[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3249 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3249

To provide for the rectification of certain retirement coverage errors 
          affecting Federal employees, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 24, 1998

  Mr. Mica (for himself, Mr. Cummings, Mrs. Morella, Mr. Pappas, Mr. 
Sessions, Mr. Gilman, Mr. Leach, and Mr. Ford) introduced the following 
  bill; which was referred to the Committee on Government Reform and 
 Oversight, and in addition to the Committee on Ways and Means, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
To provide for the rectification of certain retirement coverage errors 
          affecting Federal employees, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Retirement 
Coverage Corrections Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Applicability.
Sec. 4. Restriction relating to future corrections.
Sec. 5. Irrevocability of elections.
 TITLE I--DESCRIPTION OF RETIREMENT COVERAGE ERRORS TO WHICH THIS ACT 
              APPLIES AND MEASURES FOR THEIR RECTIFICATION

  Subtitle A--Employee Who Should Have Been FERS Covered, But Who Was 
        Erroneously CSRS Covered or CSRS-Offset Covered Instead

Sec. 101. Elections.
Sec. 102. Effect of an election to be transferred from CSRS to FERS to 
                            correct a retirement coverage error.
Sec. 103. Effect of an election to be transferred from CSRS-Offset to 
                            FERS to correct a retirement coverage 
                            error.
Sec. 104. Effect of an election to be transferred from CSRS to CSRS-
                            Offset to correct a retirement coverage 
                            error.
Sec. 105. Effect of an election to be restored (or transferred) to 
                            CSRS-Offset after having been corrected to 
                            FERS from CSRS-Offset (or CSRS).
  Subtitle B--Employee Who Should Have Been FERS Covered, CSRS-Offset 
Covered, or CSRS Covered, But Who Was Erroneously Social Security-Only 
                            Covered Instead

Sec. 111. Elections.
Sec. 112. Effect of an election to become FERS covered to correct the 
                            retirement coverage error.
Sec. 113. Effect of an election to become CSRS-Offset covered to 
                            correct the retirement coverage error.
Sec. 114. Effect of an election to become CSRS covered to correct the 
                            retirement coverage error.
Subtitle C--Employee Who Should Have Been Social Security-Only Covered, 
  But Who Was Erroneously FERS Covered, CSRS-Offset Covered, or CSRS 
                            Covered Instead

Sec. 121. Uncorrected error: employee who should be Social Security-
                            Only covered, but who is erroneously FERS 
                            covered instead.
Sec. 122. Uncorrected error: employee who should be Social Security-
                            Only covered, but who is erroneously CSRS-
                            Offset covered instead.
Sec. 123. Uncorrected error: employee who should be Social Security-
                            Only covered, but who is erroneously CSRS 
                            covered instead.
Sec. 124. Corrected error: situations under sections 121-123.
Sec. 125. Vested employees excepted from automatic exclusion.
 Subtitle D--Employee Who Should Have Been CSRS Covered or CSRS-Offset 
         Covered, But Who Was Erroneously FERS Covered Instead

Sec. 131. Elections.
Sec. 132. Effect of an election to be transferred from FERS to CSRS to 
                            correct a retirement coverage error.
Sec. 133. Effect of an election to be transferred from FERS to CSRS-
                            Offset to correct a retirement coverage 
                            error.
Sec. 134. Effect of an election to be restored to FERS after having 
                            been corrected to CSRS.
Sec. 135. Effect of an election to be restored to FERS after having 
                            been corrected to CSRS-Offset.
Sec. 136. Disqualification of certain individuals to whom same election 
                            was previously available.
Subtitle E--Employee Who Should Have Been CSRS-Offset Covered, But Who 
                  Was Erroneously CSRS Covered Instead

Sec. 141. Automatic transfer to CSRS-Offset.
Sec. 142. Effect of transfer.
  Subtitle F--Employee Who Should Have Been CSRS Covered, But Who Was 
                Erroneously CSRS-Offset Covered Instead

Sec. 151. Elections.
Sec. 152. Effect of an election to be transferred from CSRS-Offset to 
                            CSRS to correct the retirement coverage 
                            error.
Sec. 153. Effect of an election to be restored to CSRS-Offset after 
                            having been corrected to CSRS.
   Subtitle G--Additional Provisions Relating to Government Agencies

Sec. 161. Repayment required in certain situations.
Sec. 162. Equitable sharing of amounts payable to or from the 
                            Government if more than one agency 
                            involved.
Sec. 163. Provisions relating to the original responsible agency.
                      TITLE II--GENERAL PROVISIONS

Sec. 201. Identification and notification requirements.
Sec. 202. Individual appeal rights.
Sec. 203. Information to be furnished by Government agencies to 
                            authorities administering this Act.
Sec. 204. Social Security records.
Sec. 205. Conforming amendments respecting Social Security coverage and 
                            OASDI taxes.
Sec. 206. Regulations.
Sec. 207. All elections to be approved by OPM.
Sec. 208. Additional transfers to OASDI trust funds in certain cases.
Sec. 209. Technical and conforming amendments.
                      TITLE III--OTHER PROVISIONS

Sec. 301. Provisions to permit continued conformity of other Federal 
                            retirement systems.
Sec. 302. Government contributions payable from the CSRDF.
Sec. 303. Individual right of action preserved for amounts not 
                            otherwise provided for under this Act.
                        TITLE IV--TAX PROVISIONS

Sec. 401. Tax provisions.

SEC. 2. DEFINITIONS.

    For purposes of this Act:
            (1) CSRS.--The term ``CSRS'' means the Civil Service 
        Retirement System.
            (2) CSRDF.--The term ``CSRDF'' means the Civil Service 
        Retirement and Disability Fund.
            (3) 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 those that apply only with respect to an individual 
        described in section 8402(b)(2) of such title.
            (4) CSRS-offset covered.--The term ``CSRS-Offset 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, that apply with respect to an individual 
        described in section 8402(b)(2) of such title.
            (5) Employee.--The term ``employee'' means any individual 
        serving in an appointive or elective office or position in the 
        executive, legislative, or judicial branch of the Government 
        who, by virtue of that service, is permitted or required to be 
        CSRS covered, CSRS-Offset covered, FERS covered, or Social 
        Security-Only covered.
            (6) Executive director.--The term ``Executive Director of 
        the Federal Retirement Thrift Investment Board'' or ``Executive 
        Director'' means the Executive Director appointed under section 
8474 of title 5, United States Code.
            (7) FERS.--The term ``FERS'' means the Federal Employees' 
        Retirement System.
            (8) 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.
            (9) Government.--The term ``Government'' has the meaning 
        given such term by section 8331(7) of title 5, United States 
        Code.
            (10) OASDI taxes.--The term ``OASDI taxes'' means the OASDI 
        employee tax and the OASDI employer tax.
            (11) OASDI employee tax.--The term ``OASDI employee tax'' 
        means the tax imposed under section 3101(a) of the Internal 
        Revenue Code of 1986 (relating to Old-Age, Survivors and 
        Disability Insurance).
            (12) 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).
            (13) 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.
            (14) Period of erroneous coverage.--The term ``period of 
        erroneous coverage'' means, in the case of a retirement 
        coverage error, the period throughout which retirement coverage 
        is in effect pursuant to such error (or would have been in 
        effect, but for such error).
            (15) 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.
            (16) Retirement coverage error.--The term ``retirement 
        coverage error'' means a retirement coverage determination 
        that, as a result of any error, misrepresentation, or inaction 
        on the part of an employee or agent of the Government 
        (including an error as described in section 163(b)(2)), causes 
        an individual erroneously to be enrolled or not enrolled in a 
        retirement system, as further described in the applicable 
        subtitle of title I.
            (17) Social security-only covered.--The term ``Social 
        Security-Only covered'', with respect to any service, means 
        Government service that constitutes employment under section 
        210 of the Social Security Act (42 U.S.C. 410), and that--
                    (A) is subject to OASDI taxes; but
                    (B) is not subject to any retirement system for 
                Government employees (disregarding title II of the 
                Social Security Act).
            (18) Thrift savings fund.--The term ``Thrift Savings Fund'' 
        means the Thrift Savings Fund established under section 8437 of 
        title 5, United States Code.

SEC. 3. APPLICABILITY.

    (a) In General.--Subject to subsection (b), this Act shall apply 
with respect to any retirement coverage error that occurs before, on, 
or after the date of enactment of this Act, excluding any error 
corrected within 1 year after the date on which it occurs.
    (b) Limitation.--Nothing in this Act shall affect any retirement 
coverage or treatment accorded with respect to any individual in 
connection with any period beginning before the first day of the first 
applicable pay period beginning on or after January 1, 1984.

SEC. 4. RESTRICTION RELATING TO FUTURE CORRECTIONS.

    (a) In General.--Except as otherwise provided in this Act, any 
individual who, on or after the date of enactment of this Act, becomes 
or remains affected by a retirement coverage error may not be excluded 
from or made subject to any retirement system for the sole purpose of 
correcting such error.
    (b) Coordination With Other Laws.--
            (1) In general.--Nothing in this Act shall be considered to 
        preclude an election under the Federal Employees' Retirement 
        System Open Enrollment Act of 1997 (Public Law 105-61; 111 
        Stat. 1318) or any other voluntary retirement coverage election 
        authorized by statute.
            (2) Regulations.--The Office of Personnel Management shall 
        prescribe any regulations which may be necessary to apply this 
        Act in the case of any individual who changes retirement 
        coverage pursuant to a voluntary election made other than under 
        this Act.

SEC. 5. IRREVOCABILITY OF ELECTIONS.

    Any election made (or deemed to have been made) by an employee or 
any other individual under this Act shall be irrevocable.

 TITLE I--DESCRIPTION OF RETIREMENT COVERAGE ERRORS TO WHICH THIS ACT 
              APPLIES AND MEASURES FOR THEIR RECTIFICATION

  Subtitle A--Employee Who Should Have Been FERS Covered, But Who Was 
        Erroneously CSRS Covered or CSRS-Offset Covered Instead

SEC. 101. ELECTIONS.

    (a) Applicability.--This subtitle 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) CSRS covered 
        instead; or
            (2) should be (or should have been) FERS covered but, as a 
        result of a retirement coverage error, is (or was) CSRS-Offset 
        covered instead.
    (b) Uncorrected Error.--If, at the time of making an election under 
this section, the retirement coverage error described in paragraph (1) 
or (2) of subsection (a) (as applicable) has not been corrected, the 
employee affected by such error may elect--
            (1) to be FERS covered instead; or
            (2) to remain (or instead become) CSRS-Offset covered.
    (c) Corrected Error.--If, at the time of making an election under 
this section, the retirement coverage error described in paragraph (1) 
or (2) of subsection (a) (as applicable) has been corrected, the 
employee affected by such error may elect--
            (1) to be CSRS-Offset covered instead; or
            (2) to remain FERS covered.
    (d) Default Rule.--
            (1) In general.--If the employee is given written notice in 
        accordance with section 201 as to the availability of an 
        election under this section, but does not make any such 
        election within the 6-month period beginning on the date on 
        which such notice is so given, the option under subsection 
        (b)(2) or (c)(2), as applicable, shall be deemed to have been 
        elected on the last day of such period.
            (2) CSRS not an option.--Nothing in this section shall be 
        considered to afford an employee the option of becoming or 
        remaining CSRS covered.
    (e) Retroactive Effect.--An election under this section (including 
an election by default, and an election to remain covered by the 
retirement system by which the electing individual is covered as of the 
date of the election) shall be effective retroactive to the effective 
date of the retirement coverage error (as referred to in subsection 
(a)) to which such election relates.

SEC. 102. EFFECT OF AN ELECTION TO BE TRANSFERRED FROM CSRS TO FERS TO 
              CORRECT A RETIREMENT COVERAGE ERROR.

    (a) Applicability.--This section shall apply in the case of any 
employee affected by an error described in section 101(a)(1) who elects 
the option under section 101(b)(1).
    (b) Disposition of Contributions to the CSRDF.--
            (1) Employee contributions.--
                    (A) Transfer to oasdi trust funds.--There shall be 
                transferred from the CSRDF to the OASDI trust funds an 
                amount--
                            (i) equal to the amount of the OASDI 
                        employee tax that should have been deducted and 
                        withheld from the Federal wages of the employee 
                        for the period of erroneous coverage involved; 
                        but
                            (ii) not to exceed the amount of the 
                        employee's lump-sum credit attributable to the 
                        period of erroneous coverage involved.
                    (B) Rule if there are excess csrdf contributions.--
                If the amount described in subparagraph (A)(ii) exceeds 
                the sum of--
                            (i) the amount described in subparagraph 
                        (A)(i), plus
                            (ii) the amount that should have been 
                        deducted under section 8422 of title 5, United 
                        States Code, from pay of such employee for the 
                        period of erroneous coverage involved,
                the excess shall be refunded to the employee.
                    (C) Rule if csrdf contributions are insufficient.--
                If the amount described in subparagraph (A)(ii) is less 
                than the sum of the respective amounts described in 
                clauses (i) and (ii) of subparagraph (B), the shortfall 
                shall be made up (in such manner as the Director of the 
                Office of Personnel Management, with the concurrence of 
                the Commissioner of Social Security, shall by 
                regulation prescribe) by the agency in or under which 
                the employee is then employed, out of amounts otherwise 
                available in the appropriation, fund, or account from 
which any OASDI employer tax or contribution to the CSRDF (as 
applicable) may be made.
                    (D) Definition of lump-sum credit.--For purposes of 
                this paragraph, the term ``lump-sum credit'' has the 
                meaning given such term by section 8331 of title 5, 
                United States Code.
            (2) Government contributions.--
                    (A) Transfer to oasdi trust funds.--There shall be 
                transferred from the CSRDF to the OASDI trust funds the 
                amount of the OASDI employer tax that should have been 
                paid with respect to the employee for the period of 
                erroneous coverage involved.
                    (B) Rule if there are excess csrdf contributions.--
                If the total Government contributions to the CSRDF that 
                were made with respect to the employee for the period 
                of erroneous coverage involved exceed the sum of--
                            (i) the amount required to be transferred 
                        under subparagraph (A), plus
                            (ii) the amount that should have been 
                        contributed by the Government under section 
                        8423 of title 5, United States Code, for such 
                        employee with respect to such period,
                the excess shall be transferred to the agency in or 
                under which the employee is then employed, to the 
                credit of the appropriation, fund, or account from 
                which any Government contributions to the CSRDF may be 
                made (to remain available until expended).
                    (C) Rule if csrdf contributions are insufficient.--
                If the total Government contributions to the CSRDF that 
                were made with respect to the employee for the period 
                of erroneous coverage involved are less than the sum of 
                the respective amounts described in clauses (i) and 
                (ii) of subparagraph (B), the shortfall shall be made 
                up by the agency in or under which the employee is then 
                employed, out of amounts otherwise available in the 
                appropriation, fund, or account referred to in 
                subparagraph (B) in such manner as the Director of the 
                Office of Personnel Management, with the concurrence of 
                the Commissioner of Social Security, shall by 
                regulation prescribe.
    (c) Makeup Contributions to the Thrift Savings Fund.--
            (1) In general.--An employee to whom this section applies 
        is entitled to have contributed to the Thrift Savings Fund on 
        such employee's behalf, in addition to any regular employee or 
        Government contributions that would be permitted or required 
        for the year in which the contributions under this subsection 
        are made, an amount equal to the sum of--
                    (A) the amount determined under paragraph (2) with 
                respect to such employee for the period of erroneous 
                coverage involved;
                    (B) an amount equal to the total contributions that 
                should have been made for such employee under section 
                8432(c)(1) of title 5, United States Code, for the 
                period of erroneous coverage involved;
                    (C) an amount equal to the total contributions that 
                should have been made for such employee under section 
                8432(c)(2) of title 5, United States Code, for the 
                period of erroneous coverage involved (taking into 
                account both the amount referred to in subparagraph (A) 
                and any contributions to the Thrift Savings Fund 
                actually made by such employee with respect to the 
                period involved); and
                    (D) an amount equal to lost earnings on the amounts 
                referred to in subparagraphs (A) through (C), 
                determined in accordance with paragraph (3).
            (2) Amount based on average percentage of pay contributed 
        by employees during period of erroneous coverage.--
                    (A) In general.--The amount determined under this 
                paragraph with respect to an employee for a period of 
                erroneous coverage shall be equal to the amount of the 
                contributions such employee would have made if, during 
                each calendar year in such period, the employee had 
                contributed the percentage of such employee's basic pay 
                for such year specified in subparagraph (B) (determined 
                disregarding any contributions actually made by such 
                employee with respect to the year involved).
                    (B) Percentage to be applied.--The percentage to be 
                applied under this subparagraph in the case of any 
                employee with respect to a particular year is--
                            (i) the average percentage of basic pay 
                        that was contributed for such year under 
                        section 8432(a) of title 5, United States Code, 
                        by FERS covered employees who contributed to 
                        the Thrift Savings Fund in such year; or
                            (ii) if such average percentage for the 
                        year in question is unavailable, the average 
                        percentage for the most recent year prior to 
                        the year in question that is available.
                    (C) Limitations.--In no event may the amount 
                determined under this paragraph for an individual with 
                respect to a year exceed the amount that, if added to 
                the amount of the contributions that were actually made 
                by such individual to the Thrift Savings Fund with 
                respect to such year (if any), would cause the total to 
                exceed--
                            (i) any limitation under section 415 or any 
                        other provision of the Internal Revenue Code of 
                        1986 that would have applied to such employee 
                        with respect to such year; or
                            (ii) any limitation under section 8432(a) 
                        or any other provision of title 5, United 
                        States Code, that would have applied to such 
                        employee with respect to such year.
            (3) Lost earnings.--
                    (A) In general.--Lost earnings on any amounts 
                referred to in subparagraph (A), (B), or (C) of 
                paragraph (1) shall, to the extent those amounts are 
                attributable to contributions that should have been 
                made with respect to a particular TSP semiannual 
                period, be determined in the same way as if those 
                amounts had in fact been timely contributed and 
                allocated among the TSP investment funds in accordance 
                with--
                            (i) the investment fund election that was 
                        in effect for the employee with respect to such 
                        semiannual period; or
                            (ii) if no such election was then in effect 
                        for the employee, the investment fund election 
                        attributed to such employee with respect to 
                        such semiannual period.
                    (B) Investment fund election attributed.--For 
                purposes of subparagraph (A)(ii), the investment fund 
                election attributed to an employee with respect to a 
                particular TSP semiannual period is--
                            (i) the average percentage allocation of 
                        TSP contributions among the TSP investment 
                        funds that was in effect, with respect to the 
                        year in which such semiannual period (or most 
                        of such period) occurs, for all employees 
                        contributing to the Thrift Savings Fund during 
                        such year; or
                            (ii) if such average percentage allocation 
                        for the year in question is unavailable, the 
                        average percentage allocation for the most 
                        recent year prior to the year in question that 
                        is available.
                    (C) Definition of tsp semiannual period, etc.--For 
                purposes of this paragraph--
                            (i) the term ``TSP semiannual period'' 
                        means a 6-month period under section 8432(a) of 
                        title 5, United States Code;
                            (ii) the term ``investment fund election'' 
                        means a choice by a participant concerning how 
                        contributions to the Thrift Savings Plan shall 
                        be allocated among the TSP investment funds;
                            (iii) the term ``participant'' means any 
                        person with an account in the Thrift Savings 
                        Plan, or who would have an account in the 
                        Thrift Savings Plan but for an employing agency 
                        error (including an error as described in 
                        section 163(b)(2));
                            (iv) the term ``TSP investment funds'' 
                        means the C Fund, the F Fund, the G Fund, and 
                        any other investment fund in the Thrift Savings 
                        Plan created after December 27, 1996; and
                            (v) the terms ``C Fund'', ``F Fund'', and 
                        ``G Fund'' refer to the funds described in 
                        paragraphs (1), (3), and (4), respectively, of 
                        section 8438(a) of title 5, United States Code.
            (4) Makeup contribution to be made in a lump sum.--
                    (A) In general.--Any amount to which an employee is 
                entitled under this subsection shall be paid promptly 
                by the agency in or under which the electing employee 
                is (as of the date of the election) employed, in a lump 
                sum, upon notification to such agency under 
                subparagraph (B)(ii) as to the amount due.
                    (B) Board functions.--The regulations under 
                paragraph (6) shall include provisions under which--
                            (i) each employing agency shall be required 
                        to determine and notify the Federal Retirement 
                        Thrift Investment Board, in a timely manner, as 
                        to any amounts under paragraph (1)(A)-(C) owed 
                        by such agency; and
                            (ii) the Board shall, based on the 
                        information it receives from an agency under 
                        clause (i), determine lost earnings on those 
                        amounts and promptly notify such agency as to 
                        the total amounts due from it under this 
                        subsection.
            (5) Justices and judges; magistrates; etc.--The preceding 
        provisions of this subsection shall not apply in the case of 
        any employee who, pursuant to the election referred to in 
        subsection (a), becomes subject to section 8440a, 8440b, 8440c, 
        or 8440d of title 5, United States Code.
            (6) Regulations.--The Executive Director of the Federal 
        Retirement Thrift Investment Board shall prescribe any 
        regulations necessary to carry out this subsection.

SEC. 103. EFFECT OF AN ELECTION TO BE TRANSFERRED FROM CSRS-OFFSET TO 
              FERS TO CORRECT A RETIREMENT COVERAGE ERROR.

    (a) Applicability.--This section shall apply in the case of any 
employee affected by an error described in section 101(a)(2) who elects 
the option under section 101(b)(1).
    (b) Effect of Election.--In the case of an employee described in 
subsection (a), the following provisions shall apply:
            (1) Section 102(b) (relating to disposition of 
        contributions to the CSRDF), but disregarding provisions 
        relating to transfers to OASDI trust funds.
            (2) Section 102(c) (relating to makeup contributions to the 
        Thrift Savings Fund).

SEC. 104. EFFECT OF AN ELECTION TO BE TRANSFERRED FROM CSRS TO CSRS-
              OFFSET TO CORRECT A RETIREMENT COVERAGE ERROR.

    (a) Applicability.--This section shall apply in the case of any 
employee affected by an error described in section 101(a)(1) who elects 
the option under section 101(b)(2).
    (b) Same as in the Case of an Election to Ratify Erroneous CSRS-
Offset Coverage.--
            (1) In general.--The effect of an election described in 
        subsection (a) shall be as described in section 101(b)(2), 
        except that the provisions of section 102(b) shall also apply.
            (2) Appropriate percentages to be used in determining 
        employee and government contributions to csrdf.--For purposes 
        of paragraph (1), section 102(b) shall be applied by 
        substituting ``the relevant provisions of section 8334(k)'' for 
        ``section 8422'' and ``section 8423''.

SEC. 105. EFFECT OF AN ELECTION TO BE RESTORED (OR TRANSFERRED) TO 
              CSRS-OFFSET AFTER HAVING BEEN CORRECTED TO FERS FROM 
              CSRS-OFFSET (OR CSRS).

    (a) Applicability.--This section shall apply in the case of any 
employee affected by an error described in paragraph (1) or (2) of 
section 101(a) who (after having been corrected to FERS coverage) 
elects the option under section 101(c)(1).
    (b) Disposition of Contributions to the CSRDF.--
            (1) In general.--The provisions of section 102(b) shall 
        apply in the case of an employee described in subsection (a), 
        subject to paragraph (2).
            (2) No transfers for amounts already paid into oasdi, 
        etc.--For purposes of paragraph (1), section 102(b) shall be 
        applied in conformance with the following:
                    (A) No double payments into oasdi.--To the extent 
                that the appropriate OASDI employee or employer tax has 
                already been paid for the total period involved (or any 
                portion thereof), reduce the respective amounts 
                required by paragraphs (1)(A)(i) and (2)(A) of section 
                102(b) accordingly.
                    (B) Appropriate percentages to be used in 
                determining employee and government contributions to 
                csrdf.--Substitute ``the relevant provisions of section 
                8334(k)'' for ``section 8422'' and ``section 8423''.
                    (C) Appropriate lump-sum credit to be used.--
                Substitute ``8401'' for ``8331'' in paragraph (1)(D) 
                thereof.
                    (D) Provisions to be applied with respect to the 
                total period involved.--Substitute ``total period 
                involved (as defined by section 105)'' for ``period of 
                erroneous coverage involved''.
    (c) Disposition of Excess TSP Contributions.--
            (1) Government contributions.--All Government contributions 
        made on behalf of the employee to the Thrift Savings Fund that 
        are attributable to the total period involved (including any 
        earnings thereon) shall be forfeited. Amounts so forfeited 
        shall be transferred to the agency in or under which the 
        employee is then employed, to the credit of the appropriation, 
        fund, or account from which any Government contributions to the 
        Thrift Savings Fund may be made (to remain available until 
        expended).
            (2) Employee contributions.--The election referred to in 
        subsection (a) shall not be taken into account for purposes of 
        any determination relating to the disposition of any employee 
        contributions to the Thrift Savings Fund, attributable to the 
        total period involved, that were in excess of the maximum 
        amount that would have been allowable under applicable 
        provisions of subchapter III of chapter 83 of title 5, United 
        States Code (including any earnings thereon).
    (d) Definition of Total Period Involved.--For purposes of this 
section, the term ``total period involved'' means the period beginning 
on the effective date of the retirement coverage error involved and 
ending on the day before the date on which the election described in 
subsection (a) is made.

  Subtitle B--Employee Who Should Have Been FERS Covered, CSRS-Offset 
Covered, or CSRS Covered, But Who Was Erroneously Social Security-Only 
                            Covered Instead

SEC. 111. ELECTIONS.

    (a) Applicability.--This subtitle 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.
    (b) Uncorrected Error.--If, at the time of making an election under 
this section, the retirement coverage error described in paragraph (1), 
(2), or (3) of subsection (a) (as applicable) has not been corrected, 
the employee affected by such error may elect--
            (1)(A) in the case of an error described in subsection 
        (a)(1), to be FERS covered as well;
            (B) in the case of an error described in subsection (a)(2), 
        to be CSRS-Offset covered as well; or
            (C) in the case of an error described in subsection (a)(3), 
        to be CSRS covered instead; or
            (2) to remain Social Security-Only covered.
    (c) Corrected Error.--
            (1) In general.--Not later than 6 months after the date of 
        enactment of this Act, there shall be submitted to the Congress 
        a proposal (including any necessary draft legislation) to carry 
        out the policy described in paragraph (2).
            (2) Policy.--Under the proposal, any employee with respect 
        to whom the retirement coverage error described in paragraph 
        (1), (2), or (3) of subsection (a) (as applicable) has already 
        been corrected, but under terms less advantageous to the 
        employee than would have been the case under this Act, shall be 
        afforded a reasonable opportunity to obtain treatment 
        comparable to the treatment afforded under this Act.
            (3) Joint action.--This subsection shall be carried out by 
        the Director of the Office of Personnel Management, in 
        consultation with the Executive Director of the Federal 
        Retirement Thrift Investment Board and the Commissioner of 
        Social Security.
    (d) Default Rule.--In the case of any employee to whom subsection 
(b) applies, if the employee is given written notice in accordance with 
section 201 as to the availability of an election under this section, 
but does not make any such election within the 6-month period beginning 
on the date on which such notice is so given, the option under 
subsection (b)(2) shall be deemed to have been elected on the last day 
of such period.
    (e) Retroactive Effect.--An election under this section (including 
an election by default, and an election to remain covered by the 
retirement system by which the electing individual is covered as of the 
date of the election) shall be effective retroactive to the effective 
date of the retirement coverage error (as referred to in subsection 
(a)) to which such election relates.

SEC. 112. EFFECT OF AN ELECTION TO BECOME FERS COVERED TO CORRECT THE 
              RETIREMENT COVERAGE ERROR.

    (a) Applicability.--This section shall apply in the case of any 
employee affected by an error described in section 111(a)(1) who elects 
the option under section 111(b)(1)(A).
    (b) Makeup Contributions to the CSRDF.--Upon notification that an 
employee has made an election under this section, the agency in or 
under which such employee is employed shall promptly pay to the CSRDF, 
in a lump sum, an amount equal to the sum of--
            (1) the amount that should have been deducted and withheld 
        from the pay of the employee for the period of erroneous 
        coverage involved under section 8422 of title 5, United States 
        Code; and
            (2) the Government contributions that should have been paid 
        for the period of erroneous coverage involved under section 
        8423 of title 5, United States Code.
    (c) Makeup Contributions to the Thrift Savings Fund.--Section 
102(c) shall apply in the case of an employee described in subsection 
(a).

SEC. 113. EFFECT OF AN ELECTION TO BECOME CSRS-OFFSET COVERED TO 
              CORRECT THE RETIREMENT COVERAGE ERROR.

    (a) Applicability.--This section shall apply in the case of any 
employee affected by an error described in section 111(a)(2) who elects 
the option under section 111(b)(1)(B).
    (b) Makeup Contributions to the CSRDF.--Upon notification that an 
employee has made an election under this section, the agency in or 
under which such employee is employed shall promptly pay to the CSRDF, 
in a lump sum, an amount equal to the sum of--
            (1) the amount that should have been deducted and withheld 
        from the pay of the employee for the period of erroneous 
        coverage involved under section 8334 of title 5, United States 
        Code; and
            (2) the Government contributions that should have been paid 
        under section 8334 of title 5, United States Code, for the 
        period of erroneous coverage involved.
    (c) Makeup Contributions to the Thrift Savings Fund.--
            (1) In general.--Makeup contributions to the Thrift Savings 
        Fund shall be made by the employing agency in the same manner 
        as described in section 102(c) (but disregarding subparagraphs 
        (B) and (C) of paragraph (1) thereof, and the other provisions 
        of section 102(c) to the extent that they relate to those 
        subparagraphs).
            (2) Appropriate percentages, etc. to be used.--For purposes 
        of paragraph (1), section 102(c) shall be applied--
                    (A) by substituting ``section 8351(b)'' for 
                ``section 8432(a)'' and by substituting ``CSRS covered 
                and CSRS-Offset covered'' for ``FERS covered'' in 
                paragraph (2)(B)(i) thereof; and
                    (B) by substituting ``section 8351(b)(2)'' for 
                ``section 8432(a)'' in paragraph (2)(C)(ii) thereof.

SEC. 114. EFFECT OF AN ELECTION TO BECOME CSRS COVERED TO CORRECT THE 
              RETIREMENT COVERAGE ERROR.

    (a) Applicability.--This section shall apply in the case of any 
employee affected by an error described in section 111(a)(3) who elects 
the option under section 111(b)(1)(C).
    (b) Makeup Contributions to the CSRDF.--
            (1) In general.--Upon notification that an employee has 
        made an election under this section, the agency in or under 
        which such employee is employed shall promptly pay to the 
        CSRDF, in a lump sum, an amount equal to the sum of--
                    (A) the amount that should have been deducted and 
                withheld from the pay of the employee for the period of 
                erroneous coverage involved under section 8334 of title 
                5, United States Code; and
                    (B) the Government contributions that should have 
                been paid under such section for the period of 
                erroneous coverage involved.
            (2) Agency to be reimbursed for certain amounts.--
                    (A) In general.--The employee for whom the payment 
                under paragraph (1) is made shall repay to the agency 
                (referred to in paragraph (1)) an amount equal to the 
                OASDI employee taxes refunded or refundable to such 
                employee for any portion of the period of erroneous 
                coverage involved (computed in such manner as the 
                Director of the Office of Personnel Management, with 
                the concurrence of the Commissioner of Social Security, 
                shall by regulation prescribe), not to exceed the 
                amount described in paragraph (1)(A).
                    (B) Right of recovery; waiver.--If the employee 
                fails to repay the amount required under subparagraph 
                (A), a sum equal to the amount outstanding is 
                recoverable by the Government from the employee (or the 
                employee's estate, if applicable) by--
                            (i) setoff against accrued pay, 
                        compensation, amount of retirement credit, or 
                        another amount due the employee from the 
                        Government; and
                            (ii) such other method as is provided by 
                        law for the recovery of amounts owing to the 
                        Government.
                The head of the agency concerned may waive, in whole or 
                in part, a right of recovery under this paragraph if it 
                is shown that recovery would be against equity and good 
                conscience or against the public interest.
                    (C) Treatment of amounts repaid or recovered.--Any 
                amount repaid by, or recovered from, an individual (or 
                an estate) under this paragraph shall be credited to 
                the appropriation account from which the amount 
                involved was originally paid.
    (c) Makeup Contributions to the Thrift Savings Fund.--In the case 
of an employee described in subsection (a), makeup contributions to the 
Thrift Savings Fund shall be made in the same manner as described in 
section 113(c).

Subtitle C--Employee Who Should Have Been Social Security-Only Covered, 
  But Who Was Erroneously FERS Covered, CSRS-Offset Covered, or CSRS 
                            Covered Instead

SEC. 121. UNCORRECTED ERROR: EMPLOYEE WHO SHOULD BE SOCIAL SECURITY-
              ONLY COVERED, BUT WHO IS ERRONEOUSLY FERS COVERED 
              INSTEAD.

    (a) In General.--Except as provided in section 125, this section 
shall apply in the case of any employee who should be Social Security-
Only covered but, as a result of a retirement coverage error, is FERS 
covered instead.
    (b) Automatic Exclusion From FERS.--An employee described in 
subsection (a) shall not, by reason of the retirement coverage error 
described in subsection (a), be eligible to be treated as an individual 
who is FERS covered.
    (c) Disposition of Contributions to the CSRDF.--
            (1) Employee contributions.--There shall be paid to the 
        employee, from the CSRDF, any lump-sum credit to which such 
        employee would be entitled under section 8424 of title 5, 
        United States Code, to the extent attributable to the period of 
        erroneous coverage involved.
            (2) Government contributions.--There shall be transferred 
        from the CSRDF to the agency in or under which the employee is 
        then employed, to the credit of the appropriation, fund, or 
        account of such agency from which any Government contributions 
        to the CSRDF may be made (to remain available until expended), 
        an amount equal to the Government contributions, attributable 
        to such employee for the period of erroneous coverage involved, 
        that were made under section 8423 of title 5, United States 
        Code.
    (d) Disposition of TSP Contributions.--
            (1) Government contributions.--All Government contributions 
        made on behalf of the employee to the Thrift Savings Fund that 
        are attributable to the period of erroneous coverage involved 
        (including any earnings thereon) shall be forfeited and 
        transferred in the same manner as described in section 105(c).
            (2) Employee contributions.--Notwithstanding any other 
        provision of this section or any other provision of law, any 
        contributions made by the employee to the Thrift Savings Fund 
        during the period of erroneous coverage involved (including any 
        earnings thereon) shall be treated as if such employee had then 
        been correctly covered.

SEC. 122. UNCORRECTED ERROR: EMPLOYEE WHO SHOULD BE SOCIAL SECURITY-
              ONLY COVERED, BUT WHO IS ERRONEOUSLY CSRS-OFFSET COVERED 
              INSTEAD.

    (a) In General.--Except as provided in section 125, this section 
shall apply in the case of any employee who should be Social Security-
Only covered but, as a result of a retirement coverage error, is CSRS-
Offset covered instead.
    (b) Automatic Exclusion From CSRS-Offset.--An employee described in 
subsection (a) shall not, by reason of the retirement coverage error 
described in subsection (a), be eligible to be treated as an individual 
who is CSRS-Offset covered.
    (c) Disposition of Contributions to the CSRDF.--
            (1) Employee contributions.--There shall be paid to the 
        employee, from the CSRDF, the lump-sum credit to which such 
        employee would be entitled under section 8342 of title 5, 
        United States Code, to the extent attributable to the period of 
        erroneous coverage involved.
            (2) Government contributions.--There shall be transferred 
        from the CSRDF to the agency in or under which the employee is 
        then employed, to the credit of the appropriation, fund, or 
        account of such agency from which any Government contributions 
        to the CSRDF may be made (to remain available until expended), 
        an amount equal to the Government contributions that were made 
        under section 8334 of title 5, United States Code, and 
        attributable to such employee for the period of erroneous 
        coverage involved.
    (d) Disposition of TSP Contributions.--In the case of an employee 
described in subsection (a), section 121(d)(2) shall apply.

SEC. 123. UNCORRECTED ERROR: EMPLOYEE WHO SHOULD BE SOCIAL SECURITY-
              ONLY COVERED, BUT WHO IS ERRONEOUSLY CSRS COVERED 
              INSTEAD.

    (a) In General.--Except as provided in section 125, this section 
shall apply in the case of any employee who should be Social Security-
Only covered but, as a result of a retirement coverage error, is CSRS 
covered instead.
    (b) Automatic Exclusion From CSRS.--An employee described in 
subsection (a) shall not, by reason of the retirement coverage error 
described in subsection (a), be eligible to be treated as an individual 
who is CSRS covered.
    (c) Disposition of Contributions to the CSRDF.--
            (1) In general.--In the case of an employee described in 
        subsection (a), section 102(b) shall apply.
            (2) Irrelevant provisions to be disregarded.--For purposes 
        of paragraph (1), section 102(b) shall be applied disregarding 
        paragraphs (1)(B)(ii), (1)(C)(ii), (2)(B)(ii), and (2)(C)(ii) 
        thereof.
    (d) Disposition of TSP Contributions.--In the case of an employee 
described in subsection (a), section 121(d)(2) shall apply.

SEC. 124. CORRECTED ERROR: SITUATIONS UNDER SECTIONS 121-123.

    (a) In General.--Not later than 6 months after the date of 
enactment of this Act, there shall be submitted to the Congress a 
proposal (including any necessary draft legislation) to carry out the 
policy described in subsection (b).
    (b) Policy.--Under the proposal, any employee with respect to whom 
the applicable retirement coverage error (referred to in section 121, 
122, or 123, as applicable) has already been corrected, but under terms 
less advantageous to the employee than would have been the case under 
this Act, shall be afforded a reasonable opportunity to obtain 
treatment comparable to the treatment afforded under this Act.
    (c) Joint Action.--This section shall be carried out by the 
Director of the Office of Personnel Management, in consultation with 
the Executive Director of the Federal Retirement Thrift Investment 
Board and the Commissioner of Social Security.

SEC. 125. VESTED EMPLOYEES EXCEPTED FROM AUTOMATIC EXCLUSION.

    (a) In General.--Nothing in this subtitle shall, by reason of any 
retirement coverage error, result in the automatic exclusion of any 
employee from FERS, CSRS-Offset, or CSRS if, as of the date on which 
notice of such error is given (in accordance with section 201), such 
employee's rights have vested under the retirement system involved.
    (b) Vesting.--For purposes of this section, vesting of rights shall 
be considered to have occurred if, as of the date as of which the 
determination is made, the employee has completed at least 5 years of 
civilian service, taking into account only creditable service under 
section 8332 or 8411 of title 5, United States Code.
    (c) Elections.--
            (1) Erroneously fers covered.--Any employee affected by an 
        error described in section 121 who is determined under this 
        section to satisfy subsection (b) may elect--
                    (A) to be treated in accordance with section 121; 
                or
                    (B) to remain FERS covered.
            (2) Other cases.--Any employee affected by an error 
        described in section 122 or 123 who is determined under this 
        section to satisfy subsection (b) may elect--
                    (A) to be treated in accordance with section 122 or 
                123 (as applicable); or
                    (B) to remain (or instead become) CSRS-Offset 
                covered.
    (d) Effect of An Election To Be Transferred from CSRS to CSRS-
Offset.--In the case of an employee affected by an error described in 
section 123 who elects the option under subsection (c)(2)(B), the 
effect of the election shall be the same as described in section 104.
    (e) Default Rule.--If the employee does not make any election 
within the 6-month period beginning on the date on which the 
appropriate notice is given to such employee, the option under 
paragraph (1)(B) or (2)(B) of subsection (c), as applicable, shall be 
deemed to have been elected as of the last day of such period. Nothing 
in this section shall be considered to afford an employee the option of 
becoming or remaining CSRS covered.
    (f) Retroactive Effect.--An election under this section (including 
an election by default, and an election to remain covered by the 
retirement system by which the electing individual is covered as of the 
date of the election) shall be effective retroactive to the effective 
date of the retirement coverage error to which the election relates.
    (g) Special Rule In Case of Disability.--If, as of the date 
referred to in subsection (a), the employee is entitled to receive an 
annuity under chapter 83 or 84 of title 5, United States Code, based on 
disability, or compensation under subchapter I of chapter 81 of such 
title for injury to, or disability of, such employee, subsections (a) 
and (b) shall be applied by substituting (for the date that would 
otherwise apply) the date as of which entitlement to such annuity or 
compensation terminates (if at all).
    (h) Notification.--Any notice under section 201 shall include such 
additional information or other modifications as the Office of 
Personnel Management may by regulation prescribe in connection with the 
situations covered by this subtitle, particularly as they relate to the 
consequences of being vested or not vested.

 Subtitle D--Employee Who Should Have Been CSRS Covered or CSRS-Offset 
         Covered, But Who Was Erroneously FERS Covered Instead

SEC. 131. ELECTIONS.

    (a) Applicability.--This subtitle shall apply in the case of any 
employee who--
            (1) should be (or should have been) CSRS covered but, as a 
        result of a retirement coverage error, is (or was) FERS covered 
        instead; or
            (2) should be (or should have been) CSRS-Offset covered 
        but, as a result of a retirement coverage error, is (or was) 
        FERS covered instead.
    (b) Uncorrected Error.--If, at the time of making an election under 
this section, the retirement coverage error described in paragraph (1) 
or (2) of subsection (a) (as applicable) has not been corrected, the 
employee affected by such error may elect--
            (1)(A) in the case of an error described in subsection 
        (a)(1), to be CSRS covered instead; or
            (B) in the case of an error described in subsection (a)(2), 
        to be CSRS-Offset covered instead; or
            (2) to remain FERS covered.
    (c) Corrected Error.--If, at the time of making an election under 
this section, the retirement coverage error described in paragraph (1) 
or (2) of subsection (a) (as applicable) has been corrected, the 
employee affected by such error may elect--
            (1) to be FERS covered instead; or
            (2)(A) in the case of an error described in subsection 
        (a)(1), to remain CSRS covered; or
            (B) in the case of an error described in subsection (a)(2), 
        to remain CSRS-Offset covered.
    (d) Default Rule.--If the employee is given written notice in 
accordance with section 201 as to the availability of an election under 
this section, but does not make any such election within the 6-month 
period beginning on the date on which such notice is so given, the 
option under subsection (b)(2) or (c)(2), as applicable, shall be 
deemed to have been elected on the last day of such period.
    (e) Retroactive Effect.--An election under this section (including 
an election by default, and an election to remain covered by the 
retirement system by which the electing individual is covered as of the 
date of the election) shall be effective retroactive to the effective 
date of the retirement coverage error (as referred to in subsection 
(a)) to which such election relates.

SEC. 132. EFFECT OF AN ELECTION TO BE TRANSFERRED FROM FERS TO CSRS TO 
              CORRECT A RETIREMENT COVERAGE ERROR.

    (a) Applicability.--This section shall apply in the case of any 
employee affected by an error described in section 131(a)(1) who elects 
the option available to such employee under section 131(b)(1)(A).
    (b) Makeup Contributions to the CSRDF.--
            (1) In general.--Upon notification that an employee has 
        made an election under this section, the agency in or under 
        which such employee is employed shall promptly pay to the 
        CSRDF, in a lump sum, an amount equal to the excess of--
                    (A) the amount by which--
                            (i) the amount that should have been 
                        deducted and withheld from the pay of the 
                        employee for the period of erroneous coverage 
                        involved under section 8334 of title 5, United 
                        States Code, exceeds
                            (ii) the amount that was actually deducted 
                        and withheld from the pay of the employee for 
                        the period of erroneous coverage involved under 
                        section 8422 of such title (and not refunded), 
                        over
                    (B) the amount by which--
                            (i) the amount of the Government 
                        contributions actually made under section 8423 
                        of such title with respect to the employee for 
                        the period of erroneous coverage involved, 
                        exceeds
                            (ii) the amount of the Government 
                        contributions that should have been made under 
                        section 8334 of such title with respect to the 
                        employee for the period of erroneous coverage 
                        involved.
            (2) Agency to be reimbursed for certain amounts.--
                    (A) In general.--The employee for whom the payment 
                under paragraph (1) is made shall repay to the agency 
                (referred to in paragraph (1)) an amount equal to the 
                OASDI employee taxes refunded or refundable to such 
                employee for any portion of the period of erroneous 
                coverage involved (computed in such manner as the 
                Director of the Office of Personnel Management, with 
                the concurrence of the Commissioner of Social Security, 
                shall by regulation prescribe), not to exceed the 
                amount described in paragraph (1)(A).
                    (B) Right of recovery; waiver.--If the employee 
                fails to repay the amount required under subparagraph 
                (A), a sum equal to the amount outstanding is 
                recoverable by the Government from the employee (or the 
                employee's estate, if applicable) by--
                            (i) setoff against accrued pay, 
                        compensation, amount of retirement credit, or 
                        another amount due the employee from the 
                        Government; and
                            (ii) such other method as is provided by 
                        law for the recovery of amounts owing to the 
                        Government.
                The head of the agency concerned may waive, in whole or 
                in part, a right of recovery under this paragraph if it 
                is shown that recovery would be against equity and good 
                conscience or against the public interest.
                    (C) Treatment of amounts repaid or recovered.--Any 
                amount repaid by, or recovered from, an individual (or 
                an estate) under this paragraph shall be credited to 
                the appropriation, fund, or account from which the 
                amount involved was originally paid.

SEC. 133. EFFECT OF AN ELECTION TO BE TRANSFERRED FROM FERS TO CSRS-
              OFFSET TO CORRECT A RETIREMENT COVERAGE ERROR.

    (a) Applicability.--This section shall apply in the case of any 
employee affected by an error described in section 131(a)(2) who elects 
the option available to such employee under section 131(b)(1)(B).
    (b) Effect.--The effect of an election referred to in subsection 
(a) shall be substantially the same as that described in section 105.

SEC. 134. EFFECT OF AN ELECTION TO BE RESTORED TO FERS AFTER HAVING 
              BEEN CORRECTED TO CSRS.

    (a) Applicability.--This section shall apply in the case of any 
employee affected by an error described in section 131(a)(1) who elects 
the option under section 131(c)(1).
    (b) Effect.--The effect of an election referred to in subsection 
(a) shall be substantially the same as that described in section 102.

SEC. 135. EFFECT OF AN ELECTION TO BE RESTORED TO FERS AFTER HAVING 
              BEEN CORRECTED TO CSRS-OFFSET.

    (a) Applicability.--This section shall apply in the case of any 
employee affected by an error described in section 131(a)(2) who elects 
the option under section 131(c)(1).
    (b) Effect.--The effect of an election referred to in subsection 
(a) shall be substantially the same as that described in section 103.

SEC. 136. DISQUALIFICATION OF CERTAIN INDIVIDUALS TO WHOM SAME ELECTION 
              WAS PREVIOUSLY AVAILABLE.

    Notwithstanding any other provision of this subtitle, an election 
under this subtitle shall not be available in the case of any 
individual to whom an election under section 846.204 of title 5 of the 
Code of Federal Regulations (as in effect as of January 1, 1997) was 
made available in connection with the same error pursuant to 
notification provided in accordance with such section.

Subtitle E--Employee Who Should Have Been CSRS-Offset Covered, But Who 
                  Was Erroneously CSRS Covered Instead

SEC. 141. AUTOMATIC TRANSFER TO CSRS-OFFSET.

    (a) Applicability.--This subtitle 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.
    (b) Uncorrected Error.--If the error has not been corrected, the 
employee shall be treated in the same way as if such employee had 
instead been CSRS-Offset covered, effective retroactive to the 
effective date of such error.
    (c) Corrected Error.--If the error has been corrected, the 
correction shall (to the extent not already carried out) be made 
effective retroactive to the effective date of such error.

SEC. 142. EFFECT OF TRANSFER.

    The effect of a transfer under section 141 shall be as set forth in 
regulations which the Office of Personnel Management shall prescribe 
consistent with section 104.

  Subtitle F--Employee Who Should Have Been CSRS Covered, But Who Was 
                Erroneously CSRS-Offset Covered Instead

SEC. 151. ELECTIONS.

    (a) Applicability.--This subtitle 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.
    (b) Uncorrected Error.--If, at the time of making an election under 
this section, the retirement coverage error described in subsection (a) 
has not been corrected, the employee affected by such error may elect--
            (1) to be CSRS covered instead; or
            (2) to remain CSRS-Offset covered.
    (c) Corrected Error.--If, at the time of making an election under 
this section, the retirement coverage error described in subsection (a) 
has been corrected, the employee affected by such error may elect--
            (1) to be CSRS-Offset covered instead; or
            (2) to remain CSRS covered.
    (d) Default Rule.--If the employee is given written notice in 
accordance with section 201 as to the availability of an election under 
this section, but does not make any such election within the 6-month 
period beginning on the date on which such notice is so given, the 
option under subsection (b)(2) or (c)(2), as applicable, shall be 
deemed to have been elected on the last day of such period.
    (e) Retroactive Effect.--An election under this section (including 
an election by default, and an election to remain covered by the 
retirement system by which the electing individual is covered as of the 
date of the election) shall be effective retroactive to the effective 
date of the retirement coverage error (as referred to in subsection 
(a)) to which such election relates.

SEC. 152. EFFECT OF AN ELECTION TO BE TRANSFERRED FROM CSRS-OFFSET TO 
              CSRS TO CORRECT THE RETIREMENT COVERAGE ERROR.

    (a) Applicability.--This section shall apply in the case of any 
employee affected by an error described in section 151(a) who elects 
the option available to such employee under section 151(b)(1).
    (b) Makeup Contributions to the CSRDF.--
            (1) In general.--Upon notification that an employee has 
        made an election under this section, the agency in or under 
        which such employee is employed shall promptly pay to the 
        CSRDF, in a lump sum, an amount equal to the amount by which--
                    (A) the amount that should have been deducted and 
                withheld from the pay of the employee for the period of 
                erroneous coverage involved under section 8334 of title 
                5, United States Code (by virtue of being CSRS 
                covered), exceeds
                    (B) any nonrefunded amounts actually deducted and 
                withheld from the pay of the employee for the period of 
                erroneous coverage involved under such section 
                (pursuant to CSRS-Offset coverage).
            (2) Agency to be reimbursed for certain amounts.--
                    (A) In general.--The employee for whom the payment 
                under paragraph (1) is made shall repay to the agency 
                (referred to in paragraph (1)) an amount equal to the 
                OASDI employee taxes refunded or refundable to such 
                employee for any portion of the period of erroneous 
                coverage involved (computed in such manner as the 
                Director of the Office of Personnel Management, with 
                the concurrence of the Commissioner of Social Security, 
                shall by regulation prescribe), not to exceed the 
                amount described in paragraph (1)(A).
                    (B) Right of recovery; waiver.--If the employee 
                fails to repay the amount required under subparagraph 
(A), a sum equal to the amount outstanding is recoverable by the 
Government from the employee (or the employee's estate, if applicable) 
by--
                            (i) setoff against accrued pay, 
                        compensation, amount of retirement credit, or 
                        another amount due the employee from the 
                        Government; and
                            (ii) such other method as is provided by 
                        law for the recovery of amounts owing to the 
                        Government.
                The head of the agency concerned may waive, in whole or 
                in part, a right of recovery under this paragraph if it 
                is shown that recovery would be against equity and good 
                conscience or against the public interest.
                    (C) Treatment of amounts repaid or recovered.--Any 
                amount repaid by, or recovered from, an individual (or 
                an estate) under this paragraph shall be credited to 
                the appropriation, fund, or account from which the 
                amount involved was originally paid.

SEC. 153. EFFECT OF AN ELECTION TO BE RESTORED TO CSRS-OFFSET AFTER 
              HAVING BEEN CORRECTED TO CSRS.

    (a) Applicability.--This section shall apply in the case of any 
employee affected by an error described in section 151(a) who elects 
the option available to such employee under section 151(c)(1).
    (b) Disposition of Contributions to the CSRDF.--In the case of an 
employee described in subsection (a), the provisions of section 102(b) 
shall apply, except that, in applying such provisions--
            (1) ``the applicable provisions of section 8334'' shall be 
        substituted for ``section 8422'' in paragraph (1)(B)(ii) 
        thereof; and
            (2) ``the applicable provisions of section 8334'' shall be 
        substituted for ``section 8423'' in paragraph (2)(B)(ii) 
        thereof.

   Subtitle G--Additional Provisions Relating to Government Agencies

SEC. 161. REPAYMENT REQUIRED IN CERTAIN SITUATIONS.

    (a) In General.--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 Act unless repayment of the amount so 
received by such individual is waived in whole or in part by the Office 
of Personnel Management, and any amount not waived is repaid.
    (b) Regulations.--Any repayment under this section shall be made in 
accordance with regulations prescribed by the Office.

SEC. 162. EQUITABLE SHARING OF AMOUNTS PAYABLE TO OR FROM THE 
              GOVERNMENT IF MORE THAN ONE AGENCY INVOLVED.

    The Office of Personnel Management shall by regulation prescribe 
rules under which, in the case of an employee who has been employed in 
or under more than 1 agency since the date of the retirement coverage 
error involved (and before its rectification under this Act), any 
contributions or other amounts required to be paid to or from the then 
current employing agency (other than lost earnings under section 
163(a)(2)) shall be equitably allocated between or among the 
appropriate agencies.

SEC. 163. PROVISIONS RELATING TO THE ORIGINAL RESPONSIBLE AGENCY.

    (a) Obligations of the Original Responsible Agency.--
            (1) Expenses for services of financial advisor.--The Office 
        of Personnel Management shall by regulation prescribe rules 
        under which, in the case of any employee eligible to make an 
        election under this Act, the original responsible agency (as 
        determined under succeeding provisions of this section) shall 
        pay (or make reimbursement for) any reasonable expenses 
        incurred by such employee for services received from any 
        licensed financial or legal consultant or advisor in connection 
        with such election.
            (2) Special rules.--Such regulations shall also include 
        provisions to ensure that, to the extent lost earnings under 
        the Thrift Savings Fund are involved in connection with a 
        particular error, the original responsible agency--
                    (A) shall pay (or reimburse any other agency that 
                pays) any amounts to the Thrift Savings Fund 
                representing lost earnings with respect to such error; 
                and
                    (B) shall be entitled to receive (directly from the 
                Thrift Savings Fund or through transfer from another 
                agency) any amounts paid out of the Thrift Savings Fund 
                representing a refund of lost earnings to which the 
                Government is entitled with respect to such error.
    (b) Original Responsible Agency Defined.--For purposes of this Act, 
the term ``original responsible agency'', with respect to a retirement 
coverage error affecting an employee, means--
            (1) except in the situation described in paragraph (2), the 
        agency determined by the Office of Personnel Management to have 
        made the initial retirement coverage error (including one made 
        before January 1, 1984); or
            (2) if the error is attributable, in whole or in part, to 
        an erroneous regulation promulgated by the Office of Personnel 
        Management, such Office.
    (c) Procedures for Identifying the Original Responsible Agency.--
            (1) In general.--For purposes of this section, the original 
        responsible agency, in any situation to which this section 
        applies, shall be identified by the Office of Personnel 
        Management in accordance with regulations which the Office 
        shall prescribe.
            (2) Finality.--A determination made by the Office under 
        this subsection shall be final and not subject to any review.
    (d) If Original Responsible Agency No Longer Exists.--If the agency 
which (before the application of this subsection) is identified as the 
original responsible agency no longer exists (whether because of a 
reorganization or otherwise)--
            (1) the successor agency (as determined under regulations 
        prescribed by the Office) shall be treated as the original 
        responsible agency; or
            (2) if none, this section shall be applied by substituting 
        the CSRDF for the original responsible agency.
    (e) Source of Payments If Error Due to Erroneous OPM Regulations.--
In any case in which the Office of Personnel Management is the original 
responsible agency by reason of subsection (b)(2), any amounts payable 
to or from the Office under this section shall be payable to or from 
the CSRDF.

                      TITLE II--GENERAL PROVISIONS

SEC. 201. IDENTIFICATION AND NOTIFICATION REQUIREMENTS.

    (a) In General.--The Office of Personnel Management shall prescribe 
regulations under which Government agencies shall take such measures as 
may be necessary to ensure that all individuals who are (or have been) 
affected by a retirement coverage error giving rise to any election or 
automatic change in retirement coverage under this Act shall be 
promptly identified and notified in accordance with this section.
    (b) Matter To Be Included in Notice to Individuals.--Any notice 
furnished under this section shall be made in writing and shall include 
at least the following:
            (1) Description of error.--A description of the error 
        involved, including a clear and concise explanation as to why 
        the original retirement coverage determination was erroneous, 
        citations to (and a summary description of) the pertinent 
        provisions of law, and how that determination should instead 
        have been made.
            (2) Method for rectification.--How the error is to be 
        rectified under this Act, including whether rectification will 
        be achieved through an automatic change in retirement coverage 
        (and, if so, the time, form, and manner in which that change 
        will be effected) or an election.
            (3) Election procedures, etc.--If an election is provided 
        under this Act, all relevant information as to how such an 
        election may be made, the options available, the differences 
        between those respective options (as further specified in 
        succeeding provisions of this subsection), and the consequences 
        of failing to make a timely election.
            (4) Accrued benefits, etc.--With respect to the (or each) 
        retirement system by which the individual is then covered 
        (disregarding the Thrift Savings Plan), and to the extent 
        applicable:
                    (A) A brief summary of any benefits accrued.
                    (B) The amount of employee contributions made to 
                date and the effect of any applicable disposition rules 
                relating thereto (including provisions relating to 
                excess amounts or shortfalls).
                    (C) The amount of any Government contributions made 
                to date and the effect of any applicable disposition 
                rules relating thereto (including provisions relating 
                to excess amounts or shortfalls).
            (5) Thrift savings fund.--With respect to the Thrift 
        Savings Fund, the balance that then is (or would be) credited 
        to the individual's account depending on the option chosen, 
        with any such balance to be shown both in the aggregate and 
        broken down by--
                    (A) individual contributions,
                    (B) automatic (1 percent) Government contributions, 
                and
                    (C) matching Government contributions,
        including lost earnings on each and the extent to which any 
        makeup contributions or forfeitures would be involved.
            (6) OASDI benefits.--Such information regarding benefits 
        under title II of the Social Security Act as the Commissioner 
        of Social Security considers appropriate.
            (7) Other information.--Any other information that the 
        Director of the Office of Personnel Management may by 
        regulation prescribe after consultation with the Executive 
        Director of the Federal Retirement Thrift Investment Board and 
        such other agency heads as the Director considers appropriate, 
        including any appeal rights available to the individual.
    (c) Comparisons.--Any amounts required to be included under 
subsection (b)(4) shall, with respect to the respective retirement 
systems involved, be determined--
            (1) as of the date the retirement coverage error was 
        corrected (if applicable);
            (2) as of the then most recent date for which those 
        benefits and amounts are ascertainable, assuming no change in 
        retirement coverage; and
            (3) as of the then most recent date for which those 
        benefits and amounts are ascertainable, assuming the 
        alternative option is chosen.
    (d) Past Errors.--All measures required under this section shall, 
with respect to errors preceding the date specified in section 206(e) 
(relating to the effective date for all regulations prescribed under 
this Act), be completed no later than December 31, 2000.

SEC. 202. INDIVIDUAL APPEAL RIGHTS.

    (a) In General.--An individual aggrieved by a final determination 
under this Act shall be entitled to appeal such determination to the 
Merit Systems Protection Board under section 7701 of title 5, United 
States Code.
    (b) Notification Appeals.--The Office of Personnel Management shall 
by regulation establish procedures under which individuals may bring an 
appeal to the Office with respect to any failure to have been properly 
notified in accordance with section 201. A final determination under 
this subsection shall be appealable under subsection (a).

SEC. 203. INFORMATION TO BE FURNISHED BY GOVERNMENT AGENCIES TO 
              AUTHORITIES ADMINISTERING THIS ACT.

    (a) Applicability.--The authorities identified in this subsection 
are:
            (1) The Director of the Office of Personnel Management.
            (2) The Commissioner of Social Security.
            (3) The Executive Director of the Federal Retirement Thrift 
        Investment Board.
    (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 Act. Upon request of the authority 
involved, the head of the department or agency involved shall furnish 
that information to the requesting authority.
    (c) Limitation; Safeguards.--Each of the respective authorities 
under subsection (a)--
            (1) shall request only such information as that authority 
        considers necessary; and
            (2) shall establish, by regulation or otherwise, 
        appropriate safeguards to ensure that any information obtained 
        under this section shall be used only for the purpose 
        authorized.

SEC. 204. SOCIAL SECURITY RECORDS.

    Notwithstanding any limitations in section 205 of the Social 
Security Act regarding the modification of wage records maintained by 
the Commissioner of Social Security for purposes of title II of such 
Act, the Commissioner of Social Security shall modify the wage record 
of each employee affected by a retirement coverage error to change, 
add, or delete any entry regarding service as an employee to the extent 
necessary to carry out the purposes of this Act or the Social Security 
Act.

SEC. 205. CONFORMING AMENDMENTS RESPECTING SOCIAL SECURITY COVERAGE AND 
              OASDI TAXES.

    (a) Social Security Coverage.--Section 210(a)(5)(H) of the Social 
Security Act (42 U.S.C. 410(a)(5)(H)) is amended--
            (1) in clause (i) by striking ``or'' at the end;
            (2) in clause (ii) by striking the semicolon and inserting 
        ``, or''; and
            (3) by adding at the end the following:
                            ``(iii)(I) described in section 111(a)(3) 
                        of the Federal Retirement Coverage Corrections 
                        Act, on or after the effective date of an 
                        election (or deemed election) by such 
                        individual under section 111(b)(2) of such Act,
                            ``(II) described in section 131(a)(1) of 
                        such Act, on or after the effective date of an 
                        election (or deemed election) by such 
                        individual under subsection (b)(2) or (c)(1) of 
                        section 131 of such Act, or
                            ``(III) described in section 151(a) of such 
                        Act, on or after the effective date of an 
                        election (or deemed election) by such 
                        individual under subsection (b)(2) or (c)(1) of 
                        section 151 of such Act;''.
    (b) OASDI Taxes.--Section 3121(b)(5)(H) of the Internal Revenue 
Code of 1986 is amended--
            (1) in clause (i) by striking ``or'' at the end;
            (2) in clause (ii) by striking the semicolon and inserting 
        ``, or''; and
            (3) by adding at the end the following:
                            ``(iii)(I) described in section 111(a)(3) 
                        of the Federal Retirement Coverage Corrections 
                        Act, on or after the effective date of an 
                        election (or deemed election) by such 
                        individual under section 111(b)(2) of such Act,
                            ``(II) described in section 131(a)(1) of 
                        such Act, on or after the effective date of an 
                        election (or deemed election) by such 
                        individual under subsection (b)(2) or (c)(1) of 
                        section 131 of such Act, or
                            ``(III) described in section 151(a) of such 
                        Act, on or after the effective date of an 
                        election (or deemed election) by such 
                        individual under subsection (b)(2) or (c)(1) of 
                        section 151 of such Act;''.

SEC. 206. REGULATIONS.

    (a) In General.--Any regulations necessary to carry out this Act 
shall be prescribed by the Director of the Office of Personnel 
Management, the Executive Director of the Federal Retirement Thrift 
Investment Board, the Commissioner of Social Security, the Secretary of 
the Treasury, and any other appropriate authority, with respect to 
matters within their respective areas of jurisdiction.
    (b) Matters To Be Included.--The regulations prescribed by the 
Director of the Office of Personnel Management shall include at least 
the following:
            (1) Former employees, annuitants, and survivor 
        annuitants.--
                    (A) In general.--Provisions under which, to the 
                maximum extent practicable and in appropriate 
                circumstances, any election available to an employee 
                under subtitle A, B, D, or F of title I shall be 
                available to a former employee, annuitant, or survivor 
                annuitant.
                    (B) Subtitle c situations.--Provisions under which 
                subtitle C of title I shall apply in the case of a 
                former employee.
                    (C) Subtitle e situations.--Provisions under which 
                the purposes of this paragraph shall be carried with 
                respect to any situation under subtitle E of title I.
            (2) Former spouses.--Provisions under which appropriate 
        notification shall be afforded to any former spouse affected by 
        a change in retirement coverage pursuant to this Act.
            (3) Procedural requirements.--Provisions establishing the 
        procedural requirements in accordance with which any 
        determinations under this Act (not otherwise addressed in this 
        Act) shall be made, in conformance with the requirements of 
        this Act.
            (4) Authority to make actuarial reduction in annuity by 
        reason of certain unpaid amounts.--Provisions under which any 
        payment required to be made by an individual to the Government 
        in order to make an election under this Act which remains 
        unpaid may be made by a reduction in the appropriate annuity or 
        survivor annuity. The reduction shall, to the extent 
        practicable, be designed so that the present value of the 
        future reduction is actuarially equivalent to the amount so 
        required.
    (c) Definitions.--For purposes of this section--
            (1) the term ``annuitant'' means any individual who is an 
        annuitant as defined by section 8331(9) or 8401(2) of title 5, 
        United States Code; and
            (2) the term ``former employee'' includes any former 
        employee who satisfies the service requirement for title to a 
        deferred annuity under chapter 83 or 84 of such title 5 (as 
        applicable), but--
                    (A) has not attained the minimum age required for 
                title to such an annuity; or
                    (B) has not filed claim therefor.
    (d) Coordination Rule.--In prescribing regulations to carry out 
this Act, the Director of the Office of Personnel Management shall 
consult with--
            (1) the Administrative Office of the United States Courts;
            (2) the Clerk of the House of Representatives;
            (3) the Sergeant at Arms and Doorkeeper of the Senate; and
            (4) other appropriate officers or authorities.
    (e) Effective Date.--All regulations necessary to carry out this 
Act shall take effect as of the first day of the first month beginning 
after the end of the 6-month period beginning on the date of enactment 
of this Act.

SEC. 207. ALL ELECTIONS TO BE APPROVED BY OPM.

    Notwithstanding any other provision of this Act, no election under 
this Act (other than an election by default) may be given effect until 
the Office of Personnel Management has determined, in writing, that 
such election is in compliance with the requirements of this Act.

SEC. 208. ADDITIONAL TRANSFERS TO OASDI TRUST FUNDS IN CERTAIN CASES.

    If the Commissioner of Social Security determines that the payment 
of the OASDI taxes described in this Act did not result in a credit to 
the OASDI trust funds of an equal amount, the Commissioner of Social 
Security shall notify the Secretary of the Treasury of the amount of 
any shortfall. Promptly upon receiving such notification, the Secretary 
of the Treasury shall transfer an amount equal to such shortfall from 
the general fund of the Treasury to the OASDI trust funds.

SEC. 209. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Amendment Relating to Limitation on Sources from which 
Contributions to the Thrift Savings Fund Are Allowed.--Section 8432(h) 
of title 5, United States Code, is amended by striking ``title.'' and 
inserting ``title or the Federal Retirement Coverage Corrections 
Act.''.
    (b) Description of Amounts Comprising the Thrift Savings Fund.--
Section 8437(b) of title 5, United States Code, is amended by striking 
``expenses).'' and inserting ``expenses), as well as contributions 
under the Federal Retirement Coverage Corrections Act (and lost 
earnings made up under such Act).''.
    (c) Administrative Expenses.--
            (1) Thrift savings plan.--Section 8437(d) of title 5, 
        United States Code, is amended by inserting ``(including the 
        provisions of the Federal Retirement Coverage Corrections Act 
        that relate to this subchapter)'' after ``this subchapter''.
            (2) CSRS, csrs-offset, fers.--Section 8348(a)(2) of title 
        5, United States Code, is amended by striking ``statutes;'' and 
        inserting ``statutes (including the provisions of the Federal 
        Retirement Coverage Corrections Act that relate to this 
        subchapter);''.
            (3) MSPB.--Section 8348(a)(3) of title 5, United States 
        Code, is amended by striking ``title.'' and inserting ``title 
        and the Federal Retirement Coverage Corrections Act.''.

                      TITLE III--OTHER PROVISIONS

SEC. 301. PROVISIONS TO PERMIT CONTINUED CONFORMITY OF OTHER FEDERAL 
              RETIREMENT SYSTEMS.

    (a) Foreign Service.--Sections 827 and 851 of the Foreign Service 
Act of 1980 (22 U.S.C. 4067 and 4071) shall apply with respect to this 
Act in the same manner as if this Act were part of--
            (1) the Civil Service Retirement System, to the extent this 
        Act relates to the Civil Service Retirement System; and
            (2) the Federal Employees' Retirement System, to the extent 
        this Act relates to the Federal Employees' Retirement System.
    (b) Central Intelligence Agency.--Sections 292 and 301 of the 
Central Intelligence Agency Retirement Act (50 U.S.C. 2141 and 2151) 
shall apply with respect to this Act in the same manner as if this Act 
were part of--
            (1) the Civil Service Retirement System, to the extent this 
        Act relates to the Civil Service Retirement System; and
            (2) the Federal Employees' Retirement System, to the extent 
        this Act relates to the Federal Employees' Retirement System.

SEC. 302. GOVERNMENT CONTRIBUTIONS PAYABLE FROM THE CSRDF.

    (a) In General.--Notwithstanding any other provision of this Act or 
any other provision of law, all amounts for which any Government agency 
would otherwise be liable under this Act shall instead be paid from the 
CSRDF, subject to subsection (b).
    (b) Exceptions.--This section shall not apply with respect to any 
amount for which any Government agency would otherwise be liable--
            (1) by reason of section 301; or
            (2) by reason of any retirement coverage error as to which 
        the notification required under section 201 is not given before 
        January 1, 2003.
    (c) Amortization.--For purposes of section 8348(f) of title 5, 
United States Code, any unfunded liability created by this section (as 
determined by the Office of Personnel Management) shall be considered a 
new benefit payable from the CSRDF.

SEC. 303. INDIVIDUAL RIGHT OF ACTION PRESERVED FOR AMOUNTS NOT 
              OTHERWISE PROVIDED FOR UNDER THIS ACT.

    Nothing in this Act 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 Act).

                        TITLE IV--TAX PROVISIONS

SEC. 401. TAX PROVISIONS.

    (a) Plan Qualification.--No retirement plan of the United States 
(or any agency thereof) shall fail to be treated as a qualified plan 
under the Internal Revenue Code of 1986 by reason of any action taken 
under this Act.
    (b) Transfers.--For purposes of the Internal Revenue Code of 1986, 
no amount shall be includible in the gross income of any individual by 
reason of any direct transfer under this Act between funds or any 
Government contribution under this Act to any fund or account.
    (c) Distribution of Excess CSRS Contributions.--Section 72(t) of 
the Internal Revenue Code of 1986 (relating to 10-percent additional 
tax on early distributions from qualified retirement plans) shall not 
apply to the distribution of the excess described in section 
102(b)(1)(B) of this Act or to any other refund paid under this Act 
from the Civil Service Retirement and Disability Fund.
                                 <all>