A bill to amend chapter 83 and 84 of title 5, United States Code, to authorize payments to certain trusts under the Social Security Act, and for other purposes.

Summary: Amends Federal law concerning the Civil Service Retirement System and the Federal Employees Retirement System to allow a payment due a minor or an individual mentally incompetent or under other legal disability to be made to the person who is a trustee under a trust meeting specified trust requirements of title XIX (Medicaid) of the Social Security Act that contains the assets of an individual who is disabled if: (1) in the case of a minor, the minor is a child of the person upon whom the benefit for payment due is based or a dependent (who is a child) of the person upon whom the benefit for payment due is based; or (2) in the case of an individual mentally incompetent or under legal disability, the incompetency or disability occurred during the period that the individual was a child or a dependent (who was a child) of the person upon whom the benefit for payment due is based and that incompetency or disability has been continuous since that occurrence through the date of the payment due.

Provides for the assignability of payments under such Systems to a trustee under such a trust.

SECTION 1. AUTHORIZATION OF CERTAIN PAYMENTS UNDER THE CIVIL SERVICE 
              RETIREMENT SYSTEM AND THE FEDERAL EMPLOYEES RETIREMENT 
              SYSTEM TO CERTAIN TRUSTS UNDER THE SOCIAL SECURITY ACT.

    (a) Civil Service Retirement System.--
            (1) Payments.--Section 8345(e) of title 5, United States 
        Code, is amended--
                    (A) by inserting ``(1)'' after ``(e)''; and
                    (B) by adding at the end the following:
    ``(2)(A) In this paragraph, the terms `dependent' and `child' have 
the meanings given under section 8441 (3) and (4), respectively.
    ``(B) Payment due a minor, or an individual mentally incompetent or 
under other legal disability may be made to a trustee under a trust 
meeting the requirements of subparagraph (A) or (C) of section 
1917(d)(4) of the Social Security Act (42 U.S.C. 1396p(d)(4) (A) or 
(C)), if--
            ``(i) in the case of a minor, the minor is--
                    ``(I) a child of the person upon whom the benefit 
                for payment due is based; or
                    ``(II) a dependent (who is a child) of the person 
                upon whom the benefit for payment due is based; or
            ``(ii) in the case of an individual mentally incompetent or 
        under legal disability--
                    ``(I) the incompetency or disability occurred 
                during the period that the individual was a child or a 
                dependent (who was a child) of the person upon whom the 
                benefit for payment due is based; and
                    ``(II) that incompetency or disability has been 
                continuous since that occurrence through the date of 
                the payment due.''.
            (2) Assignability of payments.--Section 8346(a) of title 5, 
        United States Code, is amended--
                    (A) by inserting ``(1)'' after ``(a)''; and
                    (B) by adding at the end the following:
    ``(2)(A) In this paragraph, the terms `dependent' and `child' have 
the meanings given under section 8441 (3) and (4), respectively.
    ``(B) Except as provided under paragraph (1), money payable under 
this subchapter to a minor or an individual mentally incompetent or 
under other legal disability is not assignable, either in law or 
equity, except to a trustee under a trust meeting the requirements of 
subparagraph (A) or (C) of section 1917(d)(4) of the Social Security 
Act (42 U.S.C. 1396p(d)(4) (A) or (C)), if--
            ``(i) in the case of a minor, the minor is--
                    ``(I) a child of the person upon whom the benefit 
                for the money payable is based; or
                    ``(II) a dependent (who is a child) of the person 
                upon whom the benefit for the money payable is based; 
                or
            ``(ii) in the case of an individual mentally incompetent or 
        under legal disability--
                    ``(I) the incompetency or disability occurred 
                during the period that the individual was a child or a 
                dependent (who was a child) of the person upon whom the 
                benefit for the money payable is based; and
                    ``(II) that incompetency or disability has been 
                continuous since that occurrence through the date of 
                the payment of the money.''.
    (b) Federal Employees Retirement System.--
            (1) Payments.--Section 8466(c) of title 5, United States 
        Code, is amended--
                    (A) by inserting ``(1)'' after ``(c)''; and
                    (B) by adding at the end the following:
    ``(2)(A) In this paragraph, the terms `dependent' and `child' have 
the meanings given under section 8441 (3) and (4), respectively.
    ``(B) Payment due a minor, or an individual mentally incompetent or 
under other legal disability may be made to a trustee under a trust 
meeting the requirements of subparagraph (A) or (C) of section 
1917(d)(4) of the Social Security Act (42 U.S.C. 1396p(d)(4) (A) or 
(C)), if--
            ``(i) in the case of a minor, the minor is--
                    ``(I) a child of the person upon whom the benefit 
                for payment due is based; or
                    ``(II) a dependent (who is a child) of the person 
                upon whom the benefit for payment due is based; or
            ``(ii) in the case of an individual mentally incompetent or 
        under legal disability--
                    ``(I) the incompetency or disability occurred 
                during the period that the individual was a child or a 
                dependent (who was a child) of the person upon whom the 
                benefit for payment due is based; and
                    ``(II) that incompetency or disability has been 
                continuous since that occurrence through the date of 
                the payment due.''.
            (2) Assignability of payments.--Section 8470(a) of title 5, 
        United States Code, is amended--
                    (A) by inserting ``(1)'' after ``(a)''; and
                    (B) by adding at the end the following:
    ``(2)(A) In this paragraph, the terms `dependent' and `child' have 
the meanings given under section 8441 (3) and (4), respectively.
    ``(B) Except as provided under paragraph (1), an amount payable 
under subchapter II, IV, or V to a minor or an individual mentally 
incompetent or under other legal disability is not assignable, either 
in law or equity, except to a trustee under a trust meeting the 
requirements of subparagraph (A) or (C) of section 1917(d)(4) of the 
Social Security Act (42 U.S.C. 1396p(d)(4) (A) or (C)), if--
            ``(i) in the case of a minor, the minor is--
                    ``(I) a child of the person upon whom the benefit 
                for the amount payable is based; or
                    ``(II) a dependent (who is a child) of the person 
                upon whom the benefit for the amount payable is based; 
                or
            ``(ii) in the case of an individual mentally incompetent or 
        under legal disability--
                    ``(I) the incompetency or disability occurred 
                during the period that the individual was a child or a 
                dependent (who was a child) of the person upon whom the 
                benefit for the amount payable is based; and
                    ``(II) that incompetency or disability has been 
                continuous since that occurrence through the date of 
                the payment of the amount.''.