Inspector General Act Amendments of 1998

Inspector General Act Amendments of 1998 - Amends the Inspector General Act of 1978 to limit appointments of Federal Inspectors General to nine-year terms. Allows individuals to serve more than one term.

Provides for an external review of the Office of Inspector General (Office) for specified Federal agencies at least every three years by the General Accounting Office, a disinterested Inspector General of another Federal establishment or designated entity, or a private entity.

Sets forth minimum requirements for such reviews and requires a report of results to appropriate congressional committees.

Changes the semiannual Office activities report to an annual report. Revises required elements of such reports.

Changes the rate of pay of specified Inspectors General from Level IV to Level III of the Executive Schedule.

Terminates the Offices of Inspector General of certain designated Federal entities and transfers their functions, in specified cases, to the Offices of Inspector General of the Departments of Education, Commerce, and State and the General Services Administration (GSA). Requires the Inspectors General of Offices to which functions are transferred to report on such entities to the heads of such entities in lieu of reporting to the Departments of Education, Commerce, or State and the GSA. Directs the heads of such entities to make the required transmittal to the Congress.