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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1535 Reported in Senate (RS)]

                                                       Calendar No. 362

103d CONGRESS

  2d Session

                                S. 1535

                          [Report No. 103-223]

_______________________________________________________________________

                                 A BILL

To amend title 5, United States Code, to eliminate narrow restrictions 
   on employee training, to provide a temporary voluntary separation 
                   incentive, and for other purposes.

_______________________________________________________________________

             February 4 (legislative day, January 25), 1994

                        Reported with amendments

                                                       Calendar No. 362
103d CONGRESS
  2d Session
                                S. 1535

                          [Report No. 103-223]

To amend title 5, United States Code, to eliminate narrow restrictions 
   on employee training, to provide a temporary voluntary separation 
                   incentive, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

            October 7 (legislative day, September 27), 1993

    Mr. Glenn (for himself, Mr. Stevens, Mr. Pryor, and Mr. Warner) 
introduced the following bill; which was read twice and referred to the 
                   Committee on Governmental Affairs

             February 4 (legislative day, January 25), 1994

                 Reported by Mr. Glenn, with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL

 
To amend title 5, United States Code, to eliminate narrow restrictions 
   on employee training, to provide a temporary voluntary separation 
                   incentive, 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 1993''.

SEC. 2. EMPLOYEE TRAINING.

    (a) In General.--Chapter 41 of title 5, United States Code, is 
amended--
            (1) in section 4101(4) by striking out ``fields'' and all 
        that follows through the semicolon and inserting in lieu 
        thereof ``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) by striking out ``In'' and 
                all that follows through ``proficiency'' and inserting 
                in lieu thereof ``In order to assist in achieving an 
                agency's mission and performance goals by improving 
                employee and organizational performance''; and
                    (B) in subsection (b)--
                            (i) in paragraph (1) by striking out 
                        ``determines'' and all that follows through the 
                        period and inserting in lieu thereof 
                        ``determines that such training would be in the 
                        interests of the Government.'';
                            (ii) by striking out paragraph (2) and 
                        redesignating paragraph (3) as paragraph (2); 
                        and
                            (iii) in subparagraph (C) of paragraph (2) 
                        (as redesignated under clause (ii) of this 
                        subparagraph) by striking out ``retaining'' and 
                        all that follows through the period and 
                        inserting in lieu thereof ``such training.'';
            (3) in section 4105--
                    (A) in subsection (a) by striking out ``(a)''; and
                    (B) by striking out subsections (b) and (c);
            (4) by repealing section 4106;
            (5) in section 4107--
                    (A) by amending the section heading to read as 
                follows:
``Sec. 4107. Restriction on degree training'';
                    (B) by striking out subsections (a) and (b) and 
                redesignating subsections (c) and (d) as subsections 
                (a) and (b), respectively;
                    (C) by amending subsection (a) (as redesignated 
                under subparagraph (B) of this paragraph)--
                            (i) by striking out ``subsection (d)'' and 
                        inserting in lieu thereof ``subsection (b)''; 
                        and
                            (ii) by striking out ``by, in, or through a 
                        non-Government facility''; and
                    (D) by amending paragraph (1) of subsection (b) (as 
                redesignated under subparagraph (B) of this paragraph) 
                by striking out ``subsection (c)'' and inserting in 
                lieu thereof ``subsection (a)'';
            (6) in section 4108(a) by striking out ``by, in, or through 
        a non-Government facility under this chapter'' and inserting in 
        lieu thereof ``for more than a minimum period prescribed by the 
        head of the agency'';
            (7) in section 4113(b) by striking out all that follows the 
        first sentence;
            (8) by repealing section 4114; and
            (9) in section 4118--
                    (A) in subsection (a)(7) by striking out ``by, in, 
                and through non-Government facilities'';
                    (B) by striking out subsection (b); and
                    (C) by redesignating subsections (c) and (d) as 
                subsections (b) and (c), respectively.
    (b) Technical and Conforming Amendments.--The table of sections for 
chapter 41 of title 5, United States Code, is amended--
            (1) by striking out the items relating to sections 4106 and 
        4114; and
            (2) 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 take 
effect on the date of enactment of this Act.

SEC. 3. VOLUNTARY SEPARATION INCENTIVES.

    (a) Definitions.--For purposes of this section, the term--
            (1) ``agency'' means an Executive agency, as defined under 
        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) ``employee'' means an employee, as defined under 
        section 2105 of title 5, United States Code, of an agency, 
        serving under an appointment without time limitation, who has 
        been currently employed for a continuous period of at least 12 
        months, including 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 To Make Payment.--(1) In order to assist in the 
restructuring of the Federal workforce while minimizing involuntary 
separations, the head of an agency may pay, or authorize the payment 
of, a voluntary separation incentive payment to 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 the factors 
        described under subparagraphs (A) through (C).
    (2) In order to receive an incentive payment under paragraph (1), 
an employee shall separate from service with the agency (whether by 
retirement or resignation) during the 90-day period described under 
paragraph (3).
    (3) The head of an agency shall designate a continuous 90-day 
period for purposes of separation under this subsection for such agency 
or any component thereof. Such 90-day period shall begin no earlier 
than the date of the enactment of this Act and shall end no later than 
September 30, 1994.
    (4) Notwithstanding the provisions of paragraphs (2) and (3), an 
employee may receive an incentive payment under this section and delay 
a separation from service if--
            (A) the agency head determines that it is necessary to 
        delay such employee's separation from service in order to 
        ensure the performance of the agency's mission; and
            (B) no later than 2 years after the date of the last day of 
        the 90-day period designated under paragraph (3), such employee 
        separates from service in the agency.
    (c) Voluntary Separation Incentive Payment.--A voluntary separation 
incentive payment--
            (1) shall be paid in a lump sum after the employee's 
        separation;
            (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) Subsequent Employment and Repayment of Incentive Payment.--(1) 
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 of the date of the separation on which 
payment of the incentive is based shall be required to repay the entire 
amount of the incentive payment to the agency that paid the incentive 
payment.
    (2) If the employment is with an Executive agency (as defined under 
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 employment is in a position for which there 
is exceptional difficulty in recruiting a qualified employee.
    (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 employment is in a position for which there is 
exceptional difficulty in recruiting a qualified employee.
    (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 employment is in a position for which there is 
exceptional difficulty in recruiting a qualified employee.
    (e) Regulations.--The Director of the Office of Personnel 
Management may prescribe any regulations necessary for the 
administration of this section.
    (f) Judicial Branch Program.--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) of this section for employees of the judicial branch.
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    (g) Reduction of Full-Time Equivalent Positions.--(1) The President 
or his designee shall take such action as he determines necessary to 
ensure that, no later than September 30, 1995, employment in the 
executive branch is reduced by at least 1 full-time equivalent position 
for each voluntary separation incentive payment paid under this 
section.
    (2) No later than December 1, 1995, the President or his designee 
shall report to the Congress on the implementation of this subsection.
    (h) 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 
section except in cases in which a cost comparison demonstrates such 
contracts would be to the financial advantage of the Federal 
Government.

SEC. 4. 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 thereof the following new 
subsection:
    ``(g)(1) An employee who receives separation pay under this section 
on the basis of a separation occurring on or after the date of 
enactment of the Federal Workforce Restructuring Act of 1993 and 
accepts employment with the Government of the United States within -2 5 
years of 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 (as defined 
under 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 employment is in a position for 
which there is exceptional difficulty in recruiting a qualified 
employee.
    ``(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 employment is in a position for which there is 
exceptional difficulty in recruiting a qualified employee.
    ``(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 employment is in a position for which there is 
exceptional difficulty in recruiting a qualified employee.''.
    (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 thereof 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 1993 and 
accepts employment with the Government of the United States within -2 5 
years of 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 under 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 employment is in a position for which there is exceptional 
difficulty in recruiting a qualified employee. 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 employment is in a 
position for which there is exceptional difficulty in recruiting a 
qualified employee. 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 employment is in a position for which there 
is exceptional difficulty in recruiting a qualified employee.''.

SEC. 5. FUNDING OF EARLY RETIREMENTS IN CIVIL SERVICE RETIREMENT 
              SYSTEM.

    (a) In General.--Section 8334 of title 5, United States Code, is 
amended by adding at the end thereof the following new subsection:
    ``(l) In addition to any other payments required by this 
subchapter, an agency shall remit to the Office for deposit in the 
Treasury of the United States to the credit of the Fund an amount equal 
to 9 percent of the final rate of basic pay of each employee of the 
agency who retires under section 8336(d).''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to retirements occurring on or after the date of the 
enactment of this Act.

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

    (a) Definition.--For purposes of this section, the term ``agency'' 
means an Executive agency as defined under 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) 2,095,182 during fiscal year 1994;
            (2) 2,044,100 during fiscal year 1995;
            (3) 2,003,846 during fiscal year 1996;
            (4) 1,963,593 during fiscal year 1997;
            (5) 1,923,339 during fiscal year 1998; and
            (6) 1,883,086 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.--Any provision of this section may be waived upon--
            (1) a determination by the President of the existence of 
        war or a national emergency; or
            (2) the enactment of a joint resolution upon an affirmative 
        vote of three-fifths of the Members of each House of the 
        Congress duly chosen and sworn.

SEC. 7. REDUCTION IN DISCRETIONARY SPENDING LIMITS.

    The Director of the Office of Management and Budget shall, upon 
enactment of this Act, reduce the discretionary spending limits set 
forth in section 601(a)(2) of the Congressional Budget Act of 1974 for 
fiscal years 1994 through 1998 as follows:
            (1) for fiscal year 1994, for the discretionary category: 
        $329,000,000 in new budget authority and $314,000,000 in 
        outlays;
            (2) for fiscal year 1995, for the discretionary category: 
        $2,423,000,000 in new budget authority and $2,330,000,000 in 
        outlays;
            (3) for fiscal year 1996, for the discretionary category: 
        $4,267,000,000 in new budget authority and $4,184,000,000 in 
        outlays;
            (4) for fiscal year 1997, for the discretionary category: 
        $6,313,000,000 in new budget authority and $6,221,000,000 in 
        outlays; and
            (5) for fiscal year 1998, for the discretionary category: 
        $8,545,000,000 in new budget authority and $8,443,000,000 in 
        outlays.

SEC. 8. 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 out 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 redesignated under paragraph 
        (3) of this subsection) by striking out ``or former spouse'' in 
        both places it appears;
            (5) by amending paragraph (6) (as redesignated under 
        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 redesignated under paragraph (3) 
        of this subsection) by striking out ``nonforfeiture'' and 
        inserting in lieu thereof ``nonforfeitable''.
    (b) Benefits and Election of Benefits.--Section 8433 of title 5, 
United States Code, is amended--
            (1) in subsection (b) by striking out the matter before 
        paragraph (1) and inserting in lieu thereof ``Subject to 
        section 8435 of this title, any employee or Member who 
        separates from Government employment entitled to an annuity 
        under subchapter II of this chapter or any employee or Member 
        who separates from Government employment is entitled and may 
        elect--'';
            (2) by striking out subsections (c) and (d) and 
        redesignating subsections (e), (f), (g), (h), and (i) as 
        subsections (c), (d), (e), (f), and (g), respectively;
            (3) in subsection (c)(1) (as redesignated under paragraph 
        (2) of this subsection) by striking out ``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 in lieu thereof 
        ``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 redesignated under paragraph 
        (2) of this subsection) by striking out ``or (c)(2)''; and
            (5) in subsection (f) (as redesignated under paragraph (2) 
        of this subsection)--
                    (A) by striking out paragraph (1) and redesignating 
                paragraphs (2) and (3) as paragraphs (1) and (2), 
                respectively; and
                    (B) in paragraph (1) (as redesignated under 
                subparagraph (A) of this paragraph)--
                            (i) by striking out ``Notwithstanding 
                        subsections (b) and (c), if an employee or 
                        Member separates from Government employment 
                        under circumstances making such an employee or 
                        Member eligible to make an election under 
                        either of those subsections, and such 
                        employee's or Member's'' and inserting in lieu 
                        thereof ``Notwithstanding subsection (b), if an 
                        employee or Member separates from Government 
                        employment, and such employee's or Member's''; 
                        and
                            (ii) by striking out ``or (c), as 
                        applicable''; and
                    (C) in paragraph (2) (as redesignated under 
                subparagraph (A) of this paragraph) by striking out 
                ``paragraphs (1) and (2)'' and inserting in lieu 
                thereof ``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 an 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 became 
effective less than 5 years before the date on which 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 out ``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 in lieu thereof 
        ``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 out subsection (b);
            (3) by redesignating subsections (c), (d), (e), (f), (g), 
        (h), and (i) as subsections (b), (c), (d), (e), (f), (g), and 
        (h), respectively;
            (4) in subsection (b) (as redesignated under 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 redesignated under paragraph 
        (3) of this subsection) by striking out ``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 out ``Section 8433(d)'' 
        and inserting in lieu thereof ``Section 8433(b)''; and
            (2) by striking out paragraphs (7) and (8) and inserting in 
        lieu thereof 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 out ``Section 
        8433(d)'' and inserting in lieu thereof ``Section 8433(b)'';
            (3) in subsection (b)(5) by striking out ``retirement under 
        section 377 of title 28 is'' and inserting in lieu thereof 
        ``any of the actions described under paragraph (4) (A), (B), or 
        (C) shall be considered'';
            (4) in subsection (b) by striking out paragraph (8) and 
        redesignating paragraph (9) as paragraph (8); and
            (5) in paragraph (8) of subsection (b) (as redesignated 
        under paragraph (4) of this subsection)--
                    (A) by striking out ``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 in 
                lieu thereof ``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 out ``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 out ``Section 
        8433(d)'' and inserting in lieu thereof ``Section 8433(b)'';
            (2) in subsection (b)(5) by striking out ``retirement under 
        section 178 of title 28, is'' and inserting in lieu thereof 
        ``any of the actions described in paragraph (4) (A) or (B) 
        shall be considered'';
            (3) in subsection (b) by striking out paragraph (8) and 
        redesignating paragraph (9) as paragraph (8); and
            (4) in paragraph (8) (as redesignated under paragraph (3) 
        of this subsection) by striking out ``Notwithstanding paragraph 
        (4)(A)'' and inserting in lieu thereof ``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 out 
``A transfer shall be made as provided under section 8433(d) of this 
title'' and inserting in lieu thereof ``Section 8433(b) of this title 
applies''.
    (i) Technical and Conforming Amendments.--Chapters 83 and 84 of 
title 5, United States Code, are amended--
            (1) in section 8351(b)(5)(B) (as redesignated under 
        subsection (a)(3) of this section) by striking out ``section 
        8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
            (2) in section 8351(b)(5)(D) (as redesignated under 
        subsection (a)(3) of this section) by striking out ``section 
        8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
            (3) in section 8433(b)(4) by striking out ``subsection 
        (e)'' and inserting in lieu thereof ``subsection (c)'';
            (4) in section 8433(d)(1) (as redesignated under subsection 
        (b)(2) of this section) by striking out ``(d) of section 8435'' 
        and inserting in lieu thereof ``(c) of section 8435'';
            (5) in section 8433(d)(2) (as redesignated under subsection 
        (b)(2) of this section) by striking out ``section 8435(d)'' and 
        inserting in lieu thereof ``section 8435(c)'';
            (6) in section 8433(e) (as redesignated under subsection 
        (b)(2) of this section) by striking out ``section 8435(d)(2)'' 
        and inserting in lieu thereof ``section 8435(c)(2)'';
            (7) in section 8433(g)(5) (as redesignated under subsection 
        (b)(2) of this section) by striking out ``section 8435(f)'' and 
        inserting in lieu thereof ``section 8435(e)'';
            (8) in section 8434(b) by striking out ``section 8435(c)'' 
        and inserting in lieu thereof ``section 8435(b)'';
            (9) in section 8435(a)(1)(B) by striking out ``subsection 
        (c)'' and inserting in lieu thereof ``subsection (b)'';
            (10) in section 8435(d)(1)(B) (as redesignated under 
        subsection (d)(3) of this section) by striking out ``subsection 
        (d)(2)'' and inserting in lieu thereof ``subsection (c)(2)'';
            (11) in section 8435(d)(3)(A) (as redesignated under 
        subsection (d)(3) of this section) by striking out ``subsection 
        (c)(1)'' and inserting in lieu thereof ``subsection (b)(1)'';
            (12) in section 8435(d)(6) (as redesignated under 
        subsection (d)(3) of this section) by striking out ``or 
        (c)(2)'' and inserting in lieu thereof ``or (b)(2)'';
            (13) in section 8435(e)(1)(A) (as redesignated under 
        subsection (d)(3) of this section) by striking out ``section 
        8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
            (14) in section 8435(e)(2) (as redesignated under 
        subsection (d)(3) of this section) by striking out ``section 
        8433(i) of this title shall not be approved if approval would 
        have the result described in subsection (d)(1)'' and inserting 
        in lieu thereof ``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 redesignated under subsection 
        (d)(3) of this section) by striking out ``section 8433(i)'' and 
        inserting in lieu thereof ``section 8433(g)'';
            (16) in section 8437(c)(5) by striking out ``section 
        8433(i)'' and inserting in lieu thereof ``section 8433(g)''; 
        and
            (17) in section 8440a(b)(6) by striking out ``section 
        8351(b)(7)'' and inserting in lieu thereof ``section 
        8351(b)(5)''.
    (j) Interim Provision.--Section 8433(d) of title 5, United States 
Code, is amended by striking out ``shall transfer the amount of the 
balance'' and inserting in lieu thereof ``may transfer the amount of 
the balance''.
    (k) Effective Dates.--(1) Except as provided in paragraph (2), the 
provisions of this section shall take effect 1 year after the date of 
enactment of this Act or upon such other date as the Executive Director 
of the Federal Retirement Thrift Investment Board shall provide in 
regulation.
    (2) The provisions of subsection (j) of this section shall take 
effect upon the date of the enactment of this Act.

SEC. 9. 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 thereof the following new paragraph:
            ``(4)(A) The State-owned railroad shall be included in the 
        definition of `agency' for purposes of section 3 (a), (b), (c), 
        and (e) and section 5 of the Federal Workforce Restructuring 
        Act of 1993 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 of 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 
        employment is in a position for which there is exceptional 
        difficulty in recruiting a qualified employee and waives the 
        repayment.''.
    (b) Life and Health Insurance Benefits.--Section 607 of the Alaska 
Railroad Transfer Act of 1982 (45 U.S.C. 1206) is amended by striking 
out subsection (e) and inserting in lieu thereof 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 1993, 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.''.
S 1535 RS----2
S 1535 RS----3
```