article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Foreign Service Overseas Pay Equity Act of 2008''. SEC. 2. OVERSEAS COMPARABILITY PAY ADJUSTMENT. (a) Overseas Comparability Pay Adjustment.-- (1) In general.--Chapter 4 of the Foreign Service Act of 1980 (22 U.S.C. 3961 et seq.) is amended by adding at the end the following: ``SEC. 415. OVERSEAS COMPARABILITY PAY ADJUSTMENT. ``(a) In General.--A member of the Service who is designated class 1 or below for purposes of section 403 and whose official duty station is not in the continental United States or in a nonforeign area shall receive, in accordance with the phase-in schedule set forth in subsection (c), the same locality-based comparability payment under section 5304 of title 5, United States Code (stated as a percentage) as would be payable to such member if such member's official duty station were in the District of Columbia. ``(b) Treatment as Basic Pay.--The amount of any locality-based comparability payment which is payable to a member of the Service under this section-- ``(1) shall be considered a part of the basic pay of such member for the purposes described in-- ``(A) section 5304(c)(2)(A) of title 5, United States Code; and ``(B) chapter 8 of this Act; and ``(2) shall be subject to any limitations on pay applicable to locality-based comparability payments under section 5304 of such title. ``(c) Phase-In.--The locality-based comparability payment payable to a member of the Service under this section shall be equal to-- ``(1) 33.33 percent of the payment which would otherwise apply under subsection (a) during the period beginning on the first day of the first pay period beginning on or after the earlier of April 1, 2009, or the date on which appropriations for fiscal year 2009 are made available pursuant to the enactment of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2009, and ending on the last day of the last pay period in fiscal year 2009; ``(2) 66.67 percent of the payment which would otherwise apply under subsection (a) during the period beginning on the first day of the first pay period in fiscal year 2010 and ending on the last day of the last pay period in fiscal year 2010; and ``(3) 100 percent of the payment determined under subsection (a), beginning on the first day of the first pay period in fiscal year 2011. ``(d) Nonforeign Area Defined.--As used in this section, the term `nonforeign area' means 1 of the areas listed in section 591.205 of title 5, Code of Federal Regulations.''. (2) Conforming amendment.--The table of contents under section 2 of the Foreign Service Act of 1980 is amended by inserting after the item relating to section 414 the following: ``Sec. 415. Overseas comparability pay adjustment.''. (b) Conforming Amendments Relating to the Foreign Service Retirement Systems.-- (1) Contributions to the fund.-- (A) In general.--Section 805(a) of the Foreign Service Act of 1980 (22 U.S.C. 4045(a)) is amended-- (i) in paragraph (1)-- (I) by striking ``7.25 percent'' and inserting ``7 percent''; and (II) by striking ``The contribution by the employing agency'' and all that follows through ``and shall be made'' and inserting ``An equal amount shall be contributed by the employing agency''; (ii) in paragraph (2)-- (I) in subparagraph (A), by striking ``, plus an amount equal to .25 percent of basic pay''; and (II) in subparagraph (B), by striking ``, plus an amount equal to .25 percent of basic pay''; and (iii) in paragraph (3), by striking ``, plus .25 percent''. (B) Effective date.--The amendments made by subparagraph (A) shall take effect on the first day of the first pay period beginning on or after October 1, 2010. (2) Computation of annuities.--Section 806(a)(9) of the Foreign Service Act of 1980 (22 U.S.C. 4046(a)(9)) is amended by striking ``is outside the continental United States shall'' and inserting ``was outside the continental United States during the period beginning on December 29, 2002, and ending on the day before the first day of the first pay period beginning on or after October 1, 2010 (or during any portion of such period) shall, to the extent that such computation is based on the basic salary or basic pay of such member for such period (or portion of such period),''. (3) Entitlement to annuity.--Section 855(a)(3) of the Foreign Service Act of 1980 (22 U.S.C. 4071d(a)(3)) is amended-- (A) by striking ``section 8414'' and inserting ``section 8415''; and (B) by striking ``is outside the continental United States shall'' and inserting ``was outside the continental United States during the period beginning on December 29, 2002, and ending on the day before the first day of the first pay period beginning on or after October 1, 2010 (or during any portion of such period) shall, to the extent that such computation is based on the basic salary or basic pay of such member for such period (or portion of such period),''. (4) Deductions and withholdings from pay.--Section 856(a)(2) of such Act (22 U.S.C. 4071e(a)(2)) is amended to read as follows: ``(2) The applicable percentage under this subsection shall be as follows: ``Percentage Time Period 7.5 Before January 1, 1999. 7.75 January 1, 1999, to December 31, 1999. 7.9 January 1, 2000, to December 31, 2000. 7.55 January 11, 2003, to the day before the first day of the first pay period beginning on or after October 1, 2010. 7.5 Beginning on the first day of the first pay period beginning on or after October 1, 2010.''. (c) Reporting Requirement.--Not later than October 1, 2010, the Secretary of State shall submit a report to the Committee on Foreign Relations of the Senate, the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Foreign Affairs of the House of Representatives, and the Committee on Oversight and Government Reform of the House of Representatives that includes-- (1) an assessment of all allowances provided to members of the Foreign Service under the Foreign Service Act of 1980 or under title 5, United States Code; and (2) an explanation of how such allowances have been or will be affected by the amendments to the Foreign Service Act of 1980 made under this Act. SEC. 3. DEATH GRATUITY. Section 413(a) of the Foreign Service Act of 1980 (22 U.S.C. 3973(a)) is amended by striking ``at the time of death'' and inserting ``at level II of the Executive Schedule under section 5313 of title 5, United States Code, at the time of death. If the deceased employee was compensated under a local compensation plan established under section 408, the amount of such gratuity shall be equal to the greater of 1 year's salary at the time of death or 1 year's salary at the highest step of the highest grade on the local compensation plan from which the employee was being paid at the time of death''.
summary: Foreign Service Overseas Pay Equity Act of 2008 - Amends the Foreign Service Act of 1980 to: (1) extend comparability pay adjustments to Foreign Service members assigned abroad; and (2) amend the death gratuity computation payable to surviving dependents of Foreign Service employees who die from injuries sustained in the performance of duty abroad.