(B) ordered to or retained on active duty (other 
                than for training) under any provision of law during a 
                war or during a national emergency declared by the 
                President or the Congress;
                    ``(C) ordered to active duty (other than for 
                training) in support, as determined by the Secretary 
                concerned, of an operational mission for which 
                personnel have been ordered to active duty under 
                section 673b of title 10;
                    ``(D) ordered to active duty in support, as 
                determined by the Secretary concerned, of a critical 
                mission or requirement of the uniformed services; or
                    ``(E) called into Federal service as a member of 
                the National Guard under chapter 15 of title 10 or 
                under section 3500 or 8500 of title 10.
    ``(d)(1) An employer is not required to reemploy a person under 
this chapter if--
            ``(A) the employer's circumstances have so changed as to 
        make such reemployment impossible or unreasonable, or
            ``(B) in the case of a person entitled to reemployment 
        under section 4313 (a)(3), (a)(4), or (b)(2)(B), such 
        employment would impose an undue hardship on the operation of 
        the employer.
    ``(2) In any administrative or judicial proceeding involving an 
issue of whether--
            ``(A) any reemployment referred to in paragraph (1) is 
        impossible or unreasonable because of a change in an employer's 
        circumstances, or
            ``(B) any accommodation, training, or effort referred to in 
        section 4313 (a)(3), (a)(4), or (b)(2)(B) would impose an undue 
        hardship on the operation of the business of the employer,
the employer shall have the burden of proving the impossibility or 
unreasonableness or undue hardship.
    ``(e)(1) Subject to paragraph (2), a person referred to in 
subsection (a) shall, upon the completion of a period of service in the 
uniformed services, notify the employer referred to in such subsection 
of the person's intent to return to a position of employment with such 
employer as follows:
            ``(A) In the case of a person whose period of service in 
        the uniformed services was less than 31 days, by reporting to 
        the employer--
                    ``(i) not later than the beginning of the first 
                full regularly scheduled work period on the first full 
                calendar day following the completion of the period of 
                service and the expiration of eight hours after a 
                period allowing for the safe transportation of the 
                person from the place of that service to the person's 
                residence; or
                    ``(ii) as soon as possible after the expiration of 
                the eight-hour period referred to in clause (i), if 
                reporting within the period referred to in such clause 
                is impossible or unreasonable through no fault of the 
                person.
            ``(B) In the case of a person who is absent from a position 
        of employment for a period of any length for the purposes of an 
        examination to determine the person's fitness to perform 
        service in the uniformed services, by reporting in the manner 
        and time referred to in subparagraph (A).
            ``(C) In the case of a person whose period of service in 
        the uniformed services was for more than 30 days but less than 
        181 days, by submitting an application for reemployment with 
        the employer not later than 14 days after the completion of the 
        period of service or as soon as possible after such 14-day 
        period if submitting such application within such period is 
        impossible or unreasonable through no fault of the person.
            ``(D) In the case of a person whose period of service in 
        the uniformed services was for more than 180 days, by 
        submitting an application for reemployment with the employer 
        not later than 90 days after the completion of the period of 
        service or as soon as possible after such 90-day period if 
        submitting such application within such period is impossible or 
        unreasonable through no fault of the person.
    ``(2)(A) A person who is hospitalized for, or convalescing from, an 
illness or injury incurred in, or aggravated by, the performance of a 
period of service in the uniformed services shall, at the end of the 
period that is necessary for the person to recover from such illness or 
injury submit an application for reemployment with such employer. Such 
period of recovery may not exceed two years, except as provided in 
subparagraph (B).
    ``(B) Such two-year period shall be extended by the minimum time 
required to accommodate the circumstances beyond such person's control 
which make reporting within the time limit specified in subparagraph 
(A) impossible or unreasonable.
    ``(f) A person who fails to report for employment or reemployment 
within the time limits specified in subsection (e) does not 
automatically forfeit such person's right under subsection (a) but 
shall be subject to the conduct rules, established policy, and general 
practices of the employer pertaining to explanations and discipline 
with respect to absence from scheduled work.
    ``(g)(1) A person who submits an application for reemployment in 
accordance with subparagraph (C) or (D) of subsection (e)(1) or 
subsection (e)(2) shall provide to the person's employer (upon the 
request of such employer) documentation to establish that--
            ``(A) the person's application is timely;
            ``(B) the person has not exceeded the service limitations 
        set forth in subsection (a)(2) (except as permitted under 
        subsection (c)); and
            ``(C) the person's entitlement to the benefits under this 
        chapter has not terminated under section 4317.
    ``(2) Documentation of any matter referred to in paragraph (1) that 
satisfies regulations prescribed by the Secretary shall satisfy the 
documentation requirements in such paragraph.
    ``(3) The failure of a person to provide documentation that 
satisfies regulations prescribed pursuant to paragraph (2) shall not be 
a basis for denying reemployment in accordance with the provisions of 
this chapter if the failure occurs because such documentation does not 
exist or is not readily available at the time of the request of the 
employer. If, after such reemployment, documentation becomes available 
that establishes that such person does not meet one or more of the 
requirements referred to in subparagraphs (A) through (C) of paragraph 
(1), the employer of such person may terminate the employment of the 
person and the provision of any rights or benefits afforded the person 
under this chapter.
    ``(4) It shall be unlawful for an employer to delay or attempt to 
defeat a reemployment obligation by demanding documentation that does 
not then exist or is not then readily available.
    ``(h) The right of a person to reemployment under this section 
shall not entitle such person to retention, preference, or displacement 
rights over any person with a superior claim under the provisions of 
title 5, United States Code, relating to veterans and other preference 
eligibles.
    ``(i) In any determination of a person's entitlement to protection 
under this chapter, the timing, frequency, and duration of the person's 
training or service or the nature of such training or service 
(including voluntary service) in the uniformed services shall not be a 
basis for denying protection of such training or service if the service 
does not exceed the limitations set forth in subsection (c), and the 
notice requirements established in subsection (a)(1) and the 
notification requirements established in subsection (e) are met.
``Sec. 4313. Reemployment positions
    ``(a) Subject to subsection (b) in the case of any employee and 
subject to section 4314 in the case of reemployment by the Federal 
Government, a person entitled to reemployment under section 4312 upon 
completion of a period of service in the uniformed services shall be 
promptly reemployed in a position of employment in accordance with the 
following priorities:
            ``(1) Except as provided in paragraphs (3) and (4), in the 
        case of a person whose period of service in the uniformed 
        services was for less than 91 days--
                    ``(A) in the position of employment in which the 
                person would have been employed if the continuous 
                employment of such person with the employer had not 
                been interrupted by such service, the duties of which 
                the person is qualified to perform; or
                    ``(B) in the position of employment in which the 
                person was employed on the date of the commencement of 
                the service in the uniformed services, only if the 
                person is not qualified to perform the duties of the 
                position referred to in subparagraph (A) after 
                reasonable efforts by the employer to qualify the 
                person.
            ``(2) Except as provided in paragraphs (3) and (4), in the 
        case of a person whose period of service in the uniformed 
        services was for more than 90 days--
                    ``(A) in the position of employment in which the 
                person would have been employed if the continuous 
                employment of such person with the employer had not 
                been interrupted by such service, or a position of like 
                seniority, status and pay, the duties of which the 
                person is qualified to perform; or
                    ``(B) in the position of employment in which the 
                person was employed on the date of the commencement of 
                the service in the uniformed services, or a position of 
                like seniority, status and pay, the duties of which the 
                person is qualified to perform, only if the person is 
                not qualified to perform the duties of a position 
                referred to in subparagraph (A) after reasonable 
                efforts by the employer to qualify the person.
            ``(3) In the case of a person who has a disability incurred 
        in, or aggravated by, a period of service in the uniformed 
        services, and if, after reasonable efforts by the employer to 
        accommodate the disability, such person is not qualified due to 
        such disability to be employed in the position of employment in 
        which the person would have been employed if the continuous 
        employment of such person with the employer had not been 
        interrupted by such service--
                    ``(A) in any other position which is equivalent in 
                seniority, status, and pay, the duties of which the 
                person is qualified to perform or would become 
                qualified to perform with reasonable efforts by the 
                employer; or
                    ``(B) if not employed under subparagraph (A), in a 
                position which is the nearest approximation to a 
                position referred to in subparagraph (A) in terms of 
                seniority, status, and pay consistent with 
                circumstances of such person's case.
            ``(4) In the case of a person who is not qualified to be 
        employed in the position of employment in which the person 
        would have been employed if the continuous employment of such 
        person with the employer had not been interrupted by such 
        service or in the position of employment in which such person 
        was employed on the date of the commencement of the service in 
        the uniform services for any reason other than disability 
        incurred in, or aggravated by, a period of service in the 
        uniformed services and who cannot become qualified with 
        reasonable efforts by the employer, in any other position of 
        lesser status and pay which such person is qualified to 
        perform, with full seniority.
    ``(b)(1) If two or more persons are entitled to reemployment under 
section 4312 in the same position of employment and more than one of 
them has reported for such reemployment, the person who left the 
position first shall have the prior right to reemployment in that 
position.
    ``(2) Any person entitled to reemployment under section 4312 who is 
not reemployed in a position of employment by reason of paragraph (1) 
shall be entitled to reemployment as follows:
            ``(A) Except as provided in subparagraph (B), in any other 
        position of employment referred to in subsection (a)(1) or 
        (a)(2), as the case may be (in the order of priority set out in 
        the applicable subsection), that provides a similar status and 
        pay to a position of employment referred to in paragraph (1) of 
        this subsection, consistent with circumstances of such person's 
        case, with full seniority.
            ``(B) In the case of a person who has a disability incurred 
        in, or aggravated by, a period of service in the uniformed 
        services that requires reasonable efforts by the employer for 
        the person to be able to perform the duties of the position of 
        employment, in any other position referred to in subsection 
        (a)(3) (in the order of priority set out in that subsection) 
        that provides a similar status and pay to a position referred 
        to in paragraph (1) of this subsection, consistent with 
        circumstances of such person's case, with full seniority.
``Sec. 4314. Reemployment by the Federal Government
    ``(a) Except as provided in subsections (b), (c), and (d), if a 
person is entitled to reemployment by the Federal Government under 
section 4312, such person shall be reemployed in a position of 
employment as described in section 4313.
    ``(b) If the employer of a person described in subsection (a) was, 
at the time such person entered service in the uniformed services, an 
agency in the executive branch, and the Director of the Office of 
Personnel Management determines that--
            ``(1) such employer no longer exists and its functions have 
        not been transferred to another part of the executive branch; 
        or
            ``(2) it is impossible or unreasonable for such employer to 
        reemploy such person,
the Director shall identify an alternative position of like seniority, 
status, and pay for which such person is qualified in another part of 
the executive branch, and the Director shall cause employment in such 
position to be offered to such person.
    ``(c) If the employer of a person described in subsection (a) was, 
at the time such person entered service in the uniformed services, a 
part of the judicial branch or the legislative branch of the Federal 
Government, and such employer determines that--
            ``(1) it is impossible or unreasonable for such employer to 
        reemploy such person; and
            ``(2) such person is otherwise eligible to acquire a status 
        for transfer to a position in the competitive service in 
        accordance with section 3304(c) of title 5,
such person shall, upon application to the Director of the Office of 
Personnel Management, be considered for and offered employment in an 
alternative position in the executive branch on the same basis as 
described in subsection (b).
    ``(d) If the adjutant general of a State determines that it is 
impossible or unreasonable to reemploy a person who was a National 
Guard technician employed under section 709 of title 32, and such 
person is otherwise eligible to acquire a status for transfer to a 
position in the competitive service in accordance with section 3304(d) 
of title 5, such person shall, upon application to the Director of the 
Office of Personnel Management, be considered for and offered 
employment in an alternative position in the executive branch of the 
Federal Government on the same basis as described in subsection (b).
``Sec. 4315. Rights, benefits, and obligations of persons absent from 
              employment for service in a uniformed service
    ``(a) A person who is reemployed under this chapter is entitled to 
the seniority and other rights and benefits determined by seniority 
that the person had on the date of the commencement of service in the 
uniformed services plus the additional seniority and rights and 
benefits that such person would have attained if the person had 
remained continuously employed.
    ``(b) A person who performs service in the uniformed services is 
considered to be on furlough or leave of absence while in the uniformed 
services and is also entitled to such other rights and benefits, not 
determined by seniority, relating to other employees on furlough or 
leave of absence which were in effect by contract, practice, policy, 
agreement, or plan at the commencement of such period of service or 
were established while such person is performing such service. Such 
person may be required to pay the employee cost, if any, of any funded 
benefit continued pursuant to the preceding sentence to the extent 
other employees on furlough or leave of absence are so required.
    ``(c)(1) Notwithstanding subsection (b), a person who performs 
service in the uniformed services shall, at such person's request, 
continue to be covered by any insurance provided by such employer for 
up to 18 months. Such person may be required to pay the entire cost of 
any benefit continued pursuant to the preceding sentence, except that 
in the case of persons ordered to training or service for fewer than 31 
days, such person may be required to pay only the employee share, if 
any, of the cost of such benefit.
    ``(2) In the case of employer-sponsored health benefits, an 
exclusion or waiting period may not be imposed in connection with 
coverage of a health or physical condition of a person entitled to 
participate in these benefits, either under paragraph (1) or upon 
reinstatement, or in connection with a health or physical condition of 
any other person who is covered by the benefit by reason of the 
coverage of such person, if--
            ``(A) the condition arose before or during that person's 
        period of training or service in the uniformed services;
            ``(B) an exclusion or waiting period would not have been 
        imposed for the condition during a period of coverage resulting 
        from participation by such person in the benefits; and
            ``(C) the condition of such person has not been determined 
        by the Secretary of Veterans Affairs to be service-connected.
    ``(d) A person who is reemployed by an employer under this chapter 
shall not be discharged from such employment, except for cause--
            ``(1) if such person's period of service was 181 days or 
        more, within one year;
            ``(2) if such person's period of service was 31 days or 
        more but less than 181 days, within six months; or
            ``(3) if such person's period of service was less than 31 
        days, within a period of time that is equal to the period of 
        service concerned.
    ``(e) Any person who is absent from or leaves a position (other 
than a temporary position) in the employ of any employer for voluntary 
or involuntary service in the uniformed services may utilize, with 
respect to the employer and during any period of such service, accrued 
or other leave which the person could have utilized if the person had 
remained in such position.
``Sec. 4316. Employee pension benefit plans
    ``(a)(1)(A) Except as provided in subparagraph (B), in the case of 
a right provided pursuant to an employee pension benefit plan described 
in section 3(2) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1002(2)) or a right provided under any Federal or State law 
governing pension benefits for governmental employees, the right to 
pension benefits of a person reemployed under this chapter shall be 
determined under this section.
    ``(B) In the case of benefits under the Thrift Savings Plan, the 
rights of a person reemployed under this chapter shall be those rights 
provided in section 8432b of title 5. The first sentence of this 
subparagraph shall not be construed to affect any other right or 
benefit under this chapter.
    ``(2)(A) A person reemployed under this chapter shall be treated as 
not having incurred a break in service with the employer or employers 
maintaining the plan by reason of such person's period or periods of 
service in the uniformed services.
    ``(B) Each period served by a person in the uniformed services 
shall, upon reemployment under this chapter, be deemed to constitute 
service with the employer or employers maintaining the plan for 
purposes of determining the nonforfeitability of the person's accrued 
benefits and for the purpose of determining the accrual of benefits 
under the plan.
    ``(b)(1)(A) An employer reemploying a person under this chapter 
shall be liable to an employee pension benefit plan for funding any 
obligation of the plan to provide the benefits described in subsection 
(a)(2). For purposes of determining the amount of such liability and 
for purposes of section 515 of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1145) or any similar Federal or State law 
governing pension benefits for governmental employees, service in the 
uniformed services that is deemed under subsection (a) to be service 
with the employer shall be deemed to be service with the employer under 
the terms of the plan or any applicable collective bargaining 
agreement. In the case of a multiemployer plan, as defined in section 
3(37) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1002(37)), any liability of the plan described in this paragraph shall 
be allocated by the plan in such manner as the sponsor maintaining the 
plan shall provide.
    ``(B) An employee entitled to pension benefits under this chapter, 
with respect to a period of service described in subsection (a)(2)(B)--
            ``(i) shall have earnings credited with respect to an 
        employer contribution in the same manner and to the same extent 
        as earnings are credited to other employees during the period 
        of service, subject to paragraph (3), irrespective of when the 
        contribution is made;
            ``(ii) shall have allocated the amount of--
                    ``(I) any employer contribution that was voluntary; 
                and
                    ``(II) any employer contribution the total amount 
                of which was determined without reference to the number 
                of, or compensation of, plan participants before being 
                allocated to the accounts of participants; and
            ``(iii) may have allocated the amount of any forfeiture,
in the same manner and to the same extent the allocation occurs for 
other employees during the period of service.
    ``(2) A person reemployed under this chapter shall be entitled to 
accrued benefits pursuant to subsection (a) that are contingent on the 
making of, or derived from, employee contributions or elective 
deferrals (as defined in section 402(g)(3) of the Internal Revenue Code 
of 1986) only to the extent the person makes payment to the plan with 
respect to such contributions or deferrals. No such payment may exceed 
the amount the person would have been permitted or required to 
contribute had the person remained continuously employed by the 
employer throughout the period of service described in subsection 
(a)(2)(B). Any payment to the plan described in this paragraph shall be 
made during any reasonable continuous period (beginning with the date 
of reemployment) as the employer and the person may agree.
    ``(3) For purposes of computing an employer's liability under 
paragraph (1)(A) or the employee's contributions under paragraph (2), 
the employee's compensation during the period of service described in 
subsection (a)(2)(B)--
            ``(A) shall be computed at the same rate as the employee 
        received from the employer immediately before such period; or
            ``(B) if the employee's compensation was not based on a 
        fixed rate, shall be computed on the basis of the employee's 
        average rate of compensation during the 12-month period 
        immediately preceding such period (or, if shorter, the period 
        of employment immediately preceding such period).
    ``(c) Any employer who reemploys a person under this chapter and 
who is an employer contributing to a multiemployer plan, as defined in 
section 3(37) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1002(37)), under which benefits are or may be payable to 
such person by reason of the obligations set forth in this chapter, 
shall, within 30 days after the date of such reemployment, provide 
information, in writing, of such reemployment to the administrator of 
such plan.
``Sec.  4317. Character of service
    ``A person's entitlement to the benefits of this chapter by reason 
of the service of such person in one of the uniformed services 
terminates upon the occurrence of any of the following events:
            ``(1) A separation of such person from such uniformed 
        service with a dishonorable or bad conduct discharge.
            ``(2) A separation of such person from such uniformed 
        service under other than honorable conditions, as characterized 
        pursuant to regulations prescribed by the Secretary concerned.
            ``(3) A dismissal of such person permitted under section 
        1161(a) of title 10.
            ``(4) A dropping of such person from the rolls pursuant to 
        section 1161(b) of title 10.

     ``SUBCHAPTER III--PROCEDURES FOR ASSISTANCE, ENFORCEMENT, AND 
                             INVESTIGATIONS

``Sec. 4321. Assistance in obtaining employment or reemployment
    ``The Secretary (through the Veterans' Employment and Training 
Service) shall provide assistance to any person with respect to 
employment and reemployment rights and benefits to which such person is 
entitled under this chapter. In providing such assistance, the 
Secretary may request the assistance of existing Federal and State 
agencies engaged in similar or related activities and utilize the 
assistance of volunteers.
``Sec. 4322. Enforcement of employment or reemployment rights
    ``(a)(1) A person who claims that--
            ``(A) such person is entitled under this chapter to 
        employment or reemployment rights or benefits with respect to 
        employment by an employer; and
            ``(B)(i) such employer has failed or refused, or is about 
        to fail or refuse, to comply with the provisions of this 
        chapter; or
            ``(ii) in the case that the employer is the Federal 
        Government, such employer or the Office of Personnel Management 
        has failed or refused, or is about to fail or refuse, to comply 
        with the provisions of this chapter,
may file a complaint with the Secretary in accordance with subsection 
(b), and the Secretary shall investigate such complaint.
    ``(2) In the case that the employer is the Federal Government, 
subsection (a) of section 4323 shall be applicable to such 
investigation but not subsections (b) and (c) of such section.
    ``(3) This subsection does not apply to any action relating to 
benefits to be provided by the Thrift Savings Plan.
    ``(b)(1) A person described in subsection (a) may file a complaint 
in accordance with paragraph (2) and apply to the Secretary for 
assistance in asserting that complaint.
    ``(2) Such complaint shall be in writing, be in such form as the 
Secretary may prescribe, include the name and address of the employer 
against whom the complaint is filed, and contain a summary of the 
allegations that form the basis for the complaint.
    ``(3) Before the receipt of a written complaint, the Secretary 
shall, upon request, provide technical assistance to the potential 
claimant and, if the Secretary determines it appropriate, to such 
claimant's employer.
    ``(c)(1)(A) Except as provided in paragraph (2), if the Secretary, 
after investigation, is reasonably satisfied that the employer has 
failed to comply with the provisions of this chapter, if efforts to 
obtain voluntary compliance are not successful, and if the claimant 
requests in writing that the claim be referred for litigation, the 
Secretary shall refer the case to the Attorney General. If the Attorney 
General is reasonably satisfied that the person requesting 
representation is entitled to the rights or benefits sought, the 
Attorney General shall appear and act as attorney for the claimant in 
the filing of a complaint and other appropriate motions and pleadings 
and the prosecution thereof in the district courts of the United States 
and on appeal.
    ``(B) If the Attorney General declines to represent a person after 
receiving a referral from the Secretary or if a person chooses not to 
apply to the Secretary for assistance or to utilize the Attorney 
General for representation under this section, such person may be 
represented before the district court or on appeal by counsel of the 
person's choice.
    ``(2)(A) In the case where the employer is the Federal Government, 
if the Secretary, after investigation, is reasonably satisfied that the 
employer has failed to comply with the provisions of this chapter, if 
efforts to obtain voluntary compliance are not successful, and if the 
claimant requests in writing that the claim be referred for litigation, 
the case shall be referred to the Office of the Special Counsel, 
litigation shall be before the Merit Systems Protection Board, and if 
the Special Counsel is reasonably satisfied that the person requesting 
representation is entitled to the rights or benefits sought, the 
Special Counsel shall appear and act as attorney for the claimant in 
filing an appeal to the Merit Systems Protection Board and in pursuing 
that appeal.
    ``(B) If the Special Counsel declines to represent a person after 
receiving a referral from the Secretary or if a person chooses not to 
apply to the Secretary for assistance or to utilize the Special Counsel 
for representation under this section, such person may be represented 
before the Merit Systems Protection Board or on appeal by counsel of 
the person's choice.
    ``(d)(1) This subsection applies only with respect to a State or 
private employer.
    ``(2)(A) The district courts of the United States may require the 
State or private employer, as the case may be--
            ``(i) to comply with the provisions of this chapter;
            ``(ii) to compensate the person for any loss of wages or 
        benefits suffered by reason of such employer's failure to 
        comply with the provisions of this chapter; and
            ``(iii) to pay, in addition to the compensation paid under 
        clause (ii), the person an amount equal to such compensation as 
        liquidated damages, if the court determines that the employer's 
        failure to comply with the provisions of this chapter was 
        willful.
    ``(B) Any compensation and payment under clauses (ii) and (iii) of 
subparagraph (A) shall be in addition to, and shall not be deemed to 
diminish, any of the other rights and benefits provided for in this 
chapter.
    ``(3)(A) No fees or court costs shall be charged or taxed against 
any person claiming rights or benefits under this chapter.
    ``(B) In any action or proceeding to enforce a provision of this 
chapter by a person described in paragraph (2) who obtained private 
counsel for such action or proceeding, the court, in its discretion, 
may award any such person who prevails in such action or proceeding a 
reasonable attorney's fee, expert witness fees, and other litigation 
expenses.
    ``(4) The court may use its full equity powers, including temporary 
or permanent injunctions and temporary restraining orders, to vindicate 
fully the rights or benefits of persons under this chapter.
    ``(5) An action under this chapter may be initiated only by a 
person claiming rights or benefits under this chapter, not by an 
employer, prospective employer, or other entity with obligations under 
this chapter.
    ``(6) In any action under this chapter, only the employer shall be 
deemed a necessary party respondent.
    ``(7) No State statute of limitations shall apply to any 
proceedings under this chapter.
    ``(8) A State shall be subject to the same remedies, including 
prejudgment interest, as may be imposed upon any private employer under 
this section.
    ``(e)(1) This subsection applies only with respect to the Federal 
Government as employer.
    ``(2)(A) If the Merit Systems Protection Board concludes that the 
Federal Government, as employer, has failed to comply with the 
provisions of this chapter or that the Director of the Office of 
Personnel Management has not met an obligation set forth in section 
4314, the Board shall enter an order specifically requiring the 
employing agency or the Director to comply with such provisions and to 
compensate such person for any loss of wages or benefits suffered by 
reason of the employing agency's or the Director's unlawful action.
    ``(B) Any such compensation shall be in addition to and shall not 
be deemed to diminish any of the other rights or benefits provided for 
by this chapter.
    ``(3)(A) A claimant under this chapter may petition the United 
States Court of Appeals for the Federal Circuit to review a decision of 
the Merit Systems Protection Board denying such claimant the relief 
sought, in whole or in part, subject to the conditions and in 
accordance with the procedures set forth in section 7703 of title 5.
    ``(B) The Secretary and the Special Counsel shall not represent 
persons with respect to review of decisions of the Merit Systems 
Protection Board under this chapter in the United States Court of 
Appeals for the Federal Circuit or the Supreme Court.
    ``(C) If a person seeks such judicial review, or in any case in 
which a person is involved in the Board's decision is being appealed by 
another party, such person may be represented by counsel of the 
person's choice.
``Sec. 4323. Conduct of investigation; subpoenas
    ``(a) In carrying out investigations under this chapter, the 
Secretary's duly authorized representatives shall at all reasonable 
times have access to, for the purpose of examination, and the right to 
copy and receive, any documents of any person or employer.
    ``(b) Except as provided in section 4322(a)(2), in carrying out 
investigations under this chapter, the Secretary may require by 
subpoena the attendance and testimony of witnesses and the production 
of documents relating to any matter under investigation. In case of 
disobedience of the subpoena or contumacy and on request of the 
Secretary, the Attorney General may apply to any district court of the 
United States in whose jurisdiction such disobedience or contumacy 
occurs for an order enforcing the Secretary's subpoena.
    ``(c) Except as provided in section 4322(a)(2), upon application, 
the district courts of the United States shall have jurisdiction to 
issue writs commanding any person or employer to comply with the 
subpoena of the Secretary or to comply with any order of the Secretary 
made pursuant to a lawful investigation under this chapter, and the 
district courts shall have jurisdiction to punish failure to obey a 
subpoena or other lawful order of the Secretary as a contempt of court.

               ``SUBCHAPTER IV--MISCELLANEOUS PROVISIONS

``Sec. 4331. Regulations
    ``(a) The Secretary (in consultation with the Secretary of Defense) 
may prescribe regulations implementing the provisions of this chapter 
with regard to the application of this chapter to States, local 
governments, and private employers.
    ``(b)(1) The Director of the Office of Personnel Management (in 
consultation with the Secretary and the Secretary of Defense) may 
prescribe regulations implementing the provisions of this chapter with 
regard to the application of this chapter to the Federal Government as 
employer. Such regulations shall be consistent with the regulations 
pertaining to the States and private employers, except that employees 
of the Federal Government may be given greater or additional rights. 
Nothing in this subsection constitutes authority for the Director to 
prescribe any matter for which any regulation may be prescribed under 
paragraph (2).
    ``(2) Regulations may be prescribed--
            ``(A) by the Merit Systems Protection Board to carry out 
        its responsibilities under this chapter; and
            ``(B) by the Office of Special Counsel to carry out its 
        responsibilities under this chapter.
``Sec. 4332. Reports
    ``The Secretary shall, after consultation with the Attorney General 
and the Special Counsel referred to in section 4322(b)(2) and no later 
than February 1, 1995, and each February 1 thereafter, transmit to the 
Congress, a report containing the following matters for the fiscal year 
ending before such February 1:
            ``(1) The number of cases reviewed by the Department of 
        Labor under this chapter during the fiscal year for which the 
        report is made.
            ``(2) The number of cases referred to the Attorney General 
        or the Special Counsel pursuant to section 4322(c)(1) or 
        4322(c)(2), respectively, during such fiscal year.
            ``(3) The number of pleadings filed by the Attorney General 
        pursuant to section 4322(c)(1) during such fiscal year.
            ``(4) The nature and status of each case reported on 
        pursuant to paragraph (1), (2), or (3).
            ``(5) An indication of whether there are any apparent 
        patterns of violation of the provisions of this chapter, 
        together with an explanation thereof.
            ``(6) Recommendations for administrative or legislative 
        action that the Secretary, the Attorney General, or the Special 
        Counsel considers necessary for the effective implementation of 
        this chapter, including any action that could be taken to 
        encourage mediation, before claims are filed under this 
        chapter, between employers and persons seeking employment or 
        reemployment.
``Sec.  4333. Outreach
    ``The Secretary, the Secretary of Defense, and the Secretary of 
Veterans Affairs shall take such actions as such Secretaries determine 
are appropriate to inform persons entitled to rights and benefits under 
this chapter and employers of the rights, benefits, and obligations of 
such persons and such employers under this chapter.''.
    (b) Conforming Amendments.--
            (1) Amendments to title 38.--The tables of chapters at the 
        beginning of title 38, United States Code, and the beginning of 
        part III of such title are each amended by striking out the 
        item relating to chapter 43 and inserting in lieu thereof the 
        following:

``43. Employment and reemployment rights of members of the      4301''.
    uniformed services.
            (2) Amendment to title 5.--(A) Section 1204(a)(1) of title 
        5, United States Code, is amended by striking out ``section 
        4323'' and inserting in lieu thereof ``chapter 43''.
            (B) Subchapter II of chapter 35 of such title is repealed.
            (C) The table of sections for chapter 35 of such title is 
        amended by striking out the heading relating to subchapter II 
        of such chapter and the item relating to section 3551 of such 
        chapter.
            (3) Amendment to title 10.--Section 706(c)(1) of title 10, 
        United States Code, is amended by striking out ``section 4321'' 
        and inserting in lieu thereof ``chapter 43''.
    (c) Amendments to Title 28.--Section 631 of title 28, United States 
Code, is amended--
            (1) by striking out subsection (j);
            (2) by redesignating subsections (k) and (l) as subsections 
        (j) and (k), respectively; and
            (3) in subsection (j), as redesignated by paragraph (2), by 
        striking out ``under the terms of'' and all that follows 
        through ``section,'' the first place it appears and inserting 
        in lieu thereof ``under chapter 43 of title 38,''.

SEC. 3. EXEMPTION FROM MINIMUM SERVICE REQUIREMENTS.

    Section 5303A(b)(3) of title 38, United States Code, is amended--
            (1) by striking out ``or'' at the end of subparagraph (E);
            (2) by striking out the period at the end of subparagraph 
        (F) and inserting in lieu thereof ``; or''; and
            (3) by adding at the end thereof the following new 
        subparagraph:
            ``(G) to benefits under chapter 43 of this title.''.

SEC. 4. THRIFT SAVINGS PLAN.

    (a) In General.--(1) Title 5, United States Code, is amended by 
inserting after section 8432a the following:
``Sec. 8432b. Contributions of persons who perform military service
    ``(a) This section applies to any employee who--
            ``(1) separates or enters leave-without-pay status in order 
        to perform military service; and
            ``(2) is subsequently restored to or reemployed in a 
        position which is subject to this chapter, pursuant to chapter 
        43 of title 38.
    ``(b)(1) Each employee to whom this section applies may contribute 
to the Thrift Savings Fund, in accordance with this subsection, an 
amount not to exceed the amount described in paragraph (2).
    ``(2) The maximum amount which an employee may contribute under 
this subsection is equal to--
            ``(A) the contributions under section 8432(a) which would 
        have been made, over the period beginning on date of separation 
        or commencement of leave-without-pay status (as applicable) and 
        ending on the day before the date of restoration or 
        reemployment (as applicable); reduced by
            ``(B) any contributions under section 8432(a) actually made 
        by such employee over the period described in subparagraph (A).
    ``(3) Contributions under this subsection--
            ``(A) shall be made at the same time and in the same manner 
        as would any contributions under section 8432(a);
            ``(B) shall be made over the period of time specified by 
        the employee under paragraph (4)(B); and
            ``(C) shall be in addition to any contributions then 
        actually being made under section 8432(a).
    ``(4) The Executive Director shall prescribe the time, form, and 
manner in which an employee may specify--
            ``(A) the total amount such employee wishes to contribute 
        under this subsection with respect to any particular period 
        referred to in paragraph (2)(B); and
            ``(B) the period of time over which the employee wishes to 
        make contributions under this subsection.
The employing agency may place a maximum limit on the period of time 
referred to in subparagraph (B), which cannot be shorter than two times 
the period referred to in paragraph (2)(B) and not longer than four 
times such period.
    ``(c) If an employee makes contributions under subsection (b), the 
employing agency shall make contributions to the Thrift Savings Fund on 
such employee's behalf--
            ``(1) in the same manner as would be required under section 
        8432(c)(2) if the employee contributions were being made under 
        section 8432(a); and
            ``(2) disregarding any contributions then actually being 
        made under section 8432(a) and any agency contributions 
        relating thereto.
    ``(d) An employee to whom this section applies is entitled to have 
contributed to the Thrift Savings Fund on such employee's behalf an 
amount equal to--
            ``(1) 1 percent of such employee's basic pay (as determined 
        under subsection (e)) for the period referred to in subsection 
        (b)(2)(B); reduced by
            ``(2) any contributions actually made on such employee's 
        behalf under section 8432(c)(1) with respect to the period 
        referred to in subsection (b)(2)(B).
    ``(e) For purposes of any computation under this section, an 
employee shall, with respect to the period referred to in subsection 
(b)(2)(B), be considered to have been paid at the rate which would have 
been payable over such period had such employee remained continuously 
employed in the position which such employee last held before 
separating or entering leave-without-pay status to perform military 
service.
    ``(f)(1) The employing agency shall be required to pay lost 
earnings on contributions made pursuant to subsections (c) and (d). 
Such earnings shall be calculated retroactively to the date the 
contribution would have been made had the employee not separated or 
entered leave without pay status to perform military service.
    ``(2) Procedures for calculating and crediting the earnings payable 
pursuant to paragraph (1) shall be prescribed by the Executive 
Director.
    ``(g) Amounts paid under subsection (c), (d), or (f) shall be 
paid--
            ``(1) by the agency to which the employee is restored or in 
        which such employee is reemployed;
            ``(2) from the same source as would be the case under 
        section 8432(e) with respect to sums required under section 
        8432(c); and
            ``(3) within the time prescribed by the Executive Director.
    ``(h)(1) For purposes of section 8432(g), in the case of an 
employee to whom this section applies--
            ``(A) a separation from civilian service in order to 
        perform the military service on which the employee's 
        restoration or reemployment rights are based shall be 
        disregarded; and
            ``(B) such employee shall be credited with a period of 
        civilian service equal to the period referred to in subsection 
        (b)(2)(B).
    ``(2)(A) An employee to whom this section applies may elect, for 
purposes of section 8433(d), or paragraph (1) or (2) of section 
8433(h), as the case may be, to have such employee's separation 
(described in subsection (a)(1)) treated as if it had never occurred.
    ``(B) An election under this paragraph shall be made within such 
period of time after restoration or reemployment (as the case may be) 
and otherwise in such manner as the Executive Director prescribes.
    ``(i) The Executive Director shall prescribe regulations to carry 
out this section.''.
    (2) The table of sections for chapter 84 of title 5, United States 
Code, is amended by inserting after the item relating to section 8432a 
the following:

``8432b. Contributions of persons who perform military service.''.
    (b) Preservation of Certain Rights.--(1) Section 8433(d) of title 
5, United States Code, is amended by striking ``subsection (e).'' and 
inserting ``subsection (e), unless an election under section 
8432b(h)(2) is made to treat such separation for purposes of this 
subsection as if it had never occurred.''.
    (2) Paragraphs (1) and (2) of section 8433(h) are each amended by 
striking the period at the end and inserting ``, or unless an election 
under section 8432b(h)(2) is made to treat such separation for purposes 
of this paragraph as if it had never occurred.''.
    (c) Election To Resume Regular Contributions Upon Restoration or 
Reemployment.--Section 8432 of title 5, United States Code, is amended 
by adding at the end the following:
    ``(i)(1) This subsection applies to any employee--
            ``(A) to whom section 8432b applies; and
            ``(B) who, during the period of such employee's absence 
        from civilian service (as referred to in section 
        8432b(b)(2)(B))--
                    ``(i) is eligible to make an election described in 
                subsection (b)(1); or
                    ``(ii) would be so eligible but for having either 
                elected to terminate individual contributions to the 
                Thrift Savings Fund within 2 months before commencing 
                military service or separated in order to perform 
                military service.
    ``(2) The Executive Director shall prescribe regulations to ensure 
that any employee to whom this subsection applies shall, within a 
reasonable time after being restored or reemployed (in the manner 
described in section 8432b(a)(2)), be afforded the opportunity to make, 
for purposes of this section, any election which would be allowable 
during a period described in subsection (b)(1)(A).''.
    (d) Applicability to Employees Under CSRS.--Section 8351(b) of 
title 5, United States Code, is amended by adding at the end the 
following:
    ``(11) In applying section 8432b to an employee contributing to the 
Thrift Savings Fund after being restored to or reemployed in a position 
subject to this subchapter, pursuant to chapter 43 of title 38--
            ``(A) any reference in such section to contributions under 
        section 8432(a) shall be considered a reference to employee 
        contributions under this section;
            ``(B) the contribution rate under section 8432b(b)(2)(A) 
        shall be the maximum percentage allowable under subsection 
        (b)(2) of this section; and
            ``(C) subsections (c) and (d) of section 8432b shall be 
        disregarded.''.
    (e) Effective Date; Applicability.--This section and the amendments 
made by this section--
            (1) shall take effect on the date of enactment of this Act; 
        and
            (2) shall apply to any employee whose release from military 
        service, discharge from hospitalization, or other similar event 
        making the individual eligible to seek restoration or 
        reemployment under chapter 43 of title 38, United States Code, 
        occurs on or after August 2, 1990.
    (f) Rules for Applying Amendments to Employees Restored or 
Reemployed Before Effective Date.--In the case of any employee 
(described in subsection (e)(2)) who is reemployed or restored (in the 
circumstances described in section 8432b(a) of title 5, United States 
Code, as amended by this section) before the date of enactment of this 
Act, the amendments made by this section shall apply to such employee, 
in accordance with their terms, subject to the following:
            (1) The employee shall be deemed not to have been 
        reemployed or restored until--
                    (A) the date of enactment of this Act, or
                    (B) the first day following such employee's 
                reemployment or restoration on which such employee is 
                or was eligible to make an election relating to 
                contributions to the Thrift Savings Fund,
        whichever occurs or occurred first.
            (2) If the employee changed agencies during the period 
        between date of actual reemployment or restoration and the date 
        of enactment of this Act, the employing agency as of such date 
        of enactment shall be considered the reemploying or restoring 
        agency.
            (3)(A) For purposes of any computation under section 8432b 
        of such title, pay shall be determined in accordance with 
        subsection (e) of such section, except that, with respect to 
        the period described in subparagraph (B), actual pay 
        attributable to such period shall be used.
            (B) The period described in this subparagraph is the period 
        beginning on the first day of the first applicable pay period 
        beginning on or after the date of the employee's actual 
        reemployment or restoration and ending on the day before the 
        date determined under paragraph (1).
            (4) Deem section 8432b(b)(2)(A) of such title to be amended 
        by striking ``ending on the day before the date of restoration 
        or reemployment (as applicable)'' and inserting ``ending on the 
        date determined under section 4(f)(1) of the Uniformed Services 
        Employment and Reemployment Rights Act of 1993''.

SEC. 5. TECHNICAL AMENDMENT.

    Section 9(d) of Public Law 102-16 (105 Stat. 55) is amended by 
striking out ``Act'' the first place it appears and inserting in lieu 
thereof ``section''.

SEC. 6. TRANSITION RULES AND EFFECTIVE DATES.

    (a) Reemployment.--(1) Except as otherwise provided in this Act, 
the amendments made by this Act shall be effective with respect to 
reemployments initiated on or after the first day after the 60-day 
period beginning on the date of enactment of this Act.
    (2) The provisions of chapter 43 of title 38, United States Code, 
in effect on the day before such date of enactment, shall continue to 
apply to reemployments initiated before the end of such 60-day period.
    (3) In determining the number of years of service that may not be 
exceeded in an employee-employer relationship with respect to which a 
person seeks reemployment under chapter 43 of title 38, United States 
Code, as in effect before or after the date of enactment of this Act, 
there shall be included all years of service without regard to whether 
the periods of service occurred before or after such date of enactment 
unless the period of service is exempted by the chapter 43 that is 
applicable, as provided in paragraphs (1) and (2), to the reemployment 
concerned.
    (4) A person who initiates reemployment under chapter 43 of title 
38, United States Code, during or after the 60-day period beginning on 
the date of enactment of this Act and whose reemployment is made in 
connection with a period of service in the uniform services that was 
initiated before the end of such period shall be deemed to have 
satisfied the notification requirement of section 4312(a)(1) of title 
38, United States Code, as provided in the amendments made by this Act, 
if the person complied with any applicable notice requirement under 
chapter 43, United States Code, as in effect on the day before the date 
of enactment of this Act.
    (b) Discrimination.--The provisions of section 4311 of title 38, 
United States Code, as provided in the amendments made by this Act, and 
the provisions of subchapter III of chapter 43 of such title, as 
provided in the amendments made by this Act, that are necessary for the 
implementation of such section 4311 shall become effective on the date 
of enactment of this Act.
    (c) Insurance.--(1) Except as provided in paragraph (2), the 
provisions of section 4315(c) of title 38, United States Code, as 
provided in the amendments made by this Act, concerning insurance 
coverage shall become effective on the date of enactment of this Act.
    (2) A person on active duty on the date of enactment of this Act, 
or a family member or personal representative of such person, may, 
after the date of enactment of this Act, elect to reinstate or continue 
insurance coverage as provided in such section 4315. If such an 
election is made, insurance coverage shall remain in effect for the 
remaining portion of the 18-month period that began on the date of such 
person's separation from civilian employment.
    (d) Disability.--(1) Section 4313(a)(3) of chapter 43 of title 38, 
United States Code, as provided in the amendments made by this Act, 
shall apply to reemployments initiated on or after August 1, 1990.
    (2) Effective as of August 1, 1990, section 4307 of title 38, 
United States Code (as in effect on the date of enactment of this Act), 
is hereby repealed, and the table of sections at the beginning of 
chapter 43 of such title (as in effect on the date of enactment of this 
Act) is amended by striking out the item relating to section 4307.
    (e) Reports.--The reports made by the Secretary of Labor pursuant 
to section 4332 of title 38, United States Code, as provided in the 
amendments made by this Act, shall be made with respect to cases 
pertaining to chapter 43 of such title without regard to whether a case 
originated under such chapter before, on, or after the date of 
enactment of this Act.
    (f) Previous Actions.--Except as otherwise provided, the amendments 
made by this Act do not affect reemployments that were initiated, 
rights, benefits, and duties that matured, penalties that were 
incurred, and proceedings that were begun before the end of the 60-day 
period referred to in subsection (a).

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