I 

108TH CONGRESS 

1ST SESSION H. R. 432

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 28, 2003

Ms. VELA ́ZQUEZ (for herself, Mr. SERRANO, Mr. OWENS, and Ms. BERKLEY) 

introduced the following bill; which was referred to the Committee on 

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,
2

•HR 432 IH 

1 SECTION 1. INDEXATION OF DEFERRED ANNUITIES. 

2 (a) AMENDMENTS TO SUBCHAPTER III OF CHAPTER

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

4 amended—

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

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

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

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

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

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

11 percentage adjustments (compounded) in rates of pay of 

12 the General Schedule taking effect during the period—

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

14 separation on which title to annuity is based, and 

15 ‘‘(B) ending on the day before the commence16 ment date of such annuity. 

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

18 dies after having separated from the service with title to 

19 an annuity authorized by this section but before having 

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

21 used in the computation of any survivor annuity payable 

22 based on the service of such former employee or Member 

23 shall be increased in the manner described in paragraph 

24 (1), except that, in applying subparagraph (B) of para25 graph (1) for purposes of this paragraph, the commence26 ment date of such survivor annuity shall be used instead 
3

•HR 432 IH 

1 of the commencement date of the annuity referred to in 

2 such subparagraph. 

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

4 of any adjustment under this subsection to an amount 

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

6 before the commencement date of the annuity or survivor 

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

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

9 highest rate of pay taken into account in computing such 

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

11 regulations of the Office.’’. 

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

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

14 end the following: 

15 ‘‘(l)(1) The average pay used in the computation of 

16 a deferred annuity under section 8413 shall be equal to 

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

18 by the percentage adjustments (compounded) in rates of 

19 pay of the General Schedule taking effect during the pe20 riod—

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

22 separation on which title to annuity is based, and 

23 ‘‘(B) ending on the day before the commence24 ment date of such annuity. 
4

•HR 432 IH 

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

2 dies after having separated from the service with title to 

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

4 having established a valid claim for such annuity, the aver5 age pay used in the computation of any survivor annuity 

6 payable based on the service of such former employee or 

7 Member shall be increased in the manner described in 

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

9 of paragraph (1) for purposes of this paragraph, the com10 mencement date of such survivor annuity shall be used 

11 instead of the commencement date of the annuity referred 

12 to in such subparagraph. 

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

14 of any adjustment under this subsection to an amount 

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

16 before the commencement date of the annuity or survivor 

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

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

19 highest rate of pay taken into account in computing such 

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

21 regulations of the Office.’’. 

22 (c) AMENDMENTS RELATING TO INDIVIDUALS BE23 COMING SUBJECT TO FERS BY ELECTION.—

24 (1) COMPUTATION OF A DEFERRED ANNUITY.—

25 Paragraph (6) of section 302(a) of the Federal Em-
5

•HR 432 IH 

1 ployees’ Retirement System Act of 1986 (5 U.S.C. 

2 8331 note) is amended by adding at the end the fol3 lowing: 

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

5 paragraph for purposes of computing a deferred an6 nuity under section 8413 of such title—

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

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

9 that such annuity is computed under paragraph 

10 (4); and 

11 ‘‘(ii) the provisions of section 8415(l)(1) 

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

13 that such annuity is computed under paragraph 

14 (5).’’. 

15 (2) COMPUTATION OF A SURVIVOR ANNUITY.—

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

17 striking ‘‘(9)’’ and inserting ‘‘(9)(A)’’, and by add18 ing at the end the following: 

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

20 (3) for purposes of determining the amount of a sur21 vivor annuity under subchapter IV of chapter 84 of 

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

23 entitled based on the service of a former employee 

24 or Member who dies in the circumstances described 

25 in section 8415(l)(2) of such title—
6

•HR 432 IH 

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

2 extent that such annuity is computed under 

3 paragraph (4); and 

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

5 the extent that such annuity is computed under 

6 paragraph (5).’’. 

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

8 8331(10) of title 5, United States Code, is amended by 

9 inserting ‘‘former employee or Member,’’ before ‘‘or annu10 itant’’. 

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

12 is amended by striking ‘‘or former Member who was sepa13 rated from the service with title to a deferred annuity 

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

15 former employee or Member who died after having sepa16 rated from the service with title to a deferred annuity 

17 under section 8338 but before having established a valid 

18 claim for annuity,’’. 

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

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

21 and inserting ‘‘an employee or Member’’. 
7

•HR 432 IH 

1 SEC. 2. 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. 
8

•HR 432 IH 

1 Notwithstanding the preceding sentence, an annuity pay2 able under this subsection to the widow or widower of a 

3 former employee or Member may not exceed the difference 

4 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. 3. EFFECTIVE DATES. 

12 (a) AMENDMENTS MADE BY SECTION 1.—

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

14 section 1 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 1 only if application 

25 therefor is made within 12 months after the ef-
9

•HR 432 IH 

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 2.—The amend11 ment made by section 2 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 2 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 
10

•HR 432 IH 

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

2 claim therefor) have been entitled to such annuity had sec3 tion 2 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