A bill making technical corrections relating to the Federal Employees' Retirement System, and for other purposes.
PL 100-238 (H.R.3395), enacted 01/08/1988

101 STAT. 1744 
PUBLIC LAW 100-238—JAN. 8, 1988 
Public Law 100-238 
100th Congress 
* 
An Act 
,. u 
Jan. 8, 1988 
Making technical corrections relating to the Federal Employees' Retirement System, 
[H.R. 3395] 
and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
TITLE I—AMENDMENTS RELATING TO THE CIVIL SERVICE 
RETIREMENT SYSTEM AND THE FEDERAL EMPLOYEES' 
RETIREMENT SYSTEM 
SEC. 
1
0
1
. 
REFERENCES. 
Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or 
a repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of title 5, 
United States Code. 
SEC. 102. DEPOSITS 
FOR "COVERED 
SERVICE" 
AFTER 
1986 FOR 
EMPLOYEES UNDER CSRS OFFSET PROVISIONS. 
Section 8334(c) is amended by striking the period at the end of the 
last sentence and inserting in lieu thereof the following: ", and, with 
respect to any such service performed after December 31, 1986, be 
equal to the amount that would have been deducted from the 
employee's basic pay under subsection (k) of this section if the 
employee's pay had been subject to that subsection during such 
period.". 
SEC. 103. AMENDMENTS RELATING TO LAW ENFORCEMENT OFFICERS 
AND FIREFIGHTERS. 
(a) MAXIMUM ENTRY AGES.— 
(1) IN GENERAL.—Section 3307 is amended— 
(A) in subsection (d), by striking "may, with the concur-
rence of such agent as the President may designate," and 
inserting in lieu thereof "may"; and 
(B) by adding at the end the following: 
"(e) The head of an agency may determine and fix the maximum 
age limit for an original appointment to a position as a firefighter or 
law enforcement officer, £is defined by section 8401 (14) or (17), 
respectively, of this title.". 
(2) CLARIFYING AMENDMENTS.—Paragraphs (14)(A)(ii) and (17) 
of section 8401 are amended by striking "are required to be" 
each place those words appear and inserting in lieu thereof 
"should be". 
(b) DEFINITION UNDER THE LIFE INSURANCE PROGRAM.—Section 
8704(c)(2) is amended by inserting "or 8401(17)" after "8331(20)". 
(c) AMENDMENTS TO DEFINITIONS.— 
(1) 
LAW ENFORCEMENT 
OFFICERS.—Section 
8401(17) 
is 
amended— 
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1745 
(A) by redesignating subparagraphs (B) and (C) as sub-
paragraphs (C) and (D), respectively; 
(B) by inserting after subparagraph (A) the following: 
"(B) an employee of the Department of the Interior or the 
Department of the Treasury (excluding any employee under 
subparagraph (A)) who occupies a position that, but for the 
enactment of the Federal Employees' Retirement System Act of 
1986, would be subject to the District of Columbia Police and 
Firefighters' Retirement System, as determined by the Sec-
retary of the Interior or the Secretary of the Treasury, as 
appropriate;"; and 
(C) by amending subparagraph (C), as so redesignated by 
subparagraph (A), to read as follows: 
"(C) an employee who is transferred directly to a supervisory 
or administrative position after performing duties described in 
subparagraph (A) and (B) for at least 3 years; and". 
(2) FIREFIGHTERS.—Section 8401(14)(B) is amended by striking 
"for at least 10 years" and inserting in lieu thereof "for at least 3 
years". 
(d) COORDINATION OF F E R S WITH THE DISTRICT OF COLUMBIA 
POLICE AND FIREFIGHTERS' RETIREMENT SYSTEM FOR EMPLOYEES OF 
THE PARK POLICE AND THE SECRET SERVICE.— 
(1) IN GENERAL.—Section 4-607(1) of title 4 of the District of 
Columbia Code is amended by striking the period and inserting 
in lieu thereof the following: , but does not include an officer or 
member of the United States Park Police force, or of the United 
States Secret Service Division, whose service is employment for 
the purposes of title II of the Social Security Act and chapter 21 
of the Internal Revenue Code of 1986, and who is not excluded 
from coverage under chapter 84 of title 5, United States Code, 
by operation of section 8402 of such title.". 
(2) 
CONFORMING 
AMENDMENT.—Section 
8401(ll)(i)(II) 
is 
amended by striking "(other than an employee of the United 
States Park Police, or the United States Secret Service, whose 
civilian service after December 31, 1983, is such employment)". 
(e) OFFSETS TO PREVENT FULL DOUBLE COVERAGE FOR EMPLOYEES 5 use 8334 note. 
OF THE PARK POLICE AND THE SECRET SERVICE.—Notwithstanding 
any other provision of law, in the case of an employee of the United 
States Secret Service or the United States Park Police whose pay is 
simultaneously subject to a deposit requirement under the District 
of Columbia Police and Firefighters' Retirement and Disability 
System and the contribution requirement under section 3101(a) of 
the Internal Revenue Code of 1986— 
(1) any deposits under the District of Columbia Police and 
Firefighters' 
Retirement and Disability System shall be 
> 
adjusted in a manner consistent with section 8334(k) of title 5, 
United States Code (relating to offsets in deductions from pay to 
reflect OASDI contributions); and 
(2) any benefits payable under the District of Columbia Police 
and Firefighters' Retirement and Disability System based on 
the service of any such employee shall be adjusted in a manner 
consistent with section 8349 of title 5, United States Code 
(relating to offsets to reflect benefits under title II of the Social 
Security Act). 
(f) EFFECTIVE DATE.—This section, and the amendments made by 
5 use 3307 note. 
this section, shall be effective as of January 1,1987. 
101 STAT. 1746 
PUBLIC LAW 100-238—JAN. 8, 1988 
SEC. 104. MILITARY SERVICE DEPOSITS BY SURVIVORS. 
(a) Section 8422(e) is amended by adding at the end the following: 
"(5) For the purpose of survivor annuities, deposits authorized by 
this subsection may also be made by a survivor of an employee or 
Member.". 
(b) Section 8411(c)(4)(A) is amended by striking "subsection (fK4)" 
and inserting in lieu thereof "section 8422(e)(5)". 
SEC. 105. DEPOSITS AND REFUNDS RELATING TO CERTAIN SERVICE 
UNDER THE CIVIL SERVICE RETIREMENT SYSTEM. 
(a) DEPOSIT FOR SERVICE COVERED BY REFUND PERMITTED ONLY IF 
REFUND WAS PURSUANT TO APPLICATION FILED BEFORE BECOMING 
SUBJECT TO FERS.—Section 8411(f)(1) is amended by adding at the 
end the following: "A deposit under this paragraph may be made 
only with respect to a refund received pursuant to an application 
filed with the Office before the date on which the employee or 
Member first becomes subject to this chapter.". 
(b) LUMP-SUM CREDIT FOR CERTAIN C S R S SERVICE SOUGHT AFTER 
BECOMING SUBJECT TO FERS Is PAYABLE TO THE EXTENT THAT IT 
EXCEEDS 1.3 PERCENT OF BASIC PAY.—The last sentence of section 
8342(a), as added by section 207(h) of the Federal Employees' Retire-
ment System Act of 1986 (Public Law 99-335; 100 Stat. 596) is 
amended to read as follows: "In applying this subsection to an 
employee or Member who becomes subject to chapter 84 (other than 
by an election under title III of the Federal Employees' Retirement 
System Act of 1986) and who, while subject to such chapter, files an 
application with the Office for a payment under this subsection— 
"(i) entitlement to payment of the lump-sum credit shall be 
determined without regard to paragraph (1) or (3) if, or to the 
extent that, such lump-sum credit relates to service of a type 
described in clauses (i) through (iii) of section 302(a)(1)(C) of the 
Federal Employees' Retirement System Act of 1986; and 
"(ii) if, or to the extent that, the lump-sum credit so relates to 
service of a type referred to in clause (i), it shall (notwithstand-
ing section 8331(8)) consist of— 
"(I) the amount by which any unrefunded amount de-
scribed in section 8331(8) (A) or (B) relating to such service, 
exceeds 1.3 percent of basic pay for such service; and 
"(II) interest on the amount payable under subclause (I), 
computed in a manner consistent with applicable provisions 
of section 8331(8).". 
SEC. 106. OPTION FOR CERTAIN EMPLOYEES TO ELECT FERS COVERAGE. 
Section 301(a) of the Federal Employees' Retirement System Act 
5 use 8331 note, 
of 1986 (Public Law 99-335; 100 Stat. 599) is amended by adding at 
the end the following: 
"(3)(A) Except as provided in subparagraph (B), any individual— 
"(i) who is excluded from the operation of subchapter III of 
chapter 83 of title 5, United States Code, under subsection (g), 
(i), (j), or (1) of section 8347 of such title, and 
"(ii) with respect to whom chapter 84 of title 5, United States 
Code, does not apply because of section 8402(b)(2) of such title, 
shall, for purposes of an election under paragraph (1) or (2), be 
treated as if such individual were subject to subchapter III of 
chapter 83 of title 5, United States Code. 
"(B) An election under this paragraph may not be made by any 
individual who would be excluded from the operation of chapter 84 
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1747 
of title 5, United States Code, under section 8402(c) of such title 
(relating to exclusions based on the temporary or intermittent 
nature of one's employment).". 
SEC. 107. CERTAIN CSRS SERVICE CREDITABLE TO DETERMINE ELIGI- 
5 USC 8331 note. 
BILITY FOR 1.1 PERCENT ACCRUAL RATE. 
Section 302(a)(1)(D) of the Federal Employees' Retirement System 
Act of 1986 (Public Law 99-335; 100 Stat. 602) is amended— 
(1) by striking "and" at the end of subclause (IV); 
(2) by striking the period at the end of subclause (V) and 
inserting in lieu thereof "; and"; and 
(3) by adding after subclause (V) the following: 
"(VI) the provision of subsection (g) of section 8415 which 
relates to the minimum period of service required to qualify 
for the higher accrual rate under such subsection.". 
SEC. 108. AMENDMENTS RELATING TO MISCELLANEOUS PROVISIONS OF 
LAW EXTENDING COVERAGE OR BENEFITS UNDER CERTAIN 
FEDERAL PROGRAMS TO INDIVIDUALS NOT OTHERWISE 
ELIGIBLE. 
(a) TERMINATION OF CERTAIN SPECIAL ELIGIBILITY PROVISIONS.— 
(1) CIVIL 
SERVICE 
RETIREMENT SYSTEM.—Section 8347 is 
amended by adding at the end the following: 
"(o) Any provision of law outside of this subchapter which pro-
vides coverage, service credit, or any other benefit under this sub-
chapter to any individuals who (based on their being employed by an 
entity other than the Government) would not otherwise be eligible 
for any such coverage, credit, or benefit, shall not apply with respect 
to any individual appointed, transferred, or otherwise commencing 
that type of employment on or after October 1,1988.". 
(2) LIFE INSURANCE.— 
(A) IN GENERAL.—Section 87 of title 5, United States 
Code, is amended by inserting after section 8712 the 
following: 
"§ 8713. Effect of other statutes 
5 use 8713. 
"Any provision of law outside of this chapter which provides 
coverage or any other benefit under this chapter to any individuals 
who (based on their being employed by an entity other than the 
Government) would not otherwise be eligible for any such coverage 
or benefit shall not apply with respect to any individual appointed, 
transferred, or otherwise commencing that type of employment on 
or after October 1,1988.". 
(B) CHAPTER ANALYSIS.—The analysis for chapter 87 of 
title 5, United States Code, is amended by inserting after 
the item relating to section 8712 the following: 
"8713. Effect of other statutes.". 
(3) HEALTH INSURANCE.— 
(A) IN GENERAL.—Chapter 89 of title 5, United States 
Code, is amended by adding at the end the following: 
"§ 8914. Effect of other statutes 
5 use 8914. 
"Any provision of law outside of this chapter which provides 
coverage or any other benefit under this chapter to any individuals 
who Obased on their being employed by an entity other than the 
Government) would not otherwise be eligible for any such coverage 
or benefit shall not apply with respect to any individual appointed, 
91-194 O - 90 -15 : QL.3 Part 3 
101 STAT. 1748 
PUBLIC LAW 100-238—JAN. 8, 1988 
5 u s e 8334 note. 
District of 
Columbia. 
5 u s e 8331 note. 
transferred, or otherwise commencing that type of employment on 
or after October 1,1988.". 
(B) CHAPTER ANALYSIS.—The analysis for chapter 89 of 
title 5, United States Code, is amended by adding at the end 
the following: 
"8914. Effect of other statutes.". 
(b) EXTENSION OF OFFSET PROVISIONS UNDER CHAPTER 83.— 
(1) CONTRIBUTIONS.—Section 8334(k) is amended by adding at 
the end the following: 
"(4) In administering paragraphs (1) through (3)— 
"(A) the term 'an individual described in section 84020t))(2) of 
this title' shall be considered to include any individual— 
"(i) who is subject to this subchapter as a result of a 
provision of law described in section 8347(o), and 
"(ii) whose employment (as described in section 8347(o)) is 
also employment for purposes of title II of the Social Secu-
rity Act and chapter 21 of the Internal Revenue Code of 
1986; and 
"(B) the term 'Federal wages', as applied with respect to any 
individual to whom this subsection applies as a result of 
subparagraph (A), means basic pay for any employment re-
ferred to in subparagraph (A)(ii),". 
(2) BENEFITS.—Section 8349 is amended by adding at the end 
the following: 
"(d) In administering subsections (a) through (c)— 
"(1) the terms 'an individual under section 8402(b)(2)' and 'an 
individual described in section 8402(b)(2)' shall each be consid-
ered to include any individual— 
"(A) who is subject to this subchapter as a result of any 
provision of law described in section 8347(o), and 
"(B) whose employment (as described in section 8347(o)) is 
also employment for purposes of title II of the Social Secu-
rity Act and chapter 21 of the Internal Revenue Code of 
1986; and 
"(2) the term 'Federal service', as applied with respect to any 
individual to whom this section applies as a result of paragraph 
(1), means any employment referred to in paragraph (1)(B) 
performed after December 31,1983.". 
(3) EFFECTIVE DATE.—The amendments made by this subsec-
tion shall be effective as of January 1,1987. 
SEC. 109. CONTINUED COVERAGE UNDER CERTAIN FEDERAL EMPLOYEE 
BENEFIT PROGRAMS FOR CERTAIN EMPLOYEES OF SAINT 
ELIZABETHS HOSPITAL. 
(a) IN GENERAL.—Section 207 of the Federal Employees' Retire-
ment System Act of 1986 (Public Law 99-335; 100 Stat. 594) is 
amended by adding at the end the following: 
"(o) An employee of Saint Elizabeths Hospital who is appointed to 
a position in the government of the District of Columbia on 
October 1, 1987, pursuant to the Saint Elizabeths Hospital and 
District of Columbia Mental Health Services Act (Public Law 98-
621; 98 Stat. 3369 and following) shall, for purposes of chapters 83, 
87, and 89 of title 5, United States Code, be treated in the same way 
as an individual first employed by the government of the District of 
Columbia before October 1,1987.'\ 
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1749 
(b) The amendment made by this section shall be effective as of 
October 1,1987. 
SEC. 110. CREDITABILITY UNDER CSRS OF CERTAIN SERVICE PER- 5 USC 8332 note. 
FORMED UNDER A PERSONAL SERVICE CONTRACT WITH THE 
UNITED STATES. 
(a) IN GENERAL.— 
(1) CONDITIONS FOR RECEIVING CREDIT.—Subject to the making 
of a deposit under section 8334(c) of title 5, United States Code, 
upon application to the Office of Personnel Management within 
2 years after the date of the enactment of this Act, any individ-
ual who is an employee (as defined by section 8331(1) or 8401(11) 
of such title) on such date shall be allowed credit under sub-
chapter III of chapter 83 of such title for any service if such 
service was performed— 
(A) before November 5,1985; and 
(B) under a personal service contract with the United 
States, except as provided in paragraph (3). 
(2) CERTIFICATION.— 
(A) IN GENERAL.—The Office shall, with respect to any 
service for which credit is sought under this subsection, 
accept the certification of the head of the agency which was 
party to the contract referred to in paragraph (1)(B), but 
only if such certification— 
(i) states that the agency had intended, through such 
contract, that the individual involved (or that persons 
like the individual involved) be considered as having 
been appointed to a position in which such individual 
would be subject to subchapter III of chapter 83 of title 
5, United States Code; and 
(ii) indicates the period of service which was per-
formed under the contract by the individual involved, 
and includes copies of appropriate records or other 
documentation to support the determination as to the 
length of such period. 
(B) FINALITY.—A decision by an agency head concerning 
whether or not to make a certification under this para-
graph in any particular instance shall be at the sole 
discretion of the agency head, and shall not be subject to 
administrative or judicial review. 
(3) EXCEPTION.—Nothing in this subsection shall apply with 
respect to any service performed under— 
(A) a contract for which any appropriations, allocations, 
or funds were used under section 636(a)(3) of the Foreign 
Assistance Act of 1961; 
(B) a contract entered into under section 10(a)(5) of the 
Peace Corps Act; 
(C) a contract under which the services of an individual 
may be terminated by a person other than the individual or 
the Government; or 
(D) a contract for a single transaction or a contract under 
which services are paid for in a single payment. 
(b) APPLICABILITY TO ANNUITANTS.— 
(1) IN GENERAL.—In the case of any individual who— 
(A) performed service for which credit is allowable under 
subsection (a), and 
101 STAT. 1750 
PUBLIC LAW 100-238—JAN. 8, 1988 
(B) retired on an annuity payable under subchapter III of 
chapter 83 of title 5, United States Code, after January 23, 
1980, and before the date of the enactment of this Act, 
any annuity under such subchapter based on the service of such 
individual shall be redetermined to take into account the 
amendment made by subsection (a) if application therefor is 
made, and the deposit requirement under such subsection is 
met, within 2 years after the date of the enactment of this Act. 
(2) AMOUNTS TO WHICH APPLICABLE.—Any change in an annu-
ity resulting from a redetermination under paragraph (1) shall 
be effective with respect to payments accruing for months 
beginning after the date of the enactment of this Act. 
SEC. 111. EXCLUSION OF FOREIGN NATIONAL EMPLOYEES UNDER CSRS 
FROM PARTICIPATING IN THE THRIFT SAVINGS PLAN. 
(a) IN GENERAL.—Section 8351 is amended— 
(1) by redesignating subsection (c) as subsection (d); and 
(2) by inserting after subsection (b) the following: 
"(c) A member of the Foreign Service described in section 103(6) of 
the Foreign Service Act of 1980 shall be ineligible to make any 
election under this section.". 
5 use 8351 note. 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
shall be effective as of March 31, 1987. Any refund which becomes 
payable as a result of the preceding sentence shall, to the extent 
that such refund involves an individual's contributions to the Thrift 
Savings Fund (established under section 8437 of title 5, United 
States Code), be adjusted to reflect any earnings attributable 
thereto. 
SEC. 112. FOREIGN NATIONAL EMPLOYEES APPOINTED AFTER DECEM-
BER 1987 EXCLUDED FROM CSRS. 
Section 8331(1) is amended— 
(1) by striking "or" at the end of clause (x); 
(2) by striking the period at the end of clause (xi) and insert-
ing in lieu thereof "; or"; and 
(3) by adding after clause (xi) the following: 
"(xii) a member of the Foreign Service (as described in 
section 103(6) of the Foreign Service Act of 1980), appointed 
after December 31, 1987.". 
SEC. 113. EXCLUSION OF FOREIGN NATIONAL EMPLOYEES FROM FERS. 
(a) No ELECTION TO CONVERT FROM CSRS.— 
(1) IN GENERAL.—Section 301(a) of the Federal Employees' 
Retirement System Act of 1986 (Public Law 99-335; 100 Stat. 
5 use 8331 note. 
599) is amended by adding at the end the following: 
"(4) A member of the Foreign Service described in section 103(6) of 
the Foreign Service Act of 1980 shall be ineligible to make any 
election under this subsection.". 
5 use 8331 note. 
(2) EFFECTIVE DATE.—The amendment made by paragraph (1) 
shall be effective as of June 30, 1987. Any refund which becomes 
payable as a result of the preceding sentence shall, to the extent 
that such refund involves an individual's contributions to the 
Thrift Savings Fund (established under section 8437 of title 5, 
United States Code), be adjusted to reflect any earnings attrib-
utable thereto. 
(b) EXCLUSION FROM FERS.— 
(1) IN GENERAL.—Section 8401(11) is amended— 
u, y_ 
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1751 
(A) by striking "or" at the end of clause (i)(III); 
(B) by inserting "or" after the semicolon in clause (ii); and 
(C) by adding at the end the following: 
"(iii) a member of the Foreign Service described in section 
103(6) of the Foreign Service Act of 1980;". 
(2) EFFECTIVE DATE.—The amendments made by paragraph (1) 5 use 8401 note. 
shall be effective as of January 1, 1987. Any refund which 
becomes payable as a result of the preceding sentence shall, to 
the extent that such refund involves an individual's contribu-
tions to the Thrift Savings Fund (established under section 8437 
of title 5, United States Code), be adjusted to reflect any earn-
ings attributable thereto. 
SEC. 114. EXCLUSION OF CERTAIN ONE-TIME GOVERNMENT CONTRIBU-
TIONS TO THRIFT SAVINGS PLAN. 
Section 8432(d) is amended by adding at the end the following: 
"However, no contribution made under subsection (c)(3) shall be 
subject to, or taken into account, for purposes of the preceding 
sentence.". 
SEC. 115. GOVERNMENT'S 1 PERCENT THRIFT CONTRIBUTION NOT FOR-
FEITABLE FOR DEATH IN SERVICE. 
Section 8432(g) is amended— 
(1) in paragraph (1), by striking "Except as provided in para-
graphs (2) and (3)," and inserting in lieu thereof "Except as 
otherwise provided in this subsection,"; and 
(2) by adding at the end the following: 
"(4) Nothing in paragraph (2) or (3) shall cause the forfeiture of 
any contributions made for the benefit of an employee, Member, or 
Congressional employee under subsection (c)(1), or any earnings 
attributable thereto, if such employee, Member, or Congressional 
employee is not separated from Government employment as of date 
of death.". 
SEC. 116. CLARIFICATION RELATING TO AMOUNTS SUBJECT TO LEGAL 
PROCESS FOR CHILD SUPPORT OR ALIMONY. 
Section 8437(e)(3) is amended by adding at the end the following: 
"For the purposes of this paragraph, an amount contributed for the 
benefit of an individual under section 8432(c)(1) (including any 
earnings attributable thereto) shall not be considered part of the 
balance in such individual's account unless such amount is non-
forfeitable, as determined under applicable provisions of section 
8432(g).". 
SEC. 117. CLARIFICATION RELATING TO SOURCE OF FUNDING FOR 
ADMINISTRATIVE EXPENSES OF THE THRIFT SAVINGS PLAN. 
(a) IN GENERAL.—Section 8437 is amended— 
(1) in subsection (d), by inserting a period after "earnings in 
such Fund" and by striking the matter thereafter; and 
(2) in subsection (e)(1), by inserting "subsection (d) and" before 
"paragraphs (2) and (3),". 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 5 use 8437 note. 
shall take effect on the first day of the first month beginning on or 
after the date of the enactment of this Act. 
101 STAT. 1752 
PUBLIC LAW 100-238—JAN. 8, 1988 
5 u s e 8331 note. 
SEC. 118. EXCLUSION FROM AGE-BASED REDUCTION UNDER CHAPTER 83 
FOR CSRS PORTION OF ANNUITY MADE SUBJECT TO REDUC-
TION UNDER CHAPTER 84 FOLLOWING AN ELECTION INTO 
FERS. 
Section 302(a)(4) of the Federal Employees' Retirement System 
Act of 1986 (Public Law 99-335; 100 Stat. 603) is amended by adding 
at the end the following: "Notwithstanding the preceding sentence, 
in computing accrued benefits under this paragraph for an individ-
ual retiring under section 8412(g) or 84130?) of title 5, United States 
Code, section 8339(h) of such title (relating to reductions based on 
age at date of separation) shall not apply.". 
5 u s e 8331 note. 
SEC. 119 INTEREST ON REFUNDS OF CERTAIN EXCESS CONTRIBUTIONS 
BY INDIVIDUALS MAKING ELECTIONS UNDER TITLE III OF 
THE FEDERAL EMPLOYEES' RETIREMENT SYSTEM ACT OF 
1986. 
(a) FOR INDIVIDUALS ELECTING FERS COVERAGE.—Section 302(c)(2) 
of the Federal Employees' Retirement System Act of 1986 (Public 
Law 99-335; 100 Stat. 605), as amended by section 302(a) of the 
Federal Employees' Retirement System Technical Corrections Act of 
1986 (Public Law 99-556; 100 Stat. 3136), is amended to read as 
follows: 
"(2) In accordance with regulations prescribed by the Office of 
Personnel Management, a refund under this subsection shall be 
payable upon written application therefor filed with the Office and 
shall include interest at the rate provided in section 8334(e)(3) of 
title 5, United States Code. Interest on the refund shall accrue 
monthly and shall be compounded annually.". 
(b) FOR INDIVIDUALS ELECTING COVERAGE UNDER CSRS WITH OFF-
SETS FOR SOCIAL SECURITY.—The last sentence of section 303(a) of the 
Federal Employees' Retirement System Act of 1986 (Public Law 99-
335; 100 Stat. 605), as added by section 302(b) of the Federal Em-
ployees' Retirement System Technical Corrections Act of 1986 
5 use 8331 note. (Public Law 99-556; 100 Stat. 3136), is amended to read as follows: 
"A refund under this subsection shall be computed with interest in 
accordance with section 302(c)(2) and regulations prescribed by the 
Office of Personnel Management.". 
District of 
SEC. 120. EFFECTIVE DATE OF FINAL MERIT INCREASE UNDER THE 
Columbia. 
PERFORMANCE MANAGEMENT AND RECOGNITION SYSTEM 
FOR EMPLOYEES OF SAINT ELIZABETHS HOSPITAL. 
(a) IN GENERAL.—Notwithstanding any other provision of law, the 
effective date of any merit increase under section 5404 of title 5, 
United States Code, during calendar year 1987 shall, in the case of 
any individual employed in or under Saint Elizabeths Hospital on 
September 1, 1987, be considered to be the first day of the first 
applicable pay period commencing on or after September 1 (rather 
than October 1) of such year. 
(b) DEFINITION.—For purposes of this section, "Saint Elizabeths 
Hospital" refers to the institution identified under section 3(1) of the 
Saint Elizabeths Hospital and District of Columbia Mental Health 
Services Act (Public Law 98-621; 98 Stat. 3371). 
SEC. 121. DEADLINE FOR AGENCY CONTRIBUTIONS TO THRIFT SAVINGS 
PLAN. 
(a) 
THE 
1-PERCENT 
CONTRIBUTION.—Section 
8432(c)(1)(A) 
is 
amended— 
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1753 
(1) by striking "At the end o f and inserting in lieu thereof 
"At the time prescribed by the Executive Director, but no later 
than 12 days after the end of; and 
(2) by striking "at the end of each succeeding pay period," and 
inserting in lieu thereof "within such time as the Executive 
Director may prescribe with respect to succeeding pay periods 
(but no later than 12 days after the end of each such pay 
period),". 
(b) AMOUNTS BASED ON INDIVIDUAL CONTRIBUTIONS.—The second 
sentence of section 8482(c)(2)(A) is amended by striking "at the end 
of such pay period." and inserting in lieu thereof "within such time 
as the Executive Director may prescribe, but no later than 12 days 
after the end of each such pay period.". 
SEC. 122. AMENDMENTS RELATING TO DISABILITY ANNUITIES. 
(a) INITIAL DISABILITY ANNUITY OFFSET TO BE BASED ON ACTUAL 
SOCIAL SECURITY DISABILITY INSURANCE BENEFIT; AMOUNT OF OFFSET 
NOT SUBJECT TO ADJUSTMENT UNTIL AFTER THE FIRST YEAR.—Sec-
tion 8452(a)(2)(B)(i) of title 5, United States Code, is amended to read 
as follows: 
"(B)(i) For purposes of this paragraph, the assumed disability 
insurance benefit of an annuitant for any month shall be equal to— 
"(I) the amount of the disability insurance benefit to which 
the annuitant is entitled under section 223 of the Social Secu-
rity Act for the month in which the annuity under this sub-
chapter commences, or is restored, or, if no entitlement to such 
disability insurance benefits exists for such month, the first 
month thereafter for which the annuitant is entitled both to an 
annuity under this subchapter and disability insurance benefits 
under section 223 of the Social Security Act, adjusted by 
"(II) all adjustments made under section 8462(b) after the end 
of the period referred to in paragraph (lXA)(i) (or, if later, after 
the end of the month preceding the first month for which the 
annuitant is entitled both to an annuity under this subchapter 
and disability insurance benefits under section 223 of the Social 
Security Act) and before the start of the month involved (with-
out regard to whether the annuitant's annuity was affected by 
any of those adjustments).". 
(b) REVISED METHOD FOR REDETERMINING A DISABILITY ANNUITY AT 
AGE 62.—Section 8452(b) of title 5, United States Code, is amended 
to read as follows: 
"(b)(1) Except as provided in subsection (d), if an annuitant is 
entitled to an annuity under this subchapter as of the day before the 
date of the sixty-second anniversary of the annuitant's birth (herein-
after in this section referred to as the annuitant's 'redetermination 
date'), such annuity shall be redetermined by the Office in accord- 
e J 
ance with paragraph (2). Effective as of the annuitant's redetermina-
tion date, the annuity (as so redetermined) shall be in lieu of any 
annuity to which such annuitant would otherwise be entitled under 
this subchapter. 
"(2)(A) An annuity redetermined under this subsection shall be 
equal to the amount of the annuity to which the annuitant would be 
entitled under section 8415, taking into account the provisions of 
subparagraph (B). 
"(B) In performing a computation under this paragraph— 
"(i) creditable service of an annuitant shall be increased by 
including any period (or periods) before the annuitant's redeter-
101 STAT. 1754 
PUBLIC LAW 100-238—JAN. 8, 1988 
mination date during which the annuitant was entitled to an 
annuity under this subchapter; and 
"(ii) the average pay which would otherwise be used shall be 
adjusted to reflect all adjustments made under section 8462(b) 
with respect to any period (or periods) referred to in clause (i) 
(without regard to whether the annuitant's annuity was 
aflected by any of those adjustments).", 
(c) METHOD FOR APPLYING COST-OF-LIVING ADJUSTMENTS TO CER-
TAIN DISABILITY ANNUITY PROVISIONS.— 
(1) MINIMUM DISABILITY ANNUITY AMOUNT SUBJECT TO ADJUST-
MENT AFTER THE FIRST YEAR.—Section 8452 is amended— 
(A) by redesignating subsection (d) as subsection (d)(1); 
and 
(B) by adding after subsection (d)(1), as so redesignated, 
the following: 
"(2) In applying this subsection with respect to any annuitant, the 
amount of an annuity so computed under section 8415 shall be 
adjusted under section 8462 (including subsection (c) thereof)— 
"(A) to the same extent, and otherwise in the same manner, 
as if it were an annuity— 
"(i) subject to adjustment under such section; and 
"(ii) with a commencement date coinciding with the date 
the annuitant's annuity commenced or was restored under 
this subchapter, as the case may be; and 
"(B) whether the amount actually payable to the annuitant 
under this section in any month is determined under this 
subsection or otherwise.". 
(2) DISABILITY ANNUITY COLAS.— 
(A) IN GENERAL.—Section 8452(a)(1)(B) of title 5, United 
States Code, is amended to read as follows: 
"(B) An annuity computed under this paragraph— 
"(i) shall not, during any period referred to in subparagraph 
(A)(i), be adjusted under section 8462; but 
"(ii) shall, after the end of any period referred to in subpara-
graph (A)(i), be adjusted to reflect all adjustments made under 
section 8462(b) after the end of the period referred to in 
subparagraph (A)(i), whether the amount actually payable to 
the annuitant under this section in any month is determined 
under this subsection or otherwise.". 
(B) CLARIFYING AMENDMENT.—Section 8452(a) of title 5, 
United States Code, is amended by adding at the end the 
following: 
"(3) Section 8462 shall apply with respect to amounts under this 
subsection only as provided in paragraphs (1) and (2).". 
5 use 8452 note. 
(d) EFFECTIVE DATE.—The amendments made by this section shall 
be effective as of January 1,1987, as if they had been enacted as part 
of the Federal Employees' Retirement System Act of 1986 (Public 
Law 99-335; 100 Stat. 514 and following). 
SEC. 123. CLARIFYING AMENDMENTS RELATING TO FUNDING. 
FUND BALANCE.—Section 8331(18) is amended by adding at the 
end the following: 
"but does not include any amount attributable to— 
"(i) the Federal Employees' Retirement System; or 
"(ii) contributions made under the Federal Employees' 
Retirement Contribution Temporary Adjustment Act of 
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1755 
1983 by or on behalf of any individual who became subject 
to the Federal Employees' Retirement System;". 
SEC. 124. CONCURRENT ENTITLEMENT TO BENEFITS UNDER CHAPTER 81 
AND CHAPTER 83 OR 84 OF TITLE 5, UNITED STATES CODE. 
(a) IN GENERAL.— 
(1) AMENDMENTS.— 
(A) CSRS.—Section 8337 is amended by striking subsec-
tions (f) and (g) and inserting in lieu thereof the following: 
"(f)(1) An individual is not entitled to receive— 
"(A) an annuity under this subchapter, and 
"(B) compensation for injury to, or disability of, such individ-
ual under subchapter I of chapter 81, other than compensation 
payable under section 8107, 
covering the same period of time. 
"(2) An individual is not entitled to receive an annuity under this 
subchapter and a concurrent benefit under subchapter I of chapter 
81 on account of the death of the same person. 
"(3) Paragraphs (1) and (2) do not bar the right of a claimant to the 
greater benefit conferred by either this subchapter or subchapter I 
of chapter 81. 
"(g) If an individual is entitled to an annuity under this sub-
chapter, and the individual receives a lump-sum payment for com-
pensation under section 8135 based on the disability or death of the 
same person, so much of the compensation as has been paid for a 
period extended beyond the date payment of the annuity com-
mences, as determined by the Department of Labor, shall be 
refunded to that Department for credit to the Employees' Com-
pensation Fund. Before the individual may receive the annuity, the 
individual shall— 
"(1) refund to the Department of Labor the amount represent-
ing the commuted compensation payments for the extended 
period; or 
"(2) authorize the deduction of the amount from the annuity. 
Deductions from the annuity may be made from accrued or accruing 
payments. The amounts deducted and withheld from the annuity 
shall be transmitted to the Department of Labor for reimbursement 
to the Employees' Compensation Fund. When the Department of 
Labor finds that the financial circumstances of an individual enti-
tled to an annuity under this subchapter warrant deferred refund-
ing, deductions from the annuity may be prorated against and paid 
from accruing payments in such manner as the Department deter-
mines appropriate.". 
(B) FERS.—Subchapter VI of chapter 84 is amended by 
inserting after section 8464 the following: 
"§ 8464a. Relationship 
between 
annuity 
and 
workers' 5 USC 8464a. 
compensation 
"(a)(1) An individual is not entitled to receive— 
"(A) an annuity under subchapter II or V, and 
"(B) compensation for injury to, or disability of, such individ-
ual under subchapter I of chapter 81, other than compensation 
payable under section 8107, 
covering the same period of time. 
"(2) An individual is not entitled to receive an annuity under 
subchapter IV and a concurrent benefit under subchapter I of 
chapter 81 on account of the death of the same person. 
101 STAT. 1756 
- 
PUBLIC LAW 100-238—JAN. 8, 1988 
"(3) Paragraphs (1) and (2) do not bar the right of a claimant to the 
greater benefit conferred by either this chapter or subchapter I of 
chapter 81. 
"(b) If an individual is entitled to an annuity under subchapter II, 
IV, or V, and the individual receives a lump-sum payment for 
compensation under section 8135 based on the disability or death of 
the same person, so much of the compensation as has been paid for a 
period extended beyond the date payment of the annuity com-
mences, as determined by the Department of Labor, shall be 
refunded to that Department for credit to the Employees' Com-
pensation Fund. Before the individual may receive the annuity, the 
individual shall— 
"(1) refund to the Department of Labor the amount represent-
ing the commuted compensation payments for the extended 
period; or 
"(2) authorize the deduction of the amount from the annuity. 
Deductions from the annuity may be made from accrued or accruing 
payments. The amounts deducted and withheld from the annuity 
shall be transmitted to the Department of Labor for reimbursement 
to the Employees' Compensation Fund. When the Department of 
Labor finds that the financial circumstances of an individual enti-
tled to an annuity under subchapter II, IV, or V warrant deferred 
refunding, deductions from the annuity may be prorated against 
and paid from accruing payments in such manner as the Depart-
ment determines appropriate.". 
(2) CHAPTER ANALYSIS.—The analysis for chapter 84 is 
amended by inserting after the item relating to section 8464 the 
following: 
"8464a. Relationship between annuity and workers' compensation.". 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) Subchapter V of chapter 84 is amended— 
(A) by striking section 8456; and 
(B) by redesignating section 8457 as section 8456. 
(2) The analysis for chapter 84 is amended— 
(A) by striking the item relating to section 8456; and 
(B) by striking "8457" and inserting in lieu thereof 
"8456". 
5 use 8337 note. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall be effective as of Janu-
ary 1, 1987, and shall apply with respect to benefits payable 
based on a death or disability occurring on or after that date. 
(2) EXCEPTION.—The amendment made by subsection (a)(1)(A) 
shall take effect on the date of the enactment of this Act and 
shall apply with respect to benefits payable based on a death or 
disability occurring on or after that date. 
5 use 8432 note. 
SEC. 125. ELIGIBILITY OF CERTAIN INDIVIDUALS TO PARTICIPATE IN 
THE THRIFT SAVINGS PLAN. 
(a) DEFINITIONS.—For purposes of this section— 
(1) the term "Executive Director" means the Executive Direc-
tor under section 8474 of title 5, United States Code; and 
(2) the term "Thrift Savings Plan" refers to the program 
under subchapter III of chapter 84 of title 5, United States Code. 
(b) REGULATIONS.— 
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1757 
(1) IN GENERAL.—The Executive Director shall prescribe regu-
lations relating to participation in the Thrift Savings Plan by 
an individual described in subsection (c). 
(2) SPECIFIC MATTERS TO BE INCLUDED.—Under the regula-
tions— 
(A) in computing a percentage of basic pay to determine 
an amount to be contributed to the Thrift Savings Fund, 
the rate of basic pay to be used shall be the same as that 
used in computing any amount which the individual in-
volved is otherwise required, as a condition for participat-
ing in the Civil Service Retirement System or the Federal 
Employees' Retirement System (as the case may be), to 
contribute to the Civil Service Retirement and Disability 
Fund; and 
(B) an employing authority which would not otherwise 
make contributions to the Thrift Savings Fund shall be 
allowed, with respect to any individual under subsection (c) 
who is serving under such authority, and at the sole discre-
tion of such authority, to make any contributions on behalf 
of such individual which would be permitted or required 
under the provisions of section 8432(c) of title 5, United 
States Code, if such authority were the individual's employ-
ing agency under such provisions. 
(c) APPLICABILITY.—This section applies with respect to— 
(1) any individual participating in the Civil Service Retire-
ment System or the Federal Employees' Retirement System 
as— 
(A) an individual who has entered on approved leave 
without pay to serve as a full-time officer or employee of an 
organization composed primarily of employees (as defined 
by section 8331(1) or 8401(11) of title 5, United States Code); 
(B) an individual assigned from a Federal agency to a 
State or local government under subchapter VI of chapter 
33 of title 5, United States Code; or 
(C) an individual appointed or otherwise assigned to one 
of the cooperative extension services, as defined by section 
1404(5) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3103(5)); and 
(2) any individual who is participating in the Civil Service 
Retirement System as a result of a provision of law described in 
section 8347(o). 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
regulations prescribed under this section shall become effective 
in accordance with the provisions of such regulations. 
(2) EXCEPTION.—The regulations prescribed under this section 
shall, with respect to individuals under subsection (c)(1)(C), be 
effective as of January 1,1987. 
SEC. 126. SPECIAL PAY OF VETERANS' ADMINISTRATION PHYSICIANS 
INCLUDED IN AVERAGE SALARY UNDER FERS. 
Section 4118(f) of title 38, United States Code, is amended— 
(1) in paragraph (1), by striking "81 or 83" and inserting in 
lieu thereof "81, 83, or 84"; and 
(2) in paragraph (2)— 
101 STAT. 1758 
PUBLIC LAW 100-238—JAN. 8, 1988 
(A) in the first sentence, by striking "chapter 83 of title 
5" and inserting in lieu thereof "chapter 83 or 84 of title 5, 
as the case may be"; 
(B) in the second sentence, by striking "section 8331(4)" 
and all that follows thereafter through "; or" and inserting 
in lieu thereof the following: "section 8331(4) or 8401(3) of 
such title (as applicable) only— 
"(A) for the purposes of computing benefits paid under 
section 8337, 8341 (d) or (e), 8442(b), 8443, or 8451 of such 
title; or"; and 
(C) in subparagraph (B), by inserting "if at the beginning 
thereof. 
SEC. 127. APPLICATION DEADLINE FOR CERTAIN FORMER SPOUSES. 
Section 4(b)(1)(B) of the Civil Service Retirement Spouse Equity 
Act of 1984 (Public Law 98-615; 98 Stat. 3205), as amended by section 
201(b)(1)(C) of the Federal Employees Benefits Improvement Act of 
5 use 8341 note. 1986 (Public Law 99-251; 100 Stat. 22), is amended— 
(1) in clause (i), by inserting ", and before May 8, 1987" 
before the semicolon; and 
(2) by amending clause (iv) to read as follows: 
"(iv) the former spouse files an application for the survi-
vor annuity with the Office on or before May 7, 1989; and"; 
and 
(3) by amending clause (v) by striking out "at the time of filing 
such application 
and inserting in lieu thereof "on May 7, 
1987". 
5 u s e 8334 note. 
SEC. 128. REFUNDS OF CERTAIN EXCESS DEDUCTIONS TAKEN AFTER 1983 
TO OFFSET EMPLOYEES UNDER THE CIVIL SERVICE RETIRE-
MENT SYSTEM. 
(a) REFUND ELIGIBILITY.—An individual shall upon written ap-
plication to the Office of Personnel Management, receive a refund 
under subsection (b), if such individual— 
(1) was subject to section 8334(a)(1) of title 5, United States 
Code, for any period of service after December 31, 1983, because 
of an election under section 208(a)(1)(B) of the Federal Em-
ployees' Retirement Contribution Temporary Adjustment Act of 
1983 (97 Stat. 1107; 5 U.S.C. 8331 note); 
(2) is not eligible to make an election under section 301(b) of 
the Federal Employees' Retirement System Act of 1986 (Public 
Law 99-335; 100 Stat. 599); and 
(3) becomes subject to section 8334(k) of title 5, United States 
Code. 
O
b
) REFUND COMPUTATION.—An individual eligible for a refund 
under subsection (a) shall receive a refund— 
(1) for the period beginning on January 1, 1984, and ending on 
December 31, 1986, for the amount by which— 
(A) the total amount deducted from such individual's 
basic pay under section 8334(a)(1) of title 5, United States 
Code, for service described in subsection (a)(1) of this sec-
tion, exceeds 
(B) 1.3 percent of such individual's total basic pay for 
such period; and 
(2) for the period beginning on January 1, 1987, and ending on 
the day before such individual becomes subject to section 
8334(k) of title 5, United States Code, for the amount by which— 
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1759 
(A) the total amount deducted from such individual's 
basic pay under section 8334(a)(1) of title 5, United States 
Code, for service described in subsection (a)(1) of this sec-
tion, exceeds 
(B) the total amount which would have been deducted if 
such individual's basic pay had instead been subject to 
section 8334(k) of title 5, United States Code, during such 
period. 
(c) INTEREST COMPUTATION.—A refund under this section shall be 
computed with interest in accordance with section 8334(e) of title 5, 
United States Code, and regulations prescribed by the Office of 
Personnel Management. 
SEC. 129. ADJUSTMENTS IN METHODS OF ANNUITY PAYMENTS FOR 
YEARS WITH ZERO OR NEGATIVE INFLATION. 
Section 8434(a)(2) (C) and (D) of title 5, United States Code, is 
amended to read as follows: 
"(C) a method described in subparagraph (A) which pro-
vides for automatic adjustments in the amount of the annu-
ity payable so long as the amount of the annuity payable in 
any one year shall not be less than the amount payable in 
the previous year; 
"(D) a method described in subparagraph (B) which pro-
vides for automatic adjustments in the amount of the annu-
ity payable so long as the amount of the annuity payable in 
any one year shall not be less than the amount payable in 
the previous year; and". 
SEC. 130. COVERAGE UNDER THE FEDERAL EMPLOYEES' RETIREMENT 
SYSTEM FOR INDIVIDUALS SUBJECT TO THE FOREIGN SERV-
ICE PENSION SYSTEM WHO ENTER FEDERAL EMPLOYMENT 
OTHER THAN THE FOREIGN SERVICE. 
Section 8402 of title 5, United States Code, is amended— 
(1) in the matter following subparagraph (B) of paragraph (2) 
of subsection (b) by inserting "subsection (d) of this section or" 
before "title III"; and 
(2) by inserting after subsection (c) the following new subsec-
tion (d): 
"(d) Paragraph (2) of subsection (b) shall not apply to an individual 
who becomes subject to subchapter II of chapter 8 of title I of the 
Foreign Service Act of 1980 (relating to the Foreign Service Pension 
System) pursuant to an election and who subsequently enters a 
position in which, but for such paragraph (2), he would be subject to 
this chapter.". 
SEC. 131. ANNUITY COMPUTATIONS FOR THE FEDERAL EMPLOYEES' 
RETIREMENT SYSTEM. 
(a) SURVIVOR REDUCTION COMPUTATION.—Section 8419(a) of title 5, 
United States Code, is amended— 
(1) in paragraph (1) by striking out ", shall be reduced" and 
inserting in lieu thereof "or one-half of the annuity, if jointly 
designated for this purpose by the employee or Member and the 
spouse of the employee or Member under procedures prescribed 
by the Office of Personnel Management, shall be reduced"; and 
(2) in paragraph (2)(A) by striking out ", shall be reduced" and 
inserting in lieu thereof "or one-half of the annuity, if jointly 
designated for this purpose by the employee or Member and the 
101 STAT. 1760 
PUBLIC LAW 100-238—JAN. 8, 1988 
spouse of the employee or Member under procedures prescribed 
by the Office of Personnel Management, shall be reduced", 
(b) SURVIVOR BENEFITS.—Section 8442 of title 5, United States 
Code, is amended— 
(1) in subsection (a)(1) by inserting after "with respect to the 
annuitant," the following: "(or one-half thereof, if designated 
for this purpose under section 8419 of this title),"; and 
(2) in subsection (g)(1) by inserting after "paragraph (2)" the 
following: "(or one-half thereof if designated for this purpose 
under section 8419 of this title)". 
SEC. 132. LOANS FROM EMPLOYEES' CONTRIBUTION TO THE THRIFT SAV-
INGS FUND. 
Section 8433(i)(3) of title 5, United States Code, is amended to read 
as follows: 
"(3) Loans under this subsection shall be available to all 
employees and Members on a reasonably equivalent basis, and 
shall be subject to such other conditions as the Board may by 
regulation prescribe. The restrictions of section 8477(c)(1) of this 
title shall not apply to loans made under this subsection.". 
SEC. 133. FIDUCIARY RESPONSIBILITIES AND LIABILITIES IN MANAGE-
MENT OF THRIFT SAVINGS FUND. 
(a) FIDUCIARY RESPONSIBILITIES AND LIABILITIES.—Section 8477(e) 
of title 5, United States Code, is amended— 
(1) in paragraph (1)(A) by inserting before the period at the 
end of the first sentence a comma and "except as provided in 
paragraphs (3) and (4) of this subsection"; 
(2) in paragraph (IXB) by striking out "Internal Revenue Code 
of 1954" and inserting in lieu thereof "Internal Revenue Code of 
1986"; 
(3) in paragraph (1)(D) by inserting "only" before "if in the 
matter preceding clause (i); 
(4) by redesignating paragraphs (4) and (5) as paragraphs (7) 
and (8), respectively; and 
(5) by striking out paragraphs (2) and (3) and inserting in lieu 
thereof: 
"(2) No civil action may be maintained against any fiduciary with 
respect to the responsibilities, liabilities, and penalties authorized or 
provided for in this section except in accordance with paragraphs (3) 
and (4). 
"(3) A civil action may be brought in the district courts of the 
United States— 
"(A) by the Secretary of Labor against any fiduciary other 
than a Member of the Board or the Executive Director of the 
Board— 
"(i) to determine and enforce a liability under paragraph 
(1)(A); 
"(ii) to collect any civil penalty under paragraph (1)(B); 
"(iii) to enjoin any act or practice which violates any 
provision of subsection (b) or (c); 
"(iv) to obtain any other appropriate equitable relief to 
redress a violation of any such provision; or 
"(v) to enjoin any act or practice which violates subsec-
tion (g)(2) or (h) of section 8472 of this title; 
"(B) by any participant, beneficiary, or fiduciary against any 
fiduciary— 
, 
. 
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1761 
"(i) to enjoin any act or practice which violates any 
provision of subsection (b) or (c); 
"(ii) to obtain any other appropriate equitable relief to 
redress a violation of any such provision; 
"(iii) to enjoin any act or practice which violates subsec-
tion (g)(2) or (h) of section 8472 of this title; or 
"(C) by any participant or beneficiary— 
"(i) to recover benefits of such participant or beneficiary 
under the provisions of subchapter III of this chapter, to 
enforce any right of such participant or beneficiary under 
such provisions, or to clarify any such right to future 
benefits under such provisions; or 
"(ii) to enforce any claim otherwise cognizable under Claims. 
sections 1346(b) and 2671 through 2680 of title 28, if the 
remedy against the United States provided by sections 
1346(b) and 2672 of title 28 for damages for injury or loss of 
property caused by the negligent or wrongful act or omis-
sion of any fiduciary while acting within the scope of his 
duties or employment is exclusive of any other civil action 
or proceeding by the participant or beneficiary for recovery 
of money by reason of the same subject matter against the 
fiduciary (or the estate of such fiduciary) whose act or 
omission gave rise to such action or proceeding, whether or 
not such action or proceeding is based on an alleged viola-
tion of subsection (b) or (c). 
"(4)(A) In all civil actions under paragraph (3)(A), attorneys ap-
pointed by the Secretary may represent the Secretary (except as 
provided in section 518(a) of title 28), however all such litigation 
shall be subject to the direction and control of the Attorney General. 
"(B) The Attorney General shall defend any civil action or 
proceeding brought in any court against any fiduciary referred to in 
paragraph (3)(C)(ii) (or the estate of such fiduciary) for any such 
injury. Any fiduciary against whom such a civil action or proceeding 
is brought shall deliver, within such time after date of service or 
knowledge of service as determined by the Attorney General, all 
process served upon such fiduciary (or an attested copy thereof) to 
the Executive Director of the Board, who shall promptly furnish 
copies of the pleading and process to the Attorney General and the 
United States Attorney for the district wherein the action or 
proceeding is brought. 
"(C) Upon certification by the Attorney General that a fiduciary 
described in paragraph (3)(C)(ii) was acting in the scope of such 
fiduciary's duties or employment as a fiduciary at the time of the 
occurrence or omission out of which the action arose, any such civil 
action or proceeding commenced in a State court shall be— 
"(i) removed without bond at any time before trial by the 
Attorney General to the district court of the United States for 
the district and division in which it is pending; and 
"(ii) deemed a tort action brought against the United States 
under the provisions of title 28 and all references thereto. 
"(D) The Attorney General may compromise or settle any claim Claims. 
asserted in such civil action or proceeding in the manner provided in 
section 2677 of title 28, and with the same effect. To the extent 
section 2672 of title 28 provides that persons other than the Attor-
ney General or his designee may compromise and settle claims, and 
that payment of such claims may be made from agency appropria-
101 STAT. 1762 
PUBLIC LAW 100-238—JAN. 8, 1988 
Claims. 
Claims. 
Fraud. 
5 u s e 8477 note. 
5 u s e 8477 and 
note. 
5 u s e 8468. 
tions, such provisions shall not apply to claims based upon an 
alleged violation of subsection (b) or (c). 
"(E) For the purposes of paragraph (3)(C)(ii) the provisions of 
sections 2680(h) of title 28 shall not apply to any claim based upon 
an alleged violation of subsection (b) or (c). 
"(F) Notwithstanding sections 1346(b) and 2671 through 2680 of 
title 28, whenever an award, compromise, or settlement is made 
under such sections upon any claim based upon an alleged violation 
of subsection (b) or (c), payment of such award, compromise, or 
settlement shall be made to the appropriate account within the 
Thrift Savings Fund, or where there is no such appropriate account, 
to the participant or beneficiary bringing the claim. 
"(G) For purposes of paragraph (3)(C)(ii), fiduciary includes only 
the Members of the Board and the Board's Executive Director. 
"(5) Any relief awarded against a Member of the Board or the 
Executive Director of the Board in a civil action authorized by 
paragraphs (3) and (4) may not include any monetary damages or 
any other recovery of money. 
"(6) An action may not be commenced under paragraph (3) (A) or 
(B) with respect to a fiduciary's breach of any responsibility, duty, or 
obligation under subsection (b) or a violation of subsection (c) after 
the earlier o
f
— 
"(A) 6 years after (i) the date of the last action which con-
stituted a part of the breach or violation, or (ii) in the case of an 
omission, the latest date on which the fiduciary could have 
cured the breach or violation; or 
"(B) 3 years after the earliest date on which the plaintiff had 
actual knowledge of the breach or violation, except that, in the 
case of fraud or concealment, such action may be commenced 
not later than 6 years after the date of discovery of such breach 
or violation,". 
(b) EFFECTIVE DATE.—The provisions of section 8477(e) (1), (2), (3), 
(4), (5), and (6) of title 5, United States Code (as amended by 
subsection (a) of this section), shall apply to any civil action or 
proceeding arising from any act or omission occurring on or after 
October 1,1986. 
(c) REPEAL.—The provisions of subsection (a) (and the amendments 
to section 8477(e) of title 5, United States Code, contained therein) 
and subsection O
b
) of this section are repealed effective on Decem-
ber 31, 1990. On and after December 31, 1990, the provisions of 
section 8477(e) of title 5, United States Code, shall be in effect as 
such provisions were in effect on the date immediately preceding the 
date of enactment of this section. 
SEC. 134. AMENDMENTS CONCERNING REEMPLOYED ANNUITANTS. 
(a) AMENDMENT TO CHAPTER 84 OF TITLE 5, UNITED STATES CODE.— 
Section 8468 is amended to read as follows: 
"§ 8468. Annuities and pay on reemployment 
"(a) If an annuitant, except a disability annuitant whose annuity 
is terminated because of the annuitant's recovery or restoration of 
earning capacity, becomes employed in an appointive or elective 
position, an amount equal to the annuity allocable to the period of 
actual employment shall be deducted from the annuitant's pay, 
except for lump-sum leave payment purposes under section 5551. 
Unless the annuitant's appointment is on an intermittent basis or is 
to a position as a justice or judge (as defined by section 451 of title 
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1763 
28) or as an employee subject to another retirement system for 
Government employees, or unless the annuitant is serving as Presi-
dent, deductions for the Fund shall be withheld from the annu-
itant's pay under section 8422(a) and contributions under section 
8423 shall be made. The deductions and contributions referred to in 
the preceding provisions of this subsection shall be deposited in the 
Treasury of the United States to the credit of the Fund. The 
annuitant's lump-sum credit may not be reduced by annuity paid 
during the reemployment. 
"(b)(1)(A) If an annuitant subject to deductions under the second 
sentence of subsection (a) serves on a full-time basis for at least 1 
year, or on a part-time basis for periods equivalent to at least 1 year 
of full-time service, the annuitant's annuity on termination of re-
employment shall be increased by an annuity computed under 
section 8415 (a) through (0 as may apply based on the period of 
reemployment and the basic pay, before deduction, averaged during 
the reemployment. 
"(B)(i) If the annuitant is receiving a reduced annuity as provided 
in section 8419, the increase in annuity payable under subparagraph 
(A) is reduced by 10 percent and the survivor annuity or combina-
tion of survivor annuities payable under section 8442 or 8445 (or 
both) is increased by 50 percent of the increase in annuity payable 
under subparagraph (A), unless, at the time of claiming the increase 
payable under subparagraph (A), the annuitant notifies the Office in 
writing that the annuitant does not desire the survivor annuity to 
be increased. 
"(ii) If an annuitant who is subject to the deductions referred to in 
subparagraph (A) dies while still reemployed, after having been 
reemployed for not less than 1 year of full-time service (or the 
equivalent thereof, in the case of full-time employment), the survi-
vor annuity payable is increased as though the reemployment had 
otherwise terminated. 
"(2)(A) If an annuitant subject to deductions under the second 
sentence of subsection (a) serves on a full-time basis for at least 5 
years, or on a part-time basis for periods equivalent to at least 5 
years of full-time service, the annuitant may elect, instead of the 
benefit provided by paragraph (1), to have such annuitant's rights 
redetermined under this chapter. 
"(B) If an annuitant who is subject to the deductions referred to in 
subparagraph (A) dies while still reemployed, after having been 
reemployed for at least 5 years of full-time service (or the equivalent 
thereof in the case of part-time employment), any person entitled to 
a survivor annuity under section 8442 or 8445 based on the service of 
such annuitant shall be permitted to elect, in accordance with 
regulations prescribed by the Office of Personnel Management, to 
have such person's rights under subchapter IV redetermined. A 
redetermined survivor annuity elected under this subparagraph 
shall be in lieu of an increased annuity which would otherwise be 
pavable in accordance with paragraph (l)(B)(ii). 
*(3) If an annuitant subject to deductions under the second sen-
tence of subsection (a) serves on a full-time basis for a period of less 
than 1 year, or on a part-time basis for periods equivalent to less 
than 1 year of full-time service, the total amount withheld under 
section 8422(a) from the annuitant's basic pay for the period or 
periods involved shall, upon written application to the Office, be 
payable to the annuitant (or the appropriate survivor or survivors, 
determined in the order set forth in section 8424(d)). 
101 STAT. 1764 
PUBLIC LAW 100-238—JAN. 8, 1988 
"(c) This section does not apply to an individual appointed to serve 
as a Governor of the Board of Governors of the United States Postal 
Service. 
"(d) If an annuitant becomes employed as a justice or judge of the 
United States, as defined by section 451 of title 28, the annuitant 
may, at any time prior to resignation or retirement from regular 
active service as such a justice or judge, apply for and be paid, in 
accordance with section 8424(a), the amount (if any) by which the 
lump-sum credit exceeds the total annuity paid, notwithstanding the 
time limitation contained in such section for filing an application for 
payment. 
"(e) A reference in this section to an 'annuity' shall not be 
considered to include any amount payable from a source other than 
the Fund.". 
(b) AMENDMENT TO FERSA.—Section 302(a)(12) of the Federal 
5 use 8331 note. Employees' Retirement System Act of 1986 is amended to read as 
follows: 
"(12)(A)(i) If the electing individual is a reemployed annuitant 
under section 8344 of title 5, United States Code, under conditions 
allowing the annuity to continue during reemployment, payment of 
the annuitant's annuity shall continue after the effective date of the 
election, and an amount equal to the annuity allocable to the period 
of actual employment shall continue to be deducted from the annu-
itant's pay and deposited as provided in subsection (a) of such 
section. Deductions from pay under section 8422(a) of such title and 
contributions under section 8423 of such title shall begin effective on 
the effective date of the election. 
"(ii) Notwithstanding any provision of section 301, an election 
under such section shall not be available to any reemployed annu-
itant who would be excluded from the operation of chapter 84 of title 
5, United States Code, under section 8402(c) of such title (relating to 
exclusions based on the temporary or intermittent nature of one's 
employment). 
"(B) If the annuitant serves on a full-time basis for at least 1 year, 
or on a part-time basis for periods equivalent to at least 1 year of 
full-time service, such annuitant's annuity, on termination of 
reemployment, shall be increased by an annuity computed— 
"(i) with respect to reemployment service before the effective 
date of the election, under section 8339 (a), (b), (d), (e), (h), (i), and 
(n) of title 5, United States Code, as may apply based on the 
reemployment in which such annuitant was engaged before 
such effective date; and 
"(ii) with respect to reemployment service on or after the 
effective date of the election, under section 8415 (a) through (f) of 
such title, as may apply based on the reemployment in which 
such annuitant was engaged on or after such effective date; 
with the 'average pay' used in any computation under clause (i) or 
(ii) being determined (based on rates of pay in effect during the 
period of reemployment, whether before, on, or after the effective 
date of the election) in the same way as provided for in paragraph 
(6). If the annuitant is receiving a reduced annuity as provided in 
section 8339(j) or section 8339(k)(2) of title 5, United States Code, the 
increase in annuity payable under this subparagraph is reduced by 
10 percent and the survivor annuity payable under section 8341(b) of 
such title is increased by 55 percent of the increase in annuity 
payable under this subparagraph, unless, at the time of claiming the 
increase payable under this subparagraph, the annuitant notifies 
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1765 
the Office of Personnel Management in writing that such annuitant 
does not desire the survivor annuity to be increased. If the annu-
itant dies while still reemployed, after having been reemployed for 
at least 1 full year (or the equivalent thereof, in the case of part-time 
employment), any survivor annuity payable under section 8341(b) of 
such title based on the service of such annuitant is increased as 
though the reemployment had otherwise terminated. In applying 
paragraph (7) to an amount under this subparagraph, any portion of 
such amount attributable to clause (i) shall be adjusted under 
subparagraph (A) of such paragraph, and any portion of such 
amount attributable to clause (ii) shall be adjusted under subpara-
graph (B) of such paragraph. 
"(C)(i) If the annuitant serves on a full-time basis for at least 5 
years, or on a part-time basis for periods equivalent to at least 5 
years of full-time service, such annuitant may elect, instead of the 
benefit provided by subparagraph (B), to have such annuitant's 
rights redetermined, effective upon separation from employment. If 
the annuitant so elects, the redetermined annuity will become 
payable as if such annuitant were retiring for the first time based on 
the separation from reemployment service, and the provisions of 
this section concerning computation of annuity (other than any 
provision of this paragraph) shall apply. 
"(ii) If the annuitant dies while still reemployed, after having Regulations. 
been reemployed for at least 5 full years (or the equivalent thereof, 
in the case of part-time employment), any person entitled to a 
survivor annuity under section 8341(b) of title 5, United States Code, 
based on the service of such annuitant shall be permitted to elect to 
have such person's rights redetermined in accordance with regula-
tions which the Office shall prescribe. Redetermined benefits elected 
under this clause shall be in lieu of any increased benefits which 
would otherwise be payable in accordance with the next to last 
sentence of subparagraph (B). 
"(D) If the annuitant serves on a full-time basis for less than 1 
year (or the equivalent thereof, in the case of part-time employ-
ment), any amounts withheld under section 8422(a) of title 5, United 
States Code, from such annuitant's pay for the period (or periods) 
involved shall, upon written application to the Office, be payable to 
such annuitant (or the appropriate survivor or survivors, deter-
mined in the order set forth in section 8342(c) of such title). 
"(E) For purposes of determining the period of an annuitant's 
reemployment service under this paragraph, a period of reemploy-
ment service shall not be taken into account unless— 
"(i) with respect to service performed before the effective date 
of the election under section 301, it is service which, if per-
formed for at least 1 full year, would have allowed such annu-
itant to elect under section 8344(a) of title 5, United States Code, 
to have deductions withheld from pay; or 
"(ii) with respect to service performed on or after the effective 
date of the election under section 301, it is service with respect 
to which deductions from pay would be required to be withheld 
under the second sentence of section 8468(a) of title 5, United 
States Code.". 
(c) TECHNICAL AMENDMENT.—Section 302(a)(4) of the Federal 
Employees' Retirement System Act of 1986 is amended by striking 
5 USC 8331 note. 
out all before "benefits" and inserting "Accrued". 
(d) EFFECTIVE DATE.— 
5 USC 8468 note. 
101 STAT. 1766 
PUBLIC LAW 100-238—JAN. 8, 1988 
(1) GENERALLY.—The amendments made by this section shall 
take effect on the date of the enactment of this Act, and as 
provided in paragraph (2), shall apply with respect to any 
individual who becomes a reemployed annuitant on or after 
such date. 
(2) EXCEPTION.—The amendment made by subsection (b) shall 
apply with respect to any election made by a reemployed annu-
itant on or after the date of the enactment of this Act. 
Texas. 
SEC. 135. DESIGNATION OF UNITED STATES POST OFFICE BUILDING. 
The United States Post Office Building located at 809 Nueces Bay 
Boulevard, Corpus Christi, Texas, shall be designated and hereafter 
known as the "Dr. Hector Perez Garcia Post Office Building". Any 
reference in any law, map, regulation, document, record, or other 
paper of the United States to that building shall be deemed to be a 
reference to the "Dr. Hector Perez Garcia Post Office Building". 
SEC. 136. CONTINUED COVERAGE FOR CERTAIN EMPLOYEES AND ANNU-
ITANTS OF THE ALASKA RAILROAD IN FEDERAL HEALTH 
BENEFITS PLANS AND LIFE INSURANCE PLANS. 
(a) AMENDMENT TO ALASKA RAILROAD TRANSFER ACT OF 1982.— 
Section 607 of the Alaska Railroad Transfer Act of 1982 (45 U.S.C. 
1206) is amended by adding at the end thereof the following new 
subsection: 
"(e)(1) Any person described under the provisions of paragraph (2) 
may elect life insurance coverage under chapter 87 of title 5, United 
States Code, and enroll in a health benefits plan under chapter 89 of 
title 5, United States Code, in accordance with the provisions of this 
subsection. 
"(2) The provisions of paragraph (1) shall apply to any person 
who— 
"(A)(i) retired from the State-owned railroad during the 
period beginning on or after January 4,1985 through the date of 
enactment of this subsection; and 
"(ii)(I) was covered under a life insurance policy pursuant to 
chapter 87 of title 5, United States Code, on January 4, 1985, for 
the purpose of electing life insurance coverage under the provi-
sions of paragraph (1); or 
"(II) was enrolled in a health benefits plan pursuant to chap-
ter 89 of title 5, United States Code, on January 4, 1985, for the 
purpose of enrolling in a health benefits plan under the provi-
sions of paragraph (1); or 
"(B)(i) on the date of enactment of this subsection is an 
employee of the State-owned railroad; and 
"(ii)(I) has 26 years or more of service (in the civil service as a 
Federal employee or as an employee of the State-owned rail-
road, combined) on the date of retirement from the State-owned 
railroad; and 
"(II)(aa) was covered under a life insurance policy pursuant to 
chapter 87 of title 5, United States Code, on January 4, 1985, for 
the purpose of electing life insurance coverage under the provi-
sions of paragraph (1); or 
"(bb) was enrolled in a health benefits plan pursuant to 
chapter 89 of title 5, United States Code, on January 4, 1985, for 
the purpose of enrolling in a health benefits plan under the 
<u 
provisions of paragraph (1). 
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1767 
"(3) For purposes of this section, any person described under the 
provisions of paragraph (2) shall be deemed to have been covered 
under a life insurance policy under chapter 87 of title 5, United 
States Code, and to have been enrolled in a health benefits plan 
under chapter 89 of title 5, United States Code, during the period 
beginning on January 5, 1985 through the date of retirement of any 
such person. 
"(4) The provisions of paragraph (1) shall not apply to any person 
described under paragraph (2)(B), until the date such person retires 
from the State-owned railroad.". 
(b) ADMINISTRATIVE PROVISIONS.—Within 180 days after the date 
of enactment of this section, the Director of the Office of Personnel 
Management shall notify any person described under the provisions 
of section 607(e)(2)(A) of such Act, for the purpose of the election of a 
life insurance policy or the enrollment in a health benefits plan 
pursuant to the provisions of section 607(e)(1) of the Alaska Railroad 
Transfer Act of 1982 (as amended by subsection (a) of this section). 
SEC. 137. Section 5402 of title 39, United States Code, is 
amended— 
(1) in subsection (f) by striking out "January 1, 1989" and 
inserting in lieu thereof "January 1,1999"; and 
(2) by adding at the end thereof the following new subsection: 
"(g)(1) The Postal Service, in selecting carriers of non-priority 
bypass mail to any point served by more than one carrier in the 
State of Alaska, shall, at a minimum, require that any such carrier 
shall— 
"(A) hold a certificate of public convenience and necessity 
issued under section 401 of the Federal Aviation Act of 1958 (49 
U.S.C. 1371); 
"(B) operate at least 3 scheduled flights each week to such 
point; 
"(C) exhibit an adherence to such scheduled flights to the best 
of the abilities of such carrier; and 
"(D) have provided scheduled service within the State of 
Alaska for at least 12 months before being selected as a carrier 
of non-priority bypass mail. 
"(2) The Postal Service— 
"(A) may provide direct mainline non-priority bypass mail 
service to any bush point in the State of Alaska, without regard 
to paragraph (1)(B), if such service is equal to or better than 
interline service in cost and quality; and 
"(B) shall deduct the non-priority bypass mail poundage flown 
on direct mainline flights to bush points within the State of 
Alaska by any carrier, from such carrier's allocation of the total 
poundage of non-priority bypass mail transported to the nearest 
appropriate Postal Service hub point in any month. 
"(3)(A) The Postal Service shall determine the bypass mail bush 
points and hub points described under paragraph (2)(B) after con-
sultation with the State of Alaska and the affected local commu-
nities and air carriers. 
"(B) Any changes in the determinations of the Postal Service 
under subparagraph (A) shall be made— 
"(i) after consultation with the State of Alaska and the af-
fected local communities and air carriers; and 
"(ii) after giving 12 months public notice before any such 
change takes effect. 
45 u s e 1206 
note. 
Alaska. 
Mail. 
Aircraft and air 
carriers. 
101 STAT. 1768 
PUBLIC LAW 100-238—JAN. 8, 1988 
TITLE II—FOREIGN SERVICE RETIREMENT 
PART A—GENERAL PROVISIONS 
SEC. 201. REFERENCES. 
Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment or 
repeal to a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Foreign 
Service Act of 1980 (22 U.S.C. 4041 et seq.). 
SEC. 202. FORMER SPOUSES MARRIED BETWEEN 9 MONTHS AND 10 
YEARS. 
(a) IN GENERAL.—Subchapter I of chapter 8 (22 U.S.C. 4041 et seq.) 
is amended by adding after section 829 the following new section: 
22 use 4069-1. 
"SEC. 830. QUALIFIED FORMER WiVES AND HusBANDS.—(a) Notwith-
standing section 4(h) of the Civil Service Retirement Spouse Equity 
Act of 1984, section 827 of this Act shall apply with respect to 
section 8339(j), section 8341(e), and section 8341(h) of title 5, United 
States Code, and section 4 (except for subsection (b)) of the Civil 
Service Retirement Spouse Equity Act of 1984 to the extent that 
those sections apply to a qualified former wife or husband. For the 
purposes of this section any reference in the Civil Service Retire-
ment Spouse Equity Act of 1984 to the effective date of that Act 
shall be deemed to be a reference to the effective date of this section. 
"(b)(1) Payments pursuant to this section which would otherwise 
be made to a participant or former participant based upon his 
service shall be paid (in whole or in part) by the Secretary of State to 
another person if and to the extent expressly provided for in the 
terms of any court order or spousal agreement. Any payment under 
this paragraph to a person bars recovery by any other person. 
"(2) Paragraph (1) shall only apply to payments made by the 
Secretary of State under this chapter after the date of receipt by the 
Secretary of State of written notice of such court order or spousal 
agreement and such additional information and documentation as 
the Secretary of State may prescribe. 
"(c) For the purposes of this section, the term 'qualified former 
wife or husband' means a former wife or husband of an individual 
if— 
"(1) such individual performed at least 18 months of civilian 
service creditable under this chapter; and 
"(2) the former wife or husband was married to such individ-
ual for at least 9 months but not more than 10 years. 
Regulations. 
"(d) Regulations issued pursuant to section 827 to implement this 
Effective date. 
section shall be submitted to the Committee on Post Office and Civil 
Service and the Committee on Foreign Affairs of the House of 
Representatives and the Committee on Governmental Affairs and 
the Committee on Foreign Relations of the Senate. Such regulations 
shall not take effect until 60 days after the date on which such 
regulations are submitted to the Congress.". 
(b) CONFORMING AMENDMENT.—The table of contents in section 2 
of the Foreign Service Act of 1980 is amended by inserting after the 
item relating to section 829 the following: 
"Sec. 830. Qualified former wives and husbands.". 
. „.r^ 
,,i, - .* -
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1769 
SEC. 203. ELECTION TO PROVIDE SURVIVOR ANNUITY FOR CERTAIN 
22 USC 4046 
SPOUSES ACQUIRED BEFORE THE EFFECTIVE DATE OF THE 
note. 
FOREIGN SERVICE ACT OF 1980. 
(a) ELECTION.—A former participant who married his or her cur-
rent spouse before the effective date of the Foreign Service Act of 
1980 and who married such spouse after retirement under the 
Foreign Service Retirement and DisabiUty System and who was 
unable to provide a survivor annuity for such spouse because— 
(1) the participant was married at the time of retirement and 
j . w
v J <.; 
elected not to provide a survivor annuity for that spouse at the 
time of retirement, or 
(2) subject to subsection (e), the participant failed to notify the 
Secretary of State of the participant's post-retirement marriage 
within one year after the marriage, 
may make the election described in subsection (b). 
(b) ELECTION DESCRIBED.— 
(1) The election referred to in subsection (a) is an election in 
writing— 
(A) to provide for a survivor annuity for such spouse 
under section 806(g) of the Foreign Service Act of 1980 (22 
U.S.C. 4046(g)); 
(B) to have his or her annuity reduced under section 
806(b)(2) of such Act; and 
(C) to deposit in the Foreign Service Retirement and 
Disability Fund an amount determined by the Secretary of 
State, as nearly as may be administratively feasible, to 
reflect the amount by which such participant's annuity 
would have been reduced had the election been continu-
ously in effect since the annuity commenced, plus interest 
computed under paragraph (2). 
(2) For the purposes of paragraph (1), the annual rate of 
interest shall be 6 percent for each year during which the 
annuity would have been reduced if the election had been in 
effect on and after the date the annuity commenced. 
(c) OFFSET.—If the participant does not make the deposit referred 
to in subsection (b)(1)(C), the Secretary of State shall collect such 
amount by offset against such participant's annuity, up to a maxi-
mum of 25 percent of the net annuity otherwise payable to such 
participant. Such participant is deemed to consent to such offset. 
(d) NOTICE.—The Secretary of State shall provide for notice to the 
general public of the right to make an election under this section. 
(e) PROOF OF ATTEMPTED ELECTION.—In any case in which subsec-
tion (a)(2) applies, the retired employee or Member shall provide the 
Secretary of State with such documentation as the Secretary of 
State shall decide is appropriate, to show that such participant 
attempted to elect a reduced annuity with survivor benefit for his or 
her current spouse and that such election was rejected by the 
Secretary of State because it was untimely filed. 
(f) DEPOSIT.—A deposit required by this subsection may be made 
by the surviving spouse of the participant. 
(g) LIMITATION.—The election authorized in subsection (a) may 
only be made within one year after the date of enactment of this 
title in accordance with procedures prescribed by the Secretary of 
State. 
(h) DEFINITIONS.—For the purposes of this section, the terms 
"participant" and "surviving spouse" have the same meaning given 
101 STAT. 1770 
PUBLIC LAW 100-238—JAN. 8, 1988 
such terms in subchapter I of chapter 8 of the Foreign Service Act of 
1980. 
SEC. 
2
0
4
. BENEFITS 
FOR 
CERTAIN 
FORMER SPOUSES 
OF 
MEMBERS 
OF 
THE 
FOREIGN 
SERVICE. 
(a) IN GENERAL.—Subchapter I of chapter 8 (22 U.S.C. 3901 et seq.), 
as amended by section 202 of this title, is amended by inserting after 
section 830 the following: 
22 use 4069a-l. 
"SEC. 831. RETIREMENT BENEFITS FOR CERTAIN FORMER SPOUSES. 
"(a) Any individual who was a former spouse of a participant or 
former participant on February 14, 1981, shall be entitled, to the 
extent of available appropriations, and except to the extent such 
former spouse is disqualified under subsection (b), to benefits— 
"(1) if married to the participant throughout the creditable 
service of the participant, equal to 50 percent of the benefits of 
the participant; or 
"(2) if not married to the participant throughout such cred-
itable service, equal to that former spouse's pro rata share of 50 
percent of such benefits. 
"(b) A former spouse shall not be entitled to benefits under this 
section i
f
— 
"(1) the former spouse remarries before age 55; or 
"(2) the former spouse was not married to the participant at 
least 10 years during service of the participant which is cred-
itable under this chapter with at least 5 years occurring while 
the participant was a member of the Foreign Service. 
"(c)(1) The entitlement of a former spouse to benefits under this 
section— 
"(A) shall commence on the later of— 
"(i) the day the participant upon whose service the bene-
fits are based becomes entitled to benefits under this chap-
ter; or 
"(ii) the first day of the month in which the divorce or 
annulment involved becomes final; and 
"(B) shall terminate on the earlier o
f
— 
"(i) the last day of the month before the former spouse 
dies or remarries before 55 years of age; or 
"(ii) the date of the benefits of the participant terminates. 
"(2) Notwithstanding paragraph (1), in the case of any former 
spouse of a disability annuitant— 
"(A) the benefits of the former spouse shall commence on the 
date the participant would qualify on the basis of his or her 
creditable service for benefits under this chapter (other than a 
disability annuity) or the date the disability annuity begins, 
whichever is later, and 
"(B) the amount of benefits of the former spouse shall be 
calculated on the basis of benefits for which the participant 
would otherwise so qualify. 
"(3) Benefits under this section shall be treated the same as an 
annuity under section 814(a)(7) for purposes of section 806(h) or any 
comparable provision of law. 
"(4)(A) Benefits under this section shall not be payable unless 
appropriate written application is provided to the Secretary, com-
plete with any supporting documentation which the Secretary may 
by regulation require, within 30 months after the effective date of 
this section. The Secretary may waive the 30-month application 
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1771 
requirement under this subparagraph in any case in which the 
Secretary determines that the circumstances so warrant. 
"(B) Upon approval of an appHcation provided under subpara-
graph (A), the appropriate benefits shall be payable to the former 
spouse with respect to all periods before such approval during which 
the former spouse was entitled to such benefits under this section, 
but in no event shall benefits be payable under this section with 
respect to any period before the effective date of this section. 
"(d) For the purpose of this section, the term 'benefits' means— 
"(1) with respect to a participant or former participant subject 
to this subchapter, the annuity of the participant or former 
participant; and 
"(2) with respect to a participant or former participant subject 
to subchapter II, the benefits of the participant or former 
participant under that subchapter. 
"(e) Nothing in this section shall be construed to impair, reduce, 
-: 
or otherwise affect the annuity or the entitlement to an annuity of a 
participant or former participant under this chapter. 
"SEC. 832. SURVIVOR BENEFITS FOR CERTAIN FORMER SPOUSES. 
22 USC 4069b-l. 
"(a) Any individual who was a former spouse of a participant or 
former participant on February 14, 1981, shall be entitled, to the 
extent of available appropriations, and except to the extent such 
former spouse is disqualified under subsection (b), to a survivor 
annuity equal to 55 percent of the greater of— 
"(1) the full amount of the participant's or former partici- 
% . .. 
pant's annuity, as computed under this chapter; or 
"(2) the full amount of what such annuity as so computed 
would be if the participant or former participant had not with-
drawn a lump-sum portion of contributions made with respect 
to such annuity. 
"(b) If an election has been made with respect to such former 
spouse under section 2109 or 806(f), then the survivor annuity under 
subsection (a) of such former spouse shall be equal to the full 
amount of the participant's or former participant's annuity referred 
to in subsection (a) less the amount of such election. 
"(c) A former spouse shall not be entitled to a survivor annuity 
under this section if^ 
"(1) the former spouse remarries before age 55; or 
"(2) the former spouse was not married to the participant at 
^ 
least 10 years during service of the participant which is cred-
itable under this chapter with at least 5 years occurring while 
the participant was a member of the Foreign Service. 
"(d)(1) The entitlement of a former spouse to a survivor annuity 
under this section— 
"(A) shall commence— 
"(i) in the case of a former spouse of a participant or 
former participant who is deceased as of the effective date 
of this section, beginning on such date; and 
"(ii) in the case of any other former spouse, beginning on 
the later o
f
— 
"(I) the date that the participant or former partici-
pant to whom the former spouse was married dies; or 
"(II) the effective date of this section; and 
"(B) shall terminate on the last day of the month before the 
former spouse's death or remarriage before attaining the age 55. 
101 STAT. 1772 
PUBLIC LAW 100-238—JAN. 8, 1988 
"(2)(A) A survivor annuity under this section shall not be payable 
unless appropriate written application is provided to the Secretary, 
complete with any supporting documentation which the Secretary 
may by regulation require, within 30 months after the effective date 
of this section. The Secretary may waive the 30-month application 
requirement under this subparagraph in any case in which the 
Secretary determines that the circumstances so warrant. 
"(B) Upon approval of an application provided under subpara-
graph (A), the appropriate survivor annuity shall be payable to the 
former spouse with respect to all periods before such approval 
during which the former spouse was entitled to such annuity under 
this section, but in no event shall a survivor annuity be payable 
under this section with respect to any period before the effective 
date of this section. 
"(e) The Secretary shall— 
Regulations. 
"(1) as soon as possible, but not later than 60 days after the 
effective date of this section, issue such regulations as may be 
necessary to carry out this section; and 
"(2) to the extent practicable, and as soon as possible, inform 
each individual who was a former spouse of a participant or 
former participant on February 14, 1981, of any rights which 
such individual may have under this section. 
"(f) Nothing in this section shall be construed to impair, reduce, or 
otherwise affect the annuity or the entitlement to an annuity of a 
participant or former participant under this chapter. 
22 u s e 4069C-1. 
"SEC. 833. HEALTH BENEFITS FOR CERTAIN FORMER SPOUSES. 
"(a) Except as provided in subsection (c)(1), any individual— 
"(1) formerly married to an employee or former employee of 
the Foreign Service, whose marriage was dissolved by divorce or 
annulment before May 7,1985; 
"(2) who, at any time during the 18-month period before the 
divorce or annulment became final, was covered under a health 
benefits plan as a member of the family of such employee or 
former employee; and 
"(3) who was married to such employee for not less than 10 
years during periods of government service by such employee, is 
eligible for coverage under a health benefits plan in accordance 
with the provisions of this section. 
Regulations. 
"(b)(1) Any individual eligible for coverage under subsection (a) 
may enroll in a health benefits plan for self alone or for self and 
family if, before the expiration of the 6-month period beginning on 
the effective date of this section, and in accordance with such 
procedures as the Director of the Office of Personnel Management 
shall by regulation prescribe, such individual— 
"(A) files an election for such enrollment; and 
"(B) arranges to pay currently into the Employees Health 
Benefits Fund under section 8909 of title 5, United States Code, 
an amount equal to the sum of the employee and agency 
contributions payable in the case of an employee enrolled under 
chapter 89 of such title in the same health benefits plan and 
with the same level of benefits. 
"(2) The Secretary shall, as soon as possible, take all steps 
practicable— 
"(A) to determine the identity and current address of each 
former spouse eligible for coverage under subsection (a); and 
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1773 
"(B) to notify each such former spouse of that individual's 
rights under this section. 
"(3) The Secretary shall waive the 6-month limitation set forth in 
paragraph (1) in any case in which the Secretary determines that 
the circumstances so warrant. 
"(c)(1) Any former spouse who remarries before age 55 is not 
eligible to make an election under subsection (b)(1). 
"(2) Any former spouse enrolled in a health benefits plan pursu- Regulations. 
ant to an election under subsection (b)(1) may continue the enroll-
ment under the conditions of eligibility which the Director of the 
Office of Personnel Management shall by regulation prescribe, 
except that any former spouse who remarries before age 55 shall not 
be eligible for continued enrollment under this section after the end 
of the 31-day period beginning on the date of remarriage. 
"(d) No individual may be covered by a health benefits plan under 
this section during any period in which such individual is enrolled 
in a health benefits plan under any other authority, nor may any 
individual be covered under more than one enrollment under this 
section. 
"(e) For purposes of this section the term 'health benefits plan' 
means an approved health benefits plan under chapter 89 of title 5, 
United States Code.". 
(b) CONFORMING AMENDMENT.—The table of contents in section 2 
of the Foreign Service Act of 1980 is amended by inserting after the 
item relating to section 830 the following: 
"Sec. 831. Retirement benefits for certain former spouses. 
"Sec. 832. Survivor benefits for certain former spouses. 
"Sec. 833. Health benefits for certain former spouses.". 
PART B—FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM 
SEC. 211. DEFINITION OF SURVIVING SPOUSE. 
Paragraph (13) of section 804 (22 U.S.C. 4044) is amended— 
(1) by striking out ", in the case of death in service or 
marriage after retirement,"; 
(2) by striking out "one year" and inserting in lieu thereof "9 
months"; and 
(3) by inserting before the semicolon the following: ", except 
that the requirement for at least 9 months of marriage shall be 
deemed satisfied in any case in which the participant or annu-
itant dies within the applicable 9-month period, i
f
— 
"(A) the death of such participant or annuitant was 
accidental; or 
"(B) the surviving spouse of such individual had been 
previously married to the individual and subsequently di-
vorced and the aggregate time married is at least 9 
months". 
SEC. 212. CONTRIBUTIONS FOR PRIOR SERVICE. 
Paragraph (1) of section 805(d) (22 U.S.C. 4045(d)) is amended— 
(1) by striking out "equal to" and inserting in lieu thereof 
". Special contributions for purposes of subparagraph (A) shall 
equal"; and 
(2) by adding at the end thereof the following: "Special con-
tributions for refunds under subparagraph (B) shall equal the 
amount of the refund I'eceived by the participant.". 
101 STAT. 1774 
PUBLIC LAW 100-238—JAN. 8, 1988 
SEC. 213. COMPUTATION OF ANNUITIES. 
(a) JOINT ELECTION TO WAIVE SURVIVOR ANNUITY WITH RESPECT TO 
A FORMER SPOUSE.—Subparagraph (C) of section 806(b)(1) (22 U.S.C. 
4046(b)(1)) is amended by striking out "12-month" and inserting in 
lieu thereof "24-month". 
(b) RECALL SERVICE.—Paragraph (2) of section 806(i) (22 U.S.C. 
4046 (i)) is amended by striking out "section 814(b)" and inserting in 
lieu thereof "this subchapter". 
SEC. 214. SURVIVOR BENEFITS FOR CHILDREN. 
(a) SURVIVOR BENEFITS FOR CHILDREN.—Section 806 of chapter 8 
(22 U.S.C. 4046) (as amended by section 213 of this Act) is amended— 
(1) in subsection (c), by inserting "or a former spouse who is 
the natural or adoptive parent of a surviving child of the 
annuitant" after "survived by a spouse" each place it appears; 
and 
(2) in subsection (d), by amending the first sentence to read as 
follows: "On the death of the surviving spouse or former spouse 
or termination of the annuity of a child, the annuity of any 
other child or children shall be recomputed and paid as though 
the spouse, former spouse, or child had not survived the partici-
pant.^'. 
(b) DEATH IN SERVICE.—Section 809 (22 U.S.C. 4049) is amended— 
(1) in subsection (c), by inserting "or a former spouse who is 
the natural or adoptive parent of a surviving child of the 
annuitant," after "spouse"; and 
(2) in subsection (d), by inserting "or a former spouse who is 
the natural or adoptive parent of a surviving child of the 
annuitant," after "spouse, . 
SEC. 215. MINIMUM AGE REQUIREMENT. 
(a) DISABILITY ANNUITY.—Subsections (a) and (b) of section 808 (22 
U.S.C. 4048) are each amended by striking out "65" each place it 
appears and inserting in lieu thereof "60". 
(b) DEATH IN SERVICE.—Subsection (e) of section 809 (22 U.S.C. 
4049) is amended by striking out "65" and inserting in lieu thereof 
"60". 
SEC. 216. VOLUNTARY RETIREMENT. 
Section 811 of chapter 8 (22 U.S.C. 4051) is amended by adding at 
the end thereof the following: "The Secretary shall withhold consent 
for retirement under this section by any participant who has not 
been a member of the Service for 5 years. Any participant who 
voluntarily separates from the Service before completing 5 years in 
the System and who, on the date of separation, would be eligible for 
an annuity, based on a voluntary separation, under section 8336 or 
8338 of title 5, United States Code, if the participant had been 
covered under the Civil Service Retirement System rather than 
subject to this chapter while a member of the Service, may receive 
an annuity under section 8336 or 8338, notwithstanding section 
8333(b) of title 5, United States Code, if all contributions transferred 
to the Fund under section 805(c)(1) of this Act, as well as all 
contributions withheld from the participant's pay or contributed by 
the employer, and deposited into the Fund during the period he or 
she was subject to this chapter, including interest on these amounts, 
are transferred to the Civil Service Retirement and Disability Fund 
effective on the date the participant separates from the Service.". 
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1775 
SEC. 217. FORMER SPOUSES. 
(a) 5 YEAR FOREIGN SERVICE REQUIREMENT.—Paragraph (1) of 22 use 4054. 
section 814(a) is amended by inserting "if such former spouse was 
married to the participant for at least 10 years during service of the 
participant which is creditable under this chapter with at least 5 of 
such years occurring while the participant was a member of the 
Foreign Service and' after "annuity". 
(b) COURT ORDER EFFECTIVE 24 MONTHS AFTER MARRIAGE IS 
DISSOLVED.—Paragraph (4) of section 814(a) (22 U.S.C. 4054(a)) is 
amended by striking out "12" and inserting in lieu thereof "24". 
(c) MONTHLY RATE OF ANNUITY NOT APPLICABLE IN CERTAIN 
SITUATION.— 
(1) Subsection (1) of section 806 (22 U.S.C. 4046) is repealed. 
(2) Subsection (d) of section 814 (22 U.S.C. 4054) is repealed. 
SEC. 218. LUMP SUM PAYMENTS. 
(a) REQUIREMENTS FOR PAYMENT.—Subsection (a) of section 815 (22 
U.S.C. 4055) is amended to read as follows: 
"(a)(1) A participant is entitled to be paid a lump-sum credit if the 
participant— 
"(A) is separated from the Service for at least 31 consecutive 
days, or is transferred to a position in which the participant is 
not subject to this chapter and remains in such a position for at 
least 31 consecutive days; 
"(B) files an application with the Secretary of State for pay-
ment of the lump-sum credit; 
"(C) is not reemployed in a position in which the participant 
is subject to this chapter at the time the participant files the 
application; 
"(D) will not become eligible to receive an annuity under this 
subchapter within 31 days after filing the application; and 
"(E) has notified any spouse or former spouse the participant 
may have of the application for payment in accordance with 
regulations prescribed by the Secretary of State. 
Such regulations may provide for waiver of subparagraph (E) under 
circumstances described in section 806(b)(l)D). 
"(2) Such lump-sum credit shall be paid to the participant and 
to any former spouse of the participant in accordance with sub-
section (i).". 
SEC. 219. COST OF LIVING ADJUSTMENTS. 
Paragraph (1) of section 826(c) (22 U.S.C. 4066(c)) is amended to 
read as follows: 
"(1) The first increase (if any) made under this section to an 
annuity which is payable from the Fund to a participant or to 
the surviving spouse or former spouse of a deceased participant 
who died in service or a deceased annuitant whose annuity was 
not increased under this section, shall be equal to the product 
(adjusted to the nearest Vio of 1 percent) of^ 
"(A) Vi2 of the applicable percent change computed under 
subsection (b) of this section, multiplied by 
"(B) the number of months (counting any portion of a 
month as a month)— 
"(i) for which the annuity was payable from the Fund 
before the effective date of the increase, or 
"(ii) in the case of a surviving spouse or former 
spouse of a deceased annuitant whose annuity has not 
101 STAT. 1776 
PUBLIC LAW 100-238—JAN. 8, 1988 
been so increased, since the annuity was first payable 
:•'• 
to the deceased annuitant.". 
PART C—FOREIGN SERVICE PENSION SYSTEM 
SEC. 241. DEFINITION OF LUMP-SUM CREDIT. 
Section 852 of chapter 8 (22 U.S.C. 4071a) is amended— 
(1) by redesignating paragraphs (3), (4), (5), (6), and (7) as 
paragraphs (4), (5), (6), (7), and (8), respectively; and 
(2) by inserting after paragraph (2) the following new para-
graph: 
"(3) the term 'lump-sum credit' means the unrefunded 
amount consisting of— 
"(A) retirement deductions made from the basic pay of a 
participant under section 856 of this chapter (or under 
section 204 of the Federal Employees' Retirement Contribu-
tion Temporary Adjustment Act of 1983); 
"(B) amounts deposited by a participant under section 854 
to obtain credit under this System for prior civilian or 
military service; and 
"(C) interest on the deductions and deposits which, for 
any calendar year, shall be equal to the overall average 
yield to the Fund during the preceding fiscal year from all 
obligations purchased by the Secretary of the Treasury 
during such fiscal year under section 819, as determined by 
the Secretary of the Treasury (compounded annually); but 
does not include interest— 
"(i) if the service covered thereby aggregates 1 year 
or less; or 
"(ii) for a fractional part of a month in the total 
service;". 
SEC. 242. CONTRIBUTION FOR CREDITABLE SERVICE OF EMPLOYEE OF A 
MEMBER OR OFFICE OF THE CONGRESS. 
The second sentence of subsection (e) of section 854 (22 U.S.C. 
4071c) is amended— 
(1) by striking out "matching"; and 
(2) by inserting "determined under section 857(a)" after 
"participant)". 
SEC. 243. CONFORMING AMENDMENT, HEALTH CARE. 
Subsection (b) of section 904 (22 U.S.C. 4084) is amended by 
inserting "or Foreign Service Pension System" after "Foreign Serv-
ice Retirement and Disability System". 
PART D—SAVINGS PROVISIONS AND EFFECTIVE DATE 
22 u s e 4054 
SEC. 261. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as provided in subsection (b), this title 
and the amendments made by this title shall take effect 90 days 
after the date of enactment of this title. 
(b) EXCEPTIONS.— 
(1) The amendments made by section 202 shall apply to any 
individual who, on or after the date of enactment of this title, is 
married to a participant or former participant. 
(2) The amendment made by section 217(a) shall not apply 
with respect to the former spouse of a participant or former 
PUBLIC LAW 100-238—JAN. 8, 1988 
101 STAT. 1777 
participant who is subject to subchapter I of chapter 8 of the 
Foreign Service Act of 1980 if, on the date of enactment of this 
title, that former spouse— 
(A) was the spouse of that participant or former partici-
pant; or 
(B) is entitled to an annuity under section 814 of the 
Foreign Service Act of 1980 pursuant to the divorce or 
annulment of the marriage to that participant or former 
participant. 
(c) DEFINITIONS.—For the purpose of this section, the terms 
"participant" and "former participant" have the same meaning as 
such terms in chapter 8 of the Foreign Service Act of 1980. 
Approved January 8, 1988. 
LEGISLATIVE HISTORY—H.R. 3395: 
HOUSE REPORTS: No. 100-374 (Comm. on Post Office and Civil Service). 
CONGRESSIONAL RECORD, Vol. 183 (1987): 
Oct. 19, considered and passed House. 
Dec. 19, considered and passed Senate, amended. 
Dec. 21, House concurred in Senate amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 24 (1988): 
Jan. 8, Presidential statement.