S.Amdt. 4215

SA 4215. Mr. REID (for himself, Mr. Schumer, and Ms. Hirono)
submitted an amendment intended to be proposed by him to the bill S.
2943, to authorize appropriations for fiscal year 2017 for military
activities of the Department of Defense, for military construction, and
for defense activities of the Department of Energy, to prescribe
military personnel strengths for such fiscal year, and for other
purposes; which was ordered to lie on the table; as follows:

At the end of subtitle I of title X, add the following:

SEC. ____. CREDITABLE SERVICE FOR FEDERAL RETIREMENT FOR
CERTAIN INDIVIDUALS.

(a) Definitions.--In this section--
(1) the term ``annuity'' includes a survivor annuity; and
(2) the terms ``survivor'', ``survivor annuitant'', and
``unfunded liability'' have the meanings given those terms
under section 8331 of title 5, United States Code.
(b) Amendments.--
(1) In general.--Section 8332(b) of title 5, United States
Code, is amended--
(A) in paragraph (16), by striking ``and'' at the end;
(B) in paragraph (17), by striking the period at the end
and inserting ``; and'';
(C) by inserting after paragraph (17) the following:
``(18) any period of service performed--
``(A) not later than December 31, 1977;
``(B) while a citizen of the United States;
``(C) in the employ of--
``(i) Air America, Inc.; or
``(ii) any entity associated with, predecessor to, or
subsidiary to Air America, Inc., including Air Asia Company
Limited, CAT Incorporated, Civil Air Transport Company
Limited, and the Pacific Division of Southern Air Transport;
and
``(D) during the period that Air America, Inc. or such
other entity described in subparagraph (C) was owned and
controlled by the United States Government.''; and
(D) in the second undesignated paragraph following
paragraph (18) (as added by subparagraph (C)), by adding at
the end the following: ``For purposes of this subchapter,
service of the type described in paragraph (18) of this
subsection shall be considered to have been service as an
employee.''.
(2) Exemption from deposit requirement.--Section 8334(g) of
title 5, United States Code, is amended--
(A) in paragraph (5), by striking ``or'' at the end;
(B) in paragraph (6), by striking the period at the end and
inserting `` ; or''; and
(C) by adding at the end the following:
``(7) any period of service for which credit is allowed
under section 8332(b)(18) of this title.''.
(c) Applicability.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
with respect to annuities commencing on or after the
effective date of this section.
(2) Provisions relating to current annuitants.--
(A) Election.--Any individual who is entitled to an annuity
for the month in which this section becomes effective may
elect to have the amount of such annuity recomputed as if the
amendments made by this section had been in effect throughout
all periods of service on the basis of which the annuity is
or may be based.
(B) Submission of election.--An individual shall make an
election under subparagraph (A) by submitting an appropriate
application to the Office of Personnel Management not later
than 2 years after the effective date of this section.
(C) Effective date of recomputation; retroactive pay as
lump-sum payment.--
(i) Effective date.--A recomputation under subparagraph (A)
shall be effective as of the commencement date of the
annuity.
(ii) Retroactive pay as lump-sum payment.--Any additional
amounts becoming payable, due to a recomputation under
subparagraph (A), for periods before the first month for
which the recomputation is reflected in the regular monthly
annuity payments of an individual shall be payable to the
individual in the form of a lump-sum payment.
(3) Provisions relating to individuals eligible for (but
not currently receiving) an annuity.--
(A) In general.--
(i) Election.--An individual not described in paragraph (2)
who becomes eligible for an annuity or an increased annuity
as a result of the enactment of this section may elect to
have the rights of the individual under subchapter III of
chapter 83 of title 5, United States Code, determined as if
the amendments made by this section had been in effect
throughout all periods of service on the basis of which the
annuity is or would be based.
(ii) Submission of election.--An individual shall make an
election under clause (i) by submitting an appropriate
application to the Office of Personnel Management not later
than 2 years after the later of--

(I) the effective date of this section; or
(II) the date on which the individual separates from
service.

(B) Effective date of entitlement; retroactivity.--
(i) Effective date.--

(I) In general.--Subject to clause (ii), any entitlement to
an annuity or an increased annuity resulting from an election
under subparagraph (A) shall be effective as of the
commencement date of the annuity.
(II) Retroactive pay as lump-sum payment.--Any amounts
becoming payable for periods before the first month for which
regular monthly annuity payments begin to be made in
accordance with the amendments made by this section shall be
payable to the individual in the form of a lump-sum payment.

(ii) Retroactivity.--Any determination of the amount, or of
the commencement date, of any annuity, all the requirements
for entitlement to which (including separation, but not
including any application requirement) would have been
satisfied before the effective date of this section if this
section had been in effect (but would not then otherwise have
been satisfied absent this section) shall be made as if
application for the annuity had been submitted as of the
earliest date that would have been allowable, after the date
on which the individual separated from service, if the
amendments made by this section had been in effect throughout
the periods of service referred to in subparagraph (A)(i).
(4) Right to file on behalf of a decedent.--
(A) In general.--The regulations promulgated under
subsection (e)(1) shall include provisions, in accordance
with the order of precedence under section 8342(c) of title
5, United States Code, under which a survivor of an
individual who performed service described in section
8332(b)(18) of such title (as added by subsection (b)(1)(C))
shall be allowed to submit an application on behalf of and to
receive any lump-sum payment that would otherwise have been
payable to the decedent under paragraph (2)(C)(ii) or
(3)(B)(i)(II) of this subsection.
(B) Submission of application.--An application under this
paragraph shall not be valid unless it is filed not later
than the later of--
(i) 2 years after the effective date of this section; or
(ii) 1 year after the date of the decedent's death.
(d) Funding.--
(1) Lump-sum payments.--Any lump-sum payment under
paragraph (2)(C)(ii) or (3)(B)(i)(II) of subsection (c) shall
be payable out of the Civil Service Retirement and Disability
Fund.
(2) Unfunded liability.--Any increase in the unfunded
liability of the Civil Service Retirement System attributable
to the enactment of this section shall be financed in
accordance with section 8348(f) of title 5, United States
Code.
(e) Regulations and Special Rule.--
(1) In general.--The Director of the Office of Personnel
Management shall promulgate any regulations necessary to
carry out this section, which shall include provisions under
which rules similar to those established under the amendments
made by section 201 of the Federal Employees' Retirement
System Act of 1986 (Public Law 99-335; 100 Stat. 588) shall
be applied with respect to any service described in section
8332(b)(18) of title 5, United States Code (as added by
subsection (b)(1)(C)) that was subject to title II of the
Social Security Act.
(2) Special rule.--For purposes of any application for any
benefit which is computed or recomputed taking into account
any service described in section 8332(b)(18) of title 5,
United States Code (as added by subsection (b)(1)(C)),
section 8345(i)(2) of such title shall be applied by deeming
the reference to the date of the ``other event which gives
rise to title to the benefit'' to refer to the effective date
of this section, if later than the date of the event that
would otherwise apply.
(f) Effective Date.--This section and the amendments made
by this section shall take effect on the first day of the
first fiscal year beginning after the date of enactment of
this Act.
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