Federal Long Term Care Insurance Program
HR 4040 EAS
In the Senate of the United States,
July 25, 2000.
Resolved, That the bill from the House of Representatives (H.R.
4040) entitled `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, and for other purposes.', do pass with the following
AMENDMENTS:
Strike out all after the enacting clause and insert:
TITLE I--FEDERAL LONG-TERM CARE INSURANCE
SEC. 1001. SHORT TITLE.
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:
- EMPLOYEE- The term 'employee' means--
- an employee as defined by section 8901(1); and
- an individual described in section 2105(e),
but does not include an individual employed by the government of the District of Columbia.
- 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.
- 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--
- on active duty or full-time National Guard duty for a period
of more than 30 days; and
- a member of the Selected Reserve.
- 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.
- QUALIFIED RELATIVE- The term 'qualified relative' means each of
the following:
- The spouse of an individual described in paragraph (1), (2), (3), or (4).
- A parent, stepparent, or parent-in-law of an individual described in paragraph (1) or (3).
- 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.
- An individual having such other relationship to an individual
described in paragraph (1), (2), (3), or (4) as the Office may by
regulation prescribe.
- ELIGIBLE INDIVIDUAL- The term 'eligible individual' refers to
an individual described in paragraph (1), (2), (3), (4), or (5).
- 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).
- STATE- The term 'State' includes the District of Columbia.
- 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.
- APPROPRIATE SECRETARY- The term `appropriate Secretary' means--
- except as otherwise provided in this paragraph, the Secretary of Defense;
- with respect to the Coast Guard when it is not operating as a service of the Navy, the Secretary of Transportation;
- with respect to the commissioned corps of the National Oceanic and Atmospheric Administration, the Secretary of Commerce; and
- with respect to the commissioned corps of the Public Health Service, the Secretary of Health and Human Services.
Sec. 9002. Availability of insurance
- 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.
- GENERAL REQUIREMENTS- Long-term care insurance may not be offered
under this chapter unless--
- the only coverage provided is under qualified long-term care insurance contracts; and
- each insurance contract under which any such coverage is provided is issued by a qualified carrier.
- 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.
- UNDERWRITING STANDARDS-
- 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.
- 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.
- GUARANTEED ISSUE- Nothing in this chapter shall be considered
to require that long-term care insurance coverage be guaranteed to an
eligible individual.
- 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.
- 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
- 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 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.
- TERMS AND CONDITIONS-
- IN GENERAL- Each master contract under this chapter shall contain--
- a detailed statement of the benefits offered (including any maximums, limitations, exclusions, and other definitions of benefits);
- the premiums charged (including any limitations or other conditions on their subsequent adjustment);
- the terms of the enrollment period; and
- 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.
- 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.
- NONRENEWABILITY- Master contracts under this chapter may not be
made automatically renewable.
- PAYMENT OF REQUIRED BENEFITS; DISPUTE RESOLUTION-
- IN GENERAL- Each master contract under this chapter shall
require the carrier to agree--
- to provide payments or benefits to an eligible individual if such individual is entitled thereto under the terms of the contract; and
- with respect to disputes regarding claims for payments or
benefits under the terms of the contract--
- to establish internal procedures designed to expeditiously
resolve such disputes; and
- 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.
- 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.
- OTHER CLAIMS- For purposes of applying the Contract Disputes
Act of 1978 to disputes arising under this chapter between a carrier and the
Office--
- 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
- 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.
- 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.
- DURATION-
- 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.
- EXCEPTION-
- 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'.
- 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.
- 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).
- 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
- 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.
- WITHHOLDINGS-
- IN GENERAL- The amount necessary to pay the premiums for
enrollment may--
- in the case of an employee, be withheld from the pay of such employee;
- in the case of an annuitant, be withheld from the annuity of such annuitant;
- in the case of a member of the uniformed services described in section 9001(3), be withheld from the pay of such member; and
- 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.
- 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.
- DIRECT PAYMENTS- All amounts withheld under this section shall be
paid directly to the carrier.
- 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.
- 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.
- REIMBURSEMENTS-
- REASONABLE INITIAL COSTS-
- 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.
- 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.
- SUBSEQUENT COSTS-
- 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).
- 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
- PROVISIONS RELATING TO CARRIERS- Each master contract under this
chapter shall contain provisions requiring the carrier--
- 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.
- 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.
- 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.
- 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
- IN GENERAL- The Office of Personnel Management shall prescribe
regulations necessary to carry out this chapter.
- ENROLLMENT PERIODS- The Office shall provide for periodic
coordinated enrollment, promotion, and education efforts in consultation with
the carriers.
- CONSULTATION- Any regulations necessary to effect the application
and operation of this chapter with respect to an eligible 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.
- 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:
- 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.
- 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--
- the projected effect of inflation on the value of those
benefits; and
- a comparison of the inflation-adjusted value of those
benefits to the projected future costs of long-term care.
- 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--
- 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
- (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.
- 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.'.
SEC. 1003. EFFECTIVE DATE.
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 COVERAGE ERRORS CORRECTION
SEC. 2001. SHORT TITLE; TABLE OF CONTENTS.
- SHORT TITLE- This title may be cited as the 'Federal Erroneous Retirement Coverage Corrections Act'.
- 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.
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.
For purposes of this title:
- ANNUITANT- The term 'annuitant' has the meaning given such term
under section 8331(9) or 8401(2) of title 5, United States Code.
- CSRS- The term 'CSRS' means the Civil Service Retirement
System.
- CSRDF- The term 'CSRDF' means the Civil Service Retirement and
Disability Fund.
- 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.
- 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.
- EMPLOYEE- The term 'employee' has the meaning given such term
under section 8331(1) or 8401(11) of title 5, United States Code.
- 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.
- FERS- The term 'FERS' means the Federal Employees' Retirement
System.
- 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.
- FORMER EMPLOYEE- The term 'former employee' means an individual
who was an employee, but who is not an annuitant.
- OASDI TAXES- The term 'OASDI taxes' means the OASDI employee
tax and the OASDI employer tax.
- OASDI EMPLOYEE TAX- The term `'ASDI employee tax' means the tax
imposed under section 3101(a) of the Internal Revenue Code of 1986 (relating
to Old-Age, Survivors and Disability Insurance).
- 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).
- 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.
- OFFICE- The term 'Office' means the Office of Personnel
Management.
- 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.
- 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.
- SOCIAL SECURITY-ONLY COVERED- The term `Social Security-Only
covered', with respect to any service, means Government service
that--
- constitutes employment under section 210 of the Social
Security Act (42 U.S.C. 410); and
- (i) is subject to OASDI taxes; but
(ii) is not subject to CSRS or FERS.
- SURVIVOR- The term `survivor' has the meaning given such term
under section 8331(10) or 8401(28) of title 5, United States
Code.
- 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.
- IN GENERAL- This title shall apply with respect to retirement
coverage errors that occur before, on, or after the date of enactment of this
Act.
- 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.
Any election made (or deemed to have been made) by an employee or any
other individual under this title shall be irrevocable.
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.
- 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.
- UNCORRECTED ERROR-
- 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.
- COVERAGE-
- 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. Such election
shall be made not later than 180 days after the date of receipt of such
notice.
- 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.
- REGULATIONS- The Office shall prescribe regulations to carry out
this subsection.
- CORRECTED ERROR-
- APPLICABILITY- This subsection applies if the retirement
coverage error was corrected before the effective date of the regulations
described under subsection (b).
- COVERAGE-
- ELECTION-
- CSRS-OFFSET COVERED- Not later than 180 days after the date
of 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.
- THRIFT SAVINGS FUND CONTRIBUTIONS- If under this section an
individual elects to be CSRS-Offset covered, all employee contributions
to the Thrift 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 that would otherwise be
applicable.
- 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.
- 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.
- 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.
- IN GENERAL- This section shall apply in the case of an individual who is--
- 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
- 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.
- COVERAGE-
- ELECTION- Not later than 180 days after the date of 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.
- 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).
- REDUCED ANNUITY-
- 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.
- 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 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.
- REDUCED BENEFIT- If--
- a surviving spouse elects CSRS-Offset benefits; and
- 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.
- 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.
- 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:
- 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.
- 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.
This chapter shall apply in the case of any employee who--
- 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;
- 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
- 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.
- 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.
- 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. EMPLOYEE WHO SHOULD BE SOCIAL SECURITY-ONLY COVERED, BUT WHO
IS ERRONEOUSLY CSRS OR CSRS-OFFSET COVERED INSTEAD.
- 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.
- UNCORRECTED ERROR-
- APPLICABILITY- This subsection applies if the retirement
coverage error has not been corrected before the effective date of the
regulations described in paragraph (3).
- 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.
- ELECTION-
- 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. Such election shall be made not later than 180 days after the date
of receipt of such notice.
- NONELECTION- If the individual does not make an election
before the date provided under subparagraph (A), the individual shall
remain CSRS-Offset covered.
- REGULATIONS- The Office shall prescribe regulations to carry
out this paragraph.
- CORRECTED ERROR-
- APPLICABILITY- This subsection applies if the retirement
coverage error was corrected before the effective date of the regulations
described under subsection (b)(3).
- ELECTION- Not later than 180 days after the date of 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.
- 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.
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.
- 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.
- UNCORRECTED ERROR-
- APPLICABILITY- This subsection applies if the retirement
coverage error has not been corrected before the effective date of the
regulations described in paragraph (2).
- COVERAGE-
- ELECTION-
- 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. Such election shall be made not later than 180 days after the
date of receipt of such notice.
- 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).
- 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.
- 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.
- REGULATIONS- Except as provided under paragraph (3), the Office
shall prescribe regulations to carry out this subsection.
- CORRECTED ERROR-
- APPLICABILITY- This subsection applies if the retirement
coverage error was corrected before the effective date of the regulations
described under paragraph (2).
- ELECTION- Not later than 180 days after the date of 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, or
CSRS-Offset covered, or to be FERS covered, effective as of the date of the
retirement coverage error.
- 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.
- 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. 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.
- IN GENERAL-
- 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--
- is deemed to have elected FERS coverage; and
- shall remain covered by FERS, unless the individual declines,
under regulations prescribed by the Office, to be FERS
covered.
- 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.
- 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 that would otherwise be applicable.
- 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. RETROACTIVE EFFECT.
This 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.
CHAPTER 5--EMPLOYEE WHO SHOULD HAVE BEEN CSRS-OFFSET COVERED, BUT WHO
WAS ERRONEOUSLY CSRS COVERED INSTEAD
SEC. 2141. APPLICABILITY.
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.
- 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.
- 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.
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.
- 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.
- 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.
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. INFORMATION TO BE FURNISHED TO AND BY AUTHORITIES
ADMINISTERING THIS TITLE.
- APPLICABILITY- The authorities identified in this subsection
are--
- the Director of the Office of Personnel Management;
- the Commissioner of Social Security; and
- the Executive Director of the Federal Retirement Thrift
Investment Board.
- 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.
- 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.
- LIMITATION; SAFEGUARDS- Each of the respective authorities under
subsection (a) shall--
- request or provide only such information as that authority
considers necessary; and
- 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.
- CSRS DEPOSIT- In the case of a retirement coverage error in
which--
- a FERS covered employee was erroneously CSRS covered or
CSRS-Offset covered;
- the employee made a service credit deposit under the CSRS rules; and
- 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.
- FERS DEPOSIT-
- APPLICABILITY- This subsection applies in the case of an
erroneous retirement coverage determination in which--
- the employee owed a service credit deposit under section
8411(f) of title 5, United States Code; and
- (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.
- REDUCED ANNUITY-
- 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.
- AMOUNT- The reduced 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
the unreduced annuity benefit that would have been provided the
individual.
- SURVIVOR ANNUITY-
- 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.
- 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. PROVISIONS RELATED TO SOCIAL SECURITY COVERAGE OF
MISCLASSIFIED EMPLOYEES.
- DEFINITIONS- In this section, the term--
- 'covered individual' means any employee, former employee, or
annuitant who--
- is or was employed erroneously subject to CSRS coverage as a
result of a retirement coverage error; and
- is or was retroactively converted to CSRS-offset coverage,
FERS coverage, or Social Security-only coverage; and
- '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.
- REPORTS TO COMMISSIONER OF SOCIAL SECURITY-
- 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--
- 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
- 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.).
- COMPLIANCE- The head of an agency or the Office shall comply
with a request from the Commissioner under paragraph (1).
- 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.
- PAYMENT RELATING TO OASDI EMPLOYEE TAXES-
- IN GENERAL- 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 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.
- TRANSFER- Amounts transferred under this subsection shall be
determined notwithstanding any limitation under section 6501 of the Internal
Revenue Code of 1986.
- PAYMENT OF OASDI EMPLOYER TAXES-
- 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 enactment of this Act).
- PAYMENT- Amounts paid under this subsection shall be determined
subject to any limitation under section 6501 of the Internal Revenue Code of
1986.
- APPLICATION OF OASDI TAX PROVISIONS OF THE INTERNAL REVENUE CODE
OF 1986 TO AFFECTED INDIVIDUALS AND EMPLOYING AGENCIES- A covered individual
and the individual's employing agency shall be deemed to have fully satisfied
in a timely manner their responsibilities with respect to the taxes imposed by
sections 3101(a), 3102(a), and 3111(a) of the Internal Revenue Code of 1986 on
the wages paid by the employing agency to such individual during the entire
period such individual was erroneously subject to CSRS coverage as a result of
a retirement coverage error based on the payments and transfers made under
subsections (c) and (d). No credit or refund of taxes on such wages shall be
allowed as a result of this subsection.
SEC. 2205. THRIFT SAVINGS PLAN TREATMENT FOR CERTAIN INDIVIDUALS.
- APPLICABILITY- This section applies to an individual who--
- 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
- 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.
- PAYMENT INTO THRIFT SAVINGS FUND-
- IN GENERAL-
- 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.
- 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.
- EXCEPTIONS- If an individual made retroactive contributions
before the effective date of the regulations 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.
- 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).
- REGULATIONS-
- 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).
- 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. CERTAIN AGENCY AMOUNTS TO BE PAID INTO OR REMAIN IN THE CSRDF.
- CERTAIN EXCESS AGENCY CONTRIBUTIONS TO REMAIN IN THE CSRDF-
- IN GENERAL- Any amount described under paragraph (2) shall--
- remain in the CSRDF; and
- may not be paid or credited to an agency.
- 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.
- 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--
- shall pay the required additional amount into the CSRDF;
and
- shall not seek repayment of that amount from the employee,
former employee, annuitant, or survivor.
SEC. 2207. CSRS COVERAGE DETERMINATIONS TO BE APPROVED BY OPM.
No agency shall place an individual under CSRS coverage unless--
- the individual has been employed with CSRS coverage within the preceding 365 days; or
- the Office has agreed in writing that the agency's coverage determination is correct.
SEC. 2208. DISCRETIONARY ACTIONS BY DIRECTOR.
- IN GENERAL- The Director of the Office of Personnel Management
may--
- 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;
- 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;
- 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
- waive payments required due to correction of a retirement
coverage error under this title.
- 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.
- JUDICIAL REVIEW- Actions taken under this section are final and
conclusive, and are not subject to administrative or judicial review.
- REGULATIONS- The Office of Personnel Management shall prescribe
regulations regarding the process and criteria used in exercising the
authority under this section.
- REPORT- The Office of Personnel Management shall, not later than
180 days after the date of 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.
- 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.
- 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.
Subtitle C--Other Provisions
SEC. 2301. PROVISIONS TO AUTHORIZE CONTINUED CONFORMITY OF OTHER FEDERAL RETIREMENT SYSTEMS.
- 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--
- the Civil Service Retirement System, to the extent this title
relates to the Civil Service Retirement System; and
- the Federal Employees' Retirement System, to the extent this
title relates to the Federal Employees' Retirement System.
- 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--
- the Civil Service Retirement System, to the extent this title
relates to the Civil Service Retirement System; and
- the Federal Employees' Retirement System, to the extent this
title relates to the Federal Employees' Retirement System.
SEC. 2302. AUTHORIZATION OF PAYMENTS.
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.
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).
Subtitle D--Effective Date
SEC. 2401. EFFECTIVE DATE.
Except as otherwise provided in this title, this title shall take
effect on the date of enactment of this Act.
Amend the title so as to read: '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.'.
Attest:
Secretary.
106th CONGRESS
2d Session
H. R. 4040
AMENDMENTS
HR 4040 EAS----2
HR 4040 EAS----3
HR 4040 EAS----4
HR 4040 EAS----5
END