[Congressional Record (Bound Edition), Volume 155 (2009), Part 12]
[House]
[Pages 16065-16072]
[From the U.S. Government Publishing Office, www.gpo.gov]




              DISABLED MILITARY RETIREE RELIEF ACT OF 2009

  Mr. SKELTON. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 2990) to provide special pays and allowances to certain 
members of the Armed Forces, expand concurrent receipt of military 
retirement and VA disability benefits to disabled military retirees, 
and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2990

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Disabled Military Retiree 
     Relief Act of 2009''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

TITLE I--COMPENSATION AND BENEFITS FOR MEMBERS OF THE ARMED FORCES AND 
                           MILITARY RETIREES

           Subtitle A--Bonuses and Special and Incentive Pays

Sec. 101. One-year extension of certain bonus and special pay 
              authorities for reserve forces.
Sec. 102. One-year extension of certain bonus and special pay 
              authorities for health care professionals.
Sec. 103. One-year extension of special pay and bonus authorities for 
              nuclear officers.
Sec. 104. One-year extension of authorities relating to title 37 
              consolidated special pay, incentive pay, and bonus 
              authorities.
Sec. 105. One-year extension of authorities relating to payment of 
              other title 37 bonuses and special pay.
Sec. 106. One-year extension of authorities relating to payment of 
              referral bonuses.
Sec. 107. Technical corrections and conforming amendments to reconcile 
              conflicting amendments regarding continued payment of 
              bonuses and similar benefits for certain members.

                    Subtitle B--Retired Pay Benefits

Sec. 111. Recomputation of retired pay and adjustment of retired grade 
              of Reserve retirees to reflect service after retirement.
Sec. 112. Election to receive retired pay for non-regular service upon 
              retirement for service in an active reserve status 
              performed after attaining eligibility for regular 
              retirement.

 Subtitle C--Concurrent Receipt of Military Retired Pay and Veterans' 
                        Disability Compensation

Sec. 121. One-year expansion of eligibility for concurrent receipt of 
              military retired pay and veterans' disability 
              compensation to include all chapter 61 disability 
              retirees regardless of disability rating percentage or 
              years of service.

                  TITLE II--FEDERAL EMPLOYEE BENEFITS

                     Subtitle A--General Provisions

Sec. 201. Credit for unused sick leave.
Sec. 202. Limited expansion of the class of individuals eligible to 
              receive an actuarially reduced annuity under the civil 
              service retirement system.
Sec. 203. Computation of certain annuities based on part-time service.
Sec. 204. Authority to deposit refunds under FERS.
Sec. 205. Retirement credit for service of certain employees 
              transferred from District of Columbia service to Federal 
              service.

        Subtitle B--Non-Foreign Area Retirement Equity Assurance

Sec. 211. Short title.
Sec. 212. Extension of Locality Pay.
Sec. 213. Adjustment of special rates.
Sec. 214.  Transition schedule for locality-based comparability 
              payments.
Sec. 215. Savings provision.
Sec. 216. Application to other eligible employees.
Sec. 217. Election of additional basic pay for annuity computation by 
              employees.
Sec. 218. Regulations.
Sec. 219. Effective dates.

   TITLE III--DEEPWATER OIL AND GAS RESEARCH AND DEVELOPMENT FUNDING 
                             SOURCE REPEAL

Sec. 301. Repeal.

TITLE I--COMPENSATION AND BENEFITS FOR MEMBERS OF THE ARMED FORCES AND 
                           MILITARY RETIREES

           Subtitle A--Bonuses and Special and Incentive Pays

     SEC. 101. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
                   AUTHORITIES FOR RESERVE FORCES.

        The following sections of title 37, United States Code, 
     are amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010'':
       (1) Section 308b(g), relating to Selected Reserve 
     reenlistment bonus.
       (2) Section 308c(i), relating to Selected Reserve 
     affiliation or enlistment bonus.
       (3) Section 308d(c), relating to special pay for enlisted 
     members assigned to certain high-priority units.
       (4) Section 308g(f)(2), relating to Ready Reserve 
     enlistment bonus for persons without prior service.
       (5) Section 308h(e), relating to Ready Reserve enlistment 
     and reenlistment bonus for persons with prior service.
       (6) Section 308i(f), relating to Selected Reserve 
     enlistment and reenlistment bonus for persons with prior 
     service.
       (7) Section 910(g), relating to income replacement payments 
     for reserve component

[[Page 16066]]

     members experiencing extended and frequent mobilization for 
     active duty service.

     SEC. 102. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
                   AUTHORITIES FOR HEALTH CARE PROFESSIONALS.

       (a) Title 10 Authorities.--The following sections of title 
     10, United States Code, are amended by striking ``December 
     31, 2009'' and inserting ``December 31, 2010'':
       (1) Section 2130a(a)(1), relating to nurse officer 
     candidate accession program.
       (2) Section 16302(d), relating to repayment of education 
     loans for certain health professionals who serve in the 
     Selected Reserve.
       (b) Title 37 Authorities.--The following sections of title 
     37, United States Code, are amended by striking ``December 
     31, 2009'' and inserting ``December 31, 2010'':
       (1) Section 302c-1(f), relating to accession and retention 
     bonuses for psychologists.
       (2) Section 302d(a)(1), relating to accession bonus for 
     registered nurses.
       (3) Section 302e(a)(1), relating to incentive special pay 
     for nurse anesthetists.
       (4) Section 302g(e), relating to special pay for Selected 
     Reserve health professionals in critically short wartime 
     specialties.
       (5) Section 302h(a)(1), relating to accession bonus for 
     dental officers.
       (6) Section 302j(a), relating to accession bonus for 
     pharmacy officers.
       (7) Section 302k(f), relating to accession bonus for 
     medical officers in critically short wartime specialties.
       (8) Section 302l(g), relating to accession bonus for dental 
     specialist officers in critically short wartime specialties.

     SEC. 103. ONE-YEAR EXTENSION OF SPECIAL PAY AND BONUS 
                   AUTHORITIES FOR NUCLEAR OFFICERS.

        The following sections of title 37, United States Code, 
     are amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010'':
       (1) Section 312(f), relating to special pay for nuclear-
     qualified officers extending period of active service.
       (2) Section 312b(c), relating to nuclear career accession 
     bonus.
       (3) Section 312c(d), relating to nuclear career annual 
     incentive bonus.

     SEC. 104. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO TITLE 
                   37 CONSOLIDATED SPECIAL PAY, INCENTIVE PAY, AND 
                   BONUS AUTHORITIES.

        The following sections of title 37, United States Code, 
     are amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010'':
       (1) Section 331(h), relating to general bonus authority for 
     enlisted members.
       (2) Section 332(g), relating to general bonus authority for 
     officers.
       (3) Section 333(i), relating to special bonus and incentive 
     pay authorities for nuclear officers.
       (4) Section 334(i), relating to special aviation incentive 
     pay and bonus authorities for officers.
       (5) Section 335(k), relating to special bonus and incentive 
     pay authorities for officers in health professions.
       (6) Section 351(i), relating to hazardous duty pay.
       (7) Section 352(g), relating to assignment pay or special 
     duty pay.
       (8) Section 353(j), relating to skill incentive pay or 
     proficiency bonus.
       (9) Section 355(i), relating to retention incentives for 
     members qualified in critical military skills or assigned to 
     high priority units.

     SEC. 105. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO 
                   PAYMENT OF OTHER TITLE 37 BONUSES AND SPECIAL 
                   PAY.

        The following sections of chapter 5 of title 37, United 
     States Code, are amended by striking ``December 31, 2009'' 
     and inserting ``December 31, 2010'':
       (1) Section 301b(a), relating to aviation officer retention 
     bonus.
       (2) Section 307a(g), relating to assignment incentive pay.
       (3) Section 308(g), relating to reenlistment bonus for 
     active members.
       (4) Section 309(e), relating to enlistment bonus.
       (5) Section 324(g), relating to accession bonus for new 
     officers in critical skills.
       (6) Section 326(g), relating to incentive bonus for 
     conversion to military occupational specialty to ease 
     personnel shortage.
       (7) Section 327(h), relating to incentive bonus for 
     transfer between armed forces.
       (8) Section 330(f), relating to accession bonus for officer 
     candidates.

     SEC. 106. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO 
                   PAYMENT OF REFERRAL BONUSES.

        The following sections of title 10, United States Code, 
     are amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010'':
       (1) Section 1030(i), relating to health professions 
     referral bonus.
       (2) Section 3252(h), relating to Army referral bonus.

     SEC. 107. TECHNICAL CORRECTIONS AND CONFORMING AMENDMENTS TO 
                   RECONCILE CONFLICTING AMENDMENTS REGARDING 
                   CONTINUED PAYMENT OF BONUSES AND SIMILAR 
                   BENEFITS FOR CERTAIN MEMBERS.

       (a) Technical Corrections to Reconcile Conflicting 
     Amendments.--Section 303a(e) of title 37, United States Code, 
     is amended--
       (1) in paragraph (1)(A), by striking ``paragraph (2)'' and 
     inserting ``paragraphs (2) and (3)'';
       (2) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively;
       (3) in paragraph (5), as so redesignated, by striking 
     ``paragraph (3)(B)'' and inserting ``paragraph (4)(B)'';
       (4) by redesignating paragraph (2), as added by section 
     651(b) of the Duncan Hunter National Defense Authorization 
     Act for Fiscal Year 2009 (Public Law 110-417; 122 Stat. 
     4495), as paragraph (3); and
       (5) by redesignating the second subparagraph (B) of 
     paragraph (1), originally added as paragraph (2) by section 
     2(a)(3) of the Hubbard Act (Public Law 110-317; 122 Stat. 
     3526) and erroneously designated as subparagraph (B) by 
     section 651(a)(3) of the Duncan Hunter National Defense 
     Authorization Act for Fiscal Year 2009 (Public Law 110-417; 
     122 Stat. 4495), as paragraph (2).
       (b) Inclusion of Hubbard Act Amendment in Consolidated 
     Special Pay and Bonus Authorities.--Section 373(b) of such 
     title is amended--
       (1) in paragraph (2), by striking the paragraph heading and 
     inserting ``Special rule for deceased and disabled members.--
     ''; and
       (2) by adding at the end the following new paragraph:
       ``(3) Special rule for members who receive sole 
     survivorship discharge.--(A) If a member of the uniformed 
     services receives a sole survivorship discharge, the 
     Secretary concerned--
       ``(i) shall not require repayment by the member of the 
     unearned portion of any bonus, incentive pay, or similar 
     benefit previously paid to the member; and
       ``(ii) may grant an exception to the requirement to 
     terminate the payment of any unpaid amounts of a bonus, 
     incentive pay, or similar benefit if the Secretary concerned 
     determines that termination of the payment of the unpaid 
     amounts would be contrary to a personnel policy or management 
     objective, would be against equity and good conscience, or 
     would be contrary to the best interests of the United States.
       ``(B) In this paragraph, the term `sole survivorship 
     discharge' means the separation of a member from the Armed 
     Forces, at the request of the member, pursuant to the 
     Department of Defense policy permitting the early separation 
     of a member who is the only surviving child in a family in 
     which--
       ``(i) the father or mother or one or more siblings--
       ``(I) served in the Armed Forces; and
       ``(II) was killed, died as a result of wounds, accident, or 
     disease, is in a captured or missing in action status, or is 
     permanently 100 percent disabled or hospitalized on a 
     continuing basis (and is not employed gainfully because of 
     the disability or hospitalization); and
       ``(ii) the death, status, or disability did not result from 
     the intentional misconduct or willful neglect of the parent 
     or sibling and was not incurred during a period of 
     unauthorized absence.''.

                    Subtitle B--Retired Pay Benefits

     SEC. 111. RECOMPUTATION OF RETIRED PAY AND ADJUSTMENT OF 
                   RETIRED GRADE OF RESERVE RETIREES TO REFLECT 
                   SERVICE AFTER RETIREMENT.

       (a) Recomputation of Retired Pay.--Section 12739 of title 
     10, United States Code, is amended by adding at the end the 
     following new subsection:
       ``(e)(1) If a member of the Retired Reserve is recalled to 
     an active status in the Selected Reserve of the Ready Reserve 
     under section 10145(d) of this title and completes not less 
     than two years of service in such active status, the member 
     is entitled to the recomputation under this section of the 
     retired pay of the member.
       ``(2) The Secretary concerned may reduce the two-year 
     service requirement specified in paragraph (1) in the case of 
     a member who--
       ``(A) is recalled to serve in a position of adjutant 
     general required under section 314 of title 32 or in a 
     position of assistant adjutant general subordinate to such a 
     position of adjutant general;
       ``(B) completes at least six months of service in such 
     position; and
       ``(C) fails to complete the minimum two years of service 
     solely because the appointment of the member to such position 
     is terminated or vacated as described in section 324(b) of 
     title 32.''.
       (b) Adjustment of Retired Grade.--Section 12771 of such 
     title is amended--
       (1) by striking ``Unless'' and inserting ``(a) Grade on 
     Transfer.--Unless''; and
       (2) by adding at the end the following new subsection:
       ``(b) Effect of Subsequent Recall to Active Status.--(1) If 
     a member of the Retired Reserve who is a commissioned officer 
     is recalled to an active status in the Selected Reserve of 
     the Ready Reserve under section 10145(d) of this title and 
     completes not less than two years of service in such active 
     status, the member is entitled to an adjustment in the 
     retired grade of the member in the manner provided in section 
     1370(d) of this title.

[[Page 16067]]

       ``(2) The Secretary concerned may reduce the two-year 
     service requirement specified in paragraph (1) in the case of 
     a member who--
       ``(A) is recalled to serve in a position of adjutant 
     general required under section 314 of title 32 or in a 
     position of assistant adjutant general subordinate to such a 
     position of adjutant general;
       ``(B) completes at least six months of service in such 
     position; and
       ``(C) fails to complete the minimum two years of service 
     solely because the appointment of the member to such position 
     is terminated or vacated as described in section 324(b) of 
     title 32.''.
       (c) Retroactive Applicability.--The amendments made by this 
     section shall take effect as of January 1, 2008.

     SEC. 112. ELECTION TO RECEIVE RETIRED PAY FOR NON-REGULAR 
                   SERVICE UPON RETIREMENT FOR SERVICE IN AN 
                   ACTIVE RESERVE STATUS PERFORMED AFTER ATTAINING 
                   ELIGIBILITY FOR REGULAR RETIREMENT.

       (a) Election Authority; Requirements.--Subsection (a) of 
     section 12741 of title 10, United States Code, is amended to 
     read as follows:
       ``(a) Authority to Elect to Receive Reserve Retired Pay.--
     (1) Notwithstanding the requirement in paragraph (4) of 
     section 12731(a) of this title that a person may not receive 
     retired pay under this chapter when the person is entitled, 
     under any other provision of law, to retired pay or retainer 
     pay, a person may elect to receive retired pay under this 
     chapter, instead of receiving retired or retainer pay under 
     chapter 65, 367, 571, or 867 of this title, if the person--
       ``(A) satisfies the requirements specified in paragraphs 
     (1) and (2) of such section for entitlement to retired pay 
     under this chapter;
       ``(B) served in an active status in the Selected Reserve of 
     the Ready Reserve after becoming eligible for retirement 
     under chapter 65, 367, 571, or 867 of this title (without 
     regard to whether the person actually retired or received 
     retired or retainer pay under one of those chapters); and
       ``(C) completed not less than two years of satisfactory 
     service (as determined by the Secretary concerned) in such 
     active status (excluding any period of active service).
       ``(2) The Secretary concerned may reduce the minimum two-
     year service requirement specified in paragraph (1)(C) in the 
     case of a person who--
       ``(A) completed at least six months of service in a 
     position of adjutant general required under section 314 of 
     title 32 or in a position of assistant adjutant general 
     subordinate to such a position of adjutant general; and
       ``(B) failed to complete the minimum years of service 
     solely because the appointment of the person to such position 
     was terminated or vacated as described in section 324(b) of 
     title 32.''.
       (b) Actions to Effectuate Election.--Subsection (b) of such 
     section is amended by striking paragraph (1) and inserting 
     the following new paragraph:
       ``(1) terminate the eligibility of the person to retire 
     under chapter 65, 367, 571, or 867 of this title, if the 
     person is not already retired under one of those chapters, 
     and terminate entitlement of the person to retired or 
     retainer pay under one of those chapters, if the person was 
     already receiving retired or retainer pay under one of those 
     chapters; and''.
       (c) Conforming Amendment to Reflect New Variable Age 
     Requirement for Retirement.--Subsection (d) of such section 
     is amended--
       (1) in paragraph (1), by striking ``attains 60 years of 
     age'' and inserting ``attains the eligibility age applicable 
     to the person under section 12731(f) of this title''; and
       (2) in paragraph (2)(A), by striking ``attains 60 years of 
     age'' and inserting ``attains the eligibility age applicable 
     to the person under such section''.
       (d) Clerical Amendments.--
       (1) Section heading.--The heading for section 12741 of such 
     title is amended to read as follows:

     ``Sec. 12741. Retirement for service in an active status 
       performed in the Selected Reserve of the Ready Reserve 
       after eligibility for regular retirement''.

       (2) Table of sections.--The table of sections at the 
     beginning of chapter 1223 of such title is amended by 
     striking the item relating to section 12741 and inserting the 
     following new item:

``12741. Retirement for service in an active status performed in the 
              Selected Reserve of the Ready Reserve after eligibility 
              for regular retirement.''.

       (e) Retroactive Applicability.--The amendments made by this 
     section shall take effect as of January 1, 2008.

 Subtitle C--Concurrent Receipt of Military Retired Pay and Veterans' 
                        Disability Compensation

     SEC. 121. ONE-YEAR EXPANSION OF ELIGIBILITY FOR CONCURRENT 
                   RECEIPT OF MILITARY RETIRED PAY AND VETERANS' 
                   DISABILITY COMPENSATION TO INCLUDE ALL CHAPTER 
                   61 DISABILITY RETIREES REGARDLESS OF DISABILITY 
                   RATING PERCENTAGE OR YEARS OF SERVICE.

       (a) Phased Expansion Concurrent Receipt.--Subsection (a) of 
     section 1414 of title 10, United States Code, is amended to 
     read as follows:
       ``(a) Payment of Both Retired Pay and Disability 
     Compensation.--
       ``(1) Payment of both required.--
       ``(A) In general.--Subject to subsection (b), a member or 
     former member of the uniformed services who is entitled for 
     any month to retired pay and who is also entitled for that 
     month to veterans' disability compensation for a qualifying 
     service-connected disability (in this section referred to as 
     a `qualified retiree') is entitled to be paid both for that 
     month without regard to sections 5304 and 5305 of title 38.
       ``(B) Applicability of full concurrent receipt phase-in 
     requirement.--During the period beginning on January 1, 2004, 
     and ending on December 31, 2013, payment of retired pay to a 
     qualified retiree is subject to subsection (c).
       ``(C) Phase-in exception for 100 percent disabled 
     retirees.--The payment of retired pay is subject to 
     subsection (c) only during the period beginning on January 1, 
     2004, and ending on December 31, 2004, in the case of the 
     following qualified retirees:
       ``(i) A qualified retiree receiving veterans' disability 
     compensation for a disability rated as 100 percent.
       ``(ii) A qualified retiree receiving veterans' disability 
     compensation at the rate payable for a 100 percent disability 
     by reason of a determination of individual unemployability.
       ``(D) Temporary phase-in exception for certain chapter 61 
     disability retirees; termination.--Subject to subsection (b), 
     during the period beginning on January 1, 2010, and ending on 
     September 30, 2010, subsection (c) shall not apply to a 
     qualified retiree described in subparagraph (B) or (C) of 
     paragraph (2).
       ``(2) Qualifying service-connected disability defined.--In 
     this section, the term `qualifying service-connected 
     disability' means the following:
       ``(A) In the case of a member or former member receiving 
     retired pay under any provision of law other than chapter 61 
     of this title, or under chapter 61 with 20 years or more of 
     service otherwise creditable under section 1405 or computed 
     under section 12732 of this title, a service-connected 
     disability or combination of service-connected disabilities 
     that is rated as not less than 50 percent disabling by the 
     Secretary of Veterans Affairs.
       ``(B) In the case of a member or former member receiving 
     retired pay under chapter 61 of this title with less than 20 
     years of service otherwise creditable under section 1405 or 
     computed under section 12732 of this title, a service-
     connected disability or combination of service-connected 
     disabilities that is rated by the Secretary of Veterans 
     Affairs at the disabling level specified in one of the 
     following clauses (and, subject to paragraph (3), is 
     effective on or after the date specified in the applicable 
     clause):
       ``(i) January 1, 2010, rated 100 percent, or a rate payable 
     at 100 percent by reason of individual unemployability or 
     rated 90 percent
       ``(ii) January 1, 2011, rated 80 percent or 70 percent.
       ``(iii) January 1, 2012, rated 60 percent or 50 percent.
       ``(C) In the case of a member or former member receiving 
     retired pay under chapter 61 regardless of years of service, 
     a service-connected disability or combination of service-
     connected disabilities that is rated by the Secretary of 
     Veterans Affairs at the disabling level specified in one of 
     the following clauses (and, subject to paragraph (3), is 
     effective on or after the date specified in the applicable 
     clause):
       ``(i) January 1, 2013, rated 40 percent or 30 percent.
       ``(ii) January 1, 2014, any rating.
       ``(3) Limited duration.--Notwithstanding the effective date 
     specified in each clause of subparagraphs (B) and (C) of 
     paragraph (2), the clause shall apply only if the termination 
     date specified in subparagraph (D) of paragraph (1) occurs 
     during or after the calendar year specified in the clause, 
     except that, eligibility may not extend beyond the 
     termination date.''.
       (b) Conforming Amendment to Special Rules for Chapter 61 
     Disability Retirees.--Subsection (b) of such section is 
     amended to read as follows:
       ``(b) Special Rules for Chapter 61 Disability Retirees When 
     Eligibility Has Been Established for Such Retirees.--
       ``(1) General reduction rule.--The retired pay of a member 
     retired under chapter 61 of this title is subject to 
     reduction under sections 5304 and 5305 of title 38, but only 
     to the extent that the amount of the members retired pay 
     under chapter 61 of this title exceeds the amount of retired 
     pay to which the member would have been entitled under any 
     other provision of law based upon the member's service in the 
     uniformed services if the member had not been retired under 
     chapter 61 of this title.
       ``(2) Retirees with fewer than 20 years of service.--
       ``(A) Before termination date.--If a member with a 
     qualifying service-connected disability (as defined in 
     subsection (a)(2)) is retired under chapter 61 of this title 
     with fewer than 20 years of creditable service otherwise 
     creditable under section 1405 or computed under section 12732 
     of this title, and the termination date specified in 
     subsection (a)(1)(D) has not occurred, the retired pay of the 
     member is subject to reduction under

[[Page 16068]]

     sections 5304 and 5305 of title 38, but only to the extent 
     that the amount of the member's retired pay under chapter 61 
     of this title exceeds the amount equal to 2\1/2\ percent of 
     the member's years of creditable service multiplied by the 
     member's retired pay base under section 1406(b)(1) or 1407 of 
     this title, whichever is applicable to the member.
       ``(B) After termination date.--Subsection (a) does not 
     apply to a member retired under chapter 61 of this title with 
     less than 20 years of service otherwise creditable under 
     section 1405 of this title, or with less than 20 years of 
     service computed under section 12732 of this title, at the 
     time of the retirement of the member if the termination date 
     in paragraph (1)(D) of such subsection has occurred.''.
       (c) Conforming Amendment to Full Concurrent Receipt Phase-
     in.--Subsection (c) of such section is amended by striking 
     ``the second sentence of''.
       (d) Clerical Amendments.--
       (1) Section heading.--The heading of such section is 
     amended to read as follows:

     ``Sec. 1414. Concurrent receipt of retired pay and veterans' 
       disability compensation''.

       (2) Table of sections.--The table of sections at the 
     beginning of chapter 71 of such title is amended by striking 
     the item related to section 1414 and inserting the following 
     new item:

``1414. Concurrent receipt of retired pay and veterans' disability 
              compensation.''.

       (e) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2010.

                  TITLE II--FEDERAL EMPLOYEE BENEFITS

                     Subtitle A--General Provisions

     SEC. 201. CREDIT FOR UNUSED SICK LEAVE.

       (a) In General.--Section 8415 of title 5, United States 
     Code, is amended--
       (1) by redesignating the second subsection (k) and 
     subsection (l) as subsections (l) and (m), respectively; and
       (2) in subsection (l) (as so redesignated by paragraph 
     (1))--
       (A) by striking ``(l) In computing'' and inserting ``(l)(1) 
     In computing''; and
       (B) by adding at the end the following:
       ``(2) Except as provided in paragraph (1), in computing an 
     annuity under this subchapter, the total service of an 
     employee who retires on an immediate annuity or who dies 
     leaving a survivor or survivors entitled to annuity includes 
     the days of unused sick leave to his credit under a formal 
     leave system and for which days the employee has not received 
     payment, except that these days will not be counted in 
     determining average pay or annuity eligibility under this 
     subchapter. For purposes of this subsection, in the case of 
     any such employee who is excepted from subchapter I of 
     chapter 63 under section 6301(2)(x) through (xiii), the days 
     of unused sick leave to his credit include any unused sick 
     leave standing to his credit when he was excepted from such 
     subchapter.''.
       (b) Exception From Deposit Requirement.--Section 8422(d)(2) 
     of title 5, United States Code, is amended by striking 
     ``section 8415(k)'' and inserting ``paragraph (1) or (2) of 
     section 8415(l)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to annuities computed based on 
     separations occurring on or after the date of enactment of 
     this Act.

     SEC. 202. LIMITED EXPANSION OF THE CLASS OF INDIVIDUALS 
                   ELIGIBLE TO RECEIVE AN ACTUARIALLY REDUCED 
                   ANNUITY UNDER THE CIVIL SERVICE RETIREMENT 
                   SYSTEM.

       (a) In General.--Section 8334(d)(2)(A)(i) of title 5, 
     United States Code, is amended by striking ``October 1, 
     1990'' each place it appears and inserting ``March 1, 1991''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall be effective with respect to any annuity, entitlement 
     to which is based on a separation from service occurring on 
     or after the date of enactment of this Act.

     SEC. 203. COMPUTATION OF CERTAIN ANNUITIES BASED ON PART-TIME 
                   SERVICE.

       (a) In General.--Section 8339(p) of title 5, United States 
     Code, is amended by adding at the end the following:
       ``(3) In the administration of paragraph (1)--
       ``(A) subparagraph (A) of such paragraph shall apply with 
     respect to service performed before, on, or after April 7, 
     1986; and
       ``(B) subparagraph (B) of such paragraph--
       ``(i) shall apply with respect to that portion of any 
     annuity which is attributable to service performed on or 
     after April 7, 1986; and
       ``(ii) shall not apply with respect to that portion of any 
     annuity which is attributable to service performed before 
     April 7, 1986.''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall be effective with respect to any annuity, entitlement 
     to which is based on a separation from service occurring on 
     or after the date of enactment of this Act.

     SEC. 204. AUTHORITY TO DEPOSIT REFUNDS UNDER FERS.

       (a) Deposit Authority.--Section 8422 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``(i)(1) Each employee or Member who has received a refund 
     of retirement deductions under this or any other retirement 
     system established for employees of the Government covering 
     service for which such employee or Member may be allowed 
     credit under this chapter may deposit the amount received, 
     with interest. Credit may not be allowed for the service 
     covered by the refund until the deposit is made.
       ``(2) Interest under this subsection shall be computed in 
     accordance with paragraphs (2) and (3) of section 8334(e) and 
     regulations prescribed by the Office. The option under the 
     third sentence of section 8334(e)(2) to make a deposit in one 
     or more installments shall apply to deposits under this 
     subsection.
       ``(3) For the purpose of survivor annuities, deposits 
     authorized by this subsection may also be made by a survivor 
     of an employee or Member.''.
       (b) Technical and Conforming Amendments.--
       (1) Definitional amendment.--Section 8401(19)(C) of title 
     5, United States Code, is amended by striking ``8411(f);'' 
     and inserting ``8411(f) or 8422(i);''.
       (2) Crediting of deposits.--Section 8422(c) of title 5, 
     United States Code, is amended by adding at the end the 
     following: ``Deposits made by an employee, Member, or 
     survivor also shall be credited to the Fund.''.
       (3) Section heading.--(A) The heading for section 8422 of 
     title 5, United States Code, is amended to read as follows:

     ``Sec. 8422. Deductions from pay; contributions for other 
       service; deposits''.

       (B) The analysis for chapter 84 of title 5, United States 
     Code, is amended by striking the item relating to section 
     8422 and inserting the following:

``8422. Deductions from pay; contributions for other service; 
              deposits.''.

       (4) Restoration of annuity rights.--The last sentence of 
     section 8424(a) of title 5, United States Code, is amended by 
     striking ``based.'' and inserting ``based, until the employee 
     or Member is reemployed in the service subject to this 
     chapter.''.

     SEC. 205. RETIREMENT CREDIT FOR SERVICE OF CERTAIN EMPLOYEES 
                   TRANSFERRED FROM DISTRICT OF COLUMBIA SERVICE 
                   TO FEDERAL SERVICE.

       (a) Retirement Credit.--
       (1) In general.--Any individual who is treated as an 
     employee of the Federal Government for purposes of chapter 83 
     or chapter 84 of title 5, United States Code, on or after the 
     date of enactment of this Act who performed qualifying 
     District of Columbia service shall be entitled to have such 
     service included in calculating the individual's creditable 
     service under sections 8332 or 8411 of title 5, United States 
     Code, but only for purposes of the following provisions of 
     such title:
       (A) Sections 8333 and 8410 (relating to eligibility for 
     annuity).
       (B) Sections 8336 (other than subsections (d), (h), and (p) 
     thereof) and 8412 (relating to immediate retirement).
       (C) Sections 8338 and 8413 (relating to deferred 
     retirement).
       (D) Sections 8336(d), 8336(h), 8336(p), and 8414 (relating 
     to early retirement).
       (E) Section 8341 and subchapter IV of chapter 84 (relating 
     to survivor annuities).
       (F) Section 8337 and subchapter V of chapter 84 (relating 
     to disability benefits).
       (2) Treatment of detention officer service as law 
     enforcement officer service.--Any portion of an individual's 
     qualifying District of Columbia service which consisted of 
     service as a detention officer under section 2604(2) of the 
     District of Columbia Government Comprehensive Merit Personnel 
     Act of 1978 (sec. 1-626.04(2), D.C. Official Code) shall be 
     treated as service as a law enforcement officer under 
     sections 8331(20) or 8401(17) of title 5, United States Code, 
     for purposes of applying paragraph (1) with respect to the 
     individual.
       (3) Service not included in computing amount of any 
     annuity.--Qualifying District of Columbia service shall not 
     be taken into account for purposes of computing the amount of 
     any benefit payable out of the Civil Service Retirement and 
     Disability Fund.
       (b) Qualifying District of Columbia Service Defined.--In 
     this section, ``qualifying District of Columbia service'' 
     means any of the following:
       (1) Service performed by an individual as a nonjudicial 
     employee of the District of Columbia courts--
       (A) which was performed prior to the effective date of the 
     amendments made by section 11246(b) of the Balanced Budget 
     Act of 1997; and
       (B) for which the individual did not ever receive credit 
     under the provisions of subchapter III of chapter 83 or 
     chapter 84 of title 5, United States Code (other than by 
     virtue of section 8331(1)(iv) of such title).
       (2) Service performed by an individual as an employee of an 
     entity of the District of Columbia government whose functions 
     were transferred to the Pretrial Services, Parole, Adult 
     Supervision, and Offender Supervision Trustee under section 
     11232 of the Balanced Budget Act of 1997--
       (A) which was performed prior to the effective date of the 
     individual's coverage as an employee of the Federal 
     Government under section 11232(f) of such Act; and

[[Page 16069]]

       (B) for which the individual did not ever receive credit 
     under the provisions of subchapter III of chapter 83 or 
     chapter 84 of title 5, United States Code (other than by 
     virtue of section 8331(1)(iv) of such title).
       (3) Service performed by an individual as an employee of 
     the District of Columbia Public Defender Service--
       (A) which was performed prior to the effective date of the 
     amendments made by section 7(e) of the District of Columbia 
     Courts and Justice Technical Corrections Act of 1998; and
       (B) for which the individual did not ever receive credit 
     under the provisions of subchapter III of chapter 83 or 
     chapter 84 of title 5, United States Code (other than by 
     virtue of section 8331(1)(iv) of such title).
       (4) In the case of an individual who was an employee of the 
     District of Columbia Department of Corrections who was 
     separated from service as a result of the closing of the 
     Lorton Correctional Complex and who was appointed to a 
     position with the Bureau of Prisons, the District of Columbia 
     courts, the Pretrial Services, Parole, Adult Supervision, and 
     Offender Supervision Trustee, the United States Parole 
     Commission, or the District of Columbia Public Defender 
     Service, service performed by the individual as an employee 
     of the District of Columbia Department of Corrections--
       (A) which was performed prior to the effective date of the 
     individual's coverage as an employee of the Federal 
     Government; and
       (B) for which the individual did not ever receive credit 
     under the provisions of subchapter III of chapter 83 or 
     chapter 84 of title 5, United States Code (other than by 
     virtue of section 8331(1)(iv) of such title).
       (c) Certification of Service.--The Office of Personnel 
     Management shall accept the certification of the appropriate 
     personnel official of the government of the District of 
     Columbia or other independent employing entity concerning 
     whether an individual performed qualifying District of 
     Columbia service and the length of the period of such service 
     the individual performed.

        Subtitle B--Non-Foreign Area Retirement Equity Assurance

     SEC. 211. SHORT TITLE.

       This subtitle may be cited as the ``Non-Foreign Area 
     Retirement Equity Assurance Act of 2009'' or the ``Non-
     Foreign AREA Act of 2009''.

     SEC. 212. EXTENSION OF LOCALITY PAY.

       (a) Locality-Based Comparability Payments.--Section 5304 of 
     title 5, United States Code, is amended--
       (1) in subsection (f)(1), by striking subparagraph (A) and 
     inserting the following:
       ``(A) each General Schedule position in the United States, 
     as defined under section 5921(4), and its territories and 
     possessions, including the Commonwealth of Puerto Rico and 
     the Commonwealth of the Northern Mariana Islands, shall be 
     included within a pay locality;'';
       (2) in subsection (g)--
       (A) in paragraph (2)--
       (i) in subparagraph (A), by striking ``and'' after the 
     semicolon;
       (ii) in subparagraph (B) by striking the period and 
     inserting ``; and''; and
       (iii) by adding after subparagraph (B) the following:
       ``(C) positions under subsection (h)(1)(C) not covered by 
     appraisal systems certified under section 5382; and''; and
       (B) by adding at the end the following:
       ``(3) The applicable maximum under this subsection shall be 
     level II of the Executive Schedule for positions under 
     subsection (h)(1)(C) covered by appraisal systems certified 
     under section 5307(d).''; and
       (3) in subsection (h)(1)--
       (A) in subparagraph (B) by striking ``and'' after the 
     semicolon;
       (B) by redesignating subparagraph (C) as subparagraph (D);
       (C) by inserting after subparagraph (B) the following:
       ``(C) a Senior Executive Service position under section 
     3132 or 3151 or a senior level position under section 5376 
     stationed within the United States, but outside the 48 
     contiguous States and the District of Columbia in which the 
     incumbent was an individual who on the day before the date of 
     enactment of the Non-Foreign Area Retirement Equity Assurance 
     Act of 2009 was eligible to receive a cost-of-living 
     allowance under section 5941; and'';
       (D) in clause (iv) in the matter following subparagraph 
     (D), by inserting ``, except for members covered by 
     subparagraph (C)'' before the semicolon; and
       (E) in clause (v) in the matter following subparagraph (D), 
     by inserting ``, except for members covered by subparagraph 
     (C)'' before the semicolon.
       (b) Allowances Based on Living Costs and Conditions of 
     Environment.--Section 5941 of title 5, United States Code, is 
     amended--
       (1) in subsection (a), by adding after the last sentence 
     ``Notwithstanding any preceding provision of this subsection, 
     the cost-of-living allowance rate based on paragraph (1) 
     shall be the cost-of-living allowance rate in effect on the 
     date of enactment of the Non-Foreign Area Retirement Equity 
     Assurance Act of 2009, except as adjusted under subsection 
     (c).'';
       (2) by redesignating subsection (b) as subsection (d); and
       (3) by inserting after subsection (a) the following:
       ``(b) This section shall apply only to areas that are 
     designated as cost-of-living allowance areas as in effect on 
     December 31, 2009.
       ``(c)(1) The cost-of-living allowance rate payable under 
     this section shall be adjusted on the first day of the first 
     applicable pay period beginning on or after--
       ``(A) January 1, 2010; and
       ``(B) January 1 of each calendar year in which a locality-
     based comparability adjustment takes effect under section 214 
     (2) and (3) of the Non-Foreign Area Retirement Equity 
     Assurance Act of 2009.
       ``(2)(A) In this paragraph, the term `applicable locality-
     based comparability pay percentage' means, with respect to 
     calendar year 2010 and each calendar year thereafter, the 
     applicable percentage under section 214 (1), (2), or (3) of 
     Non-Foreign Area Retirement Equity Assurance Act of 2009.
       ``(B) Each adjusted cost-of-living allowance rate under 
     paragraph (1) shall be computed by--
       ``(i) subtracting 65 percent of the applicable locality-
     based comparability pay percentage from the cost-of-living 
     allowance percentage rate in effect on December 31, 2009; and
       ``(ii) dividing the resulting percentage determined under 
     clause (i) by the sum of--
       ``(I) one; and
       ``(II) the applicable locality-based comparability payment 
     percentage expressed as a numeral.
       ``(3) No allowance rate computed under paragraph (2) may be 
     less than zero.
       ``(4) Each allowance rate computed under paragraph (2) 
     shall be paid as a percentage of basic pay (including any 
     applicable locality-based comparability payment under section 
     5304 or similar provision of law and any applicable special 
     rate of pay under section 5305 or similar provision of 
     law).''.

     SEC. 213. ADJUSTMENT OF SPECIAL RATES.

       (a) In General.--Each special rate of pay established under 
     section 5305 of title 5, United States Code, and payable in 
     an area designated as a cost-of-living allowance area under 
     section 5941(a) of that title, shall be adjusted, on the 
     dates prescribed by section 214 of this subtitle, in 
     accordance with regulations prescribed by the Director of the 
     Office of Personnel Management under section 218 of this 
     subtitle.
       (b) Agencies With Statutory Authority.--
       (1) In general.--Each special rate of pay established under 
     an authority described under paragraph (2) and payable in a 
     location designated as a cost-of-living allowance area under 
     section 5941(a)(1) of title 5, United States Code, shall be 
     adjusted in accordance with regulations prescribed by the 
     applicable head of the agency that are consistent with the 
     regulations issued by the Director of the Office of Personnel 
     Management under subsection (a).
       (2) Statutory authority.--The authority referred to under 
     paragraph (1), is any statutory authority that--
       (A) is similar to the authority exercised under section 
     5305 of title 5, United States Code;
       (B) is exercised by the head of an agency when the head of 
     the agency determines it to be necessary in order to obtain 
     or retain the services of persons specified by statute; and
       (C) authorizes the head of the agency to increase the 
     minimum, intermediate, or maximum rates of basic pay 
     authorized under applicable statutes and regulations.
       (c) Temporary Adjustment.--Regulations issued under 
     subsection (a) or (b) may provide that statutory limitations 
     on the amount of such special rates may be temporarily raised 
     to a higher level during the transition period described in 
     section 214 ending on the first day of the first pay period 
     beginning on or after January 1, 2012, at which time any 
     special rate of pay in excess of the applicable limitation 
     shall be converted to a retained rate under section 5363 of 
     title 5, United States Code.

     SEC. 214. TRANSITION SCHEDULE FOR LOCALITY-BASED 
                   COMPARABILITY PAYMENTS.

       Notwithstanding any other provision of this subtitle or 
     section 5304 or 5304a of title 5, United States Code, in 
     implementing the amendments made by this subtitle, for each 
     non-foreign area determined under section 5941(b) of that 
     title, the applicable rate for the locality-based 
     comparability adjustment that is used in the computation 
     required under section 5941(c) of that title shall be 
     adjusted effective on the first day of the first pay period 
     beginning on or after January 1--
       (1) in calendar year 2010, by using \1/3\ of the locality 
     pay percentage for the rest of United States locality pay 
     area;
       (2) in calendar year 2011, by using \2/3\ of the otherwise 
     applicable comparability payment approved by the President 
     for each non-foreign area; and
       (3) in calendar year 2012 and each subsequent year, by 
     using the full amount of the applicable comparability payment 
     approved by the President for each non-foreign area.

     SEC. 215. SAVINGS PROVISION.

       (a) Sense of Congress.--It is the sense of Congress that--
       (1) the application of this subtitle to any employee should 
     not result in a decrease in the take home pay of that 
     employee;

[[Page 16070]]

       (2) in calendar year 2012 and each subsequent year, no 
     employee shall receive less than the Rest of the U.S. 
     locality pay rate;
       (3) concurrent with the surveys next conducted under the 
     provisions of section 5304(d)(1)(A) of title 5, United States 
     Code, beginning after the date of the enactment of this Act, 
     the Bureau of Labor Statistics should conduct separate 
     surveys to determine the extent of any pay disparity (as 
     defined by section 5302 of that title) that may exist with 
     respect to positions located in the State of Alaska, the 
     State of Hawaii, and the United States territories, including 
     American Samoa, Guam, Commonwealth of the Northern Mariana 
     Islands, Commonwealth of Puerto Rico, and the United States 
     Virgin Islands;
       (4) if the surveys under paragraph (3) indicate that the 
     pay disparity determined for the State of Alaska, the State 
     of Hawaii, or any 1 of the United States territories 
     including American Samoa, Guam, Commonwealth of the Northern 
     Mariana Islands, Commonwealth of Puerto Rico, and the United 
     States Virgin Islands exceeds the pay disparity determined 
     for the locality which (for purposes of section 5304 of that 
     title) is commonly known as the ``Rest of the United 
     States'', the President's Pay Agent should take appropriate 
     measures to provide that each such surveyed area be treated 
     as a separate pay locality for purposes of that section; and
       (5) the President's Pay Agent will establish 1 locality 
     area for the entire State of Hawaii and 1 locality area for 
     the entire State of Alaska.
       (b) Savings Provisions.--
       (1) In general.--During the period described under section 
     214 of this subtitle, an employee paid a special rate under 
     5305 of title 5, United States Code, who the day before the 
     date of enactment of this Act was eligible to receive a cost-
     of-living allowance under section 5941 of title 5, United 
     States Code, and who continues to be officially stationed in 
     an allowance area, shall receive an increase in the 
     employee's special rate consistent with increases in the 
     applicable special rate schedule. For employees in allowance 
     areas, the minimum step rate for any grade of a special rate 
     schedule shall be increased at the time of an increase in the 
     applicable locality rate percentage for the allowance area by 
     not less than the dollar increase in the locality-based 
     comparability payment for a non-special rate employee at the 
     same minimum step provided under section 214 of this 
     subtitle, and corresponding increases shall be provided for 
     all step rates of the given pay range.
       (2) Continuation of cost of living allowance rate.--If an 
     employee, who the day before the date of enactment of this 
     Act was eligible to receive a cost-of-living allowance under 
     section 5941 of title 5, United States Code, would receive a 
     rate of basic pay and applicable locality-based comparability 
     payment which is in excess of the maximum rate limitation set 
     under section 5304(g) of title 5, United States Code, for his 
     position (but for that maximum rate limitation) due to the 
     operation of this subtitle, the employee shall continue to 
     receive the cost-of-living allowance rate in effect on 
     December 31, 2009 without adjustment until--
       (A) the employee leaves the allowance area or pay system; 
     or
       (B) the employee is entitled to receive basic pay 
     (including any applicable locality-based comparability 
     payment or similar supplement) at a higher rate,

     but, when any such position becomes vacant, the pay of any 
     subsequent appointee thereto shall be fixed in the manner 
     provided by applicable law and regulation.
       (3) Locality-based comparability payments.--Any employee 
     covered under paragraph (2) shall receive any applicable 
     locality-based comparability payment extended under section 
     214 of this subtitle which is not in excess of the maximum 
     rate set under section 5304(g) of title 5, United States 
     Code, for his position including any future increase to 
     statutory pay limitations under 5318 of title 5, United 
     States Code. Notwithstanding paragraph (2), to the extent 
     that an employee covered under that paragraph receives any 
     amount of locality-based comparability payment, the cost-of-
     living allowance rate under that paragraph shall be reduced 
     accordingly, as provided under section 5941(c)(2)(B) of title 
     5, United States Code.

     SEC. 216. APPLICATION TO OTHER ELIGIBLE EMPLOYEES.

       (a) In General.--
       (1) Definition.--In this subsection, the term ``covered 
     employee'' means--
       (A) any employee who--
       (i) on the day before the date of enactment of this Act--

       (I) was eligible to be paid a cost-of-living allowance 
     under 5941 of title 5, United States Code; and
       (II) was not eligible to be paid locality-based 
     comparability payments under 5304 or 5304a of that title; or

       (ii) on or after the date of enactment of this Act becomes 
     eligible to be paid a cost-of-living allowance under 5941 of 
     title 5, United States Code; or
       (B) any employee who--
       (i) on the day before the date of enactment of this Act--

       (I) was eligible to be paid an allowance under section 
     1603(b) of title 10, United States Code;
       (II) was eligible to be paid an allowance under section 
     1005(b) of title 39, United States Code;
       (III) was employed by the Transportation Security 
     Administration of the Department of Homeland Security and was 
     eligible to be paid an allowance based on section 5941 of 
     title 5, United States Code; or
       (IV) was eligible to be paid under any other authority a 
     cost-of-living allowance that is equivalent to the cost-of-
     living allowance under section 5941 of title 5, United States 
     Code; or

       (ii) on or after the date of enactment of this Act--

       (I) becomes eligible to be paid an allowance under section 
     1603(b) of title 10, United States Code;
       (II) becomes eligible to be paid an allowance under section 
     1005(b) of title 39, United States Code;
       (III) is employed by the Transportation Security 
     Administration of the Department of Homeland Security and 
     becomes eligible to be paid an allowance based on section 
     5941 of title 5, United States Code; or
       (IV) is eligible to be paid under any other authority a 
     cost-of-living allowance that is equivalent to the cost-of-
     living allowance under section 5941 of title 5, United States 
     Code.

       (2) Application to covered employees.--
       (A) In general.--Notwithstanding any other provision of 
     law, for purposes of this subtitle (including the amendments 
     made by this subtitle) any covered employee shall be treated 
     as an employee to whom section 5941 of title 5, United States 
     Code (as amended by section 212 of this subtitle), and 
     section 214 of this subtitle apply.
       (B) Pay fixed by statute.--Pay to covered employees under 
     section 5304 or 5304a of title 5, United States Code, as a 
     result of the application of this subtitle shall be 
     considered to be fixed by statute.
       (C) Performance appraisal system.--With respect to a 
     covered employee who is subject to a performance appraisal 
     system no part of pay attributable to locality-based 
     comparability payments as a result of the application of this 
     subtitle including section 5941 of title 5, United States 
     Code (as amended by section 212 of this subtitle), may be 
     reduced on the basis of the performance of that employee.
       (b) Postal Employees in Non-Foreign Areas.--
       (1) In general.--Section 1005(b) of title 39, United States 
     Code, is amended--
       (A) by inserting ``(1)'' after ``(b)'';
       (B) by striking ``Section 5941,'' and inserting ``Except as 
     provided under paragraph (2), section 5941'';
       (C) by striking ``For purposes of such section,'' and 
     inserting ``Except as provided under paragraph (2), for 
     purposes of section 5941 of that title,''; and
       (D) by adding at the end the following:
       ``(2) On and after the date of enactment of the Non-Foreign 
     Area Retirement Equity Assurance Act of 2009--
       ``(A) the provisions of that Act and section 5941 of title 
     5 shall apply to officers and employees covered by section 
     1003 (b) and (c) whose duty station is in a nonforeign area; 
     and
       ``(B) with respect to officers and employees of the Postal 
     Service (other than those officers and employees described 
     under subparagraph (A)) of section 216(b)(2) of that Act 
     shall apply.''.
       (2) Continuation of cost of living allowance.--
       (A) In general.--Notwithstanding any other provision of 
     this subtitle, any employee of the Postal Service (other than 
     an employee covered by section 1003 (b) and (c) of title 39, 
     United States Code, whose duty station is in a nonforeign 
     area) who is paid an allowance under section 1005(b) of that 
     title shall be treated for all purposes as if the provisions 
     of this subtitle (including the amendments made by this 
     subtitle) had not been enacted, except that the cost-of-
     living allowance rate paid to that employee--
       (i) may result in the allowance exceeding 25 percent of the 
     rate of basic pay of that employee; and
       (ii) shall be the greater of--

       (I) the cost-of-living allowance rate in effect on December 
     31, 2009 for the applicable area; or
       (II) the applicable locality-based comparability pay 
     percentage under section 214.

       (B) Rule of construction.--Nothing in this subtitle shall 
     be construed to--
       (i) provide for an employee described under subparagraph 
     (A) to be a covered employee as defined under subsection (a); 
     or
       (ii) authorize an employee described under subparagraph (A) 
     to file an election under section 217 of this subtitle.

     SEC. 217. ELECTION OF ADDITIONAL BASIC PAY FOR ANNUITY 
                   COMPUTATION BY EMPLOYEES.

       (a) Definition.--In this section the term ``covered 
     employee'' means any employee--
       (1) to whom section 214 applies;
       (2) who is separated from service by reason of retirement 
     under chapter 83 or 84 of title 5, United States Code, during 
     the period of January 1, 2010, through December 31, 2012; and
       (3) who files an election with the Office of Personnel 
     Management under subsection (b).
       (b) Election.--

[[Page 16071]]

       (1) In general.--An employee described under subsection (a) 
     (1) and (2) may file an election with the Office of Personnel 
     Management to be covered under this section.
       (2) Deadline.--An election under this subsection may be 
     filed not later than December 31, 2012.
       (c) Computation of Annuity.--
       (1) In general.--Except as provided under paragraph (2), 
     for purposes of the computation of an annuity of a covered 
     employee any cost-of-living allowance under section 5941 of 
     title 5, United States Code, paid to that employee during the 
     first applicable pay period beginning on or after January 1, 
     2010 through the first applicable pay period ending on or 
     after December 31, 2012, shall be considered basic pay as 
     defined under section 8331(3) or 8401(4) of that title.
       (2) Limitation.--The amount of the cost-of-living allowance 
     which may be considered basic pay under paragraph (1) may not 
     exceed the amount of the locality-based comparability 
     payments the employee would have received during that period 
     for the applicable pay area if the limitation under section 
     214 of this subtitle did not apply.
       (d) Civil Service Retirement and Disability Retirement 
     Fund.--
       (1) Employee contributions.--A covered employee shall pay 
     into the Civil Service Retirement and Disability Retirement 
     Fund--
       (A) an amount equal to the difference between--
       (i) employee contributions that would have been deducted 
     and withheld from pay under section 8334 or 8422 of title 5, 
     United States Code, during the period described under 
     subsection (c) of this section if the cost-of-living 
     allowances described under that subsection had been treated 
     as basic pay under section 8331(3) or 8401(4) of title 5, 
     United States Code; and
       (ii) employee contributions that were actually deducted and 
     withheld from pay under section 8334 or 8422 of title 5, 
     United States Code, during that period; and
       (B) interest as prescribed under section 8334(e) of title 
     5, United States Code, based on the amount determined under 
     subparagraph (A).
       (2) Agency contributions.--
       (A) In general.--The employing agency of a covered employee 
     shall pay into the Civil Service Retirement and Disability 
     Retirement Fund an amount for applicable agency contributions 
     based on payments made under paragraph (1).
       (B) Source.--Amounts paid under this paragraph shall be 
     contributed from the appropriation or fund used to pay the 
     employee.
       (3) Regulations.--The Office of Personnel Management may 
     prescribe regulations to carry out this section.

     SEC. 218. REGULATIONS.

       (a) In General.--The Director of the Office of Personnel 
     Management shall prescribe regulations to carry out this 
     subtitle, including--
       (1) rules for special rate employees described under 
     section 213;
       (2) rules for adjusting rates of basic pay for employees in 
     pay systems administered by the Office of Personnel 
     Management when such employees are not entitled to locality-
     based comparability payments under section 5304 of title 5, 
     United States Code, without regard to otherwise applicable 
     statutory pay limitations during the transition period 
     described in section 214 ending on the first day of the first 
     pay period beginning on or after January 1, 2012; and
       (3) rules governing establishment and adjustment of saved 
     or retained rates for any employee whose rate of pay exceeds 
     applicable pay limitations on the first day of the first pay 
     period beginning on or after January 1, 2012.
       (b) Other Pay Systems.--With the concurrence of the 
     Director of the Office of Personnel Management, the 
     administrator of a pay system not administered by the Office 
     of Personnel Management shall prescribe regulations to carry 
     out this subtitle with respect to employees in such pay 
     system, consistent with the regulations prescribed by the 
     Office under subsection (a). With respect to employees not 
     entitled to locality-based comparability payments under 
     section 5304 of title 5, United States Code, regulations 
     prescribed under this subsection may provide for special 
     payments or adjustments for employees who were eligible to 
     receive a cost-of-living allowance under section 5941 of that 
     title on the date before the date of enactment of this Act.

     SEC. 219. EFFECTIVE DATES.

       (a) In General.--Except as provided by subsection (b), this 
     subtitle (including the amendments made by this subtitle) 
     shall take effect on the date of enactment of this Act.
       (b) Locality Pay and Schedule.--The amendments made by 
     section 212 and the provisions of section 214 shall take 
     effect on the first day of the first applicable pay period 
     beginning on or after January 1, 2010.

   TITLE III--DEEPWATER OIL AND GAS RESEARCH AND DEVELOPMENT FUNDING 
                             SOURCE REPEAL

     SEC. 301. REPEAL.

       Effective October 1, 2010, section 999H of the Energy 
     Policy Act of 2005 (42 U.S.C. 16378) is amended--
       (1) by striking subsections (a), (b), (c), and (f);
       (2) by redesignating subsections (d) and (e) as subsections 
     (a) and (b), respectively;
       (3) in subsection (a), as so redesignated, by striking 
     ``obligated from the Fund under subsection (a)(1)'' and 
     inserting ``available under this section''; and
       (4) in subsection (b), as so redesignated, by striking ``In 
     addition to other amounts that are made available to carry 
     out this section, there'' and inserting ``There''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Missouri (Mr. Skelton) and the gentleman from South Carolina (Mr. 
Wilson) each will control 20 minutes.
  The Chair recognizes the gentleman from Missouri.


                             General Leave

  Mr. SKELTON. I ask unanimous consent that all Members have 5 
legislative days in which to revise and extend their remarks on then 
resolution under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Missouri?
  There was no objection.
  Mr. SKELTON. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, I rise in support of H.R. 2990, the Disabled Military 
Retiree Relief Act of 2009. The disabled veterans tax has, for decades, 
prevented retirees from receiving the full benefits they have earned in 
military retired pay and veterans disability compensation.
  The one group of retirees that have endured great hardship but have 
been among the last to be embraced by reform is the disabled retiree 
with less than 20 years of service.
  This group of retirees has been ignored by even the most reform-
minded advocate until the Democratic Congress acted to include them in 
the Combat-Related Special Compensation program when the National 
Defense Authorization Act for Fiscal Year 2008 was adopted. And yet 
this group of retirees has perhaps the most compelling story to tell.
  Many of these servicemembers were on track to serve a full military 
career but were blocked from serving 20 years because of their 
disabilities. It's this group of retirees that were disabled at younger 
ages and often with young families. As a result, they are often the 
most financially stressed.
  The President took a definitive step forward in support of disabled 
retirees with less than 20 years of service when he proposed 
legislation in his budget request for fiscal year 2010. The President's 
proposal would phase in full concurrent receipt of military retired pay 
and VA disability compensation for these deserving veterans over 5 
years.
  We share the President's view that our veterans and their families, 
and particularly disabled retirees with less than 20 years, have made 
tremendous sacrifices for our country, but this bill moves us closer to 
fulfilling the President's plans and the commitment of Congress to give 
disabled veterans full access to the benefits they deserve.
  While H.R. 2990 is an important step, we must recognize that it is an 
incremental step that reaches only the most severely disabled over the 
first year of the President's phased implementation plan. Congress has 
been working to find a way to permanently eliminate the disabled 
veterans tax for many years, but finding this entitlement program is an 
immensely difficult task. I'm grateful to all of my House colleagues 
who have worked to find the budget offsets needed to provide this 
temporary fix for our veterans. As we pursue this legislation, we will 
continue to do all we can to honor our country's debt to our veterans 
and their families.
  I would note that H.R. 2990 also includes a number of valuable 
changes that enhance the Federal civilian retirement benefits. In 
addition, the bill extends expiring authorities concerning a wide 
variety of bonuses and special pays that are critical to military 
recruiting and retention.
  H.R. 2990 is a good bill. It's an important bill that supports the 
President's initiative regarding disabled retirees and fulfills the 
longstanding commitment of Congress to provide for the welfare of 
disabled veterans.
  There still remains much to be done to find a permanent solution, and 
this

[[Page 16072]]

bill provides the framework for our future action. Our veterans have 
never quit on America, and you can be certain that we will never quit 
on our veterans. I urge my colleagues to support the Disabled Military 
Retiree Relief Act of 2009.
  I reserve the balance of my time.
  Mr. WILSON of South Carolina. Madam Speaker, I yield myself such time 
as I may consume.
  Madam Speaker, I rise to support H.R. 2990, the Disabled Military 
Retiree Relief Act of 2009. This bill has a number of good provisions 
dealing with military and civilian personnel, which I appreciate as a 
31-year Army National Guard veteran representing Parris Island, the 
Marine Corps Air Station at Beaufort, the Beaufort Naval Hospital, and 
Fort Jackson.
  I want to focus on one section of the bill that would provide 
concurrent receipt of Department of Defense disability pay and Veterans 
Administration disability pay to a small number of people discharged 
from the services with less than 20 years' service because of injuries 
sustained while in the service.
  This section, which is but a ghost of the proposal submitted by 
President Obama, is a small but important step in expanding the 
population eligible for full concurrent receipt. I'm glad some progress 
is being made.
  What troubles and disappoints me most, however, is that this bill, 
which will be attached to the National Defense Authorization Act for 
2010, could have done so much more had the Democratic leadership of the 
House made elimination of concurrent receipt and elimination of the 
widow's tax a priority from the beginning of this Congress.
  Instead, we were unable to even debate my amendment at the full 
committee markup of the Defense Authorization dealing with concurrent 
receipt, the elimination of the Survivor Benefit Plan and Dependency 
and Indemnity Compensation offset is a widow's tax, the extension of 
health care to early retiring Reserve component members, and the use of 
the misnamed Reserve Fund in the budget resolution.
  I would note that since the introduction of the amendment, the 
Democratic leadership has found a way to fund H.R. 2990, using 
resources and dollars outside the House Armed Services Committee 
jurisdiction to provide for just 9 months of very limited concurrent 
receipt for disabled military retirees.
  While that is a step forward to eliminating some of the injustice 
inflicted on disabled retirees, it does nothing to cure the injustice 
still being suffered by most persons losing their rightly earned 
benefits because of the remaining concurrent receipt prohibitions.
  Had the House leadership seen eliminating these injustices as a 
priority, they could have allocated a small percentage--less than 1 
percent--necessary in the $15 trillion they provided for government 
spending in 2010 to 2014. Or, they could have used the Reserve Fund 
authority as proposed in my amendment.

                              {time}  1115

  Instead we must settle for a small pittance for a small group of 
retirees. I hope that since the authority for this limited concurrent 
receipt is for only 9 months, that the Democratic leadership makes 
resolving all the concurrent receipt and SBP-DIC offset injustices a 
real, not a symbolic, priority next year. As a Nation, we owe more than 
our gratitude to the brave men and women in uniform and their families, 
past and present, for the sacrifices they make to protect our freedoms. 
I know firsthand of the courage of our troops. My late father-in-law 
Julian Dusenbury, a dedicated Marine, was awarded the Navy Cross for 
leading the capture of the Japanese headquarters of Shuri Castle in 
Okinawa. He was shot by a sniper, resulting in his being in a 
wheelchair for the rest of his life. He was grateful to have served 
America.
  With that, Madam Speaker, I yield as much time as he may consume to 
the gentleman from Georgia, Dr. Broun.

                          ____________________