COMPUTATION OF FOREIGN SERVICE RETIREMENT ANNUITIES AS IF WASHINGTON, D.C., LOCALITY-BASED COMPARABILITY PAYMENTS WERE MADE TO OVERSEAS-STATIONED FOREIGN SERVICE MEMBERS.

SEC. 322. COMPUTATION OF FOREIGN SERVICE RETIREMENT ANNUITIES AS IF WASHINGTON, D.C., LOCALITY-BASED COMPARABILITY PAYMENTS WERE MADE TO OVERSEAS-STATIONED FOREIGN SERVICE MEMBERS. (a) Foreign Service Retirement and Disability System.— (1) Computation of annuities.—Section 806(a) of the Foreign Service Act of 1980 (22 U.S.C. 4046(a)) is amended by adding at the end the following new paragraph: “(9) For purposes of any annuity computation under this subsection, the basic salary or basic pay of any member of the Service whose official duty station is outside the continental United States 116 STAT. 1384shall be considered to be the salary or pay that would have been paid to the member had the member’s official duty station been Washington, D.C., including locality-based comparability payments under section 5304 of title 5, United States Code, that would have been payable to the member if the member’s official duty station had been Washington, D.C.”. (2) Government contributions and individual deductions and withholdings.—Section 805(a) of the Foreign Service Act of 1980 (22 U.S.C. 4045(a)) is amended— (A) in paragraph (1)— (i) in the first sentence, by striking “7” and inserting “7.25”; and (ii) in the second sentence, by striking “An equal amount shall be contributed by the Department” and inserting “The contribution by the employing agency shall be a percentage of basic salary equal to the percentage in effect under section 7001(d)(1) of the Balanced Budget Act of 1997 (Public Law 105-33; 22 U.S.C. 4045 note), and section 505(h) of the Department of Transportation and Related Agencies Appropriations Act, 2001 (as enacted by Public Law 106346; 114 Stat. 1356A-54), plus .25 percent of basic salary, and shall be made”; (B) in paragraph (2)— (i) in subparagraph (A), by inserting at the end of the first sentence “, plus an amount equal to .25 percent of basic pay”; and (ii) in subparagraph (B), by inserting at the end of the first sentence “, plus an amount equal to .25 percent of basic pay”; (C) in paragraphs (1) and (2), by striking “Department” each place it appears and inserting “employing agency”; and (D) in paragraph (3), by inserting at the end of the first sentence “, plus .25 percent”. (b) Foreign Service Pension System.— (1) Computation of annuities.—Section 855(a) of the Foreign Service Act of 1980 (22 U.S.C. 4071d(a)) is amended by adding at the end the following new paragraph: “(3) For purposes of any annuity computation under this subsection, the average pay (as used in section 8414 of title 5, United States Code) of any member of the Service whose official duty station is outside the continental United States shall be considered to be the salary that would have been paid to the member had the member’s official duty station been Washington, D.C., including locality-based comparability payments under section 5304 of title 5, United States Code, that would have been payable to the member if the member’s official duty station had been Washington, D.C.”. (2) Individual deductions and withholdings.—Section 856(a)(2) of the Foreign Service Act of 1980 (22 U.S.C. 407 le(a)(2)) is amended by striking: “7.5 After December 31, 2000.” and inserting the following:116 STAT. 1385 “7.55 After January 11, 2003.”. (c) Effective Dates.— (1) Computation of annuities.—The amendments made by subsections (a)(1) and (b)(1) shall apply to service performed on or after the first day of the first pay period beginning on or after the date that is 90 days after the date of enactment of this Act. (2) Government contributions and individual deductions and withholdings.—The amendments made by subsections (a)(2) and (b)(2) shall take effect with the first pay period beginning on or after the date that is 90 days after the date of enactment of this Act.