Reduction of annuity of employee convicted of a felony for which an adverse action is or would have been taken

(a) Reduction of annuity of employee convicted of a felony for which an adverse action is taken (1) In general Subchapter II of chapter 83 of title 5, United States Code, is amended by adding at the end the following: 8323. Reduction of benefits of employees convicted of certain crimes (a) Reduction of annuity (1) In general The felonious service of a covered individual shall not be taken into account for purposes of calculating an annuity with respect to the individual under subchapter III of this chapter or chapter 84 if— (A) the covered individual is finally convicted of a felony; and (B) the head of the agency at which the individual was employed determines that the conviction was based on the acts or omissions of the covered individual that— (i) were taken or not taken in the performance of the covered individual’s official duties at the agency; and (ii) are sufficient to support a removal action under section 7513 or 7543, or any other provision of law, against the covered individual. (2) Procedures A covered individual against whom a determination is made under paragraph (1) shall be afforded— (A) notice of the determination not later than 15 business days in advance of a final order under paragraph (3); and (B) an opportunity to respond to the determination by not later than 10 business days after receipt of the notice. (3) Final order The head of the agency shall issue a final order to carry out paragraph (1) not later than— (A) in the case of a covered individual who responds under paragraph (2)(B), 5 business days after receiving the response from the covered individual, to the maximum extent practicable; or (B) in the case of a covered individual who does not so respond, 15 business days after the date on which the head of the agency provided notice to the individual under paragraph (2)(A), to the maximum extent practicable. (4) Appeal A covered individual with respect to whom an annuity is to be reduced under this subsection may appeal the final order under paragraph (3) to the Merit Systems Protection Board in accordance with any regulations that the Board may prescribe for purposes of this subsection. An appeal may not be made under this paragraph later than that date that is 10 business days after the date on which an order is issued under paragraph (3). (b) Administrative requirements (1) In general Not later than 30 business days after the date on which the head of an agency issues a final order under subsection (a) or a final decision of the Merit Systems Protection Board is rendered (as the case may be) with respect to an individual, the applicable employing agency shall amend the covered individual’s retirement records to reflect the period of service that is no longer creditable by operation of this section and transmit the amended records to the Director of the Office of Personnel Management. (2) Annuitants With respect to any covered individual who is an annuitant on the date on which a final order is so issued, the Director of the Office of Personnel Management shall, not later than 30 business days after the receipt of amended retirement records from an agency under paragraph (1), recalculate the annuity of the annuitant. (c) Lump-Sum annuity credit A covered individual with respect to whom an annuity is reduced under subsection (a) shall be entitled to be paid so much of the individual’s lump-sum credit as is attributable to the period of felonious service. (d) Spouse exception The spouse of any covered individual referred to in subsection (a) shall be eligible for spousal annuity benefits that, but for subsection (a), would otherwise have been payable if the Attorney General of the United States or the attorney general of a State, a territory, or the District of Columbia determines that the spouse fully cooperated with authorities in the conduct of a criminal investigation and subsequent prosecution of the individual that resulted in the benefit reduction. (e) Application Nothing in this section shall be construed to affect or otherwise mitigate the application of any other section of this subchapter. (f) Definitions In this section— (1) the term covered individual means— (A) an individual who is removed from a position as an employee (as defined in section 2105) in the civil service for performance or misconduct under section 7513 or 7543, or any other provision of law; or (B) an individual who— (i) is an employee (as defined in section 2105) subject to a removal action for performance or misconduct under section 7513, 7543, or any other provision of law; and (ii) voluntarily separates from service with the employing agency prior to the issuance of a final decision with respect to the removal action; (2) the term felonious service means, with respect to a covered individual, the period of service— (A) beginning on the date on which the head of the employing agency determines that the individual commenced engaging in the acts or omissions that gave rise to the removal action or proposed removal action described in paragraph (1); and (B) ending on the date that is the earlier of— (i) the date on which the individual is removed from or voluntarily separates from a position at the agency; or (ii) the date on which the individual ceases engaging in the acts or omissions that gave rise to the removal action or proposed removal action described in paragraph (1); (3) the term finally convicted or final conviction refers to a conviction of a felony— (A) that has not been appealed and is no longer appealable because the time for taking an appeal has expired; or (B) that has been appealed and the appeals process for which is completed; (4) the term lump-sum credit has the meaning given that term in section 8331(8) or 8401(19) (as the case may be); and (5) the term service has the meaning given that term in section 8331(12) or 8401(26) (as the case may be).. (2) Clerical amendment The table of sections for subchapter II of chapter 83 of title 5, United States Code, is amended by adding at the end the following: 8323. Reduction of benefits of employees convicted of certain crimes.. (b) Application Section 8323 of title 5, United States Code, as added by subsection (a), shall apply to acts or omissions described in subsection (a)(1)(B) of that section occurring after the date of enactment of this Act. (c) Regulations The Office of Personnel Management may prescribe regulations to carry out this section and the amendments made by this section.