[Senate Report 117-173]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 515
117th Congress     }                                    {       Report
                                 SENATE
 2d Session        }                                    {      117-173 
_______________________________________________________________________

                                     



                    FIRST RESPONDER FAIR RETURN FOR

                       EMPLOYEES ON THEIR INITIAL

                         RETIREMENT EARNED ACT

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                H.R. 521

          TO PERMIT DISABLED LAW ENFORCEMENT OFFICERS, CUSTOMS
           AND BORDER PROTECTION OFFICERS, FIREFIGHTERS, AIR
            TRAFFIC CONTROLLERS, NUCLEAR MATERIALS COURIERS,
         MEMBERS OF THE CAPITOL POLICE, MEMBERS OF THE SUPREME
          COURT POLICE, EMPLOYEES OF THE CENTRAL INTELLIGENCE
          AGENCY PERFORMING INTELLIGENCE ACTIVITIES ABROAD OR
             HAVING SPECIALIZED SECURITY REQUIREMENTS, AND
          DIPLOMATIC SECURITY SPECIAL AGENTS OF THE DEPARTMENT
          OF STATE TO RECEIVE RETIREMENT BENEFITS IN THE SAME
                MANNER AS IF THEY HAD NOT BEEN DISABLED

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


               September 28, 2022.--Ordered to be printed  
               
                             _________
                              
                 U.S. GOVERNMENT PUBLISHING OFFICE
                 
29-010                   WASHINGTON : 2022
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              RAND PAUL, Kentucky
JACKY ROSEN, Nevada                  JAMES LANKFORD, Oklahoma
ALEX PADILLA, California             MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
                                     JOSH HAWLEY, Missouri

                   David M. Weinberg, Staff Director
                    Zachary I. Schram, Chief Counsel
            Lena C. Chang, Director of Governmental Affairs
              Devin M. Parsons, Professional Staff Member
                Pamela Thiessen, Minority Staff Director
            Sam J. Mulopulos, Minority Deputy Staff Director
       Cara G. Mumford, Minority Director of Governmental Affairs
                  Andrew J. Hopkins, Minority Counsel
                     Laura W. Kilbride, Chief Clerk

















                                                      Calendar No. 515
117th Congress     }                                    {       Report
                                 SENATE
 2d Session        }                                    {      117-173

======================================================================



 
 FIRST RESPONDER FAIR RETURN FOR EMPLOYEES ON THEIR INITIAL RETIREMENT 
                               EARNED ACT

                                _______
                                

               September 28, 2022.--Ordered to be printed

                                _______
                                

 Mr. Peters, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                        [To accompany H.R. 521]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (H.R. 521) to permit 
disabled law enforcement officers, customs and border 
protection officers, firefighters, air traffic controllers, 
nuclear materials couriers, members of the Capitol Police, 
members of the Supreme Court Police, employees of the Central 
Intelligence Agency performing intelligence activities abroad 
or having specialized security requirements, and diplomatic 
security special agents of the Department of State to receive 
retirement benefits in the same manner as if they had not been 
disabled, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                     Page
  I. Purpose and Summary..............................................  1
 II. Background and Need for the Legislation..........................  2
III. Legislative History..............................................  4
 IV. Section-by-Section Analysis of the Bill, as Reported.............  4
  V. Evaluation of Regulatory Impact..................................  6
 VI. Congressional Budget Office Cost Estimate........................  7
VII. Changes in Existing Law Made by the Bill, as Reported...........  11

                         I. Purpose and Summary

    H.R. 521, the First Responder Fair Return for Employees on 
Their Initial Retirement Earned Act, or First Responder Fair 
RETIRE Act, would allow federal first responders who are 
disabled or injured on-the-job to remain eligible for enhanced 
retirement benefits if they return to certain positions in the 
civil service. The first responders include federal law 
enforcement officers, firefighters, nuclear materials couriers, 
Customs and Border Protection officers, air traffic 
controllers, Capitol Police and Supreme Court Police officers, 
certain Central Intelligence Agency (CIA) employees, and State 
Department special agents. Under the bill, when injured first 
responders continue related work in the federal government in 
administrative or supervisory positions, they would remain 
eligible for the same enhanced retirement package they had as 
first responders.

              II. Background and Need for the Legislation

    Over the years, Congress has enacted a number of policies 
related to providing enhanced retirement benefits for certain 
categories of federal personnel. In 1947, Congress first passed 
enhanced retirement benefits for Federal Bureau of 
Investigation (FBI) agents.\1\ One year later, the House 
Committee on Post Office and Civil Service filed a committee 
report referencing the change in benefits for FBI officers that 
stated, ``it is only fair to grant such retirement benefits 
that are provided for under the bill to law enforcement agents 
in all parts of the Government at an earlier age, because it is 
physically impossible to carry on the necessary strenuous 
activities after reaching 50 years of age.''\2\ Soon after, 
Congress passed a law to provide the same benefits to a broader 
group of federal law enforcement officers.\3\
---------------------------------------------------------------------------
    \1\Pub. L. No. 80-168 (1947).
    \2\House Committee on Post Office and Civil Service, Amending the 
Civil Service Retirement Act to Provide Annuities for Certain Federal 
Employees, 80th Cong. (May 1948).
    \3\Congressional Research Service, Retirement Benefits for Federal 
Law Enforcement Personnel (R42631) (Sept. 5, 2017) (www.crs.gov/
Reports/R42631); Pub. L. No. 80-879 (1948).
---------------------------------------------------------------------------
    Although law enforcement officers were the first federal 
personnel group to be granted enhanced retirement benefits, 
certain positions within the first responder category have 
either been added to the definition of law enforcement officer 
for retirement purposes or provided with equivalent benefits 
through direct legislation.\4\ Specifically, Congress passed 
legislation to grant air traffic controllers and firefighters 
enhanced retirement benefits in 1972, followed by U.S. Capitol 
Police in 1990, nuclear materials couriers in 1998, U.S. 
Supreme Court Police in 2000, and Customs and Border Protection 
officers in 2008.\5\ Federal first responders hired prior to 
1984 are eligible for enhanced retirement benefits under the 
Civil Service Retirement System (CSRS), and those hired on or 
after 1984 are covered under the Federal Employees' Retirement 
System (FERS).\6\ The First Responder Fair RETIRE Act also 
applies to certain Central Intelligence Agency employees and 
special agents at Department of State with similar retirement 
plans to the enhanced retirement groups under FERS or CSRS.\7\
---------------------------------------------------------------------------
    \4\Congressional Research Service, Retirement Benefits for Federal 
Law Enforcement Personnel (R42631) (Sept. 5, 2017) (www.crs.gov/
Reports/R42631).
    \5\Pub. L. No. 92-297 (1972); Pub. L. No. 92-382 (1972); Pub. L. 
No. 101-428 (1990); Strom Thurmond National Defense Authorization Act 
for Fiscal Year 1999, Pub. L. No. 105-261, Sec. 3154 (1998); 
Departments of Commerce, Justice, and State, the Judiciary, and Related 
Agencies Appropriations Act, 2001, Pub. L. No. 106-553, Sec. 308 
(2000); Consolidated Appropriations Act, 2008, Pub. L. No. 110-161, 
Division E, Sec. 535 (2007).
    \6\Congressional Research Service, supra note 4.
    \7\Congressional Research Service, Federal Retirement Plans: 
Frequently Asked Questions (R47084) (May 2, 2022) (www.crs.gov/Reports/
R47084).
---------------------------------------------------------------------------
    Federal first responders eligible for an enhanced annuity 
are subject to mandatory retirement at age 56 or 57 due to the 
demanding and rigorous nature of their work.\8\ Under both CSRS 
and FERS, personnel may start receiving their enhanced annuity 
at the age of 50 if 20 years of service has been completed.\9\ 
First responders who have enhanced retirement benefits 
contribute an additional 0.5% of their pay toward retirement 
compared to other federal employees.\10\ This higher 
contribution allows first responders to receive an augmented 
annuity available after 20 years of service in lieu of the 
standard 30 years of service required in other civil service 
positions.\11\
---------------------------------------------------------------------------
    \8\5 U.S.C. Sec. 8335; 5 U.S.C. Sec. 8425.
    \9\5 U.S.C. Sec. 8336; 5 U.S.C. Sec. 8412.
    \10\Congressional Research Service, supra note 4.
    \11\National Federation of Federal Employees (nffe.org/wp-content/
uploads/2022/06/2022-Leg-Week-Papers-Fair-Retire.pdf) (accessed Aug. 
25, 2022).
---------------------------------------------------------------------------
    The augmented annuity or monthly pension is the primary 
retirement benefit available to first responders and is 
computed based on years of service, the average of the three 
highest consecutive years of pay, and the accrual rate for each 
year of service.\12\ Personnel eligible for enhanced retirement 
benefits under CSRS accrue benefits at the rate of 2.5% per 
year for their first 20 years of service and 2% per year 
thereafter,while other civil service employees accrue 1.5% per 
year for their first five years of service, 1.75% for years six 
through ten, and 2% for each year after ten.\13\ Personnel 
eligible for enhanced retirement benefits under FERS accrue 
benefits at the rate of 1.7% per year for the first 20 years of 
service and 1% per year thereafter, compared to other federal 
employees who accrue benefits at the rate of 1% or 1.1% per 
year of service.\14\
---------------------------------------------------------------------------
    \12\Congressional Research Service, supra note 4.
    \13\Office of Personnel Management, Retirement Services: CSRS 
Information (www.opm.gov/
retirement-services/csrs-information/computation/) (accessed Aug. 25, 
2022).
    \14\Office of Personnel Management, Retirement Services: FERS 
Information (www.opm.gov/
retirement-services/fers-information/computation/) (accessed Aug. 25, 
2022).
---------------------------------------------------------------------------
    Federal first responders play a critical role in responding 
to natural disasters, domestic terrorism, and other 
emergencies, which places them at a higher risk for work-
related injuries and disabilities. Upon injury, agencies can 
reassign injured first responders into other civil service 
positions, but often such reassignment disqualifies these 
employees from their prior eligibility for enhanced retirement 
benefits. For other federal employees, current law grants civil 
servants who overcome their injuries with the right to be 
placed into ``equivalent positions''' upon returning to work in 
federal government, which enables them to continue to 
contribute their valuable skills and experience to agency 
operations without losing their retirement benefits.\15\ 
However, in the case of federal first responders who are 
suddenly injured, returning to an equivalent, physically 
demanding position that offers enhanced retirement benefits is 
often not feasible.
---------------------------------------------------------------------------
    \15\5 U.S.C. Sec. 8151.
---------------------------------------------------------------------------
    Over the past several decades, a number of first responders 
who have chosen to return to work in civil service positions 
after sustaining injuries have faced significant financial 
penalties for doing so. For example, bill sponsor 
Representative Gerald Connolly (D-VA-11) described the 
experience of a smokejumper during a May 2022 business meeting 
conducted by the House Committee on Oversight and Reform.\16\ 
While on the job managing a wildfire emergency, the smokejumper 
parachuted out of a plane and landed in a tree, subsequently 
dropping 80 feet and breaking his back in five places. Although 
he was 12 years into his career as a first responder, the 
smokejumper needed to reenter the workforce in a different 
position as a result of his injury. He chose to return to a 
position within the federal government, but as noted during the 
hearing, ``the reward for his bravery and his injury and 
service was his removal from the retirement system'' when he 
reentered the civil service.\17\ Due to gaps in current law, 
the former smokejumper lost the 12 years of higher 
contributions he had paid into the enhanced retirement system, 
and now he must complete a 30-year career in order to fulfill 
requirements for his retirement rather than the previously 
prescribed 20-year career guaranteed to federal first 
responders upon entry into public service.\18\
---------------------------------------------------------------------------
    \16\House Committee on Oversight and Reform, Full Committee Markup, 
117th Cong. (May 11, 2022).
    \17\Id.
    \18\National Federation of Federal Employees, supra note 11.
---------------------------------------------------------------------------
    The First Responder Fair RETIRE Act helps fill gaps in the 
current federal retirement law that financially penalize first 
responders who have been injured or disabled when carrying out 
their service. This bill would preserve enhanced retirement 
benefits for first responders who are injured in the line of 
duty but who choose to continue their careers within the 
federal government in related positions that are less 
physically demanding. Doing so will enable first responders who 
sustain injuries to continue providing their skills and 
expertise toward agency missions that save lives and keep 
communities safe.

                        III. Legislative History

    Representative Gerald Connolly (D-VA-11) introduced H.R. 
521, the First Responder Fair RETIRE Act, on January 28, 2021, 
with original cosponsors Representative James Langevin (D-RI-2) 
and Representative Brian Fitzpatrick (R-PA-1). The bill was 
referred to the House Committee on Oversight and Reform. The 
House of Representatives passed the bill under suspension of 
the rules by a vote of 417-0 on July 12, 2022.
    The bill was referred to the Senate Committee on Homeland 
Security and Governmental Affairs on July 13, 2022. The 
Committee considered H.R. 521 at a business meeting on August 
3, 2022. The Committee ordered the bill to be reported 
favorably by voice vote en bloc with Senators Peters, Hassan, 
Sinema, Rosen, Padilla, Ossoff, Portman, Lankford, Romney, 
Scott, and Hawley present.

        IV. Section-by-Section Analysis of the Bill, as Reported


Section 1. Short title

    This section establishes the short title of the bill as the 
``First Responder Fair Return for Employees on Their Initial 
Retirement Earned Act'' or the ``First Responder Fair RETIRE 
Act.''

Sec. 2. Sense of Congress

    This section provides a sense of Congress that it is in the 
national and homeland security interests of the United States 
for federal agencies retain the specialized knowledge and 
experience of individuals who suffer an injury or illness while 
serving as a federal first responder. The sense of Congress 
encourages the appointment of such individuals to positions in 
the same federal agency and geographic location, as well as 
with the same level of pay, to greatest extent possible.

Sec. 3. Retirement for certain employees

    Subsection (a) defines the terms ``affected individual'' 
and ``covered position'' in the context of language the bill 
adds to a section of title 5 related to CSRS. Covered positions 
include the first responder positions of law enforcement 
officers, Customs and Border Protection officers, firefighters, 
air traffic controllers, nuclear materials couriers, members of 
the Capitol Police, and members of the Supreme Court Police. 
Affected individuals are those who sustained an illness or 
injury on-the-job as a first responder that left them 
permanently unable to continue the duties of the covered 
position and who, as a result, have been appointed to a 
different supervisory or administrative position related to the 
first responder activities. The amending language would allow 
the service that affected individuals carry out in their new 
roles to be treated as creditable service toward the CSRS 
retirement coverage they had as first responders, unless the 
individual opts out of such treatment of benefits or there is a 
break of more than three days before the individual transitions 
to the new position. The affected individual is also no longer 
eligible for the creditable service treatment after they meet 
the age and service requirements for mandatory separation as 
applies to their former covered position.
    Subsection (b) defines the terms ``affected individual'' 
and ``covered position'' in the context of language the bill 
adds to a section of title 5 related to FERS. Covered positions 
include the first responder positions of law enforcement 
officers, Customs and Border Protection officers, firefighters, 
air traffic controllers, nuclear materials couriers, members of 
the Capitol Police, and members of the Supreme Court Police. 
Affected individuals are those who sustained an illness or 
injury on-the-job as a first responder that left them 
permanently unable to continue the duties of the covered 
position and who, as a result, have been appointed to a 
different supervisory or administrative position related to the 
first responder activities. The amending language would allow 
the service that affected individuals carry out in their new 
roles to be treated as creditable service toward the FERS 
retirement coverage they had as first responders, unless the 
individual opts out of such treatment of benefits or there is a 
break of more than three days before the individual transitions 
to the new position. The affected individual is also no longer 
eligible for the creditable service treatment after they meet 
the age and service requirements for mandatory separation as 
applies to their former covered position.
    Subsection (c) defines the terms ``affected employee'' and 
``covered position'' in the context of language the bill adds 
to a section of title 50 related to CIA employee participation 
in FERS. The definition of ``covered position'' in this 
subsection includes CIA positions where employees are entitled 
to FERS benefits similar to federal law enforcement officers. 
Affected employees are CIA employees in a covered position who 
have sustained an illness or injury on-the-job that left them 
permanently unable to continue the duties of the position and 
who, as a result, have been appointed to a non-covered position 
in the CIA. The amending language would allow the service that 
affected employees carry out in their new roles to be treated 
as creditable service toward the FERS retirement coverage they 
had in the covered position, unless the individual opts out of 
such treatment of benefits or there is a break of more than 
three days before the individual transitions to the new 
position.
    Subsection (d) defines the terms ``affected special agent'' 
and ``covered position'' in the context of language the bill 
adds to a section of title 22 related to the retirement 
benefits of special agents at the Department of State. The 
definition of ``covered position'' as added by this subsection 
of the bill includes Department of State special agents. 
Affected special agents are those who have sustained an illness 
or injury on-the-job that left them permanently unable to 
continue the duties of the position and who, as a result, have 
been appointed to a non-covered position in the Foreign 
Service. The amending language would allow the service that 
affected special agents carry out in their new roles to be 
treated as creditable service toward the retirement coverage 
they had in the covered position, unless the individual opts 
out of such treatment of benefits or there is a break of more 
than three days before the individual transitions to the new 
position.
    Subsection (e) calls for the Director of the Office of 
Personnel Management to promulgate regulations to carry out the 
amending language in subsections (a) and (b) of this bill 
within one year after the date of the bill's enactment. The 
Director of the CIA is directed to promulgate regulations to 
carry out the amending the language in subsection (c), and the 
Secretary of State is instructed to do so to carry out 
subsection (d). The regulations must require the relevant heads 
of agencies to certify that the injuries or illnesses of the 
affected individuals occurred during the course of carrying out 
their duties and permanently preclude them from continuing to 
serve in the covered position. The regulations must also ensure 
that the relevant heads of agencies appoint the affected 
individuals into supervisory or administrative positions that 
are related to the activities of the covered positions to the 
greatest extent practicable. In addition, the regulations need 
to ensure that the creditable service is treated as the same 
type of service as the covered position where the individual 
suffered the qualifying illness or injury, in accordance with 
the amending language in the bill.
    Subsection (f) specifies that the amendments made by bill 
shall take effect on the date of enactment of the bill and 
shall apply to individuals who suffer qualifying illnesses or 
injuries on or after the date that is two years after bill's 
enactment.

Sec. 4. Determination of budgetary effects

    This section specifies that the budgetary effects of this 
bill will be determined by referring to the ``Budgetary Effects 
of PAYGO Legislation.''

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 23, 2022.
Hon. Gary Peters,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 521, the First 
Responder Fair RETIRE Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Amber 
Marcellino.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

    
    

    The bill would
           Allow certain federal employees who are 
        covered by provisions of enhanced retirement and who 
        become ill or injured while performing the duties of 
        their position to return to work in a different 
        position and remain covered by enhanced retirement
    Estimated budgetary effects would mainly stem from
           Increased direct spending for benefit 
        payments because of earlier retirements that would be 
        calculated under a more generous formula
           Increased revenues from additional 
        retirement contributions paid by employees
           Increased retirement contributions paid by 
        employing agencies out of their discretionary 
        appropriations
    Bill summary: H.R. 521 would allow certain federal 
employees who are covered by provisions of enhanced retirement 
and who become ill or injured while performing the duties of 
their position to remain covered by enhanced retirement even if 
they have to resume duty (as a result of their illness or 
injury) in a position that would otherwise not be covered.
    Under the bill, people in covered positions include law 
enforcement officers, fire fighters, customs and border 
protection agents, air traffic controllers, nuclear materials 
couriers, members of the U.S. Capitol Police, members of the 
Supreme Court Police, Central Intelligence Agency agents, and 
special agents under the Foreign Service Act of 1980.
    Estimated Federal cost: The estimated budgetary effect of 
H.R. 521 is shown in Table 1. The direct spending and revenue 
effects fall in function 600 (income security); the 
discretionary costs of the legislation would affect many budget 
functions.

                                                    Table 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 521
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                By fiscal year, millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2022    2023    2024    2025    2026    2027    2028    2029    2030    2031    2032   2022-2027  2022-2032
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Increases in Direct Spending
 
Estimated Budget Authority................       0       0       0       0       *       *       *       *       1       1       2          *          4
Estimated Outlays.........................       0       0       0       0       *       *       *       *       1       1       2          *          4
 
                                                                  Increases in Revenues
 
Estimated Revenues........................       0       0       0       *       *       *       *       *       *       *       *          *          1
 
                                Net Increase or Decrease (-) in the Deficit From Changes in Direct Spending and Revenues
 
Effect on the Deficit.....................       0       0       0       *       *       *       *       *       *       1       2          *          3
 
                                                     Increases in Spending Subject to Appropriation
 
Estimated Authorization...................       0       0       0       1       2       4     n.e     n.e     n.e     n.e     n.e          7        n.e
Estimated Outlays.........................       0       0       0       1       2       4     n.e     n.e     n.e     n.e     n.e          7        n.e
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding; n.e.=not estimated; * = between -$500,000 and $500,000.

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted near the end of calendar year 2022. The 
provisions of H.R. 521 would apply to employees who first 
suffer an injury or illness two years after enactment.
    Background: According to information from the Office of 
Personnel Management (OPM), approximately 220,000 federal 
employees are in enhanced retirement positions that could be 
affected by H.R. 521. Using data from the Department of 
Agriculture, the Department of Homeland Security, and other 
federal agencies, CBO estimates that under current law about 
3.5 percent (or 8,000 employees) will be injured or become ill 
each year while performing their duties. Of that number, about 
1 percent (or 80 employees) will be unable to return to work in 
a position covered by enhanced retirement because of the nature 
of their injury or illness. When that happens, those employees 
are shifted into standard retirement and cannot retire under 
the provisions of enhanced retirement, which allow for earlier 
eligibility and provide more generous annuity calculations.
    The budgetary effects of allowing those people to receive 
an enhanced retirement under H.R. 521 include the following:
           Outlays for retirement benefits would be 
        larger and would begin sooner for some returning 
        employees because of the more generous annuity 
        calculation for enhanced retirement and the earlier 
        eligibility for retirement. Outlays for federal 
        retirement benefits are classified as direct spending.
           Revenues from affected employees would 
        increase because those workers would be required to pay 
        a larger percentage of their salaries into the Civil 
        Service Retirement and Disability Fund (CSRDF). Those 
        payments are recorded as revenues in the federal 
        budget.
           Outlays from employing agencies would 
        increase because the agencies would be required to pay 
        a larger percentage of their affected employees' 
        salaries into the CSRDF. Such transactions are 
        considered intragovernmental transfers that have no net 
        effect on the deficit. Payments from the agencies are 
        subject to the availability of future appropriations, 
        and receipts from those payments are classified as 
        offsetting receipts.
    Direct spending: CBO estimates that enacting H.R. 521 would 
increase direct spending by $4 million over the 2022-2032 
period because some retirements would occur earlier than under 
current law. Under the bill, people who qualified for earlier 
retirement also would earn larger annual benefits and their 
retirement would trigger earlier payments by the government for 
its share of premiums for retirees under the Federal Employee 
Health Benefits (FEHB) program.
    Eligibility for enhanced retirement currently begins at age 
50 for employees with 20 years of service or at any age with 25 
years of service. Eligibility for standard retirement with a 
full annuity occurs at age 62 with 5 years of service or at age 
60 with 20 years of service. (Employees with 30 years of 
service can retire at earlier ages, depending on factors such 
as their birth year and the applicable retirement system.) 
Using data summarizing the age and service distribution of law 
enforcement officers and historical retirement data for that 
group of employees, CBO estimates that enacting H.R. 521 would 
result in about 30 retirements between 2026 and 2032 that would 
have occurred after 2032 under current law.
    The formula used to calculate the annual benefit for 
enhanced retirement is more generous than the standard formula. 
The annuity for an employee covered by enhanced retirement in 
the Federal Employee Retirement System (FERS) is 1.7 percent 
(rather than the standard 1.0 percent) of the average of the 
employee's three highest consecutive years of salary (high-3), 
multiplied by the number of years of service. For the roughly 
30 retirements that CBO estimates would occur between 2026 and 
2032 as a result of H.R. 521, the average starting annuity is 
estimated to be about $47,000. That calculation is based on an 
assessment that an affected employee's high-3 is likely to stem 
from service completed before an injury or illness. Upon 
returning to the workforce, such an employee's salary is likely 
to be significantly lower because that worker would not return 
to a position that is eligible for pay premiums such as law 
enforcement availability pay, Sunday pay, or night 
differential.
    Earlier retirements also trigger earlier direct spending 
for premiums for the FEHB program. (The federal share of 
premiums for most active federal employees is paid out of 
agencies' discretionary appropriations.) Using historical data 
from OPM, CBO estimates that over 90 percent of employees 
affected by H.R. 521 would continue to participate in the FEHB 
program upon retirement. CBO estimates that, on average, the 
annual federal share of FEHB premiums per recipient over the 
2022-2032 period will be about $14,000.
    Revenues: Under current law, federal employees covered by 
enhanced retirement must contribute 0.5 percent more of their 
salary than the rate paid by noncovered employees (between 0.8 
percent and 4.4 percent for participants in FERS, depending on 
when the employee began service). H.R. 521 would reclassify 
some positions as qualifying for enhanced retirement; as a 
result, CBO estimates that the additional employee 
contributions required by the bill would increase revenues over 
the 2022-2032 period by $1 million.
    Spending Subject to Appropriation: Federal agencies are 
required to contribute to the CSRDF up to an additional 19 
percent of salary for an employee covered by enhanced 
retirement. (The contribution rate for most employees not 
covered by enhanced retirement is about 17 to 18 percent of the 
worker's salary, depending on when they began service.) CBO 
estimates that the additional agency contributions required by 
H.R. 521 would increase spending subject to appropriation by $7 
million over the 2022-2027 period.
    Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays and revenues that are 
subject to those pay-as-you-go procedures are shown in Table 2.

   Table 2.--CBO's ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 521, THE FIRST RESPONDER FAIR RETIRE ACT, AS ORDERED REPORTED BY THE SENATE
                                        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS ON AUGUST 3, 2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     By fiscal year, millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2022   2023   2024   2025   2026   2027   2028   2029   2030   2031   2032  2022-2027  2022-2032
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Net Increase in the Deficit
 
Pay-As-You-Go Effect.................................      0      0      0      0      0      0      0      0      0      1      2         0          3
Memorandum:
    Changes in Outlays...............................      0      0      0      0      0      0      0      0      1      1      2         0          4
    Changes in Revenues..............................      0      0      0      0      0      0      0      0      0      0      0         0          1
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term deficits: CBO estimates that enacting 
H.R. 521 would not increase on-budget deficits by more than $5 
billion in any of the four consecutive 10-year periods 
beginning in 2033.
    Mandates: None.
    Previous CBO estimate: On July 12, 2022, CBO transmitted a 
cost estimate for H.R. 521, the First Responder Fair RETIRE 
Act, as ordered reported by the House Committee on Oversight 
and Reform on May 11, 2022. CBO's estimated costs are the same 
for both the Senate and House versions of the legislation.
    Estimate prepared by: Federal Costs: Amber Marcellino.
    Mandates: Andrew Laughlin.
    Estimate reviewed by: Christina Hawley Anthony, Chief, 
Projections Unit; H. Samuel Papenfuss, Deputy Director of 
Budget Analysis.

       VII. Changes in Existing Law Made by the Bill, As Reported


UNITED STATES CODE

           *       *       *       *       *       *       *


TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES

           *       *       *       *       *       *       *


PART III--EMPLOYEES

           *       *       *       *       *       *       *


Subpart G--Insurance and Annuities

           *       *       *       *       *       *       *


CHAPTER 83--RETIREMENT

           *       *       *       *       *       *       *



Subchapter III--Civil Service Retirement

           *       *       *       *       *       *       *



SEC. 8336. IMMEDIATE RETIREMENT.

    (a) * * *
    (b) * * *
    (c)(1) An employee who is separated from the service after 
becoming 50 years of age and completing 20 years of service as 
a law enforcement officer, firefighter, nuclear materials 
courier, or customs and border protection officer, or any 
combination of such service totaling at least 20 years, is 
entitled to an annuity.
    (2) * * *
    (3)(A) In this paragraph--
          (i) the term ``affected individual'' means an 
        individual covered under this subchapter who--
                  (I) is performing service in a covered 
                position;
                  (II) while on duty, becomes ill or is injured 
                as a direct result of the performance of such 
                duties before the date on which the individual 
                becomes entitled to an annuity under paragraph 
                (1) of this subsection or subsection (e), (m), 
                or (n), as applicable;
                  (III) because of the illness or injury 
                described in subclause (II), is permanently 
                unable to render useful and efficient service 
                in the employee's covered position, as 
                determined by the agency in which the 
                individual was serving when such individual 
                incurred the illness or injury; and
                  (IV) is appointed to a position in the civil 
                service that--
                          (aa) is not a covered position; and
                          (bb) is within an agency that 
                        regularly appoints individuals to 
                        supervisory or administrative positions 
                        related to the activities of the former 
                        covered position of the individual;
          (ii) the term ``covered position'' means a position 
        as a law enforcement officer, customs and border 
        protection officer, firefighter, air traffic 
        controller, nuclear materials courier, member of the 
        Capitol Police, or member of the Supreme Court Police.
    (B) Unless an affected individual files an election 
described in subparagraph (E), creditable service by the 
affected individual in a position described in subparagraph 
(A)(i)(IV) shall be treated as creditable service in a covered 
position for purposes of this chapter and determining the 
amount to be deducted and withheld from the pay of the affected 
individual under section 8334.
    (C) Subparagraph (B) shall only apply if the affected 
employee transitions to a position described in subparagraph 
(A)(i)(IV) without a break in service exceeding 3 days.
    (D) The service of an affected individual shall no longer 
be eligible for treatment under subparagraph (B) if such 
service occurs after the individual--
          (i) is transferred to a supervisory or administrative 
        position related to the activities of the former 
        covered position of the individual; or
          (ii) meets the age and service requirements that 
        would subject the individual to mandatory separation 
        under section 8335 if such individual had remained in 
        the former covered position.
    (E) In accordance with procedures established by the 
Director of the Office of Personnel Management, an affected 
individual may file an election to have any creditable service 
performed by the affected individual treated in accordance with 
this chapter without regard to subparagraph (B).
    (F) Nothing in this paragraph shall be construed to apply 
to such affected individual any other pay-related laws or 
regulations applicable to a covered position.

           *       *       *       *       *       *       *


CHAPTER 84--FEDERAL EMPLOYEES' RETIREMENT SYSTEM

           *       *       *       *       *       *       *



Subchapter II--Basic Annuity

           *       *       *       *       *       *       *



SEC. 8412. IMMEDIATE RETIREMENT.

    (a) * * *
    (b) * * *
    (c) * * *
    (d)(1) An employee who is separated from the service, 
except by removal for cause on charges of misconduct or 
delinquency--
          [(1)](A) after completing 25 years of service as a 
        law enforcement officer, member of the Capitol Police 
        or Supreme Court Police, firefighter, nuclear materials 
        courier, or customs and border protection officer, or 
        any combination of such service totaling at least 25 
        years, or
          [(2)](B) after becoming 50 years of age and 
        completing 20 years of service as a law enforcement 
        officer, member of the Capitol Police or Supreme Court 
        Police, firefighter, nuclear materials courier, or 
        customs and border protection officer, or any 
        combination of such service totaling at least 20 years,
is entitled to an annuity.
    (2)(A) In this paragraph--
          (i) the term ``affected individual'' means an 
        individual covered under this chapter who--
                  (I) is performing service in a covered 
                position;
                  (II) while on duty, becomes ill or is injured 
                as a direct result of the performance of such 
                duties before the date on which the individual 
                becomes entitled to an annuity under paragraph 
                (1) of this subsection or subsection (e), as 
                applicable;
                  (III) because of the illness or injury 
                described in subclause (II), is permanently 
                unable to render useful and efficient service 
                in the employee's covered position, as 
                determined by the agency in which the 
                individual was serving when such individual 
                incurred the illness or injury; and
                  (IV) is appointed to a position in the civil 
                service that--
                          (aa) is not a covered position; and
                          (bb) is within an agency that 
                        regularly appoints individuals to 
                        supervisory or administrative positions 
                        related to the activities of the former 
                        covered position of the individual;
          (ii) the term ``covered position'' means a position 
        as a law enforcement officer, customs and border 
        protection officer, firefighter, air traffic 
        controller, nuclear materials courier, member of the 
        Capitol Police, or member of the Supreme Court Police.
    (B) Unless an affected individual files an election 
described in subparagraph (E), creditable service by the 
affected individual in a position described in subparagraph 
(A)(i)(IV) shall be treated as creditable service in a covered 
position for purposes of this chapter and determining the 
amount to be deducted and withheld from the pay of the affected 
individual under section 8422.
    (C) Subparagraph (B) shall only apply if the affected 
employee transitions to a position described in subparagraph 
(A)(i)(IV) without a break in service exceeding 3 days.
    (D) The service of an affected individual shall no longer 
be eligible for treatment under subparagraph (B) if such 
service occurs after the individual--
          (i) is transferred to a supervisory or administrative 
        position related to the activities of the former 
        covered position of the individual; or
          (ii) meets the age and service requirements that 
        would subject the individual to mandatory separation 
        under section 8425 if such individual had remained in 
        the former covered position.
    (E) In accordance with procedures established by the 
Director of the Office of Personnel Management, an affected 
individual may file an election to have any creditable service 
performed by the affected individual treated in accordance with 
this chapter without regard to subparagraph (B).

           *       *       *       *       *       *       *


SEC. 8414. EARLY RETIREMENT.

    (a) * * *
    (b)(1) * * *
    (2) * * *
    (3) Paragraph (1) shall not apply to an employee entitled 
to an annuity under subsection (d)(1) or (e) of section 8412.

           *       *       *       *       *       *       *


SEC. 8415. COMPUTATION OF BASIC ANNUITY.

           *       *       *       *       *       *       *


    (e) The annuity of an employee retiring under subsection 
(d)(1) or (e) of section 8412 or under subsection (a), (b), or 
(c) of section 8425 is--
          (1) 17/10 percent of that individual's average pay 
        multiplied by so much of such individual's total 
        service as does not exceed 20 years; plus
          (2) 1 percent of that individual's average pay 
        multiplied by so much of such individual's total 
        service as exceeds 20 years.

           *       *       *       *       *       *       *

    (h)(1) * * *
    (2)(A) Paragraph (1) does not apply in the case of an 
employee or Member retiring under section 8412(g) or 8413(b) if 
the employee or Member would satisfy the age and service 
requirements for title to an annuity under section 8412(a), 
(b), [(d)(2)](d)(1)(B), (e)(2), or (f)(2), determined as if the 
employee or Member had, as of the date of separation, attained 
the age specified in subparagraph (B).
    (B) A determination under subparagraph (A) shall be based 
on how old the employee or Member will be as of the date on 
which the annuity under section 8412(g) or 8413(b) is to 
commence.

           *       *       *       *       *       *       *


SEC. 8421. ANNUITY SUPPLEMENT

    (a)(1) Subject to paragraph (3), an individual shall, if 
and while entitled to an annuity under subsection (a), (b), 
(d)(1), or (e) of section 8412, or under section 8414(c), also 
be entitled to an annuity supplement under this section.

           *       *       *       *       *       *       *


SEC. 8421A. REDUCTIONS ON ACCOUNT OF EARNINGS FROM WORK PERFORMED WHILE 
                    ENTITLED TO AN ANNUITY SUPPLEMENT.

    (a) * * *
    (b) The amount of an individual's excess earnings shall be 
charged to months as follows:
          (1) * * *
          (2) * * *
          (3) * * *
          (4)(A) * * *
          (B) For purposes of this section--
                  (i) * * *
                  (ii) any earnings attributable to a period 
                before attaining the applicable retirement age 
                under section 8412(h) shall not be considered 
                in determining the excess earnings of an 
                individual who retires under section 8412(d)(1) 
                or (e), or section 8414(c).

           *       *       *       *       *       *       *


SEC. 8425. MANDATORY SEPARATION.

    (a) * * *
    (b)(1) A law enforcement officer, firefighter, nuclear 
materials courier, or customs and border protection officer who 
is otherwise eligible for immediate retirement under section 
8412(d)(1) shall be separated from the service on the last day 
of the month in which that law enforcement officer, 
firefighter, nuclear materials courier, or customs and border 
protection officer 1 as the case may be, becomes 57 years of 
age or completes 20 years of service if then over that age. If 
the head of the agency judges that the public interest so 
requires, that agency head may exempt such an employee from 
automatic separation under this subsection until that employee 
becomes 60 years of age. The employing office shall notify the 
employee in writing of the date of separation at least 60 days 
before that date. Action to separate the employee is not 
effective, without the consent of the employee, until the last 
day of the month in which the 60-day notice expires.
    (2) * * *
    (c) A member of the Capitol Police who is otherwise 
eligible for immediate retirement under section 8412(d)(1) 
shall be separated from the service on the last day of the 
month in which such member becomes 57 years of age or completes 
20 years of service if then over that age. The Capitol Police 
Board, when in its judgment the public interest so requires, 
may exempt such a member from automatic separation under this 
subsection until that member becomes 60 years of age. The Board 
shall notify the member in writing of the date of separation at 
least 60 days before that date. Action to separate the member 
is not effective, without the consent of the member, until the 
last day of the month in which the 60-day notice expires.
    (d) A member of the Supreme Court Police who is otherwise 
eligible for immediate retirement under section 8412(d)(1) 
shall be separated from the service on the last day of the 
month in which such member becomes 57 years of age or completes 
20 years of service if then over that age. The Marshal of the 
Supreme Court of the United States, when in his judgment the 
public interest so requires, may exempt such a member from 
automatic separation under this subsection until that member 
becomes 60 years of age. The Marshal shall notify the member in 
writing of the date of separation at least 60 days before the 
date. Action to separate the member is not effective, without 
the consent of the member, until the last day of the month in 
which the 60-day notice expires.

           *       *       *       *       *       *       *


SEC. 8462. COST OF LIVING ADJUSTMENTS.

    (a) * * *
    (b) * * *
    (c) Eligibility for an annuity increase under this section 
is governed by the commencing date of each annuity payable from 
the Fund as of the effective date of an increase, except as 
follows:
          (1) * * *
          (2) * * *
          (3)(A) * * *
          (B)(i) * * *
          (ii) This paragraph does not apply with respect to an 
        annuitant under subsection (d)(1) or (e) of section 
        8412 or (in the case of an annuitant separated from 
        service as a military reserve technician as a result of 
        disability) under section 8414(c).
          (4) * * *

              TITLE 22--FOREIGN RELATIONS AND INTERCOURSE

                      CHAPTER 52--FOREIGN SERVICE


       Subchapter VIII--Foreign Service Retirement and Disability


        PART I--FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM


SEC. 4045. CONTRIBUTIONS TO FUND.

    (a) * * *
    (b) * * *
    (c) * * *
    (d) Contribution for civilian service; creditability of 
interim service
          (1) * * *
          (2) * * *
          (3) * * *
          (4) * * *
          (5) Notwithstanding paragraph (1), a special 
        contribution for past service as a Foreign Service 
        criminal investigator/inspector of the Office of the 
        Inspector General, Agency for International Development 
        which would have been creditable toward retirement 
        under either section 8336(c) or 8412(d)(1) of title 5, 
        and for which a special contribution has not been made 
        shall be equal to the difference between the amount 
        actually contributed pursuant to either this section or 
        section 4071e of this title and the amount that should 
        have been contributed pursuant to either section 8334 
        or 8422 of title 5.
          (6) * * *

           *       *       *       *       *       *       *


SEC. 4046. COMPUTATION OF ANNUITIES.

    (a) Measurements; reduction for special contributions; 
Foreign Service investigator/inspectors
          (1) * * *

           *       *       *       *       *       *       *

          (6)(A) * * *
          (B) * * *
          (C) * * *
          (D)(i) In this subparagraph--
                  (I) the term ``affected special agent'' means 
                an individual covered under this subchapter 
                who--
                          (aa) is performing service as a 
                        special agent;
                          (bb) while on duty as a special 
                        agent, becomes ill or is injured as a 
                        direct result of the performance of 
                        such duties before the date on which 
                        the individual becomes entitled to an 
                        annuity under section 811;
                          (cc) because of the illness or injury 
                        described in item (bb), is permanently 
                        unable to render useful and efficient 
                        service in the employee's covered 
                        position, as determined by the 
                        Secretary; and
                          (dd) is appointed to a position in 
                        the Foreign Service that is not a 
                        covered position; and
          (II) the term ``covered position'' means a position 
        as--
                          (aa) a law enforcement officer 
                        described in section 8331(20) or 
                        8401(17) of title 5, United States 
                        Code;
                          (bb) a customs and border protection 
                        officer described in section 8331(31) 
                        or 8401(36) of title 5, United States 
                        Code;
                          (cc) a firefighter described in 
                        section 8331(21) or 8401(14) of title 
                        5, United States Code;
                          (dd) an air traffic controller 
                        described in section 8331(30) or 
                        8401(35) of title 5, United States 
                        Code;
                          (ee) a nuclear materials courier 
                        described in section 8331(27) or 
                        8401(33) of title 5, United States 
                        Code;
                          (ff) a member of the United States 
                        Capitol Police;
                          (gg) a member of the Supreme Court 
                        Police;
                          (hh) an employee of the Agency 
                        designated under section 302(a) of the 
                        Central Intelligence Agency Retirement 
                        Act (50 U.S.C. 2152(a)); or
                          (ii) a special agent.
          (ii) Unless an affected special agent files an 
        election described in clause (iv), creditable service 
        by the affected special agent in a position described 
        in clause (i)(I)(dd) shall be treated as creditable 
        service as a special agent for purposes of this 
        subchapter, including determining the amount to be 
        deducted and withheld from the pay of the individual 
        under section 805.
          (iii) Clause (ii) shall only apply if the special 
        agent transitions to a position described in clause 
        (i)(I)(dd) without a break in service exceeding 3 days.
          (iv) The service of an affected employee shall no 
        longer be eligible for treatment under clause (ii) if 
        such service occurs after the employee is transferred 
        to a supervisory or administrative position related to 
        the activities of the former covered position of the 
        employee.
          (v) In accordance with procedures established by the 
        Secretary, an affected special agent may file an 
        election to have any creditable service performed by 
        the affected special agent treated in accordance with 
        this subchapter, without regard to clause (ii).

           *       *       *       *       *       *       *


SEC. 4052. MANDATORY RETIREMENT.

    (a)(1) * * *
    (2) Notwithstanding paragraph (1)--
          (A) an individual described in section 4(a)(2) of the 
        Department of State Special Agents Retirement Act of 
        1998 who is otherwise eligible for immediate retirement 
        under this subchapter; or
          (B) a Foreign Service criminal investigator/inspector 
        of the Office of Inspector General of the Agency for 
        International Development who would have been eligible 
        for retirement pursuant to either section 8336(c) or 
        8412(d)(1) of title 5, as applicable, had the employee 
        remained in civil service,
shall be separated from the Service on the last day of the 
month in which such individual under subparagraph (A) or such 
Foreign Service criminal investigator/inspector under 
subparagraph (B) attains 57 years of age or completes 20 years 
of service if then over that age. If the head of the agency 
judges that the public interest so requires, that agency head 
may exempt such an employee from automatic separation under 
this subsection until that employee attains 60 years of age. 
The employing office shall notify the employee in writing of 
the date of separation at least 60 days before that date. 
Action to separate the employee is not effective without the 
consent of the employee, until the last day of the month in 
which the 60-day notice expires.

           *       *       *       *       *       *       *


TITLE 50--WAR AND NATIONAL DEFENSE

           *       *       *       *       *       *       *


CHAPTER 38--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY

           *       *       *       *       *       *       *



Subchapter III--Participation in Federal Employees' Retirement System

           *       *       *       *       *       *       *



SEC. 2152. SPECIAL RULES RELATING TO SECTION 2013 CRITERIA EMPLOYEES.

    (a) * * *
    (b) * * *
    (c) * * *
    (d) Employees Disabled on Duty.--
          (1) Definitions.--In this subsection--
                  (A) the term ``affected employee'' means an 
                employee of the Agency covered under subchapter 
                II of chapter 84 of title 5, United States 
                Code, who--
                          (i) is performing service in a 
                        position designated under subsection 
                        (a);
                          (ii) while on duty in the position 
                        designated under subsection (a), 
                        becomes ill or is injured as a direct 
                        result of the performance of such 
                        duties before the date on which the 
                        employee becomes entitled to an annuity 
                        under section 233 of this Act or 
                        section 8412(d)(1) of title 5, United 
                        States Code;
                          (iii) because of the illness or 
                        injury described in clause (ii), is 
                        permanently unable to render useful and 
                        efficient service in the employee's 
                        covered position, as determined by the 
                        Director; and
                          (iv) is appointed to a position in 
                        the civil service that is not a covered 
                        position but is within the Agency; and
                  (B) the term ``covered position'' means a 
                position as--
                          (i) a law enforcement officer 
                        described in section 8331(20) or 
                        8401(17) of title 5, United States 
                        Code;
                          (ii) a customs and border protection 
                        officer described in section 8331(31) 
                        or 8401(36) of title 5, United States 
                        Code;
                          (iii) a firefighter described in 
                        section 8331(21) or 8401(14) of title 
                        5, United States Code;
                          (iv) an air traffic controller 
                        described in section 8331(30) or 
                        8401(35) of title 5, United States 
                        Code;
                          (v) a nuclear materials courier 
                        described in section 8331(27) or 
                        8401(33) of title 5, United States 
                        Code;
                          (vi) a member of the United States 
                        Capitol Police;
                          (vii) a member of the Supreme Court 
                        Police;
                          (viii) an affected employee; or
                          (ix) a special agent described in 
                        section 804(15) of the Foreign Service 
                        Act of 1980 (22 U.S.C. 4044(15)).
          (2) Treatment of service after disability.--Unless an 
        affected employee files an election described in 
        paragraph (3), creditable service by the affected 
        employee in a position described in paragraph 
        (1)(A)(iv) shall be treated as creditable service in a 
        covered position for purposes of this Act and chapter 
        84 of title 5, United States Code, including 
        eligibility for an annuity under section 233 of this 
        Act or 8412(d)(1) of title 5, United States Code, and 
        determining the amount to be deducted and withheld from 
        the pay of the affected employee under section 8422 of 
        title 5, United States Code.
          (3) Break in service.--Paragraph (2) shall only apply 
        if the affected employee transitions to a position 
        described in paragraph (1)(A)(iv) without a break a 
        service exceeding 3 days.
          (4) Limitation on treatment of service.--The service 
        of an affected employee shall no longer be eligible for 
        treatment under paragraph (2) if such service occurs 
        after the employee is transferred to a supervisory or 
        administrative position related to the activities of 
        the former covered position of the employee.
          (5) Opt out.--An affected employee may file an 
        election to have any creditable service performed by 
        the affected employee treated in accordance with 
        chapter 84 of title 5, United States Code, without 
        regard to paragraph (2).

                                  [all]