Congressional Record: Proceedings and Debates of the 106th Congress, Second Session, Volume 146, Part 12 Page: 16,617
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July 27, 2000
CONGRESSIONAL RECORD-HOUSE
believes necessary to enable the department or
agency to carry out its responsibilities under
this title.
(d) LIMITATION; SAFEGUARDS.-Each of the re-
spective authorities under subsection (a) shall
(1) request or provide only such information
as that authority considers necessary; and
(2) establish, by regulation or otherwise, ap-
propriate safeguards to ensure that any infor-
mation obtained under this section shall be used
only for the purpose authorized.
SEC. 2203. SERVICE CREDIT DEPOSITS.
(a) CSRS DEPOSIT.-In the case of a retire-
ment 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 ci-
vilian 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 pre-
scribed by the Office, shall be paid to the em-
ployee, the annuitant or, in the case of a de-
ceased 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 de-
termination 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 chap-
ter 83 of title 5, United States Code.
(2) REDUCED ANNUITY.
(A) IN GENERAL.-If at the time of commence-
ment 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 pre-
scribed 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 commence-
ment of a survivor annuity, there is remaining
unpaid any CSRS service credit deposit de-
scribed under paragraph (1), and there has been
no actuarial reduction in an annuity under
paragraph (2), the survivor annuity shall be re-
duced based upon the amount unpaid together
with interest computed in accordance with sec-
tion 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.
SEC. 2204. PROVISIONS RELATED TO SOCIAL SE-
CURITY COVERAGE OF
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 cov-
erage error; and
(B) is or was retroactively converted to CSRS-
offset coverage, FERS coverage, or Social Secu-
rity-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 SE-
CURITY.-
(1) IN GENERAL.-In order to carry out the
Commissioner of Social Security's responsibil-
ities under title II of the Social Security Act, the
Commissioner may request the head of each
agency that employs or employed a covered indi-
vidual 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 Com-
missioner may require for the purpose of car-
rying 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 re-
ported under this subsection shall be deemed to
be wages reported to the Secretary of the Treas-
ury or the Secretary's delegates pursuant to
subtitle F of the Internal Revenue Code of 1986.
(c) PAYMENT RELATING TO OASDI EMPLOYEE
TAXES.
(1) IN GENERAL.-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 em-
ployee taxes as a result of corrections made, in-
cluding corrections made before the date of en-
actment of this Act). If the excess CSRS deduc-
tions exceed the OASDI taxes, any difference
shall be paid to the covered individual or sur-
vivors, as appropriate.
(2) TRANSFER.-Amounts transferred under
this subsection shall be determined notwith-
standing any limitation under section 6501 of
the Internal Revenue Code of 1986.
(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 cov-
erage (as adjusted by amounts transferred for
the payment of such taxes as a result of correc-
tions made, including corrections made before
the date of enactment of this Act).
(2) PAYMENT.-Amounts paid under this sub-
section shall be determined subject to any limi-
tation under section 6501 of the Internal Rev-
enue Code of 1986.
(e) APPLICATION OF OASDI TAX PROVISIONS
OF THE INTERNAL REVENUE CODE OF 1986 TO AF-
FECTED INDIVIDUALS AND EMPLOYING AGEN-
CIES.-A covered individual and the individual's
employing agency shall be deemed to have fully
satisfied in a timely manner their responsibil-
ities with respect to the taxes imposed by sec-
tions 3101(a), 3102(a), and 3111(a) of the Inter-nal Revenue Code of 1986 on the wages paid by
the employing agency to such individual during
the entire period such individual was erro-
neously subject to CSRS coverage as a result of
a retirement coverage error based on the pay-
ments and transfers made under subsections (c)
and (d). No credit or refund of taxes on such
wages shall be allowed as a result of this sub-
section.
SEC. 2205. THRIFT SAVINGS PLAN TREATMENT
FOR CERTAIN INDIVIDUALS.
(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 pre-
scribed 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 retro-
active 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 employ-
ee's contributions.
(C) EXCEPTIONS.-If an individual made retro-
active contributions before the effective date of
the regulations under section 2101(c), the Direc-
tor 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), tak-
ing 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 regula-
tions under section 2101(c), the employee in-
volved shall have an additional opportunity to
make retroactive contributions for the period of
the retirement coverage error (subject to applica-
ble 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 Di-
rector shall prescribe regulations appropriate to
carry out this section relating to retroactive em-
ployee 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 con-
tributions made before the effective date of the
regulations under section 2101(c).
SEC. 2206. CERTAIN AGENCY AMOUNTS TO BE
PAID INTO OR REMAIN IN THE
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.16617
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United States. Congress. Congressional Record: Proceedings and Debates of the 106th Congress, Second Session, Volume 146, Part 12, book, 2000; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc31030/m1/58/: accessed March 28, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.