Federal Employees Indian Tribal Organization Transfer Act - Provides that Government employees appointed for more than a year who transfer on or before December 31, 1981, to an Indian tribal organization to perform duties which have been performed for Indian communities can retain rights to work, injury compensation, retirement benefits, and life and health insurance as long as employee and agency contributions are made to the appropriate fund.

Provides for reemployment within thirty days of application in the former position or equal position if the transfer occurred at the time such an activity was transferred to a tribal organization or within ninety days of such transfer, as long as application is made no later than five years after transfer to the tribal organization or if the activity is transferred back to the government.

Entitles the employee upon transfer back to the government to the pay equal to that had he stayed in the agency, restoration of sick leave to its status at the time of the transfer and credit for time with the tribal organization.

Directs an employee to refund at reemployment any lump sum payments for annual leave. Restores such leave to the employee's account.

Directs tribal organizations to deposit necessary benefit payments in the appropriate funds.

Requires employees to elect retention of benefits prior to transfer to the tribal organization.