Women's Pension Equity Act of 1996

Summary: Women's Pension Equity Act of 1996 - Amends the Internal Revenue Code and the Employee Retirement Income Security Act of 1974 (ERISA) to provide for the development of a model:  (1) spousal consent form when an election is made to waive a qualified joint and survivor annuity or a qualified preretirement survivor annuity; and (2) qualified domestic relations order. 
Amends the Railroad Retirement Act of 1974 to extend the payment of any portion of Tier II Railroad Retirement benefits to surviving former spouses pursuant to divorce agreements. 
Amends Federal law to provide for a survivor annuity to widows, widowers, and certain former spouses of Federal employees who die after having separated from the service with title to a deferred annuity, but before attaining age for such annuity under the Civil Service Retirement System on the same basis as is currently provided to certain survivors of former Members of Congress. 
Revises provisions concerning Federal retirement benefits subject to a court order.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Women's Pension Equity Act of 
1996''.

SEC. 2. MODEL SPOUSAL CONSENT FORM AND QUALIFIED DOMESTIC RELATIONS 
              ORDER.

    (a) Model Spousal Consent Form.--
            (1) Amendment to internal revenue code.--Section 417(a) of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new paragraph:
            ``(7) Consent form.--The Secretary shall develop a form not 
        later than January 1, 1997, for the spousal consent required 
        under paragraph (2) which--
                    ``(A) is written in a manner calculated to be 
                understood by the average person, and
                    ``(B) discloses in plain form whether--
                            ``(i) the waiver is irrevocable, and
                            ``(ii) the waiver may be revoked by a 
                        qualified domestic relations order.''.
            (2) Amendment to erisa.--Section 205(c) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1055(c)) is 
        amended by adding at the end the following new paragraph:
            ``(8) The Secretary of the Treasury shall develop a form no 
        later than January 1, 1997, for the spousal consent required 
        under paragraph (2) which--
                    ``(A) is written in a manner calculated to be 
                understood by the average person, and
                    ``(B) discloses in plain form whether--
                            ``(i) the wavier is irrevocable, and
                            ``(ii) the waiver may be revoked by a 
                        qualified domestic relations order.''.
    (b) Model Qualified Domestic Relations Order.--
            (1) Amendment to erisa.--Section 206(d)(3) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1056(d)(3)) 
        is amended by adding at the end the following new subparagraph:
    ``(O) The Secretary shall develop a form not later than January 1, 
1997, for a qualified domestic relations order--
            ``(i) which meets all the requirements of subparagraph 
        (B)(i), and
            ``(ii) the provisions of which focus attention on the need 
        to consider the treatment of any lump sum payment, qualified 
        joint and survivor annuity, or qualified preretirement survivor 
        annuity.''.
            (2) Amendment to internal revenue code.--Section 414(p) of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new paragraph:
            ``(13) The Secretary of Labor shall develop a form not 
        later than January 1, 1997, for a qualified domestic relations 
        order which--
                    ``(A) which meets all the requirements of paragraph 
                (1)(A), and
                    ``(B) the provisions of which focus attention on 
                the need to consider the treatment of any lump sum 
                payment, qualified joint and survivor annuity, or 
                qualified preretirement survivor annuity.''.
    (c) Publicity.--The Secretary of the Treasury and the Secretary of 
Labor shall include publicity for the model forms required by the 
amendments made by this section in the pension outreach efforts 
undertaken by each Secretary.

SEC. 3. EXTENSION OF TIER II RAILROAD RETIREMENT BENEFITS TO SURVIVING 
              FORMER SPOUSES PURSUANT TO DIVORCE AGREEMENTS.

    (a) In General.--Section 5 of the Railroad Retirement Act of 1974 
(45 U.S.C. 231d) is amended by adding at the end the following new 
subsection:
    ``(d) Notwithstanding any other provisions of law, the payment of 
any portion of an annuity computed under section 3(d) to a surviving 
former spouse in accordance with a court decree of divorce, annulment, 
or legal separation or the terms of any court-approved property 
settlement incident to any such court decree shall not be terminated 
upon the death of the individual who preformed the service with respect 
to which such annuity is so computed unless such termination is 
otherwise required by the terms of such court decree.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 4. SURVIVOR ANNUITIES FOR WIDOWS, WIDOWERS, AND FORMER SPOUSES OF 
              FEDERAL EMPLOYEES WHO DIE BEFORE ATTAINING AGE FOR 
              DEFERRED ANNUITY UNDER CIVIL SERVICE RETIREMENT SYSTEM.

    (a) Benefits for Widow or Widower.--Section 8341(f) of title 5, 
United States Code, is amended--
            (1) in the matter preceding paragraph (1) by--
                    (A) by inserting ``a former employee separated from 
                the service with title to deferred annuity from the 
                Fund dies before having established a valid claim for 
                annuity and is survived by a spouse, or if'' before ``a 
                Member''; and
                    (B) by inserting ``of such former employee or 
                Member'' after ``the surviving spouse'';
            (2) in paragraph (1)--
                    (A) by inserting ``former employee or'' before 
                ``Member commencing''; and
                    (B) by inserting ``former employee or'' before 
                ``Member dies''; and
            (3) in the undesignated sentence following paragraph (2)--
                    (A) in the matter preceding subparagraph (A) by 
                inserting ``former employee or'' before ``Member''; and
                    (B) in subparagraph (B) by inserting ``former 
                employee or'' before ``Member''.
    (b) Benefits for Former Spouse.--Section 8341(h) of title 5, United 
States Code, is amended--
            (1) in paragraph (1) by adding after the first sentence 
        ``Subject to paragraphs (2) through (5) of this subsection, a 
        former spouse of a former employee who dies after having 
        separated from the service with title to a deferred annuity 
        under section 8338(a) but before having established a valid 
        claim for annuity is entitled to a survivor annuity under this 
        subsection, if and to the extent expressly provided for in an 
        election under section 8339(j)(3) of this title, or in the 
        terms of any decree of divorce or annulment or any court order 
        or court-approved property settlement agreement incident to 
        such decree.''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)(ii) by striking ``or 
                annuitant,'' and inserting ``annuitant, or former 
                employee''; and
                    (B) in subparagraph (B)(iii) by inserting ``former 
                employee or'' before ``Member''.
    (c) Protection of Survivor Benefit Rights.--Section 8339(j)(3) of 
title 5, United States Code, is amended by inserting at the end the 
following:
    ``The Office shall provide by regulation for the application of 
this subsection to the widow, widower, or surviving former spouse of a 
former employee who dies after having separated from the service with 
title to a deferred annuity under section 8338(a) but before having 
established a valid claim for annuity.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply only in 
the case of a former employee who dies on or after such date.

SEC. 5. COURT ORDERS RELATING TO FEDERAL RETIREMENT BENEFITS FOR FORMER 
              SPOUSES OF FEDERAL EMPLOYEES.

    (a) Civil Service Retirement System.--
            (1) In general.--Section 8345(j) of title 5, United States 
        Code, is amended--
                    (A) by redesignating paragraph (3) as paragraph 
                (4); and
                    (B) by inserting after paragraph (2) the following 
                new paragraph:
    ``(3) Payment to a person under a court decree, court order, 
property settlement, or similar process referred to under paragraph (1) 
shall include payment to a former spouse of the employee, Member, or 
annuitant.''.
            (2) Lump-sum benefits.--Section 8342 of title 5, United 
        States Code, is amended--
                    (A) in subsection (c) by striking ``Lump-sum 
                benefits'' and inserting ``Subject to subsection (j), 
                lump-sum benefits''; and
                    (B) in subsection (j)(1) by striking ``the lump-sum 
                credit under subsection (a) of this section'' and 
                inserting ``any lump-sum credit or lump-sum benefit 
                under this section''.
    (b) Federal Employees Retirement System.--Section 8467 of title 5, 
United States Code, is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Payment to a person under a court decree, court order, 
property settlement, or similar process referred to under subsection 
(a) shall include payment to a former spouse of the employee, Member, 
or annuitant.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 6. PREVENTION OF CIRCUMVENTION OF COURT ORDER BY WAIVER OF RETIRED 
              PAY TO ENHANCE CIVIL SERVICE RETIREMENT ANNUITY.

    (a) Civil Service Retirement and Disability System.--(1) Subsection 
(c) of section 8332 of title 5, United States Code, is amended by 
adding at the end the following:
    ``(4) If an employee or Member waives retired pay that is subject 
to a court order from which there has been effective service on the 
Secretary concerned for purposes of section 1408 of title 10, the 
military service on which the retired pay is based may be credited as 
service for purposes of this subchapter only if, in accordance with 
regulations prescribed by the Director of the Office of Personnel 
Management, the employee or Member authorizes the Director to deduct 
and withhold from the annuity payable to the employee or Member under 
this subchapter, and to pay to the former spouse covered by the court 
order, the same amount that would have been deducted and withheld from 
the employee's or Member's retired pay and paid to that former spouse 
under such section 1408.''.
    (2) Paragraph (1) of such subsection is amended by striking out 
``Except as provided in paragraph (2)'' and inserting ``Except as 
provided in paragraphs (2) and (4)''.
    (b) Federal Employees' Retirement System.--(1) Subsection (c) of 
section 8411 of title 5, United States Code, is amended by adding at 
the end the following:
    ``(5) If an employee or Member waives retired pay that is subject 
to a court order for which there has been effective service on the 
Secretary concerned for purposes of section 1408 of title 10, the 
military service on which the retired pay is based may be credited as 
service for purposes of this chapter only if, in accordance with 
regulations prescribed by the Director of the Office of Personnel 
Management, the employee or Member authorizes the Director to deduct 
and withhold from the annuity payable to the employee or Member under 
this subchapter, and to pay to the former spouse covered by the court 
order, the same amount that would have been deducted and withheld from 
the employee's or Member's retired pay and paid to that former spouse 
under such section 1408.''.
    (2) Paragraph (1) of such subsection is amended by striking out 
``Except as provided in paragraph (2) or (3)'' and inserting ``Except 
as provided in paragraphs (2), (3), and (5)''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 1997.