,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #bfih  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #af1 #bjac ,ms4 
,norton introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,ov]sight &   
,gov]nm5t ,re=m  ,a ,,bill  ,to provide 
a %ort-t]m disability insurance program 
= ,f$]al employees = disabilities t are 
n "w-relat$1 & = o!r purposes4  #a4     
,%ort title ,?is ,act may be cit$ z !   
,f$]al ,employee ,%ort-,t]m ,disability 
,insurance ,act ( #bjac4  #b4 ,purpose  
,! purpose ( ?is ,act is to (f] volunt>y
 insurance to ,f$]al employees =        
protection aga9/ ! loss ( pay result+   
f--  7#a7 %ort-t]m injury or disability2
  7#b7 %ort-t]m leave tak5 = ! purpose (
 c>+ = a family memb]2  7#c7 ! bir? ( a 
*ild ( su* an employee2 or  7#d7 mak+   
arrangem5ts to adopt a *ild or to become
 a fo/] p>5t4  #c4 ,non-"w relat$       
disability insurance  7a7 ,9 g5]al      
,title #e1 ,unit$ ,/ates ,code1 is am5d$
 by ins]t+ aft] *apt] #hg ! foll[+3  #hh
 ,non-,"w ,relat$ ,%ort-,t]m ,disability

 ,insurance  ,sec4 #hhja4 ,def9itions4  
#hhjb4 ,availability ( insurance4 #hhjc4
 ,contract+ au?ority4 #hhjd4 ,b5efits4  
#hhje4 ,premiums4 #hhjf4 ,preemption4   
#hhjg4 ,/udies1 reports1 & audits4      
#hhjh4 ,jurisdiction ( c\rts4 #hhji4    
,adm9i/rative functions4 #hhaj4 ,co/    
acc\nt+ /&>ds4  #hhja4 ,def9itions ,=   
purposes ( ?is *apt]--  7#a7 ! t]m      
,director means ! ,director ( ! ,(fice (
 ,p]sonnel ,managem5t2  7#b7 ! t]m      
employee means--  7,a7 an employee def9$
 9 section #hija7a72 &  7,b7 an (fic] or
 employee ( ! ,unit$ ,/ates ,po/al      
,s]vice or ( ! ,po/al ,regulatory       
,commission2  7#c7 ! t]m injury or      
disability1 ) respect to an employee1   
means t su* employee is unable to p]=m !
 ess5tial functions ( su* employee's    
position ( employm5t ) ! ,f$]al         
,gov]nm5t2  7#d7 ! t]m memb] ( family   
has ! mean+ giv5 su* t]m 9 section      
#hija7e72  7#e7 ! t]m c>ri] means an    
insurance company t is lic5s$ to issue  
disability insurance 9 all ,/ates1 tak+ 

into acc\nt any subsidi>ies or          
affiliates ( su* a company2 &  7#f7 !   
t]m ,/ate includes ! ,di/rict (         
,columbia4  #hhjb4 ,availability (      
insurance  7a7 ,! ,director %all e/abli%
 & adm9i/] a program to make insurance  
cov]age available "u ?is *apt]--  7#a7 =
 an injury or disability n cov]$ "u     
*apt] #ha2  7#b7 = leave to c>e =1 or   
leave to make arrangem5ts to c>e =1 a   
memb] ( family1 includ+ ! bir? ( a son  
or a daught]2 &  7#c7 = leave to make   
arrangem5ts--  7,a7 to become a fo/]    
p>5t2 or  7,b7 to adopt a *ild4  7b7    
,insurance %all n be available "u ?is   
*apt] if ! injury or disability ( an    
employee is--  7#a7 caus$ by willful    
misconduct ( su* employee2  7#b7 caus$  
by su* employee's int5tion to br+ ab\t  
su* injury or disability to himself or  
to ano!r individual2 or  7#c7           
proximately caus$ by ! intoxication (   
su* employee4  7c7 ,9 addition to !     
requirem5ts o!rwise applicable "u       
section #hhja7e71 an insurance contract 

"u ?is *apt] mu/ be fully insur$1 :e!r  
?r\gh re9surance ) o!r c>ri]s or        
o!rwise4  #hhjc4 ,contract+ au?ority    
7a7 ,! ,director %all1 )\t reg>d to any 
/atute requir+ competitive bidd+1       
contract ) "o or m c>ri]s = a policy or 
policies ( disability insurance z       
describ$ "u ?is *apt]4 ,! ,director %all
 ensure t ea* result+ contract is aw>d$ 
on ! basis ( contractor qualifications1 
price1 & reasonable competition4  7b7   
7#a7 ,ea* contract "u ?is section %all  
conta9--  7,a7 a detail$ /atem5t ( !    
b5efits (f]$ 7includ+ any maximums1     
limitations1 exclusions1 & o!r          
def9itions ( b5efits72  7,b7 ! premiums 
*>g$ 7includ+ any limitations or o!r    
conditions on _! subsequ5t adju/m5t72   
7,c7 ! duration ( ! enrollm5t p]iod2 &  
7,d7 su* o!r t]ms & conditions 7includ+ 
proc$ures = e/abli%+ eligibility =      
insurance "u ?is *apt]7 z may be det]m9$
 by ! ,director1 consi/5t ) !           
requirem5ts ( ?is *apt]4  7#b7 ,premiums
 *>g$ "u a contract "u ?is section %all 

reasonably & equitably reflect ! co/ ( !
 b5efits provid$1 z det]m9$ by !        
,director4  7c7 7#a7 ,ea* contract "u   
?is section %all require ! c>ri]--  7,a7
 to provide paym5ts or b5efits describ$ 
9 section #hhjd7;c7 to an employee if   
su* employee is entitl$ !reto "u ! t]ms 
( ! contract2 &  7,b7 ) respect to      
disputes reg>d+ claims = paym5ts or     
b5efits "u ! t]ms ( ! contract--  7i7 to
 e/abli% int]nal proc$ures design$ to   
resolve su* disputes exp$iti\sly2 &     
7ii7 to e/abli%1 = disputes n resolv$   
?r\gh proc$ures "u clause 7i71 proc$ures
 = "o or m alt]native means ( dispute   
resolution involv+ indep5d5t ?ird-p>ty  
review "u circum/ances acceptable to !  
,director4  7#b7 ,! c>ri]'s det]m9ation 
z to :e!r or n a p>ticul> employee is   
eligible to obta9 insurance cov]age "u  
?is *apt] %all be subject to review to !
 ext5t & 9 ! mann] provid$ 9 !          
applicable contract4  7#c7 ,no?+ 9 ?is  
*apt] %all be consid]$ to grant au?ority
 = a ?ird-p>ty review] to *ange ! t]ms (

 any contract "u ?is *apt]4  7d7 7#a7   
,ea* contract "u ?is section %all be = a
 t]m ( n less ?an #c ye>s & n great] ?an
 #g ye>s1 & may be t]m9at$ e>li] ?an !  
t]m9ation date ( su* contract by !      
,director 9 accordance ) ! t]ms ( su*   
contract4 ,h[ev]1 ! rights &            
responsibilities ( ! enroll$ employee1 !
 insur]1 & ! ,director "u ea* contract  
%all cont9ue ) respect to su* employee  
until ! t]m9ation ( cov]age ( ! enroll$ 
employee or ! effective date ( a        
successor contract4  7#b7 ,a contract   
describ$ 9 p>agraph 7#a7 may be made    
automatically r5ewable1 = a t]m ( #a ye>
 ea* ,janu>y #a1 unless writt5 notice ( 
non-r5ewal is giv5 ei!r by ! ,director  
or ! c>ri] n less ?an #ahj days be=e !  
r5ewal date1 or unless modifi$ by mutual
 agreem5t4  7#c7 ,a contract describ$ 9 
p>agraph 7#a7 %all include su*          
provisions z may be necess>y to ensure  
t1 once an employee becomes duly        
enroll$1 insurance cov]age pursuant to t
 enrollm5t %all be t]m9at$ only if !    

individual is sep>at$ f ,f$]al s]vice   
or1 :]e appropriate1 = non-paym5t (     
premiums4  #hhjd4 ,b5efits  7a7 ,!      
,director may prescribe reasonable      
m9imum /&>ds = b5efit plans (f]$ "u ?is 
*apt]4  7b7 7#a7 ,b5efits provid$ to an 
employee "u ?is *apt] %all (fset o!r    
b5efits receiv$ by su* employee = ! same
 injury or disability1 leave to c>e = or
 make arrangem5ts to c>e = a memb] (    
family 7includ+ ! bir? ( a son or a     
daught]71 or leave to make arrangem5ts  
to adopt a *ild or become a fo/] p>5t   
includ+ work]'s comp5sation & disability
 retirem5t income4  7#b7 ,a contract    
provid+ b5efits "u ?is *apt]--  7,a7    
%all n provide = a preexi/+ condition   
exclusion2 &  7,b7 %all n *>ge high]    
premiums1 d5y cov]age1 or drop cov]age (
 an employee ) a preexi/+ condition4    
7#c7 ,a contract provid+ b5efits "u ?is 
*apt] %all provide inc5tives = an       
employee :o is receiv+ b5efits "u su*   
contract to return to "w4  7c7 7#a7 ,=  
ea* in/ance t su* employee suff]s an    

injury or disability1 takes leave to c>e
 = or make arrangem5ts to c>e = a memb] 
( family 7includ+ ! bir? ( a son or a   
daught]71 or takes leave to make        
arrangem5ts to adopt a *ild or become a 
fo/] p>5t1 & is eligible = b5efits "u   
?is *apt]1 su* employee may receive     
b5efits "u ?is *apt] = a p]iod n to     
exce$ #ab mon?s beg9n+ on ! date on :i* 
su* employee qualifies = su* b5efits4   
,an employee %all receive su* b5efits   
aft] ! expiration ( ! wait+ p]iod       
select$ by su* employee "u p>agraph     
7#b77;,a74 ,! am\nt ( b5efits %all be   
equal to ! less] (--  7,a7 #gj p]c5t ( !
 annual rate ( pay1 exclud+ bonuses1 (  
an employee at ! "t ( ! injury or       
disability ( su* employee occurs2 or    
7,b7 #gj p]c5t ( ! maximum rate ( basic 
pay provid$ = grade ,,gs-#ae ( ! ,g5]al 
,s*$ule4  7#b7 7,a7 ,! p]iod = :i*      
b5efits are payable to an employee "u   
?is subsection %all beg9 aft] !         
completion ( a wait+ p]iod1 subject to !
 requirem5t 9 subp>agraph 7,c74 ,an     

employee %all elect "o ( ! foll[+ wait+ 
p]iod options3  7i7 ,on ! #h? day (     
cont9u\s injury or disability1 leave to 
c>e = or to make arrangem5ts to c>e = a 
memb] ( family 7includ+ ! bir? ( a son  
or a daught]71 or leave to make         
arrangem5ts to adopt a *ild or become a 
fo/] p>5t4  7ii7 ,on ! #ca/ day (       
cont9u\s disability1 leave to c>e = or  
to make arrangem5ts to c>e = a memb] (  
family 7includ+ ! bir? ( a son or a     
daught]71 or leave to make arrangem5ts  
to adopt a *ild or become a fo/] p>5t4  
7iii7 ,on ! #ia/ day ( cont9u\s         
disability1 leave to c>e = or to make   
arrangem5ts to c>e = a memb] ( family   
7includ+ ! bir? ( a son or a daught]71  
or leave to make arrangem5ts to adopt a 
*ild or become a fo/] p>5t4  7iv7 ,on ! 
#aha/ day ( cont9u\s disability1 leave  
to c>e = or to make arrangem5ts to c>e =
 a memb] ( family 7includ+ ! bir? ( a   
son or a daught]71 or leave to make     
arrangem5ts to adopt a *ild or become a 
fo/] p>5t4  7,b7 ,an employee :o elects 

to receive b5efits e>li] %all pay a     
high] premium4  7,c7 ,a wait+ p]iod     
select$ "u subp>agraph 7,a7 %all beg9 on
 ! fir/ day ( an employee's injury or   
disability4  #hhje4 ,premiums  7a7 ,ea* 
eligible individual obta9+ insurance    
cov]age "u ?is *apt] %all be responsible
 = #ajj p]c5t ( ! premiums = su*        
cov]age4  7b7 ,! am\nt necess>y to pay !
 premiums = enrollm5t %all be )held f ! 
pay ( ! enroll$ individual4  7c7 ,!     
c>ri] p>ticipat+ "u ?is *apt] %all      
ma9ta9 records t p]mit x to acc\nt = all
 am\nts receiv$ "u ?is *apt] 7includ+   
inve/m5t e>n+s on ^? am\nts7 sep>ate &  
ap>t f all o!r funds4  7d7 7#a7 7,a7 ,! 
,employees' ,life ,insurance ,fund is   
available1 )\t fiscal ye> limitation1 = 
reasonable exp5ses incurr$ 9 adm9i/]+   
?is *apt] be=e ! />t ( ! fir/ t]m       
describ$ 9 section #hhjc7;d77#a71       
includ+ reasonable implem5tation co/s4  
7,b7 ,su* ,fund %all be reimburs$1 be=e 
! end ( ! fir/ ye> ( a contract describ$
 9 section #hhjc7;d77#a71 = all am\nts  

obligat$ or exp5d$ "u subp>agraph 7,a7  
7includ+ lo/ inve/m5t income74          
,reimbursem5t "u ?is subp>agraph %all be
 made by ! c>ri] 9 accordance )         
applicable provisions includ$ 9 !       
relevant contract4  7,c7 7i7 ,!re is    
h]eby e/abli%$ 9 ! ,employees' ,life    
,insurance ,fund a ,non-,"w ,relat$     
,disability ,insurance ,adm9i/rative    
,acc\nt1 :i* %all be available to !     
,(fice ( ,p]sonnel ,managem5t1 )\t      
fiscal ye> limitation1 to defray        
reasonable exp5ses incurr$ by ! ,(fice 9
 adm9i/]+ ?is *apt] aft] ! />t ( ! fir/ 
t]m describ$ 9 section #hhjc7;d77#a74   
7ii7 ,a contract "u ?is *apt] %all      
include appropriate provisions "u :i* ! 
c>ri] involv$ %all1 dur+ ea* ye>1 make  
su* p]iodic contributions to ! ,non-,"w 
,relat$ ,disability ,insurance          
,adm9i/rative ,acc\nt z necess>y to     
ensure t ! reasonable anticipat$ exp5ses
 ( ! ,(fice ( ,p]sonnel ,managem5t 9    
adm9i/]+ ?is *apt] dur+ su* ye> 7adju/$ 
to reconcile = any e>li] ov]e/imates or 

und]e/imates "u ?is subp>agraph7 are    
defray$4  7e7 ,no?+ 9 ?is *apt] %all1 9 
! case ( an enroll$ individual apply+ = 
an ext5sion ( insurance cov]age "u ?is  
*apt] aft] ! expiration ( su* enroll$   
individual's fir/ opportunity to enroll1
 preclude ! application ( und]writ+     
/&>ds = lat] enrollm5t4  #hhjf4         
,preemption  7a7 ,! t]ms ( any contract 
"u ?is *apt] :i* relate to ! nature1    
provision1 or ext5t ( cov]age or b5efits
 7includ+ paym5ts ) respect to b5efits7 
%all sup]s$e & preempt any ,/ate1       
t]ritorial1 tribal1 or local law1 or any
 regulation issu$ !reund]1 :i* relates  
to non-"w relat$ disability insurance or
 contracts4  7b7 7#a7 ,no tax1 fee1 or  
o!r monet>y paym5t may be impos$ or     
collect$1 directly or indirectly1 by any
 ,/ate1 t]ritory1 tribe1 or locality1 or
 by any political subdivision or o!r    
gov]nm5tal au?ority !re(1 on1 or )      
respect to1 any premium paid = an       
insurance policy "u ?is *apt]4  7#b7    
,p>agraph 7#a7 %all n be con/ru$ to     

exempt any company or o!r entity issu+ a
 policy ( insurance "u ?is *apt] f !    
imposition1 paym5t1 or collection ( a   
tax1 fee1 or o!r monet>y paym5t on ! net
 income or pr(it accru+ to or realiz$ by
 su* entity f bus9ess conduct$ "u ?is   
*apt]1 if t tax1 fee1 or paym5t is      
applicable to a broad range ( bus9ess   
activity4  7c7 ,no law ( a ,/ate1       
t]ritory1 tribe1 or locality1 p]ta9+ to 
subrogation or reimbursem5t ) respect to
 b5efits provid$ "u ?is *apt]1 %all     
op]ate except z expressly adopt$ by !   
,director4  #hhjg4 ,/udies1 reports1 &  
audits  7a7 ,a contract "u ?is *apt]    
%all conta9 provisions requir+ ! c>ri]  
to furni% su* reasonable reports z !    
,director det]m9es to be necess>y to    
enable ! ,director to c>ry out !        
,director's functions "u ?is *apt]4  7b7
 ,ea* ,f$]al ag5cy %all keep su*        
records1 make su* c]tifications1 &      
furni% ! ,director1 ! c>ri]1 or bo?1 )  
su* in=mation & reports z ! ,director   
may require4  7c7 ,! ,director %all     

conduct p]iodic reviews ( ea* plan "u   
?is *apt] to ensure its competitiv5ess4 
#hhjh4 ,jurisdiction ( c\rts ,! di/rict 
c\rts ( ! ,unit$ ,/ates h orig9al       
jurisdiction1 concurr5t ) ! ,unit$      
,/ates ,c\rt ( ,f$]al ,claims1 ( a civil
 action or claim aga9/ ! ,unit$ ,/ates  
"u ?is *apt] aft] su* adm9i/rative      
rem$ies z requir$ "u section #hhjc7;c7 h
 be5 exhau/$1 b only to ! ext5t judicial
 review is n preclud$ by any dispute    
resolution or o!r rem$y "u ?is *apt]4   
#hhji4 ,adm9i/rative functions  7a7 7#a7
 ,except z o!rwise provid$ 9 ?is *apt]1 
! ,director %all prescribe regulations  
necess>y to c>ry out ?is *apt] & to make
 arrangem5ts z necess>y ) o!r ag5cies & 
payroll sy/ems to implem5t ! program4   
7#b7 ,except z o!rwise provid$ by law1 !
 ,director %all specify 9 regulation !  
treatm5t ( "t sp5t by an individual 9   
receipt ( b5efits "u ?is *apt] = !      
purposes ( p]iodic increases 9 pay1     
ret5tion purposes1 & o!r rights1        
b5efits1 & conditions ( employm5t = :i* 

l5g? ( s]vice is a factor4  7b7 ,! c>ri]
 %all provide = p]iodic coord9at$       
enrollm5t1 promotion1 & education ef=ts1
 z specifi$ by ! ,director4  #hhaj4 ,co/
 acc\nt+ /&>ds ,! co/ acc\nt+ /&>ds     
issu$ pursuant to section #aejb ( title 
#da %all n apply ) respect to an        
insurance contract "u ?is *apt]4  4  7b7
 ,con=m+ am5dm5t ,section #ajje7;f7 (   
title #ci1 ,unit$ ,/ates ,code1 is am5d$
 by ins]t+ #hh1 aft] #hg14  7c7 ,cl]ical
 am5dm5t ,! analysis = "p ,,iii ( title 
#e1 ,unit$ ,/ates ,code1 is am5d$ by    
add+ at ! end ( subp>t ,g ! foll[+3     
#hh4,non-,"w ,relat$ ,%ort-,t]m         
,disability ,insurance#hhja  4  7d7     
,date ( application ,! am5dm5t made by  
subsection 7a7 %all apply to contracts t
 take effect ) respect to ! fir/ cal5d] 
ye> t beg9s m ?an #ah mon?s aft] ! date 
( enactm5t ( ?is section4