INCREASED CONTRIBUTIONS TO FEDERAL CIVILIAN RETIREMENT SYSTEMS.

SEC. 7001. INCREASED CONTRIBUTIONS TO FEDERAL CIVILIAN RETIREMENT SYSTEMS. (a) Civil Service Retirement System.— (1) Agency contributions.— (A) In general.—Notwithstanding section 8334 (a)(1) or (k)(1) of title 5, United States Code, during the period beginning on October 1, 1997, through September 30, 2002, each employing agency (other than the United States Postal Service or the Metropolitan Washington Airports Authority) shall contribute— (i) 8.51 percent of the basic pay of an employee; (ii) 9.01 percent of the basic pay of a congressional employee, a law enforcement officer, a member of the Capitol police, or a firefighter; and (iii) 9.51 percent of the basic pay of a Member of Congress, a Court of Federal Claims judge, a United States magistrate, a judge of the United States Court of Appeals for the Armed Forces, or a bankruptcy judge; in lieu of the agency contributions otherwise required under section 8334(a)(1) of title 5, United States Code. (B) Application.—For purposes of subparagraph (A) and notwithstanding the amendments made by paragraph (3), during the period beginning on January 1, 1999 through December 31, 2002, with respect to the United States Postal Service and the Metropolitan Washington Airports Authority, the agency contribution shall be determined as though those amendments had not been made. (2) No reduction in agency contributions by the postal service.—Contributions by the Treasury of the United States or the United States Postal Service under section 8348 (g), (h), or (m) of title 5, United States Code— (A) shall not be reduced as a result of the amendments made under paragraph (3) of this subsection; and (B) shall be computed as though such amendments had not been enacted. (3) Individual deductions, withholdings, and deposits.— (A) Deductions.—The first sentence of section 8334(a)(1) of title 5, United States Code, is amended to read as follows: “The employing agency shall deduct and withhold from the basic pay of an employee, Member, 111 STAT. 654Congressional employee, law enforcement officer, firefighter, bankruptcy judge, judge of the United States Court of Appeals for the Armed Forces, United States magistrate, Court of Federal Claims judge, or member of the Capitol Police, as the case may be, the percentage of basic pay applicable under subsection (c).”. (B) Deposits.—The table under section 8334(c) of title 5, United States Code, is amended— (i) in the matter relating to an employee by striking: “7 After December 31, 1969.”; and inserting the following: “7 January 1, 1970, to December 31, 1998. 7.25 January 1, 1999, to December 31, 1999. 7.4 January 1, 2000, to December 31, 2000. 7.5 January 1, 2001, to December 31, 2002. 7 After December 31, 2002.”; (ii) in the matter relating to a Member or employee for congressional employee service by striking: “7½ After December 31, 1969.”; and inserting the following: “7.5 January 1, 1970, to December 31, 1998. 7.75 January 1, 1999, to December 31, 1999. 7.9 January 1, 2000, to December 31, 2000. 8 January 1, 2001, to December 31, 2002. 7.5 After December 31, 2002.”; (iii) in the matter relating to a Member for Member service by striking: “8 After December 31, 1969.”; and inserting the following: “8 January 1, 1970, to December 31, 1998. 8.25 January 1, 1999, to December 31, 1999. 8.4 January 1, 2000, to December 31, 2000. 111 STAT. 655 8.5 January 1, 2001, to December 31, 2002. 8 After December 31, 2002.”; (iv) in the matter relating to a law enforcement officer for law enforcement service and firefighter for firefighter service by striking: “7½ After December 31, 1974.”; and inserting the following: “7.5 January 1, 1975, to December 31, 1998. 7.75 January 1, 1999, to December 31, 1999. 7.9 January 1, 2000, to December 31, 2000. 8 January 1, 2001, to December 31, 2002. 7.5 After December 31, 2002.”; (v) in the matter relating to a bankruptcy judge by striking: “8 After December 31, 1983.”; and inserting the following: “8 January 1, 1984, to December 31, 1998. 8.25 January 1, 1999, to December 31, 1999. 8.4 January 1, 2000, to December 31, 2000. 8.5 January 1, 2001, to December 31, 2002. 8 After December 31, 2002.”; (vi) in the matter relating to a judge of the United States Court of Appeals for the Armed Forces for service as a judge of that court by striking: “8 On and after the date of the enactment of the Department of Defense Authorization Act, 1984.”; and inserting t h e following: “8 The date of enactment of the Department of Defense Authorization Act, 1984, to December 31, 1998. 8.25 January 1, 1999, to December 31, 1999. 8.4 January 1, 2000, to December 31, 2000. 111 STAT. 656 8.5 January 1, 2001, to December 31, 2002. 8 After December 31, 2002.”; (vii) in the matter relating to a United States magistrate by striking: “8 After September 30, 1987.”; and inserting the following: “8 October 1, 1987, to December 31, 1998. 8.25 January 1, 1999, to December 31, 1999. 8.4 January 1, 2000, to December 31, 2000. 8.5 January 1, 2001, to December 31, 2002. 8 After December 31, 2002.”; (viii) in the matter relating to a Court of Federal Claims judge by striking: “8 After September 30, 1988.”; and inserting the following: “8 October 1, 1988, to December 31, 1998 8.25 January 1, 1999, to December 31, 1999. 8.4 January 1, 2000, to December 31, 2000. 8.5 January 1, 2001, to December 31, 2002. 8 After December 31, 2002.”; and (ix) by inserting after the matter relating to a Court of Federal Claims judge the following: “Member of the Capitol Police 2.5 August 1, 1920, to June 30, 1926. 3.6 July 1, 1926, to June 30, 1942. 5 July 1, 1942, to June 30, 1948. 6 July 1, 1948, to October 31, 1956. 6.5 November 1, 1956, to December 31, 1969. 7.5 January 1, 1970, to December 31, 1998. 7.75 January 1, 1999, to December 31, 1999. 7.9 January 1, 2000, to December 31, 2000. 8 January 1, 2001, to December 31, 2002. 111 STAT. 657 7.5 After December 31, 2002.”. (4) Other service.— (A) Military service.—Section 8334(j) of title 5, United States Code, is amended— (i) in paragraph (1)(A) by inserting “and subject to paragraph (5),” after “Except as provided in subparagraph (B),”, and (ii) by adding at the end the following new paragraph: “(5) Effective with respect to any period of military service after December 31, 1998, the percentage of basic pay under section 204 of title 37 payable under paragraph (1) shall be equal to the same percentage as would be applicable under subsection (c) of this section for that same period for service as an employee, subject to paragraph (1)(B).”. (B) Volunteer service.—Section 8334(1) of title 5, United States Code, is amended— (i) in paragraph (1) by adding at the end the following: “This paragraph shall be subject to paragraph (4).”; and (ii) by adding at the end the following new paragraph: “(4) Effective with respect to any period of service after December 31, 1998, the percentage of the readjustment allowance or stipend (as the case may be) payable under paragraph (1) shall be equal to the same percentage as would be applicable under subsection (c) of this section for the same period for service as an employee.”. (b) Federal Employees’ Retirement System.— (1) Individual deductions and withholdings.— (A) In general.—Section 8422(a) of title 5, United States Code, is amended by striking paragraph (2) and inserting the following: “(2) The percentage to be deducted and withheld from basic pay for any pay period shall be equal to— “(A) the applicable percentage under paragraph (3), minus “(B) the percentage then in effect under section 3101(a) of the Internal Revenue Code of 1986 (relating to rate of tax for old-age, survivors, and disability insurance). “(3) The applicable percentage under this paragraph for civilian service shall be as follows: “Employee 7 January 1, 1987, to December 31, 1998. 7.25 January 1, 1999, to December 31, 1999. 7.4 January 1, 2000, to December 31, 2000. 7.5 January 1, 2001, to December 31, 2002. 7 After December 31, 2002. Congressional employee 7.5 January 1, 1987, to December 31, 1998. 7.75 January 1, 1999, to December 31, 1999. 7.9 January 1, 2000, to December 31, 2000. 8 January 1, 2001, to December 31, 2002. 111 STAT. 658 7.5 After December 31, 2002. Member 7.5 January 1, 1987, to December 31, 1998. 7.75 January 1, 1999, to December 31, 1999. 7.9 January 1, 2000, to December 31, 2000. 8 January 1, 2001, to December 31, 2002. 7.5 After December 31, 2002. Law enforcement officer, firefighter, member of the Capitol Police, or air traffic controller. 7.5 January 1, 1987, to December 31, 1998. 7.75 January 1, 1999, to December 31, 1999. 7.9 January 1, 2000, to December 31, 2000. 8 January 1, 2001, to December 31, 2002. 7.5 After December 31, 2002.”. (B) Military service.—Section 8422(e) of title 5, United States Code, is amended— (i) in paragraph (1)(A) by inserting “and subject to paragraph (6),” after “Except as provided in subparagraph (B),”, and (ii) by adding at the end the following: “(6) The percentage of basic pay under section 204 of title 37 payable under paragraph (1), with respect to any period of military service performed during— “(A) January 1, 1999, through December 31, 1999, shall be 3.25 percent; “(B) January 1, 2000, through December 31, 2000, shall be 3.4 percent; and “(C) January 1, 2001, through December 31, 2002, shall be 3.5 percent.”. (C) Volunteer service.—Section 8422(f) of title 5, United States Code, is amended— (i) in paragraph (1) by adding at the end the following: “This paragraph shall be subject to paragraph (4).”; and (ii) by adding at the end the following: “(4) The percentage of the readjustment allowance or stipend (as the case may be) payable under paragraph (1), with respect to any period of volunteer service performed during— “(A) January 1, 1999, through December 31, 1999, shall be 3.25 percent; “(B) January 1, 2000, through December 31, 2000, shall be 3.4 percent; and “(C) January 1, 2001, through December 31, 2002, shall be 3.5 percent.”. (2) No reduction in agency contributions.—Contributions under section 8423 (a) and (b) of title 5, United States Code, shall not be reduced as a result of the amendments made under paragraph (1) of this subsection. (c) Central Intelligence Agency Retirement and Disability System.— (1) Agency contributions.—Notwithstanding section 211(a)(2) of the Central Intelligence Agency Retirement Act (50 U.S.C. 2021(a)(2)), during the period beginning on October 1, 1997, through September 30, 2002, the Central Intelligence Agency shall contribute 8.51 percent of the basic pay of an 111 STAT. 659employee participating in the Central Intelligence Agency Retirement and Disability System in lieu of the agency contribution otherwise required under section 211(a)(2) of such Act. (2) Individual deductions, withholdings, and deposits.—Notwithstanding section 211(a)(1) of the Central Intelligence Agency Retirement Act (50 U.S.C. 2021(a)(1)) beginning on January 1, 1999, through December 31, 2002, the percentage deducted and withheld from the basic pay of an employee participating in the Central Intelligence Agency Retirement and Disability System shall be as follows: 7.25 January 1, 1999, to December 31, 1999. 7.4 January 1, 2000, to December 31, 2000. 7.5 January 1, 2001, to December 31, 2002. (3) Military service.—Section 252(h)(1) of the Central Intelligence Agency Retirement Act (50 U.S.C. 2082(h)(1)), is amended to read as follows: “(h)(1)(A) Each participant who has performed military service before the date of separation on which entitlement to an annuity under this title is based may pay to the Agency an amount equal to 7 percent of the amount of basic pay paid under section 204 of title 37, United States Code, to the participant for each period of military service after December 1956; except, the amount to be paid for military service performed beginning on January 1, 1999, through December 31, 2002, shall be as follows: “7.25 percent of basic pay. January 1, 1999, to December 31, 1999. 7.4 percent of basic pay. January 1, 2000, to December 31, 2000. 7.5 percent of basic pay. January 1, 2001, to December 31, 2002. “(B) The amount of such payments shall be based on such evidence of basic pay for military service as the participant may provide or, if the Director determines sufficient evidence has not been provided to adequately determine basic pay for military service, such payment shall be based upon estimates of such basic pay provided to the Director under paragraph (4).”. (d) Foreign Service Retirement and Disability System.— (1) Agency contributions.—Notwithstanding section 805(a) (1) and (2) of the Foreign Service Act of 1980 (22 U.S.C. 4045(a) (1) and (2)), during the period beginning on October 1, 1997, through September 30, 2002, each agency employing a participant in the Foreign Service Retirement and Disability System shall contribute to the Foreign Service Retirement and Disability Fund— (A) 8.51 percent of the basic pay of each participant covered under section 805(a)(1) of such Act participating in the Foreign Service Retirement and Disability System; and111 STAT. 660 (B) 9.01 percent of the basic pay of each participant covered under section 805(a)(2) of such Act participating in the Foreign Service Retirement and Disability System; in lieu of the agency contribution otherwise required under section 805(a)(1) and (2) of such Act. (2) Individual deductions, withholdings, and deposits.— (A) In general.—Notwithstanding section 805(a)(1) of the Foreign Service Act of 1980 (22 U.S.C. 4045(a)(1)), beginning on January 1, 1999, through December 31, 2002, the amount withheld and deducted from the basic pay of a participant in the Foreign Service Retirement and Disability System shall be as follows: 7.25 January 1, 1999, to December 31, 1999. 7.4 January 1, 2000, to December 31, 2000. 7.5 January 1, 2001, to December 31, 2002. (B) Foreign service criminal investigators/inspectors of the office of the inspector general, agency for international development.—Notwithstanding section 805(a)(2) of the Foreign Service Act of 1980 (22 U.S.C. 4045(a)(2)), beginning on January 1, 1999, through December 31, 2002, the amount withheld and deducted from the basic pay of an eligible Foreign Service criminal investigator/inspector of the Office of the Inspector General, Agency for International Development participating in the Foreign Service Retirement and Disability System shall be as follows: 7.75 January 1, 1999, to December 31, 1999. 7.9 January 1, 2000, to December 31, 2000. 8 January 1, 2001, to December 31, 2002. (C) Conforming amendment.—Section 805(d)(1) of the Foreign Service Act of 1980 (22 U.S.C. 4045(d)(1)) is amended in the table in the matter following subparagraph (B) by striking: “On and after January 1, 1970 7”; and inserting the following: “January 1, 1970, through December 31, 1998, inclusive. 7 January 1, 1999, through December 31, 1999, inclusive. 7.25 January 1, 2000, through December 31, 2000, inclusive. 7.4 111 STAT. 661 January 1, 2001, through December 31, 2002, inclusive. 7.5 After December 31, 2002 7”. (D) Military service.—Section 805(e) of the Foreign Service Act of 1980 (22 U.S.C. 4045(e)) is amended— (i) in subsection (e)(1) by striking “Each” and inserting “Subject to paragraph (5), each”; and (ii) by adding after paragraph (4) the following new paragraph: “(5) Effective with respect to any period of military or naval service after December 31, 1998, the percentage of basic pay under section 204 of title 37, United States Code, payable under paragraph (1) shall be equal to the same percentage as would be applicable under section 8334(c) of title 5, United States Code, for that same period for service as an employee.”. (e) Foreign Service Pension System.— (1) Individual deductions and withholdings from pay.— (A) In general.—Section 856(a) of the Foreign Service Act of 1980 (22 U.S.C. 4071e(a)) is amended to read as follows: “(a)(1) The employing agency shall deduct and withhold from the basic pay of each participant the applicable percentage of basic pay specified in paragraph (2) of this subsection minus the percentage then in effect under section 3101(a) of the Internal Revenue Code of 1986 (26 U.S.C. 3101(a)) (relating to the rate of tax for old age, survivors, and disability insurance). “(2) The applicable percentage under this subsection shall be as follows: “7.5 Before January 1, 1999. 7.75 January 1, 1999, to December 31, 1999. 7.9 January 1, 20C0, to December 31, 2000. 8 January 1, 2001, to December 31, 2002. 7.5 After December 31, 2002.”. (B) Volunteer service.—Subsection 854(c) of the Foreign Service Act of 1980 (22 U.S.C. 4071c(c)) is amended to read as follows: “(c)(1) Credit shall be given under this System to a participant for a period of prior satisfactory service as— “(A) a volunteer or volunteer leader under the Peace Corps Act (22 U.S.C. 2501 et seq.), “(B) a volunteer under part A of title VIII of the Economic Opportunity Act of 1964, or “(C) a full-time volunteer for a period of service of at least 1 year’s duration under part A, B, or C of title I of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.), if the participant makes a payment to the Fund equal to 3 percent of pay received for the volunteer service; except, the amount to be paid for volunteer service beginning on January 1, 1999, through December 31, 2002, shall be as follows:111 STAT. 662 “3.25 January 1, 1999, to December 31, 1999. 3.4 January 1, 2000, to December 31, 2000. 3.5 January 1, 2001, to December 31, 2002. “(2) The amount of such payments shall be determined in accordance with regulations of the Secretary of State consistent with regulations for making corresponding determinations under chapter 83, title 5, United States Code, together with interest determined under regulations issued by the Secretary of State.”. (2) No reduction in agency contributions.—Agency contributions under section 857 of the Foreign Service Act of 1980 (22 U.S.C. 40711) shall not be reduced as a result of the amendments made under paragraph (1) of this subsection. (f) Effective Date.— (1) In general.—This section shall take effect on— (A) October 1, 1997; or (B) if later, the date of enactment of this Act. (2) Special rule.—If the date of enactment of this Act is later than October 1, 1997, then any reference to October 1, 1997, in subsection (a)(1), (c)(1), or (d)(1) shall be treated as a reference to the date of enactment of this Act.