S.Amdt. 1300

SA 1300. Mr. LIEBERMAN (for himself, Ms. Collins, Mr. Akaka, Mr.
Voinovich, Ms. Murkowski, Mr. Inouye, Mr. Begich, Ms. Mikulski, and Mr.
Kohl) submitted an amendment intended to be proposed to amendment SA
1256 proposed by Mr. Schumer (for Mr. Lieberman (for himself, Ms.
Collins, Mr. Akaka, and Mr. Voinovich)) to the amendment SA 1247
proposed by Mr. Dodd to the bill H.R. 1256, to protect the public
health by providing the Food and Drug Administration with certain
authority to regulate tobacco products, to amend title 5, United States
Code, to make certain modifications in the Thrift Savings Plan, the
Civil Service Retirement System; and the Federal Employees' Retirement
System, and for other purposes; which was ordered to lie on the table;
as follows:

In lieu of the matter proposed to be inserted, insert the
following:

Subtitle B--Other Retirement-Related Provisions

SEC. 111. CREDIT FOR UNUSED SICK LEAVE.

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

SEC. 112. LIMITED EXPANSION OF THE CLASS OF INDIVIDUALS
ELIGIBLE TO RECEIVE AN ACTUARIALLY REDUCED
ANNUITY UNDER THE CIVIL SERVICE RETIREMENT
SYSTEM.

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

[[Page S6306]]

SEC. 113. COMPUTATION OF CERTAIN ANNUITIES BASED ON PART-TIME
SERVICE.

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

SEC. 114. AUTHORITY TO DEPOSIT REFUNDS UNDER FERS.

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

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

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

``8422. Deductions from pay; contributions for other service;
deposits.''.
(4) Restoration of annuity rights.--The last sentence of
section 8424(a) of title 5, United States Code, is amended by
striking ``based.'' and inserting ``based, until the employee
or Member is reemployed in the service subject to this
chapter.''.

SEC. 115. RETIREMENT CREDIT FOR SERVICE OF CERTAIN EMPLOYEES
TRANSFERRED FROM DISTRICT OF COLUMBIA SERVICE
TO FEDERAL SERVICE.

(a) Retirement Credit.--
(1) In general.--Any individual who is treated as an
employee of the Federal Government for purposes of chapter 83
or chapter 84 of title 5, United States Code, on or after the
date of enactment of this Act who performed qualifying
District of Columbia service shall be entitled to have such
service included in calculating the individual's creditable
service under sections 8332 or 8411 of title 5, United States
Code, but only for purposes of the following provisions of
such title:
(A) Sections 8333 and 8410 (relating to eligibility for
annuity).
(B) Sections 8336 (other than subsections (d), (h), and (p)
thereof) and 8412 (relating to immediate retirement).
(C) Sections 8338 and 8413 (relating to deferred
retirement).
(D) Sections 8336(d), 8336(h), 8336(p), and 8414 (relating
to early retirement).
(E) Section 8341 and subchapter IV of chapter 84 (relating
to survivor annuities).
(F) Section 8337 and subchapter V of chapter 84 (relating
to disability benefits).
(2) Treatment of detention officer service as law
enforcement officer service.--Any portion of an individual's
qualifying District of Columbia service which consisted of
service as a detention officer under section 2604(2) of the
District of Columbia Government Comprehensive Merit Personnel
Act of 1978 (sec. 1-626.04(2), D.C. Official Code) shall be
treated as service as a law enforcement officer under
sections 8331(20) or 8401(17) of title 5, United States Code,
for purposes of applying paragraph (1) with respect to the
individual.
(3) Service not included in computing amount of any
annuity.--Qualifying District of Columbia service shall not
be taken into account for purposes of computing the amount of
any benefit payable out of the Civil Service Retirement and
Disability Fund.
(b) Qualifying District of Columbia Service Defined.--In
this section, ``qualifying District of Columbia service''
means any of the following:
(1) Service performed by an individual as a nonjudicial
employee of the District of Columbia courts--
(A) which was performed prior to the effective date of the
amendments made by section 11246(b) of the Balanced Budget
Act of 1997; and
(B) for which the individual did not ever receive credit
under the provisions of subchapter III of chapter 83 or
chapter 84 of title 5, United States Code (other than by
virtue of section 8331(1)(iv) of such title).
(2) Service performed by an individual as an employee of an
entity of the District of Columbia government whose functions
were transferred to the Pretrial Services, Parole, Adult
Supervision, and Offender Supervision Trustee under section
11232 of the Balanced Budget Act of 1997--
(A) which was performed prior to the effective date of the
individual's coverage as an employee of the Federal
Government under section 11232(f) of such Act; and
(B) for which the individual did not ever receive credit
under the provisions of subchapter III of chapter 83 or
chapter 84 of title 5, United States Code (other than by
virtue of section 8331(1)(iv) of such title).
(3) Service performed by an individual as an employee of
the District of Columbia Public Defender Service--
(A) which was performed prior to the effective date of the
amendments made by section 7(e) of the District of Columbia
Courts and Justice Technical Corrections Act of 1998; and
(B) for which the individual did not ever receive credit
under the provisions of subchapter III of chapter 83 or
chapter 84 of title 5, United States Code (other than by
virtue of section 8331(1)(iv) of such title).
(4) In the case of an individual who was an employee of the
District of Columbia Department of Corrections who was
separated from service as a result of the closing of the
Lorton Correctional Complex and who was appointed to a
position with the Bureau of Prisons, the District of Columbia
courts, the Pretrial Services, Parole, Adult Supervision, and
Offender Supervision Trustee, the United States Parole
Commission, or the District of Columbia Public Defender
Service, service performed by the individual as an employee
of the District of Columbia Department of Corrections--
(A) which was performed prior to the effective date of the
individual's coverage as an employee of the Federal
Government; and
(B) for which the individual did not ever receive credit
under the provisions of subchapter III of chapter 83 or
chapter 84 of title 5, United States Code (other than by
virtue of section 8331(1)(iv) of such title).
(c) Certification of Service.--The Office of Personnel
Management shall accept the certification of the appropriate
personnel official of the government of the District of
Columbia or other independent employing entity concerning
whether an individual performed qualifying District of
Columbia service and the length of the period of such service
the individual performed.

SEC. 116. RETIREMENT TREATMENT OF CERTAIN SECRET SERVICE
EMPLOYEES.

(a) Definition.--In this section the term ``covered
employee'' means an individual who--
(1) was hired as a member of the United States Secret
Service Division during the period beginning on January 1,
1984 through December 31, 1986;
(2) has actively performed duties other than clerical for
10 or more years directly related to the protection mission
of the United States Secret Service described under section
3056 of title 18, United States Code;
(3) is serving as a member of the United States Secret
Service Division or the United States Secret Service Uniform
Division (or any successor entity) on the effective date of
this section; and
(4) files an election to be a covered employee under
subsection (b)(1).
(b) Election of Coverage.--
(1) In general.--Not later than 60 days after the date of
enactment of this Act, an individual described under
subsection (a)(1), (2), and (3) may file an election with the
United States Secret Service to be a covered employee and to
transition to the District of Columbia Police and Fire
Fighter Retirement and Disability System.
(2) Notification.--Not later than 30 days after the date of
enactment of this Act, the Office of Personnel Management and
the United States Secret Service shall notify each individual
described under subsection (a)(1), (2), and (3) that the
individual is qualified to file an election under paragraph
(1).
(c) Retirement Coverage Conversion.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, and in consultation with the Secretary
of Homeland Security and the Thrift Savings Board, the Office
of Personnel Management shall prescribe regulations to carry
out the responsibilities of the Federal Government under this
section. The regulations prescribed under this paragraph
shall provide for transition of covered employees from the
Federal Employees' Retirement System to the Civil Service
Retirement System.
(2) Treatment of covered employees.--
(A) Election of coverage.--
(i) In general.--If a covered employee files an election
under subsection (b)(1), the covered employee shall, subject
to clause (ii), be converted from the Federal Employees'
Retirement System to the Civil Service Retirement System.

[[Page S6307]]

(ii) Coverage in district of columbia retirement system.--

(I) In general.--Chapter 7 of title 5 of the District of
Columbia Code shall apply with respect to a covered employee
on the date on which the covered employee transitions to the
Civil Service Retirement System.
(II) Authorization for district of columbia.--The
government of the District of Columbia shall provide for the
coverage of covered employees in the District of Columbia
Police and Fire Fighter Retirement and Disability System in
accordance with this section.

(B) Thrift savings plan.--A covered employee shall forfeit,
under procedures prescribed by the Executive Director of the
Federal Retirement Thrift Investment Board, all Thrift
Savings Plan contributions and associated earnings made by an
employing agency pursuant to section 8432(c) of title 5,
United States Code. Any amounts remaining in the Thrift
Savings Plan account of the covered employee may be
transferred to a private account or the District of Columbia
Police and Firefighter Retirement and Disability System.
(C) Forfeiture of social security benefits.--
(i) Contributions.--Upon conversion into the Civil Service
Retirement System, a covered employee shall forfeit all
contributions made for purposes of title II of the Social
Security Act on the basis of the covered employee's
employment with the United States Secret Service under
sections 3101(a) and 3111(a) of the Internal Revenue Code of
1986. All forfeited funds shall remain in the Federal Old-Age
and Survivors Insurance Trust Fund and the Federal Disability
Insurance Trust Fund, as applicable. Notwithstanding
paragraphs (4) and (5) of section 205(c) of the Social
Security Act, the Commissioner of Social Security may change
or delete any entry with respect to wages of a covered
employee that are forfeited under this clause.
(ii) Benefits.--

(I) In general.--No individual shall be entitled to any
benefit under title II of the Social Security Act based on
any contribution forfeited under clause (i).
(II) No effect on medicare benefits.--Notwithstanding the
forfeiture of contributions by a covered employee under
clause (i), such contributions shall continue to be treated
as having been made while performing medicare qualified
government employment (as defined in section 210(p) of the
Social Security Act) for purposes of sections 226 and 226A of
that Act.

(3) Implementation.--The Office of Personnel Management,
the Department of Homeland Security, the Social Security
Administration, and the Thrift Savings Board shall take such
actions as necessary to provide for the implementation of
this section.
(d) Effective Date.--
(1) In general.--Except as provided under paragraph (2),
this section shall take effect on the first day of the first
applicable pay period that begins 180 days after the date of
enactment of this Act.
(2) Elections and implementation.--Subsections (b) and
(c)(1) and (3) shall take effect on the date of enactment of
this Act.

TITLE___--NON-FOREIGN AREA RETIREMENT EQUITY ASSURANCE

SEC. _01. SHORT TITLE.

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

SEC. _02. EXTENSION OF LOCALITY PAY.

(a) Locality-Based Comparability Payments.--Section 5304 of
title 5, United States Code, is amended--
(1) in subsection (f)(1), by striking subparagraph (A) and
inserting the following:
``(A) each General Schedule position in the United States,
as defined under section 5921(4), and its territories and
possessions, including the Commonwealth of Puerto Rico and
the Commonwealth of the Northern Mariana Islands, shall be
included within a pay locality;'';
(2) in subsection (g)--
(A) in paragraph (2)--
(i) in subparagraph (A), by striking ``and'' after the
semicolon;
(ii) in subparagraph (B) by striking the period and
inserting ``; and''; and
(iii) by adding after subparagraph (B) the following:
``(C) positions under subsection (h)(1)(C) not covered by
appraisal systems certified under section 5382; and''; and
(B) by adding at the end the following:
``(3) The applicable maximum under this subsection shall be
level II of the Executive Schedule for positions under
subsection (h)(1)(C) covered by appraisal systems certified
under section 5307(d).''; and
(3) in subsection (h)(1)--
(A) in subparagraph (B) by striking ``and'' after the
semicolon;
(B) by redesignating subparagraph (C) as subparagraph (D);
(C) by inserting after subparagraph (B) the following:
``(C) a Senior Executive Service position under section
3132 or 3151 or a senior level position under section 5376
stationed within the United States, but outside the 48
contiguous States and the District of Columbia in which the
incumbent was an individual who on the day before the date of
enactment of the Non-Foreign Area Retirement Equity Assurance
Act of 2009 was eligible to receive a cost-of-living
allowance under section 5941; and'';
(D) in clause (iv) in the matter following subparagraph
(D), by inserting ``, except for members covered by
subparagraph (C)'' before the semicolon; and
(E) in clause (v) in the matter following subparagraph (D),
by inserting ``, except for members covered by subparagraph
(C)'' before the semicolon.
(b) Allowances Based on Living Costs and Conditions of
Environment.--Section 5941 of title 5, United States Code, is
amended--
(1) in subsection (a), by adding after the last sentence
``Notwithstanding any preceding provision of this subsection,
the cost-of-living allowance rate based on paragraph (1)
shall be the cost-of-living allowance rate in effect on the
date of enactment of the Non-Foreign Area Retirement Equity
Assurance Act of 2009, except as adjusted under subsection
(c).'';
(2) by redesignating subsection (b) as subsection (d); and
(3) by inserting after subsection (a) the following:
``(b) This section shall apply only to areas that are
designated as cost-of-living allowance areas as in effect on
December 31, 2009.
``(c)(1) The cost-of-living allowance rate payable under
this section shall be adjusted on the first day of the first
applicable pay period beginning on or after--
``(A) January 1, 2010; and
``(B) January 1 of each calendar year in which a locality-
based comparability adjustment takes effect under section _04
(2) and (3) of the Non-Foreign Area Retirement Equity
Assurance Act of 2009.
``(2)(A) In this paragraph, the term `applicable locality-
based comparability pay percentage' means, with respect to
calendar year 2010 and each calendar year thereafter, the
applicable percentage under section _04 (1), (2), or (3) of
Non-Foreign Area Retirement Equity Assurance Act of 2009.
``(B) Each adjusted cost-of-living allowance rate under
paragraph (1) shall be computed by--
``(i) subtracting 65 percent of the applicable locality-
based comparability pay percentage from the cost-of-living
allowance percentage rate in effect on December 31, 2009; and
``(ii) dividing the resulting percentage determined under
clause (i) by the sum of--
``(I) one; and
``(II) the applicable locality-based comparability payment
percentage expressed as a numeral.
``(3) No allowance rate computed under paragraph (2) may be
less than zero.
``(4) Each allowance rate computed under paragraph (2)
shall be paid as a percentage of basic pay (including any
applicable locality-based comparability payment under section
5304 or similar provision of law and any applicable special
rate of pay under section 5305 or similar provision of
law).''.

SEC. _03. ADJUSTMENT OF SPECIAL RATES.

(a) In General.--Each special rate of pay established under
section 5305 of title 5, United States Code, and payable in
an area designated as a cost-of-living allowance area under
section 5941(a) of that title, shall be adjusted, on the
dates prescribed by section _04 of this title, in accordance
with regulations prescribed by the Director of the Office of
Personnel Management under section _08 of this title.
(b) Agencies With Statutory Authority.--
(1) In general.--Each special rate of pay established under
an authority described under paragraph (2) and payable in a
location designated as a cost-of-living allowance area under
section 5941(a)(1) of title 5, United States Code, shall be
adjusted in accordance with regulations prescribed by the
applicable head of the agency that are consistent with the
regulations issued by the Director of the Office of Personnel
Management under subsection (a).
(2) Statutory authority.--The authority referred to under
paragraph (1), is any statutory authority that--
(A) is similar to the authority exercised under section
5305 of title 5, United States Code;
(B) is exercised by the head of an agency when the head of
the agency determines it to be necessary in order to obtain
or retain the services of persons specified by statute; and
(C) authorizes the head of the agency to increase the
minimum, intermediate, or maximum rates of basic pay
authorized under applicable statutes and regulations.
(c) Temporary Adjustment.--Regulations issued under
subsection (a) or (b) may provide that statutory limitations
on the amount of such special rates may be temporarily raised
to a higher level during the transition period described in
section _04 ending on the first day of the first pay period
beginning on or after January 1, 2012, at which time any
special rate of pay in excess of the applicable limitation
shall be converted to a retained rate under section 5363 of
title 5, United States Code.

SEC. _04. TRANSITION SCHEDULE FOR LOCALITY-BASED
COMPARABILITY PAYMENTS.

Notwithstanding any other provision of this title or
section 5304 or 5304a of title 5, United States Code, in
implementing the amendments made by this title, for each non-
foreign area determined under section 5941(b) of that title,
the applicable rate for the locality-based comparability
adjustment that is used in the computation required under
section 5941(c) of that title shall be adjusted effective on
the first day of the first pay period beginning on or after
January 1--

[[Page S6308]]

(1) in calendar year 2010, by using \1/3\ of the locality
pay percentage for the rest of United States locality pay
area;
(2) in calendar year 2011, by using \2/3\ of the otherwise
applicable comparability payment approved by the President
for each non-foreign area; and
(3) in calendar year 2012 and each subsequent year, by
using the full amount of the applicable comparability payment
approved by the President for each non-foreign area.

SEC. _05. SAVINGS PROVISION.

(a) Sense of Congress.--It is the sense of Congress that--
(1) the application of this title to any employee should
not result in a decrease in the take home pay of that
employee;
(2) in calendar year 2012 and each subsequent year, no
employee shall receive less than the Rest of the U.S.
locality pay rate;
(3) concurrent with the surveys next conducted under the
provisions of section 5304(d)(1)(A) of title 5, United States
Code, beginning after the date of the enactment of this Act,
the Bureau of Labor Statistics should conduct separate
surveys to determine the extent of any pay disparity (as
defined by section 5302 of that title) that may exist with
respect to positions located in the State of Alaska, the
State of Hawaii, and the United States territories, including
American Samoa, Guam, Commonwealth of the Northern Mariana
Islands, Commonwealth of Puerto Rico, and the United States
Virgin Islands;
(4) if the surveys under paragraph (3) indicate that the
pay disparity determined for the State of Alaska, the State
of Hawaii, or any 1 of the United States territories
including American Samoa, Guam, Commonwealth of the Northern
Mariana Islands, Commonwealth of Puerto Rico, and the United
States Virgin Islands exceeds the pay disparity determined
for the locality which (for purposes of section 5304 of that
title) is commonly known as the ``Rest of the United
States'', the President's Pay Agent should take appropriate
measures to provide that each such surveyed area be treated
as a separate pay locality for purposes of that section; and
(5) the President's Pay Agent will establish 1 locality
area for the entire State of Hawaii and 1 locality area for
the entire State of Alaska.
(b) Savings Provisions.--
(1) In general.--During the period described under section
_04 of this title, an employee paid a special rate under 5305
of title 5, United States Code, who the day before the date
of enactment of this Act was eligible to receive a cost-of-
living allowance under section 5941 of title 5, United States
Code, and who continues to be officially stationed in an
allowance area, shall receive an increase in the employee's
special rate consistent with increases in the applicable
special rate schedule. For employees in allowance areas, the
minimum step rate for any grade of a special rate schedule
shall be increased at the time of an increase in the
applicable locality rate percentage for the allowance area by
not less than the dollar increase in the locality-based
comparability payment for a non-special rate employee at the
same minimum step provided under section _04 of this title,
and corresponding increases shall be provided for all step
rates of the given pay range.
(2) Continuation of cost of living allowance rate.--If an
employee, who the day before the date of enactment of this
Act was eligible to receive a cost-of-living allowance under
section 5941 of title 5, United States Code, would receive a
rate of basic pay and applicable locality-based comparability
payment which is in excess of the maximum rate limitation set
under section 5304(g) of title 5, United States Code, for his
position (but for that maximum rate limitation) due to the
operation of this title, the employee shall continue to
receive the cost-of-living allowance rate in effect on
December 31, 2009 without adjustment until--
(A) the employee leaves the allowance area or pay system;
or
(B) the employee is entitled to receive basic pay
(including any applicable locality-based comparability
payment or similar supplement) at a higher rate,
but, when any such position becomes vacant, the pay of any
subsequent appointee thereto shall be fixed in the manner
provided by applicable law and regulation.
(3) Locality-based comparability payments.--Any employee
covered under paragraph (2) shall receive any applicable
locality-based comparability payment extended under section
_04 of this title which is not in excess of the maximum rate
set under section 5304(g) of title 5, United States Code, for
his position including any future increase to statutory pay
limitations under 5318 of title 5, United States Code.
Notwithstanding paragraph (2), to the extent that an employee
covered under that paragraph receives any amount of locality-
based comparability payment, the cost-of-living allowance
rate under that paragraph shall be reduced accordingly, as
provided under section 5941(c)(2)(B) of title 5, United
States Code.

SEC. _06. APPLICATION TO OTHER ELIGIBLE EMPLOYEES.

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

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

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

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

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

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

(2) Application to covered employees.--
(A) In general.--Notwithstanding any other provision of
law, for purposes of this title (including the amendments
made by this title) any covered employee shall be treated as
an employee to whom section 5941 of title 5, United States
Code (as amended by section _02 of this title), and section
_04 of this title apply.
(B) Pay fixed by statute.--Pay to covered employees under
section 5304 or 5304a of title 5, United States Code, as a
result of the application of this title shall be considered
to be fixed by statute.
(C) Performance appraisal system.--With respect to a
covered employee who is subject to a performance appraisal
system no part of pay attributable to locality-based
comparability payments as a result of the application of this
title including section 5941 of title 5, United States Code
(as amended by section _02 of this title), may be reduced on
the basis of the performance of that employee.
(b) Postal Employees in Non-Foreign Areas.--
(1) In general.--Section 1005(b) of title 39, United States
Code, is amended--
(A) by inserting ``(1)'' after ``(b)'';
(B) by striking ``Section 5941,'' and inserting ``Except as
provided under paragraph (2), section 5941'';
(C) by striking ``For purposes of such section,'' and
inserting ``Except as provided under paragraph (2), for
purposes of section 5941 of that title,''; and
(D) by adding at the end the following:
``(2) On and after the date of enactment of the Non-Foreign
Area Retirement Equity Assurance Act of 2009--
``(A) the provisions of that Act and section 5941 of title
5 shall apply to officers and employees covered by section
1003 (b) and (c) whose duty station is in a nonforeign area;
and
``(B) with respect to officers and employees of the Postal
Service (other than those officers and employees described
under subparagraph (A)) of section _06(b)(2) of that Act
shall apply.''.
(2) Continuation of cost of living allowance.--
(A) In general.--Notwithstanding any other provision of
this title, any employee of the Postal Service (other than an
employee covered by section 1003 (b) and (c) of title 39,
United States Code, whose duty station is in a nonforeign
area) who is paid an allowance under section 1005(b) of that
title shall be treated for all purposes as if the provisions
of this title (including the amendments made by this title)
had not been enacted, except that the cost-of-living
allowance rate paid to that employee--
(i) may result in the allowance exceeding 25 percent of the
rate of basic pay of that employee; and
(ii) shall be the greater of--

(I) the cost-of-living allowance rate in effect on December
31, 2009 for the applicable area; or
(II) the applicable locality-based comparability pay
percentage under section _04.

(B) Rule of construction.--Nothing in this title shall be
construed to--
(i) provide for an employee described under subparagraph
(A) to be a covered employee as defined under subsection (a);
or
(ii) authorize an employee described under subparagraph (A)
to file an election under section _07 of this title.

SEC. _07. ELECTION OF ADDITIONAL BASIC PAY FOR ANNUITY
COMPUTATION BY EMPLOYEES.

(a) Definition.--In this section the term ``covered
employee'' means any employee--
(1) to whom section _04 applies;

[[Page S6309]]

(2) who is separated from service by reason of retirement
under chapter 83 or 84 of title 5, United States Code, during
the period of January 1, 2010, through December 31, 2012; and
(3) who files an election with the Office of Personnel
Management under subsection (b).
(b) Election.--
(1) In general.--An employee described under subsection (a)
(1) and (2) may file an election with the Office of Personnel
Management to be covered under this section.
(2) Deadline.--An election under this subsection may be
filed not later than December 31, 2012.
(c) Computation of Annuity.--
(1) In general.--Except as provided under paragraph (2),
for purposes of the computation of an annuity of a covered
employee any cost-of-living allowance under section 5941 of
title 5, United States Code, paid to that employee during the
first applicable pay period beginning on or after January 1,
2010 through the first applicable pay period ending on or
after December 31, 2012, shall be considered basic pay as
defined under section 8331(3) or 8401(4) of that title.
(2) Limitation.--The amount of the cost-of-living allowance
which may be considered basic pay under paragraph (1) may not
exceed the amount of the locality-based comparability
payments the employee would have received during that period
for the applicable pay area if the limitation under section
_04 of this title did not apply.
(d) Civil Service Retirement and Disability Retirement
Fund.--
(1) Employee contributions.--A covered employee shall pay
into the Civil Service Retirement and Disability Retirement
Fund--
(A) an amount equal to the difference between--
(i) employee contributions that would have been deducted
and withheld from pay under section 8334 or 8422 of title 5,
United States Code, during the period described under
subsection (c) of this section if the cost-of-living
allowances described under that subsection had been treated
as basic pay under section 8331(3) or 8401(4) of title 5,
United States Code; and
(ii) employee contributions that were actually deducted and
withheld from pay under section 8334 or 8422 of title 5,
United States Code, during that period; and
(B) interest as prescribed under section 8334(e) of title
5, United States Code, based on the amount determined under
subparagraph (A).
(2) Agency contributions.--
(A) In general.--The employing agency of a covered employee
shall pay into the Civil Service Retirement and Disability
Retirement Fund an amount for applicable agency contributions
based on payments made under paragraph (1).
(B) Source.--Amounts paid under this paragraph shall be
contributed from the appropriation or fund used to pay the
employee.
(3) Regulations.--The Office of Personnel Management may
prescribe regulations to carry out this section.

SEC. _08. REGULATIONS.

(a) In General.--The Director of the Office of Personnel
Management shall prescribe regulations to carry out this
title, including--
(1) rules for special rate employees described under
section _03;
(2) rules for adjusting rates of basic pay for employees in
pay systems administered by the Office of Personnel
Management when such employees are not entitled to locality-
based comparability payments under section 5304 of title 5,
United States Code, without regard to otherwise applicable
statutory pay limitations during the transition period
described in section _04 ending on the first day of the first
pay period beginning on or after January 1, 2012; and
(3) rules governing establishment and adjustment of saved
or retained rates for any employee whose rate of pay exceeds
applicable pay limitations on the first day of the first pay
period beginning on or after January 1, 2012.
(b) Other Pay Systems.--With the concurrence of the
Director of the Office of Personnel Management, the
administrator of a pay system not administered by the Office
of Personnel Management shall prescribe regulations to carry
out this title with respect to employees in such pay system,
consistent with the regulations prescribed by the Office
under subsection (a). With respect to employees not entitled
to locality-based comparability payments under section 5304
of title 5, United States Code, regulations prescribed under
this subsection may provide for special payments or
adjustments for employees who were eligible to receive a
cost-of-living allowance under section 5941 of that title on
the date before the date of enactment of this Act.

SEC. _09. EFFECTIVE DATES.

(a) In General.--Except as provided by subsection (b), this
title (including the amendments made by this title) shall
take effect on the date of enactment of this Act.
(b) Locality Pay and Schedule.--The amendments made by
section _02 and the provisions of section _04 shall take
effect on the first day of the first applicable pay period
beginning on or after January 1, 2010.

TITLE___--PART-TIME REEMPLOYMENT OF ANNUITANTS

SEC. __1. SHORT TITLE.

This title may be cited as the ``Part-Time Reemployment of
Annuitants Act of 2009''.

SEC. __2. PART-TIME REEMPLOYMENT.

(a) Civil Service Retirement System.--Section 8344 of title
5, United States Code, is amended--
(1) by redesignating subsection (l) as subsection (m);
(2) by inserting after subsection (k) the following:
``(l)(1) For purposes of this subsection--
``(A) the term `head of an agency' means--
``(i) the head of an Executive agency, other than the
Department of Defense or the Government Accountability
Office;
``(ii) the head of the United States Postal Service;
``(iii) the Director of the Administrative Office of the
United States Courts, with respect to employees of the
judicial branch; and
``(iv) any employing authority described under subsection
(k)(2), other than the Government Accountability Office; and
``(B) the term `limited time appointee' means an annuitant
appointed under a temporary appointment limited to 1 year or
less.
``(2) The head of an agency may waive the application of
subsection (a) or (b) with respect to any annuitant who is
employed in such agency as a limited time appointee, if the
head of the agency determines that the employment of the
annuitant is necessary to--
``(A) fulfill functions critical to the mission of the
agency, or any component of that agency;
``(B) assist in the implementation or oversight of the
American Recovery and Reinvestment Act of 2009 (Public Law
111-5) or the Troubled Asset Relief Program under title I of
the Emergency Economic Stabilization Act of 2008 (12 U.S.C.
5201 et seq.);
``(C) assist in the development, management, or oversight
of agency procurement actions;
``(D) assist the Inspector General for that agency in the
performance of the mission of that Inspector General;
``(E) promote appropriate training or mentoring programs of
employees;
``(F) assist in the recruitment or retention of employees;
or
``(G) respond to an emergency involving a direct threat to
life of property or other unusual circumstances.
``(3) The head of an agency may not waive the application
of subsection (a) or (b) with respect to an annuitant--
``(A) for more than 520 hours of service performed by that
annuitant during the period ending 6 months following the
individual's annuity commencing date;
``(B) for more than 1040 hours of service performed by that
annuitant during any 12-month period; or
``(C) for more than a total of 3120 hours of service
performed by that annuitant.
``(4)(A) The total number of annuitants to whom a waiver by
the head of an agency under this subsection or section
8468(i) applies may not exceed 2.5 percent of the total
number of full-time employees of that agency.
``(B) If the total number of annuitants to whom a waiver by
the head of an agency under this subsection or section
8468(i) applies exceeds 1 percent of the total number of
full-time employees of that agency, the head of that agency
shall submit to the Committee on Homeland Security and
Governmental Affairs of the Senate, the Committee on
Oversight and Government Reform of the House of
Representatives, and the Office of Personnel Management--
``(i) a report with an explanation that justifies the need
for the waivers in excess of that percentage; and
``(ii) not later than 180 days after submitting the report
under clause (i), a succession plan.
``(5)(A) The Director of the Office of Personnel Management
may promulgate regulations providing for the administration
of this subsection.
``(B) Any regulations promulgated under subparagraph (A)
may--
``(i) provide standards for the maintenance and form of
necessary records of employment under this subsection;
``(ii) to the extent not otherwise expressly prohibited by
law, require employing agencies to provide records of such
employment to the Office of Personnel Management or other
employing agencies as necessary to ensure compliance with
paragraph (3);
``(iii) authorize other administratively convenient periods
substantially equivalent to 12 months, such as 26 pay
periods, to be used in determining compliance with paragraph
(3)(B);
``(iv) include such other administrative requirements as
the Director of the Office of Personnel Management may find
appropriate to provide for the effective operation of, or to
ensure compliance with, this subsection; and
``(v) encourage the training and mentoring of employees by
any limited time appointee employed under this subsection.
``(6)(A) Any hours of training or mentoring of employees by
any limited time appointee employed under this subsection
shall not be included in the hours of service performed for
purposes of paragraph (3), but those hours of training or
mentoring may not exceed 520 hours.
``(B) If the primary service performed by any limited time
appointee employed under this subsection is training or
mentoring of employees, the hours of that service shall be
included in the hours of service performed for purposes of
paragraph (3).

[[Page S6310]]

``(7) The authority of the head of an agency under this
subsection to waive the application of subsection (a) or (b)
shall terminate 5 years after the date of enactment of the
Part-Time Reemployment of Annuitants Act of 2009.''; and
(3) in subsection (m) (as so redesignated)--
(A) in paragraph (1), by striking ``(k)'' and inserting
``(l)''; and
(B) in paragraph (2), by striking ``or (k)'' and inserting
``(k), or (l)''.
(b) Federal Employee Retirement System.--Section 8468 of
title 5, United States Code, is amended--
(1) by redesignating subsection (i) as subsection (j);
(2) by inserting after subsection (h) the following:
``(i)(1) For purposes of this subsection--
``(A) the term `head of an agency' means--
``(i) the head of an Executive agency, other than the
Department of Defense or the Government Accountability
Office;
``(ii) the head of the United States Postal Service;
``(iii) the Director of the Administrative Office of the
United States Courts, with respect to employees of the
judicial branch; and
``(iv) any employing authority described under subsection
(h)(2), other than the Government Accountability Office; and
``(B) the term `limited time appointee' means an annuitant
appointed under a temporary appointment limited to 1 year or
less.
``(2) The head of an agency may waive the application of
subsection (a) with respect to any annuitant who is employed
in such agency as a limited time appointee, if the head of
the agency determines that the employment of the annuitant is
necessary to--
``(A) fulfill functions critical to the mission of the
agency, or any component of that agency;
``(B) assist in the implementation or oversight of the
American Recovery and Reinvestment Act of 2009 (Public Law
111-5) or the Troubled Asset Relief Program under title I of
the Emergency Economic Stabilization Act of 2008 (12 U.S.C.
5201 et seq.);
``(C) assist in the development, management, or oversight
of agency procurement actions;
``(D) assist the Inspector General for that agency in the
performance of the mission of that Inspector General;
``(E) promote appropriate training or mentoring programs of
employees;
``(F) assist in the recruitment or retention of employees;
or
``(G) respond to an emergency involving a direct threat to
life of property or other unusual circumstances.
``(3) The head of an agency may not waive the application
of subsection (a) with respect to an annuitant--
``(A) for more than 520 hours of service performed by that
annuitant during the period ending 6 months following the
individual's annuity commencing date;
``(B) for more than 1040 hours of service performed by that
annuitant during any 12-month period; or
``(C) for more than a total of 3120 hours of service
performed by that annuitant.
``(4)(A) The total number of annuitants to whom a waiver by
the head of an agency under this subsection or section
8344(l) applies may not exceed 2.5 percent of the total
number of full-time employees of that agency.
``(B) If the total number of annuitants to whom a waiver by
the head of an agency under this subsection or section
8344(l) applies exceeds 1 percent of the total number of
full-time employees of that agency, the head of that agency
shall submit to the Committee on Homeland Security and
Governmental Affairs of the Senate, the Committee on
Oversight and Government Reform of the House of
Representatives, and the Office of Personnel Management--
``(i) a report with an explanation that justifies the need
for the waivers in excess of that percentage; and
``(ii) not later than 180 days after submitting the report
under clause (i), a succession plan.
``(5)(A) The Director of the Office of Personnel Management
may promulgate regulations providing for the administration
of this subsection.
``(B) Any regulations promulgated under subparagraph (A)
may--
``(i) provide standards for the maintenance and form of
necessary records of employment under this subsection;
``(ii) to the extent not otherwise expressly prohibited by
law, require employing agencies to provide records of such
employment to the Office or other employing agencies as
necessary to ensure compliance with paragraph (3);
``(iii) authorize other administratively convenient periods
substantially equivalent to 12 months, such as 26 pay
periods, to be used in determining compliance with paragraph
(3)(B);
``(iv) include such other administrative requirements as
the Director of the Office of Personnel Management may find
appropriate to provide for effective operation of, or to
ensure compliance with, this subsection; and
``(v) encourage the training and mentoring of employees by
any limited time appointee employed under this subsection.
``(6)(A) Any hours of training or mentoring of employees by
any limited time appointee employed under this subsection
shall not be included in the hours of service performed for
purposes of paragraph (3), but those hours of training or
mentoring may not exceed 520 hours.
``(B) If the primary service performed by any limited time
appointee employed under this subsection is training or
mentoring of employees, the hours of that service shall be
included in the hours of service performed for purposes of
paragraph (3).
``(7) The authority of the head of an agency under this
subsection to waive the application of subsection (a) shall
terminate 5 years after the date of enactment of the Part-
Time Reemployment of Annuitants Act of 2009.''; and
(3) in subsection (j) (as so redesignated)--
(A) in paragraph (1), by striking ``(h)'' and inserting
``(i)''; and
(B) in paragraph (2), by striking ``or (h)'' and inserting
``(h), or (i)''.
(c) Rule of Construction.--Nothing in the amendments made
by this section may be construed to authorize the waiver of
the hiring preferences under chapter 33 of title 5, United
States Code in selecting annuitants to employ in an
appointive or elective position.
(d) Technical and Conforming Amendments.--Section
1005(d)(2) of title 39, United States Code, is amended--
(1) by striking ``(l)(2)'' and inserting ``(m)(2)''; and
(2) by striking ``(i)(2)'' and inserting ``(j)(2)''.

SEC. __3. GENERAL ACCOUNTABILITY OFFICE REPORT.

(a) In General.--Not later than 3 years after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to the Committee on Homeland Security and
Governmental Affairs of the Senate and the Committee on
Oversight and Government Reform of the House of
Representatives a report regarding the use of the authority
under the amendments made by section __2.
(b) Contents.--The report submitted under subsection (a)
shall--
(1) include the number of annuitants for whom a waiver was
made under subsection (l) of section 8344 of title 5, United
States Code, as amended by this title, or subsection (i) of
section 8468 of title 5, United States Code, as amended by
this title; and
(2) identify each agency that used the authority described
in paragraph (1).
(c) Agency Data.--Each head of an agency (as defined under
sections 8344(l)(1) and 8468(i)(1)(A) of title 5, United
States Code, as added by section __2 of this title) shall--
(1) collect and maintain data necessary for purposes of the
Comptroller General report submitted under subsection (a);
and
(2) submit to the Comptroller General that data as the
Comptroller General requires in a timely fashion.
______