103D CONGRESS

2D SESSION H. R. 3345

AMENDMENT

TO

SENATE AMENDMENT
In the House of Representatives, U. S.,

March 8, 1994.

Resolved, That the House agree to the amendment of

the Senate to the bill (H.R. 3345) entitled ‘‘An Act to provide temporary authority to Government agencies relating to

voluntary separation incentive payments, and for other purposes’’, with the following

AMENDMENT:

In lieu of the matter inserted by said amendment,

insert:

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Federal Workforce

3 Restructuring Act of 1994’’.

4 SEC. 2. TRAINING.

5 (a) IN GENERAL.—Chapter 41 of title 5, United States

6 Code, is amended—

7 (1) in section 4101(4) by striking ‘‘fields’’ and

8 all that follows through the semicolon and inserting

9 ‘‘fields which will improve individual and organiza10 tional performance and assist in achieving the

11 agency’s mission and performance goals;’’;

12 (2) in section 4103—

13 (A) in subsection (a)—
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1 (i) by striking ‘‘In’’ and all that fol2 lows through ‘‘maintain’’ and inserting ‘‘In

3 order to assist in achieving an agency’s

4 mission and performance goals by improv5 ing employee and organizational perform6 ance, the head of each agency, in conformity

7 with this chapter, shall establish, operate,

8 maintain, and evaluate’’;

9 (ii) by striking ‘‘and’’ at the end of

10 paragraph (2);

11 (iii) by redesignating paragraph (3) as

12 paragraph (4); and

13 (iv) by inserting after paragraph (2)

14 the following:

15 ‘‘(3) provide that information concerning the se16 lection and assignment of employees for training and

17 the applicable training limitations and restrictions be

18 made available to employees of the agency; and’’; and

19 (B) in subsection (b)—

20 (i) in paragraph (1) by striking ‘‘de21 termines’’ and all that follows through the

22 period and inserting ‘‘determines that such

23 training would be in the interests of the

24 Government.’’;
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1 (ii) by striking paragraph (2) and re2 designating paragraph (3) as paragraph

3 (2); and

4 (iii) in subparagraph (C) of paragraph

5 (2) (as so redesignated) by striking ‘‘retain6 ing’’ and all that follows through the period

7 and inserting ‘‘such training.’’;

8 (3) in section 4105—

9 (A) in subsection (a) by striking ‘‘(a)’’; and

10 (B) by striking subsections (b) and (c);

11 (4) by repealing section 4106;

12 (5) in section 4107—

13 (A) by amending the catchline to read as

14 follows:

15 ‘‘§ 4107. Restriction on degree training’’;

16 (B) by striking subsections (a) and (b) and

17 redesignating subsections (c) and (d) as sub18 sections (a) and (b), respectively;

19 (C) by amending subsection (a) (as so redes20 ignated)—

21 (i) by striking ‘‘subsection (d)’’ and in22 serting ‘‘subsection (b)’’; and

23 (ii) by striking ‘‘by, in, or through a

24 non-Government facility’’; and
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1 (D) by amending paragraph (1) of sub2 section (b) (as so redesignated) by striking ‘‘sub3 section (c)’’ and inserting ‘‘subsection (a)’’;

4 (6) in section 4108(a) by striking ‘‘by, in, or

5 through a non-Government facility under this chap6 ter’’ and inserting ‘‘for more than a minimum period

7 prescribed by the head of the agency’’;

8 (7) in section 4113(b)—

9 (A) in the first sentence by striking ‘‘annu10 ally to the Office,’’ and inserting ‘‘to the Office,

11 at least once every 3 years, and’’; and

12 (B) by striking the matter following the

13 first sentence and inserting the following: ‘‘The

14 report shall set forth—

15 ‘‘(1) information needed to determine that train16 ing is being provided in a manner which is in com17 pliance with applicable laws intended to protect or

18 promote equal employment opportunity; and

19 ‘‘(2) information concerning the expenditures of

20 the agency in connection with training and such

21 other information as the Office considers appro22 priate.’’;

23 (8) by repealing section 4114; and

24 (9) in section 4118—
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1 (A) in subsection (a)(7) by striking ‘‘by, in,

2 and through non-Government facilities’’;

3 (B) by striking subsection (b); and

4 (C) by redesignating subsections (c) and (d)

5 as subsections (b) and (c), respectively.

6 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

7 Title 5, United States Code, is amended—

8 (1) in section 3381(e) by striking ‘‘4105(a),’’ and

9 inserting ‘‘4105,’’; and

10 (2) in the analysis for chapter 41—

11 (A) by repealing the items relating to sec12 tions 4106 and 4114; and

13 (B) by amending the item relating to sec14 tion 4107 to read as follows:

‘‘4107. Restriction on degree training.’’.

15 (c) EFFECTIVE DATE.—The amendments made by this

16 section shall become effective on the date of enactment of

17 this Act.

18 SEC. 3. VOLUNTARY SEPARATION INCENTIVES.

19 (a) DEFINITIONS.—For the purpose of this section—

20 (1) the term ‘‘agency’’ means an Executive agen21 cy (as defined by section 105 of title 5, United States

22 Code), but does not include the Department of De23 fense, the Central Intelligence Agency, or the General

24 Accounting Office; and
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1 (2) the term ‘‘employee’’ means an employee (as

2 defined by section 2105 of title 5, United States Code)

3 who is employed by an agency, is serving under an

4 appointment without time limitation, and has been

5 currently employed for a continuous period of at least

6 12 months; such term includes an individual em7 ployed by a county committee established under sec8 tion 8(b) of the Soil Conservation and Domestic Allot9 ment Act (16 U.S.C. 590h(b)), but does not include—

10 (A) a reemployed annuitant under sub11 chapter III of chapter 83 or chapter 84 of title

12 5, United States Code, or another retirement sys13 tem for employees of the Government; or

14 (B) an employee having a disability on the

15 basis of which such employee is or would be eli16 gible for disability retirement under the applica17 ble retirement system referred to in subpara18 graph (A).

19 (b) AUTHORITY.—

20 (1) IN GENERAL.—In order to avoid or minimize

21 the need for involuntary separations due to a reduc22 tion in force, reorganization, transfer of function, or

23 other similar action, and subject to paragraph (2),

24 the head of an agency may pay, or authorize the pay-
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1 ment of, voluntary separation incentive payments to

2 agency employees—

3 (A) in any component of the agency;

4 (B) in any occupation;

5 (C) in any geographic location; or

6 (D) on the basis of any combination of fac7 tors under subparagraphs (A) through (C).

8 (2) CONDITION.—

9 (A) IN GENERAL.—In order to receive an

10 incentive payment, an employee must separate

11 from service with the agency (whether by retire12 ment or resignation) before April 1, 1995.

13 (B) EXCEPTION.—An employee who does

14 not separate from service before the date specified

15 in subparagraph (A) shall be ineligible for an

16 incentive payment under this section unless—

17 (i) the agency head determines that, in

18 order to ensure the performance of the agen19 cy’s mission, it is necessary to delay such

20 employee’s separation; and

21 (ii) the employee separates after com22 pleting any additional period of service re23 quired (but not later than March 31, 1997).

24 (c) AMOUNT AND TREATMENT OF PAYMENTS.—A vol25 untary separation incentive payment—
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1 (1) shall be paid in a lump sum after the em2 ployee’s separation;

3 (2) shall be equal to the lesser of—

4 (A) an amount equal to the amount the em5 ployee would be entitled to receive under section

6 5595(c) of title 5, United States Code, if the em7 ployee were entitled to payment under such sec8 tion; or

9 (B) $25,000;

10 (3) shall not be a basis for payment, and shall

11 not be included in the computation, of any other type

12 of Government benefit;

13 (4) shall not be taken into account in determin14 ing the amount of any severance pay to which an em15 ployee may be entitled under section 5595 of title 5,

16 United States Code, based on any other separation;

17 and

18 (5) shall be paid from appropriations or funds

19 available for the payment of the basic pay of the em20 ployee.

21 (d) EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE

22 GOVERNMENT.—

23 (1) IN GENERAL.—An employee who has received

24 a voluntary separation incentive payment under this

25 section and accepts employment with the Government
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1 of the United States within 5 years after the date of

2 the separation on which the payment is based shall

3 be required to repay the entire amount of the incen4 tive payment to the agency that paid the incentive

5 payment.

6 (2) WAIVER AUTHORITY.—

7 (A) EXECUTIVE AGENCY.—If the employ8 ment is with an Executive agency (as defined by

9 section 105 of title 5, United States Code), the

10 Director of the Office of Personnel Management

11 may, at the request of the head of the agency,

12 waive the repayment if the individual involved

13 possesses unique abilities and is the only quali14 fied applicant available for the position.

15 (B) LEGISLATIVE BRANCH.—If the employ16 ment is with an entity in the legislative branch,

17 the head of the entity or the appointing official

18 may waive the repayment if the individual in19 volved possesses unique abilities and is the only

20 qualified applicant available for the position.

21 (C) JUDICIAL BRANCH.—If the employment

22 is with the judicial branch, the Director of the

23 Administrative Office of the United States

24 Courts may waive the repayment if the individ25 ual involved possesses unique abilities and is the
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1 only qualified applicant available for the

2 position.

3 (3) DEFINITION.—For purposes of paragraph (1)

4 (but not paragraph (2)), the term ‘‘employment’’ in5 cludes employment under a personal services contract

6 with the United States.

7 (e) REGULATIONS.—The Director of the Office of Per8 sonnel Management may prescribe any regulations nec9 essary for the administration of subsections (a) through (d).

10 (f) EMPLOYEES OF THE JUDICIAL BRANCH.—The Di11 rector of the Administrative Office of the United States

12 Courts may, by regulation, establish a program consistent

13 with the program established by subsections (a) through (d)

14 for individuals serving in the judicial branch.

15 SEC. 4. ADDITIONAL AGENCY CONTRIBUTIONS TO THE RE16 TIREMENT FUND.

17 (a) RELATING TO FISCAL YEARS 1994 AND 1995.—

18 (1) IN GENERAL.—In addition to any other pay19 ments which it is required to make under subchapter

20 III of chapter 83 of title 5, United States Code, an

21 agency shall remit to the Office of Personnel Manage22 ment for deposit in the Treasury of the United States

23 to the credit of the Civil Service Retirement and Dis24 ability Fund an amount equal to 9 percent of the

25 final basic pay of each employee of the agency—
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1 (A) who, on or after the date of the enact2 ment of this Act and before October 1, 1995, re3 tires under section 8336(d)(2) of such title; and

4 (B) to whom a voluntary separation incen5 tive payment has been or is to be paid by such

6 agency based on that retirement.

7 (2) DEFINITIONS.—For the purpose of this sub8 section—

9 (A) the term ‘‘final basic pay’’, with respect

10 to an employee, means the total amount of basic

11 pay which would be payable for a year of service

12 by such employee, computed using the employee’s

13 final rate of basic pay, and, if last serving on

14 other than a full-time basis, with appropriate

15 adjustment therefor; and

16 (B) the term ‘‘voluntary separation incen17 tive payment’’ means—

18 (i) a voluntary separation incentive

19 payment under section 3 (including under

20 any program established under section 3(f));

21 and

22 (ii) any separation pay under section

23 5597 of title 5, United States Code, or sec24 tion 2 of the Central Intelligence Agency
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1 Voluntary Separation Pay Act (Public Law

2 103–36; 107 Stat. 104).

3 (b) RELATING TO FISCAL YEARS 1995 THROUGH

4 1998.—

5 (1) IN GENERAL.—In addition to any other pay6 ments which it is required to make under subchapter

7 III of chapter 83 or chapter 84 of title 5, United

8 States Code, in fiscal years 1995, 1996, 1997, and

9 1998 (and in addition to any amounts required

10 under subsection (a)), each agency shall, before the

11 end of each such fiscal year, remit to the Office of

12 Personnel Management for deposit in the Treasury of

13 the United States to the credit of the Civil Service Re14 tirement and Disability Fund an amount equal to the

15 product of—

16 (A) the number of employees of such agency

17 who, as of March 31st of such fiscal year, are

18 subject to subchapter III of chapter 83 or chapter

19 84 of such title; multiplied by

20 (B) $80.

21 (2) DEFINITION.—For the purpose of this sub22 section, the term ‘‘agency’’ means an Executive agen23 cy (as defined by section 105 of title 5, United States

24 Code), but does not include the General Accounting

25 Office.
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1 (c) REGULATIONS.—The Director of the Office of Per2 sonnel Management may prescribe any regulations nec3 essary to carry out this section.

4 SEC. 5. REDUCTION OF FEDERAL FULL-TIME EQUIVALENT

5 POSITIONS.

6 (a) DEFINITION.—For the purpose of this section, the

7 term ‘‘agency’’ means an Executive agency (as defined by

8 section 105 of title 5, United States Code), but does not in9 clude the General Accounting Office.

10 (b) LIMITATIONS ON FULL-TIME EQUIVALENT POSI11 TIONS.—The President, through the Office of Management

12 and Budget (in consultation with the Office of Personnel

13 Management), shall ensure that the total number of full14 time equivalent positions in all agencies shall not exceed—

15 (1) 2,084,600 during fiscal year 1994;

16 (2) 2,043,300 during fiscal year 1995;

17 (3) 2,003,300 during fiscal year 1996;

18 (4) 1,963,300 during fiscal year 1997;

19 (5) 1,922,300 during fiscal year 1998; and

20 (6) 1,882,300 during fiscal year 1999.

21 (c) MONITORING AND NOTIFICATION.—The Office of

22 Management and Budget, after consultation with the Office

23 of Personnel Management, shall—

24 (1) continuously monitor all agencies and make

25 a determination on the first date of each quarter of
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1 each applicable fiscal year of whether the require2 ments under subsection (b) are met; and

3 (2) notify the President and the Congress on the

4 first date of each quarter of each applicable fiscal

5 year of any determination that any requirement of

6 subsection (b) is not met.

7 (d) COMPLIANCE.—If, at any time during a fiscal

8 year, the Office of Management and Budget notifies the

9 President and the Congress that any requirement under

10 subsection (b) is not met, no agency may hire any employee

11 for any position in such agency until the Office of Manage12 ment and Budget notifies the President and the Congress

13 that the total number of full-time equivalent positions for

14 all agencies equals or is less than the applicable number

15 required under subsection (b).

16 (e) WAIVER.—

17 (1) EMERGENCIES.—Any provision of this sec18 tion may be waived upon a determination by the

19 President that—

20 (A) the existence of a state of war or other

21 national security concern so requires; or

22 (B) the existence of an extraordinary emer23 gency threatening life, health, safety, property, or

24 the environment so requires.

25 (2) AGENCY EFFICIENCY OR CRITICAL MISSION.—
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1 (A) Subsection (d) may be waived, in the

2 case of a particular position or category of posi3 tions in an agency, upon a determination of the

4 President that the efficiency of the agency or the

5 performance of a critical agency mission so re6 quires.

7 (B) Whenever the President grants a waiver

8 pursuant to subparagraph (A), the President

9 shall take all necessary actions to ensure that the

10 overall limitations set forth in subsection (b) are

11 not exceeded.

12 (f) EMPLOYMENT BACKFILL PREVENTION.—

13 (1) IN GENERAL.—The total number of funded

14 employee positions in all agencies (excluding the De15 partment of Defense and the Central Intelligence

16 Agency) shall be reduced by one position for each va17 cancy created by the separation of any employee who

18 has received, or is due to receive, a voluntary separa19 tion incentive payment under section 3 (a)–(e). For

20 purposes of this subsection, positions and vacancies

21 shall be counted on a full-time-equivalent basis.

22 (2) RELATED RESTRICTION.—No funds budgeted

23 for and appropriated by any Act for salaries or ex24 penses of positions eliminated under this subsection
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1 may be used for any purpose other than authorized

2 separation costs.

3 (g) LIMITATION ON PROCUREMENT OF SERVICE CON4 TRACTS.—The President shall take appropriate action to

5 ensure that there is no increase in the procurement of serv6 ice contracts by reason of the enactment of this Act, except

7 in cases in which a cost comparison demonstrates such con8 tracts would be to the financial advantage of the Federal

9 Government.

10 SEC. 6. SUBSEQUENT EMPLOYMENT AND REPAYMENT OF

11 SEPARATION PAYMENT.

12 (a) DEFENSE AGENCY SEPARATION PAY.—Section

13 5597 of title 5, United States Code, is amended by adding

14 at the end the following:

15 ‘‘(g)(1) An employee who receives separation pay

16 under this section on the basis of a separation occurring

17 on or after the date of the enactment of the Federal

18 Workforce Restructuring Act of 1994 and accepts employ19 ment with the Government of the United States within 5

20 years after the date of the separation on which payment

21 of the separation pay is based shall be required to repay

22 the entire amount of the separation pay to the defense agen23 cy that paid the separation pay.

24 ‘‘(2) If the employment is with an Executive agency,

25 the Director of the Office of Personnel Management may,
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1 at the request of the head of the agency, waive the repay2 ment if the individual involved possesses unique abilities

3 and is the only qualified applicant available for the posi4 tion.

5 ‘‘(3) If the employment is with an entity in the legisla6 tive branch, the head of the entity or the appointing official

7 may waive the repayment if the individual involved pos8 sesses unique abilities and is the only qualified applicant

9 available for the position.

10 ‘‘(4) If the employment is with the judicial branch, the

11 Director of the Administrative Office of the United States

12 Courts may waive the repayment if the individual involved

13 possesses unique abilities and is the only qualified appli14 cant available for the position.’’.

15 (b) CENTRAL INTELLIGENCE AGENCY SEPARATION

16 PAYMENT.—Section 2(b) of the Central Intelligence Agency

17 Voluntary Separation Pay Act (Public Law 103–36; 107

18 Stat. 104) is amended by adding at the end the following:

19 ‘‘An employee who receives separation pay under this sec20 tion on the basis of a separation occurring on or after the

21 date of the enactment of the Federal Workforce Restructur22 ing Act of 1994 and accepts employment with the Govern23 ment of the United States within 5 years after the date of

24 the separation on which payment of the separation pay is

25 based shall be required to repay the entire amount of the
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1 separation pay to the Central Intelligence Agency. If the

2 employment is with an Executive agency (as defined by sec3 tion 105 of title 5, United States Code), the Director of the

4 Office of Personnel Management may, at the request of the

5 head of the agency, waive the repayment if the individual

6 involved possesses unique abilities and is the only qualified

7 applicant available for the position. If the employment is

8 with an entity in the legislative branch, the head of the en9 tity or the appointing official may waive the repayment

10 if the individual involved possesses unique abilities and is

11 the only qualified applicant available for the position. If

12 the employment is with the judicial branch, the Director

13 of the Administrative Office of the United States Courts

14 may waive the repayment if the individual involved pos15 sesses unique abilities and is the only qualified applicant

16 available for the position.’’.

17 SEC. 7. STANDARDIZATION OF WITHDRAWAL OPTIONS FOR

18 THRIFT SAVINGS PLAN PARTICIPANTS.

19 (a) PARTICIPATION IN THE THRIFT SAVINGS PLAN.—

20 Section 8351(b) of title 5, United States Code, is amend21 ed—

22 (1) by amending paragraph (4) to read as fol23 lows:

24 ‘‘(4) Section 8433(b) of this title applies to any em25 ployee or Member who elects to make contributions to the
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1 Thrift Savings Fund under subsection (a) of this section

2 and separates from Government employment.’’;

3 (2) by striking paragraphs (5), (6), and (8);

4 (3) by redesignating paragraphs (7), (9), and

5 (10) as paragraphs (5), (6), and (7), respectively;

6 (4) in paragraph (5)(C) (as so redesignated by

7 paragraph (3) of this subsection) by striking ‘‘or

8 former spouse’’ each place it appears;

9 (5) by amending paragraph (6) (as so redesig10 nated by paragraph (3) of this subsection) to read as

11 follows:

12 ‘‘(6) Notwithstanding paragraph (4), if an employee

13 or Member separates from Government employment and

14 such employee’s or Member’s nonforfeitable account balance

15 is $3,500 or less, the Executive Director shall pay the non16 forfeitable account balance to the participant in a single

17 payment unless the employee or Member elects, at such time

18 and otherwise in such manner as the Executive Director

19 prescribes, one of the options available under subsection

20 (b).’’; and

21 (6) in paragraph (7) (as so redesignated by

22 paragraph (3) of this subsection) by striking

23 ‘‘nonforfeiture’’ and inserting ‘‘nonforfeitable’’.

24 (b) BENEFITS AND ELECTION OF BENEFITS.—Section

25 8433 of title 5, United States Code, is amended—
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1 (1) in subsection (b) by striking the matter before

2 paragraph (1) and inserting the following:

3 ‘‘(b) Subject to section 8435 of this title, any employee

4 or Member who separates from Government employment is

5 entitled and may elect—’’;

6 (2) by striking subsections (c) and (d) and redes7 ignating subsections (e) through (i) as subsections (c)

8 through (g), respectively;

9 (3) in subsection (c)(1) (as so redesignated by

10 paragraph (2) of this subsection) by striking ‘‘or

11 (c)(4) or required under subsection (d) directly to an

12 eligible retirement plan or plans (as defined in sec13 tion 402(a)(5)(E) of the Internal Revenue Code of

14 1954)’’ and inserting ‘‘directly to an eligible retire15 ment plan or plans (as defined in section 402(c)(8)

16 of the Internal Revenue Code of 1986)’’;

17 (4) in subsection (d)(2) (as so redesignated by

18 paragraph (2) of this subsection) by striking ‘‘or

19 (c)(2)’’; and

20 (5) in subsection (f) (as so redesignated by para21 graph (2) of this subsection)—

22 (A) by striking paragraph (1) and redesig23 nating paragraphs (2) and (3) as paragraphs

24 (1) and (2), respectively; and
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1 (B) in paragraph (1) (as so redesignated by

2 subparagraph (A) of this paragraph)—

3 (i) by striking ‘‘Notwithstanding sub4 sections (b) and (c), if an employee or Mem5 ber separates from Government employment

6 under circumstances making such employee

7 or Member eligible to make an election

8 under either of those subsections, and such

9 employee’s or Member’s’’ and inserting

10 ‘‘Notwithstanding subsection (b), if an em11 ployee or Member separates from Govern12 ment employment, and such employee’s or

13 Member’s’’; and

14 (ii) by striking ‘‘or (c), as applicable’’;

15 and

16 (C) in paragraph (2) (as so redesignated by

17 subparagraph (A) of this paragraph) by striking

18 ‘‘paragraphs (1) and (2)’’ and inserting ‘‘para19 graph (1)’’.

20 (c) ANNUITIES: METHODS OF PAYMENT; ELECTION;

21 PURCHASE.—Section 8434(c) of title 5, United States Code,

22 is amended to read as follows:

23 ‘‘(c) Notwithstanding the elimination of a method of

24 payment by the Board, an employee, Member, former em25 ployee, or former Member may elect the eliminated method
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1 if the elimination of such method becomes effective less than

2 5 years before the date on which that individual’s annuity

3 commences.’’.

4 (d) PROTECTIONS FOR SPOUSES AND FORMER

5 SPOUSES.—Section 8435 of title 5, United States Code, is

6 amended—

7 (1) in subsection (a)(1)(A) by striking ‘‘sub8 section (b)(3), (b)(4), (c)(3), or (c)(4) of section 8433

9 of this title or change an election previously made

10 under subsection (b)(1), (b)(2), (c)(1), or (c)(2)’’ and

11 inserting ‘‘subsection (b)(3) or (b)(4) of section 8433

12 of this title or change an election previously made

13 under subsection (b)(1) or (b)(2)’’;

14 (2) by striking subsection (b);

15 (3) by redesignating subsections (c) through (i)

16 as subsections (b) through (h), respectively;

17 (4) in subsection (b) (as so redesignated by para18 graph (3) of this subsection) by amending paragraph

19 (2) to read as follows:

20 ‘‘(2) Paragraph (1) shall not apply if—

21 ‘‘(A) a joint waiver of such method is made,

22 in writing, by the employee or Member and the

23 spouse; or

24 ‘‘(B) the employee or Member waives such

25 method, in writing, after establishing to the sat-
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1 isfaction of the Executive Director that cir2 cumstances described under subsection (a)(2) (A)

3 or (B) make the requirement of a joint waiver

4 inappropriate.’’; and

5 (5) in subsection (c)(1) (as so redesignated by

6 paragraph (3) of this subsection) by striking ‘‘and a

7 transfer may not be made under section 8433(d) of

8 this title’’.

9 (e) JUSTICES AND JUDGES.—Section 8440a(b) of title

10 5, United States Code, is amended—

11 (1) in paragraph (5) by striking ‘‘Section

12 8433(d)’’ and inserting ‘‘Section 8433(b)’’; and

13 (2) by striking paragraphs (7) and (8) and in14 serting the following:

15 ‘‘(7) Notwithstanding paragraphs (4) and (5), if any

16 justice or judge retires under subsection (a) or (b) of section

17 371 or section 372(a) of title 28, or resigns without having

18 met the age and service requirements set forth under section

19 371(c) of title 28, and such justice’s or judge’s nonforfeitable

20 account balance is $3,500 or less, the Executive Director

21 shall pay the nonforfeitable account balance to the partici22 pant in a single payment unless the justice or judge elects,

23 at such time and otherwise in such manner as the Executive

24 Director prescribes, one of the options available under sec25 tion 8433(b).’’.
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1 (f) BANKRUPTCY JUDGES AND MAGISTRATES.—Sec2 tion 8440b of title 5, United States Code, is amended—

3 (1) in subsection (b)(4) by amending subpara4 graph (B) to read as follows:

5 ‘‘(B) Section 8433(b) of this title applies to any bank6 ruptcy judge or magistrate who elects to make contributions

7 to the Thrift Savings Fund under subsection (a) of this sec8 tion and who retires before attaining age 65 but is entitled,

9 upon attaining age 65, to an annuity under section 377

10 of title 28 or section 2(c) of the Retirement and Survivors

11 Annuities for Bankruptcy Judges and Magistrates Act of

12 1988.’’;

13 (2) in subsection (b)(4)(C) by striking ‘‘Section

14 8433(d)’’ and inserting ‘‘Section 8433(b)’’;

15 (3) in subsection (b)(5) by striking ‘‘retirement

16 under section 377 of title 28 is’’ and inserting ‘‘any

17 of the actions described under paragraph (4) (A), (B),

18 or (C) shall be considered’’;

19 (4) in subsection (b) by striking paragraph (8)

20 and redesignating paragraph (9) as paragraph (8);

21 and

22 (5) in paragraph (8) of subsection (b) (as so re23 designated by paragraph (4) of this subsection)—

24 (A) by striking ‘‘Notwithstanding subpara25 graphs (A) and (B) of paragraph (4), if any
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1 bankruptcy judge or magistrate retires under cir2 cumstances making such bankruptcy judge or

3 magistrate eligible to make an election under

4 subsection (b) or (c)’’ and inserting ‘‘Notwith5 standing paragraph (4), if any bankruptcy judge

6 or magistrate retires under circumstances mak7 ing such bankruptcy judge or magistrate eligible

8 to make an election under subsection (b)’’; and

9 (B) by striking ‘‘and (c), as applicable’’.

10 (g) CLAIMS COURT JUDGES.—Section 8440c of title 5,

11 United States Code, is amended—

12 (1) in subsection (b)(4)(B) by striking ‘‘Section

13 8433(d)’’ and inserting ‘‘Section 8433(b)’’;

14 (2) in subsection (b)(5) by striking ‘‘retirement

15 under section 178 of title 28 is’’ and inserting ‘‘any

16 of the actions described in paragraph (4) (A) or (B)

17 shall be considered’’;

18 (3) in subsection (b) by striking paragraph (8)

19 and redesignating paragraph (9) as paragraph (8);

20 and

21 (4) in paragraph (8) (as so redesignated by

22 paragraph (3) of this subsection) by striking ‘‘Not23 withstanding paragraph (4)(A)’’ and inserting ‘‘Not24 withstanding paragraph (4)’’.
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1 (h) JUDGES OF THE UNITED STATES COURT OF VET2 ERANS APPEALS.—Section 8440d(b)(5) of title 5, United

3 States Code, is amended by striking ‘‘A transfer shall be

4 made as provided in section 8433(d) of this title’’ and in5 serting ‘‘Section 8433(b) of this title applies’’.

6 (i) TECHNICAL AND CONFORMING AMENDMENTS.—

7 Title 5, United States Code, is amended—

8 (1) in section 8351(b)(5)(B) (as so redesignated

9 by subsection (a)(3) of this section) by striking ‘‘sec10 tion 8433(i)’’ and inserting ‘‘section 8433(g)’’;

11 (2) in section 8351(b)(5)(D) (as so redesignated

12 by subsection (a)(3) of this section) by striking ‘‘sec13 tion 8433(i)’’ and inserting ‘‘section 8433(g)’’;

14 (3) in section 8433(b)(4) by striking ‘‘subsection

15 (e)’’ and inserting ‘‘subsection (c)’’;

16 (4) in section 8433(d)(1) (as so redesignated by

17 subsection (b)(2) of this section) by striking ‘‘(d) of

18 section 8435’’ and inserting ‘‘(c) of section 8435’’;

19 (5) in section 8433(d)(2) (as so redesignated by

20 subsection (b)(2) of this section) by striking ‘‘section

21 8435(d)’’ and inserting ‘‘section 8435(c)’’;

22 (6) in section 8433(e) (as so redesignated by sub23 section (b)(2) of this section) by striking ‘‘section

24 8435(d)(2)’’ and inserting ‘‘section 8435(c)(2)’’;
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1 (7) in section 8433(g)(5) (as so redesignated by

2 subsection (b)(2) of this section) by striking ‘‘section

3 8435(f)’’ and inserting ‘‘section 8435(e)’’;

4 (8) in section 8434(b) by striking ‘‘section

5 8435(c)’’ and inserting ‘‘section 8435(b)’’;

6 (9) in section 8435(a)(1)(B) by striking ‘‘sub7 section (c)’’ and inserting ‘‘subsection (b)’’;

8 (10) in section 8435(d)(1)(B) (as so redesignated

9 by subsection (d)(3) of this section) by striking ‘‘sub10 section (d)(2)’’ and inserting ‘‘subsection (c)(2)’’;

11 (11) in section 8435(d)(3)(A) (as so redesignated

12 by subsection (d)(3) of this section) by striking ‘‘sub13 section (c)(1)’’ and inserting ‘‘subsection (b)(1)’’;

14 (12) in section 8435(d)(6) (as so redesignated by

15 subsection (d)(3) of this section) by striking ‘‘or

16 (c)(2)’’ and inserting ‘‘or (b)(2)’’;

17 (13) in section 8435(e)(1)(A) (as so redesignated

18 by subsection (d)(3) of this section) by striking ‘‘sec19 tion 8433(i)’’ and inserting ‘‘section 8433(g)’’;

20 (14) in section 8435(e)(2) (as so redesignated by

21 subsection (d)(3) of this section) by striking ‘‘section

22 8433(i) of this title shall not be approved if approval

23 would have the result described in subsection (d)(1)’’

24 and inserting ‘‘section 8433(g) of this title shall not
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1 be approved if approval would have the result de2 scribed under subsection (c)(1)’’;

3 (15) in section 8435(g) (as so redesignated by

4 subsection (d)(3) of this section) by striking ‘‘section

5 8433(i)’’ and inserting ‘‘section 8433(g)’’;

6 (16) in section 8437(c)(5) by striking ‘‘section

7 8433(i)’’ and inserting ‘‘section 8433(g)’’; and

8 (17) in section 8440a(b)(6) by striking ‘‘section

9 8351(b)(7)’’ and inserting ‘‘section 8351(b)(5)’’.

10 (j) EFFECTIVE DATE.—This section shall take effect 1

11 year after the date of the enactment of this Act or on such

12 earlier date as the Executive Director of the Federal Retire13 ment Thrift Investment Board shall provide in regulation.

14 SEC. 8. AMENDMENTS TO ALASKA RAILROAD TRANSFER

15 ACT OF 1982 REGARDING FORMER FEDERAL

16 EMPLOYEES.

17 (a) APPLICABILITY OF VOLUNTARY SEPARATION IN18 CENTIVES TO CERTAIN FORMER FEDERAL EMPLOYEES.—

19 Section 607(a) of the Alaska Railroad Transfer Act of 1982

20 (45 U.S.C. 1206(a)) is amended by adding at the end the

21 following:

22 ‘‘(4)(A) The State-owned railroad shall be in23 cluded in the definition of ‘agency’ for purposes of

24 section 3 (a), (b), (c), and (e) of the Federal

25 Workforce Restructuring Act of 1994 and may elect to
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1 participate in the voluntary separation incentive pro2 gram established under such Act. Any employee of the

3 State-owned railroad who meets the qualifications as

4 described under the first sentence of paragraph (1)

5 shall be deemed an employee under such Act.

6 ‘‘(B) An employee who has received a voluntary

7 separation incentive payment under this paragraph

8 and accepts employment with the State-owned rail9 road within 5 years after the date of separation on

10 which payment of the incentive is based shall be re11 quired to repay the entire amount of the incentive

12 payment unless the head of the State-owned railroad

13 determines that the individual involved possesses

14 unique abilities and is the only qualified applicant

15 available for the position.’’.

16 (b) LIFE AND HEALTH INSURANCE BENEFITS.—Sec17 tion 607 of the Alaska Railroad Transfer Act of 1982 (45

18 U.S.C. 1206) is amended by striking subsection (e) and in19 serting the following:

20 ‘‘(e)(1) Any person described under the provisions of

21 paragraph (2) may elect life insurance coverage under

22 chapter 87 of title 5, United States Code, and enroll in a

23 health benefits plan under chapter 89 of title 5, United

24 States Code, in accordance with the provisions of this sub25 section.
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1 ‘‘(2) The provisions of paragraph (1) shall apply to

2 any person who—

3 ‘‘(A) on the date of the enactment of the Federal

4 Workforce Restructuring Act of 1994, is an employee

5 of the State-owned railroad;

6 ‘‘(B) has 20 years or more of service (in the civil

7 service as a Federal employee or as an employee of

8 the State-owned railroad, combined) on the date of re9 tirement from the State-owned railroad; and

10 ‘‘(C)(i) was covered under a life insurance policy

11 pursuant to chapter 87 of title 5, United States Code,

12 on January 4, 1985, for the purpose of electing life

13 insurance coverage under the provisions of paragraph

14 (1); or

15 ‘‘(ii) was enrolled in a health benefits plan pur16 suant to chapter 89 of title 5, United States Code, on

17 January 4, 1985, for the purpose of enrolling in a

18 health benefits plan under the provisions of para19 graph (1).

20 ‘‘(3) For purposes of this section, any person described

21 under the provisions of paragraph (2) shall be deemed to

22 have been covered under a life insurance policy under chap23 ter 87 of title 5, United States Code, and to have been en24 rolled in a health benefits plan under chapter 89 of title

25 5, United States Code, during the period beginning on Jan-
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1 uary 5, 1985, through the date of retirement of any such

2 person.

3 ‘‘(4) The provisions of paragraph (1) shall not apply

4 to any person described under paragraph (2) until the date

5 such person retires from the State-owned railroad.’’.

Attest:

Clerk.

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