I
107TH CONGRESS
1ST SESSION
H. R. 3521
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 annu-
ity 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 estab-
lishing a valid claim therefor; and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 18, 2001
Ms. VELA´ZQUEZ introduced the following bill; which was referred to the Com-
mittee 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 de-
ferred annuity under the Civil Service Retirement System
but before establishing a valid claim therefor; and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. INDEXATION OF DEFERRED ANNUITIES.
(a) AMENDMENTS TO SUBCHAPTER III OF CHAPTER
83.—Section 8338 of title 5, United States Code, is
amended—
(1) in subsection (d) by striking ‘‘(d) An’’ and
inserting ‘‘(d) Subject to subsection (e), an’’; and
(2) by adding at the end the following:
‘‘(e)(1) The average pay used in the computation of
an annuity authorized by this section shall be equal to the
average pay described in section 8331(4), increased by the
percentage adjustments (compounded) in rates of pay of
the General Schedule taking effect during the period—
‘‘(A) beginning on the day after the date of the
separation on which title to annuity is based, and
‘‘(B) ending on the day before the commence-
ment date of such annuity.
‘‘(2) In the case of a former employee or Member who
dies after having separated from the service with title to
an annuity authorized by this section but before having
established a valid claim for such annuity, the average pay
used in the computation of any survivor annuity payable
based on the service of such former employee or Member
shall be increased in the manner described in paragraph
(1), except that, in applying subparagraph (B) of para-
graph (1) for purposes of this paragraph, the commence-
ment date of such survivor annuity shall be used instead
of the commencement date of the annuity referred to in
such subparagraph.
‘‘(3) Average pay shall not be increased by reason
of any adjustment under this subsection to an amount
which exceeds the rate of basic pay that, as of the day
before the commencement date of the annuity or survivor
annuity involved, is payable for the position that was held
by the employee or Member at the time of earning the
highest rate of pay taken into account in computing such
employee’s or Member’s average pay, as determined under
regulations of the Office.’’.
(b) AMENDMENT TO CHAPTER 84.—Section 8415 of
title 5, United States Code, is amended by adding at the
end the following:
‘‘(j)(1) The average pay used in the computation of
a deferred annuity under section 8413 shall be equal to
the average pay described in section 8401(3), increased
by the percentage adjustments (compounded) in rates of
pay of the General Schedule taking effect during the
period—
‘‘(A) beginning on the day after the date of the
separation on which title to annuity is based, and
‘‘(B) ending on the day before the commence-
ment date of such annuity.
‘‘(2) In the case of a former employee or Member who
dies after having separated from the service with title to
a deferred annuity referred to in paragraph (1) but before
having established a valid claim for such annuity, the aver-
age pay used in the computation of any survivor annuity
payable based on the service of such former employee or
Member shall be increased in the manner described in
paragraph (1), except that, in applying subparagraph (B)
of paragraph (1) for purposes of this paragraph, the com-
mencement date of such survivor annuity shall be used
instead of the commencement date of the annuity referred
to in such subparagraph.
‘‘(3) Average pay shall not be increased by reason
of any adjustment under this subsection to an amount
which exceeds the rate of basic pay that, as of the day
before the commencement date of the annuity or survivor
annuity involved, is payable for the position that was held
by the employee or Member at the time of earning the
highest rate of pay taken into account in computing such
employee’s or Member’s average pay, as determined under
regulations of the Office.’’.
(c) AMENDMENTS RELATING TO INDIVIDUALS BE-
COMING SUBJECT TO FERS BY ELECTION.—
(1) COMPUTATION OF A DEFERRED ANNUITY.—
Paragraph (6) of section 302(a) of the Federal Em-
ployees’ Retirement System Act of 1986 (5 U.S.C.
8331 note) is amended by adding at the end the fol-
lowing:
‘‘(C) In determining average pay under this
paragraph for purposes of computing a deferred an-
nuity under section 8413 of such title—
‘‘(i) the provisions of section 8338(e)(1)
and (3) of such title shall apply, to the extent
that such annuity is computed under paragraph
(4); and
‘‘(ii) the provisions of section 8415(j)(1)
and (3) of such title shall apply, to the extent
that such annuity is computed under paragraph
(5).’’.
(2) COMPUTATION OF A SURVIVOR ANNUITY.—
Paragraph (9) of such section 302(a) is amended by
striking ‘‘(9)’’ and inserting ‘‘(9)(A)’’, and by add-
ing at the end the following:
‘‘(B) In computing an annuity under paragraph
(3) for purposes of determining the amount of a sur-
vivor annuity under subchapter IV of chapter 84 of
title 5, United States Code, to which the survivor is
entitled based on the service of a former employee
or Member who dies in the circumstances described
in section 8415(j)(2) of such title—
‘‘(i) paragraph (6)(C)(i) shall apply, to the
extent that such annuity is computed under
paragraph (4); and
‘‘(ii) paragraph (6)(C)(ii) shall apply, to
the extent that such annuity is computed under
paragraph (5).’’.
(d) 
CONFORMING
AMENDMENTS.—(1) 
Section
8331(10) of title 5, United States Code, is amended by
inserting ‘‘former employee or Member,’’ before ‘‘or annu-
itant’’.
(2) Section 8341(h)(1) of title 5, United States Code,
is amended by striking ‘‘or former Member who was sepa-
rated from the service with title to a deferred annuity
under section 8338(b) of this title’’ and inserting ‘‘or
former employee or Member who died after having sepa-
rated from the service with title to a deferred annuity
under section 8338 but before having established a valid
claim for annuity,’’.
(3) Clause (iii) of section 8341(h)(2)(B) of title 5,
United States Code, is amended by striking ‘‘a Member’’
and inserting ‘‘an employee or Member’’.
SEC. 2. AMENDMENT TO PROVIDE THAT THE WIDOW OR
WIDOWER OF A DEFERRED ANNUITANT WHO
DIES BEFORE ESTABLISHING A VALID CLAIM
FOR ANNUITY UNDER CSRS SHALL BE ELIGI-
BLE FOR A SURVIVOR ANNUITY IN THE SAME
WAY AS APPLIES CURRENTLY UNDER FERS.
Subsection (f) of section 8341 of title 5, United
States Code, is amended to read as follows:
‘‘(f) If an employee or Member dies after having sepa-
rated from the service with title to a deferred annuity
under section 8338 but before having established a valid
claim for annuity, and is survived by a widow or widower
to whom married on the date of separation, the widow or
widower—
‘‘(1) is entitled to an annuity equal to 55 per-
cent of the deferred annuity of the employee or
Member commencing on the day after the employee
or Member dies and terminating on the last day of
the month before the widow or widower dies or re-
marries before age 55; or
‘‘(2) may elect to receive the lump-sum credit
instead of annuity if the widow or widower is the in-
dividual who would be entitled to the lump-sum
credit and files application therefor with the Office
before the award of the annuity.
Notwithstanding the preceding sentence, an annuity pay-
able under this subsection to the widow or widower of a
former employee or Member may not exceed the difference
between—
‘‘(A) the annuity which would otherwise be pay-
able to such widow or widower under this subsection;
and
‘‘(B) the amount of the survivor annuity pay-
able to any former spouse of such former employee
or Member under subsection (h).’’.
SEC. 3. EFFECTIVE DATES.
(a) AMENDMENTS MADE BY SECTION 1.—
(1) IN GENERAL.—The amendments made by
section 1 shall apply to any annuity or survivor an-
nuity commencing before, on, or after the date of
the enactment of this Act, subject to paragraph (2).
(2) RECOMPUTATIONS.—In the case of any in-
dividual who is entitled to an annuity or survivor an-
nuity based on a separation from service which oc-
curred before the date of the enactment of this
Act—
(A) such annuity or survivor annuity shall
be recomputed to take into account the amend-
ments made by section 1 only if application
therefor is made within 12 months after the ef-
fective date of regulations prescribed by the Of-
fice of Personnel Management to carry out such
amendments; and
(B) any change in an annuity or survivor
annuity resulting from a recomputation under
subparagraph (A) shall be effective only with
respect to amounts accruing for months begin-
ning on or after the date of the enactment of
this Act.
(b) AMENDMENT MADE BY SECTION 2.—The amend-
ment made by section 2 shall take effect as of the date
of the enactment of this Act. Upon timely application to
the Office of Personnel Management, such amendment
shall also apply to the widow or widower of a former em-
ployee or Member who died before such date of enactment,
except that no amount shall be payable—
(1) for any period beginning before such date of
enactment; or
(2) in any case in which all annuity rights
under subchapter III of chapter 83 of title 5, United
States Code, have been voided due to the lump-sum
credit having been taken.
(c) SAVINGS PROVISION.—Nothing in section 2 shall
affect the right of an individual to a survivor annuity,
based on a death occurring on or after the date of the
enactment of this Act, if such individual would (upon filing
claim therefor) have been entitled to such annuity had sec-
tion 2 not been enacted.
(d) DEFINITIONS.—For purposes of this section—
(1) the terms ‘‘widow’’ and ‘‘widower’’ have the
respective meanings given them by section 8341 of
title 5, United States Code; and
(2) the term ‘‘lump-sum credit’’ has the mean-
ing given such term by section 8331(8) of such title.
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