text: 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''.
target: 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.
feat_title: A bill to amend the Foreign Service Act of 1980 to extend comparability pay adjustments to members of the Foreign Service assigned to posts abroad, and to amend the provision relating to the death gratuity payable to surviving dependents on Foreign Service employees who die as a result of injuries sustained in the performance of duty abroad.