[106th Congress Public Law 265]
[From the U.S. Government Printing Office]
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[DOCID: f:publ265.106]
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FEDERAL LONG-TERM CARE INSURANCE
[[Page 114 STAT. 762]]
Public Law 106-265
106th Congress
An Act
To amend title 5, United States Code, to provide for the establishment
of a program under which long-term care insurance is made available to
Federal employees, members of the uniformed services, and civilian and
military retirees, provide for the correction of retirement coverage
errors under chapters 83 and 84 of such title, and for other
purposes. <<NOTE: Sept. 19, 2000 - [H.R. 4040]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
TITLE <<NOTE: Long-Term Care Security Act.>> I--FEDERAL LONG-TERM CARE
INSURANCE
SEC. 1001. SHORT TITLE. <<NOTE: 5 USC 9001 note.>>
This title may be cited as the ``Long-Term Care Security Act''.
SEC. 1002. LONG-TERM CARE INSURANCE.
(a) In General.--Subpart G of part III of title 5, United States
Code, is amended by adding at the end the following:
``CHAPTER 90--LONG-TERM CARE INSURANCE
``Sec.
``9001. Definitions.
``9002. Availability of insurance.
``9003. Contracting authority.
``9004. Financing.
``9005. Preemption.
``9006. Studies, reports, and audits.
``9007. Jurisdiction of courts.
``9008. Administrative functions.
``9009. Cost accounting standards.
``Sec. 9001. Definitions
For purposes of this chapter:
``(1) Employee.--The term `employee' means--
``(A) an employee as defined by section 8901(1);
``(B) an individual described in section 2105(e);
and
``(C) an individual employed by the Tennessee Valley
Authority,
but does not include an individual employed by the government of
the District of Columbia.
``(2) Annuitant.--The term `annuitant' has the meaning such
term would have under paragraph (3) of section 8901 if, for
purposes of such paragraph, the term `employee' were considered
to have the meaning given to it under paragraph (1) of this
subsection.
[[Page 114 STAT. 763]]
``(3) Member of the uniformed services.--The term `member of
the uniformed services' means a member of the uniformed
services, other than a retired member of the uniformed services,
who is--
``(A) on active duty or full-time National Guard
duty for a period of more than 30 days; and
``(B) a member of the Selected Reserve.
``(4) Retired member of the uniformed services.--The term
`retired member of the uniformed services' means a member or
former member of the uniformed services entitled to retired or
retainer pay, including a member or former member retired under
chapter 1223 of title 10 who has attained the age of 60 and who
satisfies such eligibility requirements as the Office of
Personnel Management prescribes under section 9008.
``(5) Qualified relative.--The term `qualified relative'
means each of the following:
``(A) The spouse of an individual described in
paragraph (1), (2), (3), or (4).
``(B) A parent, stepparent, or parent-in-law of an
individual described in paragraph (1) or (3).
``(C) A child (including an adopted child, a
stepchild, or, to the extent the Office of Personnel
Management by regulation provides, a foster child) of an
individual described in paragraph (1), (2), (3), or (4),
if such child is at least 18 years of age.
``(D) An individual having such other relationship
to an individual described in paragraph (1), (2), (3),
or (4) as the Office may by regulation prescribe.
``(6) Eligible individual.--The term `eligible individual'
refers to an individual described in paragraph (1), (2), (3),
(4), or (5).
``(7) Qualified carrier.--The term `qualified carrier' means
an insurance company (or consortium of insurance companies) that
is licensed to issue long-term care insurance in all States,
taking any subsidiaries of such a company into account (and, in
the case of a consortium, considering the member companies and
any subsidiaries thereof, collectively).
``(8) State.--The term `State' includes the District of
Columbia.
``(9) Qualified long-term care insurance contract.--The term
`qualified long-term care insurance contract' has the meaning
given such term by section 7702B of the Internal Revenue Code of
1986.
``(10) Appropriate secretary.--The term `appropriate
Secretary' means--
``(A) except as otherwise provided in this
paragraph, the Secretary of Defense;
``(B) with respect to the Coast Guard when it is not
operating as a service of the Navy, the Secretary of
Transportation;
``(C) with respect to the commissioned corps of the
National Oceanic and Atmospheric Administration, the
Secretary of Commerce; and
``(D) with respect to the commissioned corps of the
Public Health Service, the Secretary of Health and Human
Services.
[[Page 114 STAT. 764]]
``Sec. 9002. Availability of insurance
``(a) In General.--The Office of Personnel Management shall
establish and, in consultation with the appropriate Secretaries,
administer a program through which an individual described in paragraph
(1), (2), (3), (4), or (5) of section 9001 may obtain long-term care
insurance coverage under this chapter for such individual.
``(b) General Requirements.--Long-term care insurance may not be
offered under this chapter unless--
``(1) the only coverage provided is under qualified long-
term care insurance contracts; and
``(2) each insurance contract under which any such coverage
is provided is issued by a qualified carrier.
``(c) Documentation Requirement.--As a condition for obtaining long-
term care insurance coverage under this chapter based on one's status as
a qualified relative, an applicant shall provide documentation to
demonstrate the relationship, as prescribed by the Office.
``(d) Underwriting Standards.--
``(1) Disqualifying condition.--Nothing in this chapter
shall be considered to require that long-term care insurance
coverage be made available in the case of any individual who
would be eligible for benefits immediately.
``(2) Spousal parity.--For the purpose of underwriting
standards, a spouse of an individual described in paragraph (1),
(2), (3), or (4) of section 9001 shall, as nearly as
practicable, be treated like that individual.
``(3) Guaranteed issue.--Nothing in this chapter shall be
considered to require that long-term care insurance coverage be
guaranteed to an eligible individual.
``(4) Requirement that contract be fully insured.--In
addition to the requirements otherwise applicable under section
9001(9), in order to be considered a qualified long-term care
insurance contract for purposes of this chapter, a contract must
be fully insured, whether through reinsurance with other
companies or otherwise.
``(5) Higher standards allowable.--Nothing in this chapter
shall, in the case of an individual applying for long-term care
insurance coverage under this chapter after the expiration of
such individual's first opportunity to enroll, preclude the
application of underwriting standards more stringent than those
that would have applied if that opportunity had not yet expired.
``(e) Guaranteed Renewability.--The benefits and coverage made
available to eligible individuals under any insurance contract under
this chapter shall be guaranteed renewable (as defined by section 7A(2)
of the model regulations described in section 7702B(g)(2) of the
Internal Revenue Code of 1986), including the right to have insurance
remain in effect so long as premiums continue to be timely made.
However, the authority to revise premiums under this chapter shall be
available only on a class basis and only to the extent otherwise
allowable under section 9003(b).
``Sec. 9003. Contracting authority
``(a) In General.--The Office of Personnel Management shall, without
regard to section 5 of title 41 or any other statute requiring
competitive bidding, contract with one or more qualified carriers for a
policy or policies of long-term care insurance. The Office
[[Page 114 STAT. 765]]
shall ensure that each resulting contract (hereafter in this chapter
referred to as a `master contract') is awarded on the basis of
contractor qualifications, price, and reasonable competition.
``(b) Terms and Conditions.--
``(1) In general.--Each master contract under this chapter
shall contain--
``(A) a detailed statement of the benefits offered
(including any maximums, limitations, exclusions, and
other definitions of benefits);
``(B) the premiums charged (including any
limitations or other conditions on their subsequent
adjustment);
``(C) the terms of the enrollment period; and
``(D) such other terms and conditions as may be
mutually agreed to by the Office and the carrier
involved, consistent with the requirements of this
chapter.
``(2) Premiums.--Premiums charged under each master contract
entered into under this section shall reasonably and equitably
reflect the cost of the benefits provided, as determined by the
Office. The premiums shall not be adjusted during the term of
the contract unless mutually agreed to by the Office and the
carrier.
``(3) Nonrenewability.--Master contracts under this chapter
may not be made automatically renewable.
``(c) Payment of Required Benefits; Dispute Resolution.--
``(1) In general.--Each master contract under this chapter
shall require the carrier to agree--
``(A) to provide payments or benefits to an eligible
individual if such individual is entitled thereto under
the terms of the contract; and
``(B) with respect to disputes regarding claims for
payments or benefits under the terms of the contract--
``(i) to establish internal procedures
designed to expeditiously resolve such disputes;
and
``(ii) to establish, for disputes not resolved
through procedures under clause (i), procedures
for one or more alternative means of dispute
resolution involving independent third-party
review under appropriate circumstances by entities
mutually acceptable to the Office and the carrier.
``(2) Eligibility.--A carrier's determination as to whether
or not a particular individual is eligible to obtain long-term
care insurance coverage under this chapter shall be subject to
review only to the extent and in the manner provided in the
applicable master contract.
``(3) Other claims.--For purposes of applying the Contract
Disputes Act of 1978 to disputes arising under this chapter
between a carrier and the Office--
``(A) the agency board having jurisdiction to decide
an appeal relative to such a dispute shall be such board
of contract appeals as the Director of the Office of
Personnel Management shall specify in writing (after
appropriate arrangements, as described in section 8(c)
of such Act); and
``(B) <<NOTE: Courts.>> the district courts of the
United States shall have original jurisdiction,
concurrent with the United States Court of Federal
Claims, of any action described in section 10(a)(1) of
such Act relative to such a dispute.
[[Page 114 STAT. 766]]
``(4) Rule of construction.--Nothing in this chapter shall
be considered to grant authority for the Office or a third-party
reviewer to change the terms of any contract under this chapter.
``(d) Duration.--
``(1) In general.--Each master contract under this chapter
shall be for a term of 7 years, unless terminated earlier by the
Office in accordance with the terms of such contract. However,
the rights and responsibilities of the enrolled individual, the
insurer, and the Office (or duly designated third-party
administrator) under such contract shall continue with respect
to such individual until the termination of coverage of the
enrolled individual or the effective date of a successor
contract thereto.
``(2) Exception.--
``(A) Shorter duration.--In the case of a master
contract entered into before the end of the period
described in subparagraph (B), paragraph (1) shall be
applied by substituting `ending on the last day of the
7-year period described in paragraph (2)(B)' for `of 7
years'.
``(B) Definition.--The period described in this
subparagraph is the 7-year period beginning on the
earliest date as of which any long-term care insurance
coverage under this chapter becomes effective.
``(3) <<NOTE: Deadline. President.>> Congressional
notification.--No later than 180 days after receiving the second
report required under section 9006(c), the President (or his
designee) shall submit to the Committees on Government Reform
and on Armed Services of the House of Representatives and the
Committees on Governmental Affairs and on Armed Services of the
Senate, a written recommendation as to whether the program under
this chapter should be continued without modification,
terminated, or restructured. During the 180-day period following
the date on which the President (or his designee) submits the
recommendation required under the preceding sentence, the Office
of Personnel Management may not take any steps to rebid or
otherwise contract for any coverage to be available at any time
following the expiration of the 7-year period described in
paragraph (2)(B).
``(4) Full portability.--Each master contract under this
chapter shall include such provisions as may be necessary to
ensure that, once an individual becomes duly enrolled, long-term
care insurance coverage obtained by such individual pursuant to
that enrollment shall not be terminated due to any change in
status (such as separation from Government service or the
uniformed services) or ceasing to meet the requirements for
being considered a qualified relative (whether as a result of
dissolution of marriage or otherwise).
``Sec. 9004. Financing
``(a) In General.--Each eligible individual obtaining long-term care
insurance coverage under this chapter shall be responsible for 100
percent of the premiums for such coverage.
``(b) Withholdings.--
``(1) In general.--The amount necessary to pay the premiums
for enrollment may--
[[Page 114 STAT. 767]]
``(A) in the case of an employee, be withheld from
the pay of such employee;
``(B) in the case of an annuitant, be withheld from
the annuity of such annuitant;
``(C) in the case of a member of the uniformed
services described in section 9001(3), be withheld from
the pay of such member; and
``(D) in the case of a retired member of the
uniformed services described in section 9001(4), be
withheld from the retired pay or retainer pay payable to
such member.
``(2) Voluntary withholdings for qualified relatives.--
Withholdings to pay the premiums for enrollment of a qualified
relative may, upon election of the appropriate eligible
individual (described in section 9001(1)-(4)), be withheld under
paragraph (1) to the same extent and in the same manner as if
enrollment were for such individual.
``(c) Direct Payments.--All amounts withheld under this section
shall be paid directly to the carrier.
``(d) Other Forms of Payment.--Any enrollee who does not elect to
have premiums withheld under subsection (b) or whose pay, annuity, or
retired or retainer pay (as referred to in subsection (b)(1)) is
insufficient to cover the withholding required for enrollment (or who is
not receiving any regular amounts from the Government, as referred to in
subsection (b)(1), from which any such withholdings may be made, and
whose premiums are not otherwise being provided for under subsection
(b)(2)) shall pay an amount equal to the full amount of those charges
directly to the carrier.
``(e) <<NOTE: Records.>> Separate Accounting Requirement.--Each
carrier participating under this chapter shall maintain records that
permit it to account for all amounts received under this chapter
(including investment earnings on those amounts) separate and apart from
all other funds.
``(f ) Reimbursements.--
``(1) Reasonable initial costs.--
``(A) In general.--The Employees' Life Insurance
Fund is available, without fiscal year limitation, for
reasonable expenses incurred by the Office of Personnel
Management in administering this chapter before the
start of the 7-year period described in section
9003(d)(2)(B), including reasonable implementation
costs.
``(B) Reimbursement requirement.--Such Fund shall be
reimbursed, before the end of the first year of that 7-
year period, for all amounts obligated or expended under
subparagraph (A) (including lost investment income).
Such reimbursement shall be made by carriers, on a pro
rata basis, in accordance with appropriate provisions
which shall be included in master contracts under this
chapter.
``(2) Subsequent costs.--
``(A) In general.--There is hereby established in
the Employees' Life Insurance Fund a Long-Term Care
Administrative Account, which shall be available to the
Office, without fiscal year limitation, to defray
reasonable expenses incurred by the Office in
administering this chapter after the start of the 7-year
period described in section 9003(d)(2)(B).
[[Page 114 STAT. 768]]
``(B) <<NOTE: Contracts.>> Reimbursement
requirement.--Each master contract under this chapter
shall include appropriate provisions under which the
carrier involved shall, during each year, make such
periodic contributions to the Long-Term Care
Administrative Account as necessary to ensure that the
reasonable anticipated expenses of the Office in
administering this chapter during such year (adjusted to
reconcile for any earlier overestimates or
underestimates under this subparagraph) are defrayed.
``Sec. 9005. Preemption
``The terms of any contract under this chapter which relate to the
nature, provision, or extent of coverage or benefits (including payments
with respect to benefits) shall supersede and preempt any State or local
law, or any regulation issued thereunder, which relates to long-term
care insurance or contracts.
``Sec. 9006. Studies, reports, and audits
``(a) <<NOTE: Contracts.>> Provisions Relating to Carriers.--Each
master contract under this chapter shall contain provisions requiring
the carrier--
``(1) to furnish such reasonable reports as the Office of
Personnel Management determines to be necessary to enable it to
carry out its functions under this chapter; and
``(2) to permit the Office and representatives of the
General Accounting Office to examine such records of the carrier
as may be necessary to carry out the purposes of this chapter.
``(b) <<NOTE: Records. Certification.>> Provisions Relating to
Federal Agencies.--Each Federal agency shall keep such records, make
such certifications, and furnish the Office, the carrier, or both, with
such information and reports as the Office may require.
``(c) Reports by the General Accounting Office.--The General
Accounting Office shall prepare and submit to the President, the Office
of Personnel Management, and each House of Congress, before the end of
the third and fifth years during which the program under this chapter is
in effect, a written report evaluating such program. Each such report
shall include an analysis of the competitiveness of the program, as
compared to both group and individual coverage generally available to
individuals in the private insurance market. The Office shall cooperate
with the General Accounting Office to provide periodic evaluations of
the program.
``Sec. 9007. Jurisdiction of courts
``The district courts of the United States have original
jurisdiction of a civil action or claim described in paragraph (1) or
(2) of section 9003(c), after such administrative remedies as required
under such paragraph (1) or (2) (as applicable) have been exhausted, but
only to the extent judicial review is not precluded by any dispute
resolution or other remedy under this chapter.
``Sec. 9008. Administrative functions
``(a) <<NOTE: Regulations.>> In General.--The Office of Personnel
Management shall prescribe regulations necessary to carry out this
chapter.
``(b) Enrollment Periods.--The Office shall provide for periodic
coordinated enrollment, promotion, and education efforts in consultation
with the carriers.
``(c) <<NOTE: Regulations.>> Consultation.--Any regulations
necessary to effect the application and operation of this chapter with
respect to an eligible
[[Page 114 STAT. 769]]
individual described in paragraph (3) or (4) of section 9001, or a
qualified relative thereof, shall be prescribed by the Office in
consultation with the appropriate Secretary.
``(d) Informed Decisionmaking.--The Office shall ensure that each
eligible individual applying for long-term care insurance under this
chapter is furnished the information necessary to enable that individual
to evaluate the advantages and disadvantages of obtaining long-term care
insurance under this chapter, including the following:
``(1) The principal long-term care benefits and coverage
available under this chapter, and how those benefits and
coverage compare to the range of long-term care benefits and
coverage otherwise generally available.
``(2) Representative examples of the cost of long-term care,
and the sufficiency of the benefits available under this chapter
relative to those costs. The information under this paragraph
shall also include--
``(A) the projected effect of inflation on the value
of those benefits; and
``(B) a comparison of the inflation-adjusted value
of those benefits to the projected future costs of long-
term care.
``(3) Any rights individuals under this chapter may have to
cancel coverage, and to receive a total or partial refund of
premiums. The information under this paragraph shall also
include--
``(A) the projected number or percentage of
individuals likely to fail to maintain their coverage
(determined based on lapse rates experienced under
similar group long-term care insurance programs and,
when available, this chapter); and
``(B)(i) a summary description of how and when
premiums for long-term care insurance under this chapter
may be raised;
``(ii) the premium history during the last 10 years
for each qualified carrier offering long-term care
insurance under this chapter; and
``(iii) if cost increases are anticipated, the
projected premiums for a typical insured individual at
various ages.
``(4) The advantages and disadvantages of long-term care
insurance generally, relative to other means of accumulating or
otherwise acquiring the assets that may be needed to meet the
costs of long-term care, such as through tax-qualified
retirement programs or other investment vehicles.
``Sec. 9009. Cost accounting standards
``The cost accounting standards issued pursuant to section 26(f ) of
the Office of Federal Procurement Policy Act (41 U.S.C. 422(f )) shall
not apply with respect to a long-term care insurance contract under this
chapter.''.
(b) Conforming Amendment.--The analysis for part III of title 5,
United States Code, is amended by adding at the end of subpart G the
following:
``90. Long-Term Care Insurance..................................9001.''.
[[Page 114 STAT. 770]]
SEC. 1003. EFFECTIVE DATE. <<NOTE: 5 USC 9001 note.>>
The Office of Personnel Management shall take such measures as may
be necessary to ensure that long-term care insurance coverage under
title 5, United States Code, as amended by this title, may be obtained
in time to take effect not later than the first day of the first
applicable pay period of the first fiscal year which begins after the
end of the 18-month period beginning on the date of the enactment of
this Act.
TITLE II--FEDERAL RETIREMENT <<NOTE: Federal Erroneous Retirement
Coverage Corrections Act. 5 USC 8331 note.>> COVERAGE ERRORS CORRECTION
SEC. 2001. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This title may be cited as the ``Federal Erroneous
Retirement Coverage Corrections Act''.
(b) Table of Contents.--The table of contents for this title is as
follows:
TITLE II--FEDERAL RETIREMENT COVERAGE ERRORS CORRECTION
Sec. 2001. Short title; table of contents.
Sec. 2002. Definitions.
Sec. 2003. Applicability.
Sec. 2004. Irrevocability of elections.
Subtitle A--Description of Retirement Coverage Errors to Which This
Title Applies and Measures for Their Rectification
Chapter 1--Employees and Annuitants Who Should Have Been FERS Covered,
but Who Were Erroneously CSRS Covered or CSRS-Offset Covered Instead,
and Survivors of Such Employees and Annuitants
Sec. 2101. Employees.
Sec. 2102. Annuitants and survivors.
Chapter 2--Employee Who Should Have Been FERS Covered, CSRS-Offset
Covered, or CSRS Covered, but Who Was Erroneously Social Security-Only
Covered Instead
Sec. 2111. Applicability.
Sec. 2112. Correction mandatory.
Chapter 3--Employee Who Should or Could Have Been Social Security-Only
Covered but Who Was Erroneously CSRS-Offset Covered or CSRS Covered
Instead
Sec. 2121. Employee who should be Social Security-Only covered, but who
is erroneously CSRS or CSRS-Offset covered instead.
Chapter 4--Employee Who Was Erroneously FERS Covered
Sec. 2131. Employee who should be Social Security-Only covered, CSRS
covered, or CSRS-Offset covered and is not FERS-Eligible, but
who is erroneously FERS covered instead.
Sec. 2132. FERS-Eligible employee who should have been CSRS covered,
CSRS-Offset covered, or Social Security-Only covered, but who
was erroneously FERS covered instead without an election.
Sec. 2133. Retroactive effect.
Chapter 5--Employee Who Should Have Been CSRS-Offset Covered, but Who
Was Erroneously CSRS Covered Instead
Sec. 2141. Applicability.
Sec. 2142. Correction mandatory.
Chapter 6--Employee Who Should Have Been CSRS Covered, but Who Was
Erroneously CSRS-Offset Covered Instead
Sec. 2151. Applicability.
[[Page 114 STAT. 771]]
Sec. 2152. Correction mandatory.
Subtitle B--General Provisions
Sec. 2201. Identification and notification requirements.
Sec. 2202. Information to be furnished to and by authorities
administering this title.
Sec. 2203. Service credit deposits.
Sec. 2204. Provisions related to Social Security coverage of
misclassified employees.
Sec. 2205. Thrift Savings Plan treatment for certain individuals.
Sec. 2206. Certain agency amounts to be paid into or remain in the
CSRDF.
Sec. 2207. CSRS coverage determinations to be approved by OPM.
Sec. 2208. Discretionary actions by Director.
Sec. 2209. Regulations.
Subtitle C--Other Provisions
Sec. 2301. Provisions to authorize continued conformity of other Federal
retirement systems.
Sec. 2302. Authorization of payments.
Sec. 2303. Individual right of action preserved for amounts not
otherwise provided for under this title.
Subtitle D--Effective Date
Sec. 2401. Effective date.
SEC. 2002. DEFINITIONS. <<NOTE: 5 USC 8331 note.>>
For purposes of this title:
(1) Annuitant.--The term ``annuitant'' has the meaning given
such term under section 8331(9) or 8401(2) of title 5, United
States Code.
(2) CSRS.--The term ``CSRS'' means the Civil Service
Retirement System.
(3) CSRDF.--The term ``CSRDF'' means the Civil Service
Retirement and Disability Fund.
(4) CSRS covered.--The term ``CSRS covered'', with respect
to any service, means service that is subject to the provisions
of subchapter III of chapter 83 of title 5, United States Code,
other than service subject to section 8334(k) of such title.
(5) CSRS-offset covered.--The term ``CSRS-Offset covered'',
with respect to any service, means service that is subject to
the provisions of subchapter III of chapter 83 of title 5,
United States Code, and to section 8334(k) of such title.
(6) Employee.--The term ``employee'' has the meaning given
such term under section 8331(1) or 8401(11) of title 5, United
States Code.
(7) Executive director.--The term ``Executive Director of
the Federal Retirement Thrift Investment Board'' or ``Executive
Director'' means the Executive Director appointed under section
8474 of title 5, United States Code.
(8) FERS.--The term ``FERS'' means the Federal Employees'
Retirement System.
(9) FERS covered.--The term ``FERS covered'', with respect
to any service, means service that is subject to chapter 84 of
title 5, United States Code.
(10) Former employee.--The term ``former employee'' means an
individual who was an employee, but who is not an annuitant.
(11) OASDI taxes.--The term ``OASDI taxes'' means the OASDI
employee tax and the OASDI employer tax.
(12) OASDI employee tax.--The term ``OASDI employee tax''
means the tax imposed under section 3101(a) of the
[[Page 114 STAT. 772]]
Internal Revenue Code of 1986 (relating to Old-Age, Survivors
and Disability Insurance).
(13) OASDI employer tax.--The term ``OASDI employer tax''
means the tax imposed under section 3111(a) of the Internal
Revenue Code of 1986 (relating to Old-Age, Survivors and
Disability Insurance).
(14) OASDI trust funds.--The term ``OASDI trust funds''
means the Federal Old-Age and Survivors Insurance Trust Fund and
the Federal Disability Insurance Trust Fund.
(15) Office.--The term ``Office'' means the Office of
Personnel Management.
(16) Retirement coverage determination.--The term
``retirement coverage determination'' means a determination by
an employee or agent of the Government as to whether a
particular type of Government service is CSRS covered, CSRS-
Offset covered, FERS covered, or Social Security-Only covered.
(17) Retirement coverage error.--The term ``retirement
coverage error'' means an erroneous retirement coverage
determination that was in effect for a minimum period of 3 years
of service after December 31, 1986.
(18) Social security-only covered.--The term ``Social
Security-Only covered'', with respect to any service, means
Government service that--
(A) constitutes employment under section 210 of the
Social Security Act (42 U.S.C. 410); and
(B)(i) is subject to OASDI taxes; but
(ii) is not subject to CSRS or FERS.
(19) Survivor.--The term ``survivor'' has the meaning given
such term under section 8331(10) or 8401(28) of title 5, United
States Code.
(20) Thrift savings fund.--The term ``Thrift Savings Fund''
means the Thrift Savings Fund established under section 8437 of
title 5, United States Code.
SEC. 2003. APPLICABILITY. <<NOTE: 5 USC 8331 note.>>
(a) In General.--This title shall apply with respect to retirement
coverage errors that occur before, on, or after the date of the
enactment of this Act.
(b) Limitation.--Except as otherwise provided in this title, this
title shall not apply to any erroneous retirement coverage determination
that was in effect for a period of less than 3 years of service after
December 31, 1986.
SEC. 2004. IRREVOCABILITY OF ELECTIONS. <<NOTE: 5 USC 8331 note.>>
Any election made (or deemed to have been made) by an employee or
any other individual under this title shall be irrevocable.
[[Page 114 STAT. 773]]
Subtitle A--Description of Retirement Coverage Errors to Which This
Title Applies and Measures for Their Rectification
CHAPTER 1--EMPLOYEES AND ANNUITANTS WHO SHOULD HAVE BEEN FERS COVERED,
BUT WHO WERE ERRONEOUSLY CSRS COVERED OR CSRS-OFFSET COVERED INSTEAD,
AND SURVIVORS OF SUCH EMPLOYEES AND ANNUITANTS
SEC. 2101. EMPLOYEES. <<NOTE: 5 USC 8331 note.>>
(a) Applicability.--This section shall apply in the case of any
employee or former employee who should be (or should have been) FERS
covered but, as a result of a retirement coverage error, is (or was)
CSRS covered or CSRS-Offset covered instead.
(b) Uncorrected Error.--
(1) Applicability.--This subsection applies if the
retirement coverage error has not been corrected before the
effective date of the regulations described under paragraph (3).
As soon as practicable after discovery of the error, and subject
to the right of an election under paragraph (2), if CSRS covered
or CSRS-Offset covered, such individual shall be treated as
CSRS-Offset covered, retroactive to the date of the retirement
coverage error.
(2) Coverage.--
(A) Election.--Upon written notice of a retirement
coverage error, an individual may elect to be CSRS-
Offset covered or FERS covered, effective as of the date
of the retirement coverage error. <<NOTE: Deadline.>>
Such election shall be made not later than 180 days
after the date of receipt of such notice.
(B) Nonelection.--If the individual does not make an
election by the date provided under subparagraph (A), a
CSRS-Offset covered individual shall remain CSRS-Offset
covered and a CSRS covered individual shall be treated
as CSRS-Offset covered.
(3) Regulations.--The Office shall prescribe regulations to
carry out this subsection.
(c) Corrected Error.--
(1) Applicability.--This subsection applies if the
retirement coverage error was corrected before the effective
date of the regulations described under subsection (b).
(2) Coverage.--
(A) Election.--
(i) <<NOTE: Deadline. Regulations.>> CSRS-
offset covered.--Not later than 180 days after the
date of the enactment of this Act, the Office
shall prescribe regulations authorizing
individuals to elect, during the 18-month period
immediately following the effective date of such
regulations, to be CSRS-Offset covered, effective
as of the date of the retirement coverage error.
(ii) Thrift savings fund contributions.--If
under this section an individual elects to be
CSRS-Offset covered, all employee contributions to
the Thrift
[[Page 114 STAT. 774]]
Savings Fund made during the period of FERS
coverage (and earnings on such contributions) may
remain in the Thrift Savings Fund in accordance
with regulations prescribed by the Executive
Director, notwithstanding any limit under title 5,
United States Code, that would otherwise be
applicable.
(B) Previous settlement payment.--An individual who
previously received a payment ordered by a court or
provided as a settlement of claim for losses resulting
from a retirement coverage error shall not be entitled
to make an election under this subsection unless that
amount is waived in whole or in part under section 2208,
and any amount not waived is repaid.
(C) Ineligibility for election.--An individual who,
subsequent to correction of the retirement coverage
error, received a refund of retirement deductions under
section 8424 of title 5, United States Code, or a
distribution under section 8433(b), (c), or (h)(1)(A) of
title 5, United States Code, may not make an election
under this subsection.
(3) Corrective action to remain in effect.--If an individual
is ineligible to make an election or does not make an election
under paragraph (2) before the end of any time limitation under
this subsection, the corrective action taken before such time
limitation shall remain in effect.
SEC. 2102. ANNUITANTS AND SURVIVORS. <<NOTE: 5 USC 8331 note.>>
(a) In General.--This section shall apply in the case of an
individual who is--
(1) an annuitant who should have been FERS covered but, as a
result of a retirement coverage error, was CSRS covered or CSRS-
Offset covered instead; or
(2) a survivor of an employee who should have been FERS
covered but, as a result of a retirement coverage error, was
CSRS covered or CSRS-Offset covered instead.
(b) Coverage.--
(1) <<NOTE: Deadline. Regulations.>> Election.--Not later
than 180 days after the date of the enactment of this Act, the
Office shall prescribe regulations authorizing an individual
described under subsection (a) to elect CSRS-Offset coverage or
FERS coverage, effective as of the date of the retirement
coverage error.
(2) <<NOTE: Deadline.>> Time limitation.--An election under
this subsection shall be made not later than 18 months after the
effective date of the regulations prescribed under paragraph
(1).
(3) Reduced annuity.--
(A) <<NOTE: Regulations.>> Amount in account.--If
the individual elects CSRS-Offset coverage, the amount
in the employee's Thrift Savings Fund account under
subchapter III of chapter 84 of title 5, United States
Code, on the date of retirement that represents the
Government's contributions and earnings on those
contributions (whether or not such amount was
subsequently distributed from the Thrift Savings Fund)
will form the basis for a reduction in the individual's
annuity, under regulations prescribed by the Office.
(B) Reduction.--The reduced annuity to which the
individual is entitled shall be equal to an amount
which, when taken together with the amount referred to
in
[[Page 114 STAT. 775]]
subparagraph (A), would result in the present value of
the total being actuarially equivalent to the present
value of an unreduced CSRS-Offset annuity that would
have been provided the individual.
(4) Reduced benefit.--If--
(A) a surviving spouse elects CSRS-Offset benefits;
and
(B) a FERS basic employee death benefit under
section 8442(b) of title 5, United States Code, was
previously paid,
then the survivor's CSRS-Offset benefit shall be subject to a
reduction, under regulations prescribed by the Office. The
reduced annuity to which the individual is entitled shall be
equal to an amount which, when taken together with the amount of
the payment referred to under subparagraph (B) would result in
the present value of the total being actuarially equivalent to
the present value of an unreduced CSRS-Offset annuity that would
have been provided the individual.
(5) Previous settlement payment.--An individual who
previously received a payment ordered by a court or provided as
a settlement of claim for losses resulting from a retirement
coverage error may not make an election under this subsection
unless repayment of that amount is waived in whole or in part
under section 2208, and any amount not waived is repaid.
(c) Nonelection.--If the individual does not make an election under
subsection (b) before any time limitation under this section, the
retirement coverage shall be subject to the following rules:
(1) Corrective action previously taken.--If corrective
action was taken before the end of any time limitation under
this section, that corrective action shall remain in effect.
(2) Corrective action not previously taken.--If corrective
action was not taken before such time limitation, the employee
shall be CSRS-Offset covered, retroactive to the date of the
retirement coverage error.
CHAPTER 2--EMPLOYEE WHO SHOULD HAVE BEEN FERS COVERED, CSRS-OFFSET
COVERED, OR CSRS COVERED, BUT WHO WAS ERRONEOUSLY SOCIAL SECURITY-ONLY
COVERED INSTEAD
SEC. 2111. APPLICABILITY. <<NOTE: 5 USC 8331 note.>>
This chapter shall apply in the case of any employee who--
(1) should be (or should have been) FERS covered but, as a
result of a retirement coverage error, is (or was) Social
Security-Only covered instead;
(2) should be (or should have been) CSRS-Offset covered but,
as a result of a retirement coverage error, is (or was) Social
Security-Only covered instead; or
(3) should be (or should have been) CSRS covered but, as a
result of a retirement coverage error, is (or was) Social
Security-Only covered instead.
SEC. 2112. CORRECTION MANDATORY. <<NOTE: 5 USC 8331 note.>>
(a) Uncorrected Error.--If the retirement coverage error has not
been corrected, as soon as practicable after discovery of the error,
such individual shall be covered under the correct retirement coverage,
effective as of the date of the retirement coverage error.
[[Page 114 STAT. 776]]
(b) Corrected Error.--If the retirement coverage error has been
corrected, the corrective action previously taken shall remain in
effect.
CHAPTER 3--EMPLOYEE WHO SHOULD OR COULD HAVE BEEN SOCIAL SECURITY-ONLY
COVERED BUT WHO WAS ERRONEOUSLY CSRS-OFFSET COVERED OR CSRS COVERED
INSTEAD
SEC. 2121. <<NOTE: 5 USC 8331 note.>> EMPLOYEE WHO SHOULD BE SOCIAL
SECURITY-ONLY COVERED, BUT WHO IS ERRONEOUSLY CSRS OR CSRS-
OFFSET COVERED INSTEAD.
(a) Applicability.--This section applies in the case of a retirement
coverage error in which a Social Security-Only covered employee was
erroneously CSRS covered or CSRS-Offset covered.
(b) Uncorrected Error.--
(1) Applicability.--This subsection applies if the
retirement coverage error has not been corrected before the
effective date of the regulations described in paragraph (3).
(2) Coverage.--In the case of an individual who is
erroneously CSRS covered, as soon as practicable after discovery
of the error, and subject to the right of an election under
paragraph (3), such individual shall be CSRS-Offset covered,
effective as of the date of the retirement coverage error.
(3) Election.--
(A) In general.--Upon written notice of a retirement
coverage error, an individual may elect to be CSRS-
Offset covered or Social Security-Only covered,
effective as of the date of the retirement coverage
error. <<NOTE: Deadline.>> Such election shall be made
not later than 180 days after the date of receipt of
such notice.
(B) Nonelection.--If the individual does not make an
election before the date provided under subparagraph
(A), the individual shall remain CSRS-Offset covered.
(C) Regulations.--The Office shall prescribe
regulations to carry out this paragraph.
(c) Corrected Error.--
(1) Applicability.--This subsection applies if the
retirement coverage error was corrected before the effective
date of the regulations described under subsection (b)(3).
(2) <<NOTE: Deadline. Regulations.>> Election.--Not later
than 180 days after the date of the enactment of this Act, the
Office shall prescribe regulations authorizing individuals to
elect, during the 18-month period immediately following the
effective date of such regulations, to be CSRS-Offset covered or
Social Security-Only covered, effective as of the date of the
retirement coverage error.
(3) Nonelection.--If an eligible individual does not make an
election under paragraph (2) before the end of any time
limitation under this subsection, the corrective action taken
before such time limitation shall remain in effect.
[[Page 114 STAT. 777]]
CHAPTER 4--EMPLOYEE WHO WAS ERRONEOUSLY FERS COVERED
SEC. 2131. <<NOTE: 5 USC 8331 note.>> EMPLOYEE WHO SHOULD BE SOCIAL
SECURITY-ONLY COVERED, CSRS COVERED, OR CSRS-OFFSET COVERED
AND IS NOT FERS-ELIGIBLE, BUT WHO IS ERRONEOUSLY FERS
COVERED INSTEAD.
(a) Applicability.--This section applies in the case of a retirement
coverage error in which a Social Security-Only covered, CSRS covered, or
CSRS-Offset covered employee not eligible to elect FERS coverage under
authority of section 8402(c) of title 5, United States Code, was
erroneously FERS covered.
(b) Uncorrected Error.--
(1) Applicability.--This subsection applies if the
retirement coverage error has not been corrected before the
effective date of the regulations described in paragraph (2).
(2) Coverage.--
(A) Election.--
(i) In general.--Upon written notice of a
retirement coverage error, an individual may elect
to remain FERS covered or to be Social Security-
Only covered, CSRS covered, or CSRS-Offset
covered, as would have applied in the absence of
the erroneous retirement coverage determination,
effective as of the date of the retirement
coverage error. <<NOTE: Deadline.>> Such election
shall be made not later than 180 days after the
date of receipt of such notice.
(ii) Treatment of fers election.--An election
of FERS coverage under this subsection is deemed
to be an election under section 301 of the Federal
Employees Retirement System Act of 1986 (5 U.S.C.
8331 note; Public Law 99-335; 100 Stat. 599).
(B) Nonelection.--If the individual does not make an
election before the date provided under subparagraph
(A), the individual shall remain FERS covered, effective
as of the date of the retirement coverage error.
(3) Employee contributions in thrift savings fund.--If under
this section, an individual elects to be Social Security-Only
covered, CSRS covered, or CSRS-Offset covered, all employee
contributions to the Thrift Savings Fund made during the period
of erroneous FERS coverage (and all earnings on such
contributions) may remain in the Thrift Savings Fund in
accordance with regulations prescribed by the Executive
Director, notwithstanding any limit under section 8351 or 8432
of title 5, United States Code.
(4) Regulations.--Except as provided under paragraph (3),
the Office shall prescribe regulations to carry out this
subsection.
(c) Corrected Error.--
(1) Applicability.--This subsection applies if the
retirement coverage error was corrected before the effective
date of the regulations described under paragraph (2).
(2) <<NOTE: Deadline. Regulations.>> Election.--Not later
than 180 days after the date of the enactment of this Act, the
Office shall prescribe regulations authorizing individuals to
elect, during the 18-month period immediately following the
effective date of such regulations to remain Social Security-
Only covered, CSRS covered,
[[Page 114 STAT. 778]]
or CSRS-Offset covered, or to be FERS covered, effective as of
the date of the retirement coverage error.
(3) Nonelection.--If an eligible individual does not make an
election under paragraph (2), the corrective action taken before
the end of any time limitation under this subsection shall
remain in effect.
(4) Treatment of fers election.--An election of FERS
coverage under this subsection is deemed to be an election under
section 301 of the Federal Employees Retirement System Act of
1986 (5 U.S.C. 8331 note; Public Law 99-335; 100 Stat. 599).
SEC. 2132. <<NOTE: 5 USC 8331 note.>> FERS-ELIGIBLE EMPLOYEE WHO SHOULD
HAVE BEEN CSRS COVERED, CSRS-OFFSET COVERED, OR SOCIAL
SECURITY-ONLY COVERED, BUT WHO WAS ERRONEOUSLY FERS COVERED
INSTEAD WITHOUT AN ELECTION.
(a) In General.--
(1) FERS election prevented.--If an individual was prevented
from electing FERS coverage because the individual was
erroneously FERS covered during the period when the individual
was eligible to elect FERS under title III of the Federal
Employees Retirement System Act or the Federal Employees'
Retirement System Open Enrollment Act of 1997 (Public Law 105-
61; 111 Stat. 1318 et seq.), the individual--
(A) is deemed to have elected FERS coverage; and
(B) shall remain covered by FERS, unless the
individual declines, under regulations prescribed by the
Office, to be FERS covered.
(2) Declining fers coverage.--If an individual described
under paragraph (1)(B) declines to be FERS covered, such
individual shall be CSRS covered, CSRS-Offset covered, or Social
Security-Only covered, as would apply in the absence of a FERS
election, effective as of the date of the erroneous retirement
coverage determination.
(b) Employee Contributions in Thrift Savings Fund.--If under this
section, an individual declines to be FERS covered and instead is Social
Security-Only covered, CSRS covered, or CSRS-Offset covered, as would
apply in the absence of a FERS election, all employee contributions to
the Thrift Savings Fund made during the period of erroneous FERS
coverage (and all earnings on such contributions) may remain in the
Thrift Savings Fund in accordance with regulations prescribed by the
Executive Director, notwithstanding any limit under title 5, United
States Code, that would otherwise be applicable.
(c) Inapplicability of Duration of Erroneous Coverage.--This section
shall apply regardless of the length of time the erroneous coverage
determination remained in effect.
SEC. 2133. <<NOTE: 5 USC 8331 note.>> RETROACTIVE EFFECT.
This <<NOTE: Effective date.>> chapter shall be effective as of
January 1, 1987, except that section 2132 shall not apply to individuals
who made or were deemed to have made elections similar to those provided
in this section under regulations prescribed by the Office before the
effective date of this title.
[[Page 114 STAT. 779]]
CHAPTER 5--EMPLOYEE WHO SHOULD HAVE BEEN CSRS-OFFSET COVERED, BUT WHO
WAS ERRONEOUSLY CSRS COVERED INSTEAD
SEC. 2141. APPLICABILITY. <<NOTE: 5 USC 8331 note.>>
This chapter shall apply in the case of any employee who should be
(or should have been) CSRS-Offset covered but, as a result of a
retirement coverage error, is (or was) CSRS covered instead.
SEC. 2142. CORRECTION MANDATORY. <<NOTE: 5 USC 8331 note.>>
(a) Uncorrected Error.--If the retirement coverage error has not
been corrected, as soon as practicable after discovery of the error,
such individual shall be covered under the correct retirement coverage,
effective as of the date of the retirement coverage error.
(b) Corrected Error.--If the retirement coverage error has been
corrected before the effective date of this title, the corrective action
taken before such date shall remain in effect.
CHAPTER 6--EMPLOYEE WHO SHOULD HAVE BEEN CSRS COVERED, BUT WHO WAS
ERRONEOUSLY CSRS-OFFSET COVERED INSTEAD
SEC. 2151. APPLICABILITY. <<NOTE: 5 USC 8331 note.>>
This chapter shall apply in the case of any employee who should be
(or should have been) CSRS covered but, as a result of a retirement
coverage error, is (or was) CSRS-Offset covered instead.
SEC. 2152. CORRECTION MANDATORY. <<NOTE: 5 USC 8331 note.>>
(a) Uncorrected Error.--If the retirement coverage error has not
been corrected, as soon as practicable after discovery of the error,
such individual shall be covered under the correct retirement coverage,
effective as of the date of the retirement coverage error.
(b) Corrected Error.--If the retirement coverage error has been
corrected before the effective date of this title, the corrective action
taken before such date shall remain in effect.
Subtitle B--General Provisions
SEC. 2201. IDENTIFICATION AND NOTIFICATION REQUIREMENTS. <<NOTE: 5 USC
8331 note.>>
Government agencies shall take all such measures as may be
reasonable and appropriate to promptly identify and notify individuals
who are (or have been) affected by a retirement coverage error of their
rights under this title.
SEC. 2202. <<NOTE: 5 USC 8331 note.>> INFORMATION TO BE FURNISHED TO
AND BY AUTHORITIES ADMINISTERING THIS TITLE.
(a) Applicability.--The authorities identified in this subsection
are--
(1) the Director of the Office of Personnel Management;
(2) the Commissioner of Social Security; and
(3) the Executive Director of the Federal Retirement Thrift
Investment Board.
[[Page 114 STAT. 780]]
(b) Authority To Obtain Information.--Each authority identified in
subsection (a) may secure directly from any department or agency of the
United States information necessary to enable such authority to carry
out its responsibilities under this title. Upon request of the authority
involved, the head of the department or agency involved shall furnish
that information to the requesting authority.
(c) Authority To Provide Information.--Each authority identified in
subsection (a) may provide directly to any department or agency of the
United States all information such authority believes necessary to
enable the department or agency to carry out its responsibilities under
this title.
(d) Limitation; Safeguards.--Each of the respective authorities
under subsection (a) shall--
(1) request or provide only such information as that
authority considers necessary; and
(2) establish, by regulation or otherwise, appropriate
safeguards to ensure that any information obtained under this
section shall be used only for the purpose authorized.
SEC. 2203. SERVICE CREDIT DEPOSITS. <<NOTE: 5 USC 8331 note.>>
(a) CSRS Deposit.--In the case of a retirement coverage error in
which--
(1) a FERS covered employee was erroneously CSRS covered or
CSRS-Offset covered;
(2) the employee made a service credit deposit under the
CSRS rules; and
(3) there is a subsequent retroactive change to FERS
coverage,
the excess of the amount of the CSRS civilian or military service credit
deposit over the FERS civilian or military service credit deposit,
together with interest computed in accordance with paragraphs (2) and
(3) of section 8334(e) of title 5, United States Code, and regulations
prescribed by the Office, shall be paid to the employee, the annuitant
or, in the case of a deceased employee, to the individual entitled to
lump-sum benefits under section 8424(d) of title 5, United States Code.
(b) FERS Deposit.--
(1) Applicability.--This subsection applies in the case of
an erroneous retirement coverage determination in which--
(A) the employee owed a service credit deposit under
section 8411(f ) of title 5, United States Code; and
(B)(i) there is a subsequent retroactive change to
CSRS or CSRS-Offset coverage; or
(ii) the service becomes creditable under chapter 83
of title 5, United States Code.
(2) Reduced annuity.--
(A) <<NOTE: Regulations.>> In general.--If at the
time of commencement of an annuity there is remaining
unpaid CSRS civilian or military service credit deposit
for service described under paragraph (1), the annuity
shall be reduced based upon the amount unpaid together
with interest computed in accordance with section
8334(e)(2) and (3) of title 5, United States Code, and
regulations prescribed by the Office.
(B) Amount.--The reduced annuity to which the
individual is entitled shall be equal to an amount that,
when
[[Page 114 STAT. 781]]
taken together with the amount referred to under
subparagraph (A), would result in the present value of
the total being actuarially equivalent to the present
value of the unreduced annuity benefit that would have
been provided the individual.
(3) Survivor annuity.--
(A) In general.--If at the time of commencement of a
survivor annuity, there is remaining unpaid any CSRS
service credit deposit described under paragraph (1),
and there has been no actuarial reduction in an annuity
under paragraph (2), the survivor annuity shall be
reduced based upon the amount unpaid together with
interest computed in accordance with section 8334(e)(2)
and (3) of title 5, United States Code, and regulations
prescribed by the Office.
(B) Amount.--The reduced survivor annuity to which
the individual is entitled shall be equal to an amount
that, when taken together with the amount referred to
under subparagraph (A), would result in the present
value of the total being actuarially equivalent to the
present value of an unreduced survivor annuity benefit
that would have been provided the individual.
SEC. 2204. <<NOTE: 5 USC 8331 note.>> PROVISIONS RELATED TO SOCIAL
SECURITY COVERAGE OF MISCLASSIFIED EMPLOYEES.
(a) Definitions.--In this section, the term--
(1) ``covered individual'' means any employee, former
employee, or annuitant who--
(A) is or was employed erroneously subject to CSRS
coverage as a result of a retirement coverage error; and
(B) is or was retroactively converted to CSRS-offset
coverage, FERS coverage, or Social Security-Only
coverage; and
(2) ``excess CSRS deduction amount'' means an amount equal
to the difference between the CSRS deductions withheld and the
CSRS-Offset or FERS deductions, if any, due with respect to a
covered individual during the entire period the individual was
erroneously subject to CSRS coverage as a result of a retirement
coverage error.
(b) Reports to Commissioner of Social Security.--
(1) In general.--In order to carry out the Commissioner of
Social Security's responsibilities under title II of the Social
Security Act, the Commissioner may request the head of each
agency that employs or employed a covered individual to report
(in coordination with the Office of Personnel Management) in
such form and within such timeframe as the Commissioner may
specify, any or all of--
(A) the total wages (as defined in section 3121(a)
of the Internal Revenue Code of 1986) paid to such
individual during each year of the entire period of the
erroneous CSRS coverage; and
(B) such additional information as the Commissioner
may require for the purpose of carrying out the
Commissioner's responsibilities under title II of the
Social Security Act (42 U.S.C. 401 et seq.).
[[Page 114 STAT. 782]]
(2) Compliance.--The head of an agency or the Office shall
comply with a request from the Commissioner under paragraph (1).
(3) Wages.--For purposes of section 201 of the Social
Security Act (42 U.S.C. 401), wages reported under this
subsection shall be deemed to be wages reported to the Secretary
of the Treasury or the Secretary's delegates pursuant to
subtitle F of the Internal Revenue Code of 1986.
(c) Payment Relating to OASDI Employee Taxes.--The Office shall
transfer from the Civil Service Retirement and Disability Fund to the
General Fund of the Treasury an amount equal to the lesser of the excess
CSRS deduction amount or the OASDI taxes due for covered individuals (as
adjusted by amounts transferred relating to applicable OASDI employee
taxes as a result of corrections made, including corrections made before
the date of the enactment of this Act). If the excess CSRS deductions
exceed the OASDI taxes, any difference shall be paid to the covered
individual or survivors, as appropriate.
(d) Payment of OASDI Employer Taxes.--
(1) In general.--Each employing agency shall pay an amount
equal to the OASDI employer taxes owed with respect to covered
individuals during the applicable period of erroneous coverage
(as adjusted by amounts transferred for the payment of such
taxes as a result of corrections made, including corrections
made before the date of the enactment of this Act).
(2) Payment.--Amounts paid under this subsection shall be
determined subject to any limitation under section 6501 of the
Internal Revenue Code of 1986.
SEC. 2205. <<NOTE: 5 USC 8331 note.>> THRIFT SAVINGS PLAN TREATMENT FOR
CERTAIN INDIVIDUALS.
(a) Applicability.--This section applies to an individual who--
(1) is eligible to make an election of coverage under
section 2101 or 2102, and only if FERS coverage is elected (or
remains in effect) for the employee involved; or
(2) is described in section 2111, and makes or has made
retroactive employee contributions to the Thrift Savings Fund
under regulations prescribed by the Executive Director.
(b) Payment Into Thrift Savings Fund.--
(1) In general.--
(A) Payment.--With respect to an individual to whom
this section applies, the employing agency shall pay to
the Thrift Savings Fund under subchapter III of chapter
84 of title 5, United States Code, for credit to the
account of the employee involved, an amount equal to the
earnings which are disallowed under section 8432a(a)(2)
of such title on the employee's retroactive
contributions to such Fund.
(B) Amount.--Earnings under subparagraph (A) shall
be computed in accordance with the procedures for
computing lost earnings under section 8432a of title 5,
United States Code. The amount paid by the employing
agency shall be treated for all purposes as if that
amount had actually been earned on the basis of the
employee's contributions.
(C) Exceptions.--If an individual made retroactive
contributions before the effective date of the
regulations
[[Page 114 STAT. 783]]
under section 2101(c), the Director may provide for an
alternative calculation of lost earnings to the extent
that a calculation under subparagraph (B) is not
administratively feasible. The alternative calculation
shall yield an amount that is as close as practicable to
the amount computed under subparagraph (B), taking into
account earnings previously paid.
(2) Additional employee contribution.--In cases in which the
retirement coverage error was corrected before the effective
date of the regulations under section 2101(c), the employee
involved shall have an additional opportunity to make
retroactive contributions for the period of the retirement
coverage error (subject to applicable limits), and such
contributions (including any contributions made after the date
of the correction) shall be treated in accordance with paragraph
(1).
(c) Regulations.--
(1) Executive director.--The Executive Director shall
prescribe regulations appropriate to carry out this section
relating to retroactive employee contributions and payments made
on or after the effective date of the regulations under section
2101(c).
(2) Office.--The Office, in consultation with the Federal
Retirement Thrift Investment Board, shall prescribe regulations
appropriate to carry out this section relating to the
calculation of lost earnings on retroactive employee
contributions made before the effective date of the regulations
under section 2101(c).
SEC. 2206. <<NOTE: 5 USC 8331 note.>> CERTAIN AGENCY AMOUNTS TO BE PAID
INTO OR REMAIN IN THE CSRDF.
(a) Certain Excess Agency Contributions To Remain in the CSRDF.--
(1) In general.--Any amount described under paragraph (2)
shall--
(A) remain in the CSRDF; and
(B) may not be paid or credited to an agency.
(2) Amounts.--Paragraph (1) refers to any amount of
contributions made by an agency under section 8423 of title 5,
United States Code, on behalf of any employee, former employee,
or annuitant (or survivor of such employee, former employee, or
annuitant) who makes an election to correct a retirement
coverage error under this title, that the Office determines to
be excess as a result of such election.
(b) Additional Employee Retirement Deductions To Be Paid by
Agency.--If a correction in a retirement coverage error results in an
increase in employee deductions under section 8334 or 8422 of title 5,
United States Code, that cannot be fully paid by a reallocation of
otherwise available amounts previously deducted from the employee's pay
as employment taxes or retirement deductions, the employing agency--
(1) shall pay the required additional amount into the CSRDF;
and
(2) shall not seek repayment of that amount from the
employee, former employee, annuitant, or survivor.
[[Page 114 STAT. 784]]
SEC. 2207. <<NOTE: 5 USC 8331 note.>> CSRS COVERAGE DETERMINATIONS TO
BE APPROVED BY OPM.
No agency shall place an individual under CSRS coverage unless--
(1) the individual has been employed with CSRS coverage
within the preceding 365 days; or
(2) the Office has agreed in writing that the agency's
coverage determination is correct.
SEC. 2208. DISCRETIONARY ACTIONS BY DIRECTOR. <<NOTE: 5 USC 8331
note.>>
(a) In General.--The Director of the Office of Personnel Management
may--
(1) extend the deadlines for making elections under this
title in circumstances involving an individual's inability to
make a timely election due to a cause beyond the individual's
control;
(2) provide for the reimbursement of necessary and
reasonable expenses incurred by an individual with respect to
settlement of a claim for losses resulting from a retirement
coverage error, including attorney's fees, court costs, and
other actual expenses;
(3) compensate an individual for monetary losses that are a
direct and proximate result of a retirement coverage error,
excluding claimed losses relating to forgone contributions and
earnings under the Thrift Savings Plan under subchapter III of
chapter 84 of title 5, United States Code, and all other
investment opportunities; and
(4) waive payments required due to correction of a
retirement coverage error under this title.
(b) Similar Actions.--In exercising the authority under this
section, the Director shall, to the extent practicable, provide for
similar actions in situations involving similar circumstances.
(c) Judicial Review.--Actions taken under this section are final and
conclusive, and are not subject to administrative or judicial review.
(d) Regulations.--The Office of Personnel Management shall prescribe
regulations regarding the process and criteria used in exercising the
authority under this section.
(e) <<NOTE: Deadline.>> Report.--The Office of Personnel Management
shall, not later than 180 days after the date of the enactment of this
Act, and annually thereafter for each year in which the authority
provided in this section is used, submit a report to each House of
Congress on the operation of this section.
SEC. 2209. REGULATIONS. <<NOTE: 5 USC 8331 note.>>
(a) In General.--In addition to the regulations specifically
authorized in this title, the Office may prescribe such other
regulations as are necessary for the administration of this title.
(b) Former Spouse.--The regulations prescribed under this title
shall provide for protection of the rights of a former spouse with
entitlement to an apportionment of benefits or to survivor benefits
based on the service of the employee.
[[Page 114 STAT. 785]]
Subtitle C--Other Provisions
SEC. 2301. <<NOTE: 5 USC 8331 note.>> PROVISIONS TO AUTHORIZE CONTINUED
CONFORMITY OF OTHER FEDERAL RETIREMENT SYSTEMS.
(a) <<NOTE: Applicability.>> Foreign Service.--Sections 827 and 851
of the Foreign Service Act of 1980 (22 U.S.C. 4067 and 4071) shall apply
with respect to this title in the same manner as if this title were part
of--
(1) the Civil Service Retirement System, to the extent this
title relates to the Civil Service Retirement System; and
(2) the Federal Employees' Retirement System, to the extent
this title relates to the Federal Employees' Retirement System.
(b) <<NOTE: Applicability.>> Central Intelligence Agency.--Sections
292 and 301 of the Central Intelligence Agency Retirement Act (50 U.S.C.
2141 and 2151) shall apply with respect to this title in the same manner
as if this title were part of--
(1) the Civil Service Retirement System, to the extent this
title relates to the Civil Service Retirement System; and
(2) the Federal Employees' Retirement System, to the extent
this title relates to the Federal Employees' Retirement System.
SEC. 2302. AUTHORIZATION OF PAYMENTS. <<NOTE: 5 USC 8331 note.>>
All payments authorized or required by this title to be paid from
the Civil Service Retirement and Disability Fund, together with
administrative expenses incurred by the Office in administering this
title, shall be deemed to have been authorized to be paid from that
Fund, which is appropriated for the payment thereof.
SEC. 2303. INDIVIDUAL RIGHT OF ACTION PRESERVED FOR AMOUNTS NOT
OTHERWISE PROVIDED FOR UNDER THIS TITLE. <<NOTE: 5 USC 8331
note.>>
Nothing in this title shall preclude an individual from bringing a
claim against the Government of the United States which such individual
may have under section 1346(b) or chapter 171 of title 28, United States
Code, or any other provision of law (except to the extent the claim is
for any amounts otherwise provided for under this title).
[[Page 114 STAT. 786]]
Subtitle D--Effective Date
SEC. 2401. EFFECTIVE DATE. <<NOTE: 5 USC 8331 note.>>
Except as otherwise provided in this title, this title shall take
effect on the date of the enactment of this Act.
Approved September 19, 2000.
LEGISLATIVE HISTORY--H.R. 4040 (S. 2420):
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HOUSE REPORTS: No. 106-610, Pt. 1 (Comm. on Government Reform).
SENATE REPORTS: No. 106-344 accompanying S. 2420 (Comm. on Governmental
Affairs).
CONGRESSIONAL RECORD, Vol. 146 (2000):
May 9, considered and passed House.
July 25, considered and passed Senate, amended, in lieu of
S. 2420.
July 27, House concurred in Senate amendments with
amendments.
Senate concurred in House amendments.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000):
Sept. 19, Presidential remarks and statement.
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