[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 4000 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 4000

 To provide for improvements to the United States Postal Service, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 2, 2010

  Ms. Collins introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
 To provide for improvements to the United States Postal Service, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``U.S. Postal Service Improvements Act 
of 2010''.

                  TITLE I--POSTAL SERVICE IMPROVEMENTS

SEC. 101. TRANSFER OF AMOUNTS FROM THE CIVIL SERVICE RETIREMENT AND 
              DISABILITY FUND.

    (a) Office of Personnel Management Determination.--Not later than 
30 days after the date of enactment of this Act and in accordance with 
section 802(c)(2) of the Postal Accountability and Enhancement Act (5 
U.S.C. 8348 note; Public Law 109-435; 120 Stat. 3250), the Office of 
Personnel Management shall make a determination or redetermination 
under section 8348(h) of title 5, United States Code, consistent with 
the report submitted by the Postal Regulatory Commission to the Postal 
Service and Congress on June 29, 2010.
    (b) Availability for Transfers.--Section 8348(h)(2) of title 5, 
United States Code, is amended by striking subparagraphs (B) and (C) 
and inserting the following:
    ``(B) The Office shall redetermine the Postal surplus or 
supplemental liability as of the close of the fiscal year ending 
September 30, 2010, and for each year thereafter, through the fiscal 
year ending September 30, 2043. If the result for a fiscal year is a 
surplus, that amount shall remain in the Fund until distribution is 
authorized under subparagraph (C). Beginning June 15, 2017, if the 
result is a supplemental liability, the Office shall establish an 
amortization schedule, including a series of annual installments 
commencing on September 30 of the subsequent fiscal year, which 
provides for the liquidation of such liability by September 30, 2043.
    ``(C)(i) As of the close of the fiscal years ending September 30, 
2010, 2011, 2012, 2013, 2014, 2015, and 2016, if the result is a 
surplus, that amount, or any part of that amount, may be transferred to 
the Postal Service Retiree Health Benefits Fund.
    ``(ii) As of the close of the fiscal year ending September 30, 2017 
and each year thereafter, if the result is a surplus, that amount, or 
any part of that amount, may be transferred to--
            ``(I) the Postal Service Retiree Health Benefits Fund to 
        pay any liability to the Postal Service Retiree Health Benefits 
        Fund; or
            ``(II) if all liability to the Postal Service Retiree 
        Health Benefits Fund is paid--
                    ``(aa) the Employees' Compensation Fund established 
                under section 8147; or
                    ``(bb) the United States Postal Service for the 
                repayment of any obligation issued under section 2005 
                of title 39.
    ``(iii) Any transfer under clause (i) shall be--
            ``(I) made at the discretion of the Board of Governors of 
        the Postal Service in the amount determined by the Board of 
        Governors, except the amount may not exceed the amount under 
        section 8909a(d)(3)(A) remaining to be paid for the applicable 
        fiscal year; and
            ``(II) credited to the Postal Service for payment of the 
        amount required under section 8909a(d)(3)(A) for the applicable 
        fiscal year.
    ``(iv) Any transfer under clause (ii) shall be--
            ``(I) made at the discretion of the Board of Governors of 
        the Postal Service in the amount determined by the Board of 
        Governors;
            ``(II) if transferred to the Postal Service Retiree Health 
        Benefits Fund, credited to the Postal Service for payment of 
        any liability of the Postal Service to the Postal Service 
        Retiree Health Benefits Fund for the applicable fiscal year; 
        and
            ``(III) if transferred to the Employees' Compensation Fund 
        established under section 8147, credited to the Postal Service 
        for payment of any liability of the Postal Service under 
        chapter 81 for the applicable fiscal year.
    ``(v) The Board of Governors shall--
            ``(I) provide written notice to the Office of any amount to 
        be transferred under this clause; and
            ``(II) take all actions of the Board under this clause by a 
        majority vote.
    ``(vi) The Office shall transfer any amount determined by the Board 
of Governors to the credit of the Postal Service in accordance with 
this clause.''.
    (c) Postal Service Surplus or Liability Based on Federal Employees 
Retirement System Contributions.--Section 8348 of title 5, United 
States Code, is amended by adding at the end the following:
    ``(m)(1) In this subsection, the term `Postal surplus or 
supplemental liability' means the estimated difference, as determined 
by the Office, between--
            ``(A) the actuarial present value of all future benefits 
        payable from the Fund under chapter 84 to current or former 
        employees of the United States Postal Service and attributable 
        to civilian employment with the United States Postal Service; 
        and
            ``(B) the sum of--
                    ``(i) the actuarial present value of deductions to 
                be withheld from the future basic pay of employees of 
                the United States Postal Service currently subject to 
                chapter 84 under section 8422;
                    ``(ii) that portion of the Fund balance, as of the 
                date the Postal surplus or supplemental liability is 
                determined, attributable to payments to the Fund by the 
                United States Postal Service and its employees, minus 
                benefit payments attributable to civilian employment 
                with the United States Postal Service, plus the 
                earnings on such amounts while in the Fund; and
                    ``(iii) any other appropriate amount, as determined 
                by the Office in accordance with generally accepted 
                actuarial practices and principles.
    ``(2)(A) The Office shall determine the Postal surplus or 
supplemental liability as of the close of the fiscal year ending 
September 30, 2010, and for each year thereafter, through the fiscal 
year ending September 30, 2043. If the result for a fiscal year is a 
surplus, that amount shall remain in the Fund until distribution is 
authorized under subparagraph (B). Beginning June 15, 2017, if the 
result is a supplemental liability, the Office shall establish an 
amortization schedule, including a series of annual installments 
commencing on September 30 of the subsequent fiscal year, which 
provides for the liquidation of such liability by September 30, 2043.
    ``(B)(i) As of the close of the fiscal years ending September 30, 
2010, 2011, 2012, 2013, 2014, 2015, and 2016, if the result is a 
surplus, that amount, or any part of that amount, may be transferred to 
the Postal Service Retiree Health Benefits Fund.
    ``(ii) As of the close of the fiscal year ending September 30, 2017 
and each year thereafter, if the result is a surplus, that amount, or 
any part of that amount, may be transferred to--
            ``(I) the Postal Service Retiree Health Benefits Fund to 
        pay any liability to the Postal Service Retiree Health Benefits 
        Fund; or
            ``(II) if all liability to the Postal Service Retiree 
        Health Benefits Fund is paid--
                    ``(aa) the Employees' Compensation Fund established 
                under section 8147; or
                    ``(bb) the United States Postal Service for the 
                repayment of any obligation issued under section 2005 
                of title 39.
    ``(iii) Any transfer under clause (i) shall be--
            ``(I) made at the discretion of the Board of Governors of 
        the Postal Service in the amount determined by the Board of 
        Governors, except the amount may not exceed the amount under 
        section 8909a(d)(3)(A) remaining to be paid for the applicable 
        fiscal year; and
            ``(II) credited to the Postal Service for payment of the 
        amount required under section 8909a(d)(3)(A) for the applicable 
        fiscal year.
    ``(iv) Any transfer under clause (ii) shall be--
            ``(I) made at the discretion of the Board of Governors of 
        the Postal Service in the amount determined by the Board of 
        Governors;
            ``(II) if transferred to the Postal Service Retiree Health 
        Benefits Fund, credited to the Postal Service for payment of 
        any liability of the Postal Service to the Postal Service 
        Retiree Health Benefits Fund for the applicable fiscal year; 
        and
            ``(III) if transferred to the Employees' Compensation Fund 
        established under section 8147, credited to the Postal Service 
        for payment of any liability of the Postal Service under 
        chapter 81 for the applicable fiscal year.
    ``(v) The Board of Governors shall--
            ``(I) provide written notice to the Office of any amount to 
        be transferred under this clause; and
            ``(II) take all actions of the Board under this clause by a 
        majority vote.
    ``(vi) The Office shall transfer any amount determined by the Board 
of Governors to the credit of the Postal Service in accordance with 
this clause.
    ``(C) Amortization schedules established under this paragraph shall 
be set in accordance with generally accepted actuarial practices and 
principles, with interest computed at the rate used in the most recent 
valuation of the Civil Service Retirement System.
    ``(D) The United States Postal Service shall pay the amounts so 
determined to the Office, with payments due not later than the date 
scheduled by the Office.
    ``(3) Notwithstanding any other provision of law, in computing the 
amount of any payment under any other subsection of this section that 
is based upon the amount of the unfunded liability, such payment shall 
be computed disregarding that portion of the unfunded liability that 
the Office determines will be liquidated by payments under this 
subsection.
    ``(4)(A) The United States Postal Service may--
            ``(i) request the Postal Regulatory Commission to procure 
        the services of an actuary to review any determination by the 
        Office under this subsection; or
            ``(ii) if the Postal Regulatory Commission does not object, 
        procure the services of an actuary to review any determination 
        by the Office under this subsection.
    ``(B) A review under subparagraph (A) shall be conducted--
            ``(i) by an actuary who holds membership in the American 
        Academy of Actuaries and who is qualified in the evaluation of 
        pension obligations; and
            ``(ii) in accordance with generally accepted actuarial 
        practices and principles.
    ``(C)(i) An actuary that conducts a review under subparagraph (A) 
shall submit a report on the review to the entity that procured the 
services of the actuary.
    ``(ii) Upon receipt of a report under clause (i), the Postal 
Regulatory Commission or the United States Postal Service, as 
appropriate, shall--
            ``(I) determine whether to approve the report; and
            ``(II) if the report is approved, submit the report to the 
        Office and to Congress, together with any comments of the 
        Postal Regulatory Commission or United States Postal Service.
    ``(D) Notwithstanding any other provision of this subsection, upon 
submission of a report by the Postal Regulatory Commission or United 
States Postal Service under subparagraph (C)(ii)(II), the Office shall 
reconsider its determination or redetermination in light of such 
report, and shall make any appropriate adjustments. The Office shall 
submit a report containing the results of its reconsideration to the 
Postal Regulatory Commission, the United States Postal Service, and 
Congress.''.

SEC. 102. CONSIDERATION OF POSTAL SERVICE FINANCIAL CONDITION.

    Section 1207(c)(2) of title 39, United States Code, is amended by 
inserting ``The arbitration board shall consider the financial 
condition of the Postal Service in rendering its decision.'' after the 
first sentence.

SEC. 103. INCREASE IN THE USE OF NEGOTIATED SERVICE AGREEMENTS.

    Section 3622 of title 39, United States Code, is amended by adding 
at the end the following:
    ``(g) The Postal Service and the Postal Regulatory Commission shall 
coordinate actions to identify ways to increase the use of negotiated 
service agreements for market dominant products by the Postal Service 
consistent with subsection (c)(10).''.

SEC. 104. AREA AND DISTRICT FIELD OFFICES.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Postmaster General shall submit a comprehensive 
strategic plan for guiding area and district field office structure 
decisions to--
            (1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            (2) the Committee on Oversight and Government Reform of the 
        House of Representatives.
    (b) Contents.--The plan under subsection (a) shall--
            (1) be developed in consultation with the Postal Regulatory 
        Commission; and
            (2) include--
                    (A) an assessment of the effectiveness of the plan 
                with respect to increasing efficiency, eliminating 
                duplication, and reducing unnecessary costs;
                    (B) a review of the field office structure of the 
                United States Postal Service and describe the actions 
                to be taken by the United States Postal Service to 
                modify the structure based on the review; and
                    (C) an examination of environmental factors, mail 
                volumes, technological advancements, operational 
                considerations, and other issues impacting the 
                strategic goals of the United States Postal Service 
                under the plan.
    (c) Report on Progress.--Not later than January 1, 2012, the 
Postmaster General shall submit a report on the progress of 
implementing the comprehensive strategic plan under this section to--
            (1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            (2) the Committee on Oversight and Government Reform of the 
        House of Representatives.
    (d) Updated Plans.--Not later than January 1, 2015, and each 5 
years thereafter, the United States Postal Service, in consultation 
with the Postal Regulatory Commission, shall submit an updated 
comprehensive strategic plan under this section to--
            (1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            (2) the Committee on Oversight and Government Reform of the 
        House of Representatives.

SEC. 105. CO-LOCATION OF POST OFFICES AT RETAIL FACILITIES.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Postmaster General shall submit a plan on the co-
location of post offices at retail facilities to--
            (1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            (2) the Committee on Oversight and Government Reform of the 
        House of Representatives.
    (b) Contents.--The plan under subsection (a) shall--
            (1) be developed in consultation with the Postal Regulatory 
        Commission;
            (2) provide for an increase in the co-location of post 
        offices at retail facilities to enable the United States Postal 
        Service to offer its products and services at those locations;
            (3) consider the impact of any co-location decisions on 
        small communities and rural areas before taking actions to co-
        locate post offices; and
            (4) ensure that--
                    (A) service shall continue in small communities and 
                rural areas after implementation the plan;
                    (B) the United States Postal Service solicits 
                community input before making decisions about co-
                location; and
                    (C) the quality of products and services offered in 
                co-located facilities are consistent with those offered 
                in post offices.
    (c) Report on Progress.--Not later than January 1, 2012, the 
Postmaster General shall submit a report on the progress of 
implementing the plan on the co-location of post offices at retail 
facilities under this section to--
            (1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            (2) the Committee on Oversight and Government Reform of the 
        House of Representatives.

SEC. 106. ANNUAL REPORT ON UNITED STATES MAILING INDUSTRY.

    (a) In General.--Not later than November 1, of each year, the 
Postal Regulatory Commission shall submit a report on the fiscal 
stability of the United States mailing industry with respect to the 
preceding fiscal year to--
            (1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            (2) the Committee on Oversight and Government Reform of the 
        House of Representatives.
    (b) Assistance.--The United States Postal Service and any Federal 
agency involved in oversight or data collection regarding relevant 
industry sectors shall provide any assistance to the Postal Regulatory 
Commission that the Postal Regulatory Commission determines is 
necessary in the preparation of any report under this section.

                TITLE II--POSTAL CONTRACTING PROVISIONS

SEC. 201. CONTRACTING PROVISIONS.

    (a) In General.--Part I of title 39, United States Code, is amended 
by adding at the end the following:

                  ``Chapter 7--Contracting Provisions

``Sec.
``701. Definitions.
``702. Advocate for competition.
``703. Delegation of contracting authority.
``704. Posting of justifications of noncompetitive contracts.
``705. Review of ethical issues.
``706. Ban on certain contracts.
``Sec. 701. Definitions
    ``In this chapter--
            ``(1) the term `contracting officer' means an employee of a 
        covered postal entity who has authority to enter into a postal 
        contract;
            ``(2) the term `covered postal entity' means--
                    ``(A) the United States Postal Service; or
                    ``(B) the Postal Regulatory Commission;
            ``(3) the term `head of a covered postal entity' means--
                    ``(A) in the case of the United States Postal 
                Service, the Postmaster General; or
                    ``(B) in the case of the Postal Regulatory 
                Commission, the Postal Regulatory Commission;
            ``(4) the term `postal contract' means any contract 
        (including any agreement or memorandum of understanding) 
        entered into by a covered postal entity for the procurement of 
        goods or services; and
            ``(5) the term `senior procurement executive' means the 
        senior procurement executive of a covered postal entity.
``Sec. 702. Advocate for competition
    ``(a) Establishment and Designation.--
            ``(1) There is established in each covered postal entity an 
        advocate for competition.
            ``(2) The head of each covered postal entity shall--
                    ``(A) designate for the covered postal entity and 
                for each procuring activity of the covered postal 
                entity 1 officer or employee (other than the senior 
                procurement executive) to serve as the advocate for 
                competition;
                    ``(B) not assign such officer or employee any 
                duties or responsibilities that are inconsistent with 
                the duties and responsibilities of the advocates for 
                competition; and
                    ``(C) provide such officer or employee with such 
                staff or assistance as may be necessary to carry out 
                the duties and responsibilities of the advocate for 
                competition, such as persons who are specialists in 
                engineering, technical operations, contract 
                administration, financial management, supply 
                management, and utilization of small and disadvantaged 
                business concerns.
    ``(b) Duties and Functions.--The advocate for competition of each 
covered postal entity shall--
            ``(1) be responsible for challenging barriers to and 
        promoting full and open competition in the procurement of goods 
        and services by the covered postal entity;
            ``(2) review the procurement activities of the covered 
        postal entity;
            ``(3) identify and report to the senior procurement 
        executive--
                    ``(A) opportunities and actions taken to maximize 
                full and open competition in the procurement activities 
                of the covered postal entity; and
                    ``(B) any condition or action which has the effect 
                of unnecessarily restricting competition in the 
                procurement actions of the covered postal entity;
            ``(4) prepare and transmit to the head of each covered 
        postal entity, the Board of Governors of the United States 
        Postal Service, and Congress an annual report describing--
                    ``(A) the activities of the advocate under this 
                section;
                    ``(B) initiatives required to increase competition; 
                and
                    ``(C) barriers to the use of full and open 
                competition to the maximum extent practicable;
            ``(5) recommend to the senior procurement executive the 
        goals and the plans for increasing competition on a fiscal year 
        basis;
            ``(6) recommend to the senior procurement executive a 
        system of personal and organizational accountability for 
        competition, which may include the use of recognition and 
        awards to motivate program managers, contracting officers, and 
        others in authority to promote competition in procurement 
        programs; and
            ``(7) describe other ways in which the covered postal 
        entity has emphasized competition in programs for procurement 
        training and research.
    ``(c) Responsibilities.--The advocate for competition for each 
procuring activity shall be responsible for promoting full and open 
competition, promoting the acquisition of commercial items, and 
challenging barriers to such acquisition, including such barriers as 
unnecessarily restrictive statements of need, unnecessarily detailed 
specifications, and unnecessarily burdensome contract clauses.
``Sec. 703. Delegation of contracting authority
    ``(a) In General.--
            ``(1) Policy.--Not later than 60 days after the date of 
        enactment of the U.S. Postal Service Improvements Act of 2010, 
        the head of each covered postal entity shall issue a policy on 
        contracting officer delegations of authority for the covered 
        postal entity.
            ``(2) Contents.--The policy issued under paragraph (1) 
        shall require that--
                    ``(A) notwithstanding any delegation of contracting 
                authority, the ultimate responsibility and 
                accountability for the award and administration of 
                postal contracts resides with the senior procurement 
                executive; and
                    ``(B) a contracting officer shall maintain an 
                awareness of and engagement in the activities being 
                performed on postal contracts for which that officer 
                has cognizance notwithstanding any delegation of 
                authority that may have been executed.
    ``(b) Posting of Delegations.--
            ``(1) In general.--The head of each covered postal entity 
        shall make any delegation of authority outside the functional 
        contracting unit for the procurement of goods or services which 
        exceeds the simplified acquisition threshold, as defined under 
        section 4(11) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 403(11)) including any adjustment under section 35A 
        of that Act (41 U.S.C. 431A), available on the website of the 
        covered postal entity.
            ``(2) Effective date.--This paragraph shall apply to any 
        delegation of authority made on or after 30 days after the date 
        of enactment of the U.S. Postal Service Improvements Act of 
        2010.
``Sec. 704. Posting of justifications of noncompetitive contracts
    ``(a) In General.--Not later than 14 days after the date of the 
award of any noncompetitive contract which exceeds the simplified 
acquisition threshold, as defined under section 4(11) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(11)) including any 
adjustment under section 35A of that Act (41 U.S.C. 431A), or within 30 
days if the justification and approval for that contract is urgent and 
compelling, a covered postal entity shall make publicly available the 
documents containing the justification and approval of that contract.
    ``(b) Website.--
            ``(1) In general.--Subject to paragraph (2), the documents 
        described under subsection (a) shall be made available on the 
        website of the covered postal entity.
            ``(2) Protection of proprietary information.--The covered 
        postal entity shall carefully screen all justifications for 
        proprietary data, and any references and citations as are 
        necessary to protect the proprietary data, or security related 
        information and remove all such data or information before 
        making the justifications available.
``Sec. 705. Review of ethical issues
    ``If a contracting officer identifies any ethical issues relating 
to a proposed contract and submits those issues and that proposed 
contract to the designated ethics official for the covered postal 
entity before the awarding of that contract, that ethics official 
shall--
            ``(1) review the proposed contract; and
            ``(2) advise the contracting officer on the appropriate 
        resolution of ethical issues.
``Sec. 706. Ban on certain contracts
    ``(a) Definitions.--In this section--
            ``(1) the term `covered employee' means--
                    ``(A) a contracting officer; or
                    ``(B) any employee of a covered postal entity whose 
                decisionmaking affects a postal contract as determined 
                by regulations prescribed by the head of a covered 
                postal entity; and
            ``(2) the term `final conviction' means a conviction, 
        whether entered on a verdict or plea, including a plea of nolo 
        contendere, for which a sentence has been imposed;
    ``(b) In General.--
            ``(1) Regulations.--The head of each covered postal entity 
        shall prescribe regulations that--
                    ``(A) prohibit a covered employee from entering 
                into a postal contract with any party with whom that 
                covered employee is closely affiliated in a 
                nongovernmental capacity, regardless of whether or not 
                the postal contract is for private gain;
                    ``(B) require a contractor to timely disclose to 
                the chief ethics officers of the covered postal entity 
                any relationship described under subparagraph (A) with 
                a covered employee in a bid, solicitation, award, or 
                performance of a postal contract; and
                    ``(C) include authority for the head of the covered 
                postal entity to a grant waiver to any prohibition or 
                requirement under subparagraph (A) or (B).
            ``(2) Posting of waivers.--Not later than 30 days after the 
        head of a covered postal entity grants a waiver described under 
        paragraph (1)(C), the head of the covered postal entity shall 
        make the waiver available on the website of the covered postal 
        entity.
    ``(c) Contract Voidance and Recovery.--
            ``(1) Bribery and graft convictions.--In any case in which 
        there is a final conviction for a violation of any provision of 
        chapter 11 of title 18 relating to a postal contract, the head 
        of a covered postal entity may--
                    ``(A) void that contract; and
                    ``(B) recover the amounts expended and property 
                transferred by the covered postal entity under that 
                contract.
            ``(2) Obtaining or disclosing procurement information.--
                    ``(A) In general.--In any case described under 
                subparagraph (B) relating to a postal contract, the 
                head of a covered postal entity may--
                            ``(i) void that contract; and
                            ``(ii) recover the amounts expended and 
                        property transferred by the covered postal 
                        entity under that contract.
                    ``(B) Conviction or administrative determination.--
                A case described under subparagraph (A) is any case in 
                which--
                            ``(i) there is a final conviction for an 
                        offense punishable under section 27(e) of the 
                        Office of Federal Procurement Policy Act (41 
                        U.S.C. 423(e)); or
                            ``(ii) the head of a covered postal entity 
                        determines, based upon a preponderance of the 
                        evidence, that the contractor or someone acting 
                        for the contractor has engaged in conduct 
                        constituting an offense punishable under 
                        section 27(e) of that Act.''.
    (b) Technical and Conforming Amendment.--The table of chapters for 
part I of title 39, United States Code, is amended by adding at the end 
the following:

``7. Contracting Provisions.................................     701''.

TITLE III--FEDERAL WORKERS COMPENSATION REFORMS FOR RETIREMENT ELIGIBLE 
                               EMPLOYEES

SEC. 301. FEDERAL WORKERS COMPENSATION REFORMS FOR RETIREMENT ELIGIBLE 
              EMPLOYEES.

    (a) Transition to Retirement.--
            (1) In general.--Chapter 81 of title 5, United States Code, 
        is amended by inserting after section 8106 the following:
``Sec. 8106a. Transition to retirement
    ``(a) Definitions.--In this section--
            ``(1) the term `covered employee' means an employee who--
                    ``(A) is paid compensation under section 8105 or 
                8106; and
                    ``(B) on or after attaining retirement age is 
                eligible for an annuity under chapter 83 or 84 (other 
                than a survivor annuity); and
            ``(2) the term `retirement age' has the meaning given under 
        section 216(l)(1) of the Social Security Act (42 U.S.C. 
        416(l)(1)).
    ``(b) Notwithstanding any other provision of this chapter, the 
payment of compensation under section 8105 or 8106 to a covered 
employee shall terminate on the date that the covered employee--
            ``(1) attains retirement age and is eligible for an annuity 
        under chapter 83 or 84 (other than a survivor annuity); or
            ``(2) after attaining retirement age becomes eligible for 
        an annuity under chapter 83 or 84 (other than a survivor 
        annuity).
    ``(c) Not later than 1 year before the date that a covered employee 
attains retirement age or subsequently becomes eligible for an annuity 
under chapter 83 or 84 (other than a survivor annuity), the Secretary 
of Labor shall provide notice of this section to--
            ``(1) the covered employee;
            ``(2) the employing agency of that covered employee; and
            ``(3) the Office of Personnel Management.
    ``(d) The employing agency of a covered employee shall file an 
application for an annuity with the Office of Personnel Management in 
accordance with section 8352 or 8471.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 81 of title 5, United States Code, is 
        amended by inserting after the item relating to section 8106 
        the following:

``Sec. 8106a. Transition to retirement.''.
    (b) Filing of Applications.--
            (1) Civil service retirement system.--
                    (A) In general.--Chapter 83 of title 5, United 
                States Code, is amended by inserting after section 8351 
                the following:
``Sec. 8352. Employees transitioning from workers compensation
    ``(a) Definition.--In this section, the term `covered employee' 
means an employee who is a covered employee as defined under section 
8106a(a)(1) and is eligible for an annuity under this chapter.
    ``(b) Applications.--Not later than 1 year before the date of the 
termination of payments of compensation under section 8106a(b) to a 
covered employee who is eligible for an annuity under this chapter, the 
employing agency of that covered employee shall file an application for 
an annuity for that covered employee under this chapter with the Office 
of Personnel Management.
    ``(c) Regulations.--The Office of Personnel Management shall 
prescribe regulations to carry out this section.''.
                    (B) Technical and conforming amendment.--The table 
                of sections for chapter 83 of title 5, United States 
                Code, is amended by inserting after the item relating 
                to section 8351 the following:

``Sec. 8352. Employees transitioning from workers compensation.''.
            (2) Federal employees retirement system.--
                    (A) In general.--Chapter 84 of title 5, United 
                States Code, is amended by inserting after section 8470 
                the following:
``Sec. 8471. Employees transitioning from workers compensation
    ``(a) Definition.--In this section, the term `covered employee' 
means an employee who is a covered employee as defined under section 
8106a(a)(1) and is eligible for an annuity under this chapter.
    ``(b) Applications.--Not later than 1 year before the date of the 
termination of payments of compensation under section 8106a(b) to a 
covered employee who is eligible for an annuity under this chapter, the 
employing agency of that covered employee shall file an application for 
an annuity for that covered employee under this chapter with the Office 
of Personnel Management.
    ``(c) Regulations.--The Office of Personnel Management shall 
prescribe regulations to carry out this section.''.
                    (B) Technical and conforming amendment.--The table 
                of sections for chapter 84 of title 5, United States 
                Code, is amended by inserting after the item relating 
                to section 8456 the following:

``Sec. 8471. Employees transitioning from workers compensation.''.

SEC. 302. REGULATIONS.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary of Labor, after consultation with the Director of the 
Office of Personnel Management, shall prescribe regulations to carry 
out this title.

SEC. 303. EFFECTIVE DATE.

    (a) In General.--Except as provided under subsection (b), this 
title (including the amendments made by this tile) shall take effect on 
the date of enactment of this Act.
    (b) Termination of Compensation.--Section 8106a(b) of title 5, 
United States Code, (as added by section 301 of this Act) shall take 
effect 1 year after the date regulations are prescribed under section 
302.
                                 <all>