I 

113TH CONGRESS 

1ST SESSION H. R. 26 

To amend chapters 83 and 84 of title 5, United States Code, to provide 

for the indexation of deferred annuities; to provide that a survivor annuity be provided to the widow or widower of a former employee who 

dies after separating from Government service with title to a deferred 

annuity under the Civil Service Retirement System but before establishing a valid claim therefor, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 3, 2013 

Ms. VELA ́ZQUEZ introduced the following bill; which was referred to the Committee on Oversight and Government Reform, and in addition to the 

Committee on House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To amend chapters 83 and 84 of title 5, United States 

Code, to provide for the indexation of deferred annuities; 

to provide that a survivor annuity be provided to the 

widow or widower of a former employee who dies after 

separating from Government service with title to a deferred annuity under the Civil Service Retirement System 

but before establishing a valid claim therefor, 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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Deferred Benefits Ad3 justment Act of 2013’’. 

4 SEC. 2. INDEXATION OF DEFERRED ANNUITIES. 

5 (a) AMENDMENTS TO SUBCHAPTER III OF CHAPTER

6 83.—Section 8338 of title 5, United States Code, is 

7 amended— 

8 (1) in subsection (d) by striking ‘‘(d) An’’ and 

9 inserting ‘‘(d) Subject to subsection (e), an’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(e)(1) The average pay used in the computation of 

12 an annuity authorized by this section shall be equal to the 

13 average pay described in section 8331(4), increased by the 

14 percentage adjustments (compounded) in rates of pay of 

15 the General Schedule taking effect during the period— 

16 ‘‘(A) beginning on the day after the date of the 

17 separation on which title to annuity is based, and 

18 ‘‘(B) ending on the day before the commence19 ment date of such annuity. 

20 ‘‘(2) In the case of a former employee or Member who 

21 dies after having separated from the service with title to 

22 an annuity authorized by this section but before having 

23 established a valid claim for such annuity, the average pay 

24 used in the computation of any survivor annuity payable 

25 based on the service of such former employee or Member 

26 shall be increased in the manner described in paragraph 


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1 (1), except that, in applying subparagraph (B) of para2 graph (1) for purposes of this paragraph, the commence3 ment date of such survivor annuity shall be used instead 

4 of the commencement date of the annuity referred to in 

5 such subparagraph. 

6 ‘‘(3) Average pay shall not be increased by reason 

7 of any adjustment under this subsection to an amount 

8 which exceeds the rate of basic pay that, as of the day 

9 before the commencement date of the annuity or survivor 

10 annuity involved, is payable for the position that was held 

11 by the employee or Member at the time of earning the 

12 highest rate of pay taken into account in computing such 

13 employee’s or Member’s average pay, as determined under 

14 regulations of the Office.’’. 

15 (b) AMENDMENT TO CHAPTER 84.—Section 8415 of 

16 title 5, United States Code, is amended by adding at the 

17 end the following: 

18 ‘‘(n)(1) The average pay used in the computation of 

19 a deferred annuity under section 8413 shall be equal to 

20 the average pay described in section 8401(3), increased 

21 by the percentage adjustments (compounded) in rates of 

22 pay of the General Schedule taking effect during the pe23 riod— 

24 ‘‘(A) beginning on the day after the date of the 

25 separation on which title to annuity is based, and 


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1 ‘‘(B) ending on the day before the commence2 ment date of such annuity. 

3 ‘‘(2) In the case of a former employee or Member who 

4 dies after having separated from the service with title to 

5 a deferred annuity referred to in paragraph (1) but before 

6 having established a valid claim for such annuity, the aver7 age pay used in the computation of any survivor annuity 

8 payable based on the service of such former employee or 

9 Member shall be increased in the manner described in 

10 paragraph (1), except that, in applying subparagraph (B) 

11 of paragraph (1) for purposes of this paragraph, the com12 mencement date of such survivor annuity shall be used 

13 instead of the commencement date of the annuity referred 

14 to in such subparagraph. 

15 ‘‘(3) Average pay shall not be increased by reason 

16 of any adjustment under this subsection to an amount 

17 which exceeds the rate of basic pay that, as of the day 

18 before the commencement date of the annuity or survivor 

19 annuity involved, is payable for the position that was held 

20 by the employee or Member at the time of earning the 

21 highest rate of pay taken into account in computing such 

22 employee’s or Member’s average pay, as determined under 

23 regulations of the Office.’’. 

24 (c) AMENDMENTS RELATING TO INDIVIDUALS BE25 COMING SUBJECT TO FERS BY ELECTION.— 


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1 (1) COMPUTATION OF A DEFERRED ANNUITY.— 

2 Paragraph (6) of section 302(a) of the Federal Em3 ployees’ Retirement System Act of 1986 (5 U.S.C. 

4 8331 note) is amended by adding at the end the fol5 lowing: 

6 ‘‘(C) In determining average pay under this 

7 paragraph for purposes of computing a deferred an8 nuity under section 8413 of such title— 

9 ‘‘(i) the provisions of section 8338(e)(1) 

10 and (3) of such title shall apply, to the extent 

11 that such annuity is computed under paragraph 

12 (4); and 

13 ‘‘(ii) the provisions of section 8415(n)(1) 

14 and (3) of such title shall apply, to the extent 

15 that such annuity is computed under paragraph 

16 (5).’’. 

17 (2) COMPUTATION OF A SURVIVOR ANNUITY.— 

18 Paragraph (9) of such section 302(a) is amended by 

19 striking ‘‘(9)’’ and inserting ‘‘(9)(A)’’, and by add20 ing at the end the following: 

21 ‘‘(B) In computing an annuity under paragraph 

22 (3) for purposes of determining the amount of a sur23 vivor annuity under subchapter IV of chapter 84 of 

24 title 5, United States Code, to which the survivor is 

25 entitled based on the service of a former employee 


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1 or Member who dies in the circumstances described 

2 in section 8415(n)(2) of such title— 

3 ‘‘(i) paragraph (6)(C)(i) shall apply, to the 

4 extent that such annuity is computed under 

5 paragraph (4); and 

6 ‘‘(ii) paragraph (6)(C)(ii) shall apply, to 

7 the extent that such annuity is computed under 

8 paragraph (5).’’. 

9 (d) CONFORMING AMENDMENTS.—(1) Section 

10 8331(10) of title 5, United States Code, is amended by 

11 inserting ‘‘former employee or Member,’’ before ‘‘or annu12 itant’’. 

13 (2) Section 8341(h)(1) of title 5, United States Code, 

14 is amended by striking ‘‘or former Member who was sepa15 rated from the service with title to a deferred annuity 

16 under section 8338(b) of this title’’ and inserting ‘‘or 

17 former employee or Member who died after having sepa18 rated from the service with title to a deferred annuity 

19 under section 8338 but before having established a valid 

20 claim for annuity,’’. 

21 (3) Clause (iii) of section 8341(h)(2)(B) of title 5, 

22 United States Code, is amended by striking ‘‘a Member’’ 

23 and inserting ‘‘an employee or Member’’. 


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1 SEC. 3. AMENDMENT TO PROVIDE THAT THE WIDOW OR 

2 WIDOWER OF A DEFERRED ANNUITANT WHO 

3 DIES BEFORE ESTABLISHING A VALID CLAIM 

4 FOR ANNUITY UNDER CSRS SHALL BE ELIGI5 BLE FOR A SURVIVOR ANNUITY IN THE SAME 

6 WAY AS APPLIES CURRENTLY UNDER FERS. 

7 Subsection (f) of section 8341 of title 5, United 

8 States Code, is amended to read as follows: 

9 ‘‘(f) If an employee or Member dies after having sepa10 rated from the service with title to a deferred annuity 

11 under section 8338 but before having established a valid 

12 claim for annuity, and is survived by a widow or widower 

13 to whom married on the date of separation, the widow or 

14 widower— 

15 ‘‘(1) is entitled to an annuity equal to 55 per16 cent of the deferred annuity of the employee or 

17 Member commencing on the day after the employee 

18 or Member dies and terminating on the last day of 

19 the month before the widow or widower dies or re20 marries before age 55; or 

21 ‘‘(2) may elect to receive the lump-sum credit 

22 instead of annuity if the widow or widower is the in23 dividual who would be entitled to the lump-sum 

24 credit and files application therefor with the Office 

25 before the award of the annuity. 


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1 Notwithstanding the preceding sentence, an annuity 

2 payable under this subsection to the widow or wid3 ower of a former employee or Member may not ex4 ceed the difference between— 

5 ‘‘(A) the annuity which would otherwise be pay6 able to such widow or widower under this subsection; 

7 and 

8 ‘‘(B) the amount of the survivor annuity pay9 able to any former spouse of such former employee 

10 or Member under subsection (h).’’. 

11 SEC. 4. EFFECTIVE DATES. 

12 (a) AMENDMENTS MADE BY SECTION 2.— 

13 (1) IN GENERAL.—The amendments made by 

14 section 2 shall apply to any annuity or survivor an15 nuity commencing before, on, or after the date of 

16 the enactment of this Act, subject to paragraph (2). 

17 (2) RECOMPUTATIONS.—In the case of any in18 dividual who is entitled to an annuity or survivor an19 nuity based on a separation from service which oc20 curred before the date of the enactment of this 

21 Act— 

22 (A) such annuity or survivor annuity shall 

23 be recomputed to take into account the amend24 ments made by section 2 only if application 

25 therefor is made within 12 months after the efVerDate Mar 15 2010 01:56 Jan 08, 2013 Jkt 029200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H26.IH H26

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1 fective date of regulations prescribed by the Of2 fice of Personnel Management to carry out such 

3 amendments; and 

4 (B) any change in an annuity or survivor 

5 annuity resulting from a recomputation under 

6 subparagraph (A) shall be effective only with 

7 respect to amounts accruing for months begin8 ning on or after the date of the enactment of 

9 this Act. 

10 (b) AMENDMENT MADE BY SECTION 3.—The amend11 ment made by section 3 shall take effect as of the date 

12 of the enactment of this Act. Upon timely application to 

13 the Office of Personnel Management, such amendment 

14 shall also apply to the widow or widower of a former em15 ployee or Member who died before such date of enactment, 

16 except that no amount shall be payable— 

17 (1) for any period beginning before such date of 

18 enactment; or 

19 (2) in any case in which all annuity rights 

20 under subchapter III of chapter 83 of title 5, United 

21 States Code, have been voided due to the lump-sum 

22 credit having been taken. 

23 (c) SAVINGS PROVISION.—Nothing in section 3 shall 

24 affect the right of an individual to a survivor annuity, 

25 based on a death occurring on or after the date of the 


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1 enactment of this Act, if such individual would (upon filing 

2 claim therefor) have been entitled to such annuity had sec3 tion 3 not been enacted. 

4 (d) DEFINITIONS.—For purposes of this section— 

5 (1) the terms ‘‘widow’’ and ‘‘widower’’ have the 

6 respective meanings given them by section 8341 of 

7 title 5, United States Code; and 

8 (2) the term ‘‘lump-sum credit’’ has the mean9 ing given such term by section 8331(8) of such title. 

Æ 


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