Omnibus Budget Reconciliation Act of 1990/Title VII/Subtitle C

SUBTITLE C — MISCELLANEOUS

Sec. 7201. Computer Matching of Federal Benefits Information and Privacy Protection.

(a) SHORT TITLE.—

This section may be cited as the ``Computer Matching and Privacy Protection Amendments of 1990´´.

(b) VERIFICATION REQUIREMENTS AMENDMENT.—

(1) Subsection (p) of section 552a of title 5, United States Code, is amended to read as follows:

``(p) VERIFICATION AND OPPORTUNITY TO CONTEST FINDINGS.—

``(1) In order to protect any individual whose records are used in a matching program, no recipient agency, non-Federal agency, or source agency may suspend, terminate, reduce, or make a final denial of any financial assistance or payment under a Federal benefit program to such individual, or take other adverse action against such individual, as a result of information produced by such matching program, until—

``(A)(i) the agency has independently verified the information; or

``(ii) the Data Integrity Board of the agency, or in the case of a non-Federal agency the Data Integrity Board of the source agency, determines in accordance with guidance issued by the Director of the Office of Management and Budget that—

``(I) the information is limited to identification and amount of benefits paid by the source agency under a Federal benefit program; and

``(II) there is a high degree of confidence that the information provided to the recipient agency is accurate;

``(B) the individual receives a notice from the agency containing a statement of its findings and informing the individual of the opportunity to contest such findings; and

``(C)(i) the expiration of any time period established for the program by statute or regulation for the individual to respond to that notice; or

``(ii) in the case of a program for which no such period is established, the end of the 30-day period beginning on the date on which notice under subparagraph (B) is mailed or otherwise provided to the individual.

``(2) Independent verification referred to in paragraph (1) requires investigation and confirmation of specific information relating to an individual that is used as a basis for an adverse action against the individual, including where applicable investigation and confirmation of—

``(A) the amount of any asset or income involved;

``(B) whether such individual actually has or had access to such asset or income for such individual's own use; and

``(C) the period or periods when the individual actually had such asset or income.

``(3) Notwithstanding paragraph (1), an agency may take any appropriate action otherwise prohibited by such paragraph if the agency determines that the public health or public safety may be adversely affected or significantly threatened during any notice period required by such paragraph.´´.

(2) Not later than 90 days after the date of the enactment of this Act, the Director of the Office of Management and Budget shall publish guidance under subsection (p)(1)(A)(ii) of section 552a of title 5, United States Code, as amended by this Act.

(c) LIMITATION ON APPLICATION OF VERIFICATION REQUIREMENT-

Section 552a(p)(1)(A)(ii)(II) of title 5, United States Code, as amended by section 2, shall not apply to a program referred to in paragraph (1), (2), or (4) of section 1137(b) of the Social Security Act (42 U.S.C. 1320b-7), until the earlier of—

(1) the date on which the Data Integrity Board of the Federal agency which administers that program determines that there is not a high degree of confidence that information provided by that agency under Federal matching programs is accurate; or

(2) 30 days after the date of publication of guidance under section 2(b).

Sec. 7202. Portability of Benefits for Employees Converting to the Civil Service System.

(a) SHORT TITLE.—

This section may be cited as the ``Portability of Benefits for Nonappropriated Fund Employees Act of 1990´´.

(b) DEFINITIONAL AMENDMENT.—

Section 2105(c) of title 5, United States Code, is amended—

(1) by amending paragraph (1) to read as follows:

``(1) laws administered by the Office of Personnel Management, except—

``(A) section 7204;

``(B) as otherwise specifically provided in this title;

``(C) the Fair Labor Standards Act of 1938; or

``(D) for the purpose of entering into an interchange agreement to provide for the noncompetitive movement of employees between such instrumentalities and the competitive service; or´´; and

(2) in paragraph (2), by striking ``chapter 84´´ and inserting ``chapter 84 (except to the extent specifically provided therein)´´.

(c) AMENDMENT RELATING TO ORDER OF RETENTION.—

Section 3502(a)(C) of title 5, United States Code, is amended to read as follows:

``(C) is entitled to credit for—

``(i) service rendered as an employee of a county committee established pursuant to section 8(b) of the Soil Conservation and Allotment Act or of a committee or association of producers described in section 10(b) of the Agricultural Adjustment Act; and

``(ii) service rendered as an employee described in section 2105(c) if such employee moves or has moved, on or after January 1, 1987, without a break in service of more than 3 days, from a position in a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard to a position in the Department of Defense or the Coast Guard, respectively, that is not described in section 2105(c).´´.

(d) AMENDMENT RELATING TO PAY ON A CHANGE OF POSITION.—

Section 5334 of title 5, United States Code, is amended by adding at the end the following:

``(g) An employee of a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard described in section 2105(c) who moves, without a break in service of more than 3 days, to a position in the Department of Defense or the Coast Guard, respectively, that is subject to this subchapter, may have such employee's initial rate of basic pay fixed at the minimum rate of the appropriate grade or at any step of such grade that does not exceed the highest previous rate of basic pay received by that employee during the employee's service described in section 2105(c). In the case of a nonappropriated fund employee who is moved involuntarily from such nonappropriated fund instrumentality without a break in service of more than 3 days and without substantial change in duties to a position that is subject to this subchapter, the employee's pay shall be set at a rate (not above the maximum for the grade, except as may be provided for under section 5365) that is not less than the employee's rate of basic pay under the nonappropriated fund instrumentality immediately prior to so moving.´´.

(e) AMENDMENT RELATING TO PERIODIC STEP INCREASES.—

Section 5335 of title 5, United States Code, is amended by adding at the end the following:

``(g) In computing periods of service under subsection (a) in the case of an employee who moves without a break in service of more than 3 days from a position under a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard described in section 2105(c) to a position under the Department of Defense or the Coast Guard, respectively, that is subject to this subchapter, service under such instrumentality shall, under regulations prescribed by the Office, be deemed service in a position subject to this subchapter.´´.

(f) AMENDMENT RELATING TO GRADE AND PAY RETENTION.—

Section 5365(b) of title 5, United States Code, is amended by adding at the end, as a flush left sentence, the following:

``Individuals with respect to whom authority under paragraph (2) may be exercised include individuals who are moved without a break in service of more than 3 days from employment in nonappropriated fund instrumentalities of the Department of Defense or the Coast Guard described in section 2105(c) to employment in the Department of Defense or the Coast Guard, respectively, that is not described in section 2105(c).´´.

(g) AMENDMENT RELATING TO PAY FOR ACCUMULATED AND ACCRUED LEAVE.—

Section 5551(a) of title 5, United States Code, is amended by adding at the end the following new sentence: ``For the purposes of this subsection, movement to employment described in section 2105(c) shall not be deemed separation from the service in the case of an employee whose annual leave is transferred under section 6308(b).´´.

(h) AMENDMENTS RELATING TO TRANSFERS BETWEEN POSITIONS UNDER DIFFERENT LEAVE SYSTEMS.—

Section 6308 of title 5, United States Code, is amended—

(1) by inserting ``(a)´´ before ``The annual´´; and

(2) by adding at the end the following:

``(b) The annual leave, sick leave, and home leave to the credit of a nonappropriated fund employee of the Department of Defense or the Coast Guard described in section 2105(c) who moves without a break in service of more than 3 days to a position in the Department of Defense or the Coast Guard, respectively, that is subject to this subchapter shall be transferred to the employee's credit. The annual leave, sick leave, and home leave to the credit of an employee of the Department of Defense or the Coast Guard who is subject to this subchapter and who moves without a break in service of more than 3 days to a position under a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard, respectively, described in section 2105(c), shall be transferred to the employee's credit under the nonappropriated fund instrumentality. The Secretary of Defense or the Secretary of Transportation, as appropriate, may provide for a transfer of funds in an amount equal to the value of the transferred annual leave to compensate the gaining entity for the cost of a transfer of annual leave under this subsection.´´.

(i) AMENDMENTS TO INCLUDE ADDITIONAL SERVICE FOR LEAVE ACCRUAL PURPOSES.—

(1) Section 6312 is amended to read as follows:

``Sec. 6312. Accrual and Accumulation for Former ASCS County Office and Nonappropriated Fund Employees.

``(a) Credit shall be given in determining years of service for the purpose of section 6303(a) for—

``(1) service as an employee of a county committee established pursuant to section 8(b) of the Soil Conservation and Allotment Act or of a committee or an association of producers described in section 10(b) of the Agricultural Adjustment Act; and

``(2) service under a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard described in section 2105(c) by an employee who has moved without a break in service of more than 3 days to a position subject to this subchapter in the Department of Defense or the Coast Guard, respectively.

``(b) The provisions of subsections (a) and (b) of section 6308 for transfer of leave between leave systems shall apply to the leave systems established for such county office employees and employees of such Department of Defense and Coast Guard nonappropriated fund instrumentalities, respectively.´´.

(2) The item relating to section 6312 in the table of sections for chapter 63 of title 5, United States Code, is amended to read as follows:

``6312. Accrual and Accumulation for Former ASCS County Office and Nonappropriated Fund Employees.´´.

(j) AMENDMENTS RELATING TO THE CIVIL SERVICE RETIREMENT SYSTEM.—

(1) Section 8331 of title 5, United States Code, is amended—

(A) by striking ``and´´ at the end of paragraph (1)(J);

(B) by inserting ``and´´ after the semicolon at the end of paragraph (1)(K);

(C) by inserting after paragraph (1)(K) the following:

``(L) an employee described in section 2105(c) who has made an election under section 8347(p)(1) to remain covered under this subchapter;´´;

(D) in paragraph (1)(ii), by striking the matter following ``Government employees´´ through the semicolon and inserting ``(besides any employee excluded by clause (x), but including any employee who has made an election under section 8347(p)(2) to remain covered by a retirement system established for employees described in section 2105(c));´´; and

(E) in paragraph (7), by striking ``and Gallaudet College;´´ and inserting ``Gallaudet College, and, in the case of an employee described in paragraph (1)(L), a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard described in section 2105(c);´´.

(2) Section 8347 of title 5, United States Code, is amended by adding at the end the following:

``(p)(1) Under regulations prescribed by the Office of Personnel Management, an employee of the Department of Defense or the Coast Guard who—

``(A) has not previously made or had an opportunity to make an election under this subsection;

``(B) has 5 or more years of civilian service creditable under this subchapter; and

``(C) moves, without a break in service of more than 3 days, to employment in a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard, respectively, described in section 2105(c),

``shall be given the opportunity to elect irrevocably, within 30 days after such move, to remain covered as an employee under this subchapter during any employment described in section 2105(c) after such move.

``(2) Under regulations prescribed by the Office of Personnel Management, an employee of a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard, described in section 2105(c), who—

``(A) has not previously made or had an opportunity to make an election under this subsection;

``(B) is a vested participant in a retirement system established for employees described in section 2105(c), as the term ``vested participant´´ is defined by such system;

``(C) moves, without a break in service of more than 3 days, to a position in the Department of Defense or the Coast Guard, respectively, that is not described in section 2105(c); and

``(D) is excluded from coverage under chapter 84 by section 8402(b),

``shall be given the opportunity to elect irrevocably, within 30 days after such move, to remain covered, during any subsequent employment as an employee as defined in section 2105(a) or section 2105(c), by the retirement system applicable to such employee's current or most recent employment described in section 2105(c) rather than be subject to this subchapter.´´.

(k) AMENDMENTS RELATING TO THE FEDERAL EMPLOYEES' RETIREMENT SYSTEM.—

(1) Section 8401 of title 5, United States Code, is amended—

(A) in paragraph (11)—

(i) by striking ``and´´ at the end of subparagraph (A);

(ii) by inserting ``and´´ after the semicolon at the end of subparagraph (B);

(iii) by inserting after subparagraph (B) the following:

``(C) an employee described in section 2105(c) who has made an election under section 8461(n)(1) to remain covered under this chapter;´´;

(iv) by striking ``or´´ at the end of clause (ii);

(v) by inserting ``or´´ after the semicolon at the end of clause (iii); and

(vi) by inserting after clause (iii) the following:

``(iv) an employee who has made an election under section 8461(n)(2) to remain covered by a retirement system established for employees described in section 2105(c);´´; and

(B) in paragraph (15), by striking ``and Gallaudet College;´´ and inserting ``, Gallaudet College, and, in the case of an employee described in paragraph (11)(C), a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard described in section 2105(c);´´.

(2) Section 8461 of title 5, United States Code, is amended by adding at the end the following:

``(n)(1) Under regulations prescribed by the Office, an employee of the Department of Defense or the Coast Guard who—

``(A) has not previously made or had an opportunity to make an election under this subsection;

``(B) has 5 or more years of civilian service creditable under this chapter; and

``(C) moves, without a break in service of more than 3 days, to employment in a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard, respectively, described in section 2105(c),

``shall be given the opportunity to elect irrevocably, within 30 days after such move, to remain covered as an employee under this chapter during any employment described in section 2105(c) after such move.

``(2) Under regulations prescribed by the Office, an employee of a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard described in section 2105(c), who—

``(A) has not previously made or had an opportunity to make an election under this subsection;

``(B) is a vested participant in a retirement system established for employees described in section 2105(c), as the term ``vested participant´´ is defined by such system;

``(C) moves, without a break in service of more than 3 days, to a position in the Department of Defense or the Coast Guard, respectively, that is not described by section 2105(c); and

``(D) is not eligible to make an election under section 8347(p),

``shall be given the opportunity to elect irrevocably, within 30 days after such move, to remain covered, during any subsequent employment as an employee as defined by section 2105(a) or section 2105(c), by the retirement system applicable to such employee's current or most recent employment described by section 2105(c) rather than be subject to this chapter.´´.

(l) AMENDMENTS RELATING TO HEALTH BENEFITS.—

Section 8901(3)(A) of title 5, United States Code, is amended—

(1) by striking ``or´´ at the end of clause (ii);

(2) by inserting ``or´´ after the semicolon at the end of clause (iii); and

(3) by inserting after clause (iii) the following:

``(iv) on an immediate annuity under a retirement system established for employees described in section 2105(c), in the case of an individual who elected under section 8347(p)(2) or 8461(n)(2) to remain subject to such a system;´´.

(m) APPLICABILITY.—

(1) The amendments made by this section shall apply with respect to any individual who, on or after January 1, 1987—

(A) moves without a break in service of more than 3 days from employment in a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard that is described in section 2105(c) of title 5, United States Code, to employment in the Department of Defense or the Coast Guard, respectively, that is not described in such section 2105(c); or

(B) moves without a break in service from employment in the Department of Defense or the Coast Guard that is not described in such section 2105(c) to employment in a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard, respectively, that is described in such section 2105(c).

(2) The Secretary of Defense, the Secretary of Transportation, the Director of the Office of Personnel Management, and the Executive Director of the Federal Retirement Thrift Investment Board, as applicable, shall take such actions as may be practicable to ensure that each individual who has moved as described under paragraph (1) on or after January 1, 1987, and before the date of enactment of this Act, receives the benefit of the amendments made by this section as if such amendments had been in effect at the time such individual so moved. Each such individual who wishes to make an election of retirement coverage under the amendments made by subsection (j) or (k) of this section shall complete such election within 180 days after the date of enactment of this Act.

(n) CLARIFYING PROVISIONS RELATING TO TREATMENT OF INDIVIDUALS ELECTING TO REMAIN SUBJECT TO THEIR FORMER RETIREMENT SYSTEM.—

(1) For the purpose of this section, the term ``nonappropriated fund instrumentality´´ means a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard, described in section 2105(c) of title 5, United States Code.

(2)(A) If an individual makes an election under section 8347(p)(1) of title 5, United States Code, to remain covered by subchapter III of chapter 83 of such title, any nonappropriated fund instrumentality thereafter employing such individual shall deduct from such individual's pay and contribute to the Thrift Savings Fund such sums as are required for such individual in accordance with section 8351 of such title.

(B) Notwithstanding subsection (a) or (b) of section 8432 of title 5, United States Code, any individual who, as of the date of enactment of this Act, becomes eligible to make an election under section 8347(p)(1) of such title may, within 30 days after such individual makes an election thereunder in accordance with subsection (m)(2), make any election described in section 8432(b)(1)(A) of such title.

(3)(A) If an individual makes an election under section 8461(n)(1) of title 5, United States Code, to remain covered by chapter 84 of such title, any nonappropriated fund instrumentality thereafter employing such individual shall deduct from such individual's pay and shall contribute to the Thrift Savings Fund the funds deducted, together with such other sums as are required for such individual under subchapter III of such chapter.

(B) Notwithstanding subsection (a) or (b) of section 8432 of title 5, United States Code, any individual who, as of the date of enactment of this Act, becomes eligible to make an election under section 8461(n)(1) of such title may, within 30 days after such individual makes an election thereunder in accordance with subsection (m)(2), make any election described in section 8432(b)(1)(A) of such title.

(4) If an individual makes an election under section 8347(p)(2) or 8461(n)(2) of title 5, United States Code, to remain covered by a retirement system established for employees described in section 2105(c) of such title, any Government agency thereafter employing such individual shall, in lieu of any deductions or contributions for which it would otherwise be responsible with respect to such individual under chapter 83 or 84 of such title, make such deductions from pay and such contributions as would be required (under the retirement system for nonappropriated fund employees involved) if it were a nonappropriated fund instrumentality. Any such deductions and contributions shall be remitted to the Department of Defense or the Coast Guard, as applicable, for transmission to the appropriate retirement system.