This legislation establishes a new, voluntary short-term disability insurance program for Federal employees, designed to protect against loss of pay from non-work related events. It covers instances of personal injury or disability, leave taken to care for a family member, the birth of a child, or arrangements for adoption or foster parenting. The program specifically excludes disabilities caused by willful misconduct, self-inflicted injury, or intoxication. The Office of Personnel Management (OPM) is tasked with establishing and administering this program, including contracting with one or more private insurance carriers. These contracts, awarded based on qualifications, price, and competition, will detail benefits, premiums, and dispute resolution procedures, including independent third-party review. Contracts will have terms of 3 to 7 years and are automatically renewable, with coverage terminating only upon separation from service or non-payment of premiums. Employees electing coverage will be responsible for 100 percent of the premiums , which will be withheld from their pay. Benefits can be received for up to 12 months per instance, providing the lesser of 70 percent of the employee's annual pay or 70 percent of the maximum GS-15 basic pay. Employees can choose from various waiting periods (8, 31, 91, or 181 days), with earlier benefit access incurring higher premiums. Importantly, the program prohibits preexisting condition exclusions and requires incentives for employees to return to work.