`[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3345 Enrolled Bill (ENR)]

<DOC>

        H.R.3345

                       One Hundred Third Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
 the twenty-fifth day of January, one thousand nine hundred and ninety-
                                  four


                                 An Act

  
 
  To provide temporary authority to Government agencies relating to 
voluntary separa-


            tion incentive payments, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Workforce Restructuring Act 
of 1994''.

SEC. 2. TRAINING.

    (a) In General._Chapter 41 of title 5, United States Code, is 
amended_
        (1) in section 4101(4) by striking ``fields'' and all that 
    follows through the semicolon and inserting ``fields which will 
    improve individual and organizational performance and assist in 
    achieving the agency's mission and performance goals;'';
        (2) in section 4103_
            (A) in subsection (a)_
                (i) by striking ``In'' and all that follows through 
            ``maintain'' and inserting ``In order to assist in 
            achieving an agency's mission and performance goals by 
            improving employee and organizational performance, the head 
            of each agency, in conformity with this chapter, shall 
            establish, operate, maintain, and evaluate'';
                (ii) by striking ``and'' at the end of paragraph (2);
                (iii) by redesignating paragraph (3) as paragraph (4); 
            and
                (iv) by inserting after paragraph (2) the following:
        ``(3) provide that information concerning the selection and 
    assignment of employees for training and the applicable training 
    limitations and restrictions be made available to employees of the 
    agency; and''; and
            (B) in subsection (b)_
                (i) in paragraph (1) by striking ``determines'' and all 
            that follows through the period and inserting ``determines 
            that such training would be in the interests of the 
            Government.'';
                (ii) by striking paragraph (2) and redesignating 
            paragraph (3) as paragraph (2); and
                (iii) in subparagraph (C) of paragraph (2) (as so 
            redesignated) by striking ``retaining'' and all that 
            follows through the period and inserting ``such 
            training.'';
        (3) in section 4105_
            (A) in subsection (a) by striking ``(a)''; and
            (B) by striking subsections (b) and (c);
        (4) by repealing section 4106;
        (5) in section 4107_
            (A) by amending the catchline to read as follows:

``Sec. 4107. Restriction on degree training'';

            (B) by striking subsections (a) and (b) and redesignating 
        subsections (c) and (d) as subsections (a) and (b), 
        respectively;
            (C) by amending subsection (a) (as so redesignated)_
                (i) by striking ``subsection (d)'' and inserting 
            ``subsection (b)''; and
                (ii) by striking ``by, in, or through a non-Government 
            facility''; and
            (D) by amending paragraph (1) of subsection (b) (as so 
        redesignated) by striking ``subsection (c)'' and inserting 
        ``subsection (a)'';
        (6) in section 4108(a) by striking ``by, in, or through a non-
    Government facility under this chapter'' and inserting ``for more 
    than a minimum period prescribed by the head of the agency'';
        (7) in section 4113(b)_
            (A) in the first sentence by striking ``annually to the 
        Office,'' and inserting ``to the Office, at least once every 3 
        years, and''; and
            (B) by striking the matter following the first sentence and 
        inserting the following: ``The report shall set forth_
        ``(1) information needed to determine that training is being 
    provided in a manner which is in compliance with applicable laws 
    intended to protect or promote equal employment opportunity; and
        ``(2) information concerning the expenditures of the agency in 
    connection with training and such other information as the Office 
    considers appropriate.'';
        (8) by repealing section 4114; and
        (9) in section 4118_
            (A) in subsection (a)(7) by striking ``by, in, and through 
        non-Government facilities'';
            (B) by striking subsection (b); and
            (C) by redesignating subsections (c) and (d) as subsections 
        (b) and (c), respectively.
    (b) Technical and Conforming Amendments._Title 5, United States 
Code, is amended_
        (1) in section 3381(e) by striking ``4105(a),'' and inserting 
    ``4105,''; and
        (2) in the analysis for chapter 41_
            (A) by repealing the items relating to sections 4106 and 
        4114; and
            (B) by amending the item relating to section 4107 to read 
        as follows:
``4107. Restriction on degree training.''.

    (c) Effective Date._The amendments made by this section shall 
become effective on the date of enactment of this Act.

SEC. 3. VOLUNTARY SEPARATION INCENTIVES.

    (a) Definitions._For the purpose of this section_
        (1) the term ``agency'' means an Executive agency (as defined 
    by section 105 of title 5, United States Code), but does not 
    include the Department of Defense, the Central Intelligence Agency, 
    or the General Accounting Office; and
        (2) the term ``employee'' means an employee (as defined by 
    section 2105 of title 5, United States Code) who is employed by an 
    agency, is serving under an appointment without time limitation, 
    and has been currently employed for a continuous period of at least 
    12 months; such term includes an individual employed by a county 
    committee established under section 8(b) of the Soil Conservation 
    and Domestic Allotment Act (16 U.S.C. 590h(b)), but does not 
    include_
            (A) a reemployed annuitant under subchapter III of chapter 
        83 or chapter 84 of title 5, United States Code, or another 
        retirement system for employees of the Government; or
            (B) an employee having a disability on the basis of which 
        such employee is or would be eligible for disability retirement 
        under the applicable retirement system referred to in 
        subparagraph (A).
    (b) Authority._
        (1) In general._In order to avoid or minimize the need for 
    involuntary separations due to a reduction in force, 
    reorganization, transfer of function, or other similar action, and 
    subject to paragraph (2), the head of an agency may pay, or 
    authorize the payment of, voluntary separation incentive payments 
    to agency employees_
            (A) in any component of the agency;
            (B) in any occupation;
            (C) in any geographic location; or
            (D) on the basis of any combination of factors under 
        subparagraphs (A) through (C).
        (2) Condition._
            (A) In general._In order to receive an incentive payment, 
        an employee must separate from service with the agency (whether 
        by retirement or resignation) before April 1, 1995.
            (B) Exception._An employee who does not separate from 
        service before the date specified in subparagraph (A) shall be 
        ineligible for an incentive payment under this section unless_
                (i) the agency head determines that, in order to ensure 
            the performance of the agency's mission, it is necessary to 
            delay such employee's separation; and
                (ii) the employee separates after completing any 
            additional period of service required (but not later than 
            March 31, 1997).
    (c) Amount and Treatment of Payments._A voluntary separation 
incentive payment_
        (1) shall be paid in a lump sum after the employee's 
    Pseparation;
        (2) shall be equal to the lesser of_
            (A) an amount equal to the amount the employee would be 
        entitled to receive under section 5595(c) of title 5, United 
        States Code, if the employee were entitled to payment under 
        such section; or
            (B) $25,000;
        (3) shall not be a basis for payment, and shall not be included 
    in the computation, of any other type of Government benefit;
        (4) shall not be taken into account in determining the amount 
    of any severance pay to which an employee may be entitled under 
    section 5595 of title 5, United States Code, based on any other 
    separation; and
        (5) shall be paid from appropriations or funds available for 
    the payment of the basic pay of the employee.
    (d) Effect of Subsequent Employment With the PGovernment._
        (1) In general._An employee who has received a voluntary 
    separation incentive payment under this section and accepts 
    employment with the Government of the United States within 5 years 
    after the date of the separation on which the payment is based 
    shall be required to repay the entire amount of the incentive 
    payment to the agency that paid the incentive payment.
        (2) Waiver authority._
            (A) Executive agency._If the employment is with an 
        Executive agency (as defined by section 105 of title 5, United 
        States Code), the Director of the Office of Personnel 
        Management may, at the request of the head of the agency, waive 
        the repayment if the individual involved possesses unique 
        abilities and is the only qualified applicant available for the 
        position.
            (B) Legislative branch._If the employment is with an entity 
        in the legislative branch, the head of the entity or the 
        appointing official may waive the repayment if the individual 
        involved possesses unique abilities and is the only qualified 
        applicant available for the position.
            (C) Judicial branch._If the employment is with the judicial 
        branch, the Director of the Administrative Office of the United 
        States Courts may waive the repayment if the individual 
        involved possesses unique abilities and is the only qualified 
        applicant available for the position.
        (3) Definition._For purposes of paragraph (1) (but not 
    paragraph (2)), the term ``employment'' includes employment under a 
    personal services contract with the United States.
    (e) Regulations._The Director of the Office of Personnel Management 
may prescribe any regulations necessary for the administration of 
subsections (a) through (d).
    (f) Employees of the Judicial Branch._The Director of the 
Administrative Office of the United States Courts may, by regulation, 
establish a program consistent with the program established by 
subsections (a) through (d) for individuals serving in the judicial 
branch.
SEC. 4. ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT FUND.
    (a) Relating to Fiscal Years 1994 and 1995._
        (1) In general._In addition to any other payments which it is 
    required to make under subchapter III of chapter 83 of title 5, 
    United States Code, an agency shall remit to the Office of 
    Personnel Management for deposit in the Treasury of the United 
    States to the credit of the Civil Service Retirement and Disability 
    Fund an amount equal to 9 percent of the final basic pay of each 
    employee of the agency_
            (A) who, on or after the date of the enactment of this Act 
        and before October 1, 1995, retires under section 8336(d)(2) of 
        such title; and
            (B) to whom a voluntary separation incentive payment has 
        been or is to be paid by such agency based on that retirement.
        (2) Definitions._For the purpose of this subsection_
            (A) the term ``final basic pay'', with respect to an 
        employee, means the total amount of basic pay which would be 
        payable for a year of service by such employee, computed using 
        the employee's final rate of basic pay, and, if last serving on 
        other than a full-time basis, with appropriate adjustment 
        therefor; and
            (B) the term ``voluntary separation incentive payment'' 
        means_
                (i) a voluntary separation incentive payment under 
            section 3 (including under any program established under 
            section 3(f)); and
                (ii) any separation pay under section 5597 of title 5, 
            United States Code, or section 2 of the Central 
            Intelligence Agency Voluntary Separation Pay Act (Public 
            Law 103-36; 107 Stat. 104).
    (b) Relating to Fiscal Years 1995 Through 1998._
        (1) In general._In addition to any other payments which it is 
    required to make under subchapter III of chapter 83 or chapter 84 
    of title 5, United States Code, in fiscal years 1995, 1996, 1997, 
    and 1998 (and in addition to any amounts required under subsection 
    (a)), each agency shall, before the end of each such fiscal year, 
    remit to the Office of Personnel Management for deposit in the 
    Treasury of the United States to the credit of the Civil Service 
    Retirement and Disability Fund an amount equal to the product of_
            (A) the number of employees of such agency who, as of March 
        31st of such fiscal year, are subject to subchapter III of 
        chapter 83 or chapter 84 of such title; multiplied by
            (B) $80.
        (2) Definition._For the purpose of this subsection, the term 
    ``agency'' means an Executive agency (as defined by section 105 of 
    title 5, United States Code), but does not include the General 
    Accounting Office.
    (c) Regulations._The Director of the Office of Personnel Management 
may prescribe any regulations necessary to carry out this section.
SEC. 5. REDUCTION OF FEDERAL FULL-TIME EQUIVALENT POSITIONS.
    (a) Definition._For the purpose of this section, the term 
``agency'' means an Executive agency (as defined by section 105 of 
title 5, United States Code), but does not include the General 
Accounting Office.
    (b) Limitations on Full-Time Equivalent Positions._The President, 
through the Office of Management and Budget (in consultation with the 
Office of Personnel Management), shall ensure that the total number of 
full-time equivalent positions in all agencies shall not exceed_
        (1) 2,084,600 during fiscal year 1994;
        (2) 2,043,300 during fiscal year 1995;
        (3) 2,003,300 during fiscal year 1996;
        (4) 1,963,300 during fiscal year 1997;
        (5) 1,922,300 during fiscal year 1998; and
        (6) 1,882,300 during fiscal year 1999.
    (c) Monitoring and Notification._The Office of Management and 
Budget, after consultation with the Office of Personnel Management, 
shall_
        (1) continuously monitor all agencies and make a determination 
    on the first date of each quarter of each applicable fiscal year of 
    whether the requirements under subsection (b) are met; and
        (2) notify the President and the Congress on the first date of 
    each quarter of each applicable fiscal year of any determination 
    that any requirement of subsection (b) is not met.
    (d) Compliance._If, at any time during a fiscal year, the Office of 
Management and Budget notifies the President and the Congress that any 
requirement under subsection (b) is not met, no agency may hire any 
employee for any position in such agency until the Office of Management 
and Budget notifies the President and the Congress that the total 
number of full-time equivalent positions for all agencies equals or is 
less than the applicable number required under subsection (b).
    (e) Waiver._
        (1) Emergencies._Any provision of this section may be waived 
    upon a determination by the President that_
            (A) the existence of a state of war or other national 
        security concern so requires; or
            (B) the existence of an extraordinary emergency threatening 
        life, health, safety, property, or the environment so requires.
        (2) Agency efficiency or critical mission._
            (A) Subsection (d) may be waived, in the case of a 
        particular position or category of positions in an agency, upon 
        a determination of the President that the efficiency of the 
        agency or the performance of a critical agency mission so 
        requires.
            (B) Whenever the President grants a waiver pursuant to 
        subparagraph (A), the President shall take all necessary 
        actions to ensure that the overall limitations set forth in 
        subsection (b) are not exceeded.
    (f) Employment Backfill Prevention._
        (1) In general._The total number of funded employee positions 
    in all agencies (excluding the Department of Defense and the 
    Central Intelligence Agency) shall be reduced by one position for 
    each vacancy created by the separation of any employee who has 
    received, or is due to receive, a voluntary separation incentive 
    payment under section 3 (a)-(e). For purposes of this subsection, 
    positions and vacancies shall be counted on a full-time-equivalent 
    basis.
        (2) Related restriction._No funds budgeted for and appropriated 
    by any Act for salaries or expenses of positions eliminated under 
    this subsection may be used for any purpose other than authorized 
    separation costs.
    (g) Limitation on Procurement of Service Contracts._The President 
shall take appropriate action to ensure that there is no increase in 
the procurement of service contracts by reason of the enactment of this 
Act, except in cases in which a cost comparison demonstrates such 
contracts would be to the financial advantage of the Federal 
Government.
SEC. 6. MONITORING AND REPORT RELATING TO VOLUNTARY SEPARATION 
INCENTIVE PAYMENTS.
    No later than December 31st of each fiscal year, the Office of 
Personnel Management shall submit to the Committee on Governmental 
Affairs of the Senate and the Committee on Post Office and Civil 
Service of the House of Representatives a report which, with respect to 
the preceding fiscal year, shall include_
        (1) the number of employees who received a voluntary separation 
    incentive payment under section 3 during such preceding fiscal 
    year;
        (2) the agency from which each such employee separated;
        (3) at the time of separation from service by each such 
    employee_
            (A) such employee's grade or pay level; and
            (B) the geographic location of such employee's official 
        duty station, by region, State, and city (or foreign nation, if 
        applicable); and
        (4)(A) the number of waivers made (in the repayment upon 
    subsequent employment) by each agency or other authority under 
    section 3 or the amendments made by section 8; and
        (B) the title and the grade or pay level of the position filled 
    by the employee to whom such waiver applied.
SEC. 7. DISLOCATION PAYMENTS FOR CERTAIN CONTRACTOR PERSONNEL.
    (a) Payment._No later than October 31, 1994, the Director of the 
National Aeronautics and Space Administration shall pay $5,000 to each 
full-time contractor employee who_
        (1) was hired, under a contract relating to the Advanced Solid 
    Rocket Motor Program, by_
            (A) Lockheed Missiles and Space Company;
            (B) Aerojet Corporation, Advanced Solid Rocket Motor 
        Division; or
            (C) Rust Corporation;
        (2) was separated from employment in Yellow Creek, Mississippi, 
    as a result of the termination of the Advanced Solid Rocket Motor 
    Program; and
        (3)(A) had been hired locally at Yellow Creek, Mississippi; or
        (B) based on the separation referred to in paragraph (2), was 
    eligible, but elected not, to be relocated.
    (b) Offset._No payment made under this section shall be offset 
against the severance costs of a contractor.
    (c) Source of Payments._Payments under this section shall be from 
funds appropriated under the subheading ``space flight, control and 
data communications'' under the heading ``National Aeronautics and 
Space Administration'' under title III of the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1994 (Public Law 103-124; 107 Stat. 1299).
    (d) Limitation on Payments._The amount of total payments made under 
this section may not exceed $1,000,000.
SEC. 8. SUBSEQUENT EMPLOYMENT AND REPAYMENT OF SEPARATION PAYMENT.
    (a) Defense Agency Separation Pay._Section 5597 of title 5, United 
States Code, is amended by adding at the end the following:
    ``(g)(1) An employee who receives separation pay under this section 
on the basis of a separation occurring on or after the date of the 
enactment of the Federal Workforce Restructuring Act of 1994 and 
accepts employment with the Government of the United States within 5 
years after the date of the separation on which payment of the 
separation pay is based shall be required to repay the entire amount of 
the separation pay to the defense agency that paid the separation pay.
    ``(2) If the employment is with an Executive agency, the Director 
of the Office of Personnel Management may, at the request of the head 
of the agency, waive the repayment if the individual involved possesses 
unique abilities and is the only qualified applicant available for the 
position.
    ``(3) If the employment is with an entity in the legislative 
branch, the head of the entity or the appointing official may waive the 
repayment if the individual involved possesses unique abilities and is 
the only qualified applicant available for the position.
    ``(4) If the employment is with the judicial branch, the Director 
of the Administrative Office of the United States Courts may waive the 
repayment if the individual involved possesses unique abilities and is 
the only qualified applicant available for the position.''.
    (b) Central Intelligence Agency Separation Payment._Section 2(b) of 
the Central Intelligence Agency Voluntary Separation Pay Act (Public 
Law 103-36; 107 Stat. 104) is amended by adding at the end the 
following: ``An employee who receives separation pay under this section 
on the basis of a separation occurring on or after the date of the 
enactment of the Federal Workforce Restructuring Act of 1994 and 
accepts employment with the Government of the United States within 5 
years after the date of the separation on which payment of the 
separation pay is based shall be required to repay the entire amount of 
the separation pay to the Central Intelligence Agency. If the 
employment is with an Executive agency (as defined by section 105 of 
title 5, United States Code), the Director of the Office of Personnel 
Management may, at the request of the head of the agency, waive the 
repayment if the individual involved possesses unique abilities and is 
the only qualified applicant available for the position. If the 
employment is with an entity in the legislative branch, the head of the 
entity or the appointing official may waive the repayment if the 
individual involved possesses unique abilities and is the only 
qualified applicant available for the position. If the employment is 
with the judicial branch, the Director of the Administrative Office of 
the United States Courts may waive the repayment if the individual 
involved possesses unique abilities and is the only qualified applicant 
available for the position.''.
SEC. 9. STANDARDIZATION OF WITHDRAWAL OPTIONS FOR THRIFT SAVINGS PLAN 
PARTICIPANTS.
    (a) Participation in the Thrift Savings Plan._Section 8351(b) of 
title 5, United States Code, is amended_
        (1) by amending paragraph (4) to read as follows:
    ``(4) Section 8433(b) of this title applies to any employee or 
Member who elects to make contributions to the Thrift Savings Fund 
under subsection (a) of this section and separates from Government 
employment.'';
        (2) by striking paragraphs (5), (6), and (8);
        (3) by redesignating paragraphs (7), (9), and (10) as 
    paragraphs (5), (6), and (7), respectively;
        (4) in paragraph (5)(C) (as so redesignated by paragraph (3) of 
    this subsection) by striking ``or former spouse'' each place it 
    appears;
        (5) by amending paragraph (6) (as so redesignated by paragraph 
    (3) of this subsection) to read as follows:
    ``(6) Notwithstanding paragraph (4), if an employee or Member 
separates from Government employment and such employee's or Member's 
nonforfeitable account balance is $3,500 or less, the Executive 
Director shall pay the nonforfeitable account balance to the 
participant in a single payment unless the employee or Member elects, 
at such time and otherwise in such manner as the Executive Director 
prescribes, one of the options available under subsection (b).''; and
        (6) in paragraph (7) (as so redesignated by paragraph (3) of 
    this subsection) by striking ``nonforfeiture'' and inserting 
    ``nonforfeitable''.
    (b) Benefits and Election of Benefits._Section 8433 of title 5, 
United States Code, is amended_
        (1) in subsection (b) by striking the matter before paragraph 
    (1) and inserting the following:
    ``(b) Subject to section 8435 of this title, any employee or Member 
who separates from Government employment is entitled and may elect_'';
        (2) by striking subsections (c) and (d) and redesignating 
    subsections (e) through (i) as subsections (c) through (g), 
    respectively;
        (3) in subsection (c)(1) (as so redesignated by paragraph (2) 
    of this subsection) by striking ``or (c)(4) or required under 
    subsection (d) directly to an eligible retirement plan or plans (as 
    defined in section 402(a)(5)(E) of the Internal Revenue Code of 
    1954)'' and inserting ``directly to an eligible retirement plan or 
    plans (as defined in section 402(c)(8) of the Internal Revenue Code 
    of 1986)'';
        (4) in subsection (d)(2) (as so redesignated by paragraph (2) 
    of this subsection) by striking ``or (c)(2)''; and
        (5) in subsection (f) (as so redesignated by paragraph (2) of 
    this subsection)_
            (A) by striking paragraph (1) and redesignating paragraphs 
        (2) and (3) as paragraphs (1) and (2), respectively; and
            (B) in paragraph (1) (as so redesignated by subparagraph 
        (A) of this paragraph)_
                (i) by striking ``Notwithstanding subsections (b) and 
            (c), if an employee or Member separates from Government 
            employment under circumstances making such employee or 
            Member eligible to make an election under either of those 
            subsections, and such employee's or Member's'' and 
            inserting ``Notwithstanding subsection (b), if an employee 
            or Member separates from Government employment, and such 
            employee's or Member's''; and
                (ii) by striking ``or (c), as applicable''; and
            (C) in paragraph (2) (as so redesignated by subparagraph 
        (A) of this paragraph) by striking ``paragraphs (1) and (2)'' 
        and inserting ``paragraph (1)''.
    (c) Annuities: Methods of Payment; Election; Purchase._Section 
8434(c) of title 5, United States Code, is amended to read as follows:
    ``(c) Notwithstanding the elimination of a method of payment by the 
Board, an employee, Member, former employee, or former Member may elect 
the eliminated method if the elimination of such method becomes 
effective less than 5 years before the date on which that individual's 
annuity commences.''.
    (d) Protections for Spouses and Former Spouses._Section 8435 of 
title 5, United States Code, is amended_
        (1) in subsection (a)(1)(A) by striking ``subsection (b)(3), 
    (b)(4), (c)(3), or (c)(4) of section 8433 of this title or change 
    an election previously made under subsection (b)(1), (b)(2), 
    (c)(1), or (c)(2)'' and inserting ``subsection (b)(3) or (b)(4) of 
    section 8433 of this title or change an election previously made 
    under subsection (b)(1) or (b)(2)'';
        (2) by striking subsection (b);
        (3) by redesignating subsections (c) through (i) as subsections 
    (b) through (h), respectively;
        (4) in subsection (b) (as so redesignated by paragraph (3) of 
    this subsection) by amending paragraph (2) to read as follows:
        ``(2) Paragraph (1) shall not apply if_
            ``(A) a joint waiver of such method is made, in writing, by 
        the employee or Member and the spouse; or
            ``(B) the employee or Member waives such method, in 
        writing, after establishing to the satisfaction of the 
        Executive Director that circumstances described under 
        subsection (a)(2) (A) or (B) make the requirement of a joint 
        waiver inappropriate.''; and
        (5) in subsection (c)(1) (as so redesignated by paragraph (3) 
    of this subsection) by striking ``and a transfer may not be made 
    under section 8433(d) of this title''.
    (e) Justices and Judges._Section 8440a(b) of title 5, United States 
Code, is amended_
        (1) in paragraph (5) by striking ``Section 8433(d)'' and 
    inserting ``Section 8433(b)''; and
        (2) by striking paragraphs (7) and (8) and inserting the 
    following:
    ``(7) Notwithstanding paragraphs (4) and (5), if any justice or 
judge retires under subsection (a) or (b) of section 371 or section 
372(a) of title 28, or resigns without having met the age and service 
requirements set forth under section 371(c) of title 28, and such 
justice's or judge's nonforfeitable account balance is $3,500 or less, 
the Executive Director shall pay the nonforfeitable account balance to 
the participant in a single payment unless the justice or judge elects, 
at such time and otherwise in such manner as the Executive Director 
prescribes, one of the options available under section 8433(b).''.
    (f) Bankruptcy Judges and Magistrates._Section 8440b of title 5, 
United States Code, is amended_
        (1) in subsection (b)(4) by amending subparagraph (B) to read 
    as follows:
    ``(B) Section 8433(b) of this title applies to any bankruptcy judge 
or magistrate who elects to make contributions to the Thrift Savings 
Fund under subsection (a) of this section and who retires before 
attaining age 65 but is entitled, upon attaining age 65, to an annuity 
under section 377 of title 28 or section 2(c) of the Retirement and 
Survivors Annuities for Bankruptcy Judges and Magistrates Act of 
1988.'';
        (2) in subsection (b)(4)(C) by striking ``Section 8433(d)'' and 
    inserting ``Section 8433(b)'';
        (3) in subsection (b)(5) by striking ``retirement under section 
    377 of title 28 is'' and inserting ``any of the actions described 
    under paragraph (4) (A), (B), or (C) shall be considered'';
        (4) in subsection (b) by striking paragraph (8) and 
    redesignating paragraph (9) as paragraph (8); and
        (5) in paragraph (8) of subsection (b) (as so redesignated by 
    paragraph (4) of this subsection)_
            (A) by striking ``Notwithstanding subparagraphs (A) and (B) 
        of paragraph (4), if any bankruptcy judge or magistrate retires 
        under circumstances making such bankruptcy judge or magistrate 
        eligible to make an election under subsection (b) or (c)'' and 
        inserting ``Notwithstanding paragraph (4), if any bankruptcy 
        judge or magistrate retires under circumstances making such 
        bankruptcy judge or magistrate eligible to make an election 
        under subsection (b)''; and
            (B) by striking ``and (c), as applicable''.
    (g) Claims Court Judges._Section 8440c of title 5, United States 
Code, is amended_
        (1) in subsection (b)(4)(B) by striking ``Section 8433(d)'' and 
    inserting ``Section 8433(b)'';
        (2) in subsection (b)(5) by striking ``retirement under section 
    178 of title 28 is'' and inserting ``any of the actions described 
    in paragraph (4) (A) or (B) shall be considered'';
        (3) in subsection (b) by striking paragraph (8) and 
    redesignating paragraph (9) as paragraph (8); and
        (4) in paragraph (8) (as so redesignated by paragraph (3) of 
    this subsection) by striking ``Notwithstanding paragraph (4)(A)'' 
    and inserting ``Notwithstanding paragraph (4)''.
    (h) Judges of the United States Court of Veterans Appeals._Section 
8440d(b)(5) of title 5, United States Code, is amended by striking ``A 
transfer shall be made as provided in section 8433(d) of this title'' 
and inserting ``Section 8433(b) of this title applies''.
    (i) Technical and Conforming Amendments._Title 5, United States 
Code, is amended_
        (1) in section 8351(b)(5)(B) (as so redesignated by subsection 
    (a)(3) of this section) by striking ``section 8433(i)'' and 
    inserting ``section 8433(g)'';
        (2) in section 8351(b)(5)(D) (as so redesignated by subsection 
    (a)(3) of this section) by striking ``section 8433(i)'' and 
    inserting ``section 8433(g)'';
        (3) in section 8433(b)(4) by striking ``subsection (e)'' and 
    inserting ``subsection (c)'';
        (4) in section 8433(d)(1) (as so redesignated by subsection 
    (b)(2) of this section) by striking ``(d) of section 8435'' and 
    inserting ``(c) of section 8435'';
        (5) in section 8433(d)(2) (as so redesignated by subsection 
    (b)(2) of this section) by striking ``section 8435(d)'' and 
    inserting ``section 8435(c)'';
        (6) in section 8433(e) (as so redesignated by subsection (b)(2) 
    of this section) by striking ``section 8435(d)(2)'' and inserting 
    ``section 8435(c)(2)'';
        (7) in section 8433(g)(5) (as so redesignated by subsection 
    (b)(2) of this section) by striking ``section 8435(f)'' and 
    inserting ``section 8435(e)'';
        (8) in section 8434(b) by striking ``section 8435(c)'' and 
    inserting ``section 8435(b)'';
        (9) in section 8435(a)(1)(B) by striking ``subsection (c)'' and 
    inserting ``subsection (b)'';
        (10) in section 8435(d)(1)(B) (as so redesignated by subsection 
    (d)(3) of this section) by striking ``subsection (d)(2)'' and 
    inserting ``subsection (c)(2)'';
        (11) in section 8435(d)(3)(A) (as so redesignated by subsection 
    (d)(3) of this section) by striking ``subsection (c)(1)'' and 
    inserting ``subsection (b)(1)'';
        (12) in section 8435(d)(6) (as so redesignated by subsection 
    (d)(3) of this section) by striking ``or (c)(2)'' and inserting 
    ``or (b)(2)'';
        (13) in section 8435(e)(1)(A) (as so redesignated by subsection 
    (d)(3) of this section) by striking ``section 8433(i)'' and 
    inserting ``section 8433(g)'';
        (14) in section 8435(e)(2) (as so redesignated by subsection 
    (d)(3) of this section) by striking ``section 8433(i) of this title 
    shall not be approved if approval would have the result described 
    in subsection (d)(1)'' and inserting ``section 8433(g) of this 
    title shall not be approved if approval would have the result 
    described under subsection (c)(1)'';
        (15) in section 8435(g) (as so redesignated by subsection 
    (d)(3) of this section) by striking ``section 8433(i)'' and 
    inserting ``section 8433(g)'';
        (16) in section 8437(c)(5) by striking ``section 8433(i)'' and 
    inserting ``section 8433(g)''; and
        (17) in section 8440a(b)(6) by striking ``section 8351(b)(7)'' 
    and inserting ``section 8351(b)(5)''.
    (j) Effective Date._This section shall take effect 1 year after the 
date of the enactment of this Act or on such earlier date as the 
Executive Director of the Federal Retirement Thrift Investment Board 
shall provide in regulation.
  SEC. 10. AMENDMENTS TO ALASKA RAILROAD TRANSFER ACT OF 1982 REGARDING 
      FORMER FEDERAL EMPLOYEES.
    (a) Applicability of Voluntary Separation Incentives to Certain 
Former Federal Employees._Section 607(a) of the Alaska Railroad 
Transfer Act of 1982 (45 U.S.C. 1206(a)) is amended by adding at the 
end the following:
        ``(4)(A) The State-owned railroad shall be included in the 
    definition of `agency' for purposes of section 3 (a), (b), (c), and 
    (e) of the Federal Workforce Restructuring Act of 1994 and may 
    elect to participate in the voluntary separation incentive program 
    established under such Act. Any employee of the State-owned 
    railroad who meets the qualifications as described under the first 
    sentence of paragraph (1) shall be deemed an employee under such 
    Act.
        ``(B) An employee who has received a voluntary separation 
    incentive payment under this paragraph and accepts employment with 
    the State-owned railroad within 5 years after the date of 
    separation on which payment of the incentive is based shall be 
    required to repay the entire amount of the incentive payment unless 
    the head of the State-owned railroad determines that the individual 
    involved possesses unique abilities and is the only qualified 
    applicant available for the position.''.
    (b) Life and Health Insurance Benefits._Section 607 of the Alaska 
Railroad Transfer Act of 1982 (45 U.S.C. 1206) is Pamended by striking 
subsection (e) and inserting the following:
    ``(e)(1) Any person described under the provisions of paragraph (2) 
may elect life insurance coverage under chapter 87 of title 5, United 
States Code, and enroll in a health benefits plan under chapter 89 of 
title 5, United States Code, in accordance with the provisions of this 
subsection.
    ``(2) The provisions of paragraph (1) shall apply to any person 
who_
        ``(A) on the date of the enactment of the Federal Workforce 
    Restructuring Act of 1994, is an employee of the State-owned 
    railroad;
        ``(B) has 20 years or more of service (in the civil service as 
    a Federal employee or as an employee of the State-owned railroad, 
    combined) on the date of retirement from the State-owned railroad; 
    and
        ``(C)(i) was covered under a life insurance policy pursuant to 
    chapter 87 of title 5, United States Code, on January 4, 1985, for 
    the purpose of electing life insurance coverage under the 
    provisions of paragraph (1); or
        ``(ii) was enrolled in a health benefits plan pursuant to 
    chapter 89 of title 5, United States Code, on January 4, 1985, for 
    the purpose of enrolling in a health benefits plan under the 
    provisions of paragraph (1).
    ``(3) For purposes of this section, any person described under the 
provisions of paragraph (2) shall be deemed to have been covered under 
a life insurance policy under chapter 87 of title 5, United States 
Code, and to have been enrolled in a health benefits plan under chapter 
89 of title 5, United States Code, during the period beginning on 
January 5, 1985, through the date of retirement of any such person.
    ``(4) The provisions of paragraph (1) shall not apply to any person 
described under paragraph (2) until the date such person retires from 
the State-owned railroad.''.







                               Speaker of the House of Representatives.







                            Vice President of the United States and    
                                               President of the Senate.`