[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4040 Enrolled Bill (ENR)]

        H.R.4040

                       One Hundred Sixth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
             the twenty-fourth day of January, two thousand


                                 An Act


 
 To amend title 5, United States Code, to provide for the establishment 
 of a program under which long-term care insurance is made available to 
 Federal employees, members of the uniformed services, and civilian and 
  military retirees, provide for the correction of retirement coverage 
 errors under chapters 83 and 84 of such title, and for other purposes.

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

               TITLE I--FEDERAL LONG-TERM CARE INSURANCE

SEC. 1001. SHORT TITLE.

    This title may be cited as the ``Long-Term Care Security Act''.

SEC. 1002. LONG-TERM CARE INSURANCE.

    (a) In General.--Subpart G of part III of title 5, United States 
Code, is amended by adding at the end the following:

                 ``CHAPTER 90--LONG-TERM CARE INSURANCE

``Sec.
``9001. Definitions.
``9002. Availability of insurance.
``9003. Contracting authority.
``9004. Financing.
``9005. Preemption.
``9006. Studies, reports, and audits.
``9007. Jurisdiction of courts.
``9008. Administrative functions.
``9009. Cost accounting standards.

``Sec. 9001. Definitions

    For purposes of this chapter:
        ``(1) Employee.--The term `employee' means--
            ``(A) an employee as defined by section 8901(1);
            ``(B) an individual described in section 2105(e); and
            ``(C) an individual employed by the Tennessee Valley 
        Authority,
    but does not include an individual employed by the government of 
    the District of Columbia.
        ``(2) Annuitant.--The term `annuitant' has the meaning such 
    term would have under paragraph (3) of section 8901 if, for 
    purposes of such paragraph, the term `employee' were considered to 
    have the meaning given to it under paragraph (1) of this 
    subsection.
        ``(3) Member of the uniformed services.--The term `member of 
    the uniformed services' means a member of the uniformed services, 
    other than a retired member of the uniformed services, who is--
            ``(A) on active duty or full-time National Guard duty for a 
        period of more than 30 days; and
            ``(B) a member of the Selected Reserve.
        ``(4) Retired member of the uniformed services.--The term 
    `retired member of the uniformed services' means a member or former 
    member of the uniformed services entitled to retired or retainer 
    pay, including a member or former member retired under chapter 1223 
    of title 10 who has attained the age of 60 and who satisfies such 
    eligibility requirements as the Office of Personnel Management 
    prescribes under section 9008.
        ``(5) Qualified relative.--The term `qualified relative' means 
    each of the following:
            ``(A) The spouse of an individual described in paragraph 
        (1), (2), (3), or (4).
            ``(B) A parent, stepparent, or parent-in-law of an 
        individual described in paragraph (1) or (3).
            ``(C) A child (including an adopted child, a stepchild, or, 
        to the extent the Office of Personnel Management by regulation 
        provides, a foster child) of an individual described in 
        paragraph (1), (2), (3), or (4), if such child is at least 18 
        years of age.
            ``(D) An individual having such other relationship to an 
        individual described in paragraph (1), (2), (3), or (4) as the 
        Office may by regulation prescribe.
        ``(6) Eligible individual.--The term `eligible individual' 
    refers to an individual described in paragraph (1), (2), (3), (4), 
    or (5).
        ``(7) Qualified carrier.--The term `qualified carrier' means an 
    insurance company (or consortium of insurance companies) that is 
    licensed to issue long-term care insurance in all States, taking 
    any subsidiaries of such a company into account (and, in the case 
    of a consortium, considering the member companies and any 
    subsidiaries thereof, collectively).
        ``(8) State.--The term `State' includes the District of 
    Columbia.
        ``(9) Qualified long-term care insurance contract.--The term 
    `qualified long-term care insurance contract' has the meaning given 
    such term by section 7702B of the Internal Revenue Code of 1986.
        ``(10) Appropriate secretary.--The term `appropriate Secretary' 
    means--
            ``(A) except as otherwise provided in this paragraph, the 
        Secretary of Defense;
            ``(B) with respect to the Coast Guard when it is not 
        operating as a service of the Navy, the Secretary of 
        Transportation;
            ``(C) with respect to the commissioned corps of the 
        National Oceanic and Atmospheric Administration, the Secretary 
        of Commerce; and
            ``(D) with respect to the commissioned corps of the Public 
        Health Service, the Secretary of Health and Human Services.

``Sec. 9002. Availability of insurance

    ``(a) In General.--The Office of Personnel Management shall 
establish and, in consultation with the appropriate Secretaries, 
administer a program through which an individual described in paragraph 
(1), (2), (3), (4), or (5) of section 9001 may obtain long-term care 
insurance coverage under this chapter for such individual.
    ``(b) General Requirements.--Long-term care insurance may not be 
offered under this chapter unless--
        ``(1) the only coverage provided is under qualified long-term 
    care insurance contracts; and
        ``(2) each insurance contract under which any such coverage is 
    provided is issued by a qualified carrier.
    ``(c) Documentation Requirement.--As a condition for obtaining 
long-term care insurance coverage under this chapter based on one's 
status as a qualified relative, an applicant shall provide 
documentation to demonstrate the relationship, as prescribed by the 
Office.
    ``(d) Underwriting Standards.--
        ``(1) Disqualifying condition.--Nothing in this chapter shall 
    be considered to require that long-term care insurance coverage be 
    made available in the case of any individual who would be eligible 
    for benefits immediately.
        ``(2) Spousal parity.--For the purpose of underwriting 
    standards, a spouse of an individual described in paragraph (1), 
    (2), (3), or (4) of section 9001 shall, as nearly as practicable, 
    be treated like that individual.
        ``(3) Guaranteed issue.--Nothing in this chapter shall be 
    considered to require that long-term care insurance coverage be 
    guaranteed to an eligible individual.
        ``(4) Requirement that contract be fully insured.--In addition 
    to the requirements otherwise applicable under section 9001(9), in 
    order to be considered a qualified long-term care insurance 
    contract for purposes of this chapter, a contract must be fully 
    insured, whether through reinsurance with other companies or 
    otherwise.
        ``(5) Higher standards allowable.--Nothing in this chapter 
    shall, in the case of an individual applying for long-term care 
    insurance coverage under this chapter after the expiration of such 
    individual's first opportunity to enroll, preclude the application 
    of underwriting standards more stringent than those that would have 
    applied if that opportunity had not yet expired.
    ``(e) Guaranteed Renewability.--The benefits and coverage made 
available to eligible individuals under any insurance contract under 
this chapter shall be guaranteed renewable (as defined by section 7A(2) 
of the model regulations described in section 7702B(g)(2) of the 
Internal Revenue Code of 1986), including the right to have insurance 
remain in effect so long as premiums continue to be timely made. 
However, the authority to revise premiums under this chapter shall be 
available only on a class basis and only to the extent otherwise 
allowable under section 9003(b).

``Sec. 9003. Contracting authority

    ``(a) In General.--The Office of Personnel Management shall, 
without regard to section 5 of title 41 or any other statute requiring 
competitive bidding, contract with one or more qualified carriers for a 
policy or policies of long-term care insurance. The Office shall ensure 
that each resulting contract (hereafter in this chapter referred to as 
a `master contract') is awarded on the basis of contractor 
qualifications, price, and reasonable competition.
    ``(b) Terms and Conditions.--
        ``(1) In general.--Each master contract under this chapter 
    shall contain--
            ``(A) a detailed statement of the benefits offered 
        (including any maximums, limitations, exclusions, and other 
        definitions of benefits);
            ``(B) the premiums charged (including any limitations or 
        other conditions on their subsequent adjustment);
            ``(C) the terms of the enrollment period; and
            ``(D) such other terms and conditions as may be mutually 
        agreed to by the Office and the carrier involved, consistent 
        with the requirements of this chapter.
        ``(2) Premiums.--Premiums charged under each master contract 
    entered into under this section shall reasonably and equitably 
    reflect the cost of the benefits provided, as determined by the 
    Office. The premiums shall not be adjusted during the term of the 
    contract unless mutually agreed to by the Office and the carrier.
        ``(3) Nonrenewability.--Master contracts under this chapter may 
    not be made automatically renewable.
    ``(c) Payment of Required Benefits; Dispute Resolution.--
        ``(1) In general.--Each master contract under this chapter 
    shall require the carrier to agree--
            ``(A) to provide payments or benefits to an eligible 
        individual if such individual is entitled thereto under the 
        terms of the contract; and
            ``(B) with respect to disputes regarding claims for 
        payments or benefits under the terms of the contract--
                ``(i) to establish internal procedures designed to 
            expeditiously resolve such disputes; and
                ``(ii) to establish, for disputes not resolved through 
            procedures under clause (i), procedures for one or more 
            alternative means of dispute resolution involving 
            independent third-party review under appropriate 
            circumstances by entities mutually acceptable to the Office 
            and the carrier.
        ``(2) Eligibility.--A carrier's determination as to whether or 
    not a particular individual is eligible to obtain long-term care 
    insurance coverage under this chapter shall be subject to review 
    only to the extent and in the manner provided in the applicable 
    master contract.
        ``(3) Other claims.--For purposes of applying the Contract 
    Disputes Act of 1978 to disputes arising under this chapter between 
    a carrier and the Office--
            ``(A) the agency board having jurisdiction to decide an 
        appeal relative to such a dispute shall be such board of 
        contract appeals as the Director of the Office of Personnel 
        Management shall specify in writing (after appropriate 
        arrangements, as described in section 8(c) of such Act); and
            ``(B) the district courts of the United States shall have 
        original jurisdiction, concurrent with the United States Court 
        of Federal Claims, of any action described in section 10(a)(1) 
        of such Act relative to such a dispute.
        ``(4) Rule of construction.--Nothing in this chapter shall be 
    considered to grant authority for the Office or a third-party 
    reviewer to change the terms of any contract under this chapter.
    ``(d) Duration.--
        ``(1) In general.--Each master contract under this chapter 
    shall be for a term of 7 years, unless terminated earlier by the 
    Office in accordance with the terms of such contract. However, the 
    rights and responsibilities of the enrolled individual, the 
    insurer, and the Office (or duly designated third-party 
    administrator) under such contract shall continue with respect to 
    such individual until the termination of coverage of the enrolled 
    individual or the effective date of a successor contract thereto.
        ``(2) Exception.--
            ``(A) Shorter duration.--In the case of a master contract 
        entered into before the end of the period described in 
        subparagraph (B), paragraph (1) shall be applied by 
        substituting `ending on the last day of the 7-year period 
        described in paragraph (2)(B)' for `of 7 years'.
            ``(B) Definition.--The period described in this 
        subparagraph is the 7-year period beginning on the earliest 
        date as of which any long-term care insurance coverage under 
        this chapter becomes effective.
        ``(3) Congressional notification.--No later than 180 days after 
    receiving the second report required under section 9006(c), the 
    President (or his designee) shall submit to the Committees on 
    Government Reform and on Armed Services of the House of 
    Representatives and the Committees on Governmental Affairs and on 
    Armed Services of the Senate, a written recommendation as to 
    whether the program under this chapter should be continued without 
    modification, terminated, or restructured. During the 180-day 
    period following the date on which the President (or his designee) 
    submits the recommendation required under the preceding sentence, 
    the Office of Personnel Management may not take any steps to rebid 
    or otherwise contract for any coverage to be available at any time 
    following the expiration of the 7-year period described in 
    paragraph (2)(B).
        ``(4) Full portability.--Each master contract under this 
    chapter shall include such provisions as may be necessary to ensure 
    that, once an individual becomes duly enrolled, long-term care 
    insurance coverage obtained by such individual pursuant to that 
    enrollment shall not be terminated due to any change in status 
    (such as separation from Government service or the uniformed 
    services) or ceasing to meet the requirements for being considered 
    a qualified relative (whether as a result of dissolution of 
    marriage or otherwise).

``Sec. 9004. Financing

    ``(a) In General.--Each eligible individual obtaining long-term 
care insurance coverage under this chapter shall be responsible for 100 
percent of the premiums for such coverage.
    ``(b) Withholdings.--
        ``(1) In general.--The amount necessary to pay the premiums for 
    enrollment may--
            ``(A) in the case of an employee, be withheld from the pay 
        of such employee;
            ``(B) in the case of an annuitant, be withheld from the 
        annuity of such annuitant;
            ``(C) in the case of a member of the uniformed services 
        described in section 9001(3), be withheld from the pay of such 
        member; and
            ``(D) in the case of a retired member of the uniformed 
        services described in section 9001(4), be withheld from the 
        retired pay or retainer pay payable to such member.
        ``(2) Voluntary withholdings for qualified relatives.--
    Withholdings to pay the premiums for enrollment of a qualified 
    relative may, upon election of the appropriate eligible individual 
    (described in section 9001(1)-(4)), be withheld under paragraph (1) 
    to the same extent and in the same manner as if enrollment were for 
    such individual.
    ``(c) Direct Payments.--All amounts withheld under this section 
shall be paid directly to the carrier.
    ``(d) Other Forms of Payment.--Any enrollee who does not elect to 
have premiums withheld under subsection (b) or whose pay, annuity, or 
retired or retainer pay (as referred to in subsection (b)(1)) is 
insufficient to cover the withholding required for enrollment (or who 
is not receiving any regular amounts from the Government, as referred 
to in subsection (b)(1), from which any such withholdings may be made, 
and whose premiums are not otherwise being provided for under 
subsection (b)(2)) shall pay an amount equal to the full amount of 
those charges directly to the carrier.
    ``(e) Separate Accounting Requirement.--Each carrier participating 
under this chapter shall maintain records that permit it to account for 
all amounts received under this chapter (including investment earnings 
on those amounts) separate and apart from all other funds.
    ``(f) Reimbursements.--
        ``(1) Reasonable initial costs.--
            ``(A) In general.--The Employees' Life Insurance Fund is 
        available, without fiscal year limitation, for reasonable 
        expenses incurred by the Office of Personnel Management in 
        administering this chapter before the start of the 7-year 
        period described in section 9003(d)(2)(B), including reasonable 
        implementation costs.
            ``(B) Reimbursement requirement.--Such Fund shall be 
        reimbursed, before the end of the first year of that 7-year 
        period, for all amounts obligated or expended under 
        subparagraph (A) (including lost investment income). Such 
        reimbursement shall be made by carriers, on a pro rata basis, 
        in accordance with appropriate provisions which shall be 
        included in master contracts under this chapter.
        ``(2) Subsequent costs.--
            ``(A) In general.--There is hereby established in the 
        Employees' Life Insurance Fund a Long-Term Care Administrative 
        Account, which shall be available to the Office, without fiscal 
        year limitation, to defray reasonable expenses incurred by the 
        Office in administering this chapter after the start of the 7-
        year period described in section 9003(d)(2)(B).
            ``(B) Reimbursement requirement.--Each master contract 
        under this chapter shall include appropriate provisions under 
        which the carrier involved shall, during each year, make such 
        periodic contributions to the Long-Term Care Administrative 
        Account as necessary to ensure that the reasonable anticipated 
        expenses of the Office in administering this chapter during 
        such year (adjusted to reconcile for any earlier overestimates 
        or underestimates under this subparagraph) are defrayed.

``Sec. 9005. Preemption

    ``The terms of any contract under this chapter which relate to the 
nature, provision, or extent of coverage or benefits (including 
payments with respect to benefits) shall supersede and preempt any 
State or local law, or any regulation issued thereunder, which relates 
to long-term care insurance or contracts.

``Sec. 9006. Studies, reports, and audits

    ``(a) Provisions Relating to Carriers.--Each master contract under 
this chapter shall contain provisions requiring the carrier--
        ``(1) to furnish such reasonable reports as the Office of 
    Personnel Management determines to be necessary to enable it to 
    carry out its functions under this chapter; and
        ``(2) to permit the Office and representatives of the General 
    Accounting Office to examine such records of the carrier as may be 
    necessary to carry out the purposes of this chapter.
    ``(b) Provisions Relating to Federal Agencies.--Each Federal agency 
shall keep such records, make such certifications, and furnish the 
Office, the carrier, or both, with such information and reports as the 
Office may require.
    ``(c) Reports by the General Accounting Office.--The General 
Accounting Office shall prepare and submit to the President, the Office 
of Personnel Management, and each House of Congress, before the end of 
the third and fifth years during which the program under this chapter 
is in effect, a written report evaluating such program. Each such 
report shall include an analysis of the competitiveness of the program, 
as compared to both group and individual coverage generally available 
to individuals in the private insurance market. The Office shall 
cooperate with the General Accounting Office to provide periodic 
evaluations of the program.

``Sec. 9007. Jurisdiction of courts

    ``The district courts of the United States have original 
jurisdiction of a civil action or claim described in paragraph (1) or 
(2) of section 9003(c), after such administrative remedies as required 
under such paragraph (1) or (2) (as applicable) have been exhausted, 
but only to the extent judicial review is not precluded by any dispute 
resolution or other remedy under this chapter.

``Sec. 9008. Administrative functions

    ``(a) In General.--The Office of Personnel Management shall 
prescribe regulations necessary to carry out this chapter.
    ``(b) Enrollment Periods.--The Office shall provide for periodic 
coordinated enrollment, promotion, and education efforts in 
consultation with the carriers.
    ``(c) Consultation.--Any regulations necessary to effect the 
application and operation of this chapter with respect to an eligible 
individual described in paragraph (3) or (4) of section 9001, or a 
qualified relative thereof, shall be prescribed by the Office in 
consultation with the appropriate Secretary.
    ``(d) Informed Decisionmaking.--The Office shall ensure that each 
eligible individual applying for long-term care insurance under this 
chapter is furnished the information necessary to enable that 
individual to evaluate the advantages and disadvantages of obtaining 
long-term care insurance under this chapter, including the following:
        ``(1) The principal long-term care benefits and coverage 
    available under this chapter, and how those benefits and coverage 
    compare to the range of long-term care benefits and coverage 
    otherwise generally available.
        ``(2) Representative examples of the cost of long-term care, 
    and the sufficiency of the benefits available under this chapter 
    relative to those costs. The information under this paragraph shall 
    also include--
            ``(A) the projected effect of inflation on the value of 
        those benefits; and
            ``(B) a comparison of the inflation-adjusted value of those 
        benefits to the projected future costs of long-term care.
        ``(3) Any rights individuals under this chapter may have to 
    cancel coverage, and to receive a total or partial refund of 
    premiums. The information under this paragraph shall also include--
            ``(A) the projected number or percentage of individuals 
        likely to fail to maintain their coverage (determined based on 
        lapse rates experienced under similar group long-term care 
        insurance programs and, when available, this chapter); and
            ``(B)(i) a summary description of how and when premiums for 
        long-term care insurance under this chapter may be raised;
            ``(ii) the premium history during the last 10 years for 
        each qualified carrier offering long-term care insurance under 
        this chapter; and
            ``(iii) if cost increases are anticipated, the projected 
        premiums for a typical insured individual at various ages.
        ``(4) The advantages and disadvantages of long-term care 
    insurance generally, relative to other means of accumulating or 
    otherwise acquiring the assets that may be needed to meet the costs 
    of long-term care, such as through tax-qualified retirement 
    programs or other investment vehicles.

``Sec. 9009. Cost accounting standards

    ``The cost accounting standards issued pursuant to section 26(f) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 422(f)) shall 
not apply with respect to a long-term care insurance contract under 
this chapter.''.
    (b) Conforming Amendment.--The analysis for part III of title 5, 
United States Code, is amended by adding at the end of subpart G the 
following:

``90. Long-Term Care Insurance................................
                                                                9001.''.

 SEC. 1003. EFFECTIVE DATE.

    The Office of Personnel Management shall take such measures as may 
be necessary to ensure that long-term care insurance coverage under 
title 5, United States Code, as amended by this title, may be obtained 
in time to take effect not later than the first day of the first 
applicable pay period of the first fiscal year which begins after the 
end of the 18-month period beginning on the date of the enactment of 
this Act.

        TITLE II--FEDERAL RETIREMENT COVERAGE ERRORS CORRECTION

SEC. 2001. SHORT TITLE; TABLE OF CONTENTS.

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

         TITLE II--FEDERAL RETIREMENT COVERAGE ERRORS CORRECTION

Sec. 2001. Short title; table of contents.
Sec. 2002. Definitions.
Sec. 2003. Applicability.
Sec. 2004. Irrevocability of elections.

  Subtitle A--Description of Retirement Coverage Errors to Which This 
           Title Applies and Measures for Their Rectification

 Chapter 1--Employees and Annuitants Who Should Have Been FERS Covered, 
 but Who Were Erroneously CSRS Covered or CSRS-Offset Covered Instead, 
             and Survivors of Such Employees and Annuitants

Sec. 2101. Employees.
Sec. 2102. Annuitants and survivors.

   Chapter 2--Employee Who Should Have Been FERS Covered, CSRS-Offset 
 Covered, or CSRS Covered, but Who Was Erroneously Social Security-Only 
                             Covered Instead

Sec. 2111. Applicability.
Sec. 2112. Correction mandatory.

 Chapter 3--Employee Who Should or Could Have Been Social Security-Only 
  Covered but Who Was Erroneously CSRS-Offset Covered or CSRS Covered 
                                 Instead

Sec. 2121. Employee who should be Social Security-Only covered, but who 
          is erroneously CSRS or CSRS-Offset covered instead.

          Chapter 4--Employee Who Was Erroneously FERS Covered

Sec. 2131. Employee who should be Social Security-Only covered, CSRS 
          covered, or CSRS-Offset covered and is not FERS-Eligible, but 
          who is erroneously FERS covered instead.
Sec. 2132. FERS-Eligible employee who should have been CSRS covered, 
          CSRS-Offset covered, or Social Security-Only covered, but who 
          was erroneously FERS covered instead without an election.
Sec. 2133. Retroactive effect.

 Chapter 5--Employee Who Should Have Been CSRS-Offset Covered, but Who 
                  Was Erroneously CSRS Covered Instead

Sec. 2141. Applicability.
Sec. 2142. Correction mandatory.

   Chapter 6--Employee Who Should Have Been CSRS Covered, but Who Was 
                 Erroneously CSRS-Offset Covered Instead

Sec. 2151. Applicability.
Sec. 2152. Correction mandatory.

                     Subtitle B--General Provisions

Sec. 2201. Identification and notification requirements.
Sec. 2202. Information to be furnished to and by authorities 
          administering this title.
Sec. 2203. Service credit deposits.
Sec. 2204. Provisions related to Social Security coverage of 
          misclassified employees.
Sec. 2205. Thrift Savings Plan treatment for certain individuals.
Sec. 2206. Certain agency amounts to be paid into or remain in the 
          CSRDF.
Sec. 2207. CSRS coverage determinations to be approved by OPM.
Sec. 2208. Discretionary actions by Director.
Sec. 2209. Regulations.

                      Subtitle C--Other Provisions

Sec. 2301. Provisions to authorize continued conformity of other Federal 
          retirement systems.
Sec. 2302. Authorization of payments.
Sec. 2303. Individual right of action preserved for amounts not 
          otherwise provided for under this title.

                       Subtitle D--Effective Date

Sec. 2401. Effective date.

SEC. 2002. DEFINITIONS.

    For purposes of this title:
        (1) Annuitant.--The term ``annuitant'' has the meaning given 
    such term under section 8331(9) or 8401(2) of title 5, United 
    States Code.
        (2) CSRS.--The term ``CSRS'' means the Civil Service Retirement 
    System.
        (3) CSRDF.--The term ``CSRDF'' means the Civil Service 
    Retirement and Disability Fund.
        (4) CSRS covered.--The term ``CSRS covered'', with respect to 
    any service, means service that is subject to the provisions of 
    subchapter III of chapter 83 of title 5, United States Code, other 
    than service subject to section 8334(k) of such title.
        (5) CSRS-offset covered.--The term ``CSRS-Offset 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, and to section 8334(k) of such title.
        (6) Employee.--The term ``employee'' has the meaning given such 
    term under section 8331(1) or 8401(11) of title 5, United States 
    Code.
        (7) Executive director.--The term ``Executive Director of the 
    Federal Retirement Thrift Investment Board'' or ``Executive 
    Director'' means the Executive Director appointed under section 
    8474 of title 5, United States Code.
        (8) FERS.--The term ``FERS'' means the Federal Employees' 
    Retirement System.
        (9) FERS covered.--The term ``FERS covered'', with respect to 
    any service, means service that is subject to chapter 84 of title 
    5, United States Code.
        (10) Former employee.--The term ``former employee'' means an 
    individual who was an employee, but who is not an annuitant.
        (11) OASDI taxes.--The term ``OASDI taxes'' means the OASDI 
    employee tax and the OASDI employer tax.
        (12) OASDI employee tax.--The term ``OASDI employee tax'' means 
    the tax imposed under section 3101(a) of the Internal Revenue Code 
    of 1986 (relating to Old-Age, Survivors and Disability Insurance).
        (13) OASDI employer tax.--The term ``OASDI employer tax'' means 
    the tax imposed under section 3111(a) of the Internal Revenue Code 
    of 1986 (relating to Old-Age, Survivors and Disability Insurance).
        (14) OASDI trust funds.--The term ``OASDI trust funds'' means 
    the Federal Old-Age and Survivors Insurance Trust Fund and the 
    Federal Disability Insurance Trust Fund.
        (15) Office.--The term ``Office'' means the Office of Personnel 
    Management.
        (16) Retirement coverage determination.--The term ``retirement 
    coverage determination'' means a determination by an employee or 
    agent of the Government as to whether a particular type of 
    Government service is CSRS covered, CSRS-Offset covered, FERS 
    covered, or Social Security-Only covered.
        (17) Retirement coverage error.--The term ``retirement coverage 
    error'' means an erroneous retirement coverage determination that 
    was in effect for a minimum period of 3 years of service after 
    December 31, 1986.
        (18) Social security-only covered.--The term ``Social Security-
    Only covered'', with respect to any service, means Government 
    service that--
            (A) constitutes employment under section 210 of the Social 
        Security Act (42 U.S.C. 410); and
            (B)(i) is subject to OASDI taxes; but
            (ii) is not subject to CSRS or FERS.
        (19) Survivor.--The term ``survivor'' has the meaning given 
    such term under section 8331(10) or 8401(28) of title 5, United 
    States Code.
        (20) Thrift savings fund.--The term ``Thrift Savings Fund'' 
    means the Thrift Savings Fund established under section 8437 of 
    title 5, United States Code.

SEC. 2003. APPLICABILITY.

    (a) In General.--This title shall apply with respect to retirement 
coverage errors that occur before, on, or after the date of the 
enactment of this Act.
    (b) Limitation.--Except as otherwise provided in this title, this 
title shall not apply to any erroneous retirement coverage 
determination that was in effect for a period of less than 3 years of 
service after December 31, 1986.

SEC. 2004. IRREVOCABILITY OF ELECTIONS.

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

  Subtitle A--Description of Retirement Coverage Errors to Which This 
           Title Applies and Measures for Their Rectification

CHAPTER 1--EMPLOYEES AND ANNUITANTS WHO SHOULD HAVE BEEN FERS COVERED, 
 BUT WHO WERE ERRONEOUSLY CSRS COVERED OR CSRS-OFFSET COVERED INSTEAD, 
             AND SURVIVORS OF SUCH EMPLOYEES AND ANNUITANTS

SEC. 2101. EMPLOYEES.

    (a) Applicability.--This section shall apply in the case of any 
employee or former employee who should be (or should have been) FERS 
covered but, as a result of a retirement coverage error, is (or was) 
CSRS covered or CSRS-Offset covered instead.
    (b) Uncorrected Error.--
        (1) Applicability.--This subsection applies if the retirement 
    coverage error has not been corrected before the effective date of 
    the regulations described under paragraph (3). As soon as 
    practicable after discovery of the error, and subject to the right 
    of an election under paragraph (2), if CSRS covered or CSRS-Offset 
    covered, such individual shall be treated as CSRS-Offset covered, 
    retroactive to the date of the retirement coverage error.
        (2) Coverage.--
            (A) Election.--Upon written notice of a retirement coverage 
        error, an individual may elect to be CSRS-Offset covered or 
        FERS covered, effective as of the date of the retirement 
        coverage error. Such election shall be made not later than 180 
        days after the date of receipt of such notice.
            (B) Nonelection.--If the individual does not make an 
        election by the date provided under subparagraph (A), a CSRS-
        Offset covered individual shall remain CSRS-Offset covered and 
        a CSRS covered individual shall be treated as CSRS-Offset 
        covered.
        (3) Regulations.--The Office shall prescribe regulations to 
    carry out this subsection.
    (c) Corrected Error.--
        (1) Applicability.--This subsection applies if the retirement 
    coverage error was corrected before the effective date of the 
    regulations described under subsection (b).
        (2) Coverage.--
            (A) Election.--
                (i) CSRS-offset covered.--Not later than 180 days after 
            the date of the enactment of this Act, the Office shall 
            prescribe regulations authorizing individuals to elect, 
            during the 18-month period immediately following the 
            effective date of such regulations, to be CSRS-Offset 
            covered, effective as of the date of the retirement 
            coverage error.
                (ii) Thrift savings fund contributions.--If under this 
            section an individual elects to be CSRS-Offset covered, all 
            employee contributions to the Thrift Savings Fund made 
            during the period of FERS coverage (and earnings on such 
            contributions) may remain in the Thrift Savings Fund in 
            accordance with regulations prescribed by the Executive 
            Director, notwithstanding any limit under title 5, United 
            States Code, that would otherwise be applicable.
            (B) Previous settlement payment.--An individual who 
        previously received a payment ordered by a court or provided as 
        a settlement of claim for losses resulting from a retirement 
        coverage error shall not be entitled to make an election under 
        this subsection unless that amount is waived in whole or in 
        part under section 2208, and any amount not waived is repaid.
            (C) Ineligibility for election.--An individual who, 
        subsequent to correction of the retirement coverage error, 
        received a refund of retirement deductions under section 8424 
        of title 5, United States Code, or a distribution under section 
        8433(b), (c), or (h)(1)(A) of title 5, United States Code, may 
        not make an election under this subsection.
        (3) Corrective action to remain in effect.--If an individual is 
    ineligible to make an election or does not make an election under 
    paragraph (2) before the end of any time limitation under this 
    subsection, the corrective action taken before such time limitation 
    shall remain in effect.

SEC. 2102. ANNUITANTS AND SURVIVORS.

    (a) In General.--This section shall apply in the case of an 
individual who is--
        (1) an annuitant who should have been FERS covered but, as a 
    result of a retirement coverage error, was CSRS covered or CSRS-
    Offset covered instead; or
        (2) a survivor of an employee who should have been FERS covered 
    but, as a result of a retirement coverage error, was CSRS covered 
    or CSRS-Offset covered instead.
    (b) Coverage.--
        (1) Election.--Not later than 180 days after the date of the 
    enactment of this Act, the Office shall prescribe regulations 
    authorizing an individual described under subsection (a) to elect 
    CSRS-Offset coverage or FERS coverage, effective as of the date of 
    the retirement coverage error.
        (2) Time limitation.--An election under this subsection shall 
    be made not later than 18 months after the effective date of the 
    regulations prescribed under paragraph (1).
        (3) Reduced annuity.--
            (A) Amount in account.--If the individual elects CSRS-
        Offset coverage, the amount in the employee's Thrift Savings 
        Fund account under subchapter III of chapter 84 of title 5, 
        United States Code, on the date of retirement that represents 
        the Government's contributions and earnings on those 
        contributions (whether or not such amount was subsequently 
        distributed from the Thrift Savings Fund) will form the basis 
        for a reduction in the individual's annuity, under regulations 
        prescribed by the Office.
            (B) Reduction.--The reduced annuity to which the individual 
        is entitled shall be equal to an amount which, when taken 
        together with the amount referred to in subparagraph (A), would 
        result in the present value of the total being actuarially 
        equivalent to the present value of an unreduced CSRS-Offset 
        annuity that would have been provided the individual.
        (4) Reduced benefit.--If--
            (A) a surviving spouse elects CSRS-Offset benefits; and
            (B) a FERS basic employee death benefit under section 
        8442(b) of title 5, United States Code, was previously paid,
    then the survivor's CSRS-Offset benefit shall be subject to a 
    reduction, under regulations prescribed by the Office. The reduced 
    annuity to which the individual is entitled shall be equal to an 
    amount which, when taken together with the amount of the payment 
    referred to under subparagraph (B) would result in the present 
    value of the total being actuarially equivalent to the present 
    value of an unreduced CSRS-Offset annuity that would have been 
    provided the individual.
        (5) Previous settlement payment.--An individual who previously 
    received a payment ordered by a court or provided as a settlement 
    of claim for losses resulting from a retirement coverage error may 
    not make an election under this subsection unless repayment of that 
    amount is waived in whole or in part under section 2208, and any 
    amount not waived is repaid.
    (c) Nonelection.--If the individual does not make an election under 
subsection (b) before any time limitation under this section, the 
retirement coverage shall be subject to the following rules:
        (1) Corrective action previously taken.--If corrective action 
    was taken before the end of any time limitation under this section, 
    that corrective action shall remain in effect.
        (2) Corrective action not previously taken.--If corrective 
    action was not taken before such time limitation, the employee 
    shall be CSRS-Offset covered, retroactive to the date of the 
    retirement coverage error.

  CHAPTER 2--EMPLOYEE WHO SHOULD HAVE BEEN FERS COVERED, CSRS-OFFSET 
COVERED, OR CSRS COVERED, BUT WHO WAS ERRONEOUSLY SOCIAL SECURITY-ONLY 
                            COVERED INSTEAD

SEC. 2111. APPLICABILITY.

    This chapter shall apply in the case of any employee who--
        (1) should be (or should have been) FERS covered but, as a 
    result of a retirement coverage error, is (or was) Social Security-
    Only covered instead;
        (2) should be (or should have been) CSRS-Offset covered but, as 
    a result of a retirement coverage error, is (or was) Social 
    Security-Only covered instead; or
        (3) should be (or should have been) CSRS covered but, as a 
    result of a retirement coverage error, is (or was) Social Security-
    Only covered instead.

SEC. 2112. CORRECTION MANDATORY.

    (a) Uncorrected Error.--If the retirement coverage error has not 
been corrected, as soon as practicable after discovery of the error, 
such individual shall be covered under the correct retirement coverage, 
effective as of the date of the retirement coverage error.
    (b) Corrected Error.--If the retirement coverage error has been 
corrected, the corrective action previously taken shall remain in 
effect.

CHAPTER 3--EMPLOYEE WHO SHOULD OR COULD HAVE BEEN SOCIAL SECURITY-ONLY 
  COVERED BUT WHO WAS ERRONEOUSLY CSRS-OFFSET COVERED OR CSRS COVERED 
                                INSTEAD

SEC. 2121. EMPLOYEE WHO SHOULD BE SOCIAL SECURITY-ONLY COVERED, BUT WHO 
              IS ERRONEOUSLY CSRS OR CSRS-OFFSET COVERED INSTEAD.

    (a) Applicability.--This section applies in the case of a 
retirement coverage error in which a Social Security-Only covered 
employee was erroneously CSRS covered or CSRS-Offset covered.
    (b) Uncorrected Error.--
        (1) Applicability.--This subsection applies if the retirement 
    coverage error has not been corrected before the effective date of 
    the regulations described in paragraph (3).
        (2) Coverage.--In the case of an individual who is erroneously 
    CSRS covered, as soon as practicable after discovery of the error, 
    and subject to the right of an election under paragraph (3), such 
    individual shall be CSRS-Offset covered, effective as of the date 
    of the retirement coverage error.
        (3) Election.--
            (A) In general.--Upon written notice of a retirement 
        coverage error, an individual may elect to be CSRS-Offset 
        covered or Social Security-Only covered, effective as of the 
        date of the retirement coverage error. Such election shall be 
        made not later than 180 days after the date of receipt of such 
        notice.
            (B) Nonelection.--If the individual does not make an 
        election before the date provided under subparagraph (A), the 
        individual shall remain CSRS-Offset covered.
            (C) Regulations.--The Office shall prescribe regulations to 
        carry out this paragraph.
    (c) Corrected Error.--
        (1) Applicability.--This subsection applies if the retirement 
    coverage error was corrected before the effective date of the 
    regulations described under subsection (b)(3).
        (2) Election.--Not later than 180 days after the date of the 
    enactment of this Act, the Office shall prescribe regulations 
    authorizing individuals to elect, during the 18-month period 
    immediately following the effective date of such regulations, to be 
    CSRS-Offset covered or Social Security-Only covered, effective as 
    of the date of the retirement coverage error.
        (3) Nonelection.--If an eligible individual does not make an 
    election under paragraph (2) before the end of any time limitation 
    under this subsection, the corrective action taken before such time 
    limitation shall remain in effect.

          CHAPTER 4--EMPLOYEE WHO WAS ERRONEOUSLY FERS COVERED

SEC. 2131. EMPLOYEE WHO SHOULD BE SOCIAL SECURITY-ONLY COVERED, CSRS 
              COVERED, OR CSRS-OFFSET COVERED AND IS NOT FERS-ELIGIBLE, 
              BUT WHO IS ERRONEOUSLY FERS COVERED INSTEAD.

    (a) Applicability.--This section applies in the case of a 
retirement coverage error in which a Social Security-Only covered, CSRS 
covered, or CSRS-Offset covered employee not eligible to elect FERS 
coverage under authority of section 8402(c) of title 5, United States 
Code, was erroneously FERS covered.
    (b) Uncorrected Error.--
        (1) Applicability.--This subsection applies if the retirement 
    coverage error has not been corrected before the effective date of 
    the regulations described in paragraph (2).
        (2) Coverage.--
            (A) Election.--
                (i) In general.--Upon written notice of a retirement 
            coverage error, an individual may elect to remain FERS 
            covered or to be Social Security-Only covered, CSRS 
            covered, or CSRS-Offset covered, as would have applied in 
            the absence of the erroneous retirement coverage 
            determination, effective as of the date of the retirement 
            coverage error. Such election shall be made not later than 
            180 days after the date of receipt of such notice.
                (ii) Treatment of fers election.--An election of FERS 
            coverage under this subsection is deemed to be an election 
            under section 301 of the Federal Employees Retirement 
            System Act of 1986 (5 U.S.C. 8331 note; Public Law 99-335; 
            100 Stat. 599).
            (B) Nonelection.--If the individual does not make an 
        election before the date provided under subparagraph (A), the 
        individual shall remain FERS covered, effective as of the date 
        of the retirement coverage error.
        (3) Employee contributions in thrift savings fund.--If under 
    this section, an individual elects to be Social Security-Only 
    covered, CSRS covered, or CSRS-Offset covered, all employee 
    contributions to the Thrift Savings Fund made during the period of 
    erroneous FERS coverage (and all earnings on such contributions) 
    may remain in the Thrift Savings Fund in accordance with 
    regulations prescribed by the Executive Director, notwithstanding 
    any limit under section 8351 or 8432 of title 5, United States 
    Code.
        (4) Regulations.--Except as provided under paragraph (3), the 
    Office shall prescribe regulations to carry out this subsection.
    (c) Corrected Error.--
        (1) Applicability.--This subsection applies if the retirement 
    coverage error was corrected before the effective date of the 
    regulations described under paragraph (2).
        (2) Election.--Not later than 180 days after the date of the 
    enactment of this Act, the Office shall prescribe regulations 
    authorizing individuals to elect, during the 18-month period 
    immediately following the effective date of such regulations to 
    remain Social Security-Only covered, CSRS covered, or CSRS-Offset 
    covered, or to be FERS covered, effective as of the date of the 
    retirement coverage error.
        (3) Nonelection.--If an eligible individual does not make an 
    election under paragraph (2), the corrective action taken before 
    the end of any time limitation under this subsection shall remain 
    in effect.
        (4) Treatment of fers election.--An election of FERS coverage 
    under this subsection is deemed to be an election under section 301 
    of the Federal Employees Retirement System Act of 1986 (5 U.S.C. 
    8331 note; Public Law 99-335; 100 Stat. 599).

SEC. 2132. FERS-ELIGIBLE EMPLOYEE WHO SHOULD HAVE BEEN CSRS COVERED, 
              CSRS-OFFSET COVERED, OR SOCIAL SECURITY-ONLY COVERED, BUT 
              WHO WAS ERRONEOUSLY FERS COVERED INSTEAD WITHOUT AN 
              ELECTION.

    (a) In General.--
        (1) FERS election prevented.--If an individual was prevented 
    from electing FERS coverage because the individual was erroneously 
    FERS covered during the period when the individual was eligible to 
    elect FERS under title III of the Federal Employees Retirement 
    System Act or the Federal Employees' Retirement System Open 
    Enrollment Act of 1997 (Public Law 105-61; 111 Stat. 1318 et seq.), 
    the individual--
            (A) is deemed to have elected FERS coverage; and
            (B) shall remain covered by FERS, unless the individual 
        declines, under regulations prescribed by the Office, to be 
        FERS covered.
        (2) Declining fers coverage.--If an individual described under 
    paragraph (1)(B) declines to be FERS covered, such individual shall 
    be CSRS covered, CSRS-Offset covered, or Social Security-Only 
    covered, as would apply in the absence of a FERS election, 
    effective as of the date of the erroneous retirement coverage 
    determination.
    (b) Employee Contributions in Thrift Savings Fund.--If under this 
section, an individual declines to be FERS covered and instead is 
Social Security-Only covered, CSRS covered, or CSRS-Offset covered, as 
would apply in the absence of a FERS election, all employee 
contributions to the Thrift Savings Fund made during the period of 
erroneous FERS coverage (and all earnings on such contributions) may 
remain in the Thrift Savings Fund in accordance with regulations 
prescribed by the Executive Director, notwithstanding any limit under 
title 5, United States Code, that would otherwise be applicable.
    (c) Inapplicability of Duration of Erroneous Coverage.--This 
section shall apply regardless of the length of time the erroneous 
coverage determination remained in effect.

SEC. 2133. RETROACTIVE EFFECT.

    This chapter shall be effective as of January 1, 1987, except that 
section 2132 shall not apply to individuals who made or were deemed to 
have made elections similar to those provided in this section under 
regulations prescribed by the Office before the effective date of this 
title.

 CHAPTER 5--EMPLOYEE WHO SHOULD HAVE BEEN CSRS-OFFSET COVERED, BUT WHO 
                  WAS ERRONEOUSLY CSRS COVERED INSTEAD

SEC. 2141. APPLICABILITY.

    This chapter shall apply in the case of any employee who should be 
(or should have been) CSRS-Offset covered but, as a result of a 
retirement coverage error, is (or was) CSRS covered instead.

SEC. 2142. CORRECTION MANDATORY.

    (a) Uncorrected Error.--If the retirement coverage error has not 
been corrected, as soon as practicable after discovery of the error, 
such individual shall be covered under the correct retirement coverage, 
effective as of the date of the retirement coverage error.
    (b) Corrected Error.--If the retirement coverage error has been 
corrected before the effective date of this title, the corrective 
action taken before such date shall remain in effect.

  CHAPTER 6--EMPLOYEE WHO SHOULD HAVE BEEN CSRS COVERED, BUT WHO WAS 
                ERRONEOUSLY CSRS-OFFSET COVERED INSTEAD

SEC. 2151. APPLICABILITY.

    This chapter shall apply in the case of any employee who should be 
(or should have been) CSRS covered but, as a result of a retirement 
coverage error, is (or was) CSRS-Offset covered instead.

SEC. 2152. CORRECTION MANDATORY.

    (a) Uncorrected Error.--If the retirement coverage error has not 
been corrected, as soon as practicable after discovery of the error, 
such individual shall be covered under the correct retirement coverage, 
effective as of the date of the retirement coverage error.
    (b) Corrected Error.--If the retirement coverage error has been 
corrected before the effective date of this title, the corrective 
action taken before such date shall remain in effect.

                     Subtitle B--General Provisions

SEC. 2201. IDENTIFICATION AND NOTIFICATION REQUIREMENTS.

    Government agencies shall take all such measures as may be 
reasonable and appropriate to promptly identify and notify individuals 
who are (or have been) affected by a retirement coverage error of their 
rights under this title.

SEC. 2202. INFORMATION TO BE FURNISHED TO AND BY AUTHORITIES 
              ADMINISTERING THIS TITLE.

    (a) Applicability.--The authorities identified in this subsection 
are--
        (1) the Director of the Office of Personnel Management;
        (2) the Commissioner of Social Security; and
        (3) the Executive Director of the Federal Retirement Thrift 
    Investment Board.
    (b) Authority To Obtain Information.--Each authority identified in 
subsection (a) may secure directly from any department or agency of the 
United States information necessary to enable such authority to carry 
out its responsibilities under this title. Upon request of the 
authority involved, the head of the department or agency involved shall 
furnish that information to the requesting authority.
    (c) Authority To Provide Information.--Each authority identified in 
subsection (a) may provide directly to any department or agency of the 
United States all information such authority believes necessary to 
enable the department or agency to carry out its responsibilities under 
this title.
    (d) Limitation; Safeguards.--Each of the respective authorities 
under subsection (a) shall--
        (1) request or provide only such information as that authority 
    considers necessary; and
        (2) 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. 2203. SERVICE CREDIT DEPOSITS.

    (a) CSRS Deposit.--In the case of a retirement coverage error in 
which--
        (1) a FERS covered employee was erroneously CSRS covered or 
    CSRS-Offset covered;
        (2) the employee made a service credit deposit under the CSRS 
    rules; and
        (3) there is a subsequent retroactive change to FERS coverage,
the excess of the amount of the CSRS civilian or military service 
credit deposit over the FERS civilian or military service credit 
deposit, together with interest computed in accordance with paragraphs 
(2) and (3) of section 8334(e) of title 5, United States Code, and 
regulations prescribed by the Office, shall be paid to the employee, 
the annuitant or, in the case of a deceased employee, to the individual 
entitled to lump-sum benefits under section 8424(d) of title 5, United 
States Code.
    (b) FERS Deposit.--
        (1) Applicability.--This subsection applies in the case of an 
    erroneous retirement coverage determination in which--
            (A) the employee owed a service credit deposit under 
        section 8411(f) of title 5, United States Code; and
            (B)(i) there is a subsequent retroactive change to CSRS or 
        CSRS-Offset coverage; or
            (ii) the service becomes creditable under chapter 83 of 
        title 5, United States Code.
        (2) Reduced annuity.--
            (A) In general.--If at the time of commencement of an 
        annuity there is remaining unpaid CSRS civilian or military 
        service credit deposit for service described under paragraph 
        (1), the annuity shall be reduced based upon the amount unpaid 
        together with interest computed in accordance with section 
        8334(e)(2) and (3) of title 5, United States Code, and 
        regulations prescribed by the Office.
            (B) Amount.--The reduced annuity to which the individual is 
        entitled shall be equal to an amount that, when taken together 
        with the amount referred to under subparagraph (A), would 
        result in the present value of the total being actuarially 
        equivalent to the present value of the unreduced annuity 
        benefit that would have been provided the individual.
        (3) Survivor annuity.--
            (A) In general.--If at the time of commencement of a 
        survivor annuity, there is remaining unpaid any CSRS service 
        credit deposit described under paragraph (1), and there has 
        been no actuarial reduction in an annuity under paragraph (2), 
        the survivor annuity shall be reduced based upon the amount 
        unpaid together with interest computed in accordance with 
        section 8334(e)(2) and (3) of title 5, United States Code, and 
        regulations prescribed by the Office.
            (B) Amount.--The reduced survivor annuity to which the 
        individual is entitled shall be equal to an amount that, when 
        taken together with the amount referred to under subparagraph 
        (A), would result in the present value of the total being 
        actuarially equivalent to the present value of an unreduced 
        survivor annuity benefit that would have been provided the 
        individual.

SEC. 2204. PROVISIONS RELATED TO SOCIAL SECURITY COVERAGE OF 
              MISCLASSIFIED EMPLOYEES.

    (a) Definitions.--In this section, the term--
        (1) ``covered individual'' means any employee, former employee, 
    or annuitant who--
            (A) is or was employed erroneously subject to CSRS coverage 
        as a result of a retirement coverage error; and
            (B) is or was retroactively converted to CSRS-offset 
        coverage, FERS coverage, or Social Security-Only coverage; and
        (2) ``excess CSRS deduction amount'' means an amount equal to 
    the difference between the CSRS deductions withheld and the CSRS-
    Offset or FERS deductions, if any, due with respect to a covered 
    individual during the entire period the individual was erroneously 
    subject to CSRS coverage as a result of a retirement coverage 
    error.
    (b) Reports to Commissioner of Social Security.--
        (1) In general.--In order to carry out the Commissioner of 
    Social Security's responsibilities under title II of the Social 
    Security Act, the Commissioner may request the head of each agency 
    that employs or employed a covered individual to report (in 
    coordination with the Office of Personnel Management) in such form 
    and within such timeframe as the Commissioner may specify, any or 
    all of--
            (A) the total wages (as defined in section 3121(a) of the 
        Internal Revenue Code of 1986) paid to such individual during 
        each year of the entire period of the erroneous CSRS coverage; 
        and
            (B) such additional information as the Commissioner may 
        require for the purpose of carrying out the Commissioner's 
        responsibilities under title II of the Social Security Act (42 
        U.S.C. 401 et seq.).
        (2) Compliance.--The head of an agency or the Office shall 
    comply with a request from the Commissioner under paragraph (1).
        (3) Wages.--For purposes of section 201 of the Social Security 
    Act (42 U.S.C. 401), wages reported under this subsection shall be 
    deemed to be wages reported to the Secretary of the Treasury or the 
    Secretary's delegates pursuant to subtitle F of the Internal 
    Revenue Code of 1986.
    (c) Payment Relating to OASDI Employee Taxes.--The Office shall 
transfer from the Civil Service Retirement and Disability Fund to the 
General Fund of the Treasury an amount equal to the lesser of the 
excess CSRS deduction amount or the OASDI taxes due for covered 
individuals (as adjusted by amounts transferred relating to applicable 
OASDI employee taxes as a result of corrections made, including 
corrections made before the date of the enactment of this Act). If the 
excess CSRS deductions exceed the OASDI taxes, any difference shall be 
paid to the covered individual or survivors, as appropriate.
    (d) Payment of OASDI Employer Taxes.--
        (1) In general.--Each employing agency shall pay an amount 
    equal to the OASDI employer taxes owed with respect to covered 
    individuals during the applicable period of erroneous coverage (as 
    adjusted by amounts transferred for the payment of such taxes as a 
    result of corrections made, including corrections made before the 
    date of the enactment of this Act).
        (2) Payment.--Amounts paid under this subsection shall be 
    determined subject to any limitation under section 6501 of the 
    Internal Revenue Code of 1986.

SEC. 2205. THRIFT SAVINGS PLAN TREATMENT FOR CERTAIN INDIVIDUALS.

    (a) Applicability.--This section applies to an individual who--
        (1) is eligible to make an election of coverage under section 
    2101 or 2102, and only if FERS coverage is elected (or remains in 
    effect) for the employee involved; or
        (2) is described in section 2111, and makes or has made 
    retroactive employee contributions to the Thrift Savings Fund under 
    regulations prescribed by the Executive Director.
    (b) Payment Into Thrift Savings Fund.--
        (1) In general.--
            (A) Payment.--With respect to an individual to whom this 
        section applies, the employing agency shall pay to the Thrift 
        Savings Fund under subchapter III of chapter 84 of title 5, 
        United States Code, for credit to the account of the employee 
        involved, an amount equal to the earnings which are disallowed 
        under section 8432a(a)(2) of such title on the employee's 
        retroactive contributions to such Fund.
            (B) Amount.--Earnings under subparagraph (A) shall be 
        computed in accordance with the procedures for computing lost 
        earnings under section 8432a of title 5, United States Code. 
        The amount paid by the employing agency shall be treated for 
        all purposes as if that amount had actually been earned on the 
        basis of the employee's contributions.
            (C) Exceptions.--If an individual made retroactive 
        contributions before the effective date of the regulations 
        under section 2101(c), the Director may provide for an 
        alternative calculation of lost earnings to the extent that a 
        calculation under subparagraph (B) is not administratively 
        feasible. The alternative calculation shall yield an amount 
        that is as close as practicable to the amount computed under 
        subparagraph (B), taking into account earnings previously paid.
        (2) Additional employee contribution.--In cases in which the 
    retirement coverage error was corrected before the effective date 
    of the regulations under section 2101(c), the employee involved 
    shall have an additional opportunity to make retroactive 
    contributions for the period of the retirement coverage error 
    (subject to applicable limits), and such contributions (including 
    any contributions made after the date of the correction) shall be 
    treated in accordance with paragraph (1).
    (c) Regulations.--
        (1) Executive director.--The Executive Director shall prescribe 
    regulations appropriate to carry out this section relating to 
    retroactive employee contributions and payments made on or after 
    the effective date of the regulations under section 2101(c).
        (2) Office.--The Office, in consultation with the Federal 
    Retirement Thrift Investment Board, shall prescribe regulations 
    appropriate to carry out this section relating to the calculation 
    of lost earnings on retroactive employee contributions made before 
    the effective date of the regulations under section 2101(c).

SEC. 2206. CERTAIN AGENCY AMOUNTS TO BE PAID INTO OR REMAIN IN THE 
              CSRDF.

    (a) Certain Excess Agency Contributions To Remain in the CSRDF.--
        (1) In general.--Any amount described under paragraph (2) 
    shall--
            (A) remain in the CSRDF; and
            (B) may not be paid or credited to an agency.
        (2) Amounts.--Paragraph (1) refers to any amount of 
    contributions made by an agency under section 8423 of title 5, 
    United States Code, on behalf of any employee, former employee, or 
    annuitant (or survivor of such employee, former employee, or 
    annuitant) who makes an election to correct a retirement coverage 
    error under this title, that the Office determines to be excess as 
    a result of such election.
    (b) Additional Employee Retirement Deductions To Be Paid by 
Agency.--If a correction in a retirement coverage error results in an 
increase in employee deductions under section 8334 or 8422 of title 5, 
United States Code, that cannot be fully paid by a reallocation of 
otherwise available amounts previously deducted from the employee's pay 
as employment taxes or retirement deductions, the employing agency--
        (1) shall pay the required additional amount into the CSRDF; 
    and
        (2) shall not seek repayment of that amount from the employee, 
    former employee, annuitant, or survivor.

SEC. 2207. CSRS COVERAGE DETERMINATIONS TO BE APPROVED BY OPM.

    No agency shall place an individual under CSRS coverage unless--
        (1) the individual has been employed with CSRS coverage within 
    the preceding 365 days; or
        (2) the Office has agreed in writing that the agency's coverage 
    determination is correct.

SEC. 2208. DISCRETIONARY ACTIONS BY DIRECTOR.

    (a) In General.--The Director of the Office of Personnel Management 
may--
        (1) extend the deadlines for making elections under this title 
    in circumstances involving an individual's inability to make a 
    timely election due to a cause beyond the individual's control;
        (2) provide for the reimbursement of necessary and reasonable 
    expenses incurred by an individual with respect to settlement of a 
    claim for losses resulting from a retirement coverage error, 
    including attorney's fees, court costs, and other actual expenses;
        (3) compensate an individual for monetary losses that are a 
    direct and proximate result of a retirement coverage error, 
    excluding claimed losses relating to forgone contributions and 
    earnings under the Thrift Savings Plan under subchapter III of 
    chapter 84 of title 5, United States Code, and all other investment 
    opportunities; and
        (4) waive payments required due to correction of a retirement 
    coverage error under this title.
    (b) Similar Actions.--In exercising the authority under this 
section, the Director shall, to the extent practicable, provide for 
similar actions in situations involving similar circumstances.
    (c) Judicial Review.--Actions taken under this section are final 
and conclusive, and are not subject to administrative or judicial 
review.
    (d) Regulations.--The Office of Personnel Management shall 
prescribe regulations regarding the process and criteria used in 
exercising the authority under this section.
    (e) Report.--The Office of Personnel Management shall, not later 
than 180 days after the date of the enactment of this Act, and annually 
thereafter for each year in which the authority provided in this 
section is used, submit a report to each House of Congress on the 
operation of this section.

SEC. 2209. REGULATIONS.

    (a) In General.--In addition to the regulations specifically 
authorized in this title, the Office may prescribe such other 
regulations as are necessary for the administration of this title.
    (b) Former Spouse.--The regulations prescribed under this title 
shall provide for protection of the rights of a former spouse with 
entitlement to an apportionment of benefits or to survivor benefits 
based on the service of the employee.

                      Subtitle C--Other Provisions

SEC. 2301. PROVISIONS TO AUTHORIZE 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 
title in the same manner as if this title were part of--
        (1) the Civil Service Retirement System, to the extent this 
    title relates to the Civil Service Retirement System; and
        (2) the Federal Employees' Retirement System, to the extent 
    this title relates to the Federal Employees' Retirement System.
    (b) Central Intelligence Agency.--Sections 292 and 301 of the 
Central Intelligence Agency Retirement Act (50 U.S.C. 2141 and 2151) 
shall apply with respect to this title in the same manner as if this 
title were part of--
        (1) the Civil Service Retirement System, to the extent this 
    title relates to the Civil Service Retirement System; and
        (2) the Federal Employees' Retirement System, to the extent 
    this title relates to the Federal Employees' Retirement System.

SEC. 2302. AUTHORIZATION OF PAYMENTS.

    All payments authorized or required by this title to be paid from 
the Civil Service Retirement and Disability Fund, together with 
administrative expenses incurred by the Office in administering this 
title, shall be deemed to have been authorized to be paid from that 
Fund, which is appropriated for the payment thereof.

SEC. 2303. INDIVIDUAL RIGHT OF ACTION PRESERVED FOR AMOUNTS NOT 
              OTHERWISE PROVIDED FOR UNDER THIS TITLE.

    Nothing in this title shall preclude an individual from bringing a 
claim against the Government of the United States which such individual 
may have under section 1346(b) or chapter 171 of title 28, United 
States Code, or any other provision of law (except to the extent the 
claim is for any amounts otherwise provided for under this title).

                       Subtitle D--Effective Date

SEC. 2401. EFFECTIVE DATE.

    Except as otherwise provided in this title, this title shall take 
effect on the date of the enactment of this Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.