[Congressional Record (Bound Edition), Volume 145 (1999), Part 4]
[House]
[Pages 5264-5275]
[From the U.S. Government Publishing Office, www.gpo.gov]




              FEDERAL RETIREMENT COVERAGE CORRECTIONS ACT

  Mr. SCARBOROUGH. Mr. Speaker, I move to suspend the rules and pass 
the bill (H.R. 416) to provide for the rectification of certain 
retirement coverage errors affecting Federal employees, and for other 
purposes, as amended.
  The Clerk read as follows:

                                H.R. 416

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Applicability.
Sec. 4. Restriction relating to future corrections.
Sec. 5. Irrevocability of elections.

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

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

Sec. 101. Elections.
Sec. 102. Effect of an election to be transferred from CSRS to FERS to 
              correct a retirement coverage error.
Sec. 103. Effect of an election to be transferred from CSRS-Offset to 
              FERS to correct a retirement coverage error.
Sec. 104. Effect of an election to be transferred from CSRS to CSRS-
              Offset to correct a retirement coverage error.

[[Page 5265]]

Sec. 105. Effect of an election to be restored (or transferred) to 
              CSRS-Offset after having been corrected to FERS from 
              CSRS-Offset (or CSRS).
Sec. 106. Effect of election to remain FERS covered after having been 
              corrected to FERS from CSRS-Offset (or CSRS).

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

Sec. 111. Elections.
Sec. 112. Effect of an election to become FERS covered to correct the 
              retirement coverage error.
Sec. 113. Effect of an election to become CSRS-Offset covered to 
              correct the retirement coverage error.
Sec. 114. Effect of an election to become CSRS covered to correct the 
              retirement coverage error.

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

Sec. 121. Uncorrected error: employee who should be Social Security-
              Only covered, but who is erroneously FERS covered 
              instead.
Sec. 122. Uncorrected error: employee who should be Social Security-
              Only covered, but who is erroneously CSRS-Offset covered 
              instead.
Sec. 123. Uncorrected error: employee who should be Social Security-
              Only covered, but who is erroneously CSRS covered 
              instead.
Sec. 124. Corrected error: situations under sections 121-123.
Sec. 125. Vested employees excepted from automatic exclusion.

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

Sec. 131. Elections.
Sec. 132. Effect of an election to be transferred from FERS to CSRS to 
              correct a retirement coverage error.
Sec. 133. Effect of an election to be transferred from FERS to CSRS-
              Offset to correct a retirement coverage error.
Sec. 134. Effect of an election to be restored to FERS after having 
              been corrected to CSRS.
Sec. 135. Effect of an election to be restored to FERS after having 
              been corrected to CSRS-Offset.
Sec. 136. Disqualification of certain individuals to whom same election 
              was previously available.

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

Sec. 141. Automatic transfer to CSRS-Offset.
Sec. 142. Effect of transfer.

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

Sec. 151. Elections.
Sec. 152. Effect of an election to be transferred from CSRS-Offset to 
              CSRS to correct the retirement coverage error.
Sec. 153. Effect of an election to be restored to CSRS-Offset after 
              having been corrected to CSRS.

   Subtitle G--Additional Provisions Relating to Government Agencies

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

                      TITLE II--GENERAL PROVISIONS

Sec. 201. Identification and notification requirements.
Sec. 202. Individual appeal rights.
Sec. 203. Information to be furnished by Government agencies to 
              authorities administering this Act.
Sec. 204. Regulations.
Sec. 205. All elections to be approved by OPM.
Sec. 206. Technical and conforming amendments.

                      TITLE III--OTHER PROVISIONS

Sec. 301. Provisions to permit continued conformity of other Federal 
              retirement systems.
Sec. 302. Provisions to prevent reductions in force and any unfunded 
              liability in the CSRDF.
Sec. 303. Individual right of action preserved for amounts not 
              otherwise provided for under this Act.

     SEC. 2. DEFINITIONS.

       For purposes of this Act:
       (1) CSRS.--The term ``CSRS'' means the Civil Service 
     Retirement System.
       (2) CSRDF.--The term ``CSRDF'' means the Civil Service 
     Retirement and Disability Fund.
       (3) CSRS covered.--The term ``CSRS covered'', with respect 
     to any service, means service that is subject to the 
     provisions of subchapter III of chapter 83 of title 5, United 
     States Code, other than those that apply only with respect to 
     an individual described in section 8402(b)(2) of such title.
       (4) CSRS-offset covered.--The term ``CSRS-Offset covered'', 
     with respect to any service, means service that is subject to 
     the provisions of subchapter III of chapter 83 of title 5, 
     United States Code, that apply with respect to an individual 
     described in section 8402(b)(2) of such title.
       (5) Employee.--The term ``employee'' means an employee as 
     defined by section 8331 or 8401 of title 5, United States 
     Code, and any other individual (not satisfying either of 
     those definitions) serving in an appointive or elective 
     office or position in the executive, legislative, or judicial 
     branch of the Government who, by virtue of that service, is 
     permitted or required to be CSRS covered, CSRS-Offset 
     covered, FERS covered, or Social Security-Only covered.
       (6) Executive director.--The term ``Executive Director of 
     the Federal Retirement Thrift Investment Board'' or 
     ``Executive Director'' means the Executive Director appointed 
     under section 8474 of title 5, United States Code.
       (7) FERS.--The term ``FERS'' means the Federal Employees' 
     Retirement System.
       (8) FERS covered.--The term ``FERS covered'', with respect 
     to any service, means service that is subject to chapter 84 
     of title 5, United States Code.
       (9) Government.--The term ``Government'' has the meaning 
     given such term by section 8331(7) of title 5, United States 
     Code.
       (10) OASDI taxes.--The term ``OASDI taxes'' means the OASDI 
     employee tax and the OASDI employer tax.
       (11) OASDI employee tax.--The term ``OASDI employee tax'' 
     means the tax imposed under section 3101(a) of the Internal 
     Revenue Code of 1986 (relating to Old-Age, Survivors and 
     Disability Insurance).
       (12) OASDI employer tax.--The term ``OASDI employer tax'' 
     means the tax imposed under section 3111(a) of the Internal 
     Revenue Code of 1986 (relating to Old-Age, Survivors and 
     Disability Insurance).
       (13) OASDI trust funds.--The term ``OASDI trust funds'' 
     means the Federal Old-Age and Survivors Insurance Trust Fund 
     and the Federal Disability Insurance Trust Fund.
       (14) Period of erroneous coverage.--The term ``period of 
     erroneous coverage'' means, in the case of a retirement 
     coverage error, the period throughout which retirement 
     coverage is in effect pursuant to such error (or would have 
     been in effect, but for such error).
       (15) Retirement coverage determination.--The term 
     ``retirement coverage determination'' means a determination 
     by an employee or agent of the Government as to whether a 
     particular type of Government service is CSRS covered, CSRS-
     Offset covered, FERS covered, or Social Security-Only 
     covered.
       (16) Retirement coverage error.--The term ``retirement 
     coverage error'' means a retirement coverage determination 
     that, as a result of any error, misrepresentation, or 
     inaction on the part of an employee or agent of the 
     Government (including an error as described in section 
     163(b)(2)), causes an individual erroneously to be enrolled 
     or not enrolled in a retirement system, as further described 
     in the applicable subtitle of title I.
       (17) Social security-only covered.--The term ``Social 
     Security-Only covered'', with respect to any service, means 
     Government service that constitutes employment under section 
     210 of the Social Security Act (42 U.S.C. 410), and that--
       (A) is subject to OASDI taxes; but
       (B) is not subject to any retirement system for Government 
     employees (disregarding title II of the Social Security Act).
       (18) Thrift savings fund.--The term ``Thrift Savings Fund'' 
     means the Thrift Savings Fund established under section 8437 
     of title 5, United States Code.

     SEC. 3. APPLICABILITY.

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

     SEC. 4. RESTRICTION RELATING TO FUTURE CORRECTIONS.

       (a) In General.--Except as otherwise provided in this Act, 
     any individual who, on or after the date of enactment of this 
     Act, becomes or remains affected by a retirement coverage 
     error may not be excluded from or made subject to any 
     retirement system for the sole purpose of correcting such 
     error.
       (b) Coordination With Other Laws.--
       (1) In general.--Nothing in this Act shall be considered to 
     preclude any voluntary retirement coverage election made 
     other than under this Act.
       (2) Regulations.--The Office of Personnel Management shall 
     prescribe any regulations which may be necessary to apply 
     this Act in the case of any individual who changes retirement 
     coverage pursuant to an election described in paragraph (1).

[[Page 5266]]



     SEC. 5. IRREVOCABILITY OF ELECTIONS.

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

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

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

     SEC. 101. ELECTIONS.

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

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

       (a) Applicability.--This section shall apply in the case of 
     any employee affected by an error described in section 
     101(a)(1) who elects the option under section 101(b)(1).
       (b) Disposition of Contributions to the CSRDF.--
       (1) Employee contributions.--
       (A) Transfer to oasdi trust funds.--There shall be 
     transferred from the CSRDF to the OASDI trust funds an amount 
     equal to the amount of the OASDI employee tax that should 
     have been deducted and withheld from the Federal wages of the 
     employee for the period of erroneous coverage involved.
       (B) Rule if there are excess csrdf contributions.--
       (i) In general.--Any excess amount described in clause (ii) 
     that is attributable to an employee described in subsection 
     (a) shall be forfeited.
       (ii) Excess amount defined.--The excess amount described in 
     this clause is, in the case of an employee, the amount by 
     which--

       (I) that portion of the employee's lump-sum credit that is 
     attributable to the period of erroneous coverage involved, 
     exceeds (if at all)
       (II) the total of the amount described in subparagraph (A) 
     plus the amount that should have been deducted under section 
     8422 of title 5, United States Code, from the pay of the 
     employee for the period of erroneous coverage involved.

       (C) Rule if lump-sum credit is less than total employee 
     contributions to oasdi and csrdf that should have been 
     made.--
       (i) In general.--

       (I) Shortfall to be made up by agency.--If the amount 
     described in subparagraph (B)(ii)(I) is less than the total 
     amount described in subparagraph (B)(ii)(II), an amount equal 
     to the shortfall shall be made up (in such manner as the 
     Commissioner of Social Security shall prescribe) by the 
     agency in or under which the employee is then employed, out 
     of amounts otherwise available in the appropriation, fund, or 
     account from which any OASDI employer tax or contribution to 
     the CSRDF (as applicable) may be made, except as provided in 
     subclause (II) or clause (iii)(I).
       (II) Reduction for deposit due.--In any case in which a 
     deposit is required under clause (ii), the amount required to 
     be made up under subclause (I) shall be reduced by the amount 
     of the deposit so required (but not below zero).

       (ii) Deposit requirement.--

       (I) In general.--To the extent that the shortfall under 
     clause (i) is due to the any lump-sum credit received by the 
     employee (for which an appropriate deposit under section 
     8334(d)(1) of title 5, United States Code, has not been 
     made), the employee shall be required to repay an amount 
     equal to the amount of such deposit, except as provided in 
     clause (iii)(I).
       (II) Treatment as a debt due.--If an employee fails to pay 
     the amount required under subclause (I), that amount shall be 
     recoverable by the CSRDF under the same authorities 
     (including to waive a right of recovery) as described in 
     section 114(b)(2). For purposes of any exercise of authority 
     under the preceding sentence, the Director of the Office of 
     Personnel Management shall be considered the head of the 
     agency concerned.

       (iii) Special rules.--

       (I) Deposit for fers deductions not mandatory.--Nothing in 
     this subparagraph shall, in any situation described in clause 
     (ii), be considered to require any agency make-up payment (or 
     employee repayment) of any portion of the lump-sum credit 
     (beyond any amount necessary in order to permit the transfer 
     described in paragraph (1)(A)) which would be assignable to 
     amounts that should have been deducted under section 8422 of 
     title 5, United States Code, from pay of the employee 
     involved.
       (II) Authority to make fers deposit.--An employee under 
     this section who has received a lump-sum credit (described in 
     clause (ii)(I)) may not be credited, under chapter 84 of 
     title 5, United States Code, with any period of service to 
     which that lump-sum credit relates unless the employee 
     deposits into the CSRDF an amount equal to the percentage of 
     such employee's basic pay (for such period of service) that 
     should have been deducted under section 8422 of title 5, 
     United States Code.

       (D) Definition of lump-sum credit.--For purposes of this 
     paragraph, the term ``lump-sum credit'' has the meaning given 
     such term by section 8331 of title 5, United States Code, 
     except as the context may otherwise indicate.
       (E) Provisions relating to the application of this 
     paragraph in other situations.--
       (i) General authority.--To the extent necessary to permit 
     the operation of this paragraph in any situation covered by 
     any other provisions of this Act (which incorporate this 
     paragraph by reference), any necessary technical and 
     conforming amendments to this paragraph not otherwise 
     specifically provided for (such as citations to appropriate 
     provisions of law corresponding to provisions cited in this 
     paragraph) shall be made under regulations which the Office 
     of Personnel Management shall prescribe.
       (ii) Special rule.--

       (I) Deposits not precluded by fers restriction.--Nothing in 
     section 8424(a) of title 5, United States Code, shall, in any 
     situation covered by this Act, prevent the making of any 
     deposit (and crediting, for retirement purposes, of service 
     for the corresponding period of time) to the extent that the 
     deposit relates to the period of erroneous coverage involved.
       (II) Exception.--The preceding sentence shall not apply in 
     any situation in which the employee involved was erroneously 
     FERS covered, and remained FERS covered after the 
     rectification provided for under this Act.

       (2) Government contributions.--
       (A) Transfer to oasdi trust funds.--There shall be 
     transferred from the CSRDF to the OASDI trust funds the 
     excess of--
       (i) the amount of the OASDI employer tax that should have 
     been paid with respect to the employee for the period of 
     erroneous coverage involved, over
       (ii) the amount of the OASDI employer tax that may be 
     assessed under section 6501 of the Internal Revenue Code of 
     1986 in connection with such employee, determined in such 
     manner as the Secretary of the Treasury shall by regulation 
     prescribe.
       (B) Rule if csrdf contributions actually made are less than 
     total government contributions to oasdi and csrdf that should 
     have been made.--
       (i) In general.--If the total Government contributions to 
     the CSRDF that were made with respect to the employee for the 
     period of erroneous coverage involved are less than the 
     amount described in clause (ii), an amount equal to the 
     shortfall shall be made up (in such manner as the 
     Commissioner of Social Security shall prescribe) by the 
     agency in or under which the employee is then employed.
       (ii) Description of amount.--The amount described in this 
     clause is the total of--

       (I) the amount required to be transferred under 
     subparagraph (A), plus
       (II) the amount that should have been contributed by the 
     Government under section 8423 of title 5, United States Code, 
     for such employee with respect to such period.

       (iii) Source of payments.--Any amount required to be paid 
     by an agency under clause (i) shall be payable out of any 
     appropriation, fund, or account available to such agency for 
     making Government contributions to the CSRDF or the OASDI 
     trust funds (as appropriate).
       (c) Makeup Contributions to the Thrift Savings Fund.--
       (1) In general.--An employee to whom this section applies 
     is entitled to have contributed to the Thrift Savings Fund on 
     such

[[Page 5267]]

     employee's behalf, in addition to any regular employee or 
     Government contributions that would be permitted or required 
     for the year in which the contributions under this subsection 
     are made, an amount equal to the sum of--
       (A) the amount determined under paragraph (2) with respect 
     to such employee for the period of erroneous coverage 
     involved;
       (B) an amount equal to the total contributions that should 
     have been made for such employee under section 8432(c)(1) of 
     title 5, United States Code, for the period of erroneous 
     coverage involved;
       (C) an amount equal to the total contributions that should 
     have been made for such employee under section 8432(c)(2) of 
     title 5, United States Code, for the period of erroneous 
     coverage involved (taking into account both the amount 
     referred to in subparagraph (A) and any contributions to the 
     Thrift Savings Fund actually made by such employee with 
     respect to the period involved); and
       (D) an amount equal to lost earnings on the amounts 
     referred to in subparagraphs (A) through (C), determined in 
     accordance with paragraph (3).
       (2) Amount based on average percentage of pay contributed 
     by employees during period of erroneous coverage.--
       (A) In general.--The amount determined under this paragraph 
     with respect to an employee for a period of erroneous 
     coverage shall be equal to the amount of the contributions 
     such employee would have made if, during each calendar year 
     in such period, the employee had contributed the percentage 
     of such employee's basic pay for such year specified in 
     subparagraph (B) (determined disregarding any contributions 
     actually made by such employee with respect to the year 
     involved).
       (B) Percentage to be applied.--
       (i) In general.--The percentage to be applied under this 
     subparagraph in the case of any employee with respect to a 
     particular year is--

       (I) the average percentage of basic pay that was 
     contributed for such year under section 8432(a) of title 5, 
     United States Code, by full-time FERS covered employees who 
     contributed to the Thrift Savings Fund in such year and for 
     whom a salary rate is recorded (as of June 30 of such year) 
     in the central personnel data file maintained by the Office 
     of Personnel Management; or
       (II) if such average percentage for the year in question is 
     unavailable, the average percentage for the most recent year 
     prior to the year in question that is available.

       (ii) Percentage contributed.--For purposes of clause 
     (i)(I), the percentage of basic pay for each employee 
     included in the average shall be determined by dividing the 
     total employee contributions received into the Thrift Savings 
     Plan account of that employee during such year by the annual 
     salary rate for that employee as recorded in the central 
     personnel data file (referred to in clause (i)(I)) as of June 
     30 of such year.
       (C) Limitations.--In no event may the amount determined 
     under this paragraph for an individual with respect to a year 
     exceed the amount that, if added to the amount of the 
     contributions that were actually made by such individual to 
     the Thrift Savings Fund with respect to such year (if any), 
     would cause the total to exceed--
       (i) any limitation under section 415 or any other provision 
     of the Internal Revenue Code of 1986 that would have applied 
     to such employee with respect to such year; or
       (ii) any limitation under section 8432(a) or any other 
     provision of title 5, United States Code, that would have 
     applied to such employee with respect to such year.
       (3) Lost earnings.--
       (A) In general.--Lost earnings on any amounts referred to 
     in subparagraph (A), (B), or (C) of paragraph (1) shall, to 
     the extent those amounts are attributable to contributions 
     that should have been made with respect to a particular year, 
     be determined in the same way as if those amounts had in fact 
     been timely contributed and allocated among the TSP 
     investment funds in accordance with--
       (i) the investment fund election that was accepted by the 
     employing agency before the date the contribution should have 
     been made and that was still in effect as of that date; or
       (ii) if no such election was then in effect for the 
     employee, the investment fund election attributed to such 
     employee with respect to such year.
       (B) Investment fund election attributed.--For purposes of 
     subparagraph (A)(ii), the investment fund election attributed 
     to an employee with respect to a particular year is--
       (i) the average percentage allocation of TSP contributions 
     among the TSP investment funds from all sources, with respect 
     to that year, except that the investment fund election 
     attributed to contributions in years prior to 1991 shall be 
     the G Fund; or
       (ii) if such average percentage allocation for the year in 
     question is unavailable, the average percentage allocation 
     for the most recent year prior to the year in question that 
     is available.
       (C) Definition of investment fund election, etc.--For 
     purposes of this paragraph--
       (i) the term ``investment fund election'' means a choice by 
     a participant concerning how contributions to the Thrift 
     Savings Plan shall be allocated among the TSP investment 
     funds;
       (ii) the term ``participant'' means any person with an 
     account in the Thrift Savings Plan, or who would have an 
     account in the Thrift Savings Plan but for an employing 
     agency error (including an error as described in section 
     163(b)(2));
       (iii) the term ``TSP investment funds'' means the C Fund, 
     the F Fund, the G Fund, and any other investment fund in the 
     Thrift Savings Plan created after December 27, 1996; and
       (iv) the terms ``C Fund'', ``F Fund'', and ``G Fund'' refer 
     to the funds described in paragraphs (1), (3), and (4), 
     respectively, of section 8438(a) of title 5, United States 
     Code.
       (4) Makeup contribution to be made in a lump sum.--
       (A) In general.--Any amount to which an employee is 
     entitled under this subsection shall be paid promptly by the 
     agency in or under which the electing employee is (as of the 
     date of the election) employed, in a lump sum, upon 
     notification to such agency under subparagraph (B)(ii) as to 
     the amount due.
       (B) Board functions.--The regulations under paragraph (6) 
     shall include provisions under which--
       (i) each employing agency shall be required to determine 
     and notify the Federal Retirement Thrift Investment Board, in 
     a timely manner, as to any amounts under paragraph (1)(A)-(C) 
     owed by such agency; and
       (ii) the Board shall, based on the information it receives 
     from an agency under clause (i), determine lost earnings on 
     those amounts and promptly notify such agency as to the total 
     amounts due from it under this subsection.
       (5) Justices and judges; magistrates; etc.--The preceding 
     provisions of this subsection shall not apply in the case of 
     any employee who, pursuant to the election referred to in 
     subsection (a), becomes subject to section 8440a, 8440b, 
     8440c, or 8440d of title 5, United States Code.
       (6) Regulations.--The Executive Director of the Federal 
     Retirement Thrift Investment Board shall prescribe any 
     regulations necessary to carry out this subsection.

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

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

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

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

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

       (a) Applicability.--This section shall apply in the case of 
     any employee affected by an error described in paragraph (1) 
     or (2) of section 101(a) who (after having been corrected to 
     FERS coverage) elects the option under section 101(c)(1).
       (b) Disposition of Contributions to the CSRDF.--
       (1) In general.--The provisions of section 102(b) shall 
     apply in the case of an employee described in subsection (a), 
     subject to paragraph (2).
       (2) No transfers for amounts already paid into oasdi, 
     etc.--For purposes of paragraph (1), section 102(b) shall be 
     applied in conformance with the following:
       (A) No double payments into oasdi.--To the extent that the 
     appropriate OASDI employee or employer tax has already been 
     paid for the total period involved (or any portion thereof), 
     reduce the respective amounts required by paragraphs (1)(A) 
     and (2)(A)(i) of section 102(b) accordingly.
       (B) Appropriate percentages to be used in determining 
     employee and government contributions to csrdf.--Substitute 
     ``the relevant provisions of section 8334(k)'' for ``section 
     8422'' and ``section 8423''.
       (C) Appropriate lump-sum credit to be used.--The 
     appropriate lump-sum credit to be used under this subsection 
     shall be determined in accordance with regulations to be

[[Page 5268]]

     prescribed by the Office of Personnel Management.
       (D) Provisions to be applied with respect to the total 
     period involved.--Substitute ``total period involved (as 
     defined by section 105)'' for ``period of erroneous coverage 
     involved''.
       (c) Disposition of Excess TSP Contributions.--
       (1) Government contributions.--All Government contributions 
     made on behalf of the employee to the Thrift Savings Fund 
     that are attributable to the total period involved (including 
     any earnings thereon) shall be forfeited. For the purpose of 
     section 8437(d) of title 5, United States Code, amounts so 
     forfeited shall be treated as if they were amounts forfeited 
     under section 8432(g) of such title.
       (2) Employee contributions.--The election referred to in 
     subsection (a) shall not be taken into account for purposes 
     of any determination relating to the disposition of any 
     employee contributions to the Thrift Savings Fund, 
     attributable to the total period involved, that were in 
     excess of the maximum amount that would have been allowable 
     under applicable provisions of subchapter III of chapter 83 
     of title 5, United States Code (including any earnings 
     thereon).
       (d) Definition of Total Period Involved.--For purposes of 
     this section, the term ``total period involved'' means the 
     period beginning on the effective date of the retirement 
     coverage error involved and ending on the day before the date 
     on which the election described in subsection (a) is made.

     SEC. 106. EFFECT OF ELECTION TO REMAIN FERS COVERED AFTER 
                   HAVING BEEN CORRECTED TO FERS FROM CSRS-OFFSET 
                   (OR CSRS).

       (a) Applicability.--This section shall apply in the case of 
     any employee affected by an error described in paragraph (1) 
     or (2) of section 101(a) who (after having been corrected to 
     FERS coverage) elects the option under section 101(c)(2).
       (b) Disposition of Contributions to the CSRDF.--The 
     provisions of section 102(b) shall apply in the case of an 
     employee described in subsection (a), subject to the same 
     condition as set forth in section 105(b)(2)(A).
       (c) Makeup Contributions to the Thrift Savings Fund.--
     Section 102(c) shall apply, except that an agency shall 
     receive credit for any automatic or matching Government 
     contributions and any lost earnings paid by such agency as 
     part of any corrections process previously carried out with 
     respect to the employee involved.

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

     SEC. 111. ELECTIONS.

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

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

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

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

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

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

       (a) Applicability.--This section shall apply in the case of 
     any employee affected by an error described in section 
     111(a)(3) who elects the option under section 111(b)(1)(C).
       (b) Makeup Contributions to the CSRDF.--
       (1) In general.--Upon notification that an employee has 
     made an election under this section, the agency in or under 
     which such employee is employed shall promptly pay to the 
     CSRDF, in a lump sum, an amount equal to the sum of--
       (A) the amount that should have been deducted and withheld 
     from the pay of the employee for the period of erroneous 
     coverage involved under section 8334 of title 5, United 
     States Code; and
       (B) the Government contributions that should have been paid 
     under such section for the period of erroneous coverage 
     involved.
       (2) Agency to be reimbursed for certain amounts.--
       (A) In general.--The employee for whom the payment under 
     paragraph (1) is made shall repay to the agency (referred to 
     in paragraph (1)) an amount equal to the OASDI employee taxes 
     refunded or refundable to such employee for any portion of 
     the period of erroneous coverage involved (computed in such 
     manner as the Director of the Office of Personnel Management, 
     with the concurrence of the Secretary of the Treasury, shall 
     by regulation prescribe), not to exceed the amount described 
     in paragraph (1)(A).
       (B) Right of recovery; waiver.--If the employee fails to 
     repay the amount required under subparagraph (A), a sum equal 
     to the amount outstanding is recoverable by the Government 
     from the employee (or the employee's estate, if applicable) 
     by--

[[Page 5269]]

       (i) setoff against accrued pay, compensation, amount of 
     retirement credit, or another amount due the employee from 
     the Government; and
       (ii) such other method as is provided by law for the 
     recovery of amounts owing to the Government.

     The head of the agency concerned may waive, in whole or in 
     part, a right of recovery under this paragraph if it is shown 
     that recovery would be against equity and good conscience or 
     against the public interest.
       (C) Treatment of amounts repaid or recovered.--Any amount 
     repaid by, or recovered from, an individual (or an estate) 
     under this paragraph shall be credited to the appropriation 
     account from which the amount involved was originally paid.
       (c) Makeup Contributions to the Thrift Savings Fund.--In 
     the case of an employee described in subsection (a), makeup 
     contributions to the Thrift Savings Fund shall be made in the 
     same manner as described in section 113(c).

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

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

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

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

       (a) In General.--Except as provided in section 125, this 
     section shall apply in the case of any employee who should be 
     Social Security-Only covered but, as a result of a retirement 
     coverage error, is CSRS-Offset covered instead.
       (b) Automatic Exclusion From CSRS-Offset.--An employee 
     described in subsection (a) shall not, by reason of the 
     retirement coverage error described in subsection (a), be 
     eligible to be treated as an individual who is CSRS-Offset 
     covered.
       (c) Disposition of Employee Contributions to the CSRDF.--
     There shall be paid to the employee, from the CSRDF, the 
     lump-sum credit to which such employee would be entitled 
     under section 8342 of title 5, United States Code, to the 
     extent attributable to the period of erroneous coverage 
     involved.
       (d) Disposition of TSP Contributions.--In the case of an 
     employee described in subsection (a), section 121(d)(2) shall 
     apply.

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

       (a) In General.--Except as provided in section 125, this 
     section shall apply in the case of any employee who should be 
     Social Security-Only covered but, as a result of a retirement 
     coverage error, is CSRS covered instead.
       (b) Automatic Exclusion From CSRS.--An employee described 
     in subsection (a) shall not, by reason of the retirement 
     coverage error described in subsection (a), be eligible to be 
     treated as an individual who is CSRS covered.
       (c) Disposition of Contributions to the CSRDF.--
       (1) In general.--In the case of an employee described in 
     subsection (a), section 102(b) shall apply.
       (2) Irrelevant provisions to be disregarded.--For purposes 
     of paragraph (1), section 102(b) shall be applied 
     disregarding the provisions of paragraphs (1)(B)(ii)(II) (to 
     the extent they relate to amounts that should have been 
     deducted under section 8422 of title 5, United States Code) 
     and (2)(B)(ii)(II) thereof.
       (d) Disposition of TSP Contributions.--In the case of an 
     employee described in subsection (a), section 121(d)(2) shall 
     apply.

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

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

     SEC. 125. VESTED EMPLOYEES EXCEPTED FROM AUTOMATIC EXCLUSION.

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

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

     SEC. 131. ELECTIONS.

       (a) Applicability.--This subtitle shall apply in the case 
     of any employee who--
       (1) should be (or should have been) CSRS covered but, as a 
     result of a retirement coverage error, is (or was) FERS 
     covered instead; or
       (2) should be (or should have been) CSRS-Offset covered 
     but, as a result of a retirement coverage error, is (or was) 
     FERS covered instead.
       (b) Uncorrected Error.--If, at the time of making an 
     election under this section, the retirement coverage error 
     described in paragraph (1) or (2) of subsection (a) (as 
     applicable) has not been corrected, the employee affected by 
     such error may elect--

[[Page 5270]]

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

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

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

     The head of the agency concerned may waive, in whole or in 
     part, a right of recovery under this paragraph if it is shown 
     that recovery would be against equity and good conscience or 
     against the public interest.
       (C) Treatment of amounts repaid or recovered.--Any amount 
     repaid by, or recovered from, an individual (or an estate) 
     under this paragraph shall be credited to the appropriation, 
     fund, or account from which the amount involved was 
     originally paid.
       (c) Disposition of Excess TSP Contributions.--Section 
     105(c) shall apply in the case of an employee described in 
     subsection (a).

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

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

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

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

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

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

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

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

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

     SEC. 141. AUTOMATIC TRANSFER TO CSRS-OFFSET.

       (a) Applicability.--This subtitle shall apply in the case 
     of any employee who should be (or should have been) CSRS-
     Offset covered but, as a result of a retirement coverage 
     error, is (or was) CSRS covered instead.
       (b) Uncorrected Error.--If the error has not been 
     corrected, the employee shall be treated in the same way as 
     if such employee had instead been CSRS-Offset covered, 
     effective retroactive to the effective date of such error.
       (c) Corrected Error.--If the error has been corrected, the 
     correction shall (to the extent not already carried out) be 
     made effective retroactive to the effective date of such 
     error.

     SEC. 142. EFFECT OF TRANSFER.

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

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

     SEC. 151. ELECTIONS.

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

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

       (a) Applicability.--This section shall apply in the case of 
     any employee affected by an error described in section 151(a) 
     who elects the option available to such employee under 
     section 151(b)(1).
       (b) Makeup Contributions to the CSRDF.--
       (1) In general.--Upon notification that an employee has 
     made an election under this

[[Page 5271]]

     section, the agency in or under which such employee is 
     employed shall promptly pay to the CSRDF, in a lump sum, an 
     amount equal to the amount by which--
       (A) the amount that should have been deducted and withheld 
     from the pay of the employee for the period of erroneous 
     coverage involved under section 8334 of title 5, United 
     States Code (by virtue of being CSRS covered), exceeds
       (B) any amounts actually deducted and withheld from the pay 
     of the employee for the period of erroneous coverage involved 
     under such section (pursuant to CSRS-Offset coverage).
       (2) Agency to be reimbursed for certain amounts.--
       (A) In general.--The employee for whom the payment under 
     paragraph (1) is made shall repay to the agency (referred to 
     in paragraph (1)) an amount equal to the OASDI employee taxes 
     refunded or refundable to such employee for any portion of 
     the period of erroneous coverage involved (computed in such 
     manner as the Director of the Office of Personnel Management, 
     with the concurrence of the Commissioner of Social Security, 
     shall by regulation prescribe), not to exceed the amount 
     described in paragraph (1)(A).
       (B) Right of recovery; waiver.--If the employee fails to 
     repay the amount required under subparagraph (A), a sum equal 
     to the amount outstanding is recoverable by the Government 
     from the employee (or the employee's estate, if applicable) 
     by--
       (i) setoff against accrued pay, compensation, amount of 
     retirement credit, or another amount due the employee from 
     the Government; and
       (ii) such other method as is provided by law for the 
     recovery of amounts owing to the Government.

     The head of the agency concerned may waive, in whole or in 
     part, a right of recovery under this paragraph if it is shown 
     that recovery would be against equity and good conscience or 
     against the public interest.
       (C) Treatment of amounts repaid or recovered.--Any amount 
     repaid by, or recovered from, an individual (or an estate) 
     under this paragraph shall be credited to the appropriation, 
     fund, or account from which the amount involved was 
     originally paid.
       (3) Deposit to be based on amount of refund actually 
     received.--For purposes of applying sections 8334(d)(1) and 
     8339(i) of title 5, United States Code, in the case of an 
     employee described in subsection (a) who has received a 
     refund of deductions that are attributable to a period when 
     the employee was erroneously CSRS-Offset covered, nothing in 
     either of those sections shall be considered to require that, 
     in order to receive credit for that period as a CSRS-covered 
     employee, a deposit be made in excess of the refund actually 
     received for such period, plus interest.

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

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

   Subtitle G--Additional Provisions Relating to Government Agencies

     SEC. 161. REPAYMENT REQUIRED IN CERTAIN SITUATIONS.

       (a) In General.--An individual who previously received a 
     payment ordered by a court or provided as a settlement of 
     claim for losses resulting from a retirement coverage error 
     shall not be entitled to make an election under this Act 
     unless repayment of the amount so received by such individual 
     is waived in whole or in part by the Office of Personnel 
     Management, and any amount not waived is repaid.
       (b) Regulations.--Any repayment under this section shall be 
     made in accordance with regulations prescribed by the Office.

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

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

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

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

                      TITLE II--GENERAL PROVISIONS

     SEC. 201. IDENTIFICATION AND NOTIFICATION REQUIREMENTS.

       (a) In General.--The Office of Personnel Management shall 
     prescribe regulations under which Government agencies shall 
     take such measures as may be necessary to ensure that all 
     individuals who are (or have been) affected by a retirement 
     coverage error giving rise to any election or automatic 
     change in retirement coverage under this Act shall be 
     promptly identified and notified in accordance with this 
     section.
       (b) Matter To Be Included in Notice to Individuals.--Any 
     notice furnished under this section shall be made in writing 
     and shall include at least the following:
       (1) Description of error.--A description of the error 
     involved, including a clear and concise explanation as to why 
     the original retirement coverage determination was erroneous, 
     citations to (and a summary description of) the pertinent 
     provisions of law, and how that determination should instead 
     have been made.
       (2) Method for rectification.--How the error is to be 
     rectified under this Act, including whether rectification 
     will be achieved through an automatic change in retirement 
     coverage (and, if so, the time, form, and manner in which 
     that change will be effected) or an election.
       (3) Election procedures, etc.--If an election is provided 
     under this Act, all relevant information as to how such an 
     election may be made, the options available, the differences 
     between those respective options (as further specified in 
     succeeding provisions of this subsection), and the 
     consequences of failing to make a timely election.
       (4) Accrued benefits, etc.--With respect to the (or each) 
     retirement system by which the individual is then covered 
     (disregarding the Thrift Savings Plan), and to the extent 
     applicable:
       (A) A brief summary of any benefits accrued.
       (B) The amount of employee contributions made to date and 
     the effect of any applicable disposition rules relating 
     thereto (including provisions relating to excess amounts or 
     shortfalls).
       (C) The amount of any Government contributions made to date 
     and the effect of any applicable disposition rules relating 
     thereto (including provisions relating to excess amounts or 
     shortfalls).
       (5) Thrift savings fund.--With respect to the Thrift 
     Savings Fund, the balance that

[[Page 5272]]

     then is (or would be) credited to the individual's account 
     depending on the option chosen, with any such balance to be 
     shown both in the aggregate and broken down by--
       (A) individual contributions;
       (B) automatic (1 percent) Government contributions; and
       (C) matching Government contributions,
     including lost earnings on each and the extent to which any 
     makeup contributions or forfeitures would be involved.
       (6) OASDI benefits.--Such information regarding benefits 
     under title II of the Social Security Act as the Commissioner 
     of Social Security considers appropriate.
       (7) Other information.--Any other information that the 
     Director of the Office of Personnel Management may by 
     regulation prescribe after consultation with the Executive 
     Director of the Federal Retirement Thrift Investment Board 
     and such other agency heads as the Director considers 
     appropriate, including any appeal rights available to the 
     individual.
       (c) Comparisons.--Any amounts required to be included under 
     subsection (b)(4) shall, with respect to the respective 
     retirement systems involved, be determined--
       (1) as of the date the retirement coverage error was 
     corrected (if applicable);
       (2) as of the then most recent date for which those 
     benefits and amounts are ascertainable, assuming no change in 
     retirement coverage; and
       (3) as of the then most recent date for which those 
     benefits and amounts are ascertainable, assuming the 
     alternative option is chosen.
       (d) Past Errors.--All measures required under this section 
     shall, with respect to errors preceding the date specified in 
     section 204(e) (relating to the effective date for all 
     regulations prescribed under this Act), be completed no later 
     than December 31, 2001.

     SEC. 202. INDIVIDUAL APPEAL RIGHTS.

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

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

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

     SEC. 204. REGULATIONS.

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

     SEC. 205. ALL ELECTIONS TO BE APPROVED BY OPM.

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

     SEC. 206. TECHNICAL AND CONFORMING AMENDMENTS.

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

                      TITLE III--OTHER PROVISIONS

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

       (a) Foreign Service.--The Secretary of State shall issue 
     regulations to provide for the application of the provisions 
     of this Act in a like manner with respect to participants, 
     annuitants, or survivors under the Foreign Service Retirement 
     and Disability System or the Foreign Service Pension System 
     (as applicable), except that--
       (1) any individual aggrieved by a final determination shall 
     appeal such determination to the Foreign Service Grievance 
     Board instead of the Merit Systems Protection Board under 
     section 202; and
       (2) the Secretary of State shall perform the functions and 
     exercise the authority vested in the Office of Personnel 
     Management or the Director of the Office of Personnel 
     Management under this Act.
       (b) Central Intelligence Agency.--Sections 292 and 301 of 
     the Central Intelligence Agency Retirement Act (50 U.S.C. 
     2141 and 2151) shall apply with respect to this Act in the 
     same manner as if this Act were part of--
       (1) the Civil Service Retirement System, to the extent this 
     Act relates to the Civil Service Retirement System; and
       (2) the Federal Employees' Retirement System, to the extent 
     this Act relates to the Federal Employees' Retirement System.

     SEC. 302. PROVISIONS TO PREVENT REDUCTIONS IN FORCE AND ANY 
                   UNFUNDED LIABILITY IN THE CSRDF.

       (a) Provisions To Prevent Reductions in Force.--

[[Page 5273]]

       (1) Limitation.--An agency required to make any payments 
     under this Act may not conduct any reduction in force solely 
     by reason of any current or anticipated lack of funds 
     attributable to such payments.
       (2) Alternative required.--In the circumstance described in 
     paragraph (1), any cost savings that (but for this 
     subsection) would otherwise be sought through reductions in 
     force shall instead be achieved through attrition and 
     limitations on hiring.
       (b) Provisions to Prevent Unfunded Liability.--
       (1) In general.--For purposes of section 8348(f) of title 
     5, United States Code, any unfunded liability in the CSRDF 
     created as a result of an election made (or deemed to have 
     been made) under this Act, as determined by the Office of 
     Personnel Management, shall be considered a new benefit 
     payable from the CSRDF.
       (2) Coordination rule.--Paragraph (1) shall not apply to 
     the extent that subsection (h), (i), or (m) of section 8348 
     of title 5, United States Code, would otherwise apply.

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

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

  The SPEAKER pro tempore (Mr. Bass). Pursuant to the rule, the 
gentleman from Florida (Mr. Scarborough) and the gentleman from 
Maryland (Mr. Cummings) each will control 20 minutes.
  The Chair recognizes the gentleman from Florida (Mr. Scarborough).


                             General Leave

  Mr. SCARBOROUGH. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks on H.R. 416, as amended.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?
  There was no objection.
  Mr. SCARBOROUGH. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, the bill before the House, the Federal Retirement 
Coverage Corrections Act, is critically important to thousands of 
Federal employees. It has strong bipartisan support, and it is 
substantially similar to legislation the House passed in Congress last 
year. The Senate, however, did not act on that bill.
  I want to begin by thanking my distinguished ranking member of the 
Subcommittee on Civil Services, the gentleman from Maryland (Mr. 
Cummings), for his leadership on this very important issue. I know he 
is truly dedicated to bringing real relief to the victims of these 
errors.
  I also want to thank my good friend the gentleman from Florida (Mr. 
Mica), who brought this problem to light and sponsored the legislation 
which actually passed this House in the 105th Congress.
  I also commend the distinguished gentlewoman from Maryland (Mrs. 
Morella) and the distinguished gentlewoman from the District of 
Columbia (Ms. Norton) for their leadership on this very important 
issue.
  I also want to thank the distinguished chairman and ranking member of 
the Committee on Government Reform and Oversight, the gentleman from 
Indiana (Mr. Burton) and the gentleman from California (Mr. Waxman), 
for their support.
  Mr. Speaker, let me explain why it is so important for the House to 
again pass this bill. An estimated 1,000 Federal employees have been 
placed in the wrong retirement system because Federal agencies have 
made mistakes. The vast majority of these errors involve assignments to 
the Civil Service Retirement System or the Federal Employees Retirement 
System, generally referred to as FERS, but other agency mistakes 
wrongly excluded some employees from both retirement systems. Still 
others were enrolled in retirement when they did not qualify at all.
  Now, when these errors are discovered, and not all of them have yet 
been discovered, current law requires that agencies move employees into 
the proper retirement system. But unfortunately, the corrections 
themselves sometimes prove to be harmful, especially to employees who 
are moved from the Civil Service Retirement System into FERS.
  Now, unlike the Civil Service Retirement System, which is a stand-
alone system, FERS consists of three components: Social Security; the 
FERS defined benefit; and the Thrift Savings Plan, or TSP. Without 
adequate TSP accounts, employees will not have an adequate retirement 
income. But current correction procedures do not replenish the victim's 
TSP. As a result, unless this Congress acts again, the victims of these 
errors will unfairly bear the burden of their own government's 
mistakes.
  H.R. 416 provides a comprehensive solution to all of these problems. 
It rests on a few simple, straightforward principles. This bill 
recognizes that most victims of agency errors have a legal right to 
participate in one of the Federal retirement systems. Therefore, each 
of these victims should have the opportunity to elect placement in that 
system. They also have the right to receive a benefit that is 
comparable to what they would have earned in the absence of the Federal 
Government's error. Victims should also have the choice to remain in 
the system in which they were mistakenly placed.
  Mr. Speaker, every victim should have a realistic opportunity to the 
retirement correction that best addresses their unfortunate 
circumstances. Therefore, this legislation will provide relief that 
will make the relief whole.
  In fashioning the make-whole provisions in this bill, our 
subcommittee was guided by IRS requirements for private-sector 
employees facing comparable retirement errors. IRS procedures place the 
burden of employee make-whole relief on the employer, and not the 
employee.
  The importance of this make-whole relief cannot be overemphasized. 
Without it, the choices offered by this bill would be nothing but a 
cruel hoax for many employees. Many lower-income employees and those 
who have been in the wrong system for a lengthy period of time would be 
especially hard hit.
  This legislation also protects the integrity of Social Security Trust 
Funds. The amended bill before the House today does not, however, 
include certain amendments to the Social Security Act and tax 
provisions that were in the bill reported out by the Committee on 
Government Reform.

                              {time}  1300

  Although desirable, these provisions were removed to expedite passage 
of this legislation in the House and to also facilitate the bill's 
consideration in the Senate. I will continue to work with my colleagues 
in the Senate to restore these provisions in the final legislation.
  Mr. Speaker, H.R. 416 is critically important to Federal employees 
who have been victimized by these errors. I urge all Members to vote 
for it.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CUMMINGS. Mr. Speaker, I yield such time as he may consume to the 
distinguished gentleman from Maryland (Mr. Hoyer).
  Mr. HOYER. Mr. Speaker, I want to congratulate the gentleman from 
Maryland (Mr. Cummings) and thank the gentleman from Florida (Mr. 
Scarborough) who explained this bill. It is hard for me to thank Mr. 
Nesterczuk, but I want to do that--I say that facetiously--for his 
efforts on this legislation as well. This obviously is a position that 
our Federal employees found themselves in not through their own fault 
but through the administrative oversight of their employer. Obviously 
we ought to act to make them whole. I appreciate the action of the 
committee.
  Mr. CUMMINGS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I am pleased that the Subcommittee on Civil Service has 
moved quickly to schedule floor action on H.R. 416, the Federal 
Retirement Coverage Corrections Act. Though this bill passed the House 
during the 105th Congress, the Senate failed to act on it or its own 
bill, S. 1710, before adjournment. By moving expeditiously this year, 
we can get the bill through the House and have ample time left to work 
with the Senate to enact legislation that will bring relief to the 
hundreds of Federal employees who find

[[Page 5274]]

themselves in the wrong retirement system. I want to give special 
thanks to the gentleman from Florida (Mr. Scarborough), the chairman of 
our subcommittee, for making sure that this bill came to the floor as 
fast as it has and for the bipartisan manner of cooperation that we 
have experienced.
  This is a complex bill that up to now has included essential Social 
Security and tax provisions that fall within the jurisdiction of other 
committees. Unfortunately, these provisions cannot go forward at this 
time. Nonetheless, the gentleman from Florida and I have elected to 
bring the core of the bill to the floor now and will continue to work 
with our colleagues on the Committee on Ways and Means and the Senate 
Finance and Governmental Affairs Committees to iron out the differences 
between us.
  Few things in life are more important to a working person than having 
an adequate and secure retirement plan in place to provide for their 
future or that of their loved ones. When a worker's retirement security 
is jeopardized by an employer's administrative error, tremendous 
emotional and financial pain can result, unless a remedy is available 
that assures its prompt and fair correction and avoids economic harm.
  The Office of Personnel Management has a web site that explains the 
rationale for the Federal Government's establishment of the Civil 
Service Retirement System. It states, and I quote, ``A strong 
retirement system is a significant part of the attraction to work for 
an employer, and the Civil Service Retirement System has allowed the 
Federal Government to attract and retain a professional and dedicated 
workforce.''
  The web site also conveys the words of a chairman of the former Civil 
Service Commission who noted that our retirement system should operate, 
and I quote, ``for the mutual benefit of the government and employees, 
contributing more effectively than ever to good government, to good 
working conditions, and to happy retirements.''
  Employees caught in the wrong retirement system are far from happy. 
In 1997, the Subcommittee on Civil Service heard the testimony of four 
Federal employees who had been the victims of enrollment errors made by 
their employing agencies. In each case, the employee was initially 
placed in the Civil Service Retirement System, then years later 
informed that they should have been placed in the Federal Employees 
Retirement System. Afforded no recourse or options, these employees 
were dumped into FERS and confronted with the need to make thousands of 
dollars of retroactive payments into a newly established Thrift Savings 
Account.
  I have seen the hurt and the pain this problem has caused. Let me put 
a real face on the issue for my colleagues. The Federal Times, a trade 
newspaper for Federal employees, recently featured Michael Garcia, 
acting chief information officer at the Minority Business Development 
Agency. Mr. Garcia's story provides a clear example of how your life 
can change when you are placed in the wrong retirement system. Mr. 
Garcia planned to retire in July 2000 at the age of 57. But like an 
estimated 18,000 other employees, his plans to retire are now uncertain 
because of a mistake his former agency made when it hired him 14 years 
ago. Garcia's former agency placed him in FERS when it opened in 1987. 
Garcia should have been placed in the older of the two retirement 
systems, CSRS. When the error was detected in 1993, he was moved to 
FERS. FERS participants can invest up to 10 percent of their salaries 
in the thrift plan, which includes a stock fund. The government matches 
their contributions up to 5 percent. Under current law, once an error 
is discovered, agencies are not allowed to leave employees in the 
system they thought they were in. Many who were moved to FERS late into 
their careers cannot afford to make up their missed investments with a 
lump sum payment. Garcia had been willing to borrow money to pay a lump 
sum. He said that he could never make up for the lost years with 
incremental catch-up contributions.
  In the article, Mr. Garcia is quoted as saying, ``They were 
negligent. I'm just fed up.'' His agency was negligent, and he should 
be fed up. Why should he have to borrow money for a mistake not of his 
own making?
  Mr. Speaker, I reserve the balance of my time.
  Mr. SCARBOROUGH. Mr. Speaker, I yield myself 3 minutes.
  I want to thank the ranking member again. The gentleman from Maryland 
(Mr. Cummings) is obviously gifted and a very articulate spokesman for 
the issues that are important to him. I certainly have enjoyed working 
with him on this issue and other issues even in the last session like 
the Hunter-Scott bill and certainly expect a very productive session 
this year.
  I wanted to also, like the gentleman from Maryland, cite a few real-
life examples of how the inequities of the current law inflicts damage 
upon Federal employees and their ability to provide for themselves, for 
their retirement and even their children's future.
  I want to start by citing one example. It is a situation described by 
the American Foreign Service Association. For about 10 years, a foreign 
service officer was erroneously enrolled in the wrong system. Now, when 
the error was discovered, he was told that he was going to have to 
contribute between $65,000 and $70,000 in catch-up payments to his TSP 
account. In addition to that retroactive contribution, they also said 
he would also have to keep up current contributions to his TSP. Mr. 
Speaker, few Federal employees, few Americans, could afford to meet 
those kind of burdens without great sacrifices. I think most of us 
would be forced actually to be put in a position where we would have to 
choose whether we were going to contribute to our own retirement or 
take care of such things as our children's education. It is a choice we 
should not put our Federal employees in.
  The experience of two workers at the Portsmouth Naval Shipyard in 
Maine also demonstrate the difficulties faced by thousands of other 
employees. One example is a 60-year-old who had been planning to retire 
at the age of 62. He learned that he owed back Social Security taxes of 
$10,000 and would have to contribute $600 a month to TSP for the rest 
of his working career, because the agency placed him in the wrong 
Federal retirement system. Now, because of the agency's mistake, he was 
told he would also have to work until the age of 65. The other example 
is an employee who is in his mid 40s and owes more than $10,000 in back 
Social Security taxes. Only by jeopardizing his ability to pay for his 
son's college education will he be put in a position to establish an 
adequate TSP account.
  Mr. Speaker, forcing innocent victims of the Federal Government's 
mistake to make a Hobson's choice between their own retirement security 
and their children's education is intolerable. Yet that is what is 
happening today and it is what will continue to happen unless Congress 
includes adequate make-whole relief. Without such make-whole relief, 
most employees will have no real choice at all. They will be forced 
into one system or another. That is why the make-whole relief in H.R. 
416 is so imperative to this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CUMMINGS. Mr. Speaker, I was very pleased to hear the gentleman 
from Florida put a face on the issue because I think that is very, very 
important that we do that. It is interesting that he cited a story from 
Maine.
  Mr. Speaker, I yield 3 minutes to the distinguished gentleman from 
Maine (Mr. Allen), one of the hardest working members of our 
subcommittee.
  Mr. ALLEN. I thank the gentleman for yielding me this time.
  Mr. Speaker, I rise in support of H.R. 416, the Federal Retirement 
Coverage Corrections Act. I want to commend both the chair of the 
subcommittee the gentleman from Florida (Mr. Scarborough) and the 
ranking member the gentleman from Maryland (Mr. Cummings) for their 
determination to bring this bill to the floor at this time. The bill 
would provide relief to Federal employees who through no fault of their 
own were placed in the wrong Federal retirement plan. Some Federal

[[Page 5275]]

agencies mistakenly placed thousands of Federal employees into the 
Civil Service Retirement System, or CSRS, when the employees should 
have been placed in the Federal Employees Retirement System, FERS. 
Often this error has not been discovered until an employee is on the 
verge of retirement. Once discovered, the employee faces a severe 
erosion of his retirement security.
  I am going to come back to the two employees that the gentleman from 
Florida mentioned who work at the Portsmouth Naval Shipyard in Kittery, 
Maine. They were very surprised to discover this error, and they face a 
serious deterioration of their retirement reserves unless Congress 
passes this bill. These two employees were placed in CSRS 14 years ago 
but only recently did they discover that they should have been placed 
in FERS. Once they learned that, they were then required involuntarily 
to switch from FERS to CSRS, and, since they had not been making their 
Social Security payments, all their CSRS resources were transferred to 
Social Security to make up for what they would otherwise have been 
paying in FICA taxes. For one of the men, his $30,000 CSRS investment 
was all used to pay so-called back FICA taxes. Furthermore, these 
employees will likely have to pay FICA tax not withheld for overtime, 
awards and other compensation for which they had legitimately not paid 
FICA tax because they were in CSRS which did not require it. This may 
total another $10,000 to $15,000.
  Finally, the FERS plan consists of three components, Social Security, 
a small defined benefit plan, and a Thrift Savings Plan contribution 
plan. Consequently, these employees will need to make substantial 
catch-up contributions to the Thrift Savings Plan if they want any sort 
of nest egg for retirement. These heavy TSP contributions and FICA tax 
payments quickly consume the paychecks of these employees. As a result, 
one employee will delay his retirement by 3 years and the other may 
have trouble financing his child's college education.

                              {time}  1315

  Mr. Speaker, H.R. 416 will offer vital relief to these employees by 
making the agency responsible for their mistakes. The agency made the 
mistakes; the agency should be responsible. The bill requires the 
agency to make up both the agency's and the employee's lost 
contributions to the TSP.
  These hard-working employees do not deserve to have their retirement 
plans wiped out by a employer's mistake. H.R. 416 offers relief for a 
problem they did not cause.
  I want to thank both the gentleman from Florida (Mr. Scarborough) and 
the gentleman from Maryland (Mr. Cummings) for their work on this and 
leadership on this issue, and I urge my colleagues to support the bill.
  Mr. CUMMINGS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, a little earlier I mentioned Mr. Garcia, and Mr. Garcia 
had been placed, of course, in the wrong retirement system, and like 
numerous other federal employees, he had been forced to rearrange his 
life and his financial plans to address this problem.
  Many without financial means have had to work beyond their retirement 
dates to build a full annuity. The Federal Retirement System was 
created to prevent just that, employees working into what should be 
their golden years, the years they rest, the years they travel, the 
years they take time out to spend with their grandchildren. The Federal 
Retirement Coverage Corrections Act would essentially permit those who 
have been the victims of an enrollment error to remain in the 
retirement system they were mistakenly placed in or to be covered by 
the system they should have been in. It would also hold the government 
financially responsible for making whole an effected employee's thrift 
savings account. Together these provisions would end the harm now being 
done by the existing rules governing the correction of these errors. To 
address my concern that the unanticipated costs of making an employee 
whole might cause agencies to rif its employees, I included a provision 
in the bill requiring that offsetting savings be realized through 
attrition and limitations on hiring.
  There has been much debate over the cost to the government of making 
effected employees whole. The IRS Code requires that private sector 
employers bear the cost of correcting retirement errors. The Senate 
bill leaves it to the victimized employee to come up with the money to 
make themselves whole. That simply is not right. Our approach mirrors 
the private sector and is the fairest way to handle these problems. The 
longer it takes to enact this legislation, the more it is going to 
cause all effected parties. Federal employees who are in the wrong 
retirement system should not have to spend another year worrying about 
a problem that their agency created for them.
  Mr. Speaker, I am committed to working with the Senate to reach 
agreement on the legislation that addresses all parties' concerns. 
These employees are waiting for us to act. Let us do so today, and 
again I want to thank the gentleman from Florida (Mr. Scarborough) and 
all the members of our subcommittee, our chairman, the gentleman from 
Indiana (Mr. Burton), our ranking member of our full committee, the 
gentleman from California (Mr. Waxman).
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  Mr. SCARBOROUGH. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, thousands of Federal employees, retirees and their 
families whose lives have been disrupted by bureaucratic errors are 
going to look again to this Congress to fix this problem. Many of them 
have suffered emotionally as well as financially, and I think it is 
time that we enact meaningful and fair relief during this Congress.
  Mr. Speaker, H.R. 416 is strongly supported by the following employee 
organizations:
  The American Federation of Government Employees,
  The American Foreign Service Association,
  The Federal Managers Association,
  The Federally Employed Women,
  The International Brotherhood of Boilermakers,
  The National Association of Government Employees,
  The National Federation of Federal Employees,
  The Seniors Executives Association, and
  The Social Security Managers' Association.
  This is a bill that needs to pass in the best interests of every 
single Federal employee. It is the right thing to do, it is fair, and 
it is time that this House and, hopefully, this Senate, will step 
forward and do what is right.
  The SPEAKER pro tempore (Mr. Bass). The question is on the motion 
offered by the gentleman from Florida (Mr. Scarborough) that the House 
suspend the rules and pass the bill, H.R. 416, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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