[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4040 Enrolled Bill (ENR)]
H.R.4040
One Hundred Sixth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday,
the twenty-fourth day of January, two thousand
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

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This title may be cited as the ``Long-Term Care Security Act''.

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TITLE I

-FEDERAL LONG-TERM CARE INSURANCE

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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.

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(a) Short Title.--This title may be cited as the ``Federal
Erroneous Retirement Coverage Corrections Act''.
(b) Table of Contents.--The table of contents for this title is as
follows:

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TITLE II

-FEDERAL RETIREMENT COVERAGE ERRORS CORRECTION

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

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Chapter 2--Employee Who Should Have Been FERS Covered, CSRS-Offset
Covered, or CSRS Covered, but Who Was Erroneously Social Security-Only
Covered Instead

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Chapter 3--Employee Who Should or Could Have Been Social Security-Only
Covered but Who Was Erroneously CSRS-Offset Covered or CSRS Covered
Instead

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is erroneously CSRS or CSRS-Offset covered instead.
Chapter 4--Employee Who Was Erroneously FERS Covered

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covered, or CSRS-Offset covered and is not FERS-Eligible, but
who is erroneously FERS covered instead.

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CSRS-Offset covered, or Social Security-Only covered, but who
was erroneously FERS covered instead without an election.

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Chapter 5--Employee Who Should Have Been CSRS-Offset Covered, but Who
Was Erroneously CSRS Covered Instead

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Chapter 6--Employee Who Should Have Been CSRS Covered, but Who Was
Erroneously CSRS-Offset Covered Instead

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otherwise provided for under this title.
Subtitle D--Effective Date

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For purposes of this title:
(1) Annuitant.--The term ``annuitant'' has the meaning given
such term under section 8331(9) or 8401(2) of title 5, United
States Code.
(2) CSRS.--The term ``CSRS'' means the Civil Service Retirement
System.
(3) CSRDF.--The term ``CSRDF'' means the Civil Service
Retirement and Disability Fund.
(4) CSRS covered.--The term ``CSRS covered'', with respect to
any service, means service that is subject to the provisions of
subchapter III of chapter 83 of title 5, United States Code, other
than service subject to section 8334(k) of such title.
(5) CSRS-offset covered.--The term ``CSRS-Offset covered'',
with respect to any service, means service that is subject to the
provisions of subchapter III of chapter 83 of title 5, United
States Code, and to section 8334(k) of such title.
(6) Employee.--The term ``employee'' has the meaning given such
term under section 8331(1) or 8401(11) of title 5, United States
Code.
(7) Executive director.--The term ``Executive Director of the
Federal Retirement Thrift Investment Board'' or ``Executive
Director'' means the Executive Director appointed under section
8474 of title 5, United States Code.
(8) FERS.--The term ``FERS'' means the Federal Employees'
Retirement System.
(9) FERS covered.--The term ``FERS covered'', with respect to
any service, means service that is subject to chapter 84 of title
5, United States Code.
(10) Former employee.--The term ``former employee'' means an
individual who was an employee, but who is not an annuitant.
(11) OASDI taxes.--The term ``OASDI taxes'' means the OASDI
employee tax and the OASDI employer tax.
(12) OASDI employee tax.--The term ``OASDI employee tax'' means
the tax imposed under section 3101(a) of the Internal Revenue Code
of 1986 (relating to Old-Age, Survivors and Disability Insurance).
(13) OASDI employer tax.--The term ``OASDI employer tax'' means
the tax imposed under section 3111(a) of the Internal Revenue Code
of 1986 (relating to Old-Age, Survivors and Disability Insurance).
(14) OASDI trust funds.--The term ``OASDI trust funds'' means
the Federal Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund.
(15) Office.--The term ``Office'' means the Office of Personnel
Management.
(16) Retirement coverage determination.--The term ``retirement
coverage determination'' means a determination by an employee or
agent of the Government as to whether a particular type of
Government service is CSRS covered, CSRS-Offset covered, FERS
covered, or Social Security-Only covered.
(17) Retirement coverage error.--The term ``retirement coverage
error'' means an erroneous retirement coverage determination that
was in effect for a minimum period of 3 years of service after
December 31, 1986.
(18) Social security-only covered.--The term ``Social Security-
Only covered'', with respect to any service, means Government
service that--
(A) constitutes employment under section 210 of the Social
Security Act (42 U.S.C. 410); and
(B)(i) is subject to OASDI taxes; but
(ii) is not subject to CSRS or FERS.
(19) Survivor.--The term ``survivor'' has the meaning given
such term under section 8331(10) or 8401(28) of title 5, United
States Code.
(20) Thrift savings fund.--The term ``Thrift Savings Fund''
means the Thrift Savings Fund established under section 8437 of
title 5, United States Code.

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(a) In General.--This title shall apply with respect to retirement
coverage errors that occur before, on, or after the date of the
enactment of this Act.
(b) Limitation.--Except as otherwise provided in this title, this
title shall not apply to any erroneous retirement coverage
determination that was in effect for a period of less than 3 years of
service after December 31, 1986.

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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

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(a) Applicability.--This section shall apply in the case of any
employee or former employee who should be (or should have been) FERS
covered but, as a result of a retirement coverage error, is (or was)
CSRS covered or CSRS-Offset covered instead.
(b) Uncorrected Error.--
(1) Applicability.--This subsection applies if the retirement
coverage error has not been corrected before the effective date of
the regulations described under paragraph (3). As soon as
practicable after discovery of the error, and subject to the right
of an election under paragraph (2), if CSRS covered or CSRS-Offset
covered, such individual shall be treated as CSRS-Offset covered,
retroactive to the date of the retirement coverage error.
(2) Coverage.--
(A) Election.--Upon written notice of a retirement coverage
error, an individual may elect to be CSRS-Offset covered or
FERS covered, effective as of the date of the retirement
coverage error. Such election shall be made not later than 180
days after the date of receipt of such notice.
(B) Nonelection.--If the individual does not make an
election by the date provided under subparagraph (A), a CSRS-
Offset covered individual shall remain CSRS-Offset covered and
a CSRS covered individual shall be treated as CSRS-Offset
covered.
(3) Regulations.--The Office shall prescribe regulations to
carry out this subsection.
(c) Corrected Error.--
(1) Applicability.--This subsection applies if the retirement
coverage error was corrected before the effective date of the
regulations described under subsection (b).
(2) Coverage.--
(A) Election.--
(i) CSRS-offset covered.--Not later than 180 days after
the date of the enactment of this Act, the Office shall
prescribe regulations authorizing individuals to elect,
during the 18-month period immediately following the
effective date of such regulations, to be CSRS-Offset
covered, effective as of the date of the retirement
coverage error.
(ii) Thrift savings fund contributions.--If under this
section an individual elects to be CSRS-Offset covered, all
employee contributions to the Thrift Savings Fund made
during the period of FERS coverage (and earnings on such
contributions) may remain in the Thrift Savings Fund in
accordance with regulations prescribed by the Executive
Director, notwithstanding any limit under title 5, United
States Code, that would otherwise be applicable.
(B) Previous settlement payment.--An individual who
previously received a payment ordered by a court or provided as
a settlement of claim for losses resulting from a retirement
coverage error shall not be entitled to make an election under
this subsection unless that amount is waived in whole or in
part under section 2208, and any amount not waived is repaid.
(C) Ineligibility for election.--An individual who,
subsequent to correction of the retirement coverage error,
received a refund of retirement deductions under section 8424
of title 5, United States Code, or a distribution under section
8433(b), (c), or (h)(1)(A) of title 5, United States Code, may
not make an election under this subsection.
(3) Corrective action to remain in effect.--If an individual is
ineligible to make an election or does not make an election under
paragraph (2) before the end of any time limitation under this
subsection, the corrective action taken before such time limitation
shall remain in effect.

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(a) In General.--This section shall apply in the case of an
individual who is--
(1) an annuitant who should have been FERS covered but, as a
result of a retirement coverage error, was CSRS covered or CSRS-
Offset covered instead; or
(2) a survivor of an employee who should have been FERS covered
but, as a result of a retirement coverage error, was CSRS covered
or CSRS-Offset covered instead.
(b) Coverage.--
(1) Election.--Not later than 180 days after the date of the
enactment of this Act, the Office shall prescribe regulations
authorizing an individual described under subsection (a) to elect
CSRS-Offset coverage or FERS coverage, effective as of the date of
the retirement coverage error.
(2) Time limitation.--An election under this subsection shall
be made not later than 18 months after the effective date of the
regulations prescribed under paragraph (1).
(3) Reduced annuity.--
(A) Amount in account.--If the individual elects CSRS-
Offset coverage, the amount in the employee's Thrift Savings
Fund account under subchapter III of chapter 84 of title 5,
United States Code, on the date of retirement that represents
the Government's contributions and earnings on those
contributions (whether or not such amount was subsequently
distributed from the Thrift Savings Fund) will form the basis
for a reduction in the individual's annuity, under regulations
prescribed by the Office.
(B) Reduction.--The reduced annuity to which the individual
is entitled shall be equal to an amount which, when taken
together with the amount referred to in subparagraph (A), would
result in the present value of the total being actuarially
equivalent to the present value of an unreduced CSRS-Offset
annuity that would have been provided the individual.
(4) Reduced benefit.--If--
(A) a surviving spouse elects CSRS-Offset benefits; and
(B) a FERS basic employee death benefit under section
8442(b) of title 5, United States Code, was previously paid,
then the survivor's CSRS-Offset benefit shall be subject to a
reduction, under regulations prescribed by the Office. The reduced
annuity to which the individual is entitled shall be equal to an
amount which, when taken together with the amount of the payment
referred to under subparagraph (B) would result in the present
value of the total being actuarially equivalent to the present
value of an unreduced CSRS-Offset annuity that would have been
provided the individual.
(5) Previous settlement payment.--An individual who previously
received a payment ordered by a court or provided as a settlement
of claim for losses resulting from a retirement coverage error may
not make an election under this subsection unless repayment of that
amount is waived in whole or in part under section 2208, and any
amount not waived is repaid.
(c) Nonelection.--If the individual does not make an election under
subsection (b) before any time limitation under this section, the
retirement coverage shall be subject to the following rules:
(1) Corrective action previously taken.--If corrective action
was taken before the end of any time limitation under this section,
that corrective action shall remain in effect.
(2) Corrective action not previously taken.--If corrective
action was not taken before such time limitation, the employee
shall be CSRS-Offset covered, retroactive to the date of the
retirement coverage error.
CHAPTER 2--EMPLOYEE WHO SHOULD HAVE BEEN FERS COVERED, CSRS-OFFSET
COVERED, OR CSRS COVERED, BUT WHO WAS ERRONEOUSLY SOCIAL SECURITY-ONLY
COVERED INSTEAD

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This chapter shall apply in the case of any employee who--
(1) should be (or should have been) FERS covered but, as a
result of a retirement coverage error, is (or was) Social Security-
Only covered instead;
(2) should be (or should have been) CSRS-Offset covered but, as
a result of a retirement coverage error, is (or was) Social
Security-Only covered instead; or
(3) should be (or should have been) CSRS covered but, as a
result of a retirement coverage error, is (or was) Social Security-
Only covered instead.

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(a) Uncorrected Error.--If the retirement coverage error has not
been corrected, as soon as practicable after discovery of the error,
such individual shall be covered under the correct retirement coverage,
effective as of the date of the retirement coverage error.
(b) Corrected Error.--If the retirement coverage error has been
corrected, 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

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IS ERRONEOUSLY CSRS OR CSRS-OFFSET COVERED INSTEAD.
(a) Applicability.--This section applies in the case of a
retirement coverage error in which a Social Security-Only covered
employee was erroneously CSRS covered or CSRS-Offset covered.
(b) Uncorrected Error.--
(1) Applicability.--This subsection applies if the retirement
coverage error has not been corrected before the effective date of
the regulations described in paragraph (3).
(2) Coverage.--In the case of an individual who is erroneously
CSRS covered, as soon as practicable after discovery of the error,
and subject to the right of an election under paragraph (3), such
individual shall be CSRS-Offset covered, effective as of the date
of the retirement coverage error.
(3) Election.--
(A) In general.--Upon written notice of a retirement
coverage error, an individual may elect to be CSRS-Offset
covered or Social Security-Only covered, effective as of the
date of the retirement coverage error. Such election shall be
made not later than 180 days after the date of receipt of such
notice.
(B) Nonelection.--If the individual does not make an
election before the date provided under subparagraph (A), the
individual shall remain CSRS-Offset covered.
(C) Regulations.--The Office shall prescribe regulations to
carry out this paragraph.
(c) Corrected Error.--
(1) Applicability.--This subsection applies if the retirement
coverage error was corrected before the effective date of the
regulations described under subsection (b)(3).
(2) Election.--Not later than 180 days after the date of the
enactment of this Act, the Office shall prescribe regulations
authorizing individuals to elect, during the 18-month period
immediately following the effective date of such regulations, to be
CSRS-Offset covered or Social Security-Only covered, effective as
of the date of the retirement coverage error.
(3) Nonelection.--If an eligible individual does not make an
election under paragraph (2) before the end of any time limitation
under this subsection, the corrective action taken before such time
limitation shall remain in effect.
CHAPTER 4--EMPLOYEE WHO WAS ERRONEOUSLY FERS COVERED

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COVERED, OR CSRS-OFFSET COVERED AND IS NOT FERS-ELIGIBLE,
BUT WHO IS ERRONEOUSLY FERS COVERED INSTEAD.
(a) Applicability.--This section applies in the case of a
retirement coverage error in which a Social Security-Only covered, CSRS
covered, or CSRS-Offset covered employee not eligible to elect FERS
coverage under authority of section 8402(c) of title 5, United States
Code, was erroneously FERS covered.
(b) Uncorrected Error.--
(1) Applicability.--This subsection applies if the retirement
coverage error has not been corrected before the effective date of
the regulations described in paragraph (2).
(2) Coverage.--
(A) Election.--
(i) In general.--Upon written notice of a retirement
coverage error, an individual may elect to remain FERS
covered or to be Social Security-Only covered, CSRS
covered, or CSRS-Offset covered, as would have applied in
the absence of the erroneous retirement coverage
determination, effective as of the date of the retirement
coverage error. Such election shall be made not later than
180 days after the date of receipt of such notice.
(ii) Treatment of fers election.--An election of FERS
coverage under this subsection is deemed to be an election
under section 301 of the Federal Employees Retirement
System Act of 1986 (5 U.S.C. 8331 note; Public Law 99-335;
100 Stat. 599).
(B) Nonelection.--If the individual does not make an
election before the date provided under subparagraph (A), the
individual shall remain FERS covered, effective as of the date
of the retirement coverage error.
(3) Employee contributions in thrift savings fund.--If under
this section, an individual elects to be Social Security-Only
covered, CSRS covered, or CSRS-Offset covered, all employee
contributions to the Thrift Savings Fund made during the period of
erroneous FERS coverage (and all earnings on such contributions)
may remain in the Thrift Savings Fund in accordance with
regulations prescribed by the Executive Director, notwithstanding
any limit under section 8351 or 8432 of title 5, United States
Code.
(4) Regulations.--Except as provided under paragraph (3), the
Office shall prescribe regulations to carry out this subsection.
(c) Corrected Error.--
(1) Applicability.--This subsection applies if the retirement
coverage error was corrected before the effective date of the
regulations described under paragraph (2).
(2) Election.--Not later than 180 days after the date of the
enactment of this Act, the Office shall prescribe regulations
authorizing individuals to elect, during the 18-month period
immediately following the effective date of such regulations to
remain Social Security-Only covered, CSRS covered, or CSRS-Offset
covered, or to be FERS covered, effective as of the date of the
retirement coverage error.
(3) Nonelection.--If an eligible individual does not make an
election under paragraph (2), the corrective action taken before
the end of any time limitation under this subsection shall remain
in effect.
(4) Treatment of fers election.--An election of FERS coverage
under this subsection is deemed to be an election under section 301
of the Federal Employees Retirement System Act of 1986 (5 U.S.C.
8331 note; Public Law 99-335; 100 Stat. 599).

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CSRS-OFFSET COVERED, OR SOCIAL SECURITY-ONLY COVERED, BUT
WHO WAS ERRONEOUSLY FERS COVERED INSTEAD WITHOUT AN
ELECTION.
(a) In General.--
(1) FERS election prevented.--If an individual was prevented
from electing FERS coverage because the individual was erroneously
FERS covered during the period when the individual was eligible to
elect FERS under title III of the Federal Employees Retirement
System Act or the Federal Employees' Retirement System Open
Enrollment Act of 1997 (Public Law 105-61; 111 Stat. 1318 et seq.),
the individual--
(A) is deemed to have elected FERS coverage; and
(B) shall remain covered by FERS, unless the individual
declines, under regulations prescribed by the Office, to be
FERS covered.
(2) Declining fers coverage.--If an individual described under
paragraph (1)(B) declines to be FERS covered, such individual shall
be CSRS covered, CSRS-Offset covered, or Social Security-Only
covered, as would apply in the absence of a FERS election,
effective as of the date of the erroneous retirement coverage
determination.
(b) Employee Contributions in Thrift Savings Fund.--If under this
section, an individual declines to be FERS covered and instead is
Social Security-Only covered, CSRS covered, or CSRS-Offset covered, as
would apply in the absence of a FERS election, all employee
contributions to the Thrift Savings Fund made during the period of
erroneous FERS coverage (and all earnings on such contributions) may
remain in the Thrift Savings Fund in accordance with regulations
prescribed by the Executive Director, notwithstanding any limit under
title 5, United States Code, that would otherwise be applicable.
(c) Inapplicability of Duration of Erroneous Coverage.--This
section shall apply regardless of the length of time the erroneous
coverage determination remained in effect.

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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

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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.

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(a) Uncorrected Error.--If the retirement coverage error has not
been corrected, as soon as practicable after discovery of the error,
such individual shall be covered under the correct retirement coverage,
effective as of the date of the retirement coverage error.
(b) Corrected Error.--If the retirement coverage error has been
corrected before the effective date of this title, the corrective
action taken before such date shall remain in effect.
CHAPTER 6--EMPLOYEE WHO SHOULD HAVE BEEN CSRS COVERED, BUT WHO WAS
ERRONEOUSLY CSRS-OFFSET COVERED INSTEAD

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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.

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(a) Uncorrected Error.--If the retirement coverage error has not
been corrected, as soon as practicable after discovery of the error,
such individual shall be covered under the correct retirement coverage,
effective as of the date of the retirement coverage error.
(b) Corrected Error.--If the retirement coverage error has been
corrected before the effective date of this title, the corrective
action taken before such date shall remain in effect.
Subtitle B--General Provisions

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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.

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ADMINISTERING THIS TITLE.
(a) Applicability.--The authorities identified in this subsection
are--
(1) the Director of the Office of Personnel Management;
(2) the Commissioner of Social Security; and
(3) the Executive Director of the Federal Retirement Thrift
Investment Board.
(b) Authority To Obtain Information.--Each authority identified in
subsection (a) may secure directly from any department or agency of the
United States information necessary to enable such authority to carry
out its responsibilities under this title. Upon request of the
authority involved, the head of the department or agency involved shall
furnish that information to the requesting authority.
(c) Authority To Provide Information.--Each authority identified in
subsection (a) may provide directly to any department or agency of the
United States all information such authority believes necessary to
enable the department or agency to carry out its responsibilities under
this title.
(d) Limitation; Safeguards.--Each of the respective authorities
under subsection (a) shall--
(1) request or provide only such information as that authority
considers necessary; and
(2) establish, by regulation or otherwise, appropriate
safeguards to ensure that any information obtained under this
section shall be used only for the purpose authorized.

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(a) CSRS Deposit.--In the case of a retirement coverage error in
which--
(1) a FERS covered employee was erroneously CSRS covered or
CSRS-Offset covered;
(2) the employee made a service credit deposit under the CSRS
rules; and
(3) there is a subsequent retroactive change to FERS coverage,
the excess of the amount of the CSRS civilian or military service
credit deposit over the FERS civilian or military service credit
deposit, together with interest computed in accordance with paragraphs
(2) and (3) of section 8334(e) of title 5, United States Code, and
regulations prescribed by the Office, shall be paid to the employee,
the annuitant or, in the case of a deceased employee, to the individual
entitled to lump-sum benefits under section 8424(d) of title 5, United
States Code.
(b) FERS Deposit.--
(1) Applicability.--This subsection applies in the case of an
erroneous retirement coverage determination in which--
(A) the employee owed a service credit deposit under
section 8411(f) of title 5, United States Code; and
(B)(i) there is a subsequent retroactive change to CSRS or
CSRS-Offset coverage; or
(ii) the service becomes creditable under chapter 83 of
title 5, United States Code.
(2) Reduced annuity.--
(A) In general.--If at the time of commencement of an
annuity there is remaining unpaid CSRS civilian or military
service credit deposit for service described under paragraph
(1), the annuity shall be reduced based upon the amount unpaid
together with interest computed in accordance with section
8334(e)(2) and (3) of title 5, United States Code, and
regulations prescribed by the Office.
(B) Amount.--The reduced annuity to which the individual is
entitled shall be equal to an amount that, when taken together
with the amount referred to under subparagraph (A), would
result in the present value of the total being actuarially
equivalent to the present value of the unreduced annuity
benefit that would have been provided the individual.
(3) Survivor annuity.--
(A) In general.--If at the time of commencement of a
survivor annuity, there is remaining unpaid any CSRS service
credit deposit described under paragraph (1), and there has
been no actuarial reduction in an annuity under paragraph (2),
the survivor annuity shall be reduced based upon the amount
unpaid together with interest computed in accordance with
section 8334(e)(2) and (3) of title 5, United States Code, and
regulations prescribed by the Office.
(B) Amount.--The reduced survivor annuity to which the
individual is entitled shall be equal to an amount that, when
taken together with the amount referred to under subparagraph
(A), would result in the present value of the total being
actuarially equivalent to the present value of an unreduced
survivor annuity benefit that would have been provided the
individual.

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MISCLASSIFIED EMPLOYEES.
(a) Definitions.--In this section, the term--
(1) ``covered individual'' means any employee, former employee,
or annuitant who--
(A) is or was employed erroneously subject to CSRS coverage
as a result of a retirement coverage error; and
(B) is or was retroactively converted to CSRS-offset
coverage, FERS coverage, or Social Security-Only coverage; and
(2) ``excess CSRS deduction amount'' means an amount equal to
the difference between the CSRS deductions withheld and the CSRS-
Offset or FERS deductions, if any, due with respect to a covered
individual during the entire period the individual was erroneously
subject to CSRS coverage as a result of a retirement coverage
error.
(b) Reports to Commissioner of Social Security.--
(1) In general.--In order to carry out the Commissioner of
Social Security's responsibilities under title II of the Social
Security Act, the Commissioner may request the head of each agency
that employs or employed a covered individual to report (in
coordination with the Office of Personnel Management) in such form
and within such timeframe as the Commissioner may specify, any or
all of--
(A) the total wages (as defined in section 3121(a) of the
Internal Revenue Code of 1986) paid to such individual during
each year of the entire period of the erroneous CSRS coverage;
and
(B) such additional information as the Commissioner may
require for the purpose of carrying out the Commissioner's
responsibilities under title II of the Social Security Act (42
U.S.C. 401 et seq.).
(2) Compliance.--The head of an agency or the Office shall
comply with a request from the Commissioner under paragraph (1).
(3) Wages.--For purposes of section 201 of the Social Security
Act (42 U.S.C. 401), wages reported under this subsection shall be
deemed to be wages reported to the Secretary of the Treasury or the
Secretary's delegates pursuant to subtitle F of the Internal
Revenue Code of 1986.
(c) Payment Relating to OASDI Employee Taxes.--The Office shall
transfer from the Civil Service Retirement and Disability Fund to the
General Fund of the Treasury an amount equal to the lesser of the
excess CSRS deduction amount or the OASDI taxes due for covered
individuals (as adjusted by amounts transferred relating to applicable
OASDI employee taxes as a result of corrections made, including
corrections made before the date of the enactment of this Act). If the
excess CSRS deductions exceed the OASDI taxes, any difference shall be
paid to the covered individual or survivors, as appropriate.
(d) Payment of OASDI Employer Taxes.--
(1) In general.--Each employing agency shall pay an amount
equal to the OASDI employer taxes owed with respect to covered
individuals during the applicable period of erroneous coverage (as
adjusted by amounts transferred for the payment of such taxes as a
result of corrections made, including corrections made before the
date of the enactment of this Act).
(2) Payment.--Amounts paid under this subsection shall be
determined subject to any limitation under section 6501 of the
Internal Revenue Code of 1986.

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(a) Applicability.--This section applies to an individual who--
(1) is eligible to make an election of coverage under section
2101 or 2102, and only if FERS coverage is elected (or remains in
effect) for the employee involved; or
(2) is described in section 2111, and makes or has made
retroactive employee contributions to the Thrift Savings Fund under
regulations prescribed by the Executive Director.
(b) Payment Into Thrift Savings Fund.--
(1) In general.--
(A) Payment.--With respect to an individual to whom this
section applies, the employing agency shall pay to the Thrift
Savings Fund under subchapter III of chapter 84 of title 5,
United States Code, for credit to the account of the employee
involved, an amount equal to the earnings which are disallowed
under section 8432a(a)(2) of such title on the employee's
retroactive contributions to such Fund.
(B) Amount.--Earnings under subparagraph (A) shall be
computed in accordance with the procedures for computing lost
earnings under section 8432a of title 5, United States Code.
The amount paid by the employing agency shall be treated for
all purposes as if that amount had actually been earned on the
basis of the employee's contributions.
(C) Exceptions.--If an individual made retroactive
contributions before the effective date of the regulations
under section 2101(c), the Director may provide for an
alternative calculation of lost earnings to the extent that a
calculation under subparagraph (B) is not administratively
feasible. The alternative calculation shall yield an amount
that is as close as practicable to the amount computed under
subparagraph (B), taking into account earnings previously paid.
(2) Additional employee contribution.--In cases in which the
retirement coverage error was corrected before the effective date
of the regulations under section 2101(c), the employee involved
shall have an additional opportunity to make retroactive
contributions for the period of the retirement coverage error
(subject to applicable limits), and such contributions (including
any contributions made after the date of the correction) shall be
treated in accordance with paragraph (1).
(c) Regulations.--
(1) Executive director.--The Executive Director shall prescribe
regulations appropriate to carry out this section relating to
retroactive employee contributions and payments made on or after
the effective date of the regulations under section 2101(c).
(2) Office.--The Office, in consultation with the Federal
Retirement Thrift Investment Board, shall prescribe regulations
appropriate to carry out this section relating to the calculation
of lost earnings on retroactive employee contributions made before
the effective date of the regulations under section 2101(c).

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CSRDF.
(a) Certain Excess Agency Contributions To Remain in the CSRDF.--
(1) In general.--Any amount described under paragraph (2)
shall--
(A) remain in the CSRDF; and
(B) may not be paid or credited to an agency.
(2) Amounts.--Paragraph (1) refers to any amount of
contributions made by an agency under section 8423 of title 5,
United States Code, on behalf of any employee, former employee, or
annuitant (or survivor of such employee, former employee, or
annuitant) who makes an election to correct a retirement coverage
error under this title, that the Office determines to be excess as
a result of such election.
(b) Additional Employee Retirement Deductions To Be Paid by
Agency.--If a correction in a retirement coverage error results in an
increase in employee deductions under section 8334 or 8422 of title 5,
United States Code, that cannot be fully paid by a reallocation of
otherwise available amounts previously deducted from the employee's pay
as employment taxes or retirement deductions, the employing agency--
(1) shall pay the required additional amount into the CSRDF;
and
(2) shall not seek repayment of that amount from the employee,
former employee, annuitant, or survivor.

3b4afde767de6424b5350ad56f8bce089e471a86949b4eccf7f753b4a0263d76

No agency shall place an individual under CSRS coverage unless--
(1) the individual has been employed with CSRS coverage within
the preceding 365 days; or
(2) the Office has agreed in writing that the agency's coverage
determination is correct.

c9ead72addecd5d19a548694863c695ec8ed777405405a395ed52d0aca56f4f9

(a) In General.--The Director of the Office of Personnel Management
may--
(1) extend the deadlines for making elections under this title
in circumstances involving an individual's inability to make a
timely election due to a cause beyond the individual's control;
(2) provide for the reimbursement of necessary and reasonable
expenses incurred by an individual with respect to settlement of a
claim for losses resulting from a retirement coverage error,
including attorney's fees, court costs, and other actual expenses;
(3) compensate an individual for monetary losses that are a
direct and proximate result of a retirement coverage error,
excluding claimed losses relating to forgone contributions and
earnings under the Thrift Savings Plan under subchapter III of
chapter 84 of title 5, United States Code, and all other investment
opportunities; and
(4) waive payments required due to correction of a retirement
coverage error under this title.
(b) Similar Actions.--In exercising the authority under this
section, the Director shall, to the extent practicable, provide for
similar actions in situations involving similar circumstances.
(c) Judicial Review.--Actions taken under this section are final
and conclusive, and are not subject to administrative or judicial
review.
(d) Regulations.--The Office of Personnel Management shall
prescribe regulations regarding the process and criteria used in
exercising the authority under this section.
(e) Report.--The Office of Personnel Management shall, not later
than 180 days after the date of the enactment of this Act, and annually
thereafter for each year in which the authority provided in this
section is used, submit a report to each House of Congress on the
operation of this section.

b8e105b0aaad5ad5c0496df9c1e6b6ad9ca8d098a8f2521e88959249ecf7e66a

(a) In General.--In addition to the regulations specifically
authorized in this title, the Office may prescribe such other
regulations as are necessary for the administration of this title.
(b) Former Spouse.--The regulations prescribed under this title
shall provide for protection of the rights of a former spouse with
entitlement to an apportionment of benefits or to survivor benefits
based on the service of the employee.
Subtitle C--Other Provisions

703183d1a5f4c6e2ffb6c50456969b775ac4e4f1ab73086f3b7ae0321bfa9b14

FEDERAL RETIREMENT SYSTEMS.
(a) Foreign Service.--Sections 827 and 851 of the Foreign Service
Act of 1980 (22 U.S.C. 4067 and 4071) shall apply with respect to this
title in the same manner as if this title were part of--
(1) the Civil Service Retirement System, to the extent this
title relates to the Civil Service Retirement System; and
(2) the Federal Employees' Retirement System, to the extent
this title relates to the Federal Employees' Retirement System.
(b) Central Intelligence Agency.--Sections 292 and 301 of the
Central Intelligence Agency Retirement Act (50 U.S.C. 2141 and 2151)
shall apply with respect to this title in the same manner as if this
title were part of--
(1) the Civil Service Retirement System, to the extent this
title relates to the Civil Service Retirement System; and
(2) the Federal Employees' Retirement System, to the extent
this title relates to the Federal Employees' Retirement System.

20f2380543a1b18356267208a4d0c3d9737d07895e2f3dfdfaa43370f274dfd0

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.

c06482c2a393c7a7b18ffba8cfa5f29c51a4a5a2693999829d5e835b729aa48d

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

ec4a3ee6fc0496e719005bf88ddef93e454e5a468fba20bfd4a54487b7d8f6ea

Except as otherwise provided in this title, this title shall take
effect on the date of the enactment of this Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

e9acc70c1a4703b6c451c1bf5a5a8d246824a2ee50922fdf5438a19e75656dc7

Long-Term Care Security Act

Other Sections

TITLE I

TITLE II

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