Retirement Annuity Supplement Clarity Act
Bill: S.4199 | Sponsor: Sen. Lankford, James (R-OK)
Policy area: Government Operations and Politics

Summary:
Retirement Annuity Supplement Clarity Act
This bill specifies that an annuity supplement payment made under the Federal Employees Retirement System must be included when dividing an annuity pursuant to a court order in a divorce or similar proceeding, unless the court order expressly provides otherwise.

To amend title 5, United States Code, to require that a court decree, 
court order, or other similar process expressly provides for an annuity 
                          supplement payment.

    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 ``Retirement Annuity Supplement 
Clarity Act''.

SEC. 2. COURT ORDERS.

    (a) Court Orders.--Section 8467 of title 5, United States Code, is 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following:
    ``(c) If a court decree, court order, or agreement described in 
paragraph (1) of subsection (a) expressly divides an annuity under 
subchapter II, an annuity supplement payment made under section 8421 
shall be included in the computation of that division, unless the court 
decree, court order, or agreement expressly excludes division of the 
annuity supplement.''.
    (b) Technical and Conforming Amendment.--Section 8421 of title 5, 
United States Code, is amended by striking subsection (c).
    (c) Applicability.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to all annuity supplement payments under section 8421 of 
        title 5, United States Code, that begin on, or after the date 
        of enactment of this Act.
            (2) Retroactive payments.--
                    (A) Definition.--In this paragraph:
                            (i) Annuity supplement.--The term ``annuity 
                        supplement'' means an annuity supplement under 
                        section 8421 of title 5, United States Code.
                            (ii) Covered annuitant.--The term ``covered 
                        annuitant'' means any annuitant--
                                    (I) who was retired on or before 
                                the date of enactment of this Act;
                                    (II) who is or was entitled to an 
                                annuity supplement;
                                    (III) whose annuity was subject to 
                                a court order described in section 
                                8467(a)(1) that was silent regarding 
                                the annuity supplement or that included 
                                language that expressly excluded the 
                                annuity supplement from division; and
                                    (IV) whose annuity supplement was 
                                recomputed by the Office of Personnel 
                                Management during the period beginning 
                                on June 30, 2016, and ending on the 
                                date of enactment of this Act to 
                                retroactively include the annuity 
                                supplement in the division of the 
                                annuity.
                    (B) Payment.--The Office of Personnel Management 
                shall pay a one-time payment from the Civil Service 
                Retirement and Disability Fund established under 
                section 8348 of title 5, United States Code, to a 
                covered annuitant who received an annuity supplement 
                under section 8421 of title 5, United States Code, 
                before the date of enactment of this Act an amount 
                (without interest) equal to the amount deducted from 
                the annuity of the covered annuitant as a result of 
                including the annuity supplement in the computation of 
                a court-ordered division or other scenario described in 
                subparagraph (A)(ii)(III).
            (3) No repayment.--Overpayments paid to a covered 
        annuitant, or any overpayments of apportionment paid to a 
        former spouse of a covered annuitant (as the case may be), 
        before the date of enactment of this Act, which resulted from 
        excluding the covered annuitant's annuity supplement in the 
        computation of a court-ordered apportionment, shall be waived.
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