DEPOSITS AND REFUNDS RELATING TO CERTAIN SERVICE UNDER THE CIVIL SERVICE RETIREMENT SYSTEM.

SEC. 105. DEPOSITS AND REFUNDS RELATING TO CERTAIN SERVICE UNDER THE CIVIL SERVICE RETIREMENT SYSTEM. (a) Deposit for Service Covered by Refund Permitted Only If Refund Was Pursuant to Application Filed Before Becoming Subject to FERS.— Section 8411(f)(1) is amended by adding at the end the following: “A deposit under this paragraph may be made only with respect to a refund received pursuant to an application filed with the Office before the date on which the employee or Member first becomes subject to this chapter.”. (b) Lump-Sum Credit for Certain CSRS Service Sought After Becoming Subject to FERS Is Payable to the Extent That It Exceeds 1.3 Percent of Basic Pay.— The last sentence of section 8342(a), as added by section 207(h) of the Federal Employees’ Retirement System Act of 1986 (Public Law 99–335; 100 Stat. 596) is amended to read as follows: “In applying this subsection to an employee or Member who becomes subject to chapter 84 (other than by an election under title III of the Federal Employees’ Retirement System Act of 1986) and who, while subject to such chapter, files an application with the Office for a payment under this subsection— “(i) entitlement to payment of the lump-sum credit shall be determined without regard to paragraph (1) or (3) if, or to the extent that, such lump-sum credit relates to service of a type described in clauses (i) through (iii) of section 302(a)(1)(C) of the Federal Employees’ Retirement System Act of 1986; and “(ii) if, or to the extent that, the lump-sum credit so relates to service of a type referred to in clause (i), it shall (notwithstanding section 8331(8)) consist of— “(I) the amount by which any unrefunded amount described in section 8331(8) (A) or (B) relating to such service, exceeds 1.3 percent of basic pay for such service; and “(II) interest on the amount payable under subclause (I), computed in a manner consistent with applicable provisions of section 8331(8).”.