Cafeteria plan for Federal employees

(a) Definitions In this section: (1) Cafeteria plan The term cafeteria plan has the meaning given the term in section 125(d) of the Internal Revenue Code of 1986. (2) Director The term Director means the Director of the Office of Personnel Management. (3) Qualified carrier The term qualified carrier means an insurance company (or consortium of insurance companies) that is licensed to issue disability-income insurance under the laws of 48 of the States and the District of Columbia, taking into account any subsidiaries of such a company (and, in the case of a consortium, considering the member companies and any subsidiaries thereof, collectively). (b) Plan authorized The Director shall establish and administer a cafeteria plan through which an employee of an Executive agency may select certain benefits from a menu of options, including cash, life insurance, disability-income insurance, flexible spending arrangements for health care, flexible spending arrangements for dependent care, a health savings account, enhanced dental benefits, and enhanced vision benefits. (c) Contribution (1) In general Not later than October 1 of each year, the Director shall— (A) identify the amount of the Federal Government’s contribution to the cafeteria plan established under subsection (b); and (B) in making the identification required under subparagraph (A), determine the annual adjustment of the Federal Government’s contribution based on inflation and other appropriate factors as determined by the Director. (2) Director responsibility The Director shall ensure that the amount of the Federal Government’s contribution for the cafeteria plan described in subsection (b) does not increase or decrease Governmentwide spending by Executive agencies on benefits for employees of those agencies. (d) Contracting authority The Director— (1) may, without regard to subsections (b), (c), and (d) of section 6101 of title 41, United States Code, or any other statute requiring competitive bidding, enter into contracts with 1 or more qualified carriers for a policy or policies of disability-income insurance, for the cafeteria plan authorized under subsection (b); and (2) shall ensure that each contract entered into under paragraph (1) is entered into on the basis of contractor qualifications, price, and reasonable competition. (e) No effect on eligibility for other benefits Nothing in this section may be construed to affect the eligibility for insurance and other benefits under subpart G of part III of title 5, United States Code. (f) Regulations The Director shall, not later than 1 year after the date of enactment of this Act, propose for public notice and comment regulations to implement the plan authorized by this section, including regulations for a disability-income insurance program for Federal employees. (g) Statutory proposals The Director shall, not later than 180 days after the date of enactment of this Act, submit to Congress recommendations for legislative proposals that should be made to chapter 87 of title 5, United States Code, that are necessary for the establishment of the cafeteria plan under this section.