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Secretary. For purposes of this subparagraph,
deductions allowable under section 1253(d) shall
be treated as deductions allowable for amortiza-
tion.
‘‘(B) EXCEPTION
WHERE
GAIN
RECOG-
NIZED.—If—
‘‘(i) subparagraph (A) would not
apply to an intangible acquired by the tax-
payer but for the last sentence of subpara-
graph (C)(i), and
‘‘(ii) the person from whom the tax-
payer acquired the intangible elects, not-
withstanding any other provision of this
title—
‘‘(I) to recognize gain on the dis-
position of the intangible, and
‘‘(II) to pay a tax on such gain
which, when added to any other in-
come tax on such gain under this title,
equals such gain multiplied by the
highest rate of income tax applicable to
such person under this title,
then subparagraph (A) shall apply to the
intangible only to the extent that the tax-
payer’s adjusted basis in the intangible ex-
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ceeds the gain recognized under clause
(ii)(I).
‘‘(C) RELATED
PERSON
DEFINED.—For
purposes of this paragraph—
‘‘(i) RELATED
PERSON.—A person
(hereinafter in this paragraph referred to as
the ‘related person’) is related to any person
if—
‘‘(I) the related person bears a re-
lationship to such person specified in
section 267(b) or section 707(b)(1), or
‘‘(II) the related person and such
person are engaged in trades or busi-
nesses under common control (within
the meaning of subparagraphs (A) and
(B) of section 41(f)(1)).
For purposes of subclause (I), in applying
section 267(b) or 707(b)(1), ‘20 percent’
shall be substituted for ‘50 percent’.
‘‘(ii) TIME FOR MAKING DETERMINA-
TION.—A person shall be treated as related
to another person if such relationship exists
immediately before or immediately after the
acquisition of the intangible involved.
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‘‘(D) 
ACQUISITIONS
BY
REASON
OF
DEATH.—Subparagraph (A) shall not apply to
the acquisition of any property by the taxpayer
if the basis of the property in the hands of the
taxpayer is determined under section 1014(a).
‘‘(E) SPECIAL RULE FOR PARTNERSHIPS.—
With respect to any increase in the basis of part-
nership property under section 732, 734, or 743,
determinations under this paragraph shall be
made at the partner level and each partner shall
be treated as having owned and used such part-
ner’s proportionate share of the partnership as-
sets.
‘‘(F) ANTI-ABUSE RULES.—The term ‘amor-
tizable section 197 intangible’ does not include
any section 197 intangible acquired in a trans-
action, one of the principal purposes of which is
to avoid the requirement of subsection (c)(1) that
the intangible be acquired after the date of the
enactment of this section or to avoid the provi-
sions of subparagraph (A).
‘‘(g) SPECIAL RULES FOR ACQUISITION OF CERTAIN
COMPUTER SOFTWARE BUSINESSES.—
‘‘(1) IN GENERAL.—In the case of any section
197 intangible acquired in a transaction to which
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this subsection applies, subsection (a) shall be applied
with respect to one-half of the 75 percent of its ad-
justed basis which is amortizable under subsection (a)
by substituting ‘5-year period’ for ‘14-year period’.
‘‘(2) TRANSACTIONS TO WHICH SUBSECTION AP-
PLIES.—
‘‘(A) IN
GENERAL.—This subsection shall
apply to a transaction (or series of related trans-
actions) involving the acquisition of assets con-
stituting a trade or business or substantial por-
tion thereof if—
‘‘(i) the principal business activity of
the trade or business (or portion) is com-
puter software development, computer sales,
licensing, or leasing, the provision of com-
puter software services, or a combination
thereof, and
‘‘(ii) during the testing period, the ag-
gregate computer software development costs
of such trade or business (or portion) are
not less than 17 percent of the greater of—
‘‘(I) the aggregate gross receipts of
such trade or business (or portion), or
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‘‘(II) the aggregate gross expendi-
tures of such trade or business (or por-
tion).
‘‘(B) COMPUTER SOFTWARE DEVELOPMENT
COSTS.—For purposes of subparagraph (A), the
term ‘computer software development costs’
means the sum of—
‘‘(i) the computer software development
costs which qualify as research and experi-
mentation expenditures under section 174,
plus
‘‘(ii) the amortization deductions of the
trade or business with respect to computer
software not acquired in a transaction (or
series of related transactions) involving the
acquisition of assets constituting a trade or
business or substantial portion thereof.
‘‘(C) TESTING
PERIOD.—For purposes of
subparagraph (A), the term ‘testing period’
means the 5-year period ending on the date of
the last transaction described in subparagraph
(A) pursuant to which the section 197 intangible
was acquired (or, if shorter, the entire period of
existence of the trade or business (or portion) be-
fore such date).
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‘‘(h) REGULATIONS.—The Secretary shall prescribe
such regulations as may be appropriate to carry out the
purposes of this section, including such regulations as may
be appropriate to prevent avoidance of the purposes of this
section through related persons or otherwise.’’
(b) MODIFICATIONS TO DEPRECIATION RULES.—
(1) TREATMENT
OF
CERTAIN
PROPERTY
EX-
CLUDED FROM SECTION 197.—Section 167 (relating to
depreciation deduction) is amended by redesignating
subsection (f) as subsection (g) and by inserting after
subsection (e) the following new subsection:
‘‘(f) TREATMENT OF CERTAIN PROPERTY EXCLUDED
FROM SECTION 197.—
‘‘(1) COMPUTER SOFTWARE.—
‘‘(A) IN GENERAL.—If a depreciation de-
duction is allowable under subsection (a) with
respect to any computer software, such deduction
shall be computed by using the straight line
method and a useful life of 36 months.
‘‘(B) COMPUTER SOFTWARE.—For purposes
of this section, the term ‘computer software’ has
the meaning given to such term by section
197(e)(3)(B); except that such term shall not in-
clude any such software which is an amortizable
section 197 intangible.
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‘‘(2) CERTAIN INTERESTS OR RIGHTS ACQUIRED
SEPARATELY.—If a depreciation deduction is allow-
able under subsection (a) with respect to any property
described in subparagraph (B), (C), or (D) of section
197(e)(4), such deduction shall be computed in ac-
cordance with regulations prescribed by the Secretary.
‘‘(3) MORTGAGE SERVICING RIGHTS.—If a depre-
ciation deduction is allowable under subsection (a)
with respect to any right described in section
197(e)(7), such deduction shall be computed by using
the straight line method and a useful life of 108
months.’’
(2) ALLOCATION OF BASIS IN CASE OF LEASED
PROPERTY.—Subsection (c) of section 167 is amended
to read as follows:
‘‘(c) BASIS FOR DEPRECIATION.—
‘‘(1) IN GENERAL.—The basis on which exhaus-
tion, wear and tear, and obsolescence are to be al-
lowed in respect of any property shall be the adjusted
basis provided in section 1011, for the purpose of de-
termining the gain on the sale or other disposition of
such property.
‘‘(2) SPECIAL RULE FOR PROPERTY SUBJECT TO
LEASE.—If any property is acquired subject to a
lease—
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‘‘(A) no portion of the adjusted basis shall
be allocated to the leasehold interest, and
‘‘(B) the entire adjusted basis shall be taken
into account in determining the depreciation de-
duction (if any) with respect to the property sub-
ject to the lease.’’
(c) AMENDMENTS TO SECTION 1253.—Subsection (d)
of section 1253 is amended by striking paragraphs (2), (3),
(4), and (5) and inserting the following:
‘‘(2) OTHER PAYMENTS.—Any amount paid or
incurred on account of a transfer, sale, or other dis-
position of a franchise, trademark, or trade name to
which paragraph (1) does not apply shall be treated
as an amount chargeable to capital account.
‘‘(3) RENEWALS, ETC.—For purposes of deter-
mining the term of a transfer agreement under this
section, there shall be taken into account all renewal
options (and any other period for which the parties
reasonably expect the agreement to be renewed).’’
(d) AMENDMENT TO SECTION 848.—Subsection (g) of
section 848 is amended by striking ‘‘this section’’ and in-
serting ‘‘this section or section 197’’.
(e) AMENDMENTS TO SECTION 1060.—
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(1) Paragraph (1) of section 1060(b) is amended
by striking ‘‘goodwill or going concern value’’ and in-
serting ‘‘section 197 intangibles’’.
(2) Paragraph (1) of section 1060(d) is amended
by striking ‘‘goodwill or going concern value (or simi-
lar items)’’ and inserting ‘‘section 197 intangibles’’.
(f) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Subsection (g) of section 167 (as redesignated
by subsection (b)) is amended to read as follows:
‘‘(g) CROSS REFERENCES.—
‘‘(1) For additional rule applicable to depreciation
of improvements in the case of mines, oil and gas
wells, other natural deposits, and timber, see section
611.
‘‘(2) For amortization of goodwill and certain other
intangibles, see section 197.’’
(2) Subsection (f) of section 642 is amended by
striking ‘‘section 169’’ and inserting ‘‘sections 169
and 197’’.
(3) Subsection (a) of section 1016 is amended by
striking paragraph (19) and by redesignating the fol-
lowing paragraphs accordingly.
(4) Subparagraph (C) of section 1245(a)(2) is
amended by striking ‘‘193, or 1253(d) (2) or (3)’’ and
inserting ‘‘or 193’’.
(5) Paragraph (3) of section 1245(a) is amended
by striking ‘‘section 185 or 1253(d) (2) or (3)’’.
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(6) The table of sections for part VI of sub-
chapter B of chapter 1 is amended by adding at the
end thereof the following new item:
‘‘Sec. 197. Amortization of goodwill and certain other intangibles.’’.
(g) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as otherwise provided
in this subsection, the amendments made by this sec-
tion shall apply with respect to property acquired
after the date of the enactment of this Act.
(2) ELECTION TO HAVE AMENDMENTS APPLY TO
PROPERTY ACQUIRED AFTER JULY 25, 1991.—
(A) IN GENERAL.—If an election under this
paragraph applies to the taxpayer—
(i) the amendments made by this sec-
tion shall apply to property acquired by the
taxpayer after July 25, 1991,
(ii) subsection (c)(1)(A) of section 197
of the Internal Revenue Code of 1986 (as
added by this section) (and so much of sub-
section (f)(9)(A) of such section 197 as pre-
cedes clause (i) thereof) shall be applied
with respect to the taxpayer by treating
July 25, 1991, as the date of the enactment
of such section, and
(iii) in applying subsection (f)(9) of
such section, with respect to any property
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acquired by the taxpayer on or before the
date of the enactment of this Act, only hold-
ing or use on July 25, 1991, shall be taken
into account.
(B) ELECTION.—An election under this
paragraph shall be made at such time and in
such manner as the Secretary of the Treasury or
his delegate may prescribe. Such an election by
any taxpayer, once made—
(i) may be revoked only with the con-
sent of the Secretary, and
(ii) shall apply to the taxpayer making
such election and any other taxpayer under
common control with the taxpayer (within
the meaning of subparagraphs (A) and (B)
of section 41(f)(1) of such Code) at any time
after November 22, 1991, and on or before
the date on which such election is made.
(3) ELECTIVE BINDING CONTRACT EXCEPTION.—
(A) IN GENERAL.—The amendments made
by this section shall not apply to any acquisition
of property by the taxpayer if—
(i) such acquisition is pursuant to a
written binding contract in effect on the
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date of the enactment of this Act and at all
times thereafter before such acquisition,
(ii) an election under paragraph (2)
does not apply to the taxpayer, and
(iii) the taxpayer makes an election
under this paragraph with respect to such
contract.
(B) ELECTION.—An election under this
paragraph shall be made at such time and in
such manner as the Secretary of the Treasury or
his delegate shall prescribe. Such an election,
once made—
(i) may be revoked only with the con-
sent of the Secretary, and
(ii) shall apply to all property ac-
quired pursuant to the contract with respect
to which such election was made.
SEC. 8262. TREATMENT OF CERTAIN PAYMENTS TO RE-
TIRED OR DECEASED PARTNER.
(a) SECTION 736(b) NOT TO APPLY
IN CERTAIN
CASES.—Subsection (b) of section 736 (relating to pay-
ments for interest in partnership) is amended by adding
at the end thereof the following new paragraph:
‘‘(3) LIMITATION
ON
APPLICATION
OF
PARA-
GRAPH (2).—Paragraph (2) shall apply only if—
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‘‘(A) capital is not a material income-pro-
ducing factor for the partnership, and
‘‘(B) the retiring or deceased partner was a
general partner in the partnership.’’
(b) LIMITATION ON DEFINITION OF UNREALIZED RE-
CEIVABLES.—
(1) IN GENERAL.—Subsection (c) of section 751
(defining unrealized receivables) is amended—
(A) by striking ‘‘sections 731, 736, and
741’’ each place they appear and inserting ‘‘,
sections 731 and 741 (but not for purposes of
section 736)’’, and
(B) by striking ‘‘section 731, 736, or 741’’
each place it appears and inserting ‘‘section 731
or 741’’.
(2) TECHNICAL AMENDMENTS.—
(A) Subsection (e) of section 751 is amended
by striking ‘‘sections 731, 736, and 741’’ and in-
serting ‘‘sections 731 and 741’’.
(B) Section 736 is amended by striking sub-
section (c).
(c) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendments made by
this section shall apply in the case of partners retir-
ing or dying on or after January 5, 1993.
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(2) 
BINDING
CONTRACT
EXCEPTION.—The
amendments made by this section shall not apply to
any partner retiring on or after January 5, 1993, if
a written contract to purchase such partner’s interest
in the partnership was binding on January 4, 1993,
and at all times thereafter before such purchase.
PART VII—MISCELLANEOUS PROVISIONS
SEC. 8271. DENIAL OF DEDUCTION RELATING TO TRAVEL
EXPENSES.
(a) IN GENERAL.—Section 274(m) (relating to addi-
tional limitations on travel expenses) is amended by adding
at the end thereof the following new paragraph:
‘‘(3) TRAVEL EXPENSES OF SPOUSE, DEPEND-
ENT, OR
OTHERS.—No deduction shall be allowed
under this chapter (other than section 217) for travel
expenses paid or incurred with respect to a spouse,
dependent, or other individual accompanying the tax-
payer (or an officer or employee of the taxpayer) on
business travel, unless—
‘‘(A) the spouse, dependent, or other indi-
vidual is an employee of the taxpayer,
‘‘(B) the travel of the spouse, dependent, or
other individual is for a bona fide business pur-
pose, and
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‘‘(C) such expenses would otherwise be de-
ductible by the spouse, dependent, or other indi-
vidual.’’
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to amounts paid or incurred after De-
cember 31, 1993.
SEC. 8272. INCREASE IN WITHHOLDING FROM SUPPLE-
MENTAL WAGE PAYMENTS.
If an employer elects under Treasury Regulation
31.3402(g)–1 to determine the amount to be deducted and
withheld from any supplemental wage payment by using
a flat percentage rate, the rate to be used in determining
the amount to be so deducted and withheld shall not be less
than 28 percent. The preceding sentence shall apply to pay-
ments made after December 31, 1993.
SEC. 8273. EXCISE TAX ON CERTAIN VACCINES MADE PER-
MANENT.
(a) TAX.—Subsection (c) of section 4131 (relating to
tax on certain vaccines) is amended to read as follows:
‘‘(c) APPLICATION OF SECTION.—The tax imposed by
this section shall apply—
‘‘(1) after December 31, 1987, and before Janu-
ary 1, 1993, and
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‘‘(2) during periods after the date of the enact-
ment of the Omnibus Budget Reconciliation Act of
1993.’’
(b) TRUST FUND.—Paragraph (1) of section 9510(c)
(relating to expenditures from Vaccine Injury Compensa-
tion Trust Fund) is amended by striking ‘‘and before Octo-
ber 1, 1992,’’.
(c) FLOOR STOCKS TAX.—
(1) IMPOSITION OF TAX.—On any taxable vac-
cine—
(A) which was sold by the manufacturer,
producer, or importer before the date of the en-
actment of this Act,
(B) on which no tax was imposed by section
4131 of the Internal Revenue Code of 1986 (or,
if such tax was imposed, was credited or re-
funded), and
(C) which is held on such date by any per-
son for sale or use,
there is hereby imposed a tax in the amount deter-
mined under section 4131(b) of such Code.
(2) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.—
(A) LIABILITY FOR TAX.—The person hold-
ing any taxable vaccine to which the tax im-
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posed by paragraph (1) applies shall be liable for
such tax.
(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such
manner as the Secretary shall prescribe by regu-
lations.
(C) TIME FOR PAYMENT.—The tax imposed
by paragraph (1) shall be paid on or before the
last day of the 6th month beginning after the
date of the enactment of this Act.
(3) DEFINITIONS.—For purposes of this sub-
section, terms used in this subsection which are also
used in section 4131 of such Code shall have the re-
spective meanings such terms have in such section.
(4) OTHER LAWS APPLICABLE.—All provisions of
law, including penalties, applicable with respect to
the taxes imposed by section 4131 of such Code shall,
insofar as applicable and not inconsistent with the
provisions of this subsection, apply to the floor stocks
taxes imposed by paragraph (1), to the same extent
as if such taxes were imposed by such section 4131.
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TITLE IX—COMMITTEE ON
FOREIGN RELATIONS
SEC. 9001. DELAY IN COST-OF-LIVING ADJUSTMENTS IN
FOREIGN SERVICE RETIREMENT BENEFITS
DURING FISCAL YEARS 1994, 1995, AND 1996.
(a) APPLICABILITY.—This section shall apply with re-
spect to any cost-of-living increase scheduled to take effect
under section 826 or 858 of the Foreign Service Act of 1980
during fiscal year 1994, 1995, or 1996.
(b) DELAY IN EFFECTIVE DATE OF ADJUSTMENTS.—
A cost-of-living increase described in subsection (a) shall
not take effect until the first day of the third calendar
month after the date such increase would take effect but for
this subsection.
(c) RULE OF CONSTRUCTION.—
(1) SIZE
OF
COST-OF-LIVING
ADJUSTMENT.—
Nothing in this section shall be considered to affect
the size of the cost-of-living adjustment under section
8340(b) or section 8462(b) of title 5, United States
Code, in the same fiscal year as a cost-of-living in-
crease described in subsection (a).
(2) DETERMINATIONS
OF
ELIGIBILITY.—The
delay in the effective date of cost-of-living adjustments
under subsection (b) shall not affect any determina-
tion relating to eligibility for an annuity increase or
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the amount of the first increase in an annuity under
section 826 or 858 of the Foreign Service Act of 1980.
SEC. 9002. ELIMINATION OF THE ALTERNATIVE-FORM-OF-
ANNUITY 
OPTION 
UNDER 
THE 
FOREIGN
SERVICE RETIREMENT AND DISABILITY SYS-
TEM EXCEPT FOR INDIVIDUALS WITH CRITI-
CAL MEDICAL CONDITIONS.
(a) IN GENERAL.—Section 807(e)(1) of the Foreign
Service Act of 1980 (22 U.S.C. 4047(e)(1)) is amended by
striking ‘‘a participant may,’’ and inserting ‘‘any partici-
pant who has a life-threatening affliction or other critical
medical condition may,’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect January 1, 1994.
TITLE X—COMMITTEE ON
GOVERNMENTAL AFFAIRS
Subtitle A—Civil Service
SEC. 10001. DELAY IN COST-OF-LIVING ADJUSTMENTS IN
FEDERAL EMPLOYEE RETIREMENT BENEFITS
DURING FISCAL YEARS 1994, 1995, AND 1996.
(a) APPLICABILITY.—This section shall apply with re-
spect to any cost-of-living increase scheduled to take effect,
during fiscal year 1994, 1995, or 1996, under—
(1) section 8340(b) or 8462(b) of title 5, United
States Code; or
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(2) section 291 of the Central Intelligence Agency
Retirement Act (50 U.S.C. 2131), as set forth in sec-
tion 802 of the CIARDS Technical Corrections Act of
1992 (Public Law 102–496; 106 Stat. 3196).
(b) DELAY IN EFFECTIVE DATE OF ADJUSTMENTS.—
A cost-of-living increase described in subsection (a) shall
not take effect until the first day of the third calendar
month after the date such increase would otherwise take ef-
fect.
(c) RULE OF CONSTRUCTION.—Nothing in this section
shall be considered to affect any determination relating to
eligibility for an annuity increase or the amount of the first
increase in an annuity under section 8340(b) or (c) or sec-
tion 8462 (b) or (c) of title 5, United States Code, or com-
parable provisions of law.
SEC. 10002. PERMANENT ELIMINATION OF THE ALTER-
NATIVE-FORM-OF-ANNUITY OPTION EXCEPT
FOR INDIVIDUALS WITH A CRITICAL MEDICAL
CONDITION.
(a) CIVIL SERVICE RETIREMENT SYSTEM; FEDERAL
EMPLOYEES’ RETIREMENT SYSTEM.—Sections 8343a and
8420a of title 5, United States Code, are each amended—
(1) in subsection (a) by striking ‘‘an employee or
Member may,’’ and inserting ‘‘any employee or Mem-
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ber who has a life-threatening affliction or other criti-
cal medical condition may,’’; and
(2) by striking subsection (f).
(b) CENTRAL INTELLIGENCE AGENCY RETIREMENT
AND DISABILITY SYSTEM.—Section 294(a) of the Central
Intelligence Agency Retirement Act (50 U.S.C. 2143(a)), as
set forth in section 802 of the CIARDS Technical Correc-
tions Act of 1992 (Public Law 102–496; 106 Stat. 3196),
is amended by striking ‘‘a participant may,’’ and inserting
‘‘any participant who has a life-threatening affliction or
other critical medical condition may,’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall become effective on October 1, 1995, and shall
apply with respect to any annuity commencing on or after
that date.
SEC. 10003. DISTRICT OF COLUMBIA GOVERNMENT CON-
TRIBUTIONS FOR CERTAIN EMPLOYEE AND
ANNUITANT HEALTH BENEFITS.
(a) CONTRIBUTIONS AFTER 1993.—
(1) IN
GENERAL.—Section 8906(g) of title 5,
United States Code, is amended by adding at the end
thereof the following new paragraph:
‘‘(3) The Government contributions authorized
by this section for health benefits for an annuitant
shall be paid by the government of the District of Co-
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lumbia, in the case of an annuitant whose eligibility
for an annuity is based on a separation from service
with such government, or who is a survivor of such
an annuitant or a survivor of an employee who died
while employed by such government.’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect on October 1, 1993,
and shall apply with respect to amounts payable for
periods beginning on or after that date.
(b) CONTRIBUTIONS FOR PERIOD BETWEEN 1975 AND
1993.—
(1) IN GENERAL.—The government of the Dis-
trict of Columbia shall pay into the Employees
Health Benefit Fund, as payment for any amounts
which would, for the period beginning on January 1,
1975 through September 30, 1993, have been payable
under the provisions of section 8906(g)(3) of title 5,
United States Code (as added by subsection (a)(1) of
this section) if such provision had been in effect as of
January 1, 1975, of which—
(A) at least 25 percent of the total of such
amounts shall be paid no later than January 1,
1994;
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(B) at least 25 percent of the total of such
amounts shall be paid no later than January 1,
1995;
(C) at least 25 percent of the total of such
amounts shall be paid no later than January 1,
1996; and
(D) any remaining balance shall be paid no
later than January 1, 1997.
(2) PRORATED PAYMENTS.—In determining any
amount for which the government of the District of
Columbia is liable under paragraph (1), the amount
of the liability shall be prorated to reflect only that
portion of total service which is attributable to civil-
ian service performed (by the former employee of the
government of the District of Columbia or by the de-
ceased individual referred to under section 8906
(g)(3) of title 5, United States Code, as the case may
be) during the period beginning on January 1, 1975,
through September 30, 1993, as estimated by the Of-
fice of Personnel Management.
Subtitle B—Postal Service
SEC. 10101. PAYMENTS TO BE MADE BY THE UNITED STATES
POSTAL SERVICE.
(a) RELATING
TO CORRECTED CALCULATIONS
FOR
PAST RETIREMENT COLAS.—In addition to any other
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payments required under section 8348(m) of title 5, United
States Code, or any other provision of law, the United
States Postal Service shall pay into the Civil Service Re-
tirement and Disability Fund a total of $693,000,000, of
which—
(1) at least one-third shall be paid not later than
September 30, 1996;
(2) at least two-thirds shall be paid not later
than September 30, 1997; and
(3) any remaining balance shall be paid not
later than September 30, 1998.
(b) RELATING
TO CORRECTED CALCULATIONS
FOR
PAST HEALTH BENEFITS.—In addition to any other pay-
ments required under section 8906(g)(2) of title 5, United
States Code, or any other provision of law, the United
States Postal Service shall pay into the Employees Health
Benefits Fund a total of $348,000,000, of which—
(1) at least one-third shall be paid not later than
September 30, 1996;
(2) at least two-thirds shall be paid not later
than September 30, 1997; and
(3) any remaining balance shall be paid not
later than September 30, 1998.
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Subtitle C—Miscellaneous
SEC. 10201. FEDERAL EMPLOYEES’ SURVIVOR ANNUITY IM-
PROVEMENTS.
(a) CIVIL SERVICE RETIREMENT SYSTEM.—
(1) REDUCTION FOR SPOUSAL ANNUITY.—Section
8339(j) of title 5, United States Code, is amended—
(A) in paragraph (3)—
(i) in the second sentence, by striking
out ‘‘, within such 2-year period,’’; and
(ii) by striking out the fourth sentence
and inserting in lieu thereof the following:
‘‘The Office shall, by regulation, provide for
payment of the deposit required under this
paragraph by a reduction in the annuity of
the employee or Member. The reduction
shall, to the extent practicable, be designed
so that the present value of the future reduc-
tion is actuarially equivalent to the deposit
required under this paragraph, except that
the total reductions in the annuity of an
employee or Member to pay deposits re-
quired by the provisions of this paragraph,
paragraph (5), or subsection (k)(2) shall not
exceed 25 percent of the annuity computed
under subsections (a) through (i), (n), and
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(q), including adjustments under section
8340. The reduction, which shall be effective
on the same date as the election under this
paragraph, shall be permanent and unaf-
fected by any future termination of the enti-
tlement of the former spouse. Such reduction
shall be independent of and in addition to
the reduction required under the first sen-
tence of this paragraph.’’; and
(B) in paragraph (5)(C)—
(i) in clause (ii), by striking out ‘‘,
within 2 years after the date of the remar-
riage or, if later, the death or remarriage of
the former spouse (or of the last such surviv-
ing former spouse),’’; and
(ii) by amending clause (iii) to read as
follows:
‘‘(iii) The Office shall, by regulation, pro-
vide for payment of the deposit required under
clause (ii) by a reduction in the annuity of the
employee or Member. The reduction shall, to the
extent practicable, be designed so that the present
value of the future reduction is actuarially
equivalent to the deposit required under clause
(ii), except that total reductions in the annuity
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of an employee or Member to pay deposits re-
quired by the provisions of this paragraph or
paragraph (3) shall not exceed 25 percent of the
annuity computed under subsections (a) through
(i), (n), and (q), including adjustments under
section 8340. The reduction required by this
clause, which shall be effective on the same date
as the election under clause (i), shall be perma-
nent and unaffected by any future termination
of the marriage. Such reduction shall be inde-
pendent of and in addition to the reduction re-
quired under clause (i).’’.
(2) 
REDUCTION
RELATING
TO
FORMER
SPOUSE.—Section 8339(k)(2) of title 5, United States
Code, is amended—
(A) in subparagraph (B)(ii), by striking
out ‘‘Within 2 years after the date of the mar-
riage, the’’ and inserting in lieu thereof ‘‘The’’;
and
(B) by amending subparagraph (C) to read
as follows:
‘‘(C) The Office shall, by regulation, provide for
payment of the deposit required under subparagraph
(B)(ii) by a reduction in the annuity of the employee
or Member. The reduction shall, to the extent prac-
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ticable, be designed so that the present value of the fu-
ture reduction is actuarially equivalent to the deposit
required under subparagraph (B)(ii), except that total
reductions in the annuity of an employee or Member
to pay deposits required by this subsection or sub-
section (j)(3) shall not exceed 25 percent of the annu-
ity computed under subsections (a) through (i), (n),
and (q), including adjustments under section 8340.
The reduction required by this subparagraph, which
shall be effective on the same date as the election
under subparagraph (A), shall be permanent and un-
affected by any future termination of the marriage.
Such reduction shall be independent of and in addi-
tion to the reduction required under subparagraph
(A).’’.
(3) DEPOSITS.—Section 8334(h) of title 5, Unit-
ed States Code, is amended by striking out ‘‘and by
section 8339(j)(5)(C) and the last sentence of section
8339(k)(2) of this title’’.
(b) FEDERAL EMPLOYEES RETIREMENT SYSTEM.—
Section 8418 of title 5, United States Code, is amended—
(1) in subsection (a)(1), by striking out ‘‘, before
the expiration of the 2-year period involved,’’; and
(2) by amending subsection (b) to read as fol-
lows:
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‘‘(b) The Office shall, by regulation, provide for pay-
ment of the deposit required under subsection (a) by a re-
duction in the annuity of the employee or Member. The re-
duction shall, to the extent practicable, be designed so that
the present value of the future reduction is actuarially
equivalent to the deposit required under subsection (a), ex-
cept that the total reductions in the annuity of an employee
or Member to pay deposits required by this section shall
not exceed 25 percent of the annuity computed under section
8415 or section 8452, including adjustments under section
8462. The reduction required by this subsection, which shall
be effective at the same time as the election under section
8416 (b) and (c) or section 8417(b), shall be permanent and
unaffected by any future termination of the marriage or
the entitlement of the former spouse. Such reduction shall
be independent of and in addition to the reduction required
under section 8416 (b) and (c) or section 8417(b).’’.
(c) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendments made by
this section shall take effect on the first day of the
first month beginning 30 days after the date of the
enactment of this Act and shall apply to all deposits
required 
under 
section 
8339(j) 
(3) 
and 
(5),
8339(k)(2), or 8418 of title 5, United States Code, on