(B) by inserting ‘‘of such former employee
or Member’’ after ‘‘the surviving spouse’’;
(2) in paragraph (1)—
(A) by inserting ‘‘former employee or’’ be-
fore ‘‘Member commencing’’; and
(B) by inserting ‘‘former employee or’’ be-
fore ‘‘Member dies’’; and
(3) in the undesignated sentence following para-
graph (2)—
(A) in the matter preceding subparagraph
(A) by inserting ‘‘former employee or’’ before
‘‘Member’’; and
(B) in subparagraph (B) by inserting
‘‘former employee or’’ before ‘‘Member’’.
(b) BENEFITS
FOR
FORMER
SPOUSE.—Section
8341(h) of title 5, United States Code, is amended—
(1) in paragraph (1) by adding after the first
sentence ‘‘Subject to paragraphs (2) through (5) of
this subsection, a former spouse of a former em-
ployee who dies after having separated from the
service with title to a deferred annuity under section
8338(a) but before having established a valid claim
for annuity is entitled to a survivor annuity under
this subsection, if and to the extent expressly pro-
vided for in an election under section 8339(j)(3) of
this title, or in the terms of any decree of divorce
or annulment or any court order or court-approved
property settlement agreement incident to such de-
cree.’’; and
(2) in paragraph (2)—
(A) in subparagraph (A)(ii) by striking ‘‘or
annuitant,’’ and inserting ‘‘annuitant, or former
employee’’; and
(B) in subparagraph (B)(iii) by inserting
‘‘former employee or’’ before ‘‘Member’’.
(c) PROTECTION OF SURVIVOR BENEFIT RIGHTS.—
Section 8339(j)(3) of title 5, United States Code, is
amended by inserting at the end the following:
‘‘The Office shall provide by regulation for the appli-
cation of this subsection to the widow, widower, or surviv-
ing former spouse of a former employee who dies after
having separated from the service with title to a deferred
annuity under section 8338(a) but before having estab-
lished a valid claim for annuity.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act and shall apply only in the case of a former
employee who dies on or after such date.
SEC. 304. COURT ORDERS RELATING TO FEDERAL RETIRE-
MENT BENEFITS FOR FORMER SPOUSES OF
FEDERAL EMPLOYEES.
(a) CIVIL SERVICE RETIREMENT SYSTEM.—
(1) IN GENERAL.—Section 8345(j) of title 5,
United States Code, is amended—
(A) by redesignating paragraph (3) as
paragraph (4); and
(B) by inserting after paragraph (2) the
following new paragraph:
‘‘(3) Payment to a person under a court decree, court
order, property settlement, or similar process referred to
under paragraph (1) shall include payment to a former
spouse of the employee, Member, or annuitant.’’.
(2) LUMP-SUM
BENEFITS.—Section 8342 of
title 5, United States Code, is amended—
(A) in subsection (c) by striking ‘‘Lump-
sum benefits’’ and inserting ‘‘Subject to sub-
section (j), lump-sum benefits’’; and
(B) in subsection (j)(1) by striking ‘‘the
lump-sum credit under subsection (a) of this
section’’ and inserting ‘‘any lump-sum credit or
lump-sum benefit under this section’’.
(b) FEDERAL EMPLOYEES RETIREMENT SYSTEM.—
Section 8467 of title 5, United States Code, is amended—
(1) by redesignating subsection (c) as sub-
section (d); and
(2) by inserting after subsection (b) the follow-
ing new subsection:
‘‘(c) Payment to a person under a court decree, court
order, property settlement, or similar process referred to
under subsection (a) shall include payment to a former
spouse of the employee, Member, or annuitant.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
SEC. 305. PREVENTION OF CIRCUMVENTION OF COURT
ORDER BY WAIVER OF RETIRED PAY TO EN-
HANCE CIVIL SERVICE RETIREMENT ANNU-
ITY.
(a) CIVIL SERVICE RETIREMENT AND DISABILITY
SYSTEM.—(1) Subsection (c) of section 8332 of title 5,
United States Code, is amended by adding at the end the
following:
‘‘(4) If an employee or Member waives retired pay
that is subject to a court order for which there has been
effective service on the Secretary concerned for purposes
of section 1408 of title 10, the military service on which
the retired pay is based may be credited as service for
purposes of this subchapter only if, in accordance with
regulations prescribed by the Director of the Office of Per-
sonnel Management, the employee or Member authorizes
the Director to deduct and withhold from the annuity pay-
able to the employee or Member under this subchapter,
and to pay to the former spouse covered by the court
order, the same amount that would have been deducted
and withheld from the employee’s or Member’s retired pay
and paid to that former spouse under such section 1408.’’.
(2) Paragraph (1) of such subsection is amended by
striking out ‘‘Except as provided in paragraph (2)’’ and
inserting ‘‘Except as provided in paragraphs (2) and (4)’’.
(b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—
(1) Subsection (c) of section 8411 of title 5, United States
Code, is amended by adding at the end the following:
‘‘(5) If an employee or Member waives retired pay
that is subject to a court order for which there has been
effective service on the Secretary concerned for purposes
of section 1408 of title 10, the military service on which
the retired pay is based may be credited as service for
purposes of this chapter only if, in accordance with regula-
tions prescribed by the Director of the Office of Personnel
Management, the employee or Member authorizes the Di-
rector to deduct and withhold from the annuity payable
to the employee or Member under this subchapter, and
to pay to the former spouse covered by the court order,
the same amount that would have been deducted and with-
held from the employee’s or Member’s retired pay and
paid to that former spouse under such section 1408.’’.
(2) Paragraph (1) of such subsection is amended by
striking out ‘‘Except as provided in paragraph (2) or (3)’’
and inserting ‘‘Except as provided in paragraphs (2), (3),
and (5)’’.
(c) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on January 1, 1997.
TITLE IV—EMPLOYER
REVERSIONS
SEC. 401. INCREASE IN EXCISE TAX ON REVERSIONS.
(a) IN GENERAL.—Section 4980 of the Internal Rev-
enue Code of 1986 (relating to tax on reversion of quali-
fied plan assets to employer) is amended—
(1) in subsection (a), by striking ‘‘20 percent’’
and inserting ‘‘35 percent’’; and
(2) in subsection (d)(1), by striking ‘‘substitut-
ing ‘50 percent’ for ‘20 percent’ with respect to any
employer reversion’’ and inserting ‘‘substituting ‘65
percent’ for ‘35 percent’ with respect to any em-
ployer reversion’’.
SEC. 402. REVERSION REPORT.
(a) IN GENERAL.—Section 4008 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1308)
is amended by adding at the end the following new sub-
section:
‘‘(b) REVERSION REPORT.—As soon as practicable
after the close of each fiscal year, the Secretary of Labor
(acting in the Secretary’s capacity as chairman of the cor-
poration’s board) shall transmit to the President and the
Congress a report providing information on plans from
which residual assets were distributed to employers pursu-
ant to section 4044(d).’’
(b) CONFORMING AMENDMENT.—Section 4008 (29
U.S.C. 1308) is amended by striking ‘‘SEC. 4008.’’ and
inserting ‘‘SEC. 4008. (a) ANNUAL REPORT.—’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to fiscal years beginning after Sep-
tember 30, 1996.
Æ