To amend the provisions of chapters 83 and 84 of title 5, United States Code, which relates to the deposit required in the case of an election to provide a survivor annuity to a spouse by a post-retirement marriage or a former spouse.

Summary: Revises Civil Service and Federal Employees' Retirement Systems provisions with respect to the deposit required in the case of an election to provide a survivor annuity to a spouse by a post-retirement marriage or to a former spouse.

SECTION 1. AMENDMENTS TO THE CIVIL SERVICE RETIREMENT SYSTEM.

    (a) In General.--(1) Chapter 83 of title 5, United States Code, is 
amended by inserting after section 8339 the following new section:
``Sec. 8339a. Survivor elections; deposit; offsets
    ``(a)(1) An individual who makes an election under section 
8339(j)(3), (j)(5)(C), or (k)(2) shall deposit into the Fund an amount 
determined by the Office of Personnel Management (as nearly as may be 
administratively feasible) to reflect the amount by which the annuity 
of such individual would have been reduced if the election had been in 
effect since the date of retirement (or, if later, in the case of an 
election under section 8339(j)(5)(C), since the date the previous 
reduction in the annuity of such individual was terminated under 
section 8339(j)(5) (A) or (B)), plus interest.
    ``(2) Interest under paragraph (1) shall be computed at the rate of 
6 percent a year.
    ``(b)(1) The Office shall by regulation provide for payment of any 
deposit or combination of deposits required under subsection (a) by a 
reduction in the annuity of the employee or Member.
    ``(2) The reduction shall, to the extent practicable, be designed 
such that the present value of the future reductions is actuarially 
equivalent to the present value of the deposit or combination of 
deposits required under subsection (a), except that the total reduction 
under this section may not exceed 25 percent of the annuity computed 
under subsections (a)-(i), (n), (p), and (q) of section 8339, adjusted 
under section 8340.
    ``(3) A reduction under this section--
            ``(A) shall be effective as of the effective date of the 
        election under section 8339(j)(3), (j)(5)(C), or (k)(2), as the 
        case may be;
            ``(B) shall not be terminated on account of a change in 
        marital status or for any other reason; and
            ``(C) shall be in addition to any reduction made under 
        section 8339(j)(4) or (k)(1).
    ``(c) Subsections (a) and (b) shall not apply with respect to an 
election under section 8339(j)(5)(C) or (k)(2) if--
            ``(1) the employee or Member makes such election after 
        having made an election under section 8339(k)(1); and
            ``(2) the election under section 8339(k)(1) becomes void 
        under section 8339(j)(5)(C)(iv) or (k)(2)(B).
    ``(d) That the total amount withheld under this section from the 
annuity of an employee or Member, as of time of death or other annuity-
terminating event, is less than the amount described in subsection (a) 
(including interest) shall not affect either the entitlement of such 
employee's or Member's survivor to receive the annuity elected for such 
survivor under section 8339(j)(3), (j)(5)(C), or (k)(2) (as the case 
may be) or the amount of such survivor annuity.''.
    (2) The table of sections for chapter 83 of title 5, United States 
Code, is amended by inserting after the item relating to section 8339 
the following:

``8339a. Survivor elections; deposit; offsets.''.
    (b) Technical and Conforming Amendments.--(1) Section 8339(j)(3) of 
title 5, United States Code, is amended by striking the second through 
fourth sentences and inserting the following: ``An election under this 
paragraph shall be made at the time of retirement or, if later, within 
2 years after the date on which the marriage of the former spouse to 
the employee or Member is dissolved, and shall become effective the 
first day of the second month after the election is received by the 
Office.''.
    (2) Section 8339(j)(5)(C) of title 5, United States Code, is 
amended--
            (A) by amending clause (ii) to read as follows:
    ``(ii) Such election and reduction shall become effective the first 
day of the second month after the election is received by the Office, 
but not less than 9 months after the date of the remarriage.'';
            (B) by striking clauses (iii) and (vi); and
            (C) by redesignating clauses (iv) and (v) as clauses (iii) 
        and (iv), respectively.
    (3) Section 8339(k)(2) of title 5, United States Code, is amended--
            (A) in subparagraph (B)--
                    (i) by striking clause (ii);
                    (ii) by striking ``(B)(i)'' and the first sentence 
                thereafter and inserting ``(B) The election and 
                reduction shall become effective the first day of the 
                second month after the election is received by the 
                Office, but not less than 9 months after the date of 
                the marriage.''; and
                    (iii) by redesignating subclauses (I) and (II) (of 
                former clause (i)) as clauses (i) and (ii), 
                respectively; and
            (B) by striking subparagraphs (C) and (D).
    (4) Section 8334(h) of title 5, United States Code, is amended by 
striking ``and by section 8339(j)(5)(C) and the last sentence of 
section 8339(k)(2) of this title''.

SEC. 2. AMENDMENTS TO THE FEDERAL EMPLOYEES' RETIREMENT SYSTEM.

    (a) In General.--Section 8418 of title 5, United States Code, is 
amended--
            (1) in subsection (a)(1) by striking ``which is required to 
        be made'' through ``Office'' and inserting ``shall deposit into 
        the Fund an amount determined by the Office of Personnel 
        Management''; and
            (2) by striking subsections (b) through (d) and inserting 
        the following:
    ``(b)(1) The Office shall by regulation provide for payment of the 
deposit under subsection (a) by a reduction in the annuity of the 
employee or Member.
    ``(2) The reduction shall, to the extent practicable, be designed 
such that the present value of the future reductions is actuarially 
equivalent to the present value of the deposit or combination of 
deposits required under subsection (a), except that the total reduction 
in the annuity of the employee or Member to pay any such deposit or 
combination of deposits may not exceed 25 percent of the annuity 
computed under section 8415, or under section 8452 (including 
subsection (a)(2) of such section, if applicable), adjusted under 
section 8462.
    ``(3) A reduction under this section--
            ``(A) shall become effective as of the effective date of 
        the election under subsection (b) or (c) of section 8416 or 
        section 8417(b), as the case may be;
            ``(B) shall not be terminated on account of a change in 
        marital status or for any other reason; and
            ``(C) shall be in addition to any reduction under section 
        8419(a) or 8420.
    ``(c) Subsections (a) and (b) shall not apply with respect to an 
election under section 8416 or 8417(b) if--
            ``(1) the employee or Member makes such election after 
        having made an election under section 8420; and
            ``(2) the election under section 8420 becomes void under 
        section 8416 (b)(3) or (c)(2).
    ``(d) That the total amount withheld under this section from the 
annuity of an employee or Member, as of time of death or other annuity-
terminating event, is less than the amount described in subsection (a) 
(including interest) shall not affect either the entitlement of such 
employee's or Member's survivor to receive the annuity elected for such 
survivor under section 8416 (b) or (c) or section 8417 (as the case may 
be) or the amount of such survivor annuity.''.
    (b) Technical and Conforming Amendments.--(1) Section 8416(b)(2) of 
title 5, United States Code, is amended by striking ``be effective'' 
and inserting ``become effective''.
    (2) The first sentence of section 8416(c)(2) of title 5, United 
States Code, is amended to read as follows: ``The election and 
reduction shall become effective the first day of the second month 
after the election is received by the Office, but not less than 9 
months after the date of the marriage.''.
    (3) Section 8417(b)(2) of title 5, United States Code, is amended 
to read as follows:
    ``(2) An election under this subsection--
            ``(A) shall be made at the time of retirement or, if the 
        marriage is dissolved after the date of retirement, within 2 
        years after the date on which the marriage of the former spouse 
        to the employee or Member is dissolved; and
            ``(B) shall become effective the first day of the second 
        month after the election is received by the Office.''.

SEC. 3. EFFECTIVE DATE.

    (a) In General.--The amendments made by this Act shall take effect 
on the first day of the first month beginning at least 30 days after 
the date of enactment of this Act, and shall apply to any amount which 
first becomes payable on or after that date.
    (b) Regulations.--In the case of a deposit (under any of the 
provisions of law amended by this Act) that has not been fully paid 
before the effective date of the amendments made by this Act, the 
Office of Personnel Management shall by regulation establish procedures 
under which reductions similar to those provided for under such 
amendments shall be applied with respect to the remaining portion of 
such deposit.