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(ii) which commences before the effective date
referred to in paragraph (1)(B),
shall (subject to subsection (b)(1)) be recomputed taking
into account all service described in subsection (a) that
was performed by such individual.
(B) OTHER CASES.-An annuity or survivor annuity-

(i) which is based on the service of an individual
who performed service described in subsection (a),

(ii) the requirements for entitlement which could not be met without taking into account service described in subsection (a), and

(iii) which (if service described in subsection (a)
had been taken into account, and an appropriate
application been submitted) would have commenced

before the effective date referred to in paragraph (1)(B),
shall (subject to subsection (b)(1)) be computed taking into
account all service described in subsection (a) that was
performed by such individual.
(C) RETROACTIVE EFFECT.-Any computation

or
recomputation of an annuity or survivor annuity pursuant
to this paragraph shall-

(i) if pursuant to subparagraph (A), be effective as of the commencement date of the annuity or survivor annuity involved; and

(ii) if pursuant to subparagraph (B), be effective as of the commencement date that would have applied if application for the annuity or survivor annuity involved had been submitted on the earliest date possible in order for it to have been approved.

(D) LUMP-SUM PAYMENT.—Any amounts which by virtue of subparagraph (C) are payable for any months preceding the first month (on or after the effective date referred to in paragraph (1)(B)) as of which annuity or survivor annuity payments become payable fully reflecting the computation or recomputation under subparagraph (A) or (B) (as the case may be) shall be payable in the form of a lump-sum payment.

(E) ORDER OF PRECEDENCE.—Section 8424(d) of title 5, United States Code, shall apply in the case of any payment under subparagraph (D) payable to an individual

who has died. (f) IMPLEMENTATION.- The Office of Personnel Management, Regulations. in consultation with the Secretary, shall prescribe such regulations and take such action as may be necessary and appropriate to implement this section. SEC. 322. COMPUTATION OF FOREIGN SERVICE RETIREMENT ANNU

ITIES AS IF WASHINGTON, D.C., LOCALITY-BASED COM-
PARABILITY PAYMENTS WERE MADE TO OVERSEAS-STA-

TIONED 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

shall 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:

“7.55

After January 11, 2003.". (c) EFFECTIVE DATES.

(1) COMPUTATION OF ANNUITIES.—The amendments made 22 USC 4046 by subsections (a)(1) and (b)(1) shall apply to service performed note. 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 DEDUC- 22 USC 4045 TIONS AND WITHHOLDINGS.—The amendments made by sub- note. sections (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.

SEC. 323. PLAN FOR IMPROVING RECRUITMENT OF VETERANS INTO

THE FOREIGN SERVICE. (a) IN GENERAL.-Not later than 180 days after the date of Deadline. enactment of this Act, the Secretary shall submit to the appropriate congressional committees a report containing a plan for the Department to improve the recruitment of veterans for the career Foreign Service. The plan shall

(1) address personnel issues relevant to such recruitment efforts; and

(2) include proposals for improving coordination between the Department and the Departments of Defense, Transportation, and Veterans Affairs in promoting the recruitment of veterans to the career Foreign Service.

(b) DEFINITION.—In this section, the term “veterans” has the meaning given that term in section 101(2) of title 38, United States Code.

22 USC 265la note.

SEC. 324. REPORT CONCERNING MINORITY EMPLOYMENT.

On April 1, 2003, and April 1, 2004, the Secretary shall submit a comprehensive report to Congress, with respect to the preceding calendar year, concerning the employment of members of minority groups at the Department, including the Civil Service and the Foreign Service. The report shall include the following data (reported in terms of real numbers and percentages and not as ratios):

(1) For the last preceding Foreign Service examination and promotion cycles for which such information is available

(A) the numbers and percentages of members of all minority groups taking the written Foreign Service examination;

(B) the numbers and percentages of members of all minority groups successfully completing and passing the written Foreign Service examination;

(C) the numbers and percentages of members of all minority groups successfully completing and passing the oral Foreign Service examination;

(D) the numbers and percentages of members of all minority groups entering the junior officer class of the Foreign Service;

(E) the numbers and percentages of members of all minority groups who are Foreign Service officers at each grade; and

22 USC 265la note.

(F) the numbers and percentages of members of all minority groups promoted to each grade of the Foreign Service

(2) For the last preceding year for Civil Service employment at the Department for which such information is available

(A) numbers and percentages of members of all minority groups entering the Civil Service;

(B) the number and percentages of members of all minority groups who are Civil Service employees at each grade of the Civil Service; and

(C) the number of and percentages of members of all minority groups promoted at each grade of the Civil

Service. SEC. 325. USE OF FUNDS AUTHORIZED FOR MINORITY RECRUITMENT. (a) CONDUCT OF RECRUITMENT ACTIVITIES.

(1) IN GENERAL.—Amounts authorized to be appropriated for minority recruitment under section 111(1)(D) shall be used only for activities directly related to minority recruitment, such as recruitment materials designed to target members of minority groups and the travel expenses of recruitment trips to colleges, universities, and other institutions or locations.

(2) LIMITATION.-Amounts authorized to be appropriated for minority recruitment under section 111(1)(D) may not be used to pay salaries of employees of the Department.

(b) RECRUITMENT ACTIVITIES AT ACADEMIC INSTITUTIONS.—The Secretary shall expand the recruitment efforts of the Department to include not less than 25 percent of the part B institutions (as defined under section 322 of the Higher Education Act of 1965) in the United States and not less than 25 percent of the Hispanicserving institutions (as defined in section 502(a)(5) of such Act) in the United States.

(c) EVALUATION OF RECRUITMENT EFFORTS.The Secretary shall establish a database relating to efforts to recruit members of minority groups into the Foreign Service and the Civil Service and shall report to the appropriate congressional committees on the evaluation of efforts to recruit such individuals, including an analysis of the information collected in the database created under this subsection. Such report shall be included in each of the two reports required under section 324. SEC. 326. ASSIGNMENTS AND DETAILS OF PERSONNEL TO THE AMER

ICAN INSTITUTE IN TAIWAN. Section 503 of the Foreign Service Act of 1980 (22 U.S.C. 3983) is amended

(1) by adding at the end the following new subsection: "(d)(1) The Secretary may assign a member of the Service, or otherwise detail an employee of the Department, for duty at the American Institute in Taiwan, if the Secretary determines that to do so is in the national interest of the United States.

"(2) The head of any other department or agency of the United States may, with the concurrence of the Secretary, detail an employee of that department or agency to the American Institute in Taiwan, if the Secretary determines that to do so is in the national interest of the United States. “(3) In this subsection, the term 'employee' does not include

“(A) a noncareer appointee, limited term appointee, or limited emergency appointee (as such terms are defined in section 3132(a) of title 5, United States Code) in the Senior Executive Service; or

"(B) an employee in a position that has been excepted from the competitive service by reason of its confidential, policydetermining, policy-making, or policy-advocating character.

"(4) An assignment or detail under this subsection may be made with or without reimbursement from the American Institute in Taiwan.

“(5) The period of an assignment or detail under this subsection shall not exceed a total of 6 years, except that the Secretary (or any other head of a department or agency of the United States, with the concurrence of the Secretary) may extend the period of an assignment or detail for an additional period of not more than 6 years."; and

(2) in subsection (c), by striking “Assignments” and inserting "Except as otherwise provided in subsection (d)(5),

assignments”. SEC. 327. ANNUAL REPORTS ON FOREIGN LANGUAGE COMPETENCE.

Section 702(c) of the Foreign Service Act of 1980 (22 U.S.C. 4022(c)) is amended

(1) by striking “March 31” and inserting “January 31"; and

(2) in paragraph (1), by striking "calendar year” and inserting “fiscal year". SEC. 328. TRAVEL OF CHILDREN OF MEMBERS OF THE FOREIGN

SERVICE ASSIGNED ABROAD. Section 901(15) of the Foreign Service Act of 1980 (22 U.S.C. 4081(15)) is amended by striking “port of entry in the contiguous 48 States which is nearest to that post” and inserting “residence of the other parent, or between the post to which the member is assigned and the residence of the child if the child does not reside with a parent”.

TITLE IV-INTERNATIONAL

ORGANIZATIONS

SEC. 401. PAYMENT OF THIRD INSTALLMENT OF ARREARAGES.

(a) IN GENERAL.—The United Nations Reform Act of 1999 (title IX of division A of H.R. 3427, as enacted into law by section 1000(a)(7) of Public Law 106-113; appendix G; 113 Stat. 1501A475) is amended as follows:

(1) Section 912(b)(3) is amended by striking“, upon the certification described in section 941” and inserting the following: "upon a certification described in section 941 with respect to the United Nations or a particular designated specialized agency, and immediately with respect to organizations to which none of the conditions in section 941(b) apply”. (2) Section 941(a)(2) is amended

(A) by striking "also";

(B) by striking “in subsection (b)(4)” both places it appears; and

(C) by striking“, if the other conditions in subsection (b) are satisfied”.

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