Bill summaries are authored by CRS.

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Passed Senate amended (11/03/1999)

Federal Erroneous Retirement Coverage Corrections Act - Applies this Act to retirement coverage errors that occur before, on, or after the date of enactment of this Act. Makes this Act inapplicable to erroneous retirement coverage determinations that were in effect for less than three years of service after December 31, 1986.

Title I: Description of Retirement Coverage Errors to Which This Act Applies and Measures for Their Rectification - Subtitle A: 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 - Permits any Federal employee or former employee, who should be (or should have been) Federal Employees' Retirement System (FERS) covered, but who is erroneously CSRS (Civil Service Retirement System) covered or CSRS-Offset covered instead, to elect to: (1) be FERS covered instead; or (2) remain or instead become CSRS-Offset covered. Permits an employee affected by such an error that has been corrected to elect to be CSRS-Offset covered instead.

Authorizes, if an individual elects to be CSRS-Offset covered, all employee contributions to the Thrift Savings Fund (TSF) made during the period of FERS coverage, and any earnings, to remain in the TSF. Makes ineligible for elections under this paragraph individuals who: (1) received a payment ordered by a court or provided as a settlement of claim for losses resulting from a retirement coverage error unless such payment is waived or repaid; or (2) received a refund of retirement deductions or distribution under specified Federal civil service provisions.

(Sec. 102) Permits annuitants (and survivors of employees) who should have been FERS covered but were erroneously CSRS covered or CSRS-Offset covered to elect CSRS-Offset or FERS coverage. Provides for a reduced annuity for annuitants or survivors who elect CSRS- Offset coverage. Sets forth requirements parallel to those for employees with respect to previously-received settlement payments. Provides for CSRS-Offset coverage for annuitants or survivors who do not make elections and for whom corrective action was not taken before any time limitation prescribed by this Act.

Subtitle B: Employee Who Should Have Been FERS Covered, CSRS-Offset Covered, or CSRS Covered, but Who Was Erroneously Social Security-Only Covered Instead - Requires employees who should be (or should have been) FERS, CSRS-Offset, or CSRS covered but are (or were) erroneously Social Security-Only covered to be covered under the correct retirement coverage effective as of the date of the coverage error. Provides that if the error has been corrected, the previous corrective action shall remain in effect.

Subtitle C: Employee Who Should or Could Have Been Social Security-Only Covered but Who Was Erroneously CSRS-Offset Covered or CSRS Covered Instead - Requires employees who should have been Social Security-Only covered but were erroneously CSRS covered to be CSRS- Offset covered, subject to a right of election. Permits such individuals to elect CSRS-Offset or Social-Security-Only coverage. Requires individuals who do not make an election to remain CSRS-Offset covered. Directs the Office of Personnel Management (OPM) to promulgate regulations authorizing individuals to elect CSRS-Offset or Social Security-Only coverage if an error was previously corrected.

Subtitle D: Employee Who Was Erroneously FERS Covered - Authorizes FERS-ineligible employees who should have been Social Security-Only, CSRS, or CSRS-Offset covered and were erroneously FERS covered to elect to remain FERS covered or be covered under the coverage that would have applied in the absence of the error. Requires individuals who do not make an election to remain FERS covered.

Permits contributions to the TSF made during the period of erroneous FERS coverage and all earnings to remain in the TSF in the case of employees who elect coverage other than FERS.

Requires OPM to promulgate regulations authorizing individuals covered by this subtitle to make elections if an error was previously corrected.

(Sec. 132) Sets forth provisions regarding individuals who were prevented from electing FERS coverage as a result of being erroneously FERS covered.

(Sec. 133) Makes this subtitle effective as of January 1, 1987.

Subtitle E: Employee Who Should Have Been CSRS-Offset Covered, but Who Was Erroneously CSRS Covered Instead - Requires employees who should be (or should have been) CSRS-Offset covered but are (or were) erroneously CSRS covered to be covered under the correct coverage effective as of the date of the error.

Subtitle F: Employee Who Should Have Been CSRS Covered, but Who Was Erroneously CSRS-Offset Covered Instead - Requires employees who should be (or should have been) CSRS covered but are (or were) erroneously CSRS-Offset covered to be covered under the correct coverage effective as of the date of the error.

Title II: General Provisions - Directs Government agencies to take appropriate measures to promptly identify and notify individuals affected by a retirement coverage error of their rights under this Act.

(Sec. 203) Sets forth requirements with respect to service credit deposits in cases where: (1) a FERS covered employee was erroneously CSRS or CSRS-Offset covered and made a service credit deposit under CSRS and there was a subsequent retroactive change to FERS coverage; or (2) an employee owed a service credit deposit, there is a subsequent retroactive change to CSRS or CSRS-Offset coverage, or the service becomes creditable.

(Sec. 205) Sets forth provisions regarding TSF treatment for individuals erroneously not covered as a FERS employee who make or have made retroactive employee contributions to the TSF. Provides for an alternative calculation of lost earnings due to erroneous coverage.

(Sec. 207) Bars an agency from placing an individual under CSRS coverage unless: (1) the individual has been employed with such coverage within the preceding 365 days; or (2) OPM has agreed that the agency's coverage determination is correct.

(Sec. 208) Authorizes the OPM Director to: (1) extend deadlines for making elections under certain circumstances; (2) reimburse expenses incurred by an individual with respect to settlement of a claim for losses resulting from a coverage error; (3) compensate an individual for monetary losses that are a direct and proximate result of such an error, excluding claimed losses relating to foregone contributions and earnings under the Thrift Savings Plan (TSP) and other investment opportunities; and (4) waive payments otherwise required by this Act.

Title III: General Provisions - Provides for conformity with this Act of the Foreign Service and Central Intelligence Agency retirement systems.

Title IV: Tax Provisions - Provides that no Federal retirement plan shall fail to be treated as a qualified plan under the Internal Revenue Code by reason of: (1) any failure to follow plan terms as addressed by this Act; or (2) any action taken under this Act.

Excludes from individual gross income any amount attributable to a direct transfer under this Act between funds or any Government contribution to any fund or account.

Title V: Miscellaneous Retirement Provisions - Includes as creditable service of a Federal employee or Member of Congress for purposes of FERS provisions a period of service (other than any service already creditable under FERS, any military service, and any service performed in the employ of a Federal Reserve Bank) that was creditable under the Bank Plan (the benefit structure in which employees of the Board of Governors of the Federal Reserve System appointed on or after January 1, 1984, participate), if the employee waives credit for such service under the Bank Plan and makes a payment to the TSF equal to the amount that would have been deducted from pay had the employee been subject to FERS during such period of service (together with interest on such amount computed).

Excludes from participation in FERS any employee or Member who has separated from civilian service after having been subject to the benefit structure for employees of the Board appointed before January 1, 1984, and having at least five years of civilian service (other than any service performed in the employ of a Federal Reserve Bank) creditable under such benefit structure, except for such persons who subsequently enter a position subject to FERS provisions.

Makes provisions regarding creditability and certain former Board employees applicable only to individuals who separate from service subject to FERS on or after the date of enactment of this Act.

(Sec. 502) Treats as a separation from Government employment, for purposes of the TSP, any transfer from a position that is subject to FERS, CSRS, or any other retirement system under which individuals may contribute to the TSF through withholdings from pay, to a position that is not subject to any of them.

Applies the amendments made by this section to transfers occurring before, on, or after this Act's enactment date. Considers, for transfers occurring before this Act's enactment, the date of transfer to be this Act's enactment date.

Title VI: Effective Date - Sets forth the effective date of this Act.