103D CONGRESS

2D SESSION H. R. 3345

AMENDMENT
In the Senate of the United States,

February 11 (legislative day, January 25), 1994.

Resolved, That the bill from the House of Representatives (H.R. 3345) entitled ‘‘An Act to provide temporary authority to Government agencies relating to voluntary separation incentive payments, and for other purposes’’, do pass

with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SEC. 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Federal Workforce Re3 structuring Act of 1994’’.

4 SEC. 2. EMPLOYEE TRAINING.

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

6 Code, is amended—

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

8 and all that follows through the semicolon and insert9 ing in lieu thereof ‘‘fields which will improve individ10 ual and organizational performance and assist in

11 achieving the agency’s mission and performance

12 goals;’’;

13 (2) in section 4103—

14 (A) in subsection (a) by striking out ‘‘In’’

15 and all that follows through ‘‘proficiency’’ and
2

HR 3345 EAS

1 inserting in lieu thereof ‘‘In order to assist in

2 achieving an agency’s mission and performance

3 goals by improving employee and organizational

4 performance’’; and

5 (B) in subsection (b)—

6 (i) in paragraph (1) by striking out

7 ‘‘determines’’ and all that follows through

8 the period and inserting in lieu thereof ‘‘de9 termines that such training would be in the

10 interests of the Government.’’;

11 (ii) by striking out paragraph (2) and

12 redesignating paragraph (3) as paragraph

13 (2); and

14 (iii) in subparagraph (C) of paragraph

15 (2) (as redesignated under clause (ii) of this

16 subparagraph) by striking out ‘‘retaining’’

17 and all that follows through the period and

18 inserting in lieu thereof ‘‘such training.’’;

19 (3) in section 4105—

20 (A) in subsection (a) by striking out ‘‘(a)’’;

21 and

22 (B) by striking out subsections (b) and (c);

23 (4) by repealing section 4106;

24 (5) in section 4107—
3

HR 3345 EAS

1 (A) by amending the section heading to

2 read as follows:

3 ‘‘§ 4107. Restriction on degree training’’;

4 (B) by striking out subsections (a) and (b)

5 and redesignating subsections (c) and (d) as sub6 sections (a) and (b), respectively;

7 (C) by amending subsection (a) (as redesig8 nated under subparagraph (B) of this para9 graph)—

10 (i) by striking out ‘‘subsection (d)’’

11 and inserting in lieu thereof ‘‘subsection

12 (b)’’; and

13 (ii) by striking out ‘‘by, in, or through

14 a non-Government facility’’; and

15 (D) by amending paragraph (1) of sub16 section (b) (as redesignated under subparagraph

17 (B) of this paragraph) by striking out ‘‘sub18 section (c)’’ and inserting in lieu thereof ‘‘sub19 section (a)’’;

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

21 through a non-Government facility under this chap22 ter’’ and inserting in lieu thereof ‘‘for more than a

23 minimum period prescribed by the head of the agen24 cy’’;
4

HR 3345 EAS

1 (7) in section 4113(b) by striking out all that

2 follows the first sentence;

3 (8) by repealing section 4114; and

4 (9) in section 4118—

5 (A) in subsection (a)(7) by striking out ‘‘by,

6 in, and through non-Government facilities’’;

7 (B) by striking out subsection (b); and

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

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

10 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

11 The table of sections for chapter 41 of title 5, United States

12 Code, is amended—

13 (1) by striking out the items relating to sections

14 4106 and 4114; and

15 (2) by amending the item relating to section

16 4107 to read as follows:

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

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

18 section shall take effect on the date of enactment of this Act.

19 SEC. 3. VOLUNTARY SEPARATION INCENTIVES.

20 (a) DEFINITIONS.—For purposes of this section, the

21 term—

22 (1) ‘‘agency’’ means an Executive agency, as de23 fined under section 105 of title 5, United States Code,

24 but does not include the Department of Defense, the
5

HR 3345 EAS

1 Central Intelligence Agency, or the General Account2 ing Office; and

3 (2) ‘‘employee’’ means an employee, as defined

4 under section 2105 of title 5, United States Code, of

5 an agency, serving under an appointment without

6 time limitation, who has been currently employed for

7 a continuous period of at least 12 months, including

8 an individual employed by a county committee estab9 lished under section 8(b) of the Soil Conservation and

10 Domestic Allotment Act (16 U.S.C. 590h(b)), but does

11 not include—

12 (A) a reemployed annuitant under sub13 chapter III of chapter 83 or chapter 84 of title

14 5, United States Code, or another retirement sys15 tem for employees of the Government; or

16 (B) an employee having a disability on the

17 basis of which such employee is or would be eli18 gible for disability retirement under the applica19 ble retirement system referred to in subpara20 graph (A).

21 (b) AUTHORITY TO MAKE PAYMENT.—(1) In order to

22 assist in the restructuring of the Federal workforce while

23 minimizing involuntary separations, the head of an agency

24 may pay, or authorize the payment of, a voluntary separa25 tion incentive payment to employees—
6

HR 3345 EAS

1 (A) in any component of the agency;

2 (B) in any occupation;

3 (C) in any geographic location; or

4 (D) on the basis of any combination of the fac5 tors described under subparagraphs (A) through (C).

6 (2) In order to receive an incentive payment under

7 paragraph (1), an employee shall separate from service with

8 the agency (whether by retirement or resignation) during

9 the 90-day period described under paragraph (3).

10 (3) The head of an agency shall designate a continuous

11 90-day period for purposes of separation under this sub12 section for such agency or any component thereof. Such 90-

13 day period shall begin no earlier than the date of the enact14 ment of this Act and shall end no later than March 31,

15 1995.

16 (4) Notwithstanding the provisions of paragraphs (2)

17 and (3), an employee may receive an incentive payment

18 under this section and delay a separation from service if—

19 (A) the agency head determines that it is nec20 essary to delay such employee’s separation from serv21 ice in order to ensure the performance of the agency’s

22 mission; and

23 (B) no later than 2 years after the date of the

24 last day of the 90-day period designated under para-
7

HR 3345 EAS

1 graph (3), such employee separates from service in the

2 agency.

3 (c) VOLUNTARY SEPARATION INCENTIVE PAYMENT.—

4 A voluntary separation incentive payment—

5 (1) shall be paid in a lump sum after the em6 ployee’s separation;

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

8 (A) an amount equal to the amount the em9 ployee would be entitled to receive under section

10 5595(c) of title 5, United States Code, if the em11 ployee were entitled to payment under such sec12 tion; or

13 (B) $25,000;

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

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

16 of Government benefit;

17 (4) shall not be taken into account in determin18 ing the amount of any severance pay to which an em19 ployee may be entitled under section 5595 of title 5,

20 United States Code, based on any other separation;

21 and

22 (5) shall be paid from appropriations or funds

23 available for the payment of the basic pay of the em24 ployee.
8

HR 3345 EAS

1 (d) SUBSEQUENT EMPLOYMENT AND REPAYMENT OF

2 INCENTIVE PAYMENT.—(1) An employee who has received

3 a voluntary separation incentive payment under this sec4 tion and accepts employment with the Government of the

5 United States within 5 years of the date of the separation

6 on which payment of the incentive is based shall be required

7 to repay the entire amount of the incentive payment to the

8 agency that paid the incentive payment.

9 (2) If the employment is with an Executive agency (as

10 defined under section 105 of title 5, United States Code),

11 the Director of the Office of Personnel Management may,

12 at the request of the head of the agency, waive the repay13 ment if the employment is in a position for which there

14 is exceptional difficulty in recruiting a qualified employee.

15 (3) If the employment is with an entity in the legisla16 tive branch, the head of the entity or the appointing official

17 may waive the repayment if the employment is in a posi18 tion for which there is exceptional difficulty in recruiting

19 a qualified employee.

20 (4) If the employment is with the judicial branch, the

21 Director of the Administrative Office of the United States

22 Courts may waive the repayment if the employment is in

23 a position for which there is exceptional difficulty in re24 cruiting a qualified employee.
9

HR 3345 EAS

1 (e) REGULATIONS.—The Director of the Office of Per2 sonnel Management may prescribe any regulations nec3 essary for the administration of this section.

4 (f) JUDICIAL BRANCH PROGRAM.—The Director of the

5 Administrative Office of the United States Courts may, by

6 regulation, establish a program consistent with the program

7 established by subsections (a) through (d) of this section for

8 employees of the judicial branch.

9 (g) REDUCTION OF FULL-TIME EQUIVALENT POSI10 TIONS.—(1) The President or his designee shall take such

11 action as he determines necessary to ensure that, no later

12 than September 30, 1995, employment in the executive

13 branch is reduced by at least 1 full-time equivalent position

14 for each voluntary separation incentive payment paid

15 under this section.

16 (2) No later than December 1, 1995, the President or

17 his designee shall report to the Congress on the implementa18 tion of this subsection.

19 (h) LIMITATION ON PROCUREMENT OF SERVICE CON20 TRACTS.—The President shall take appropriate action to

21 ensure that there is no increase in the procurement of serv22 ice contracts by reason of the enactment of this section ex23 cept in cases in which a cost comparison demonstrates such

24 contracts would be to the financial advantage of the Federal

25 Government.
10

HR 3345 EAS

1 SEC. 4. SUBSEQUENT EMPLOYMENT AND REPAYMENT OF

2 SEPARATION PAYMENT.

3 (a) DEFENSE AGENCY SEPARATION PAY.—Section

4 5597 of title 5, United States Code, is amended by adding

5 at the end thereof the following new subsection:

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

7 under this section on the basis of a separation occurring

8 on or after the date of enactment of the Federal Workforce

9 Restructuring Act of 1994 and accepts employment with the

10 Government of the United States within 5 years of the date

11 of the separation on which payment of the separation pay

12 is based shall be required to repay the entire amount of

13 the separation pay to the defense agency that paid the sepa14 ration pay.

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

16 (as defined under section 105 of title 5, United States Code),

17 the Director of the Office of Personnel Management may,

18 at the request of the head of the agency, waive the repay19 ment if the employment is in a position for which there

20 is exceptional difficulty in recruiting a qualified employee.

21 ‘‘(3) If the employment is with an entity in the legisla22 tive branch, the head of the entity or the appointing official

23 may waive the repayment if the employment is in a posi24 tion for which there is exceptional difficulty in recruiting

25 a qualified employee.
11

HR 3345 EAS

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

2 Director of the Administrative Office of the United States

3 Courts may waive the repayment if the employment is in

4 a position for which there is exceptional difficulty in re5 cruiting a qualified employee.’’.

6 (b) CENTRAL INTELLIGENCE AGENCY SEPARATION

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

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

9 Stat. 104) is amended by adding at the end thereof the fol10 lowing: ‘‘An employee who receives separation pay under

11 this section on the basis of a separation occurring on or

12 after the date of the enactment of the Federal Workforce Re13 structuring Act of 1994 and accepts employment with the

14 Government of the United States within 5 years of the date

15 of the separation on which payment of the separation pay

16 is based shall be required to repay the entire amount of

17 the separation pay to the Central Intelligence Agency. If

18 the employment is with an Executive agency (as defined

19 under section 105 of title 5, United States Code), the Direc20 tor of the Office of Personnel Management may, at the re21 quest of the head of the agency, waive the repayment if the

22 employment is in a position for which there is exceptional

23 difficulty in recruiting a qualified employee. If the employ24 ment is with an entity in the legislative branch, the head

25 of the entity or the appointing official may waive the re-
12

HR 3345 EAS

1 payment if the employment is in a position for which there

2 is exceptional difficulty in recruiting a qualified employee.

3 If the employment is with the judicial branch, the Director

4 of the Administrative Office of the United States Courts

5 may waive the repayment if the employment is in a posi6 tion for which there is exceptional difficulty in recruiting

7 a qualified employee.’’.

8 SEC. 5. FUNDING OF EARLY RETIREMENTS IN CIVIL SERV9 ICE RETIREMENT SYSTEM.

10 (a) IN GENERAL.—Section 8334 of title 5, United

11 States Code, is amended by adding at the end thereof the

12 following new subsections:

13 ‘‘(l) In addition to any other payments required by

14 this subchapter, an agency shall remit to the Office for de15 posit in the Treasury of the United States to the credit of

16 the Fund an amount equal to 9 percent of the final rate

17 of basic pay of each employee of the agency who retires

18 under section 8336(d).

19 ‘‘(m) In addition to any other payments required by

20 law, an agency shall remit to the Office of Personnel Man21 agement for deposit in the Treasury of the United States

22 to the credit of the Civil Service Retirement and Disability

23 Fund an amount equal to 17 percent of the final basic pay

24 of each employee of the agency who receives a voluntary

25 separation incentive payment under this section and who
13

HR 3345 EAS

1 is eligible, upon separation, for an immediate annuity

2 under subchapter III of chapter 83 or chapter 84 of title

3 5, United States Code.’’.

4 (b) EFFECTIVE DATE.—The amendment made by this

5 section shall apply with respect to retirements occurring on

6 or after the date of the enactment of this Act.

7 SEC. 6. REDUCTION OF FEDERAL FULL-TIME EQUIVALENT

8 POSITIONS.

9 (a) DEFINITION.—For purposes of this section, the

10 term ‘‘agency’’ means an Executive agency as defined under

11 section 105 of title 5, United States Code, but does not in12 clude the General Accounting Office.

13 (b) LIMITATIONS ON FULL-TIME EQUIVALENT POSI14 TIONS.—The President, through the Office of Management

15 and Budget (in consultation with the Office of Personnel

16 Management), shall ensure that the total number of full17 time equivalent positions in all agencies shall not exceed—

18 (1) 2,095,182 during fiscal year 1994;

19 (2) 2,044,100 during fiscal year 1995;

20 (3) 2,003,846 during fiscal year 1996;

21 (4) 1,963,593 during fiscal year 1997;

22 (5) 1,923,339 during fiscal year 1998; and

23 (6) 1,883,086 during fiscal year 1999.
14

HR 3345 EAS

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

2 Management and Budget, after consultation with the Office

3 of Personnel Management, shall—

4 (1) continuously monitor all agencies and make

5 a determination on the first date of each quarter of

6 each applicable fiscal year of whether the require7 ments under subsection (b) are met; and

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

9 first date of each quarter of each applicable fiscal

10 year of any determination that any requirement of

11 subsection (b) is not met.

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

13 the Office of Management and Budget notifies the President

14 and the Congress that any requirement under subsection (b)

15 is not met, no agency may hire any employee for any posi16 tion in such agency until the Office of Management and

17 Budget notifies the President and the Congress that the total

18 number of full-time equivalent positions for all agencies

19 equals or is less than the applicable number required under

20 subsection (b).

21 (e) WAIVER.—Any provision of this section may be

22 waived upon—

23 (1) a determination by the President of the exist24 ence of war or a national emergency; or
15

HR 3345 EAS

1 (2) the enactment of a joint resolution upon an

2 affirmative vote of three-fifths of the Members of each

3 House of the Congress duly chosen and sworn.

4 SEC. 7. CREATION OF VIOLENT CRIME REDUCTION TRUST

5 FUND.

6 (a) ESTABLISHMENT OF THE ACCOUNT.—Chapter 11

7 of title 31, United States Code, is amended by inserting

8 at the end thereof the following new section:

9 ‘‘§ 1115. Violent crime reduction trust fund

10 ‘‘(a) There is established a separate account in the

11 Treasury, known as the ‘Violent Crime Reduction Trust

12 Fund’, into which shall be deposited deficit reduction

13 achieved by section 1321B of the Violent Crime Control and

14 Law Enforcement Act of 1993 sufficient to fund that Act

15 (as defined in subsection (b) of this section).

16 ‘‘(b) On the first day of the following fiscal years (or

17 as soon thereafter as possible for fiscal year 1994), the fol18 lowing amounts shall be transferred from the general fund

19 to the Violent Crime Reduction Trust Fund—

20 ‘‘(1) for fiscal year 1994, $720,000,000;

21 ‘‘(2) for fiscal year 1995, $2,423,000,000;

22 ‘‘(3) for fiscal year 1996, $4,267,000,000;

23 ‘‘(4) for fiscal year 1997, $6,313,000,000; and

24 ‘‘(5) for fiscal year 1998, $8,545,000,000.

25 ‘‘(c) Notwithstanding any other provision of law—
16

HR 3345 EAS

1 ‘‘(1) the amounts in the Violent Crime Reduction

2 Trust Fund may be appropriated exclusively for the

3 purposes authorized in the Violent Crime Control and

4 Law Enforcement Act of 1993;

5 ‘‘(2) the amounts in the Violent Crime Reduction

6 Trust Fund and appropriations under paragraph (1)

7 of this section shall be excluded from, and shall not

8 be taken into account for purposes of, any budget en9 forcement procedures under the Congressional Budget

10 Act of 1974 or the Balanced Budget and Emergency

11 Deficit Control Act of 1985; and

12 ‘‘(3) for purposes of this subsection, ‘appropria13 tions under paragraph (1)’ mean amounts of budget

14 authority not to exceed the balances of the Violent

15 Crime Reduction Trust Fund and amounts of outlays

16 that flow from budget authority actually appro17 priated.’’.

18 (b) LISTING OF THE VIOLENT CRIME REDUCTION

19 TRUST FUND AMONG GOVERNMENT TRUST FUNDS.—Sec20 tion 1321(a) of title 31, United States Code, is amended

21 by inserting at the end thereof the following new paragraph:

22 ‘‘(91) Violent Crime Reduction Trust Fund.’’.

23 (c) REQUIREMENT FOR THE PRESIDENT TO REPORT

24 ANNUALLY ON THE STATUS OF THE ACCOUNT.—Section
17

HR 3345 EAS

1 1105(a) of title 31, United States Code, is amended by add2 ing at the end thereof:

3 ‘‘(29) Information about the Violent Crime Re4 duction Trust Fund, including a separate statement

5 of amounts in that Trust Fund.

6 ‘‘(30) An analysis displaying by agency pro7 posed reductions in full-time equivalent positions

8 compared to the current year’s level in order to com9 ply with section 6 of the Federal Workforce Restruc10 turing Act of 1994.’’.

11 SEC. 8. CONFORMING REDUCTION IN DISCRETIONARY

12 SPENDING LIMITS.

13 The Director of the Office of Management and Budget

14 shall, upon enactment of this Act, reduce the discretionary

15 spending limits set forth in section 601(a)(2) of the Con16 gressional Budget Act of 1974 for fiscal years 1994 through

17 1998 as follows:

18 (1) for fiscal year 1994, for the discretionary

19 category: $720,000,000 in new budget authority and

20 $314,000,000 in outlays;

21 (2) for fiscal year 1995, for the discretionary

22 category: $2,423,000,000 in new budget authority and

23 $2,330,000,000 in outlays;
18

HR 3345 EAS

1 (3) for fiscal year 1996, for the discretionary

2 category: $4,287,000,000 in new budget authority and

3 $4,184,000,000 in outlays;

4 (4) for fiscal year 1997, for the discretionary

5 category: $6,313,000,000 in new budget authority and

6 $6,221,000,000 in outlays; and

7 (5) for fiscal year 1998, for the discretionary

8 category: $8,545,000,000 in new budget authority and

9 $8,443,000,000 in outlays.

10 SEC. 9. STANDARDIZATION OF WITHDRAWAL OPTIONS FOR

11 THRIFT SAVINGS PLAN PARTICIPANTS.

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

13 Section 8351(b) of title 5, United States Code, is amend14 ed—

15 (1) by amending paragraph (4) to read as fol16 lows:

17 ‘‘(4) Section 8433(b) of this title applies to any

18 employee or Member who elects to make contributions

19 to the Thrift Savings Fund under subsection (a) of

20 this section and separates from Government employ21 ment.’’;

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

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

24 (10) as paragraphs (5), (6), and (7), respectively;
19

HR 3345 EAS

1 (4) in paragraph (5)(C) (as redesignated under

2 paragraph (3) of this subsection) by striking out ‘‘or

3 former spouse’’ in both places it appears;

4 (5) by amending paragraph (6) (as redesignated

5 under paragraph (3) of this subsection) to read as fol6 lows:

7 ‘‘(6) Notwithstanding paragraph (4), if an em8 ployee or Member separates from Government employ9 ment and such employee’s or Member’s nonforfeitable

10 account balance is $3,500 or less, the Executive Direc11 tor shall pay the nonforfeitable account balance to the

12 participant in a single payment unless the employee

13 or Member elects, at such time and otherwise in such

14 manner as the Executive Director prescribes, one of

15 the options available under subsection (b).’’; and

16 (6) in paragraph (7) (as redesignated under

17 paragraph (3) of this subsection) by striking out

18 ‘‘nonforfeiture’’ and inserting in lieu thereof ‘‘non19 forfeitable’’.

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

21 8433 of title 5, United States Code, is amended—

22 (1) in subsection (b) by striking out the matter

23 before paragraph (1) and inserting in lieu thereof

24 ‘‘Subject to section 8435 of this title, any employee or

25 Member who separates from Government employment
20

HR 3345 EAS

1 entitled to an annuity under subchapter II of this

2 chapter or any employee or Member who separates

3 from Government employment is entitled and may

4 elect—’’;

5 (2) by striking out subsections (c) and (d) and

6 redesignating subsections (e), (f), (g), (h), and (i) as

7 subsections (c), (d), (e), (f), and (g), respectively;

8 (3) in subsection (c)(1) (as redesignated under

9 paragraph (2) of this subsection) by striking out ‘‘or

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

11 eligible retirement plan or plans) (as defined in sec12 tion 402(a)(5)(E) of the Internal Revenue Code of

13 1954)’’ and inserting in lieu thereof ‘‘directly to an

14 eligible retirement plan or plans (as defined in sec15 tion 402(c)(8) of the Internal Revenue Code of 1986)’’;

16 (4) in subsection (d)(2) (as redesignated under

17 paragraph (2) of this subsection) by striking out ‘‘or

18 (c)(2)’’; and

19 (5) in subsection (f) (as redesignated under

20 paragraph (2) of this subsection)—

21 (A) by striking out paragraph (1) and re22 designating paragraphs (2) and (3) as para23 graphs (1) and (2), respectively; and

24 (B) in paragraph (1) (as redesignated

25 under subparagraph (A) of this paragraph)—
21

HR 3345 EAS

1 (i) by striking out ‘‘Notwithstanding

2 subsections (b) and (c), if an employee or

3 Member separates from Government employ4 ment under circumstances making such an

5 employee or Member eligible to make an

6 election under either of those subsections,

7 and such employee’s or Member’s’’ and in8 serting in lieu thereof ‘‘Notwithstanding

9 subsection (b), if an employee or Member

10 separates from Government employment,

11 and such employee’s or Member’s’’; and

12 (ii) by striking out ‘‘or (c), as applica13 ble’’; and

14 (C) in paragraph (2) (as redesignated

15 under subparagraph (A) of this paragraph) by

16 striking out ‘‘paragraphs (1) and (2)’’ and in17 serting in lieu thereof ‘‘paragraph (1)’’.

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

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

20 is amended to read as follows:

21 ‘‘(c) Notwithstanding an elimination of a method of

22 payment by the Board an employee, Member, former em23 ployee, or former Member may elect the eliminated method

24 if the elimination of such method became effective less than

25 5 years before the date on which annuity commences.’’.
22

HR 3345 EAS

1 (d) PROTECTIONS FOR SPOUSES AND FORMER

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

3 amended—

4 (1) in subsection (a)(1)(A) by striking out ‘‘sub5 section (b)(3), (b)(4), (c)(3), or (c)(4) of section 8433

6 of this title or change an election previously made

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

8 inserting in lieu thereof ‘‘subsection (b)(3) or (b)(4) of

9 section 8433 of this title or change an election pre10 viously made under subsection (b)(1) or (b)(2)’’;

11 (2) by striking out subsection (b);

12 (3) by redesignating subsections (c), (d), (e), (f),

13 (g), (h), and (i) as subsections (b), (c), (d), (e), (f),

14 (g), and (h), respectively;

15 (4) in subsection (b) (as redesignated under

16 paragraph (3) of this subsection) by amending para17 graph (2) to read as follows:

18 ‘‘(2) Paragraph (1) shall not apply, if—

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

20 in writing, by the employee or Member and the

21 spouse; or

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

23 method, in writing, after establishing to the sat24 isfaction of the Executive Director that cir25 cumstances described under subsection (a)(2) (A)
23

HR 3345 EAS

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

2 inappropriate.’’; and

3 (5) in subsection (c)(1) (as redesignated under

4 paragraph (3) of this subsection) by striking out ‘‘and

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

6 this title’’.

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

8 5, United States Code, is amended—

9 (1) in paragraph (5) by striking out ‘‘Section

10 8433(d)’’ and inserting in lieu thereof ‘‘Section

11 8433(b)’’; and

12 (2) by striking out paragraphs (7) and (8) and

13 inserting in lieu thereof the following:

14 ‘‘(7) Notwithstanding paragraphs (4) and (5), if

15 any justice or judge retires under subsection (a) or (b)

16 of section 371 or section 372(a) of title 28, or resigns

17 without having met the age and service requirements

18 set forth under section 371(c) of title 28, and such jus19 tice’s or judge’s nonforfeitable account balance is

20 $3,500 or less, the Executive Director shall pay the

21 nonforfeitable account balance to the participant in a

22 single payment unless the justice or judge elects, at

23 such time and otherwise in such manner as the Exec24 utive Director prescribes, one of the options available

25 under section 8433(b).’’.
24

HR 3345 EAS

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

6 any bankruptcy judge or magistrate who elects to

7 make contributions to the Thrift Savings Fund

8 under subsection (a) of this section and who re9 tires before attaining age 65 but is entitled, upon

10 attaining age 65, to an annuity under section

11 377 of title 28 or section 2(c) of the Retirement

12 and Survivors Annuities for Bankruptcy Judges

13 and Magistrates Act of 1988.’’;

14 (2) in subsection (b)(4)(C) by striking out ‘‘Sec15 tion 8433(d)’’ and inserting in lieu thereof ‘‘Section

16 8433(b)’’;

17 (3) in subsection (b)(5) by striking out ‘‘retire18 ment under section 377 of title 28 is’’ and inserting

19 in lieu thereof ‘‘any of the actions described under

20 paragraph (4) (A), (B), or (C) shall be considered’’;

21 (4) in subsection (b) by striking out paragraph

22 (8) and redesignating paragraph (9) as paragraph

23 (8); and

24 (5) in paragraph (8) of subsection (b) (as redes25 ignated under paragraph (4) of this subsection)—
25

HR 3345 EAS

1 (A) by striking out ‘‘Notwithstanding sub2 paragraphs (A) and (B) of paragraph (4), if any

3 bankruptcy judge or magistrate retires under cir4 cumstances making such bankruptcy judge or

5 magistrate eligible to make an election under

6 subsection (b) or (c)’’ and inserting in lieu there7 of ‘‘Notwithstanding paragraph (4), if any bank8 ruptcy judge or magistrate retires under cir9 cumstances making such bankruptcy judge or

10 magistrate eligible to make an election under

11 subsection (b)’’; and

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

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

14 United States Code, is amended—

15 (1) in subsection (b)(4)(B) by striking out ‘‘Sec16 tion 8433(d)’’ and inserting in lieu thereof ‘‘Section

17 8433(b)’’;

18 (2) in subsection (b)(5) by striking out ‘‘retire19 ment under section 178 of title 28, is’’ and inserting

20 in lieu thereof ‘‘any of the actions described in para21 graph (4) (A) or (B) shall be considered’’;

22 (3) in subsection (b) by striking out paragraph

23 (8) and redesignating paragraph (9) as paragraph

24 (8); and
26

HR 3345 EAS

1 (4) in paragraph (8) (as redesignated under

2 paragraph (3) of this subsection) by striking out

3 ‘‘Notwithstanding paragraph (4)(A)’’ and inserting

4 in lieu thereof ‘‘Notwithstanding paragraph (4)’’.

5 (h) JUDGES OF THE UNITED STATES COURT OF VET6 ERANS APPEALS.—Section 8440d(b)(5) of title 5, United

7 States Code, is amended by striking out ‘‘A transfer shall

8 be made as provided under section 8433(d) of this title’’

9 and inserting in lieu thereof ‘‘Section 8433(b) of this title

10 applies’’.

11 (i) TECHNICAL AND CONFORMING AMENDMENTS.—

12 Chapters 83 and 84 of title 5, United States Code, are

13 amended—

14 (1) in section 8351(b)(5)(B) (as redesignated

15 under subsection (a)(3) of this section) by striking out

16 ‘‘section 8433(i)’’ and inserting in lieu thereof ‘‘sec17 tion 8433(g)’’;

18 (2) in section 8351(b)(5)(D) (as redesignated

19 under subsection (a)(3) of this section) by striking out

20 ‘‘section 8433(i)’’ and inserting in lieu thereof ‘‘sec21 tion 8433(g)’’;

22 (3) in section 8433(b)(4) by striking out ‘‘sub23 section (e)’’ and inserting in lieu thereof ‘‘subsection

24 (c)’’;
27

HR 3345 EAS

1 (4) in section 8433(d)(1) (as redesignated under

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

3 of section 8435’’ and inserting in lieu thereof ‘‘(c) of

4 section 8435’’;

5 (5) in section 8433(d)(2) (as redesignated under

6 subsection (b)(2) of this section) by striking out ‘‘sec7 tion 8435(d)’’ and inserting in lieu thereof ‘‘section

8 8435(c)’’;

9 (6) in section 8433(e) (as redesignated under

10 subsection (b)(2) of this section) by striking out ‘‘sec11 tion 8435(d)(2)’’ and inserting in lieu thereof ‘‘section

12 8435(c)(2)’’;

13 (7) in section 8433(g)(5) (as redesignated under

14 subsection (b)(2) of this section) by striking out ‘‘sec15 tion 8435(f)’’ and inserting in lieu thereof ‘‘section

16 8435(e)’’;

17 (8) in section 8434(b) by striking out ‘‘section

18 8435(c)’’ and inserting in lieu thereof ‘‘section

19 8435(b)’’;

20 (9) in section 8435(a)(1)(B) by striking out

21 ‘‘subsection (c)’’ and inserting in lieu thereof ‘‘sub22 section (b)’’;

23 (10) in section 8435(d)(1)(B) (as redesignated

24 under subsection (d)(3) of this section) by striking out
28

HR 3345 EAS

1 ‘‘subsection (d)(2)’’ and inserting in lieu thereof ‘‘sub2 section (c)(2)’’;

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

4 under subsection (d)(3) of this section) by striking out

5 ‘‘subsection (c)(1)’’ and inserting in lieu thereof ‘‘sub6 section (b)(1)’’;

7 (12) in section 8435(d)(6) (as redesignated under

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

9 (c)(2)’’ and inserting in lieu thereof ‘‘or (b)(2)’’;

10 (13) in section 8435(e)(1)(A) (as redesignated

11 under subsection (d)(3) of this section) by striking out

12 ‘‘section 8433(i)’’ and inserting in lieu thereof ‘‘sec13 tion 8433(g)’’;

14 (14) in section 8435(e)(2) (as redesignated under

15 subsection (d)(3) of this section) by striking out ‘‘sec16 tion 8433(i) of this title shall not be approved if ap17 proval would have the result described in subsection

18 (d)(1)’’ and inserting in lieu thereof ‘‘section 8433(g)

19 of this title shall not be approved if approval would

20 have the result described under subsection (c)(1)’’;

21 (15) in section 8435(g) (as redesignated under

22 subsection (d)(3) of this section) by striking out ‘‘sec23 tion 8433(i)’’ and inserting in lieu thereof ‘‘section

24 8433(g)’’;
29

HR 3345 EAS

1 (16) in section 8437(c)(5) by striking out ‘‘sec2 tion 8433(i)’’ and inserting in lieu thereof ‘‘section

3 8433(g)’’; and

4 (17) in section 8440a(b)(6) by striking out ‘‘sec5 tion 8351(b)(7)’’ and inserting in lieu thereof ‘‘section

6 8351(b)(5)’’.

7 (j) INTERIM PROVISION.—Section 8433(d) of title 5,

8 United States Code, is amended by striking out ‘‘shall

9 transfer the amount of the balance’’ and inserting in lieu

10 thereof ‘‘may transfer the amount of the balance’’.

11 (k) EFFECTIVE DATES.—(1) Except as provided in

12 paragraph (2), the provisions of this section shall take effect

13 1 year after the date of enactment of this Act or upon such

14 other date as the Executive Director of the Federal Retire15 ment Thrift Investment Board shall provide in regulation.

16 (2) The provisions of subsection (j) of this section shall

17 take effect upon the date of the enactment of this Act.

18 SEC. 10. AMENDMENTS TO ALASKA RAILROAD TRANSFER

19 ACT OF 1982 REGARDING FORMER FEDERAL

20 EMPLOYEES.

21 (a) APPLICABILITY OF VOLUNTARY SEPARATION IN22 CENTIVES TO CERTAIN FORMER FEDERAL EMPLOYEES.—

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

24 (45 U.S.C. 1206(a)) is amended by adding at the end there25 of the following new paragraph:
30

HR 3345 EAS

1 ‘‘(4)(A) The State-owned railroad shall be in2 cluded in the definition of ‘agency’ for purposes of

3 section 3 (a), (b), (c), and (e) and section 5 of the

4 Federal Workforce Restructuring Act of 1994 and

5 may elect to participate in the voluntary separation

6 incentive program established under such Act. Any

7 employee of the State-owned railroad who meets the

8 qualifications as described under the first sentence of

9 paragraph (1) shall be deemed an employee under

10 such Act.

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

12 separation incentive payment under this paragraph

13 and accepts employment with the State-owned rail14 road within 5 years of the date of separation on

15 which payment of the incentive is based shall be re16 quired to repay the entire amount of the incentive

17 payment unless the head of the State-owned railroad

18 determines that the employment is in a position for

19 which there is exceptional difficulty in recruiting a

20 qualified employee and waives the repayment.’’.

21 (b) LIFE AND HEALTH INSURANCE BENEFITS.—Sec22 tion 607 of the Alaska Railroad Transfer Act of 1982 (45

23 U.S.C. 1206) is amended by striking out subsection (e) and

24 inserting in lieu thereof the following:
31

HR 3345 EAS

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

2 paragraph (2) may elect life insurance coverage under

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

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

5 States Code, in accordance with the provisions of this sub6 section.

7 ‘‘(2) The provisions of paragraph (1) shall apply to

8 any person who—

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

10 Workforce Restructuring Act of 1994, is an employee

11 of the State-owned railroad;

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

13 service as a Federal employee or as an employee of

14 the State-owned railroad, combined) on the date of re15 tirement from the State-owned railroad; and

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

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

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

19 insurance coverage under the provisions of paragraph

20 (1); or

21 ‘‘(ii) was enrolled in a health benefits plan pur22 suant to chapter 89 of title 5, United States Code, on

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

24 health benefits plan under the provisions of para25 graph (1).
32

HR 3345 EAS

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

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

3 have been covered under a life insurance policy under chap4 ter 87 of title 5, United States Code, and to have been en5 rolled in a health benefits plan under chapter 89 of title

6 5, United States Code, during the period beginning on Jan7 uary 5, 1985, through the date of retirement of any such

8 person.

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

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

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

Attest:

Secretary.
33

HR 3345 EAS

HR 3345 EAS——2

HR 3345 EAS——3

HR 3345 EAS——4

HR 3345 EAS——5

HR 3345 EAS——6