II

104TH CONGRESS

2D SESSION S. 1756

To provide additional pension security for spouses and former spouses, and

for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 14, 1996

Ms. MOSELEY-BRAUN (for herself, Ms. SNOWE, Mrs. MURRAY, Mr. KERRY,

Ms. MIKULSKI, Mr. WELLSTONE, and Mr. DASCHLE) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To provide additional pension security for spouses and former

spouses, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Women’s Pension Eq5 uity Act of 1996’’.

6 SEC. 2. MODEL SPOUSAL CONSENT FORM AND QUALIFIED

7 DOMESTIC RELATIONS ORDER.

8 (a) MODEL SPOUSAL CONSENT FORM.—
2

•S 1756 IS

1 (1) AMENDMENT TO INTERNAL REVENUE

2 CODE.—Section 417(a) of the Internal Revenue

3 Code of 1986 is amended by adding at the end the

4 following new paragraph:

5 ‘‘(7) CONSENT FORM.—The Secretary shall de6 velop a form not later than January 1, 1997, for the

7 spousal consent required under paragraph (2)

8 which—

9 ‘‘(A) is written in a manner calculated to

10 be understood by the average person, and

11 ‘‘(B) discloses in plain form whether—

12 ‘‘(i) the waiver is irrevocable, and

13 ‘‘(ii) the waiver may be revoked by a

14 qualified domestic relations order.’’.

15 (2) AMENDMENT TO ERISA.—Section 205(c) of

16 the Employee Retirement Income Security Act of

17 1974 (29 U.S.C. 1055(c)) is amended by adding at

18 the end the following new paragraph:

19 ‘‘(8) The Secretary of the Treasury shall de20 velop a form not later than January 1, 1997, for the

21 spousal consent required under paragraph (2)

22 which—

23 ‘‘(A) is written in a manner calculated to

24 be understood by the average person, and

25 ‘‘(B) discloses in plain form whether—
3

•S 1756 IS

1 ‘‘(i) the waiver is irrevocable, and

2 ‘‘(ii) the waiver may be revoked by a

3 qualified domestic relations order.’’.

4 (b) MODEL QUALIFIED DOMESTIC RELATIONS

5 ORDER.—

6 (1) AMENDMENT TO ERISA.—Section 206(d)(3)

7 of the Employee Retirement Income Security Act of

8 1974 (29 U.S.C. 1056(d)(3)) is amended by adding

9 at the end the following new subparagraph:

10 ‘‘(O) The Secretary shall develop a form not later

11 than January 1, 1997, for a qualified domestic relations

12 order—

13 ‘‘(i) which meets all the requirements of sub14 paragraph (B)(i), and

15 ‘‘(ii) the provisions of which focus attention on

16 the need to consider the treatment of any lump sum

17 payment, qualified joint and survivor annuity, or

18 qualified preretirement survivor annuity.’’.

19 (2) AMENDMENT TO INTERNAL REVENUE

20 CODE.—Section 414(p) of the Internal Revenue

21 Code of 1986 is amended by adding at the end the

22 following new paragraph:

23 ‘‘(13) The Secretary of Labor shall develop a

24 form not later than January 1, 1997, for a qualified

25 domestic relations order which—
4

•S 1756 IS

1 ‘‘(A) which meets all the requirements of

2 paragraph (1)(A), and

3 ‘‘(B) the provisions of which focus atten4 tion on the need to consider the treatment of

5 any lump sum payment, qualified joint and sur6 vivor annuity, or qualified preretirement survi7 vor annuity.’’.

8 (c) PUBLICITY.—The Secretary of the Treasury and

9 the Secretary of Labor shall include publicity for the

10 model forms required by the amendments made by this

11 section in the pension outreach efforts undertaken by each

12 Secretary.

13 SEC. 3. EXTENSION OF TIER II RAILROAD RETIREMENT

14 BENEFITS TO SURVIVING FORMER SPOUSES

15 PURSUANT TO DIVORCE AGREEMENTS.

16 (a) IN GENERAL.—Section 5 of the Railroad Retire17 ment Act of 1974 (45 U.S.C. 231d) is amended by adding

18 at the end the following new subsection:

19 ‘‘(d) Notwithstanding any other provision of law, the

20 payment of any portion of an annuity computed under sec21 tion 3(b) to a surviving former spouse in accordance with

22 a court decree of divorce, annulment, or legal separation

23 or the terms of any court-approved property settlement

24 incident to any such court decree shall not be terminated

25 upon the death of the individual who performed the service
5

•S 1756 IS

1 with respect to which such annuity is so computed unless

2 such termination is otherwise required by the terms of

3 such court decree.’’.

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

5 this section shall take effect on the date of the enactment

6 of this Act.

7 SEC. 4. SURVIVOR ANNUITIES FOR WIDOWS, WIDOWERS,

8 AND FORMER SPOUSES OF FEDERAL EM9 PLOYEES WHO DIE BEFORE ATTAINING AGE

10 FOR DEFERRED ANNUITY UNDER CIVIL

11 SERVICE RETIREMENT SYSTEM.

12 (a) BENEFITS FOR WIDOW OR WIDOWER.—Section

13 8341(f) of title 5, United States Code, is amended—

14 (1) in the matter preceding paragraph (1) by—

15 (A) by inserting ‘‘a former employee sepa16 rated from the service with title to deferred an17 nuity from the Fund dies before having estab18 lished a valid claim for annuity and is survived

19 by a spouse, or if’’ before ‘‘a Member’’; and

20 (B) by inserting ‘‘of such former employee

21 or Member’’ after ‘‘the surviving spouse’’;

22 (2) in paragraph (1)—

23 (A) by inserting ‘‘former employee or’’

24 before ‘‘Member commencing’’; and
6

•S 1756 IS

1 (B) by inserting ‘‘former employee or’’

2 before ‘‘Member dies’’; and

3 (3) in the undesignated sentence following para4 graph (2)—

5 (A) in the matter preceding subparagraph

6 (A) by inserting ‘‘former employee or’’ before

7 ‘‘Member’’; and

8 (B) in subparagraph (B) by inserting

9 ‘‘former employee or’’ before ‘‘Member’’.

10 (b) BENEFITS FOR FORMER SPOUSE.—Section

11 8341(h) of title 5, United States Code, is amended—

12 (1) in paragraph (1) by adding after the first

13 sentence ‘‘Subject to paragraphs (2) through (5) of

14 this subsection, a former spouse of a former em15 ployee who dies after having separated from the

16 service with title to a deferred annuity under section

17 8338(a) but before having established a valid claim

18 for annuity is entitled to a survivor annuity under

19 this subsection, if and to the extent expressly pro20 vided for in an election under section 8339(j)(3) of

21 this title, or in the terms of any decree of divorce

22 or annulment or any court order or court-approved

23 property settlement agreement incident to such de24 cree.’’; and

25 (2) in paragraph (2)—
7

•S 1756 IS

1 (A) in subparagraph (A)(ii) by striking ‘‘or

2 annuitant,’’ and inserting ‘‘annuitant, or former

3 employee’’; and

4 (B) in subparagraph (B)(iii) by inserting

5 ‘‘former employee or’’ before ‘‘Member’’.

6 (c) PROTECTION OF SURVIVOR BENEFIT RIGHTS.—

7 Section 8339(j)(3) of title 5, United States Code, is

8 amended by inserting at the end the following:

9 ‘‘The Office shall provide by regulation for the appli10 cation of this subsection to the widow, widower, or surviv11 ing former spouse of a former employee who dies after

12 having separated from the service with title to a deferred

13 annuity under section 8338(a) but before having estab14 lished a valid claim for annuity.’’.

15 (d) EFFECTIVE DATE.—The amendments made by

16 this section shall take effect on the date of the enactment

17 of this Act and shall apply only in the case of a former

18 employee who dies on or after such date.

19 SEC. 5. COURT ORDERS RELATING TO FEDERAL RETIRE20 MENT BENEFITS FOR FORMER SPOUSES OF

21 FEDERAL EMPLOYEES.

22 (a) CIVIL SERVICE RETIREMENT SYSTEM.—

23 (1) IN GENERAL.—Section 8345(j) of title 5,

24 United States Code, is amended—
8

•S 1756 IS

1 (A) by redesignating paragraph (3) as

2 paragraph (4); and

3 (B) by inserting after paragraph (2) the

4 following new paragraph:

5 ‘‘(3) Payment to a person under a court decree, court

6 order, property settlement, or similar process referred to

7 under paragraph (1) shall include payment to a former

8 spouse of the employee, Member, or annuitant.’’.

9 (2) LUMP-SUM BENEFITS.—Section 8342 of

10 title 5, United States Code, is amended—

11 (A) in subsection (c) by striking ‘‘Lump12 sum benefits’’ and inserting ‘‘Subject to sub13 section (j), lump-sum benefits’’; and

14 (B) in subsection (j)(1) by striking ‘‘the

15 lump-sum credit under subsection (a) of this

16 section’’ and inserting ‘‘any lump-sum credit or

17 lump-sum benefit under this section’’.

18 (b) FEDERAL EMPLOYEES RETIREMENT SYSTEM.—

19 Section 8467 of title 5, United States Code, is amended—

20 (1) by redesignating subsection (c) as sub21 section (d); and

22 (2) by inserting after subsection (b) the follow23 ing new subsection:

24 ‘‘(c) Payment to a person under a court decree, court

25 order, property settlement, or similar process referred to
9

•S 1756 IS

1 under subsection (a) shall include payment to a former

2 spouse of the employee, Member, or annuitant.’’.

3 (c) EFFECTIVE DATE.—The amendments made by

4 this section shall take effect on the date of the enactment

5 of this Act.

6 SEC. 6. PREVENTION OF CIRCUMVENTION OF COURT

7 ORDER BY WAIVER OF RETIRED PAY TO EN8 HANCE CIVIL SERVICE RETIREMENT ANNU9 ITY.

10 (a) CIVIL SERVICE RETIREMENT AND DISABILITY

11 SYSTEM.—(1) Subsection (c) of section 8332 of title 5,

12 United States Code, is amended by adding at the end the

13 following:

14 ‘‘(4) If an employee or Member waives retired pay

15 that is subject to a court order for which there has been

16 effective service on the Secretary concerned for purposes

17 of section 1408 of title 10, the military service on which

18 the retired pay is based may be credited as service for

19 purposes of this subchapter only if, in accordance with

20 regulations prescribed by the Director of the Office of Per21 sonnel Management, the employee or Member authorizes

22 the Director to deduct and withhold from the annuity pay23 able to the employee or Member under this subchapter,

24 and to pay to the former spouse covered by the court

25 order, the same amount that would have been deducted
10

•S 1756 IS

1 and withheld from the employee’s or Member’s retired pay

2 and paid to that former spouse under such section 1408.’’.

3 (2) Paragraph (1) of such subsection is amended by

4 striking out ‘‘Except as provided in paragraph (2)’’ and

5 inserting ‘‘Except as provided in paragraphs (2) and (4)’’.

6 (b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—

7 (1) Subsection (c) of section 8411 of title 5, United States

8 Code, is amended by adding at the end the following:

9 ‘‘(5) If an employee or Member waives retired pay

10 that is subject to a court order for which there has been

11 effective service on the Secretary concerned for purposes

12 of section 1408 of title 10, the military service on which

13 the retired pay is based may be credited as service for

14 purposes of this chapter only if, in accordance with regula15 tions prescribed by the Director of the Office of Personnel

16 Management, the employee or Member authorizes the Di17 rector to deduct and withhold from the annuity payable

18 to the employee or Member under this subchapter, and

19 to pay to the former spouse covered by the court order,

20 the same amount that would have been deducted and with21 held from the employee’s or Member’s retired pay and

22 paid to that former spouse under such section 1408.’’.

23 (2) Paragraph (1) of such subsection is amended by

24 striking out ‘‘Except as provided in paragraph (2) or (3)’’
11

•S 1756 IS

1 and inserting ‘‘Except as provided in paragraphs (2), (3),

2 and (5)’’.

3 (c) EFFECTIVE DATE.—The amendment made by

4 subsection (a) shall take effect on January 1, 1997.

Æ