[Congressional Record Volume 142, Number 136 (Friday, September 27, 1996)]
[House]
[Pages H11547-H11565]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                OMNIBUS CIVIL SERVICE REFORM ACT OF 1996

  Mr. MICA. Mr. Speaker, I ask unanimous consent for the immediate 
consideration of the bill (H.R. 3841), to amend the civil service laws 
of the United States, and for other purposes.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?
  Mr. MORAN. Reserving the right to object, Mr. Speaker, I yield to the 
gentleman from Florida [Mr. Mica], the subcommittee chairman, to 
explain the changes in the bill.
  Mr. MICA. Mr. Speaker, yesterday the House voted on this legislation. 
Although a majority of the House voted for the bill, we fell short of 
the two-thirds required to suspend the rules and pass this legislation. 
Unfortunately the controversy centered on section 201 of that 
legislation and that version which we have deleted in this amendment. 
Under that section, the current rules on reduction in force would have 
been changed to give greater weight to job performance in determining 
which employees are retained. It would have been easier for the 
agencies, in fact, to keep their best employees when they downsize. 
Taxpayers and talented, conscientious Federal employees, I believe, 
would have benefited from this change. However, yesterday, Mr. Speaker, 
on this floor we did not get the two-thirds necessary to pass that 
provision.
  Mr. Speaker, yesterday on the floor, the distinguished gentlewoman 
from Maryland [Mrs. Morella], the distinguished gentleman from Virginia 
[Mr. Moran], the gentleman from Virginia [Mr. Wolf], and the gentleman 
from Virginia [Mr. Davis] all spoke eloquently of the benefits to 
Federal employees contained in this legislation. They explained how its 
provisions, many of which they authored, would have softened the impact 
of Federal Government downsizing. I thank them for their support 
yesterday and for their honest efforts on behalf of our hardworking 
Federal employees.
  Mr. Speaker, I have discussed this matter with these distinguished 
Members and others, and I know how hard they all work to provide these 
important protections to our Federal employees who are, in fact, caught 
up in downsizing. I am not willing to allow any special interests to 
frustrate their work or to prevent this House from providing those 
protections to all Federal employees on a bipartisan basis. That is why 
I brought this version of the bill forward to the floor today, and I 
hope that again in this fashion that we can pass this in unanimous 
consent. I thank the gentleman from Virginia [Mr. Moran], the ranking 
member of our subcommittee, for his leadership, and others.
  Mr. MORAN. Mr. Speaker, further reserving the right to object, I want 
to thank the gentleman from Florida [Mr. Mica] for explaining the 
change that he has made from the bill that we brought up yesterday and 
that failed to get the two-thirds majority necessary.
  I also particularly want to thank them for bringing the bill back 
today without that controversial provision which prevented us from 
being able to move it on to the Senate yesterday.
  We have an opportunity today to enact legislation that will have a 
very positive impact upon the lives of our Nation's civil servants. As 
I said yesterday, this legislation is the culmination of the work of 
the Subcommittee on Civil Service over the past 6 months. It contains 
important provisions that provide needed benefits for Federal 
Employees. For example, the bill contains provisions, originally 
offered by the administration, that improve the agencies' management 
flexibility through a demonstration projects program and individual 
agencies can choose to participate in and determine what types of 
flexibilities enhance program performance.
  The bill provides a number of provisions designed to help employees 
undergoing reductions in force. These provisions allow an employee to 
continue to participate in the government life insurance programs 
provided that they pay both the employer and employee contribution. It 
would allow an employee who loses their job due to a reduction in force 
to continue to participate in the Federal employee health benefits 
program for 18 months with the Federal share being paid. It also 
establishes a priority placement program in education assistance grants 
to help displaced Federal employees improve their competitiveness in 
the job market through greater education.
  The provision with which a majority of Democrats disagree has been 
deleted from this draft. With section 201 removed, this legislation is 
supported by the gentlewoman from Illinois [Mrs. Collins], the ranking 
member; by the gentlewoman from Florida [Mrs. Meek] and all the Federal 
employee unions. That should get the Democratic support that we were 
looking for, and I hope we can quickly pass this legislation and send 
it over to the Senate for their immediate consideration.
  Further reserving the right to object, Mr. Speaker, I yield to the 
gentlewoman from Maryland [Mrs. Morella].
  Mrs. MORELLA. Mr. Speaker, we are back today to reconsider a bill to 
improve our Civil Service system and help Federal employees cope with 
downsizing. This is the same bill that we considered yesterday, except 
without section 201, a controversial provision to enhance performance 
management. This provision should have been

[[Page H11548]]

removed in the first place, but I appreciate the willingness of Civil 
Service Subcommittee Chairman Mica to take it out today. While I 
certainly believe that we should promote people based on merit and 
reward outstanding performers through enhanced performance management, 
we did not have time to work out a fair compromise to section 201. For 
that reason, it should not have been in the bill yesterday.
  Throughout this Congress, I have pursued a legislative strategy to 
help Federal employees and agencies cope with downsizing. We have the 
responsibility to help our dedicated civil servants through this 
difficult time, and although I think we should go much further, this 
bill is a good start.
  It provides important retraining provisions to equip Federal 
employees for private sector jobs, and it includes a soft-landings 
package to ease the pain of downsizing for Federal employees. When a 
long-time Federal employee faces a reduction-in-force, he or she needs 
help. Under this bill, separated Federal employees would be able to 
continue their health and life insurance benefits, receive job training 
and counseling geared toward the private sector, and receive money to 
return to school. Mr. Speaker, this is the least we can do.
  I want to thank the other Members who have contributed so much to 
this legislation; Jim Moran, Tom Davis, and Frank Wolf, and I strongly 
urge its passage today.

                              {time}  1815

  Mr. MORAN. Mr. Speaker, further reserving the right to object, I 
yield to the gentlewoman from Illinois, Mrs. Cardiss Collins, the 
ranking Democratic member of the committee, to give what may be her 
last speech before this body. It is fitting that it be on behalf of 
public servants.
  Mrs. COLLINS of Illinois. Mr. Speaker, I certainly appreciate the 
hard work that has gone into creating this Omnibus Civil Service Reform 
Act. I want to thank the gentleman from Florida [Mr. Mica] for his 
willingness to help us get rid of section 201, which was very 
controversial, even though I know he wanted so badly to keep it in 
there. But he at least heard what we had to say. We talked with him on 
the floor, we talked with him on the telephone, we talked with him even 
in the picture-taking today. He assured me that he was going to work 
very hard at this.
  I want to also thank the ranking member of the Subcommittee on Civil 
Service, Mr. Moran, for the hard work that he has done. Since yesterday 
we have all been almost constantly in touch with each other. This is a 
fine piece of legislation. There are very good things here for civil 
service workers. I in the State of Illinois have a large number of 
civil service workers, as do all of us here.
  I think this is a great piece of legislation. I commend everyone who 
worked on it, including all the staff members in our committees as well 
as other committees who have worked on this. I thank the gentleman very 
much for this wonderful legislation.
  Ms. KAPTUR. Mr. Speaker, will the gentleman yield?
  Mr. MORAN. Further reserving the right to object, I yield to the 
gentlewoman from Ohio.
  Ms. KAPTUR. Mr. Speaker, I appreciate the gentleman yielding, albeit 
very briefly. I did want to follow up on one of the gentleman's 
comments regarding the gentlewoman from Illinois [Mrs. Collins] and her 
long service here in this institution and the tremendous contributions 
that she has made, not just on this legislation, but on important areas 
of airline safety, of sports equity, workers' rights, and humanitarian 
causes that have benefited people in our country and across the globe.
  As the gentlewoman finishes her service here in the Congress, it is 
important for the record and for the history books to note that she is 
the longest serving woman of African-American descent to have served in 
this body, and done so in such a distinguished manner for so many 
years. I wanted to call our colleagues' special attention to her and to 
thank her on behalf of the people of this institution and our country. 
I thank you, Mrs. Collins. It has been an honor to serve with you.
  Mrs. COLLINS of Illinois. Mr. Speaker, if the gentleman will continue 
to yield further, I must say how wonderful it has been to serve in this 
body since June 7, 1973. I have met so many wonderful people, all of 
you, in fact; and those here before, many of us got to know so very, 
very well. It has been a great experience.
  I could not have done a better thing than to have the opportunity and 
the honor of serving the people of the 7th Congressional District of 
Illinois, and knowing all of you. Thank you very much.
  Mr. MORAN. Mr. Speaker, further reserving the right to object, we 
certainly thank the ranking member, the distinguished gentlewoman from 
Illinois, for so many reasons, and for so much contribution to the work 
of this body. We thank the gentlewoman from Ohio [Ms. Kaptur] for her 
very appropriate remarks.
  Mr. Speaker, I yield to the gentlewoman from Florida [Mrs. Meek] who 
presented such a spirited attack on section 201 yesterday.
  Mrs. MEEK of Florida. Mr. Speaker, I thank the gentleman for yielding 
to me. I am very pleased to say thank you to the ranking member of the 
subcommittee, and to say to the chairman of the subcommittee, I know am 
very pleased at the kind of negotiations that we were able to put 
together, that we could work together in a consensus type fashion and 
come up with a bill which all of us can support. I certainly support 
this bill as it is presently constituted. I think what we have here is 
perhaps a fairer approach to the reduction in force process.
  Mr. Speaker, I want to compliment the committee for the soft landing 
kinds of initiatives which they have in the bill, and the many other 
strong things that will help Federal workers, particularly when we are 
reducing in force. Certainly we want to pay tribute to the many Federal 
workers to whom this may apply. We want everyone to be treated fairly, 
and that is what this Congress wants to do. I do not feel any pull for 
any special interest in this, but more or less the interests of the 
people involved. That has been my major interest all along, in all of 
my career work in public life.
  Mr. Speaker, I want to say again, by removing this I give my full 
support, and I know that the 11,000 Federal workers in my district and 
the almost 2 million throughout the country will be grateful. I thank 
the gentleman very much.
  Mr. MORAN. Mr. Speaker, we thank the gentlewoman from Florida.
  Further reserving the right to object, Mr. Speaker, I yield to the 
distinguished gentleman from Maryland [Mr. Hoyer]. I want to thank him 
in advance of when this gets through for using his considerable 
influence in getting it through the Senate side, after this gets 
through the House.
  Mr. HOYER. Mr. Speaker, I want to thank the gentleman for his 
comments. I appreciate his continuing efforts. Mr. Speaker, I will use 
whatever little influence I might have to do just that.
  I want to congratulate the gentleman from Florida [Mr. Mica], and the 
gentleman from Virginia [Mr. Davis]. The legislative process is a 
process in which we try to come together and reach agreement.
  Yesterday, there were some who disagreed with section 201 and there 
were some who agreed with section 201. I want to say, as I said 
yesterday, I think there is merit in the premise underlying 201, and 
will look forward to working together with both gentlemen to come up 
with a provision which does in fact say that we are not going to close 
our eyes and slavishly follow last in-first out. That is not a rational 
system. Both gentlemen were speaking to that. I understand that. I made 
the point that I thought the disparities were greater than perhaps, or 
the benefits of the outstanding performance, were greater than were 
appropriate.
  However, having said that, Mr. Speaker, this is in the best 
traditions of the legislative process, because all of us, I think to a 
person, I will be surprised if either this comes to a vote or there is 
any vote against it, because in point of fact, it was a consensus that 
the provisions in this bill were important provisions for us to extend 
to Federal employees, particularly at this time, where we are going to 
probably have involuntarily removed employees and where the soft 
landing and the other provisions provided in this bill are going to be 
important to them.

[[Page H11549]]

  While I disagreed with that particular provision, Mr. Speaker, I made 
it clear I agreed with the overwhelming majority of the work product of 
the committee. I congratulate them for bringing it back. I think this 
is in the best traditions of bipartisan legislative process, and I look 
forward to having this legislation passed.
  Yes, I would tell the gentleman from Virginia, I will work, starting 
tonight, to try to make that happen.
  Mr. MORAN. Mr. Speaker, continuing to reserve my right to object, I 
thank the distinguished gentleman from Maryland, and I thank him for 
recognizing the merits of section 201, too. I do think that at some 
point we have to figure out an appropriate way to recognize a person's 
performance as an important criteria is determining who should get 
riffed in periods of downsizing. I do not believe that pure seniority 
should be the only governing factor in determining who gets riffed. The 
fact is that everyone is not equal. Everyone does not produce equal 
levels of effort. There ought to be some way to sufficiently recognize 
people's contribution to the performance of a program and their 
dedication to its mission.
  Having said that, we have a bill that is of substantial benefit to 
Federal employees, particularly those who would be adversely affected 
by RIF's, by downsizing of the Federal Government, which we know is 
inevitable, and will inevitably continue for the next several years.
  This provides important soft landing features, and enables them to 
get preference in being hired for other functions within the agencies, 
and extends their health and life insurance, gives them some 
educational assistance. It is the right thing to do. I urge all my 
colleagues to support it.
  Mr. MICA. Mr. Speaker, will the gentleman yield?
  Mr. MORAN. I yield to the gentleman from Florida.
  Mr. MICA. Mr. Speaker, before the gentleman withdraws his objections, 
I just want to take one moment and recognize the chairman, the 
gentleman from Pennsylvania [Mr. Clinger], and our ranking member, the 
gentlewoman from Illinois [Mrs. Collins], both of whom are retiring and 
have done yeoman's service.
  Chairing this subcommittee has been like a ride at Disney World; it 
has had it ups and downs. I want to also thank the staff. They had 54 
staffers that handled civil service issues. We have done it with seven. 
We have held a record number of hearings.
  To the gentleman from Virginia [Mr. Moran] to serve alongside him has 
been an honor and privilege to me, for us working together. Sometimes 
people see the conflict of this place and the heated discussion, and 
heaven knows, I have added to some of that. But I think today, when we 
have finished our last committee meeting the gentlewoman from Maryland 
[Mrs. Morella] came over and kissed and hugged the gentlewoman from 
Illinois [Mrs. Collins] and they both said how much they were going to 
miss each other, people do not see that or appreciate the relationship 
and camaraderie that goes on here and blossoms here.
  I thank the gentleman, and I thank him for also lifting his 
objections to this.
  Mr. DAVIS. Mr. Speaker, will the gentleman yield?
  Mr. MORAN. Further reserving the right to object. I yield to the 
gentleman from Virginia.
  Mr. DAVIS. Mr. Speaker, I thank the gentleman for yielding to me.
  I am glad we are here where we are today, Mr. Speaker. Section 201, 
despite its controversy, is out of the bill now. We can accomplish some 
of the things that I think everybody agrees need to happen for Federal 
employees as we experience this downsizing over the next few years, the 
fact that some parts of the life insurance, health insurance payably by 
the Federal Government, will be continued during those downsizing 
times. There will be some job preference for Federal employees and 
future openings at the Federal level, training. These are things that 
need to be done.
  We have to be sensitive. Federal workers have undergone some very, 
very difficult times in the last few years, and I think this is one 
measure which will be some good news at a time that has otherwise sent 
the wrong message, if we are to try to continue to bring the best and 
brightest to Washington to work in the Civil Service.
  We still have a great Civil Service. I think this is bringing some 
appropriate recognition to them, and some tangible results as we go 
through some difficult times in the years ahead.
  I want to thank the chairman, the gentleman from Florida, Mr. Mica, 
the ranking member and my friend, the gentleman from northern Virginia, 
Jim Moran, the gentleman from Virginia, Frank Wolf, who helped 
introduce some of these soft landing provisions, the gentlewoman from 
Maryland, Mrs. Morella, and the gentlewoman from the District of 
Columbia, Ms. Norton, and others who have worked so hard.
  I thank the gentlewoman from Illinois, Mrs. Collins, her for efforts 
in bringing this forward after yesterday's defeat under suspension. I 
think we are about at the time where we can move it through this body, 
send it to the other body, and I hope we can get a favorable result in 
the waning hours of this Congress. I thank the gentleman for yielding.
  Mr. MORAN. Mr. Speaker, I withdraw my reservation of objection.
  The SPEAKER pro tempore (Mr. Thornberry). Is there objection to the 
request of the gentleman from Florida?
  There was no objection.
  The Clerk read the bill, as follows:

                               H.R. 3841

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Omnibus 
     Civil Service Reform Act of 1996''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                    TITLE I--DEMONSTRATION PROJECTS

Sec. 101. Demonstration projects.

                     TITLE II--SIMPLIFYING APPEALS

Sec. 201. Elimination of mixed-case procedures.
Sec. 202. Appeal to Merit Systems Protection Board as exclusive 
              administrative remedy.
Sec. 203. Agency flexibility and encouraging the use of alternative 
              dispute resolution techniques.
Sec. 204. Effective date.

             TITLE III--PERFORMANCE MANAGEMENT ENHANCEMENT

Sec. 301. Increased weight given to performance for order-of-retention 
              purposes in a reduction in force.
Sec. 302. No appeal of denial of periodic step-increases.
Sec. 303. Performance appraisals.
Sec. 304. Amendments to incentive awards authority.
Sec. 305. Due process rights of managers under negotiated grievance 
              procedures.
Sec. 306. Collection and reporting of training information.

TITLE IV--ENHANCEMENT OF THRIFT SAVINGS PLAN AND CERTAIN OTHER BENEFITS

  Subtitle A--Additional Investment Funds for the Thrift Savings Plan

Sec. 401. Short title.
Sec. 402. Additional investment funds for the Thrift Savings Plan.
Sec. 403. Acknowledgement of investment risk.
Sec. 404. Effective date.

              Subtitle B--Thrift Savings Account Liquidity

Sec. 411. Short title.
Sec. 412. Notice to spouses for in-service withdrawals; de minimus 
              accounts; Civil Service Retirement System participants.
Sec. 413. In-service withdrawals; withdrawal elections, Federal 
              Employees Retirement System participants.
Sec. 414. Survivor annuities for former spouses; notice to Federal 
              Employees Retirement System spouses for in-service 
              withdrawals.
Sec. 415. De minimus accounts relating to the judiciary.
Sec. 416. Definition of basic pay.
Sec. 417. Eligible rollover distributions.
Sec. 418. Effective date.

    Subtitle C--Other Provisions Relating to the Thrift Savings Plan

Sec. 421. Percentage limitations on contributions.
Sec. 422. Loans under the Thrift Savings Plan for furloughed employees.
Sec. 423. Immediate participation in the Thrift Savings Plan.

Subtitle D--Resumption of Certain Survivor Annuities That Terminated by 
                           Reason of Marriage

Sec. 431. Resumption of certain survivor annuities that terminated by 
              reason of marriage.

                  Subtitle E--Life Insurance Benefits

Sec. 441. Domestic relations orders.
Sec. 442. Exception from provisions requiring reduction in additional 
              optional life insurance.

[[Page H11550]]

Sec. 443. Temporary continuation of Federal employees' life insurance.

                  TITLE V--REORGANIZATION FLEXIBILITY

Sec. 501. Voluntary reductions in force.
Sec. 502. Nonreimbursable details to Federal agencies before a 
              reduction in force.

                   TITLE VI--SOFT-LANDING PROVISIONS

Sec. 601. Continued eligibility for life insurance.
Sec. 602. Continued eligibility for health insurance.
Sec. 603. Priority placement programs for Federal employees affected by 
              a reduction in force.
Sec. 604. Job placement and counseling services.
Sec. 605. Education and retraining incentives.

                        TITLE VII--MISCELLANEOUS

Sec. 701. Reimbursements relating to professional liability insurance.
Sec. 702. Employment rights following conversion to contract.
Sec. 703. Debarment of health care providers found to have engaged in 
              fraudulent practices.
Sec. 704. Extension of certain procedural and appeal rights to certain 
              personnel of the Federal Bureau of Investigation.
Sec. 705. Conversion of certain excepted service positions in the 
              United States Fire Administration to competitive service 
              positions.
Sec. 706. Eligibility for certain survivor annuity benefits.
                    TITLE I--DEMONSTRATION PROJECTS

     SEC. 101. DEMONSTRATION PROJECTS.

       (a) Definitions.--Paragraph (1) of section 4701(a) of title 
     5, United States Code, is amended by striking subparagraph 
     (A) and by redesignating subparagraphs (B) and (C) as 
     subparagraphs (A) and (B), respectively.
       (b) Pre-Implementation Procedures.--Subsection (b) of 
     section 4703 of title 5, United States Code, is amended to 
     read as follows:
       ``(b) Before an agency or the Office may conduct or enter 
     into any agreement or contract to conduct a demonstration 
     project, the Office--
       ``(1) shall develop or approve a plan for such project 
     which identifies--
       ``(A) the purposes of the project;
       ``(B) the methodology;
       ``(C) the duration; and
       ``(D) the methodology and criteria for evaluation;
       ``(2) shall publish the plan in the Federal Register;
       ``(3) may solicit comments from the public and interested 
     parties in such manner as the Office considers appropriate;
       ``(4) shall obtain approval from each agency involved of 
     the final version of the plan; and
       ``(5) shall provide notification of the proposed project, 
     at least 30 days in advance of the date any project proposed 
     under this section is to take effect--
       ``(A) to employees who are likely to be affected by the 
     project; and
       ``(B) to each House of the Congress.''.
       (c) Nonwaivable Provisions.--Section 4703(c) of title 5, 
     United States Code, is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) any provision of subchapter V of chapter 63 or 
     subpart G of this title;''; and
       (2) by striking paragraph (3) and inserting the following:
       ``(3) any provision of chapter 15 or subchapter II or III 
     of chapter 73 of this title;''.
       (d) Limitations.--Subsection (d) of section 4703 of title 
     5, United States Code, is amended to read as follows:
       ``(d)(1) Each demonstration project shall terminate before 
     the end of the 5-year period beginning on the date on which 
     the project takes effect, except that the project may 
     continue for a maximum of 2 years beyond the date to the 
     extent necessary to validate the results of the project.
       ``(2)(A) Not more than 15 active demonstration projects may 
     be in effect at any time, and of the projects in effect at 
     any time, not more than 5 may involve 5,000 or more 
     individuals each.
       ``(B) Individuals in a control group necessary to validate 
     the results of a project shall not, for purposes of any 
     determination under subparagraph (A), be considered to be 
     involved in such project.''.
       (e) Condition Relating to Bargaining Agreements.--Paragraph 
     (1) of section 4703(f) of title 5, United States Code, is 
     amended by striking ``(as defined in section 7103(8) of this 
     title)'' and inserting ``(as defined in section 7103(8), 
     excluding any agreements entered into or renewed after the 
     date of the enactment of the Omnibus Civil Service Reform Act 
     of 1996)''.
       (f) Evaluations.--Subsection (h) of section 4703 of title 
     5, United States Code, is amended by adding at the end the 
     following: ``The Office may, with respect to a demonstration 
     project conducted by another agency, require that the 
     preceding sentence be carried out by such other agency.''.
       (g) Provisions for Termination of Project or Making It 
     Permanent.--Section 4703 of title 5, United States Code, is 
     amended--
       (1) in subsection (i) by inserting ``by the Office'' after 
     ``undertaken''; and
       (2) by adding at the end the following:
       ``(j)(1) If the Office determines that termination of a 
     demonstration project (whether under subsection (e) or 
     otherwise) would result in the inequitable treatment of 
     employees who participated in the project, the Office shall 
     take such corrective action as is within its authority. If 
     the Office determines that legislation is necessary to 
     correct an inequity, it shall submit an appropriate 
     legislative proposal to both Houses of Congress.
       ``(2) If the Office determines that a demonstration project 
     should be made permanent, it shall submit an appropriate 
     legislative proposal to both Houses of Congress.''.
                     TITLE II--SIMPLIFYING APPEALS

     SEC. 201. ELIMINATION OF MIXED-CASE PROCEDURES.

       (a) In General.--Section 7702, paragraph (2) of section 
     7703(b), and the last sentence of section 7121(d) of title 5, 
     United States Code, are repealed.
       (b) Technical and Conforming Amendments.--(1) The item 
     relating to section 7702 in the table of sections at the 
     beginning of chapter 77 of title 5, United States Code, is 
     repealed.
       (2) Section 7701(e)(1) of title 5, United States Code, is 
     amended--
       (A) by striking ``(e)(1) Except as provided in section 7702 
     of this title, any'' and inserting ``(e) Any'';
       (B) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively; and
       (C) by striking ``subparagraph (A) of this paragraph.'' and 
     inserting ``paragraph (1).''.
       (3) Section 753(e)(1) of title 31, United States Code, is 
     amended by striking ``sections 7701 and 7702'' and inserting 
     ``section 7701''.
       (4) Section 7703(c) of title 5, United States Code, is 
     amended by striking the semicolon at the end of paragraph (3) 
     and all that follows through ``court.'' and inserting a 
     period.

     SEC. 202. APPEAL TO MERIT SYSTEMS PROTECTION BOARD AS 
                   EXCLUSIVE ADMINISTRATIVE REMEDY.

       (a) In General.--Section 7701(b)(1) of title 5, United 
     States Code, is amended by striking ``(b)(1)'' and inserting 
     ``(b)(1)(A)'' and by adding at the end the following:
       ``(B) Notwithstanding any other provision of law, rule, or 
     regulation, an appeal under this section shall be the 
     exclusive administrative remedy for any action by an employee 
     or applicant who--
       ``(i) has been affected by an action which the employee or 
     applicant may appeal to the Merit Systems Protection Board; 
     and
       ``(ii) alleges that a basis for the action was 
     discrimination prohibited by--
       ``(I) section 717 of the Civil Rights Act of 1964;
       ``(II) section 6(d) of the Fair Labor Standards Act of 
     1938;
       ``(III) section 501 of the Rehabilitation Act of 1973;
       ``(IV) sections 12 and 15 of the Age Discrimination in 
     Employment Act of 1967; or
       ``(V) any rule, regulation, or policy directive prescribed 
     under any provision of law described in subclauses (I) 
     through (IV).
       ``(C) In lieu of filing an appeal under this section, an 
     employee or applicant described in paragraph (B) may file a 
     civil action under--
       ``(i) section 717(c) of the Civil Rights Act of 1964 or 
     section 15(c) of the Age Discrimination in Employment Act of 
     1967, as applicable, within 90 days after receipt of notice 
     of final action taken by the agency on a complaint of 
     discrimination under a provision of law described in 
     subclause (I), (III), or (IV) of subparagraph (B)(ii) or any 
     rule, regulation, or policy directive prescribed under any 
     such provision of law; or
       ``(ii) section 16(b) of the Fair Labor Standards Act of 
     1938 within 2 years (or, if the violation is willful, within 
     3 years) after the date of an alleged violation of section 
     6(d) of the Fair Labor Standards Act of 1938 or any rule, 
     regulation, or policy directive prescribed thereunder.''.
       (b) Petition for Board Review.--(1) Section 7701(e)(1)(A) 
     of title 5, United States Code, is amended by striking ``a 
     party to the appeal or the Director'' and inserting ``a party 
     to the appeal, the Director, or the Equal Employment 
     Opportunity Commission''.
       (2) Subsection (e) of section 7701 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``(3) The Equal Employment Opportunity Commission may 
     petition the Board for review under paragraph (1) only if the 
     Commission is of the opinion that the decision is erroneous 
     and will have a substantial impact on any equal employment 
     opportunity law, rule, or regulation under the jurisdiction 
     of the Commission.''.
       (3) Subsection (d) of section 7703 of title 5, United 
     States Code, is amended to read as follows:
       ``(d)(1) The Director of the Office of Personnel Management 
     may obtain review of any final order or decision of the Board 
     by filing a petition for judicial review in the United States 
     Court of Appeals for the Federal Circuit if the Director 
     determines, in his discretion, that the Board erred in 
     interpreting a civil service law, rule, or regulation 
     affecting personnel management and that the Board's 
     decision will have a substantial impact on a civil service 
     law, rule, regulation, or policy directive.
       ``(2) The Equal Employment Opportunity Commission may 
     obtain review of any final order or decision of the Board by 
     filing a petition for judicial review in the United States 
     Court of Appeals for the Federal Circuit if the Commission 
     determines, in its discretion, that the Board erred in 
     interpreting

[[Page H11551]]

     an equal employment opportunity law and that the Board's 
     decision will have a substantial impact on an equal 
     employment opportunity law, rule, regulation, or policy 
     directive.
       ``(3) If the Director or the Commission did not intervene 
     in a matter before the Board, the Director or the Commission 
     may not petition for review of a Board decision under this 
     section unless the Director or the Commission first petitions 
     the Board for reconsideration of its decision, and such 
     petition is denied.
       ``(4) In addition to the named respondent, the Board and 
     all other parties to the proceedings before the Board shall 
     have the right to appear in the proceeding before the Court 
     of Appeals. The granting of the petition for review shall be 
     at the discretion of the Court of Appeals, except that it may 
     not deny a petition for review solely because it disagrees 
     with the determination of the Director or the Commission that 
     the Board's decision will have a substantial impact on a law, 
     rule, regulation, or policy directive within their 
     jurisdiction. The Court of Appeals shall require payment by 
     the Director or the Commission, as appropriate, of reasonable 
     attorney fees incurred by the other parties if, after 
     rendering a decision on the merits of the petition, the court 
     determines that the Board's decision would not have had a 
     substantial impact on a law, rule, regulation, or policy 
     directive within their jurisdiction.''.

     SEC. 203. AGENCY FLEXIBILITY AND ENCOURAGING THE USE OF 
                   ALTERNATIVE DISPUTE RESOLUTION TECHNIQUES.

       (a) In General.--Chapter 77 of title 5, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 7704. Alternative dispute resolution techniques

       ``Notwithstanding any other provision of law, each agency 
     (including the United States Postal Service, the Postal Rate 
     Commission, and the Tennessee Valley Authority) shall have 
     the authority to develop an internal procedure under which 
     its employees may file with the agency a complaint of 
     discrimination by the agency under the laws described in 
     subclauses (I) through (V) of section 7701(b)(1)(B)(ii), or 
     any other matter appealable to the Merit Systems Protection 
     Board or the Federal Labor Relations Authority. Agencies are 
     encouraged to use alternative dispute resolution techniques 
     in order to resolve such complaints. An agency may require 
     its employees to exhaust such internal procedure for a period 
     not to exceed 90 days before seeking external administrative 
     or judicial review under this chapter. To the extent that a 
     private entity may do so, an agency may require employees to 
     submit to alternative dispute resolution techniques in lieu 
     of other administrative or judicial review.''.
       (b) Task Force.--In order to encourage the use of 
     alternative dispute resolution techniques in resolving 
     personnel-related disputes within the Federal Government, the 
     Chairman of the Merit Systems Protection Board shall, in 
     consultation with the Chairman of the Equal Employment 
     Opportunity Commission, the Chairman of the Federal Labor 
     Relations Authority, the Director of the Office of Personnel 
     Management, the Special Counsel, and the Director of the 
     Federal Mediation and Conciliation Service, organize and 
     chair a task force--
       (1) to study and evaluate the use of alternative dispute 
     resolution techniques in resolving Federal personnel 
     disputes;
       (2) to facilitate the exchange of information between 
     agencies;
       (3) to examine and evaluate alternative dispute resolution 
     techniques used in the private sector for possible 
     application to Federal personnel disputes; and
       (4) to issue a report to Congress no later than 18 months 
     after the date of enactment of this Act on the use of 
     alternative dispute resolution techniques in personnel 
     disputes by Federal agencies, including Federal adjudicatory 
     agencies.

     The Merit Systems Protection Board shall provide 
     administrative support to the task force.

     SEC. 204. EFFECTIVE DATE.

       (a) In General.--Except as otherwise provided in this 
     section, this title and the amendments made by this title 
     shall take effect 6 months after the date of the enactment of 
     this Act.
       (b) Task Force.--Subsection (b) of section 203 shall take 
     effect on the date of the enactment of this Act.
       (c) Savings Provision.--Matters or proceedings pending as 
     of, and continuing after, the effective date of this title 
     shall continue as if this title had not been enacted.
             TITLE III--PERFORMANCE MANAGEMENT ENHANCEMENT

     SEC. 301. INCREASED WEIGHT GIVEN TO PERFORMANCE FOR ORDER-OF-
                   RETENTION PURPOSES IN A REDUCTION IN FORCE.

       (a) In General.--Section 3502 of title 5, United States 
     Code, is amended--
       (1) in subsection (a)(4) by striking ``ratings.'' and 
     inserting ``ratings, in conformance with the requirements of 
     subsection (g).''; and
       (2) by adding at the end the following:
       ``(g)(1) The regulations prescribed to carry out subsection 
     (a)(4) shall be the regulations in effect, as of January 1, 
     1996, under section 351.504 of title 5 of the Code of Federal 
     Regulations, except as otherwise provided in this subsection.
       ``(2) For purposes of this subsection--
       ``(A) subsections (b)(4) and (e) of such section 351.504 
     shall be disregarded;
       ``(B) subsection (d) of such section 351.504 shall be 
     considered to read as follows:
       `` `(d)(1) The additional service credit an employee 
     receives for performance under this subpart shall be 
     expressed in additional years of service and shall consist of 
     the sum of the employee's 3 most recent (actual and/or 
     assumed) annual performance ratings received during the 4-
     year period prior to the date of issuance of reduction-in-
     force notices or the 4-year period prior to the agency-
     established cutoff date (as appropriate), computed in 
     accordance with paragraph (2) or (3) (as appropriate).
       `` `(2) Except as provided in paragraph (3), an employee 
     shall receive--
       `` `(A) 5 additional years of service for each performance 
     rating of fully successful (Level 3) or equivalent;
       `` `(B) 7 additional years of service for each performance 
     rating of exceeds fully successful (Level 4) or equivalent; 
     and
       `` `(C) 10 additional years of service for each performance 
     rating of outstanding (Level 5) or equivalent.
       `` `(3)(A) If the employing agency uses a rating system 
     having only 1 rating to denote performance which is fully 
     successful or better, then an employee under such system 
     shall receive 5 additional years of service for each such 
     rating.
       `` `(B) If the employing agency uses a rating system having 
     only 2 ratings to denote performance which is fully 
     successful or better, then an employee under such system 
     shall receive--
       `` `(i) 5 additional years of service for each performance 
     rating at the lower of those 2 ratings; and
       `` `(ii) 7 additional years of service for each performance 
     rating at the higher of those 2 ratings.
       `` `(C) If the employing agency uses a rating system having 
     3 or more ratings to denote performance which is fully 
     successful or better, then an employee under such system 
     shall receive--
       `` `(i) 5 additional years of service for each performance 
     rating at the lowest of those 3 or more ratings;
       `` `(ii) 7 additional years of service for each performance 
     rating at the next rating above the rating referred to in 
     clause (i); and
       `` `(iii) 10 additional years of service for each 
     performance rating above the rating referred to in clause 
     (ii).
       `` `(D) For purposes of this paragraph, a rating shall not 
     be considered to denote performance which is fully successful 
     or better unless, in order to receive such rating, such 
     performance must satisfy all requirements for a fully 
     successful rating (Level 3) or equivalent, as established 
     under part 430 of this chapter (as in effect as of January 1, 
     1996).'; and
       ``(C) subsection (c) of such section shall be considered to 
     read as follows:
       `` `(c)(1) Service credit for employees who do not have 3 
     actual annual performance ratings of record received during 
     the 4-year period prior to the date of issuance of reduction-
     in-force notices, or the 4-year period prior to the agency-
     established cutoff date for ratings permitted in subsection 
     (b)(2) of this section, shall be determined in accordance 
     with paragraph (2).
       `` `(2) An employee who has not received 1 or more of the 3 
     annual performance ratings of record required under this 
     section shall--
       `` `(A) receive credit for performance on the basis of the 
     rating or ratings actually received (if any); and
       `` `(B) for each performance rating not actually received, 
     be given credit for 5 additional years of service.'.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to reductions in force taking effect 
     on or after October 1, 1999.

     SEC. 302. NO APPEAL OF DENIAL OF PERIODIC STEP-INCREASES.

       (a) In General.--Section 5335(c) of title 5, United States 
     Code, is amended--
       (1) by striking the second sentence;
       (2) in the third sentence by striking ``or appeal''; and
       (3) in the last sentence by striking ``and the entitlement 
     of the employee to appeal to the Board do not apply'' and 
     inserting ``does not apply''.
       (b) Performance Ratings.--Section 5335 of title 5, United 
     States Code, as amended by subsection (a), is further 
     amended--
       (1) in subsections (a)(B) and (c) by striking ``of an 
     acceptable level of competence'' and inserting ``at least 
     fully successful'';
       (2) in the last sentence of subsection (c) by striking 
     ``acceptable level of competence'' and inserting ``fully 
     successful work performance''; and
       (3) by adding at the end the following:
       ``(g) For purposes of this section, the term `fully 
     successful' has a meaning similar to that given under section 
     351.504(d)(3)(D) of title 5 of the Code of Federal 
     Regulations (as deemed to be amended by section 301(a)(2) of 
     the Omnibus Civil Service Reform Act of 1996).''.

     SEC. 303. PERFORMANCE APPRAISALS.

       (a) In General.--Section 4302 of title 5, United States 
     Code, is amended--
       (1) in subsection (b) by striking paragraphs (5) and (6) 
     and inserting the following:
       ``(5) assisting employees in improving unacceptable 
     performance, except in circumstances described in subsection 
     (c); and
       ``(6) reassigning, reducing in grade, removing, or taking 
     other appropriate action against employees whose performance 
     is unacceptable.''; and

[[Page H11552]]

       (2) by adding at the end the following:
       ``(c) Upon notification of unacceptable performance, an 
     employee shall be afforded an opportunity to demonstrate 
     acceptable performance before a reduction in grade or removal 
     may be proposed under section 4303 based on such performance, 
     except that an employee so afforded such an opportunity shall 
     not be afforded any further opportunity to demonstrate 
     acceptable performance if the employee's performance again is 
     determined to be at an unacceptable level.''.
       (b) Effective Date.--
       (1) In general.--Subject to paragraph (2), this section and 
     the amendments made by this section shall take effect 180 
     days after the date of the enactment of this Act.
       (2) Exception.--The amendments made by this section shall 
     not apply in the case of any proposed action as to which the 
     employee receives advance written notice, in accordance with 
     section 4303(b)(1)(A) of title 5, United States Code, before 
     the effective date of this section.

     SEC. 304. AMENDMENTS TO INCENTIVE AWARDS AUTHORITY.

       Chapter 45 of title 5, United States Code, is amended--
       (1) by amending section 4501 to read as follows:

     ``Sec. 4501. Definitions

       ``For the purpose of this subchapter--
       ``(1) the term `agency' means--
       ``(A) an Executive agency;
       ``(B) the Library of Congress;
       ``(C) the Office of the Architect of the Capitol;
       ``(D) the Botanic Garden;
       ``(E) the Government Printing Office; and
       ``(F) the United States Sentencing Commission;

     but does not include--
       ``(i) the Tennessee Valley Authority; or
       ``(ii) the Central Bank for Cooperatives;
       ``(2) the term `employee' means an employee as defined by 
     section 2105; and
       ``(3) the term `Government' means the Government of the 
     United States.''; and
       (2) by amending section 4503 to read as follows:

     ``Sec. 4503. Agency awards

       ``(a) The head of an agency may pay a cash award to, and 
     incur necessary expense for the honorary recognition of, an 
     employee who--
       ``(1) by his suggestion, invention, superior 
     accomplishment, sustained superior performance, or other 
     personal effort contributes to the efficiency, economy, or 
     other improvement of Government operations or achieves a 
     significant reduction in paperwork; or
       ``(2) performs a special act or service in the public 
     interest in connection with or related to his official 
     employment.
       ``(b)(1) If the criteria under paragraph (1) or (2) of 
     subsection (a) are met on the basis of the suggestion, 
     invention, superior accomplishment, act, service, or other 
     meritorious effort of a group of employees collectively, and 
     if the circumstances so warrant (such as by reason of the 
     infeasibility of determining the relative role or 
     contribution assignable to each employee separately), 
     authority under subsection (a) may be exercised--
       ``(A) based on the collective efforts of the group; and
       ``(B) with respect to each member of such group.
       ``(2) The amount awarded to each member of a group under 
     this subsection--
       ``(A) shall be the same for all members of such group; and
       ``(B) may not exceed the maximum cash award allowable under 
     subsection (a) or (b) of section 4502, as applicable.''.

     SEC. 305. DUE PROCESS RIGHTS OF MANAGERS UNDER NEGOTIATED 
                   GRIEVANCE PROCEDURES.

       (a) In General.--Paragraph (2) of section 7121(b) of title 
     5, United States Code, is amended to read as follows:
       ``(2) The provisions of a negotiated grievance procedure 
     providing for binding arbitration in accordance with 
     paragraph (1)(C)(iii) shall, if or to the extent that an 
     alleged prohibited personnel practice is involved, allow the 
     arbitrator to order a stay of any personnel action in a 
     manner similar to the manner described in section 1221(c) 
     with respect to the Merit Systems Protection Board.''.
       (b) Effective Date.--The amendment made by subsection (a)--
       (1) shall take effect on the date of the enactment of this 
     Act; and
       (2) shall apply with respect to orders issued on or after 
     the date of the enactment of this Act, notwithstanding the 
     provisions of any collective bargaining agreement.

     SEC. 306. COLLECTION AND REPORTING OF TRAINING INFORMATION.

       (a) Training Within Government.--The Office of Personnel 
     Management shall collect information concerning training 
     programs, plans, and methods utilized by agencies of the 
     Government and submit a report to the Congress on this 
     activity on an annual basis.
       (b) Training Outside of Government.--The Office of 
     Personnel Management, to the extent it considers appropriate 
     in the public interest, may collect information concerning 
     training programs, plans, and methods utilized outside the 
     Government. The Office, on request, may make such information 
     available to an agency and to Congress.
TITLE IV--ENHANCEMENT OF THRIFT SAVINGS PLAN AND CERTAIN OTHER BENEFITS
  Subtitle A--Additional Investment Funds for the Thrift Savings Plan

     SEC. 401. SHORT TITLE.

       This subtitle may be cited as the ``Thrift Savings 
     Investment Funds Act of 1996''.

     SEC. 402. ADDITIONAL INVESTMENT FUNDS FOR THE THRIFT SAVINGS 
                   PLAN.

       Section 8438 of title 5, United States Code, is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (5) through (8) as 
     paragraphs (6) through (9), respectively;
       (B) by inserting after paragraph (4) the following new 
     paragraph:
       ``(5) the term `International Stock Index Investment Fund' 
     means the International Stock Index Investment Fund 
     established under subsection (b)(1)(E);'';
       (C) in paragraph (8) (as redesignated by subparagraph (A) 
     of this paragraph) by striking out ``and'' at the end 
     thereof;
       (D) in paragraph (9) (as redesignated by subparagraph (A) 
     of this paragraph)--
       (i) by striking out ``paragraph (7)(D)'' in each place it 
     appears and inserting in each such place ``paragraph 
     (8)(D)''; and
       (ii) by striking out the period and inserting in lieu 
     thereof a semicolon and ``and''; and
       (E) by adding at the end thereof the following new 
     paragraph:
       ``(10) the term `Small Capitalization Stock Index 
     Investment Fund' means the Small Capitalization Stock Index 
     Investment Fund established under subsection (b)(1)(D).''; 
     and
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (B) by striking out ``and'' at the end 
     thereof;
       (ii) in subparagraph (C) by striking out the period and 
     inserting in lieu thereof a semicolon; and
       (iii) by adding at the end thereof the following new 
     subparagraphs:
       ``(D) a Small Capitalization Stock Index Investment Fund as 
     provided in paragraph (3); and
       ``(E) an International Stock Index Investment Fund as 
     provided in paragraph (4).''; and
       (B) by adding at the end thereof the following new 
     paragraphs:
       ``(3)(A) The Board shall select an index which is a 
     commonly recognized index comprised of common stock the 
     aggregate market value of which represents the United States 
     equity markets excluding the common stocks included in the 
     Common Stock Index Investment Fund.
       ``(B) The Small Capitalization Stock Index Investment Fund 
     shall be invested in a portfolio designed to replicate the 
     performance of the index in subparagraph (A). The portfolio 
     shall be designed such that, to the extent practicable, the 
     percentage of the Small Capitalization Stock Index Investment 
     Fund that is invested in each stock is the same as the 
     percentage determined by dividing the aggregate market value 
     of all shares of that stock by the aggregate market value of 
     all shares of all stocks included in such index.
       ``(4)(A) The Board shall select an index which is a 
     commonly recognized index comprised of stock the aggregate 
     market value of which is a reasonably complete representation 
     of the international equity markets excluding the United 
     States equity markets.
       ``(B) The International Stock Index Investment Fund shall 
     be invested in a portfolio designed to replicate the 
     performance of the index in subparagraph (A). The portfolio 
     shall be designed such that, to the extent practicable, the 
     percentage of the International Stock Index Investment Fund 
     that is invested in each stock is the same as the percentage 
     determined by dividing the aggregate market value of all 
     shares of that stock by the aggregate market value of all 
     shares of all stocks included in such index.''.

     SEC. 403. ACKNOWLEDGEMENT OF INVESTMENT RISK.

       Section 8439(d) of title 5, United States Code, is amended 
     by striking out ``Each employee, Member, former employee, or 
     former Member who elects to invest in the Common Stock Index 
     Investment Fund or the Fixed Income Investment Fund described 
     in paragraphs (1) and (3),'' and inserting in lieu thereof 
     ``Each employee, Member, former employee, or former Member 
     who elects to invest in the Common Stock Index Investment 
     Fund, the Fixed Income Investment Fund, the International 
     Stock Index Investment Fund, or the Small Capitalization 
     Stock Index Investment Fund, defined in paragraphs (1), (3), 
     (5), and (10),''.

     SEC. 404. EFFECTIVE DATE.

       This subtitle shall take effect on the date of enactment of 
     this Act, and the Funds established under this subtitle shall 
     be offered for investment at the earliest practicable 
     election period (described in section 8432(b) of title 5, 
     United States Code) as determined by the Executive Director 
     in regulations.
              Subtitle B--Thrift Savings Account Liquidity

     SEC. 411. SHORT TITLE.

       This subtitle may be cited as the ``Thrift Savings Plan Act 
     of 1996''.

     SEC. 412. NOTICE TO SPOUSES FOR IN-SERVICE WITHDRAWALS; DE 
                   MINIMUS ACCOUNTS; CIVIL SERVICE RETIREMENT 
                   SYSTEM PARTICIPANTS.

       Section 8351(b) of title 5, United States Code, is 
     amended--
       (1) in paragraph (5)--
       (A) in subparagraph (B)--
       (i) by striking out ``An election, change of election, or 
     modification (relating to the commencement date of a deferred 
     annuity)'' and inserting in lieu thereof ``An election or 
     change of election'';

[[Page H11553]]

       (ii) by inserting ``or withdrawal'' after ``and a loan'';
       (iii) by inserting ``and (h)'' after ``8433(g)'';
       (iv) by striking out ``the election, change of election, or 
     modification'' and inserting in lieu thereof ``the election 
     or change of election''; and
       (v) by inserting ``or withdrawal'' after ``for such loan''; 
     and
       (B) in subparagraph (D)--
       (i) by inserting ``or withdrawals'' after ``of loans''; and
       (ii) by inserting ``or (h)'' after ``8433(g)''; and
       (2) in paragraph (6)--
       (A) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation''; and
       (B) by striking out ``unless the employee or Member elects, 
     at such time and otherwise in such manner as the Executive 
     Director prescribes, one of the options available under 
     subsection (b)''.

     SEC. 413. IN-SERVICE WITHDRAWALS; WITHDRAWAL ELECTIONS, 
                   FEDERAL EMPLOYEES RETIREMENT SYSTEM 
                   PARTICIPANTS.

       (a) In General.--Section 8433 of title 5, United States 
     Code, is amended--
       (1) by striking out subsections (b) and (c) and inserting 
     in lieu thereof the following:
       ``(b) Subject to section 8435 of this title, any employee 
     or Member who separates from Government employment is 
     entitled and may elect to withdraw from the Thrift Savings 
     Fund the balance of the employee's or Member's account as--
       ``(1) an annuity;
       ``(2) a single payment;
       ``(3) 2 or more substantially equal payments to be made not 
     less frequently than annually; or
       ``(4) any combination of payments as provided under 
     paragraphs (1) through (3) as the Executive Director may 
     prescribe by regulation.
       ``(c)(1) In addition to the right provided under subsection 
     (b) to withdraw the balance of the account, an employee or 
     Member who separates from Government service and who has not 
     made a withdrawal under subsection (h)(1)(A) may make one 
     withdrawal of any amount as a single payment in accordance 
     with subsection (b)(2) from the employee's or Member's 
     account.
       ``(2) An employee or Member may request that the amount 
     withdrawn from the Thrift Savings Fund in accordance with 
     subsection (b)(2) be transferred to an eligible retirement 
     plan.
       ``(3) The Executive Director shall make each transfer 
     elected under paragraph (2) directly to an eligible 
     retirement plan or plans (as defined in section 402(c)(8) of 
     the Internal Revenue Code of 1986) identified by the 
     employee, Member, former employee, or former Member for whom 
     the transfer is made.
       ``(4) A transfer may not be made for an employee, Member, 
     former employee, or former Member under paragraph (2) until 
     the Executive Director receives from that individual the 
     information required by the Executive Director specifically 
     to identify the eligible retirement plan or plans to which 
     the transfer is to be made.'';
       (2) in subsection (d)--
       (A) in paragraph (1) by striking out ``Subject to paragraph 
     (3)(A)'' and inserting in lieu thereof ``Subject to paragraph 
     (3)'';
       (B) by striking out paragraph (2) and redesignating 
     paragraph (3) as paragraph (2); and
       (C) in paragraph (2) (as redesignated under subparagraph 
     (B) of this paragraph)--
       (i) in subparagraph (A) by striking out ``(A)''; and
       (ii) by striking out subparagraph (B);
       (3) in subsection (f)(1)--
       (A) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation; and
       (B) by striking out ``unless the employee or Member elects, 
     at such time and otherwise in such manner as the Executive 
     Director prescribes, one of the options available under 
     subsection (b), or'' and inserting a comma;
       (4) in subsection (f)(2)--
       (A) by striking out ``February 1'' and inserting in lieu 
     thereof ``April 1'';
       (B) in subparagraph (A)--
       (i) by striking out ``65'' and inserting in lieu thereof 
     ``70\1/2\''; and
       (ii) by inserting ``or'' after the semicolon;
       (C) by striking out subparagraph (B); and
       (D) by redesignating subparagraph (C) as subparagraph (B);
       (5) in subsection (g)--
       (A) in paragraph (1) by striking out ``after December 31, 
     1987, and''; and
       (B) by striking out paragraph (2) and redesignating 
     paragraphs (3) through (5) as paragraphs (2) through (4), 
     respectively; and
       (6) by adding after subsection (g) the following new 
     subsection:
       ``(h)(1) An employee or Member may apply, before 
     separation, to the Board for permission to withdraw an amount 
     from the employee's or Member's account based upon--
       ``(A) the employee or Member having attained age 59\1/2\; 
     or
       ``(B) financial hardship.
       ``(2) A withdrawal under paragraph (1)(A) shall be 
     available to each eligible participant one time only.
       ``(3) A withdrawal under paragraph (1)(B) shall be 
     available only for an amount not exceeding the value of that 
     portion of such account which is attributable to 
     contributions made by the employee or Member under section 
     8432(a) of this title.
       ``(4) Withdrawals under paragraph (1) shall be subject to 
     such other conditions as the Executive Director may prescribe 
     by regulation.
       ``(5) A withdrawal may not be made under this subsection 
     unless the requirements of section 8435(e) of this title are 
     satisfied.''.
       (b) Invalidity of Certain Prior Elections.--Any election 
     made under section 8433(b)(2) of title 5, United States Code 
     (as in effect before the effective date of this title), with 
     respect to an annuity which has not commenced before the 
     implementation date of this title as provided by regulation 
     by the Executive Director in accordance with section 407, 
     shall be invalid.

     SEC. 414. SURVIVOR ANNUITIES FOR FORMER SPOUSES; NOTICE TO 
                   FEDERAL EMPLOYEES RETIREMENT SYSTEM SPOUSES FOR 
                   IN-SERVICE WITHDRAWALS.

       Section 8435 of title 5, United States Code, is amended--
       (1) in subsection (a)(1)(A)--
       (A) by striking out ``may make an election under subsection 
     (b)(3) or (b)(4) of section 8433 of this title or change an 
     election previously made under subsection (b)(1) or (b)(2) of 
     such section'' and inserting in lien thereof ``may withdraw 
     all or part of a Thrift Savings Fund account under subsection 
     (b) (2), (3), or (4) of section 8433 of this title or change 
     a withdrawal election''; and
       (B) by adding at the end thereof ``A married employee or 
     Member (or former employee or Member) may make a withdrawal 
     from a Thrift Savings Fund account under subsection (c)(1) of 
     section 8433 of this title only if the employee or Member (or 
     former employee or Member) satisfies the requirements of 
     subparagraph (B).'';
       (2) in subsection (c)--
       (A) in paragraph (1)--
       (i) by striking out ``An election, change of election, or 
     modification of the commencement date of a deferred annuity'' 
     and inserting in lieu thereof ``An election or change of 
     election''; and
       (ii) by striking out ``modification, or transfer'' and 
     inserting in lien thereof ``or transfer''; and
       (B) in paragraph (2) in the matter following subparagraph 
     (B)(ii) by striking out ``modification,'';
       (3) in subsection (e)--
       (A) in paragraph (1)--
       (i) in subparagraph (A)--

       (I) by inserting ``or withdrawal'' after ``A loan'';
       (II) by inserting ``and (h)'' after ``8433(g)''; and
       (III) by inserting ``or withdrawal'' after ``such loan'';

       (ii) in subparagraph (B) by inserting ``or withdrawal'' 
     after ``loan''; and
       (iii) in subparagraph (C)--

       (I) by inserting ``or withdrawal'' after ``to a loan''; and
       (II) by inserting ``or withdrawal'' after ``for such 
     loan''; and

       (B) in paragraph (2)--
       (i) by inserting ``or withdrawal'' after ``loan''; and
       (ii) by inserting ``and (h)'' after ``8344(g)''; and
       (4) in subsection (g)--
       (A) by inserting ``or withdrawals'' after ``loans''; and
       (B) by inserting ``and (h)'' after ``8344(g)''.

     SEC. 415. DE MINIMUS ACCOUNTS RELATING TO THE JUDICIARY.

       (a) Justices and Judges.--Section 8440a(b)(7) of title 5, 
     United States Code, is amended--
       (1) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation''; and
       (2) by striking out ``unless the justice or judge elects, 
     at such time and otherwise in such manner as the Executive 
     Director prescribes, one of the options available under 
     section 8433(b)''.
       (b) Bankruptcy Judges and Magistrates.--Section 8440b(b) of 
     title 5, United States Code, is amended--
       (1) in paragraph (7) in the first sentence by inserting 
     ``of the distribution'' after ``equal to the amount''; and
       (2) in paragraph (8)--
       (A) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation''; and
       (B) by striking out ``unless the bankruptcy judge or 
     magistrate elects, at such time and otherwise in such manner 
     as the Executive Director prescribes, one of the options 
     available under subsection (b)''.
       (c) Federal Claims Judges.--Section 8440c(b) of title 5, 
     United States Code, is amended--
       (1) in paragraph (7) in the first sentence by inserting 
     ``of the distribution'' after ``equal to the amount''; and
       (2) in paragraph (8)--
       (A) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation''; and
       (B) by striking out ``unless the judge elects, at such time 
     and otherwise in such manner as the Executive Director 
     prescribes, one of the options available under section 
     8433(b)''.

     SEC. 416. DEFINITION OF BASIC PAY.

       (a) In General.--(1) Section 8401(4) of title 5, United 
     States Code, is amended by striking out ``except as provided 
     in subchapter III of this chapter,''.
       (2) Section 8431 of title 5, United States Code, is 
     repealed.

[[Page H11554]]

       (b) Technical and Conforming Amendments.--(1) The table of 
     sections for chapter 84 of title 5, United States Code, is 
     amended by striking out the item relating to section 8431.
       (2) Section 5545a(h)(2)(A) of title 5, United States Code, 
     is amended by striking out ``8431,''.
       (3) Section 615(f) of the Treasury, Postal Service, and 
     General Government Appropriations Act, 1996 (Public Law 104-
     52; 109 Stat. 500; 5 U.S.C. 5343 note) is amended by striking 
     out ``section 8431 of title 5, United States Code,''.

     SEC. 417. ELIGIBLE ROLLOVER DISTRIBUTIONS.

       Section 8432 of title 5, United States Code, is amended by 
     adding at the end the following:
       ``(j)(1) For the purpose of this subsection--
       ``(A) the term `eligible rollover distribution' has the 
     meaning given such term by section 402(c)(4) of the Internal 
     Revenue Code of 1986; and
       ``(B) the term `qualified trust' has the meaning given such 
     term by section 402(c)(8) of the Internal Revenue Code of 
     1986.
       ``(2) An employee or Member may contribute to the Thrift 
     Savings Fund an eligible rollover distribution from a 
     qualified trust. A contribution made under this subsection 
     shall be made in the form described in section 401(a)(31) of 
     the Internal Revenue Code of 1986. In the case of an eligible 
     rollover distribution, the maximum amount transferred to the 
     Thrift Savings Fund shall not exceed the amount which would 
     otherwise have been included in the employee's or Member's 
     gross income for Federal income tax purposes.
       ``(3) The Executive Director shall prescribe regulations to 
     carry out this subsection.''.

     SEC. 418. EFFECTIVE DATE.

       This subtitle shall take effect on the date of the 
     enactment of this Act and withdrawals and elections as 
     provided under the amendments made by this subtitle shall be 
     made at the earliest practicable date as determined by the 
     Executive Director in regulations.
    Subtitle C--Other Provisions Relating to the Thrift Savings Plan

     SEC. 421. PERCENTAGE LIMITATIONS ON CONTRIBUTIONS.

       (a) Amendments Relating to FERS.--
       (1) In general.--Subsection (a) of section 8432 of title 5, 
     United States Code, is amended by striking ``10 percent of''.
       (2) Justices and judges.--Subsection (b) of section 8440a 
     of title 5, United States Code, is amended--
       (A) by striking paragraph (2) and by redesignating 
     paragraphs (3) through (7) as paragraphs (2) through (6), 
     respectively; and
       (B) in paragraph (6) (as so redesignated by subparagraph 
     (A)) by striking ``paragraphs (4) and (5)'' and inserting 
     ``paragraphs (3) and (4)''.
       (3) Bankruptcy judges and magistrates.--Subsection (b) of 
     section 8440b of title 5, United States Code, is amended--
       (A) by striking paragraph (2) and by redesignating 
     paragraphs (3) through (8) as paragraphs (2) through (7), 
     respectively;
       (B) in paragraph (4) (as so redesignated by subparagraph 
     (A)) by striking ``paragraph (4)(A), (B), or (C)'' and 
     inserting ``paragraph (3)(A), (B), or (C)''; and
       (C) in paragraph (7) (as so redesignated by subparagraph 
     (A)) by striking ``Notwithstanding paragraph (4),'' and 
     inserting ``Notwithstanding paragraph (3),''.
       (4) Court of federal claims judges.--Subsection (b) of 
     section 8440c of title 5, United States Code, is amended--
       (A) by striking paragraph (2) and by redesignating 
     paragraphs (3) through (8) as paragraphs (2) through (7), 
     respectively;
       (B) in paragraph (4) (as so redesignated by subparagraph 
     (A)) by striking ``paragraph (4)(A) or (B)'' and inserting 
     ``paragraph (3)(A) or (B)''; and
       (C) in paragraph (7) (as so redesignated by subparagraph 
     (A)) by striking ``Notwithstanding paragraph (4),'' and 
     inserting ``Notwithstanding paragraph (3),''.
       (5) Judges of the united states court of veterans 
     appeals.--Paragraph (2) of section 8440d(b) of title 5, 
     United States Code, is amended to read as follows:
       ``(2) For purposes of contributions made to the Thrift 
     Savings Fund, basic pay does not include any retired pay paid 
     pursuant to section 7296 of title 38.''.
       (b) Amendments Relating to CSRS.--Paragraph (2) of section 
     8351(b) of title 5, United States Code, is amended by 
     striking ``5 percent of''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect 6 months after the date of the enactment of this 
     Act or such earlier date as the Executive Director may by 
     regulation prescribe.
       (2) Coordination with election periods.--The Executive 
     Director shall by regulation determine the first election 
     period in which elections may be made consistent with the 
     amendments made by this section.
       (3) Definitions.--For purposes of this subsection--
       (A) the term ``election period'' means a period afforded 
     under section 8432(b) of title 5, United States Code; and
       (B) the term ``Executive Director'' has the meaning given 
     such term by section 8401(13) of title 5, United States Code.

     SEC. 422. LOANS UNDER THE THRIFT SAVINGS PLAN FOR FURLOUGHED 
                   EMPLOYEES.

       Section 8433(g) of title 5, United States Code, is amended 
     by adding at the end the following:
       ``(6) An employee who has been furloughed due to a lapse in 
     appropriations may not be denied a loan under this subsection 
     solely because such employee is not in a pay status.''.

     SEC. 423. IMMEDIATE PARTICIPATION IN THE THRIFT SAVINGS PLAN.

       (a) Elimination of Certain Waiting Periods for Purposes of 
     Employee Contributions.--Paragraph (4) of section 8432(b) of 
     title 5, United States Code, is amended to read as follows:
       ``(4) The Executive Director shall prescribe such 
     regulations as may be necessary to carry out the following:
       ``(A) Notwithstanding subparagraph (A) of paragraph (2), an 
     employee or Member described in such subparagraph shall be 
     afforded a reasonable opportunity to first make an election 
     under this subsection beginning on the date of commencing 
     service or, if that is not administratively feasible, 
     beginning on the earliest date thereafter that such an 
     election becomes administratively feasible, as determined by 
     the Executive Director.
       ``(B) An employee or Member described in subparagraph (B) 
     of paragraph (2) shall be afforded a reasonable opportunity 
     to first make an election under this subsection (based on the 
     appointment or election described in such subparagraph) 
     beginning on the date of commencing service pursuant to such 
     appointment or election or, if that is not administratively 
     feasible, beginning on the earliest date thereafter that such 
     an election becomes administratively feasible, as determined 
     by the Executive Director.
       ``(C) Notwithstanding the preceding provisions of this 
     paragraph, contributions under paragraphs (1) and (2) of 
     subsection (c) shall not be payable with respect to any pay 
     period before the earliest pay period for which such 
     contributions would otherwise be allowable under this 
     subsection if this paragraph had not been enacted.
       ``(D) Sections 8351(a)(2), 8440a(a)(2), 8440b(a)(2), 
     8440c(a)(2), and 8440d(a)(2) shall be applied in a manner 
     consistent with the purposes of subparagraphs (A) and (B), to 
     the extent those subparagraphs can be applied with respect 
     thereto.
       ``(E) Nothing in this paragraph shall affect paragraph 
     (3).''.
       (b) Technical and Conforming Amendments.--(1) Section 
     8432(a) of title 5, United States Code, is amended--
       (A) in the first sentence by striking ``(b)(1)'' and 
     inserting ``(b)''; and
       (B) by amending the second sentence to read as follows: 
     ``Contributions under this subsection pursuant to such an 
     election shall, with respect to each pay period for which 
     such election remains in effect, be made in accordance with a 
     program of regular contributions provided in regulations 
     prescribed by the Executive Director.''.
       (2) Section 8432(b)(1)(B) of such title is amended by 
     inserting ``(or any election allowable by virtue of paragraph 
     (4))'' after ``subparagraph (A)''.
       (3) Section 8432(b)(3) of such title is amended by striking 
     ``Notwithstanding paragraph (2)(A), an'' and inserting 
     ``An''.
       (4) Section 8432(i)(1)(B)(ii) of such title is amended by 
     striking ``either elected to terminate individual 
     contributions to the Thrift Savings Fund within 2 months 
     before commencing military service or''.
       (5) Section 8439(a)(1) of such title is amended by 
     inserting ``who makes contributions or'' after ``for each 
     individual'' and by striking ``section 8432(c)(1)'' and 
     inserting ``section 8432''.
       (6) Section 8439(c)(2) of such title is amended by adding 
     at the end the following: ``Nothing in this paragraph shall 
     be considered to limit the dissemination of information only 
     to the times required under the preceding sentence.''.
       (7) Sections 8440a(a)(2) and 8440d(a)(2) of such title are 
     amended by striking all after ``subject to'' and inserting 
     ``subject to this chapter.''.
       (c) Effective Date.--This section shall take effect 6 
     months after the date of the enactment of this Act or such 
     earlier date as the Executive Director (within the meaning of 
     section 8401(13) of title 5, United States Code) may by 
     regulation prescribe.
Subtitle D--Resumption of Certain Survivor Annuities That Terminated by 
                           Reason of Marriage

     SEC. 431. RESUMPTION OF CERTAIN SURVIVOR ANNUITIES THAT 
                   TERMINATED BY REASON OF MARRIAGE.

       (a) Civil Service Retirement System.--Section 8341(e) of 
     title 5, United States Code, is amended by adding at the end 
     the following:
       ``(4) If the annuity of a child under this subchapter 
     terminates under paragraph (3)(E) because of marriage, then, 
     if such marriage ends (whether by death of the spouse, 
     divorce, or annulment), such annuity shall resume on the 
     first day of the month in which the marriage ends, but only 
     if--
       ``(A) any lump sum paid is returned to the Fund; and
       ``(B) that individual is not otherwise ineligible for such 
     annuity.''.
       (b) Federal Employees' Retirement System.--Section 8443(b) 
     of such title is amended by adding at the end the following: 
     ``If the annuity of a child under this subchapter terminates 
     under subparagraph (E) because of marriage, then, if such 
     marriage ends (whether by death of the spouse, divorce, or 
     annulment), such annuity shall resume on the first day of the 
     month in which the marriage ends, but only if any lump sum 
     paid is

[[Page H11555]]

     returned to the Fund, and that individual is not otherwise 
     ineligible for such annuity.''.
       (c) Health Benefits Program.--Section 8908 of title 5, 
     United States Code, is amended by adding at the end the 
     following:
       ``(d) An individual--
       ``(1) whose survivor annuity under section 8341(e) is 
     terminated, and then later restored under paragraph (4) 
     thereof, or
       ``(2) whose survivor annuity under section 8443(b) is 
     terminated, and then later restored under the last sentence 
     thereof,

     may, under regulations prescribed by the Office, enroll in a 
     health benefits plan described by section 8903 or 8903a if 
     such individual was covered by any such plan immediately 
     before such annuity so terminated.''.
       (d) Applicability.--The amendments made by this section 
     shall apply with respect to any termination of marriage 
     taking effect before, on, or after the date of the enactment 
     of this Act, except that no amount shall be payable by reason 
     of the amendments made by subsections (a) and (b), 
     respectively, except to the extent of any amounts accruing 
     for periods beginning on or after the first day of the first 
     month beginning on or after the later of--
       (1) the date of the enactment of this Act; or
       (2) the date as of which termination of marriage takes 
     effect.
                  Subtitle E--Life Insurance Benefits

     SEC. 441. DOMESTIC RELATIONS ORDERS.

       (a) In General.--Section 8705 of title 5, United States 
     Code, is amended--
       (1) in subsection (a) by striking ``(a) The'' and inserting 
     ``(a) Except as provided in subsection (e), the''; and
       (2) by adding at the end the following:
       ``(e)(1) Any amount which would otherwise be paid to a 
     person determined under the order of precedence named by 
     subsection (a) shall be paid (in whole or in part) by the 
     Office to another person if and to the extent expressly 
     provided for in the terms of any court decree of divorce, 
     annulment, or legal separation, or the terms of any court 
     order or court-approved property settlement agreement 
     incident to any court decree of divorce, annulment, or legal 
     separation.
       ``(2) For purposes of this subsection, a decree, order, or 
     agreement referred to in paragraph (1) shall not be effective 
     unless it is received, before the date of the covered 
     employee's death, by the employing agency or, if the employee 
     has separated from service, by the Office.
       ``(3) A designation under this subsection with respect to 
     any person may not be changed except--
       ``(A) with the written consent of such person, if received 
     as described in paragraph (2); or
       ``(B) by modification of the decree, order, or agreement, 
     as the case may be, if received as described in paragraph 
     (2).
       ``(4) The Office shall prescribe any regulations necessary 
     to carry out this subsection, including regulations for the 
     application of this subsection in the event that 2 or more 
     decrees, orders, or agreements, are received with respect to 
     the same amount.''.
       (b) Directed Assignment.--Section 8706(e) of title 5, 
     United States Code, is amended--
       (1) by striking ``(e)'' and inserting ``(e)(1)''; and
       (2) by adding at the end the following:
       ``(2) A court decree of divorce, annulment, or legal 
     separation, or the terms of a court-approved property 
     settlement agreement incidental to any court decree of 
     divorce, annulment, or legal separation, may direct that an 
     insured employee or former employee make an irrevocable 
     assignment of the employee's or former employee's incidents 
     of ownership in insurance under this chapter (if there is no 
     previous assignment) to the person specified in the court 
     order or court-approved property settlement agreement.''.

     SEC. 442. EXCEPTION FROM PROVISIONS REQUIRING REDUCTION IN 
                   ADDITIONAL OPTIONAL LIFE INSURANCE.

       (a) In General.--Subsection (c) of section 8714b of title 
     5, United States Code, is amended by adding at the end the 
     following:
       ``(3)(A) The amount of additional optional insurance 
     continued under paragraph (2) shall be continued, without any 
     reduction under the last two sentences thereof, if--
       ``(i) at the time of retirement, there is in effect a 
     designation under section 8705 under which the entire amount 
     of such insurance would be paid to an individual who is 
     permanently disabled; and
       ``(ii) an election under subsection (d)(3) on behalf of 
     such individual is made in timely fashion.
       ``(B) Notwithstanding subparagraph (A), any reduction 
     required under paragraph (2) shall be made if--
       ``(i) the additional optional insurance is not in fact paid 
     in accordance with the designation under section 8705, as in 
     effect at the time of retirement;
       ``(ii) the Office finds that adequate arrangements have not 
     been made to ensure that the insurance provided under this 
     section will be used only for the care and support of the 
     individual so designated; or
       ``(iii) the election referred to in subparagraph (A)(ii) 
     terminates at any time before the death of the individual who 
     made such election.
       ``(C) For purposes of this paragraph, the term `permanently 
     disabled' shall have the meaning given such term under 
     regulations which the Office shall prescribe based on 
     subparagraphs (A) and (C) of section 1614(a)(3) of the Social 
     Security Act, except that, in applying subparagraph (A) of 
     such section for purposes of this subparagraph, `which can be 
     expected to last permanently' shall be substituted for `which 
     has lasted or can be expected to last for a continuous period 
     of not less than twelve months'.''.
       (b) Continued Withholdings.--Subsection (d) of such section 
     8714b is amended by adding at the end the following:
       ``(3)(A) To be eligible for unreduced additional optional 
     insurance under subsection (c)(3), the insured individual 
     shall be required to elect, at such time and in such manner 
     as the Office by regulation requires (including procedures 
     for demonstrating compliance with the requirements of 
     subsection (c)(3)), to have the full cost thereof continue to 
     be withheld from the former employee's annuity or 
     compensation, as the case may be, beginning as of when such 
     withholdings would otherwise cease under the second sentence 
     of paragraph (1).
       ``(B) An election made by an insured individual under 
     subparagraph (A) (and withholdings pursuant thereto) shall 
     terminate in the event that--
       ``(i) the insured individual--
       ``(I) revokes such election; or
       ``(II) makes any redesignation or other change in the 
     designation under section 8705 (as in effect at the time of 
     retirement); or
       ``(ii) the Office finds, upon the application of the 
     insured individual or on its own initiative, that any of the 
     requirements or conditions for unreduced additional optional 
     insurance under subsection (c)(3) are, at any time, no longer 
     met.''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect on the date of the enactment of this Act.
       (2) Election for certain individuals not otherwise 
     eligible.--The Office of Personnel Management shall prescribe 
     regulations under which an election under section 
     8714b(d)(3)(A) of title 5, United States Code (as amended by 
     this section) may be made, within 1 year after the date of 
     the enactment of this Act, by any individual not otherwise 
     eligible to make such an election, but only if such 
     individual--
       (A) separated from service on or after the first day of the 
     50-month period ending on the date of enactment of this Act; 
     and
       (B) would have been so eligible had the amendments made by 
     this section (and implementing regulations) been in effect as 
     of the individual's separation date (or, if earlier, the last 
     day for making such an election based on that separation).
       (3) Withholdings.--
       (A) Prospective effect.--If an individual makes an election 
     under paragraph (2), withholdings under section 
     8714b(d)(3)(A) of such title 5 shall thereafter be made from 
     such individual's annuity or compensation, as the case may 
     be.
       (B) Earlier amounts.--If, pursuant to such election, 
     benefits are in fact paid in accordance with section 
     8714b(c)(3) of such title 5 upon the death of the insured 
     individual, an appropriate reduction (computed under 
     regulations prescribed by the Office) shall be made in such 
     benefits to reflect the withholdings that--
       (i) were not made (before the commencement of withholdings 
     under subparagraph (A)) by reason of the cessation of 
     withholdings under the second sentence of section 8714b(d)(1) 
     of such title; but
       (ii) would have been made had the amendments made by this 
     section (and implementing regulations) been in effect as of 
     the time described in paragraph (2)(B).
       (4) Notice.--The Office shall, by publication in the 
     Federal Register and such other methods as it considers 
     appropriate, notify current and former Federal employees as 
     to the enactment of this section and any benefits for which 
     they might be eligible pursuant thereto. Included as part of 
     such notification shall be a brief description of the 
     procedures for making an election under paragraph (2) and any 
     other information that the Office considers appropriate.

     SEC. 403. TEMPORARY CONTINUATION OF FEDERAL EMPLOYEES' LIFE 
                   INSURANCE.

       Section 8706 of title 5, United States Code, is amended by 
     adding at the end the following:
       ``(g)(1) Notwithstanding subsections (a) and (b) of this 
     section, an employee whose coverage under this chapter would 
     otherwise terminate due to a separation described in 
     paragraph (3) shall be eligible to continue basic insurance 
     coverage described in section 8704 in accordance with this 
     subsection and regulations the Office may prescribe, if the 
     employee arranges to pay currently into the Employees Life 
     Insurance Fund, through the former employing agency or, if an 
     annuitant, through the responsible retirement system, an 
     amount equal to the sum of--
       ``(A) both employee and agency contributions which would be 
     payable if separation had not occurred; plus
       ``(B) an amount, determined under regulations prescribed by 
     the Office, to cover necessary administrative expenses, but 
     not to exceed 2 percent of the total amount under 
     subparagraph (A).
       ``(2) Continued coverage under this subsection may not 
     extend beyond the date which is 18 months after the effective 
     date of the separation which entitles a former employee to 
     coverage under this subsection. Termination of continued 
     coverage under this subsection shall be subject to provision 
     for temporary extension of life insurance coverage and for 
     conversion to an individual policy of life insurance as 
     provided by subsection (a). If an eligible employee does not

[[Page H11556]]

     make an election for purposes of this subsection, the 
     employee's insurance will terminate as provided by subsection 
     (a).
       ``(3)(A) This subsection shall apply to an employee who, on 
     or after the date of enactment of this subsection and before 
     the applicable date under subparagraph (B)--
       ``(i) is involuntarily separated from a position due to a 
     reduction in force, or separates voluntarily from a position 
     the employing agency determines is a `surplus position' as 
     defined by section 8905(d)(4)(C); and
       ``(ii) is insured for basic insurance under this chapter on 
     the date of separation.
       ``(B) The applicable date under this subparagraph is 
     October 1, 1999, except that, for purposes of any involuntary 
     separation referred to in subparagraph (A) with respect to 
     which appropriate specific notice is afforded to the affected 
     employee before October 1, 1999, the applicable date under 
     this subparagraph is February 1, 2000.''.
                  TITLE V--REORGANIZATION FLEXIBILITY

     SEC. 501. VOLUNTARY REDUCTIONS IN FORCE.

       Section 3502(f) of title 5, United States Code, is amended 
     to read as follows:
       ``(f)(1) The head of an Executive agency or military 
     department may--
       ``(A) separate from service any employee who volunteers to 
     be separated under this subparagraph even though the employee 
     is not otherwise subject to separation due to a reduction in 
     force; and
       ``(B) for each employee voluntarily separated under 
     subparagraph (A), retain an employee in a similar position 
     who would otherwise be separated due to a reduction in force.
       ``(2) The separation of an employee under paragraph (1)(A) 
     shall be treated as an involuntary separation due to a 
     reduction in force, except for purposes of priority placement 
     programs and advance notice.
       ``(3) An employee with critical knowledge and skills (as 
     defined by the head of the Executive agency or military 
     department concerned) may not participate in a voluntary 
     separation under paragraph (1)(A) if the agency or department 
     head concerned determines that such participation would 
     impair the performance of the mission of the agency or 
     department (as applicable).
       ``(4) The regulations prescribed under this section shall 
     incorporate the authority provided in this subsection.
       ``(5) No authority under paragraph (1) may be exercised 
     after September 30, 2001.''.

     SEC. 502. NONREIMBURSABLE DETAILS TO FEDERAL AGENCIES BEFORE 
                   A REDUCTION IN FORCE.

       (a) In General.--Section 3341 of title 5, United States 
     Code, is amended to read as follows:

     ``Sec. 3341. Details; within Executive agencies and military 
       departments; employees affected by reduction in force

       ``(a) The head of an Executive agency or military 
     department may detail employees, except those required by law 
     to be engaged exclusively in some specific work, among the 
     bureaus and offices of the agency or department.
       ``(b) The head of an Executive agency or military 
     department may detail to duties in the same or another agency 
     or department, on a nonreimbursable basis, an employee who 
     has been identified by the employing agency as likely to be 
     separated from the Federal service by reduction in force or 
     who has received a specific notice of separation by reduction 
     in force.
       ``(c)(1) Details under subsection (a)--
       ``(A) may not be for periods exceeding 120 days; and
       ``(B) may be renewed (1 or more times) by written order of 
     the head of the agency or department, in each particular 
     case, for periods not exceeding 120 days each.
       ``(2) Details under subsection (b)--
       ``(A) may not be for periods exceeding 90 days; and
       ``(B) may not be renewed.
       ``(d) The 120-day limitation under subsection (c)(1) for 
     details and renewals of details does not apply to the 
     Department of Defense in the case of a detail--
       ``(1) made in connection with the closure or realignment of 
     a military installation pursuant to a base closure law or an 
     organizational restructuring of the Department as part of a 
     reduction in the size of the armed forces or the civilian 
     workforce of the Department; and
       ``(2) in which the position to which the employee is 
     detailed is eliminated on or before the date of the closure, 
     realignment, or restructuring.
       ``(e) For purposes of this section--
       ``(1) the term `base closure law' means--
       ``(A) section 2687 of title 10;
       ``(B) title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act; and
       ``(C) the Defense Base Closure and Realignment Act of 1990; 
     and
       ``(2) the term `military installation'--
       ``(A) in the case of an installation covered by section 
     2687 of title 10, has the meaning given such term in 
     subsection (e)(1) of such section;
       ``(B) in the case of an installation covered by the Act 
     referred to in subparagraph (B) of paragraph (1), has the 
     meaning given such term in section 209(6) of such Act; and
       ``(C) in the case of an installation covered by the Act 
     referred to in subparagraph (C) of paragraph (1), has the 
     meaning given such term in section 2910(4) of such Act.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     33 of title 5, United States Code, is amended by striking the 
     item relating to section 3341 and inserting the following:

``3341. Details; within Executive agencies and military departments; 
              employees affected by reduction in force.''.

       (c) Effective Date.--The amendments made by this section 
     shall take effect 30 days after the date of the enactment of 
     this Act.
                   TITLE VI--SOFT-LANDING PROVISIONS

     SEC. 601. CONTINUED ELIGIBILITY FOR LIFE INSURANCE.

       (a) In General.--Section 8706 of title 5, United States 
     Code, is amended by redesignating subsections (d) through (f) 
     as subsections (e) through (g), respectively, and by 
     inserting after subsection (c) the following:
       ``(d)(1) Notwithstanding subsection (b), any employee who, 
     on or after the date of the enactment of this subsection and 
     before the applicable date under paragraph (2)--
       ``(A) is involuntarily separated from a position, or 
     voluntarily separated from a surplus position, in or under an 
     Executive agency due to a reduction in force,
       ``(B) based on the separation referred to in subparagraph 
     (A), retires on an immediate annuity under subchapter III of 
     chapter 83 or subchapter II of chapter 84, but does not 
     satisfy the requirements of subsection (b)(1), and
       ``(C) is insured on the date of separation,
     may, within 60 days after the date of separation, elect to 
     continue such employee's insurance and arrange to pay 
     currently into the Employees' Life Insurance Fund both the 
     employee and agency contributions therefor, in accordance 
     with procedures prescribed by the Office. If the employee 
     does not so elect, such employee's insurance will terminate 
     as provided by subsection (a).
       ``(2) The applicable date under this paragraph is October 
     1, 1999, except that, for purposes of any involuntary 
     separation referred to in paragraph (1)(A) with respect to 
     which appropriate specific notice is afforded to the affected 
     employee before October 1, 1999, the applicable date under 
     this paragraph is February 1, 2000.
       ``(3) For purposes of this subsection, the term `surplus 
     position', with respect to an agency, means any position 
     determined in accordance with regulations under section 
     8905a(d)(4)(C) for such agency.''.
       (b) Conforming Amendment.--Section 8706(g) of title 5, 
     United States Code, as so redesignated by subsection (a), is 
     amended by striking ``subsection (e)'' and inserting 
     ``subsection (f)''.

     SEC. 602. CONTINUED ELIGIBILITY FOR HEALTH INSURANCE.

       (a) Continued Eligibility After Retirement.--Section 8905 
     of title 5, United States Code, is amended--
       (1) in the first sentence of subsection (b) by striking 
     ``An'' and inserting ``Subject to subsection (g), an''; and
       (2) by adding at the end the following:
       ``(g)(1) The Office shall waive the requirements for 
     continued enrollment under subsection (b) in the case of any 
     individual who, on or after the date of the enactment of this 
     subsection and before the applicable date under paragraph 
     (2)--
       ``(A) is involuntarily separated from a position, or 
     voluntarily separated from a surplus position, in or under an 
     Executive agency due to a reduction in force,
       ``(B) based on the separation referred to in subparagraph 
     (A), retires on an immediate annuity under subchapter III of 
     chapter 83 or subchapter II of chapter 84, and
       ``(C) is enrolled in a health benefits plan under this 
     chapter as an employee immediately before retirement.
       ``(2) The applicable date under this paragraph is October 
     1, 1999, except that, for purposes of any involuntary 
     separation referred to in paragraph (1)(A) with respect to 
     which appropriate specific notice is afforded to the affected 
     employee before October 1, 1999, the applicable date under 
     this paragraph is February 1, 2000.
       ``(3) For purposes of this subsection, the term `surplus 
     position', with respect to an agency, means any position 
     determined in accordance with regulations under section 
     8905a(d)(4)(C) for such agency.''.
       (b) Temporary Continued Eligibility After Being 
     Involuntarily Separated.--Section 8905a(d)(4) of title 5, 
     United States Code, is amended--
       (1) in subparagraph (A) by striking ``the Department of 
     Defense'' and inserting ``an Executive agency''; and
       (2) by amending subparagraph (C) to read as follows:
       ``(C) For purposes of this paragraph, the term `surplus 
     position' means a position that, as determined under 
     regulations prescribed by the head of the agency involved, is 
     identified during planning for a reduction in force as being 
     no longer required and is designated for elimination during 
     the reduction in force.''.

     SEC. 603. PRIORITY PLACEMENT PROGRAMS FOR FEDERAL EMPLOYEES 
                   AFFECTED BY A REDUCTION IN FORCE.

       (a) In General.--Subchapter I of chapter 33 of title 5, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 3330a. Priority placement programs for employees 
       affected by a reduction in force

       ``(a) Not later than 3 months after the date of the 
     enactment of this section, each Executive agency shall 
     establish an agencywide priority placement program, to 
     facilitate employment placement for employees who--
       ``(1) are scheduled to be separated from service due to a 
     reduction in force under--
       ``(A) regulations prescribed under section 3502; or

[[Page H11557]]

       ``(B) procedures established under section 3595;
       ``(2) are separated from service due to such a reduction in 
     force; or
       ``(3) have received a rating of at least fully successful 
     (or the equivalent) as the last performance rating of record 
     used for retention purposes (except for employees in 
     positions excluded from a performance appraisal system by 
     law, regulation, or administrative action taken by the Office 
     of Personnel Management).
       ``(b)(1) Each agencywide priority placement program under 
     this section shall include provisions under which a vacant 
     position shall not (except as provided in this subsection) be 
     filled by the appointment or transfer of any individual from 
     outside of that agency (other than an individual described in 
     paragraph (2)) if--
       ``(A) there is then available any individual described in 
     paragraph (2) who is qualified for the position; and
       ``(B) the position--
       ``(i) is at the same grade or pay level (or the equivalent) 
     or not more than 3 grades (or grade intervals) below that of 
     the position last held by such individual before placement in 
     the new position;
       ``(ii) is within the same commuting area as the 
     individual's last-held position (as referred to in clause 
     (i)) or residence; and
       ``(iii) has the same type of work schedule (whether full-
     time, part-time, or intermittent) as the position last held 
     by the individual.
       ``(2) For purposes of an agencywide priority placement 
     program, an individual shall be considered to be described in 
     this paragraph if such individual is--
       ``(A) an employee of such agency who is scheduled to be 
     separated, as described in subsection (a)(1); or
       ``(B) an individual who became a former employee of such 
     agency as a result of a separation, as described in 
     subsection (a)(2).
       ``(c)(1) If after a reduction in force the agency has no 
     positions of any type within the local commuting areas 
     specified in this section, the individual may designate a 
     different local commuting area where the agency has 
     continuing positions in order to exercise reemployment rights 
     under this section. An agency may determine that such 
     designations are not in the interest of the Government for 
     the purpose of paying relocation expenses under subchapter II 
     of chapter 57.
       ``(2) At its option, an agency may administratively extend 
     reemployment rights under this section to include other local 
     commuting areas.
       ``(d)(1) In selecting employees for positions under this 
     section, the agency shall place qualified present and former 
     employees in retention order by veterans' preference subgroup 
     and tenure group.
       ``(2) An agency may not pass over a qualified present or 
     former employee to select an individual in a lower veterans' 
     preference subgroup within the tenure group, or in a lower 
     tenure group.
       ``(3) Within a subgroup, the agency may select a qualified 
     present or former employee without regard to the individual's 
     total creditable service.
       ``(e) An individual is eligible for reemployment priority 
     under this section for 2 years from the effective date of the 
     reduction in force from which the individual will be, or has 
     been, separated under section 3502.
       ``(f) An individual qualified present or former employee 
     loses eligibility for reemployment priority under this 
     section when the individual--
       ``(1) requests removal in writing;
       ``(2) accepts or declines a bona fide offer under this 
     section or fails to accept such an offer within the period of 
     time allowed for such acceptance, or
       ``(3) separates from the agency before being separated 
     under section 3502.

     A present or former employee who declines a position with a 
     representative rate (or equivalent) that is less than the 
     rate of the position from which the individual was separated 
     under section 3502 retains eligibility for positions with a 
     higher representative rate up to the rate of the individual's 
     last position.
       ``(g) Whenever more than one individual is qualified for a 
     position under this section, the agency shall select the most 
     highly qualified individual, subject to subsection (d).
       ``(h) The Office of Personnel Management shall issue 
     regulations to implement this section.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     33 of title 5, United States Code, is amended by adding after 
     the item relating to the section 3330 the following:

``3330a.  Priority placement programs for employees affected by a 
              reduction in force.''.

     SEC. 604. JOB PLACEMENT AND COUNSELING SERVICES.

       (a) Authority for Services.--The head of each Executive 
     agency may establish a program to provide job placement and 
     counseling services to current and former employees.
       (b) Types of Services Authorized.--A program established 
     under this section may include such services as--
       (1) career and personal counseling;
       (2) training in job search skills; and
       (3) job placement assistance, including assistance provided 
     through cooperative arrangements with State and local 
     employment service offices.
       (c) Eligibility for Services.--Services authorized by this 
     section may be provided to--
       (1) current employees of the agency or, with the approval 
     of such other agency, any other agency; and
       (2) employees of the agency or, with the approval of such 
     other agency, any other agency who have been separated for 
     less than 1 year, if the separation was not a removal for 
     cause on charges of misconduct or delinquency.
       (d) Reimbursement for Costs.--The costs of services 
     provided to current or former employees of another agency 
     shall be reimbursed by that agency.

     SEC. 605. EDUCATION AND RETRAINING INCENTIVES.

       (a) Non-Federal Employment Incentive Payments.--
       (1) Definitions.--For purposes of this subsection--
       (A) the term ``eligible employee'' means an employee who is 
     involuntarily separated from a position, or voluntarily 
     separated from a surplus position, in or under an Executive 
     agency due to a reduction in force, except that such term 
     does not include an employee who, at the time of 
     separation, meets the age and service requirements for an 
     immediate annuity under subchapter III of chapter 83 or 
     chapter 84 of title 5, United States Code, other than 
     under section 8336(d) or 8414(b) of such title;
       (B) the term ``non-Federal employer'' means an employer 
     other than the Government of the United States or any agency 
     or other instrumentality thereof;
       (C) the term ``Executive agency'' has the meaning given 
     such term by section 105 of title 5, United States Code; and
       (D) the term ``surplus position'' has the meaning given 
     such term by section 8905(d)(4)(C) of title 5, United States 
     Code.
       (2) Authority.--The head of an Executive agency may pay 
     retraining and relocation incentive payments, in accordance 
     with this subsection, in order to facilitate the reemployment 
     of eligible employees who are separated from such agency.
       (3) Retraining incentive payment.--
       (A) Agreement.--The head of an Executive agency may enter 
     into an agreement with a non-Federal employer under which the 
     non-Federal employer agrees--
       (i) to employ an individual referred to in paragraph (2) 
     for at least 12 months for a salary which is mutually 
     agreeable to the employer and such individual; and
       (ii) to certify to the agency head any costs incurred by 
     the employer for any necessary training provided to such 
     individual in connection with the employment by such 
     employer.
       (B) Payment of retraining incentive payment.--The agency 
     head shall pay a retraining incentive payment to the non-
     Federal employer upon the employee's completion of 12 months 
     of continuous employment by that employer. The agency head 
     shall prescribe the amount of the incentive payment.
       (C) Proration rule.--The agency head shall pay a prorated 
     amount of the full retraining incentive payment to the non-
     Federal employer for an employee who does not remain employed 
     by the non-Federal employer for at least 12 months, but only 
     if the employee remains so employed for at least 6 months.
       (D) Limitation.--In no event may the amount of the 
     retraining incentive payment paid for the training of any 
     individual exceed the amount certified for such individual 
     under subparagraph (A), subject to subsection (c).
       (4) Relocation incentive payment.--The head of an agency 
     may pay a relocation incentive payment to an eligible 
     employee if it is necessary for the employee to relocate in 
     order to commence employment with a non-Federal employer. 
     Subject to subsection (e), the amount of the incentive 
     payment shall not exceed the amount that would be payable for 
     travel, transportation, and subsistence expenses under 
     subchapter II of chapter 57 of title 5, United States Code, 
     including any reimbursement authorized under section 5724b of 
     such title, to a Federal employee who transfers between the 
     same locations as the individual to whom the incentive 
     payment is payable.
       (5) Duration.--No incentive payment may be paid for 
     training or relocation commencing after June 30, 2000.
       (6) Source.--An incentive payment under this subsection 
     shall be payable from appropriations or other funds available 
     to the agency for purposes of training (within the meaning of 
     section 4101(4) of title 5, United States Code).
       (b) Educational Assistance.--
       (1) In general.--Under regulations prescribed by the Office 
     of Personnel Management, all or any part of the amount 
     described in subsection (c) may be afforded to any employee 
     described in paragraph (2) in the form of educational 
     assistance.
       (2) Eligible employee.--An individual shall not be eligible 
     for educational assistance under this subsection unless such 
     individual--
       (A) is an eligible employee, within the meaning of 
     subsection (a); and
       (B) has completed at least 3 years of current continuous 
     service in any Executive agency or agencies.
       (c) Aggregate Limitation.--No incentive payment or other 
     amount may be paid under this section to or on behalf of any 
     individual to the extent that such amount would cause the 
     aggregate amount otherwise paid or payable under this 
     section, to or on behalf of such individual, to exceed 
     $10,000.

[[Page H11558]]

                        TITLE VII--MISCELLANEOUS

     SEC. 701. REIMBURSEMENTS RELATING TO PROFESSIONAL LIABILITY 
                   INSURANCE.

       (a) Authority.--Notwithstanding any other provision of law, 
     any amounts appropriated, for fiscal year 1997 or any fiscal 
     year thereafter, for salaries and expenses of Government 
     employees may be used to reimburse any qualified employee for 
     not to exceed one-half the costs incurred by such employee 
     for professional liability insurance. A payment under this 
     section shall be contingent upon the submission of such 
     information or documentation as the employing agency may 
     require.
       (b) Qualified Employee.--For purposes of this section, the 
     term ``qualified employee'' means--
       (1) an agency employee whose position is that of a law 
     enforcement officer;
       (2) an agency employee whose position is that of a 
     supervisor or management official; or
       (3) such other employee as the head of the agency considers 
     appropriate
       (c) Definitions.--For purposes of this section--
       (1) the term ``agency'' means an Executive agency, as 
     defined by section 105 of title 5, United States Code;
       (2) the term ``law enforcement officer'' means an employee, 
     the duties of whose position are primarily the investigation, 
     apprehension, prosecution, or detention of individuals 
     suspected or convicted of offenses against the criminal laws 
     of the United States, including any law enforcement officer 
     under section 8331(20) or 8401(17) of such title 5;
       (3) the terms ``supervisor'' and ``management official'' 
     have the respective meanings given them by section 7103(a) of 
     such title 5; and
       (4) the term ``professional liability insurance'' means 
     insurance which provides coverage for--
       (A) legal liability for damages due to injuries to other 
     persons, damage to their property, or other damage or loss to 
     such other persons (including the expenses of litigation and 
     settlement) resulting from or arising out of any tortious 
     act, error, or omission of the covered individual (whether 
     common law, statutory, or constitutional) while in the 
     performance of such individual's official duties as a 
     qualified employee; and
       (B) the cost of legal representation for the covered 
     individual in connection with any administrative or judicial 
     proceeding (including any investigation or disciplinary 
     proceeding) relating to any act, error, or omission of the 
     covered individual while in the performance of such 
     individual's official duties as a qualified employee, and 
     other legal costs and fees relating to any such 
     administrative or judicial proceeding.

     SEC. 702. EMPLOYMENT RIGHTS FOLLOWING CONVERSION TO CONTRACT.

       (a) In General.--An employee whose position is abolished 
     because an activity performed by an Executive agency (within 
     the meaning of section 105 of title 5, United States Code, is 
     converted to contract shall receive from the contractor an 
     offer in good faith of a right of first refusal of employment 
     under the contract for a position for which the employee is 
     deemed qualified based upon previous knowledge, skills, 
     abilities, and experience. The contractor shall not offer 
     employment under the contract to any person prior to having 
     complied fully with this obligation, except as provided in 
     subsection (b), or unless no employee whose position is 
     abolished because such activity has been converted to 
     contract can demonstrate appropriate qualifications for the 
     position.
       (b) Exception.--Notwithstanding the contractor's obligation 
     under subsection (a), the contractor is not required to offer 
     a right of first refusal to any employee who, in the 12 
     months preceding conversion to contract, has been the subject 
     of an adverse personnel action related to misconduct or has 
     received a less than fully successful performance rating.
       (c) Limitation.--No employee shall have a right to more 
     than 1 offer under this section based on any particular 
     separation due to the conversion of an activity to contract.
       (d) Regulations.--Regulations to carry out this section may 
     be prescribed by the President.

     SEC. 703. DEBARMENT OF HEALTH CARE PROVIDERS FOUND TO HAVE 
                   ENGAGED IN FRAUDULENT PRACTICES.

       (a) In General.--Section 8902a of title 5, United States 
     Code, is amended--
       (1) in subsection (a)(2)(A) by striking ``subsection (b) or 
     (c)'' and inserting ``subsection (b), (c), or (d)'';
       (2) in subsection (b)--
       (A) by striking ``may'' and inserting ``shall'' in the 
     matter before paragraph (1); and
       (B) by amending paragraph (5) to read as follows:
       ``(5) Any provider that is currently suspended or excluded 
     from participation under any program of the Federal 
     Government involving procurement or nonprocurement 
     activities.'';
       (3) by redesignating subsections (c) through (i) as 
     subsections (d) through (j), respectively, and by inserting 
     after subsection (b) the following:
       ``(c) The Office may bar the following providers of health 
     care services from participating in the program under this 
     chapter:
       ``(1) Any provider--
       ``(A) whose license to provide health care services or 
     supplies has been revoked, suspended, restricted, or not 
     renewed, by a State licensing authority for reasons relating 
     to the provider's professional competence, professional 
     performance, or financial integrity; or
       ``(B) that surrendered such a license while a formal 
     disciplinary proceeding was pending before such an authority, 
     if the proceeding concerned the provider's professional 
     competence, professional performance, or financial integrity.
       ``(2) Any provider that is an entity directly or indirectly 
     owned, or with a 5 percent or more controlling interest, by 
     an individual who is convicted of any offense described in 
     subsection (b), against whom a civil monetary penalty has 
     been assessed under subsection (d), or who has been excluded 
     from participation under this chapter.
       ``(3) Any provider that the Office determines, in 
     connection with claims presented under this chapter, has 
     charged for health care services or supplies in an amount 
     substantially in excess of such provider's customary charges 
     for such services or supplies (unless the Office finds there 
     is good cause for such charge), or charged for health care 
     services or supplies which are substantially in excess of the 
     needs of the covered individual or which are of a quality 
     that fails to meet professionally recognized standards for 
     such services or supplies.
       ``(4) Any provider that the Office determines has committed 
     acts described in subsection (d).'';
       (4) in subsection (d), as so redesignated by paragraph (3), 
     by amending paragraph (1) to read as follows:
       ``(1) in connection with claims presented under this 
     chapter, that a provider has charged for a health care 
     service or supply which the provider knows or should have 
     known involves--
       ``(A) an item or service not provided as claimed;
       ``(B) charges in violation of applicable charge limitations 
     under section 8904(b); or
       ``(C) an item or service furnished during a period in which 
     the provider was excluded from participation under this 
     chapter pursuant to a determination by the Office under this 
     section, other than as permitted under subsection 
     (g)(2)(B);'';
       (5) in subsection (f), as so redesignated by paragraph (3), 
     by inserting ``(where such debarment is not mandatory),'' 
     after ``under this section'' the first place it appears;
       (6) in subsection (g), as so redesignated by paragraph 
     (3)--
       (A) by striking ``(g)(1)'' and all that follows through the 
     end of paragraph (1) and inserting the following:
       ``(g)(1)(A) Except as provided in subparagraph (B), 
     debarment of a provider under subsection (b) or (c) shall be 
     effective at such time and upon such reasonable notice to 
     such provider, and to carriers and covered individuals, as 
     shall be specified in regulations prescribed by the Office. 
     Any such provider that is excluded from participation may 
     request a hearing in accordance with subsection (h)(1).
       ``(B) Unless the Office determines that the health or 
     safety of individuals receiving health care services warrants 
     an earlier effective date, the Office shall not make a 
     determination adverse to a provider under subsection (c)(4) 
     or (d) until such provider has been given reasonable notice 
     and an opportunity for the determination to be made after a 
     hearing as provided in accordance with subsection (h)(1).'';
       (B) in paragraph (3)--
       (i) by inserting ``of debarment'' after ``notice''; and
       (ii) by adding at the end the following: ``In the case of a 
     debarment under paragraphs (1) through (4) of subsection (b), 
     the minimum period of exclusion shall not be less than 3 
     years, except as provided in paragraph (4)(B)(ii).''; and
       (C) in paragraph (4)(B)(i)(I) by striking ``subsection (b) 
     or (c)'' and inserting ``subsection (b), (c), or (d)'';
       (7) in subsection (h)--
       (A) by striking ``(h)(1)'' and all that follows through the 
     end of paragraph (2) and inserting the following:
       ``(h)(1) Any provider of health care services or supplies 
     that is the subject of an adverse determination by the Office 
     under this section shall be entitled to reasonable notice and 
     an opportunity to request a hearing of record, and to 
     judicial review as provided in this subsection after the 
     Office renders a final decision. The Office shall grant a 
     request for a hearing upon a showing that due process rights 
     have not previously been afforded with respect to any finding 
     of fact which is relied upon as a cause for an adverse 
     determination under this section. Such hearing shall be 
     conducted without regard to subchapter II of chapter 5 and 
     chapter 7 of this title by a hearing officer who shall be 
     designated by the Director of the Office and who shall not 
     otherwise have been involved in the adverse determination 
     being appealed. A request for a hearing under this subsection 
     must be filed within such period and in accordance with such 
     procedures as the Office shall prescribe by regulation.
       ``(2) Any provider adversely affected by a final decision 
     under paragraph (1) made after a hearing to which such 
     provider was a party may seek review of such decision in the 
     United States District Court for the District of Columbia or 
     for the district in which the plaintiff resides or has his 
     principal place of business by filing a notice of appeal in 
     such court within 60 days from the date the decision is 
     issued and simultaneously sending

[[Page H11559]]

     copies of such notice by certified mail to the Director of 
     the Office and to the Attorney General. In answer to the 
     appeal, the Director of the Office shall promptly file in 
     such court a certified copy of the transcript of the record, 
     if the Office conducted a hearing, and other evidence upon 
     which the findings and decision complained of are based. The 
     court shall have power to enter, upon the pleadings and 
     evidence of record, a judgment affirming, modifying, or 
     setting aside, in whole or in part, the decision of the 
     Office, with or without remanding the cause for a rehearing. 
     The district court shall not set aside or remand the decision 
     of the Office unless there is not substantial evidence on the 
     record, taken as a whole, to support the findings by the 
     Office of a cause for action under this section or unless 
     action taken by the Office constitutes an abuse of 
     discretion.''; and
       (8) in subsection (i), as so redesignated by paragraph 
     (3)--
       (A) by striking ``subsection (c)'' and inserting 
     ``subsection (d)''; and
       (B) by adding at the end the following: ``The amount of a 
     penalty or assessment as finally determined by the Office, or 
     other amount the Office may agree to in compromise, may be 
     deducted from any sum then or later owing by the United 
     States to the party against whom the penalty or assessment 
     has been levied.''.
       (b) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), this 
     section shall take effect on the date of the enactment of 
     this Act.
       (2) Exceptions.--(A) Paragraphs (2) and (4) of section 
     8902a(c) of title 5, United States Code, as amended by 
     subsection (a), shall apply only to the extent that the 
     misconduct which is the basis for debarment thereunder occurs 
     after the date of the enactment of this Act.
       (B) Section 8902a(d)(1)(B) of title 5, United States Code, 
     as amended by subsection (a), shall apply only with respect 
     to charges which violate section 8904(b) of such title 5 for 
     items and services furnished after the date of the enactment 
     of this Act.
       (C) Section 8902a(g)(3) of title 5, United States Code, as 
     amended by subsection (a), shall apply only with respect to 
     debarments based on convictions occurring after the date of 
     the enactment of this Act.

     SEC. 704. EXTENSION OF CERTAIN PROCEDURAL AND APPEAL RIGHTS 
                   TO CERTAIN PERSONNEL OF THE FEDERAL BUREAU OF 
                   INVESTIGATION.

       (a) In General.--Section 7511(b)(8) of title 5, United 
     States Code, is amended by striking ``the Federal Bureau of 
     Investigation,''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to any personnel action taking 
     effect after the end of the 45-day period beginning on the 
     date of the enactment of this Act.

     SEC. 705. CONVERSION OF CERTAIN EXCEPTED SERVICE POSITIONS IN 
                   THE UNITED STATES FIRE ADMINISTRATION TO 
                   COMPETITIVE SERVICE POSITIONS.

       (a) In General.--No later than the date described under 
     subsection (d)(1), the Director of the Federal Emergency 
     Management Agency and the Director of the Office of Personnel 
     Management shall take such actions as necessary to convert 
     each excepted service position established before the date of 
     the enactment of this Act under section 7(c)(4) of the 
     Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 
     2206(c)(4)) to a competitive service position.
       (b) Effect on Employees.--Any employee employed on the date 
     of the enactment of this Act in an excepted service position 
     converted under subsection (a)--
       (1) shall remain employed in the competitive service 
     position so converted without a break in service;
       (2) by reason of such conversion, shall have no--
       (A) diminution of seniority;
       (B) reduction of cumulative years of service; and
       (C) requirement to serve an additional probationary period 
     applied; and
       (3) shall retain their standing and participation with 
     respect to chapter 83 or 84 of title 5, United States Code, 
     relating to Federal retirement.
       (c) Prospective Competitive Service Positions.--Section 
     7(c)(4) of the Federal Fire Prevention and Control Act of 
     1974 (15 U.S.C. 2206(c)(4)) is amended to read as follows:
       ``(4) appoint faculty members to competitive service 
     positions and with respect to temporary and intermittent 
     services, to make appointments of consultants to the same 
     extent as is authorized by section 3109 of title 5, United 
     States Code;''.
       (d) Effective Date.--(1) Except as provided under paragraph 
     (2), this section shall take effect on the first day of the 
     first pay period, applicable to the positions described under 
     subsection (a), beginning after the date of the enactment of 
     this Act.
       (2)(A) The Director of the Federal Emergency Management 
     Agency and the Director of the Office of Personnel Management 
     shall take such actions as directed under subsection (a) on 
     and after the date of the enactment of this Act.
       (B) Subsection (c) shall take effect on the date of the 
     enactment of this Act.

     SEC. 706. ELIGIBILITY FOR CERTAIN SURVIVOR ANNUITY BENEFITS.

       For the purpose of determining eligibility for survivor 
     annuity benefits for a former spouse under section 8341 of 
     title 5, United States Code, an application of any former 
     spouse shall be approved if--
       (1) the annuitant is deceased;
       (2) the former spouse was living as of January 1, 1992;
       (3) the former spouse has not received Social Security 
     benefits based on eligibility as the spouse of the annuitant;
       (4) such application was filed on or after January 1, 1989;
       (5) the annuitant rendered at least 25 years of creditable 
     service to the Federal Government;
       (6) at the time of the annuitant's retirement, the 
     annuitant and the former spouse had been married at least 25 
     years;
       (7) at the time of the annuitant's retirement, the 
     annuitant designated the former spouse to receive survivor 
     annuity benefits;
       (8) the annuitant and the former spouse were divorced prior 
     to September 14, 1978, and after the annuitant retired;
       (9) neither at the time of the divorce nor at any time 
     thereafter was a joint waiver of survivor annuity benefits 
     executed between the annuitant and the former spouse;
       (10) the divorce decree was silent as to survivor annuity 
     benefits or designated the former spouse to receive survivor 
     annuity benefits;
       (11) subsequent to the divorce of the annuitant and the 
     former spouse, the annuitant advised the Office of Personnel 
     Management of the divorce;
       (12) neither the annuitant nor the former spouse married 
     any other individual after their divorce from each other;
       (13) no direct notice outlining or defining the former 
     spouse's survivor annuity benefits election rights was 
     delivered to the former spouse by the Office of Personnel 
     Management; and
       (14) the former spouse has exhausted all judicial remedies 
     up to and including remedies available through the United 
     States Court of Appeals.


      AMENDMENT IN THE NATURE OF A SUBSTITUTE OFFERED BY MR. MICA

  Mr. MICA. Mr. Speaker, I offer an amendment in the nature of a 
substitute.
  The Clerk read as follows.

       Amendment in the nature of a substitute offered by Mr. 
     Mica: Strike out all after the enacting clause and insert in 
     lieu thereof:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Omnibus 
     Civil Service Reform Act of 1996''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:
Sec. 1. Short title; table of contents.

                    TITLE I--DEMONSTRATION PROJECTS

Sec. 101. Demonstration projects.

              TITLE II--PERFORMANCE MANAGEMENT ENHANCEMENT

Sec. 201. No appeal of denial of periodic step-increases.
Sec. 202. Performance appraisals.
Sec. 203. Amendments to incentive awards authority.
Sec. 204. Due process rights of managers under negotiated grievance 
              procedures.
Sec. 205. Collection and reporting of training information.

    TITLE III--ENHANCEMENT OF THRIFT SAVINGS PLAN AND CERTAIN OTHER 
                                BENEFITS

Sec. 301. Loans under the Thrift Savings Plan for furloughed employees.
Sec. 302. Domestic relations orders.
Sec. 303. Unreduced additional optional life insurance.

                  TITLE IV--REORGANIZATION FLEXIBILITY

Sec. 401. Voluntary reductions in force.
Sec. 402. Nonreimbursable details to Federal agencies before a 
              reduction in force.

                    TITLE V--SOFT-LANDING PROVISIONS

Sec. 501. Temporary continuation of Federal employees' life insurance.
Sec. 502. Continued eligibility for health insurance.
Sec. 503. Job placement and counseling services.
Sec. 504. Education and retraining incentives.

                        TITLE VI--MISCELLANEOUS

Sec. 601. Reimbursements relating to professional liability insurance.
Sec. 602. Employment rights following conversion to contract.
Sec. 603. Debarment of health care providers found to have engaged in 
              fraudulent practices.
Sec. 604. Consistent coverage for individuals enrolled in a health plan 
              administered by the Federal banking agencies.
Sec. 605. Amendment to Public Law 104-134.
Sec. 606. Miscellaneous amendments relating to the health benefits 
              program for Federal employees.
Sec. 607. Pay for certain positions formerly classified at GS-18.
Sec. 608. Repeal of section 1307 of title 5 of the United States Code.
Sec. 609. Extension of certain procedural and appeal rights to certain 
              personnel of the Federal Bureau of Investigation.
                    TITLE I--DEMONSTRATION PROJECTS

     SEC. 101. DEMONSTRATION PROJECTS.

       (a) Definitions.--Paragraph (1) of section 4701(a) of title 
     5, United States Code, is amended by striking subparagraph 
     (A) and by redesignating subparagraphs (B) and (C) as 
     subparagraphs (A) and (B), respectively.

[[Page H11560]]

       (b) Pre-Implementation Procedures.--Subsection (b) of 
     section 4703 of title 5, United States Code, is amended to 
     read as follows:
       ``(b) Before an agency or the Office may conduct or enter 
     into any agreement or contract to conduct a demonstration 
     project, the Office--
       ``(1) shall develop or approve a plan for such project 
     which identifies--
       ``(A) the purposes of the project;
       ``(B) the methodology;
       ``(C) the duration; and
       ``(D) the methodology and criteria for evaluation;
       ``(2) shall publish the plan in the Federal Register;
       ``(3) may solicit comments from the public and interested 
     parties in such manner as the Office considers appropriate;
       ``(4) shall obtain approval from each agency involved of 
     the final version of the plan; and
       ``(5) shall provide notification of the proposed project, 
     at least 30 days in advance of the date any project proposed 
     under this section is to take effect--
       ``(A) to employees who are likely to be affected by the 
     project; and
       ``(B) to each House of the Congress.''.
       (c) Nonwaivable Provisions.--Section 4703(c) of title 5, 
     United States Code, is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) any provision of subchapter V of chapter 63 or 
     subpart G of part III of this title;''; and
       (2) by striking paragraph (3) and inserting the following:
       ``(3) any provision of chapter 15 or subchapter II or III 
     of chapter 73 of this title;''.
       (d) Limitations.--Subsection (d) of section 4703 of title 
     5, United States Code, is amended to read as follows:
       ``(d)(1) Each demonstration project shall terminate before 
     the end of the 5-year period beginning on the date on which 
     the project takes effect, except that the project may 
     continue for a maximum of 2 years beyond the date to the 
     extent necessary to validate the results of the project.
       ``(2)(A) Not more than 15 active demonstration projects may 
     be in effect at any time, and of the projects in effect at 
     any time, not more than 5 may involve 5,000 or more 
     individuals each.
       ``(B) Individuals in a control group necessary to validate 
     the results of a project shall not, for purposes of any 
     determination under subparagraph (A), be considered to be 
     involved in such project.''.
       (e) Evaluations.--Subsection (h) of section 4703 of title 
     5, United States Code, is amended by adding at the end the 
     following: ``The Office may, with respect to a demonstration 
     project conducted by another agency, require that the 
     preceding sentence be carried out by such other agency.''.
       (f) Provisions for Termination of Project or Making It 
     Permanent.--Section 4703 of title 5, United States Code, is 
     amended--
       (1) in subsection (i) by inserting ``by the Office'' after 
     ``undertaken''; and
       (2) by adding at the end the following:
       ``(j)(1) If the Office determines that termination of a 
     demonstration project (whether under subsection (e) or 
     otherwise) would result in the inequitable treatment of 
     employees who participated in the project, the Office shall 
     take such corrective action as is within its authority. If 
     the Office determines that legislation is necessary to 
     correct an inequity, it shall submit an appropriate 
     legislative proposal to both Houses of Congress.
       ``(2) If the Office determines that a demonstration project 
     should be made permanent, it shall submit an appropriate 
     legislative proposal to both Houses of Congress.''.
              TITLE II--PERFORMANCE MANAGEMENT ENHANCEMENT

     SEC. 201. NO APPEAL OF DENIAL OF PERIODIC STEP-INCREASES.

       (a) In General.--Section 5335(c) of title 5, United States 
     Code, is amended--
       (1) by striking the second sentence;
       (2) in the third sentence by striking ``or appeal''; and
       (3) in the last sentence by striking ``and the entitlement 
     of the employee to appeal to the Board do not apply'' and 
     inserting ``does not apply''.
       (b) Performance Ratings.--Section 5335 of title 5, United 
     States Code, as amended by subsection (a), is further 
     amended--
       (1) in subsection (a)(B) by striking ``work of the employee 
     is of an acceptable level of competence'' and inserting 
     ``performance of the employee is at least fully successful'';
       (2) in subsection (c)--
       (A) in the first sentence by striking ``work of an employee 
     is not of an acceptable level of competence,'' and inserting 
     ``performance of an employee is not at least fully 
     successful,''; and
       (B) in the last sentence by striking ``acceptable level of 
     competence'' and inserting ``fully successful work 
     performance''; and
       (3) by adding at the end the following:
       ``(g) For purposes of this section, the term `fully 
     successful' denotes work performance that satisfies the 
     requirements of section 351.504(d)(3)(D) of title 5 of the 
     Code of Federal Regulations (as deemed to be amended by 
     section 3502(g)(2)(B)).''.

     SEC. 202. PERFORMANCE APPRAISALS.

       (a) In General.--Section 4302 of title 5, United States 
     Code, is amended--
       (1) in subsection (b) by striking paragraphs (5) and (6) 
     and inserting the following:
       ``(5) assisting employees in improving unacceptable 
     performance, except in circumstances described in subsection 
     (c); and
       ``(6) reassigning, reducing in grade, removing, or taking 
     other appropriate action against employees whose performance 
     is unacceptable.''; and
       (2) by adding at the end the following:
       ``(c) Upon notification of unacceptable performance, an 
     employee shall be afforded an opportunity to demonstrate 
     acceptable performance before a reduction in grade or removal 
     may be proposed under section 4303 based on such performance, 
     except that an employee so afforded such an opportunity shall 
     not be afforded any further opportunity to demonstrate 
     acceptable performance if the employee's performance again is 
     determined to be at an unacceptable level.''.
       (b) Effective Date.--
       (1) In general.--Subject to paragraph (2), this section and 
     the amendments made by this section shall take effect 180 
     days after the date of the enactment of this Act.
       (2) Exception.--The amendments made by this section shall 
     not apply in the case of any proposed action as to which the 
     employee receives advance written notice, in accordance with 
     section 4303(b)(1)(A) of title 5, United States Code, before 
     the effective date of this section.

     SEC. 203. AMENDMENTS TO INCENTIVE AWARDS AUTHORITY.

       Chapter 45 of title 5, United States Code, is amended--
       (1) by amending section 4501 to read as follows:

     ``Sec. 4501. Definitions

       ``For the purpose of this subchapter--
       ``(1) the term `agency' means--
       ``(A) an Executive agency;
       ``(B) the Library of Congress;
       ``(C) the Office of the Architect of the Capitol;
       ``(D) the Botanic Garden;
       ``(E) the Government Printing Office; and
       ``(F) the United States Sentencing Commission;

     but does not include--
       ``(i) the Tennessee Valley Authority; or
       ``(ii) the Central Bank for Cooperatives;
       ``(2) the term `employee' means an employee as defined by 
     section 2105; and
       ``(3) the term `Government' means the Government of the 
     United States.'';
       (2) by amending section 4503 to read as follows:

     ``Sec. 4503. Agency awards

       ``(a) The head of an agency may pay a cash award to, and 
     incur necessary expense for the honorary recognition of, an 
     employee who--
       ``(1) by his suggestion, invention, superior 
     accomplishment, or other personal effort, contributes to the 
     efficiency, economy, or other improvement of Government 
     operations or achieves a significant reduction in paperwork; 
     or
       ``(2) performs a special act or service in the public 
     interest in connection with or related to his official 
     employment.
       ``(b)(1) If the criteria under paragraph (1) or (2) of 
     subsection (a) are met on the basis of the suggestion, 
     invention, superior accomplishment, act, service, or other 
     meritorious effort of a group of employees collectively, and 
     if the circumstances so warrant (such as by reason of the 
     infeasibility of determining the relative role or 
     contribution assignable to each employee separately), 
     authority under subsection (a) may be exercised--
       ``(A) based on the collective efforts of the group; and
       ``(B) with respect to each member of such group.
       ``(2) The amount awarded to each member of a group under 
     this subsection--
       ``(A) shall be the same for all members of such group, 
     except that such amount may be prorated to reflect 
     differences in the period of time during which an individual 
     was a member of the group; and
       ``(B) may not exceed the maximum cash award allowable under 
     subsection (a) or (b) of section 4502, as applicable.''; and
       (3) in subsection (a)(1) of section 4505a by striking ``at 
     the fully successful level or higher'' and inserting ``higher 
     than the fully successful level''.

     SEC. 204. DUE PROCESS RIGHTS OF MANAGERS UNDER NEGOTIATED 
                   GRIEVANCE PROCEDURES.

       (a) In General.--Paragraph (2) of section 7121(b) of title 
     5, United States Code, is amended to read as follows:
       ``(2) The provisions of a negotiated grievance procedure 
     providing for binding arbitration in accordance with 
     paragraph (1)(C)(iii) shall, if or to the extent that an 
     alleged prohibited personnel practice is involved, allow the 
     arbitrator to order a stay of any personnel action in a 
     manner similar to the manner described in section 1221(c) 
     with respect to the Merit Systems Protection Board.''.
       (b) Effective Date.--The amendment made by subsection (a)--
       (1) shall take effect on the date of the enactment of this 
     Act; and
       (2) shall apply with respect to orders issued on or after 
     the date of the enactment of this Act, notwithstanding the 
     provisions of any collective bargaining agreement.

     SEC. 205. COLLECTION AND REPORTING OF TRAINING INFORMATION.

       (a) Training Within Government.--The Office of Personnel 
     Management shall collect information concerning training 
     programs, plans, and methods utilized by agencies of the 
     Government and submit a report to the Congress on this 
     activity on an annual basis.
       (b) Training Outside of Government.--The Office of 
     Personnel Management, to the

[[Page H11561]]

     extent it considers appropriate in the public interest, may 
     collect information concerning training programs, plans, and 
     methods utilized outside the Government. The Office, on 
     request, may make such information available to an agency and 
     to Congress.
    TITLE III--ENHANCEMENT OF THRIFT SAVINGS PLAN AND CERTAIN OTHER 
                                BENEFITS

     SEC. 301. LOANS UNDER THE THRIFT SAVINGS PLAN FOR FURLOUGHED 
                   EMPLOYEES.

       Section 8433(g) of title 5, United States Code, is amended 
     by adding at the end the following:
       ``(6) An employee who has been furloughed due to a lapse in 
     appropriations may not be denied a loan under this subsection 
     solely because such employee is not in a pay status.''.

     SEC. 302. DOMESTIC RELATIONS ORDERS.

       (a) In General.--Section 8705 of title 5, United States 
     Code, is amended--
       (1) in subsection (a) by striking ``(a) The'' and inserting 
     ``(a) Except as provided in subsection (e), the''; and
       (2) by adding at the end the following:
       ``(e)(1) Any amount which would otherwise be paid to a 
     person determined under the order of precedence named by 
     subsection (a) shall be paid (in whole or in part) by the 
     Office to another person if and to the extent expressly 
     provided for in the terms of any court decree of divorce, 
     annulment, or legal separation, or the terms of any court 
     order or court-approved property settlement agreement 
     incident to any court decree of divorce, annulment, or legal 
     separation.
       ``(2) For purposes of this subsection, a decree, order, or 
     agreement referred to in paragraph (1) shall not be effective 
     unless it is received, before the date of the covered 
     employee's death, by the employing agency or, if the employee 
     has separated from service, by the Office.
       ``(3) A designation under this subsection with respect to 
     any person may not be changed except--
       ``(A) with the written consent of such person, if received 
     as described in paragraph (2); or
       ``(B) by modification of the decree, order, or agreement, 
     as the case may be, if received as described in paragraph 
     (2).
       ``(4) The Office shall prescribe any regulations necessary 
     to carry out this subsection, including regulations for the 
     application of this subsection in the event that 2 or more 
     decrees, orders, or agreements, are received with respect to 
     the same amount.''.
       (b) Directed Assignment.--Section 8706(e) of title 5, 
     United States Code, is amended--
       (1) by striking ``(e)'' and inserting ``(e)(1)''; and
       (2) by adding at the end the following:
       ``(2) A court decree of divorce, annulment, or legal 
     separation, or the terms of a court-approved property 
     settlement agreement incidental to any court decree of 
     divorce, annulment, or legal separation, may direct that an 
     insured employee or former employee make an irrevocable 
     assignment of the employee's or former employee's incidents 
     of ownership in insurance under this chapter (if there is no 
     previous assignment) to the person specified in the court 
     order or court-approved property settlement agreement.''.

     SEC. 303. UNREDUCED ADDITIONAL OPTIONAL LIFE INSURANCE.

       (a) In General.--Section 8714b of title 5, United States 
     Code, is amended--
       (1) in subsection (c)--
       (A) by striking the last 2 sentences of paragraph (2); and
       (B) by adding at the end the following:
       ``(3) The amount of additional optional insurance continued 
     under paragraph (2) shall be continued, with or without 
     reduction, in accordance with the employee's written election 
     at the time eligibility to continue insurance during 
     retirement or receipt of compensation arises, as follows:
       ``(A) The employee may elect to have withholdings cease in 
     accordance with subsection (d), in which case--
       ``(i) the amount of additional optional insurance continued 
     under paragraph (2) shall be reduced each month by 2 percent 
     effective at the beginning of the second calendar month after 
     the date the employee becomes 65 years of age and is retired 
     or is in receipt of compensation; and
       ``(ii) the reduction under clause (i) shall continue for 50 
     months at which time the insurance shall stop.
       ``(B) The employee may, instead of the option under 
     subparagraph (A), elect to have the full cost of additional 
     optional insurance continue to be withheld from such 
     employee's annuity or compensation on and after the date such 
     withholdings would otherwise cease pursuant to an election 
     under subparagraph (A), in which case the amount of 
     additional optional insurance continued under paragraph (2) 
     shall not be reduced, subject to paragraph (4).
       ``(C) An employee who does not make any election under the 
     preceding provisions of this paragraph shall be treated as if 
     such employee had made an election under subparagraph (A).
       ``(4) If an employee makes an election under paragraph 
     (3)(B), that individual may subsequently cancel such 
     election, in which case additional optional insurance shall 
     be determined as if the individual had originally made an 
     election under paragraph (3)(A).''; and
       (2) in the second sentence of subsection (d)(1) by 
     inserting ``if insurance is continued as provided in 
     subparagraph (A) of paragraph (3),'' after ``except that,''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the 120th day after the date of the 
     enactment of this Act and shall apply to employees who become 
     eligible, on or after such 120th day, to continue additional 
     optional insurance during retirement or receipt of 
     compensation.
                  TITLE IV--REORGANIZATION FLEXIBILITY

     SEC. 401. VOLUNTARY REDUCTIONS IN FORCE.

       Section 3502(f) of title 5, United States Code, is amended 
     to read as follows:
       ``(f)(1) The head of an Executive agency or military 
     department may, in accordance with regulations prescribed by 
     the Office of Personnel Management--
       ``(A) separate from service any employee who volunteers to 
     be separated under this subparagraph even though the employee 
     is not otherwise subject to separation due to a reduction in 
     force; and
       ``(B) for each employee voluntarily separated under 
     subparagraph (A), retain an employee in a similar position 
     who would otherwise be separated due to a reduction in force.
       ``(2) The separation of an employee under paragraph (1)(A) 
     shall be treated as an involuntary separation due to a 
     reduction in force, except for purposes of priority placement 
     programs and advance notice.
       ``(3) An employee with critical knowledge and skills (as 
     defined by the head of the Executive agency or military 
     department concerned) may not participate in a voluntary 
     separation under paragraph (1)(A) if the agency or department 
     head concerned determines that such participation would 
     impair the performance of the mission of the agency or 
     department (as applicable).
       ``(4) The regulations prescribed under this section shall 
     incorporate the authority provided in this subsection.
       ``(5) No authority under paragraph (1) may be exercised 
     after September 30, 2001.''.

     SEC. 402. NONREIMBURSABLE DETAILS TO FEDERAL AGENCIES BEFORE 
                   A REDUCTION IN FORCE.

       (a) In General.--Section 3341 of title 5, United States 
     Code, is amended to read as follows:

     ``Sec. 3341. Details; within Executive agencies and military 
       departments; employees affected by reduction in force

       ``(a) The head of an Executive agency or military 
     department may detail employees, except those required by law 
     to be engaged exclusively in some specific work, among the 
     bureaus and offices of the agency or department.
       ``(b) The head of an Executive agency or military 
     department may detail to duties in the same or another agency 
     or department, on a nonreimbursable basis, an employee who 
     has been identified by the employing agency as likely to be 
     separated from the Federal service by reduction in force or 
     who has received a specific notice of separation by reduction 
     in force.
       ``(c)(1) Details under subsection (a)--
       ``(A) may not be for periods exceeding 120 days; and
       ``(B) may be renewed (1 or more times) by written order of 
     the head of the agency or department, in each particular 
     case, for periods not exceeding 120 days each.
       ``(2) Details under subsection (b)--
       ``(A) may not be for periods exceeding 90 days; and
       ``(B) may not be renewed.
       ``(d) The 120-day limitation under subsection (c)(1) for 
     details and renewals of details does not apply to the 
     Department of Defense in the case of a detail--
       ``(1) made in connection with the closure or realignment of 
     a military installation pursuant to a base closure law or an 
     organizational restructuring of the Department as part of a 
     reduction in the size of the armed forces or the civilian 
     workforce of the Department; and
       ``(2) in which the position to which the employee is 
     detailed is eliminated on or before the date of the closure, 
     realignment, or restructuring.
       ``(e) For purposes of this section--
       ``(1) the term `base closure law' means--
       ``(A) section 2687 of title 10;
       ``(B) title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act; and
       ``(C) the Defense Base Closure and Realignment Act of 1990; 
     and
       ``(2) the term `military installation'--
       ``(A) in the case of an installation covered by section 
     2687 of title 10, has the meaning given such term in 
     subsection (e)(1) of such section;
       ``(B) in the case of an installation covered by the Act 
     referred to in subparagraph (B) of paragraph (1), has the 
     meaning given such term in section 209(6) of such Act; and
       ``(C) in the case of an installation covered by the Act 
     referred to in subparagraph (C) of paragraph (1), has the 
     meaning given such term in section 2910(4) of such Act.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     33 of title 5, United States Code, is amended by striking the 
     item relating to section 3341 and inserting the following:

``3341. Details; within Executive agencies and military departments; 
              employees affected by reduction in force.''.

       (c) Effective Date.--The amendments made by this section 
     shall take effect 30 days after the date of the enactment of 
     this Act.

[[Page H11562]]

                    TITLE V--SOFT-LANDING PROVISIONS

     SEC. 501. TEMPORARY CONTINUATION OF FEDERAL EMPLOYEES' LIFE 
                   INSURANCE.

       Section 8706 of title 5, United States Code, is amended by 
     adding at the end the following:
       ``(g)(1) Notwithstanding subsections (a) and (b) of this 
     section, an employee whose coverage under this chapter would 
     otherwise terminate due to a separation described in 
     paragraph (3) shall be eligible to continue basic insurance 
     coverage described in section 8704 in accordance with this 
     subsection and regulations the Office may prescribe, if the 
     employee arranges to pay currently into the Employees Life 
     Insurance Fund, through the former employing agency or, if an 
     annuitant, through the responsible retirement system, an 
     amount equal to the sum of--
       ``(A) both employee and agency contributions which would be 
     payable if separation had not occurred; plus
       ``(B) an amount, determined under regulations prescribed by 
     the Office, to cover necessary administrative expenses, but 
     not to exceed 2 percent of the total amount under 
     subparagraph (A).
       ``(2) Continued coverage under this subsection may not 
     extend beyond the date which is 18 months after the effective 
     date of the separation which entitles a former employee to 
     coverage under this subsection. Termination of continued 
     coverage under this subsection shall be subject to provision 
     for temporary extension of life insurance coverage and for 
     conversion to an individual policy of life insurance as 
     provided by subsection (a). If an eligible employee does not 
     make an election for purposes of this subsection, the 
     employee's insurance will terminate as provided by subsection 
     (a).
       ``(3)(A) This subsection shall apply to an employee who, on 
     or after the date of enactment of this subsection and before 
     the applicable date under subparagraph (B)--
       ``(i) is involuntarily separated from a position due to a 
     reduction in force, or separates voluntarily from a position 
     the employing agency determines is a `surplus position' as 
     defined by section 8905(d)(4)(C); and
       ``(ii) is insured for basic insurance under this chapter on 
     the date of separation.
       ``(B) The applicable date under this subparagraph is 
     October 1, 2001, except that, for purposes of any involuntary 
     separation referred to in subparagraph (A) with respect to 
     which appropriate specific notice is afforded to the affected 
     employee before October 1, 2001, the applicable date under 
     this subparagraph is February 1, 2002.''.

     SEC. 502. CONTINUED ELIGIBILITY FOR HEALTH INSURANCE.

       (a) Continued Eligibility After Retirement.--Section 8905 
     of title 5, United States Code, is amended--
       (1) in the first sentence of subsection (b) by striking 
     ``An'' and inserting ``Subject to subsection (g), an''; and
       (2) by adding at the end the following:
       ``(g)(1) The Office shall waive the requirements for 
     continued enrollment under subsection (b) in the case of any 
     individual who, on or after the date of the enactment of this 
     subsection and before the applicable date under paragraph 
     (2)--
       ``(A) is involuntarily separated from a position, or 
     voluntarily separated from a surplus position, in or under an 
     Executive agency due to a reduction in force,
       ``(B) based on the separation referred to in subparagraph 
     (A), retires on an immediate annuity under subchapter III of 
     chapter 83 or subchapter II of chapter 84, and
       ``(C) is enrolled in a health benefits plan under this 
     chapter as an employee immediately before retirement.
       ``(2) The applicable date under this paragraph is October 
     1, 2001, except that, for purposes of any involuntary 
     separation referred to in paragraph (1)(A) with respect to 
     which appropriate specific notice is afforded to the affected 
     employee before October 1, 2001, the applicable date under 
     this paragraph is February 1, 2002.
       ``(3) For purposes of this subsection, the term `surplus 
     position', with respect to an agency, means any position 
     determined in accordance with regulations under section 
     8905a(d)(4)(C) for such agency.''.
       (b) Temporary Continued Eligibility After Being 
     Involuntarily Separated.--Section 8905a(d)(4) of title 5, 
     United States Code, is amended--
       (1) in subparagraph (A) by striking ``the Department of 
     Defense'' and inserting ``an Executive agency''; and
       (2) by amending subparagraph (C) to read as follows:
       ``(C) For purposes of this paragraph, the term `surplus 
     position' means a position that, as determined under 
     regulations prescribed by the head of the agency involved, is 
     identified during planning for a reduction in force as being 
     no longer required and is designated for elimination during 
     the reduction in force.''.

     SEC. 503. JOB PLACEMENT AND COUNSELING SERVICES.

       (a) Authority for Services.--The head of each Executive 
     agency may establish a program to provide job placement and 
     counseling services to current and former employees.
       (b) Types of Services Authorized.--A program established 
     under this section may include such services as--
       (1) career and personal counseling;
       (2) training in job search skills; and
       (3) job placement assistance, including assistance provided 
     through cooperative arrangements with State and local 
     employment service offices.
       (c) Eligibility for Services.--Services authorized by this 
     section may be provided to--
       (1) current employees of the agency or, with the approval 
     of such other agency, any other agency; and
       (2) employees of the agency or, with the approval of such 
     other agency, any other agency who have been separated for 
     less than 1 year, if the separation was not a removal for 
     cause on charges of misconduct or delinquency.
       (d) Reimbursement for Costs.--The costs of services 
     provided to current or former employees of another agency 
     shall be reimbursed by that agency.

     SEC. 504. EDUCATION AND RETRAINING INCENTIVES.

       (a) Non-Federal Employment Incentive Payments.--
       (1) Definitions.--For purposes of this subsection--
       (A) the term ``eligible employee'' means an employee who is 
     involuntarily separated from a position, or voluntarily 
     separated from a surplus position, in or under an Executive 
     agency due to a reduction in force, except that such term 
     does not include an employee who, at the time of separation, 
     meets the age and service requirements for an immediate 
     annuity under subchapter III of chapter 83 or chapter 84 of 
     title 5, United States Code, other than under section 8336(d) 
     or 8414(b) of such title;
       (B) the term ``non-Federal employer'' means an employer 
     other than the Government of the United States or any agency 
     or other instrumentality thereof;
       (C) the term ``Executive agency'' has the meaning given 
     such term by section 105 of title 5, United States Code; and
       (D) the term ``surplus position'' has the meaning given 
     such term by section 8905(d)(4)(C) of title 5, United States 
     Code.
       (2) Authority.--The head of an Executive agency may pay 
     retraining and relocation incentive payments, in accordance 
     with this subsection, in order to facilitate the reemployment 
     of eligible employees who are separated from such agency.
       (3) Retraining incentive payment.--
       (A) Agreement.--The head of an Executive agency may enter 
     into an agreement with a non-Federal employer under which the 
     non-Federal employer agrees--
       (i) to employ an individual referred to in paragraph (2) 
     for at least 12 months for a salary which is mutually 
     agreeable to the employer and such individual; and
       (ii) to certify to the agency head any costs incurred by 
     the employer for any necessary training provided to such 
     individual in connection with the employment by such 
     employer.
       (B) Payment of retraining incentive payment.--The agency 
     head shall pay a retraining incentive payment to the non-
     Federal employer upon the employee's completion of 12 months 
     of continuous employment by that employer. The agency head 
     shall prescribe the amount of the incentive payment.
       (C) Proration rule.--The agency head shall pay a prorated 
     amount of the full retraining incentive payment to the non-
     Federal employer for an employee who does not remain employed 
     by the non-Federal employer for at least 12 months, but only 
     if the employee remains so employed for at least 6 months.
       (D) Limitation.--In no event may the amount of the 
     retraining incentive payment paid for the training of any 
     individual exceed the amount certified for such individual 
     under subparagraph (A), subject to subsection (c).
       (4) Relocation incentive payment.--The head of an agency 
     may pay a relocation incentive payment to an eligible 
     employee if it is necessary for the employee to relocate in 
     order to commence employment with a non-Federal employer. 
     Subject to subsection (e), the amount of the incentive 
     payment shall not exceed the amount that would be payable for 
     travel, transportation, and subsistence expenses under 
     subchapter II of chapter 57 of title 5, United States Code, 
     including any reimbursement authorized under section 5724b of 
     such title, to a Federal employee who transfers between the 
     same locations as the individual to whom the incentive 
     payment is payable.
       (5) Duration.--No incentive payment may be paid for 
     training or relocation commencing after June 30, 2002.
       (6) Source.--An incentive payment under this subsection 
     shall be payable from appropriations or other funds available 
     to the agency for purposes of training (within the meaning of 
     section 4101(4) of title 5, United States Code).
       (b) Educational Assistance.--
       (1) Definitions.--For purposes of this subsection--
       (A) the term ``eligible employee'' means an eligible 
     employee, within the meaning of subsection (a), who --
       (i) is employed full-time on a permanent basis;
       (ii) has completed at least 3 years of current continuous 
     service in any Executive agency or agencies; and
       (iii) is admitted to an institution of higher education 
     within 1 year after separation;
       (B) the term ``Executive agency'' has the meaning given 
     such term by section 105 of title 5, United States Code;
       (C) the term ``educational assistance'' means payments for 
     educational assistance as provided in section 127(c)(1) of 
     the Internal Revenue Code of 1986 (26 U.S.C. 127(c)(1)); and

[[Page H11563]]

       (D) the term ``institution of higher education'' has the 
     meaning given such term by section 1201(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1141(a)).
       (2) Authority.--Under regulations prescribed by the Office 
     of Personnel Management, and subject to the limitations under 
     subsection (c), the head of an Executive agency may, in his 
     or her discretion, provide educational assistance under this 
     subsection to an eligible employee for a program of education 
     at an institution of higher education after the separation of 
     the employee.
       (3) Duration.--No educational assistance under this 
     subsection may be paid later than 10 years after the 
     separation of the eligible employee.
       (4) Source.--Educational assistance payments shall be 
     payable from appropriations or other funds which would have 
     been used to pay the salary of the eligible employee if the 
     employee had not separated.
       (5) Regulations.--The Office of Personnel Management shall 
     prescribe regulations for the administration of this 
     subsection. Such regulations shall provide that educational 
     assistance payments shall be limited to amounts necessary for 
     current tuition and fees only.
       (c) Limitations.--
       (1) Aggregate limitation.--No incentive payment or 
     educational assistance payment may be paid under this section 
     to or on behalf of any individual to the extent that such 
     amount would cause the aggregate amount otherwise paid or 
     payable under this section, to or on behalf of such 
     individual, to exceed $10,000.
       (2) Limitation relating to educational assistance.--The 
     total amount paid under subsection (b) to any individual--
       (A) may not exceed $6,000 if the individual has at least 3 
     but less than 4 years of qualifying service; and
       (B) may not exceed $8,000 if the individual has at least 4 
     but less than 5 years of qualifying service.
       (3) Qualifying service.--For purposes of paragraph (2), the 
     term ``qualifying service'' means service performed as an 
     employee, within the meaning of section 2105 of title 5, 
     United States Code, on a permanent full-time or permanent 
     part-time basis (counting part-time service on a prorated 
     basis).
                        TITLE VI--MISCELLANEOUS

     SEC. 601. REIMBURSEMENTS RELATING TO PROFESSIONAL LIABILITY 
                   INSURANCE.

       (a) Authority.--Notwithstanding any other provision of law, 
     any amounts appropriated, for fiscal year 1997 or any fiscal 
     year thereafter, for salaries and expenses of Government 
     employees may be used to reimburse any qualified employee for 
     not to exceed one-half the costs incurred by such employee 
     for professional liability insurance. A payment under this 
     section shall be contingent upon the submission of such 
     information or documentation as the employing agency may 
     require.
       (b) Qualified Employee.--For purposes of this section, the 
     term ``qualified employee'' means--
       (1) an agency employee whose position is that of a law 
     enforcement officer;
       (2) an agency employee whose position is that of a 
     supervisor or management official; or
       (3) such other employee as the head of the agency considers 
     appropriate
       (c) Definitions.--For purposes of this section--
       (1) the term ``agency'' means an Executive agency, as 
     defined by section 105 of title 5, United States Code;
       (2) the term ``law enforcement officer'' means an employee, 
     the duties of whose position are primarily the investigation, 
     apprehension, prosecution, or detention of individuals 
     suspected or convicted of offenses against the criminal laws 
     of the United States, including any law enforcement officer 
     under section 8331(20) or 8401(17) of such title 5;
       (3) the terms ``supervisor'' and ``management official'' 
     have the respective meanings given them by section 7103(a) of 
     such title 5; and
       (4) the term ``professional liability insurance'' means 
     insurance which provides coverage for--
       (A) legal liability for damages due to injuries to other 
     persons, damage to their property, or other damage or loss to 
     such other persons (including the expenses of litigation and 
     settlement) resulting from or arising out of any tortious 
     act, error, or omission of the covered individual (whether 
     common law, statutory, or constitutional) while in the 
     performance of such individual's official duties as a 
     qualified employee; and
       (B) the cost of legal representation for the covered 
     individual in connection with any administrative or judicial 
     proceeding (including any investigation or disciplinary 
     proceeding) relating to any act, error, or omission of the 
     covered individual while in the performance of such 
     individual's official duties as a qualified employee, and 
     other legal costs and fees relating to any such 
     administrative or judicial proceeding.
       (d) Policy Limits.--
       (1) In general.--Reimbursement under this section shall not 
     be available except in the case of any professional liability 
     insurance policy providing for--
       (A) not to exceed $1,000,000 of coverage for legal 
     liability (as described in subsection (c)(4)(A)) per 
     occurrence per year; and
       (B) not to exceed $100,000 of coverage for the cost of 
     legal representation (as described in subsection (c)(4)(B)) 
     per occurrence per year.
       (2) Adjustments.--The head of an agency may from time to 
     time adjust the respective dollar amount limitations 
     applicable under this subsection to the extent that the head 
     of such agency considers appropriate to reflect inflation.

     SEC. 602. EMPLOYMENT RIGHTS FOLLOWING CONVERSION TO CONTRACT.

       (a) In General.--An employee whose position is abolished 
     because an activity performed by an Executive agency (within 
     the meaning of section 105 of title 5, United States Code) is 
     converted to contract shall receive from the contractor an 
     offer in good faith of a right of first refusal of employment 
     under the contract for a position for which the employee is 
     deemed qualified based upon previous knowledge, skills, 
     abilities, and experience. The contractor shall not offer 
     employment under the contract to any person prior to having 
     complied fully with this obligation, except as provided in 
     subsection (b), or unless no employee whose position is 
     abolished because such activity has been converted to 
     contract can demonstrate appropriate qualifications for the 
     position.
       (b) Exception.--Notwithstanding the contractor's obligation 
     under subsection (a), the contractor is not required to offer 
     a right of first refusal to any employee who, in the 12 
     months preceding conversion to contract, has been the subject 
     of an adverse personnel action related to misconduct or has 
     received a less than fully successful performance rating.
       (c) Limitation.--No employee shall have a right to more 
     than 1 offer under this section based on any particular 
     separation due to the conversion of an activity to contract.
       (d) Regulations.--Regulations to carry out this section may 
     be prescribed by the President.

     SEC. 603. DEBARMENT OF HEALTH CARE PROVIDERS FOUND TO HAVE 
                   ENGAGED IN FRAUDULENT PRACTICES.

       (a) In General.--Section 8902a of title 5, United States 
     Code, is amended--
       (1) in subsection (a)(2)(A) by striking ``subsection (b) or 
     (c)'' and inserting ``subsection (b), (c), or (d)'';
       (2) in subsection (b)--
       (A) by striking ``may'' and inserting ``shall'' in the 
     matter before paragraph (1); and
       (B) by amending paragraph (5) to read as follows:
       ``(5) Any provider that is currently suspended or excluded 
     from participation under any program of the Federal 
     Government involving procurement or nonprocurement 
     activities.'';
       (3) by redesignating subsections (c) through (i) as 
     subsections (d) through (j), respectively, and by inserting 
     after subsection (b) the following:
       ``(c) The Office may bar the following providers of health 
     care services from participating in the program under this 
     chapter:
       ``(1) Any provider--
       ``(A) whose license to provide health care services or 
     supplies has been revoked, suspended, restricted, or not 
     renewed, by a State licensing authority for reasons relating 
     to the provider's professional competence, professional 
     performance, or financial integrity; or
       ``(B) that surrendered such a license while a formal 
     disciplinary proceeding was pending before such an authority, 
     if the proceeding concerned the provider's professional 
     competence, professional performance, or financial integrity.
       ``(2) Any provider that is an entity directly or indirectly 
     owned, or with a 5 percent or more controlling interest, by 
     an individual who is convicted of any offense described in 
     subsection (b), against whom a civil monetary penalty has 
     been assessed under subsection (d), or who has been excluded 
     from participation under this chapter.
       ``(3) Any provider that the Office determines, in 
     connection with claims presented under this chapter, has 
     charged for health care services or supplies in an amount 
     substantially in excess of such provider's customary charges 
     for such services or supplies (unless the Office finds there 
     is good cause for such charge), or charged for health care 
     services or supplies which are substantially in excess of the 
     needs of the covered individual or which are of a quality 
     that fails to meet professionally recognized standards for 
     such services or supplies.
       ``(4) Any provider that the Office determines has committed 
     acts described in subsection (d).'';
       (4) in subsection (d), as so redesignated by paragraph (3), 
     by amending paragraph (1) to read as follows:
       ``(1) in connection with claims presented under this 
     chapter, that a provider has charged for a health care 
     service or supply which the provider knows or should have 
     known involves--
       ``(A) an item or service not provided as claimed;
       ``(B) charges in violation of applicable charge limitations 
     under section 8904(b); or
       ``(C) an item or service furnished during a period in which 
     the provider was excluded from participation under this 
     chapter pursuant to a determination by the Office under this 
     section, other than as permitted under subsection 
     (g)(2)(B);'';
       (5) in subsection (f), as so redesignated by paragraph (3), 
     by inserting ``(where such debarment is not mandatory)'' 
     after ``under this section'' the first place it appears;
       (6) in subsection (g), as so redesignated by paragraph 
     (3)--

[[Page H11564]]

       (A) by striking ``(g)(1)'' and all that follows through the 
     end of paragraph (1) and inserting the following:
       ``(g)(1)(A) Except as provided in subparagraph (B), 
     debarment of a provider under subsection (b) or (c) shall be 
     effective at such time and upon such reasonable notice to 
     such provider, and to carriers and covered individuals, as 
     shall be specified in regulations prescribed by the Office. 
     Any such provider that is excluded from participation may 
     request a hearing in accordance with subsection (h)(1).
       ``(B) Unless the Office determines that the health or 
     safety of individuals receiving health care services warrants 
     an earlier effective date, the Office shall not make a 
     determination adverse to a provider under subsection (c)(4) 
     or (d) until such provider has been given reasonable notice 
     and an opportunity for the determination to be made after a 
     hearing as provided in accordance with subsection (h)(1).'';
       (B) in paragraph (3)--
       (i) by inserting ``of debarment'' after ``notice''; and
       (ii) by adding at the end the following: ``In the case of a 
     debarment under paragraphs (1) through (4) of subsection (b), 
     the minimum period of exclusion shall not be less than 3 
     years, except as provided in paragraph (4)(B)(ii).''; and
       (C) in paragraph (4)(B)(i)(I) by striking ``subsection (b) 
     or (c)'' and inserting ``subsection (b), (c), or (d)'';
       (7) in subsection (h), as so redesignated by paragraph (3), 
     by striking ``(h)(1)'' and all that follows through the end 
     of paragraph (2) and inserting the following:
       ``(h)(1) Any provider of health care services or supplies 
     that is the subject of an adverse determination by the Office 
     under this section shall be entitled to reasonable notice and 
     an opportunity to request a hearing of record, and to 
     judicial review as provided in this subsection after the 
     Office renders a final decision. The Office shall grant a 
     request for a hearing upon a showing that due process rights 
     have not previously been afforded with respect to any finding 
     of fact which is relied upon as a cause for an adverse 
     determination under this section. Such hearing shall be 
     conducted without regard to subchapter II of chapter 5 and 
     chapter 7 of this title by a hearing officer who shall be 
     designated by the Director of the Office and who shall not 
     otherwise have been involved in the adverse determination 
     being appealed. A request for a hearing under this subsection 
     must be filed within such period and in accordance with such 
     procedures as the Office shall prescribe by regulation.
       ``(2) Any provider adversely affected by a final decision 
     under paragraph (1) made after a hearing to which such 
     provider was a party may seek review of such decision in the 
     United States District Court for the District of Columbia or 
     for the district in which the plaintiff resides or has his 
     principal place of business by filing a notice of appeal in 
     such court within 60 days from the date the decision is 
     issued and simultaneously sending copies of such notice by 
     certified mail to the Director of the Office and to the 
     Attorney General. In answer to the appeal, the Director of 
     the Office shall promptly file in such court a certified copy 
     of the transcript of the record, if the Office conducted a 
     hearing, and other evidence upon which the findings and 
     decision complained of are based. The court shall have power 
     to enter, upon the pleadings and evidence of record, a 
     judgment affirming, modifying, or setting aside, in whole or 
     in part, the decision of the Office, with or without 
     remanding the cause for a rehearing. The district court shall 
     not set aside or remand the decision of the Office unless 
     there is not substantial evidence on the record, taken as a 
     whole, to support the findings by the Office of a cause for 
     action under this section or unless action taken by the 
     Office constitutes an abuse of discretion.''; and
       (8) in subsection (i), as so redesignated by paragraph 
     (3)--
       (A) by striking ``subsection (c)'' and inserting 
     ``subsection (d)''; and
       (B) by adding at the end the following: ``The amount of a 
     penalty or assessment as finally determined by the Office, or 
     other amount the Office may agree to in compromise, may be 
     deducted from any sum then or later owing by the United 
     States to the party against whom the penalty or assessment 
     has been levied.''.
       (b) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), this 
     section shall take effect on the date of the enactment of 
     this Act.
       (2) Exceptions.--(A) Paragraphs (2) and (4) of section 
     8902a(c) of title 5, United States Code, as amended by 
     subsection (a), shall apply only to the extent that the 
     misconduct which is the basis for debarment thereunder occurs 
     after the date of the enactment of this Act.
       (B) Section 8902a(d)(1)(B) of title 5, United States Code, 
     as amended by subsection (a), shall apply only with respect 
     to charges which violate section 8904(b) of such title 5 for 
     items and services furnished after the date of the enactment 
     of this Act.
       (C) Section 8902a(g)(3) of title 5, United States Code, as 
     amended by subsection (a), shall apply only with respect to 
     debarments based on convictions occurring after the date of 
     the enactment of this Act.

     SEC. 604. CONSISTENT COVERAGE FOR INDIVIDUALS ENROLLED IN A 
                   HEALTH PLAN ADMINISTERED BY THE FEDERAL BANKING 
                   AGENCIES.

       Section 5 of the FEGLI Living Benefits Act (Public Law 103-
     409; 108 Stat. 4232) is amended--
       (1) by inserting ``and the Board of Governors of the 
     Federal Reserve System'' after ``Office of the Comptroller of 
     the Currency and the Office of Thrift Supervision'' each 
     place it appears;
       (2) in subsection (a), by inserting ``or under a health 
     benefits plan not governed by chapter 89 of such title in 
     which employees and retirees of the Board of Governors of the 
     Federal Reserve System participated before January 4, 1997,'' 
     after ``January 7, 1995,'';
       (3) in subsection (b)--
       (A) by inserting ``(in the case of the Comptroller of the 
     Currency and the Office of Thrift Supervision) or on January 
     4, 1997 (in the case of the Board of Governors of the Federal 
     Reserve System)'' after ``on January 7, 1995'' each place it 
     appears;
       (B) by inserting ``, or in which employees and retirees of 
     the Board of Governors of the Federal Reserve System 
     participate,'' after ``Office of the Comptroller of the 
     Currency or the Office of Thrift Supervision'' each place it 
     appears; and
       (C) by inserting ``(in the case of the Comptroller of the 
     Currency and the Office of Thrift Supervision) or after 
     January 5, 1997 (in the case of the Board of Governors of the 
     Federal Reserve System)'' after ``January 8, 1995'' each 
     place it appears;
       (4) in subsection (b)(1)(A), by striking ``title;'' and 
     inserting ``title or a retiree (as defined in subsection 
     (e);''; and
       (5) by adding at the end the following:
       ``(e) Definition.--For purposes of this section, the term 
     `retiree' shall mean an individual who is receiving benefits 
     under the Retirement Plan for Employees of the Federal 
     Reserve System.''.

     SEC. 605. AMENDMENT TO PUBLIC LAW 104-134.

       Paragraph (3) of section 3110(b) of the Omnibus 
     Consolidated Rescissions and Appropriations Act of 1996 
     (Public Law 104-134; 110 Stat. 1321-343) is amended to read 
     as follows:
       ``(3) The Corporation shall pay to the Thrift Savings Fund 
     such employee and agency contributions as are required by 
     sections 8432 and 8351 of title 5, United States Code, for 
     those employees who elect to retain their coverage under the 
     Civil Service Retirement System or the Federal Employees' 
     Retirement System pursuant to paragraph (1).''.

     SEC. 606. MISCELLANEOUS AMENDMENTS RELATING TO THE HEALTH 
                   BENEFITS PROGRAM FOR FEDERAL EMPLOYEES.

       (a) Definition of a Carrier.--Paragraph (7) of section 8901 
     of title 5, United States Code, is amended by striking 
     ``organization;'' and inserting ``organization and the 
     Government-wide service benefit plan sponsored by an 
     association of organizations described in this paragraph;''.
       (b) Service Benefit Plan.--Paragraph (1) of section 8903 of 
     title 5, United States Code, is amended by striking ``plan,'' 
     and inserting ``plan, underwritten by participating 
     affiliates licensed in any number of States,''.
       (c) Preemption.--Section 8902(m) of title 5, United States 
     Code, is amended by striking ``(m)(1)'' and all that follows 
     through the end of paragraph (1) and inserting the following:
       ``(m)(1) 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 health 
     insurance or plans.''.

     SEC. 607. PAY FOR CERTAIN POSITIONS FORMERLY CLASSIFIED AT 
                   GS-18.

       Notwithstanding any other provision of law, the rate of 
     basic pay for positions that were classified at GS-18 of the 
     General Schedule on the date of the enactment of the Federal 
     Employees Pay Comparability Act of 1990 shall be set and 
     maintained at the rate equal to the highest rate of basic pay 
     for the Senior Executive Service under section 5382(b) of 
     title 5, United States Code.

     SEC. 608. REPEAL OF SECTION 1307 OF TITLE 5 OF THE UNITED 
                   STATES CODE.

       (a) In General.--Section 1307 of title 5, United States 
     Code, is repealed.
       (b) Clerical Amendment.--The table of sections for chapter 
     13 of title 5, United States Code, is amended by repealing 
     the item relating to section 1307.

     SEC. 609. EXTENSION OF CERTAIN PROCEDURAL AND APPEAL RIGHTS 
                   TO CERTAIN PERSONNEL OF THE FEDERAL BUREAU OF 
                   INVESTIGATION.

       (a) In General.--Section 7511(b)(8) of title 5, United 
     States Code, is amended by striking ``the Federal Bureau of 
     Investigation,''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to any personnel action taking 
     effect after the end of the 45-day period beginning on the 
     date of the enactment of this Act.

  Mr. MICA (during the reading). Mr. Speaker, I ask unanimous consent 
that the amendment in the nature of a substitute be considered as read 
and printed in the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?
  There was no objection.
  The SPEAKER pro tempore. The question is on the amendment in the 
nature of a substitute offered by the gentleman from Florida [Mr. 
Mica].
  The amendment in the nature of a substitute was agreed to.
  The bill was ordered to be engrossed and read a third time, was read 
the

[[Page H11565]]

third time, and passed, and a motion to reconsider was laid on the 
table.

                          ____________________