Civil Service Retirement Spouse Equity Act of 1984
PL 98-615 (H.R.2300), enacted 11/08/1984

PUBLIC LAW 98-615—NOV. 8, 1984 
98 STAT. 3195 
Public Law 98-615 
98th Congress 
An Act 
To provide retirement equity for former spouses of civil service retirees, and for other 
purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may 
be cited as the "Civil Service Retirement Spouse Equity Act of 
1984". 
SEC. 2. Chapter 83 of title 5, United States Code, is amended— 
(1) in section 8331— 
(A) by striking out "and" at the end of paragraph (21); 
(B) by striking out the period at the end of paragraph (22) 
and inserting in lieu thereof a semicolon; and 
(C) by adding at the end thereof the following new 
paragraphs: 
"(23) 'former 
spouse' means a former 
spouse of an 
individual— 
"(A) if such individual performed at least 18 months of 
civilian service covered under this subchapter as an 
employee or Member, and 
"(B) if the former spouse was married to such individual 
for at least 9 months; and 
"(24) 'Indian court' means an Indian court as defined by 
section 201(3) of the Act entitled 'An Act to prescribe penalties 
for certain acts of violence or intimidation, and for other pur-
poses', approved April 11, 1968 (25 U.S.C. 1301(3); 82 Stat. 77)."; 
(2) by amending section 8334(h) to read as follows: 
"(h) For the purpose of survivor annuities, deposits authorized by 
subsections (c), (d), and (j) of this section and by section 8339(j)(5)(C) 
and the last sentence of section 8339(k)(2) of this title may also be 
made by a survivor of an employee or Member."; 
(3) in section 8339— 
(A) by amending subsection (j) to read as follows: 
"(j)(l) The annuity computed under subsections (a)-(i) and (n) of 
this section (or a portion 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) for an employee or Member who is married at the 
time of retiring under this subchapter is reduced as provided in 
paragraph (4) of this subsection in order to provide a survivor 
annuity for the spouse under section 8341(b) of this title, unless the 
employee or Member and the spouse jointly waive the spouse's right 
to a survivor annuity in a written election filed with the Office at 
the time that the employee or Member retires. Each such election 
shall be made in accordance with such requirements as the Office 
shall, by regulation, prescribe, and shall be irrevocable. The Office 
shall provide, by regulation, that an employee or Member may 
waive the survivor annuity without the spouse's consent if the 
employee or Member establishes to the satisfaction of the Office— 
Nov. 8, 1984 
[H.R. 2300] 
Civil Service 
Retirement 
Spouse Equity 
Act of 1984. 
5 u s e 8331 note. 
5 u s e 8331. 
5 u s e 8334. 
Infra. 
Infra. 
Post, p. 3199. 
Regulations. 
Waiver. 
98 STAT. 3196 
PUBLIC LAW 98-615—NOV. 8, 1984 
"(A) that the spouse's whereabouts cannot be determined, or 
"(B) that, due to exceptional circumstances, requiring the 
employee or Member to seek the spouse's consent would other-
wise be inappropriate. 
"(2) If an employee or Member has a former spouse who is entitled 
Post, p. 3199. 
to a survivor annuity as provided in section 8341(h) of this title, the 
annuity of the employee or Member computed under subsections 
(a)-(i) and (n) of this section (or any designated portion of the 
annuity, in the event that the former spouse is entitled to less than 
55 percent of the employee or Member's annuity) is reduced as 
provided in paragraph (4) of this subsection. 
"(3) An employee or Member who has a former spouse may elect, 
under procedures prescribed by the Office, to have the annuity 
computed under subsections (a)-(i) and (n) of this section or a portion 
thereof reduced as provided in paragraph (4) of this subsection in 
order to provide a survivor annuity for such former spouse under 
section 8341(h) of this title. An election under this paragraph shall 
be made at the time of retirement or, if later, within 2 years after 
the date on which the marriage of the former spouse to the 
employee or Member is dissolved, subject to a deposit in the Fund by 
the retired employee or Member, within such 2-year period, of an 
amount determined by the Office, as nearly as may be administra-
tively feasible, to reflect the amount by which the annuity of such 
employee or Member would have been reduced if the election had 
been continuously in effect since the date the annuity commenced, 
plus interest. For the purposes of the preceding sentence, the annual 
rate of interest for each year during which the annuity would have 
been reduced if the election had been in effect since the date the 
annuity commenced shall be 6 percent. If the employee or Member 
does not make such a deposit, the Office shall collect the amount of 
the deposit by offset against the employee or Member's annuity, up 
to a maximum of 25 percent of the net annuity otherwise payable to 
the employee or Member, and the employee or Member is deemed to 
consent to such offset. An election under this paragraph— 
"(A) shall not be effective to the extent that it— 
"(i) conflicts with— 
"(I) any court order or decree referred to in subsec-
Post, p. 8199. 
tion (h)(1) of section 8341 of this title, which was issued 
before the date of such election; or 
"(II) any agreement referred to in such subsection 
which was entered into before such date; or 
"(ii) would cause the total of survivor annuities payable 
Post, p. 3199. 
under subsections (b), (d), (f), and (h) of section 8341 of this 
title based on the service of the employee or Member to 
exceed 55 percent of the annuity to which the employee or 
Member is entitled under subsections (a)-(i) and (n) of this 
section; and 
"(B) shall not be effective, in the case of an employee or 
Member who is then married, unless it is made with the 
spouse's written consent. 
Regulations. 
The Office shall provide by regulation that subparagraph (B) of this 
Waiver. 
paragraph may be waived for either of the reasons set forth in the 
last sentence of paragraph (1) of this subsection. In the case of a 
retired employee or Member whose annuity is being reduced in 
order to provide a survivor annuity for a former spouse, an election 
to provide or increase a survivor annuity for any other former 
spouse (and to continue an appropriate reduction) may be made 
PUBLIC LAW 98-615—NOV. 8, 1984 
98 STAT. 3197 
Termination 
dates. 
Post, p. 3199. 
within the same period that, and subject to the same conditions 
under which, an election could be made under paragraph (5)(B) of 
this subsection for a current spouse (subject to the provisions of this 
paragraph relating to consent of a current spouse, if the retired 
employee or Member is then married). The opportunity to make an 
election under the preceding sentence is in addition to any opportu-
nity otherwise afforded under this paragraph. 
"(4) In order to provide a survivor annuity or combination of 
survivor annuities under subsections (b), (d), (f), and (h) of section 
8341 of this title, the annuity of an employee or Member (or any Post, p. 3199. 
designated portion or portions thereof) is reduced by 2V2 percent of 
the first $3,600 thereof plus 10 percent of so much thereof as exceeds 
$3,600. 
"(5)(A) Any reduction in an annuity for the purpose of providing a 
survivor annuity for the current spouse of a retired employee or 
Member shall be terminated for each full month— 
"(i) after the death of the spouse, or 
"(ii) after the dissolution of the spouse's marriage to the 
employee or Member, except that an appropriate reduction 
shall be made thereafter if the spouse is entitled, as a former 
spouse, to a survivor annuity under section 8341(h) of this title. 
"(BXi) Any reduction in an annuity for the purpose of providing a 
survivor annuity for a former spouse of a retired employee or 
Member shall be terminated for each full month after the former 
spouse remarries before reaching age 55 or dies, unless the employee 
or Member elects, within 2 years after the former spouse's death or 
remarriage, to continue the reduction in order to provide a survivor 
annuity or increase the survivor annuity for the current spouse of 
the retired employee or Member. 
"(ii) Notwithstanding clause (i) of this subparagraph— 
"(I) a reduction in an annuity shall not be terminated under 
such clause, and 
"(ID an election made under such clause with respect to a 
current spouse after a remarriage before age 55 or the death of 
a former spouse shall not be effective, 
if, and to the extent that, continuation of the reduction is necessary 
in order to provide for any survivor annuity, or any increase in a 
survivor annuity, which becomes payable under section 8341(h)(2) of 
this title to any other former spouse as a result of such remarriage 
or death. 
"(C)(i) Upon remarriage, a retired employee or Member who was 
married at the time of retirement (including an employee or 
Member whose annuity was not reduced to provide a survivor 
annuity for the employee or Member's spouse or former spouse as of 
the time of retirement) may irrevocably elect during such marriage, 
in a signed writing received by the Office within 2 years after such 
remarriage or, if later, within 2 years after the death or remarriage 
of any former spouse of such employee or Member who was entitled 
to a survivor annuity under section 8341(h) of this title (or of the last 
such surviving former spouse, if there was more than one), a reduc-
tion in the employee or Member's annuity under paragraph (4) of 
this subsection for the purpose of providing an annuity for such 
employee or Member's spouse in the event such spouse survives the 
employee or Member. 
"(ii) Such election and reduction shall be effective the first day of Effective date. 
the second month after the election is received by the Office, but not 
less than 9 months after the date of the remarriage, and the retired 
98 STAT. 3198 
PUBLIC LAW 98-615—NOV. 8, 1984 
employee or Member shall, within 2 years after the date of the 
remarriage or, if later, the death or remarriage of the former spouse 
(or of the last such surviving former spouse), deposit in the Fund an 
amount determined by the Office of Personnel Management, as 
nearly as may be administratively feasible, to reflect the amount by 
which the annuity of such retired employee or Member would have 
been reduced if the election had been in effect since the date of 
retirement or, if later, the date the previous reduction in such 
retired employee or Member's annuity was terminated under sub-
paragraph (A) or (B) of this paragraph, plus interest. For the pur-
poses of the preceding sentence, the annual rate of interest for each 
year during which an annuity would have been reduced if the 
election had been in effect on and after the applicable date referred 
to in such sentence shall be 6 percent. 
"(iii) If the employee or Member does not make such deposit, the 
Office shall collect such amount by offset against the employee or 
Member's annuity, up to a maximum of 25 percent of the net 
annuity otherwise payable to the employee or Member, and the 
employee or Member is deemed to consent to such offset. 
"(iv) Notwithstanding any other provision of this subparagraph, 
an election under this subparagraph may not be made for the 
purpose of providing an annuity in the case of a spouse by remar-
riage if such spouse was married to the employee or Member at the 
time of such employee or Member's retirement, and all rights to 
survivor benefits for such spouse under this subchapter based on 
marriage to such employee or Member were then waived under 
paragraph (1) of this subsection or a similar prior provision of law."; 
(B) in subsection (k)(l) by striking out "unmarried" in the 
first sentence thereof; and 
(C) by amending subsection (k)(2) to read as follows: 
"(2)(A) An employee or Member, who is unmarried at the time of 
retiring under a provision of law which permits election of a reduced 
annuity with a survivor annuity payable to such employee or Mem-
ber's spouse and who later marries, may irrevocably elect, in a 
signed writing received in the Office within 2 years after such 
employee or Member marries or, if later, within 2 years after the 
death or remarriage of any former spouse of such employee or 
Member who was entitled to a survivor annuity under section 
8341(h) of this title (or of the last such surviving former spouse, if 
there was more than one), a reduction in the retired employee or 
Member's current annuity as provided in subsection (j) of this 
section. 
Effective date. 
"(B)(i) The election and reduction shall take effect the first day of 
the first month beginning 9 months after the date of marriage and 
shall prospectively void any election previously made under para-
graph (1) of this subsection. 
"(ii) Within 2 years after the date of marriage, the retired 
employee or Member (other than an employee or Member who made 
a previous election under paragraph (1) of this subsection) shall 
deposit in the Fund an amount determined by the Office of Person-
nel Management, as nearly as may be administratively feasible, to 
reflect the amount by which the retired employee or Member's 
annuity would have been reduced under subsection (j)(4) of this 
section since the commencing date of the annuity, if the employee or 
Member had been married at the time of retirement and had elected 
to provide a survivor annuity at that time, plus interest. For the 
purposes of the preceding sentence, the annual rate of interest for 
PUBLIC LAW 98-615—NOV. 8, 1984 
98 STAT. 3199 
each year during which the annuity would have been reduced if the 
election had been in effect since the date of the annuity commenced 
shall be 6 percent. 
"(C) If the employee or Member does not make such deposit, the 
Office shall collect such amount by offset against the employee or 
Member's annuity, up to a maximum of 25 percent of the net 
annuity otherwise payable to the employee or Member, and the 
employee or Member is deemed to consent to such offset."; 
(4) in section 8341— 
5 USC 8341. 
(A) in paragraphs (IKA) and (2)(A) of subsection (a), by 
striking out "1 year" and inserting in lieu thereof "9 
months"; 
(B) in subsection (b)— 
(i) by amending paragraph (1) to read as follows: 
"(b)(1) Except as provided in paragraph (2) of this subsection, if an 
employee or Member dies after having retired under this subchapter 
and is survived by a widow or widower, the widow or widower is 
entitled to an annuity equal to 55 percent (or 50 percent if retired 
before October 11, 1962) of an annuity computed under section 
8389(a)-(i) and (n) of this title as may apply with respect to the 
5 USC 8339. 
annuitant, or of such portion thereof as may have been designated 
for this purpose under section 8339(j)(l) of this title, unless the right 
Ante, p. 3195. 
to a survivor annuity was waived under such section 8339(j)(l) or, in 
the case of remarriage, the employee or Member did not file an 
election under section 8339(j)(5)(C) or section 8339(k)(2) of this title. Ante, p. 3195. 
as the case may be."; 
(ii) in the second and third sentences of paragraph (3) 
by striking out "spouse, widow," each place it appears 
and inserting in lieu thereof "widow"; 
(iii) by striking out "60 years of age" at the end of 
paragraph (3) and inserting in lieu thereof "55 years of 
age"; and 
(iv) by adding at the end thereof the following new 
paragraph: 
"(4) Notwithstanding the preceding provisions of this subsection, 
the annuity payable under this subsection to the widow or widower 
of a retired employee or Member may not exceed the difference 
between— 
"(A) the amount which would otherwise be payable to such 
widow or widower under this subsection (determined without 
regard to any waiver or designation under section 8339(j)(l) of 
this title or a prior similar provision of law), and 
"(B) the amount of the survivor annuity payable to any 
former spouse of such employee or Member under subsection (h) 
of this section."; 
(C) in subsection (d)— 
(i) by inserting after the first sentence the following: 
"Notwithstanding the preceding sentence, the annuity payable 
under this subsection to the widow or widower of an employee or 
Member may not exceed the difference between— 
"(A) the amount which would otherwise be payable to such 
widow or widower under this subsection, and 
"(B) the amount of the survivor annuity payable to any 
former spouse of such employee or Member under subsection (h) 
of this section."; and 
(ii) in the last sentence, by redesignating subpara-
graphs (A) and (B) as clauses (i) and (ii), respectively, 
98 STAT. 3200 
PUBLIC LAW 98-615—NOV. 8, 1984 
and by striking out "60 years of age" and inserting in 
lieu thereof "55 years of age"; 
(D) in subsection (e)— 
(i) in paragraph (1), by inserting "or a former spouse 
who is the natural or adoptive parent of a surviving 
child of the employee or Member" after "survived by a 
spouse" each place it appears; and 
(ii) by amending the last sentence of paragraph (2) 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 employee or 
Member."; 
(E) in subsection (f) by inserting after paragraph (2) the 
following: 
"Notwithstanding the preceding sentence, an annuity payable 
under this subsection to the surviving spouse of a Member may not 
exceed the difference between— 
"(A) the annuity which would otherwise be payable to such 
surviving spouse under this subsection, and 
"(B) the amount of the survivor annuity payable to any 
former spouse of such Member under subsection (h) of this 
section."; and 
(F) in subsection (g) by striking out "60 years of age" and 
inserting in lieu thereof "55 years of age"; and 
(G) by adding at the end thereof the following new 
subsections: 
"(h)(1) Subject to paragraphs (2) through (5) of this subsection, a 
former spouse of a deceased employee, Member, or annuitant is 
entitled to a survivor annuity under this subsection, if and to the 
Ante, p. 3195. 
extent expressly provided for in an election under section 8339(j)(3) 
of this title, or in the terms of any decree of divorce or annulment or 
any court order or court-approved property settlement agreement 
incident to such decree. 
"(2)(A) The annuity payable to a former spouse under this subsec-
tion may not exceed the difference between— 
"(i) the amount applicable in the case of such former spouse, 
as determined under subparagraph (B) of this paragraph, and 
"(ii) the amount of any annuity payable under this subsection 
to any other former spouse of the employee. Member, or annui-
tant, based on an election previously made under section 
8339(j)(3) of this title, or a court order previously issued. 
"(B) The applicable amount, for purposes of subparagraph (A)(i) of 
this paragraph in the case of a former spouse, is the amount which 
would be applicable— 
"(i) under subsection (b)(4)(A) of this section in the case of a 
widow or widower, if the deceased was an employee or Member 
who died after retirement; 
"(ii) under subparagraph (A) of subsection (d) of this section in 
the case of a widow or widower, if the deceased was an employee 
or Member described in the first sentence of such subsection; or 
"(iii) under subparagraph (A) of subsection (f) of this section in 
the case of a surviving spouse, if the deceased was a Member 
described in the first sentence of such subsection. 
Effective dates. 
"(3) The commencement and termination of an annuity payable 
Termination 
under this subsection shall be governed by the terms of the applica-
Q £ I L 6 S . 
PUBLIC LAW 98-615—NOV. 8, 1984 
98 STAT. 3201 
ble order, decree, agreement, or election, as the case may be, except 
that any such annuity— 
"(A) shall not commence before— 
"(i) the day after the employee. Member, or annuitant 
dies, or 
"(ii) the first day of the second month beginning after the 
date on which the Office receives written notice of the 
order, decree, agreement, or election, as the case may be, 
together with such additional information or documenta-
tion as the Office may prescribe, 
whichever is later, and 
"(B) shall terminate— 
"(i) in the case of an annuity computed by reference to 
clause (i) or (ii) of paragraph (2)(B) of this subsection, no 
later than the last day of the month before the former 
spouse remarries before becoming 55 years of age or dies; or 
"(ii) in the case of an annuity computed by reference to 
clause (iii) of such paragraph, no later than the last day of 
the month before the former spouse remarries or dies. 
"(4) For purposes of this subchapter, a modification in a decree, 
order, agreement, or election referred to in paragraph (1) of this 
subsection shall not be effective— 
"(A) if such modification is made after the retirement of the 
employee or Member concerned, and 
"(B) to the extent that such modification involves an annuity 
under this subsection. 
"(5) For purposes of this subchapter, a decree, order, agreement, 
or election referred to in paragraph (1) of this subsection shall not be 
effective, in the case of a former spouse, to the extent that it is 
inconsistent with any joint designation or waiver previously exe-
cuted with respect to such former spouse under section 8339(j)(l) of 
this title or a similar prior provision of law. 
Ante, p. 3195. 
"(6) Any payment under this subsection to a person bars recovery 
by any other person. 
"(7) As used in this subsection, 'court' means any court of any 
State, the District of Columbia, the Commonwealth of Puerto Rico, 
Guam, the Northern Mariana Islands, or the Virgin Islands, and 
any Indian court. 
"(i) The requirement in subsections (a)(1)(A) and (a)(2)(A) of this 
section that the surviving spouse of an employee or Member have 
been married to such employee or Member for at least 9 months 
immediately before the employee or Member's death in order to 
qualify as the widow or widower of such employee or Member shall 
be deemed satisfied in any case in which the employee or Member 
dies within the applicable 9-month period, if— 
"(1) the death of the employee or Member was accidental; or 
"(2) the surviving spouse of such individual had been previ-
ously married to the individual and subsequently divorced, and 
the aggregate time married is at least 9 months."; 
(5) in section 8342(a)— 
5 USC 8342. 
(A) by striking out "An" and inserting in lieu thereof 
"Subject to subsection (j) of this section, an"; and 
(B) by adding at the end thereof the following new 
subsection: 
"(j)(l) Payment of the lump-sum credit under subsection (a) of this 
section— 
98 STAT. 3202 
PUBLIC LAW 98-615—NOV. 8, 1984 
Ante, p. 3199. 
Infra. 
Regulations. 
Waiver. 
Regulations. 
5 use 8345. 
5 use 8348. 
5 use 8901. 
"(A) may be made only if any current spouse and any former 
spouse of the employee or Member are notified of the employee 
or Member's application; and 
"(B) in any case in which there is a former spouse, shall be 
subject to the terms of a court order or decree issued with 
respect to such former spouse if— 
"(i) the order or decree expressly relates to any portion of 
the lump-sum credit involved, and 
"(ii) payment of the lump-sum credit would extinguish 
entitlement of the former spouse to a survivor annuity 
under section 8341(h) of this title or to any portion of an 
annuity under section 8345(j) of this title. 
"(2)(A) Notification of a spouse or former spouse under this subsec-
tion shall be made in accordance with such requirements as the 
Office shall by regulation prescribe. 
"(B) Under the regulations, the Office may provide that para-
graph (1)(A) of this subsection may be waived with respect to a 
spouse or former spouse if the employee or Member establishes to 
the satisfaction of the Office that the whereabouts of such spouse or 
former spouse cannot be determined. 
"(3) The Office shall prescribe regulations under which this sub-
section shall be applied in any case in which the Office receives two 
or more such orders or decrees."; 
(6) in section 8345— 
(A) in subsection (f) by adding at the end thereof the 
following new paragraph: 
"(4) The provisions of this subsection shall not apply— 
"(A) to any survivor annuity payable under subsection (h) of 
section 8341 of this title; or 
"(B) to any survivor annuity payable under subsection (b), (d), 
or (f) of such section which is reduced on account of any survivor 
annuity referred to in subparagraph (A) of this paragraph."; 
and 
(B) in subsection (j)(3) by striking out "or the District of 
Columbia" and inserting in lieu thereof the following: ", the 
District of Columbia, the Commonwealth of Puerto Rico, 
Guam, the Northern Mariana Islands, or the Virgin Is-
lands, and any Indian court"; and 
(7) in section 8348(a)(1)(B) by striking out "this title" and 
inserting in lieu thereof "this title, in administering survivor 
annuities and elections providing therefor under sections 8339 
and 8341 of this title,". 
SEC. 3. Chapter 89 of title 5, United States Code, is amended— 
(1) in section 8901— 
(A) by striking out "and" at the end of paragraph (8); 
(B) by striking out the period at the end of paragraph (9) 
and inserting in lieu thereof "; and"; and 
(C) by adding at the end thereof the following new 
paragraph: 
"(10) 'former spouse' means a former spouse of an employee, 
former employee, or annuitant— 
"(A) who has not remarried before age 55 after the mar-
riage to the employee, former employee, or annuitant was 
dissolved, 
"(B) who was enrolled in an approved health benefits 
plan under this chapter as a family member at any time 
during the 18-month period before the date of the dissolu-
PUBLIC LAW 98-615—NOV. 8, 1984 
98 STAT. 3203 
tion of the marriage to the employee, former employee, or 
annuitant, and 
"(C)(i) who is receiving any portion of an annuity under 
section 8345(j) of this title or a survivor annuity under 
Ante, p. 3202. 
section 8341(h) of this title (or benefits similar to either of ^"^^' P- ^l^^-
the aforementioned annuity benefits under a retirement 
system for Government employees other than the Civil 
Service Retirement System), 
"(ii) as to whom a court order or decree referred to in 
section 8341(h) or 8345(j) of this title (or similar provision of 
law under any such retirement system other than the Civil 
Service Retirement System) has been issued, or for whom 
an election has been made under section 8339(j)(3) of this 
title (or similar provision of law), or 
Ante, p. 3195. 
"(iii) who is otherwise entitled to an annuity or any 
portion of an annuity as a former spouse under a retire-
ment system for Government employees, 
except that such term shall not include any such unremarried 
former spouse of a former employee whose marriage was dis-
solved after the former employee's separation from the service 
(other than by retirement)."; 
(2) in section 8902— 
5 use 8902. 
(A) in subsection (g) by striking out "employee or annui-
tant" each place it appears and inserting in lieu thereof 
"employee, annuitant, family member, or former spouse"; 
and 
(B) in subsections (j) and (k) by striking out "or family 
member" and inserting in lieu thereof "family member, or 
former spouse"; 
(3) in section 8903(1)— 
5 use 8903. 
(A) by striking out "employees or annuitants, or members 
of their families" and inserting in lieu thereof "employees, 
annuitants, members of their families, or former spouses"; 
and 
(B) by striking out "employee or annuitant or member of 
his family" and inserting in lieu thereof "employee, annui-
tant, family member, or former spouse"; 
(4) in section 8905— 
5 use 8905. 
(A) by redesignating subsections (c), (d), and (e) as subsec-
tions (d), (e), and (f), respectively, and inserting after subsec-
tion (b) the following new subsection: 
"(c)(1) A former spouse may— 
Health. 
"(A) within 60 days after the dissolution of the marriage, or 
"(B) in the case of a former spouse of a former employee 
whose marriage was dissolved after the employee's retiremient, 
within 60 days after the dissolution of the marriage or, if later, 
within 60 days after an election is made under section 8339(j)(3) 
of this title for such former spouse by the retired employee. Ante, p. 3195. 
enroll in an approved health benefits plan described by section 8903 
of this title as an individual or for self and family as provided in 5 use 8903. 
paragraph (2) of this subsection, subject to agreement to pay the full 
subscription charge of the enrollment, including the amounts deter-
mined by the Office to be necessary for administration and reserves 
pursuant to section 8909(b) of this title. The former spouse shall Post, p. 3204. 
submit an enrollment application and make premium payments to 
the agency which, at the time of divorce or annulment, employed 
the employee to whom the former spouse was married or, in the case 
98 STAT. 3204 
PUBLIC LAW 98-615—NOV. 8, 1984 
of a former spouse who is receiving annuity payments under 
Ante, pp. 3199, 
section 8341(h) or 8345(j) of this title, to the Office of Personnel 
3202. 
Management. 
"(2) Coverage for self and family under this subsection shall be 
limited to— 
"(A) the former spouse; and 
"(B) unmarried dependent natural or adopted children of the 
former spouse and the employee who are— 
"(i) under 22 years of age; or 
"(ii) incapable of self-support because of mental or physi-
cal disability which existed before age 22."; and 
(B) in subsections (e) and (f), as so designated by subpara-
graph (A) of this paragraph, by striking out "An employee 
or annuitant" and inserting in lieu thereof "An employee, 
annuitant, or former spouse"; 
5 use 8907. 
(5) in section 8907— 
(A) in subsection (a) by striking out "employee" each 
place it appears and inserting in lieu thereof "individual"; 
(B) in subsection (b)— 
(i) by striking out "employee enrolled" and inserting 
in lieu thereof "enrollee"; 
(ii) in paragraph (1) by striking out "employee or the 
employee and members of his family" and inserting in 
lieu thereof "enrollee or the enrollee and any eligible 
family members"; and 
(iii) in paragraph (3) bv striking out "the employee or 
members of his family' and inserting in lieu thereof 
"the enrollee and any eligible family members"; and 
(C) by amending the section heading to read as follows: 
"§ 8907. Information to individuals eligible to enroll"; 
5 use 8909. 
(6) in section 8909— 
(A) in subsections (a) and (b) by striking out "employees, 
annuitants," and inserting in lieu thereof "enrollees"; and 
(B) in subsection (d) by striking out "Each employee or 
annuitant" and inserting in lieu thereof "Each employee, 
annuitant, or former spouse"; 
5 use 8913. 
(7) in section 8913(c)— 
(A) in the first sentence by striking out "employees and 
annuitants and members of their families" and inserting in 
lieu thereof "employees, annuitants, members of their fami-
lies, and former spouses"; and 
(B) in the second sentence by inserting "or former 
spouse" after "in which an annuitant"; and 
(8) in the chapter analysis, by striking out the item relating to 
section 8907 and inserting in lieu thereof the following: 
"8907. Information to individuals eligible to enroll.". 
Effective dates. 
SEC. 4. (a)(1) Except as provided in subsections (b^ and (c), the 
5 use 8341 note, amendments made by section 2 of this Act shall take effect one 
hundred and eighty days after the date of enactment of this Act and 
shall apply to any individual who, on or after such effective date, is 
married to an employee or Member who, on or after such effective 
date, retires, dies, or applies for a refund of contributions under 
5 use 8331. 
subchapter III of chapter 83 of title 5, United States Code. 
(2) Except as provided in subsection (f), the amendments made by 
section 3 of this Act shall take effect one hundred and eighty days 
PUBLIC LAW 98-615—NOV. 8, 1984 
98 STAT. 3205 
after the date of enactment of this Act and shall apply to any 
individual who, on or after such effective date, is married to an 
employee or annuitant. 
(b)(1) Notwithstanding subsection (a)(1) of this section, a former 
spouse of an employee or Member who retired before the one 
hundred and eightieth day after the date of enactment of this Act is 
entitled to a survivor annuity under section 8341(b) of title 5, United 
States Code, as amended by this Act, if— 
^nte, p. 3199. 
(A) the retired employee or Member elects, in writing, within 
eighteen months after the date of enactment of this Act, accord-
ing to procedures prescribed by the Office of Personnel Manage-
ment, to have the annuity of such employee or Member reduced 
under section 8339(j) of title 5, United States Code, as amended 
by this Act, and, except as provided in paragraph (3) of this Ante, p. 3195. 
subsection, to deposit in the Civil Service Retirement and Dis-
ability Fund an amount determined by the Office, as nearlj,^ as 
may be administratively feasible, to reflect the amount by 
which such employee or Member's annuity would have been 
reduced had the reduction been in effect since such employee or 
Member's annuity commenced, plus interest computed at the 
annual rate of six 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; or 
(B) where the retired employee or Member dies or died on or 
before the one hundred and eightieth day after the date of 
enactment of this Act or does not make the election described in 
subparagraph (A)— 
(i) the former spouse's marriage to the employee or 
Member was dissolved after September 14,1978; 
(ii) the former spouse was married to the employee or 
Member for at least ten years during periods of creditable 
service under section 8332 of title 5, United States Code; 
(iii) the former spouse is not entitled to any other retire-
ment or survivor annuity (other than benefits under title II 
of the Social Security Act or under section 8345(j) of title 5, 42 use 201. 
United States Code, as amended by this Act) based on any ^"^^' P- ^202. 
previous employment of the former spouse or of the 
employee or Member; 
(iv) the former spouse has not remarried before age fifty-
five after September 14,1978; 
(v) the former spouse files an application for the survivor 
annuity with the Office within thirty months after the date 
of enactment of this Act; and 
(vi) the former spouse is at least fifty years of age at the 
time of filing such application. 
A survivor annuity under subparagraph (B) shall commence on the 
day after the employee or Member dies or the first day of the second 
month after the former spouse's application is received by the 
Office, whichever occurs later. 
(2) Except as provided in paragraph (3), if a retired employee or 
Member who makes an election under subparagraph (A) of para-
graph (1) does not make the deposit required by such subparagraph, 
the Office shall collect the amount of the deposit by offset against 
the employee or Member's annuity, up to a maximum of 25 per 
centum of the net annuity otherwise payable to the employee or 
Member, and the employee or Member is deemed to consent to such 
offset. 
3 1 - 1 9 4 
0 - 8 6 - 2 7 
: QL.3 
P a r t 3 
98 STAT. 3206 
PUBLIC LAW 98-615—NOV. 8, 1984 
(3) An election made by an individual under subparagraph (A) of 
paragraph (1) of this subsection to provide a survivor annuity for 
any person prospectively voids any election previously made by such 
individual with respect to such person under section 8339(k)(l) of 
Ante, p. 3195. 
title 5, United States Code, as amended by this Act, or any similar 
prior provision of law. Notwithstanding the provisions of such sub-
paragraph (A), an individual who made such an election under such 
section 8339(k)(l) (or prior provision) shall not be required to make 
the deposit described in such subparagraph. 
(4) A survivor annuity provided under this subsection shall be 55 
per centum of the annuity of the retired employee or Member, as 
determined under section 8339(a)-(i) and (n) of title 5, United States 
Code, increased by— 
(A) the total percent increase the retired employee or Member 
5 use 8340. 
was receiving under section 8340 of such title at death, or 
(B) in the case of a retired employee or Member whose date of 
death precedes the one hundred and eightieth day after the date 
of enactment of this Act, the total percent increase the retired 
employee or Member would have received under such section 
8340 had such individual died on the one hundred and eightieth 
day after such date of enactment, 
and shall not be subject to reduction under section 8341(bX4) of such 
Ante, p. 3199. 
title, as amended by this Act. 
(c) Notwithstanding subsection (a)(1) of this section, an employee 
or Member who retired before the one hundred and eightieth day 
after the date of enactment of this Act and who is married to a 
spouse acquired after retirement for whom such employee or 
Member was unable to provide a survivor annuity because— 
(1) the employee or Member was married at the time of 
retirement and elected not to provide a survivor annuity for the 
employee or Member's spouse at the time of retirement, or 
(2) the employee or Member failed to notify the Office of the 
employee or Member's post-retirement marriage within one 
year after the marriage, 
may elect in writing, within one year after the date of enactment of 
this Act, in accordance with procedures prescribed by the Office, to 
provide for a survivor annuity for such spouse under section 8341(b) 
of title 5, United States Code, as amended by this Act, to have the 
retired employee or Member's annuity reduced under section 8339(j) 
Ante, p. 3195. 
of such title, as so amended, and to deposit in the Civil Service 
Retirement and Disability Fund an amount determined by the 
Office, as nearly as may be administratively feasible, to reflect the 
amount by which such employee or Member's annuity would have 
been reduced had the election been continuously in effect since the 
annuity commenced, plus interest. For the purposes of the preceding 
sentence, the annual rate of interest 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 shall be 6 percent. If 
the retired employee or Member does not make such deposit, the 
Office shall collect such amount by offset against such employee or 
Member's annuity, up to a maximum of 25 percent of the net 
annuity otherwise payable to such employee or Member, and such 
Public notice. 
employee or Member is deemed to consent to such offset. The Office 
shall provide for general public notice of the right to make an 
election under this subsection. In cases to which paragraph (2) of 
this subsection applies, the retired employee or Member shall pro-
vide the Office with such documentation as the Office shall decide is 
PUBLIC LAW 98-615—NOV. 8, 1984 
98 STAT. 3207 
appropriate, that such employee or Member attempted to elect a 
reduced annuity with survivor benefit for such employee or Mem-
ber's current spouse and that such employee or Member's election 
was rejected by the Office because it was untimely filed. 
(d) A deposit required by subsection (b)(1)(A) or (c) of this section 
may be made by the surviving former spouse or spouse, as applica-
ble, of the retired employee or Member. 
(e) The Office shall determine at the end of each fiscal year— 
(1) the cost of survivor annuities provided under subsections 
(b) and (c) of this section, less an amount determined appropri-
ate by the Office to reflect the value of any deposits made under 
subsection (b)(1)(A), (c), or (d), and 
(2) the cost of administering subsections (b) and (c). 
The Office shall notify the Secretary of the Treasury of the amounts 
so determined. The Secretary of the Treasury, before closing the 
account for the fiscal year in question, shall credit to the Civil 
Service Retirement and Disability Fund, out of any money in the 
Treasury not otherwise appropriated, such amounts, which shall be 
available in the same manner as provided under subparagraphs (A) 
and (B) of section 8348(a)(1) of title 5, United States Code, as 
amended by this Act. 
(f) An individual who is entitled to a survivor annuity under 
subsection (b) of this section is deemed to be in receipt of annuity 
payments under section 8341(h) of title 5, United States Code, as 
amended by this Act, for the purpose of chapter 89 of such title, as so 
amended. Notwithstanding subsection (a)(2) of this section, any such 
individual who otherwise meets the definition of a former spouse 
under section 8901 of title 5, United States Code, as so amended, 
may enroll in an approved health benefits plan described by section 
8903 of such title, under the conditions set forth in section 8905(c) of 
such title, as so amended. 
(g)(1) For purposes of subsections (a) (1), (b), (c), (d), and (e), 
"employee", "Member", and "former spouse" each has the meaning 
given that term under section 8331 of title 5, United States Code, as 
amended by this Act. 
(2) For purposes of subsection (a)(2), "employee" and "annuitant" 
each has the meaning given that term under section 8901 of title 5, 
United States Code. 
(h) Section 827 of the Foreign Service Act of 1980 and section 292 
of the Central Intelligence Agency Retirement Act of 1964 for 
Certain Employees shall not apply with respect to either the amiend-
ments made by section 2 or the preceding provisions of this section. 
TITLE II—PERFORMANCE MANAGEMENT AND 
RECOGNITION SYSTEM 
Ante, p. 3202. 
Ante, p. 3199. 
Ante, p. 3202. 
5 u s e 8901 et 
seq. 
Ante, p. 3195. 
Ante, p. 3202. 
22 u s e 4067. 
50 u s e 403 note. 
ESTABLISHMENT OF PERFORMANCE MANAGEMENT AND RECOGNITION 
SYSTEM 
SEC. 201. (a) Chapter 54 of title 5, United States Code, is amended 
to read as follows; 
98 STAT. 3208 
PUBLIC LAW 98-615—NOV. 8, 1984 
5 use 5401. 
5 use 5402. 
5 use 7103. 
5 use 5104, 
5332. 
Exclusions. 
Effective date. 
President of U.S. 
Report. 
"CHAPTER 54—PERFORMANCE MANAGEMENT 
AND RECOGNITION SYSTEM 
"Sec. 
"5401. Purpose. 
"5402. Coverage. 
"5403. General pay increases. 
"5404. Merit increases. 
"5405. Pay administration. 
"5406. Performance awards. 
"5407. Cash award program. 
"5408. Report. 
"5409. Regulations. 
"5410. Termination. 
"§ 540L Purpose 
"It is the purpose of this chapter to provide for a performance 
management and recognition system which shall— 
"(1) use performance appraisals as the basis for (a) determin-
ing adjustments in basic pay by general pay increases and merit 
increases, and (b) making performance award determinations; 
"(2) within available funds, recognize and reward quality 
performance by varying amounts of performance and cash 
awards; 
"(3) within available funds, provide for training to improve 
accuracy, objectivity, and fairness 
in the evaluation of 
performance; 
"(4) regulate the costs of performance awards by establishing 
funding level requirements; and 
"(5) provide the means to reduce or withhold certain pay 
increases for less than fully successful performance. 
"§ 5402. Coverage 
"(a) Except as provided in subsection (b) or (c) of this section, this 
chapter shall apply to any supervisor or management official (as 
defined in paragraphs (10) and (11) of section 7103(a) of this title, 
respectively) who is in a position within grade GS-13, GS-14, or GS-
15 of the General Schedule described in section 5104 of this title. 
"(b)(1) Upon request filed under paragraph (3) of this subsection, 
the President may, in writing, exclude an agency, any unit of an 
agency, or any class of employees within any such unit, from the 
application of this chapter, if the President considers such exclusion 
to be required as a result of conditions arising from— 
"(A) the recent establishment of the agency, unit, or class, or 
the implementation of a new program; 
"(B) an emergency situation; or 
"(C) any other situation or circumstance. 
"(2) Any exclusion under this subsection shall not take effect 
earlier than 30 calendar days after the President transmits to each 
House of the Congress a report describing the agency, unit, or class 
to be excluded and the reasons therefor. 
"(3) A request for exclusion of an agency, any unit of an agency, or 
any class of employees within any such unit, under this subsection 
shall be filed by the head of the agency with the Office of Personnel 
Management, and shall set forth reasons why the agency, unit, or 
class should be excluded from the application of this chapter. The 
Office shall review the request and reasons therefor, undertake such 
PUBLIC LAW 98-615—NOV. 8, 1984 
98 STAT. 3209 
other review as it considers appropriate to determine whether the 
agency, unit, or class should be excluded from the application of this 
chapter and, upon completion of its review, recommend to the 
President whether the agency, unit, or class should be so excluded. 
"(4) Any agency, unit, or class which is excluded pursuant to this 
subsection shall, insofar as practicable, make a sustained effort to 
eliminate the conditions on which the exclusion is based. 
"(5) The Office shall periodically review any exclusion from cover-
age and may at any time recommend to the President that an 
exclusion under this subsection be revoked. The President may at 
any time revoke, in writing, any exclusion under this subsection. 
"(6) The Office shall prescribe regulations under which an 
employee may be excluded from the application of this chapter other 
than as part of an agency, unit, or class so excluded under the 
preceding paragraphs of this subsection. To the extent practicable, 
the regulations shall be based on the provisions of such paragraphs. 
"(c) This chapter shall not apply to individuals employed under 
the Office of the Architect of the Capitol, the Library of Congress, 
the Botanic Garden, or the Administrative Office of the United 
States Courts. 
"§ 5403. General pay increases 
"(a) For purposes of this section, a pay adjustment period, in the 
case of an employee covered by this chapter, shall be the period 
beginning on the first day of the first pay period applicable to such 
employee commencing on or after the first day of the month in 
which an adjustment takes effect under section 5305 of this title and 
ending at the close of the day before the beginning of the following 
pay adjustment period. 
"(b) A determination concerning a general pay increase under this 
section shall, for any pay adjustment period, be made based on the 
level of performance of the employee involved, as determined for the 
latest appraisal period under section 4302a of this title (or an 
equivalent rating system) before the beginning of such pay adjust-
ment period. 
"(c) Subject to section 5405(a)(1)(A) of this title, if the employee's 
performance is rated— 
"(1) at the fully successful level or either of the 2 levels 
above the fully successful level, the rate of basic pay of the 
employee shall be increased by the full general pay increase, 
effective as of the beginning of the pay adjustment period; 
"(2) at the level 1 level below the fully successful level, the 
rate of basic pay of the employee shall be increased by one-half 
of the full general pay increase, effective as of the beginning of 
the pay adjustment period; or 
"(3) at the level 2 levels below the fully successful level, the 
rate of basic pay of the employee shall not be increased under 
this section. 
"(d) A full general pay increase for any pay adjustment period 
under this section shall be determined by multiplying the rate of 
basic pay of the employee involved on the day immediately preced-
ing the pay adjustment period by the percentage corresponding to 
the percentage generally applicable under section 5305 of this title 
to positions not covered by this chapter which are in the same grade 
as the position held by such employee. 
"(e)(1) The basic pay of an employee for whom a determination 
under section 4302a of this title (or an equivalent rating system) for 
the latest appraisal period is not available shall be adjusted under 
President 
of U.S. 
Regulations. 
5 u s e 5403. 
5 u s e 5305. 
Post, p. 3214. 
Post, p. 3211. 
5 u s e 5305. 
Regulations. 
Post, p. 3214. 
98 STAT. 3210 
PUBLIC LAW 98-615—NOV. 8, 1984 
this subsection in such circumstances as the Office of Personnel 
Management shall by regulation prescribe. 
"(2) Any adjustment made under this subsection shall be equal to 
an adjustment under subsection (c)(1) of this section. 
5 use 5404. 
"§ 5404. Merit increases 
"(a) For purposes of this section— 
"(1) the term 'applicable reference rate', as used with respect 
to the rate of basic pay of an employee, means the rate equal to 
the sum of— 
"(A) the minimum rate of basic pay provided under sec-
5 use 5332. 
tion 5332 of this title for the grade of the position held by 
such employee; and 
"(B) one-third of the difference between the maximum 
rate of basic pay provided for such grade under such section 
and the minimum rate of basic pay so provided; 
"(2) the term 'merit increase' means, with respect to a grade, 
an increase equal to one-ninth of the difference between the 
maximum rate of basic pay provided for such grade under 
section 5332 of this title and the minimum rate of basic pay so 
provided; and 
"(3) a reference to the performance rating of an employee 
shall, for purposes of any increase which may take effect under 
this section in a year, be considered to be a reference to the level 
of performance of such employee, as determined for the latest 
Post, p. 3214. 
appraisal period under section 4302a of this title (or an equiva-
lent rating system) before the effective date of such increase. 
Effective date. 
"(b) Subject to section 5405(a)(1)(A) of this title, under regulations 
Post, p. 3211. 
prescribed by the Office of Personnel Management, the rate of basic 
pay of an employee covered by this chapter shall be increased each 
year in accordance with the applicable provisions of subsection (c) of 
this section, effective as of the beginning of the first applicable pay 
period commencing on or after October 1 of such year. 
"(c)(1)(A) If the rate of basic pay of the employee does not equal or 
exceed the applicable reference rate on the day before the effective 
date of an increase under this section, and the performance of such 
employee is rated at the fully successful level or either of the 2 
levels above the fully successful level, the rate of basic pay of the 
employee shall be increased by an amount equivalent to a merit 
increase. 
"(B) If the rate of basic pay of the employee equals or exceeds the 
applicable reference rate on the day before the effective date of an 
increase under this section, and the performance of such employee is 
rated— 
"(i) at the level 2 levels above the fully successful level, the 
rate of basic pay of the employee shall be increased by an 
amount equivalent to a merit increase; 
"(ii) at the level 1 level above the fully successful level, the 
rate of basic pay of the employee shall be increased by an 
amount equivalent to one-half of a merit increase; or 
"(iii) at the fully successful level, the rate of basic pay of the 
employee shall be increased by an amount equivalent to one-
third of a merit increase. 
"(2) The rate of basic pay of an employee whose performance is 
rated at either of the 2 levels below the fully successful level shall 
not be increased under this section for the year involved. 
Regulations. 
'<(d) The Office of Personnel Management shall prescribe regula-
tions under which this section shall be applied in the case of an 
Post, p. 3214. 
employee for whom a determination under section 4302a of this title 
PUBLIC LAW 98-615—NOV. 8, 1984 
98 STAT. 3211 
5 u s e 5332. 
(or an equivalent rating system) for the latest appraisal period is not 
available. 
"§ 5405. Pay administration 
5 USC 5405. 
"(a)(1) An employee covered by this chapter— 
"(A) may not be paid at a rate greater than the maximum 
rate of basic pay for the grade of the employee's position, as set 
forth in section 5332 of this title; and 
"(B) except as provided in paragraph (2) of this subsection, 
may not be paid at a rate less than the minimum rate of basic 
pay for such grade, as set forth in section 5332 of this title. 
"(2) An employee may be paid at a rate less than the minimum 
rate of basic pay for the grade of such employee's position to the 
extent that payment of the lesser rate is the result of the employee 
having received less than a full general pay increase under section 
5403 of this title. 
"(b) Any employee whose position is brought under this chapter 
shall, so long as the employee continues to occupy the position, be 
entitled to receive basic pay at a rate of basic pay not less than the 
rate the employee was receiving when the position was brought 
under this chapter, plus any subsequent increases under sections 
5403 and 5404 of this title. 
"(c) The Office of Personnel Management shall prescribe regula-
tions governing the method by which an increase under section 5403 
of this title and an increase under section 5404 of this title shall be 
made in any case in which both of those increases are to take effect 
beginning on the same date. 
"(d) Under regulations which the Office shall prescribe, the bene-
fit of advancement through the range of basic pay for a grade shall 
be preserved for any employee who is covered by this chapter and 
whose continuous service is interrupted in the public interest by 
service in the Armed Forces, or by service in essential non-Govern-
ment civilian employment during a period of war or national 
emergency. 
"(e) For the purpose of section 5941 of this title, rates of basic pay 5 USC 5941. 
of employees covered by this chapter shall be considered rates of 
basic pay fixed by statute. 
"(0 In the case of an employee covered by this chapter for whose 
position a higher rate of basic pay has been established under 
section 5303 of this title, any reference in this chapter to a rate of 
basic pay provided under or set forth in section 5332 of this title 
shall be deemed to be a reference to the corresponding rate of basic 
pay established under such section 5303. 
Regulations. 
Effective dates. 
Ante, pp. 3209, 
3210. 
"§ 5406. Performance awards 
5 USC 5406. 
"(a)(1) Any employee who is covered by this chapter, and whose 
performance for an appraisal period is rated under section 4302a of 
this title (or an equivalent rating system) at the level 2 levels above Post, p. 3214. 
the fully successful level, shall be paid a performance award under 
this section for such period. 
"(2)(A) The amount of a performance award referred to in para- Effective date. 
graph (1) of this subsection shall be determined by the appropriate 
agency head, except that any such award shall be not more than 10 
percent of the employee's annual rate of basic pay and, effective 
after fiscal year 1985, shall be not less than 2 percent of such annual 
rate. 
98 STAT. 3212 
PUBLIC LAW 98-615—NOV. 8, 1984 
"(B) Notwithstanding subparagraph (A) of this paragraph, a per-
formance award exceeding 10 percent but not exceeding 20 percent 
of the employee's annual rate of basic pay may be paid if the agency 
head determines that such award is warranted by unusually out-
standing performance. 
"(b)(1) Any employee who is covered by this chapter, and whose 
performance for an appraisal period is rated under section 4302a of 
Post, p. 3214. 
this title (or an equivalent rating system) at the level 1 level above 
the fully successful level or at the fully successful level, may be paid 
a performance award under this section for such period. 
"(2) The amount of a performance award referred to in paragraph 
(1) of this subsection shall be determined by the appropriate agency 
head, except that any such award shall be not more than 10 percent 
of the employee's annual rate of basic pay. 
"(c)(1) Subject to subsections (a)(2) and (b)(2) of this section, the 
aggregate amount of performance awards paid under this section by 
an agency during any fiscal year shall be— 
"(A) not less than the product o
f
— 
"(i) the applicable minimum percentage for such year 
under paragraph (2) of this subsection, multiplied by 
"(ii) an estimated aggregate amount of basic pay which 
will be payable to employees of the agency covered by the 
performance management and recognition system during 
such year, as determined by the head of the agency, taking 
into consideration the number of employees who were cov-
ered by such system during the preceding fiscal year (or by 
the merit pay system in the case of fiscal year 1984) and the 
applicable rates of basic pay in such preceding year; and 
"(B) not more than the product o
f
— 
"(i) the applicable maximum percentage for such year 
under paragraph (2) of this subsection, multiplied by 
"(ii) the amount under subparagraph (A)(ii) of this para-
graph for such year. 
Regulations. 
"(2)(A)(i) 1 he applicable minimum percentage— 
"(I) shall be 0.75 percent for fiscal year 1985; 
"(II) shall, for each of the 4 fiscal years thereafter, be adjusted 
incrementally (by equal increments or otherwise) over the per-
centage for the preceding fiscal year by the appropriate agency 
head in accordance with regulations which the Office of Person-
nel Management shall prescribe; and 
"(III) shall, as a result of the final adjustment, be increased to 
1.15 percent for fiscal year 1989. 
"(ii) The applicable maximum percentage for each of the 5 fiscal 
years during which this chapter is in effect shall be 1.5 percent. 
"(B)(i) Notwithstanding subparagraph (A) of this paragraph, in the 
case of an agency described in clause (ii) of this subparagraph the 
applicable minimum percentage for any fiscal year during which 
this chapter is in effect shall be a percentage, not less than the 
minimum percentage described in subsection (2)(A)(i) and not to 
exceed 10 percent, which the Office shall by regulation prescribe. 
"(ii) This subparagraph applies to an agency in a fiscal year if the 
average number of employees employed under such agency during 
the immediately preceding fiscal year was equal to or less than the 
equivalent of 20 full-time employees.". 
"(d) A failure to pay a performance award authorized by subsec-
tion (b) of this section may not be appealed. 
PUBLIC LAW 98-615—NOV. 8, 1984 
98 STAT. 3213 
"(e) A performance award paid to an employee under this section 
shall be in addition to the basic pay of the employee and any cash 
award paid under section 5407 of this title. 
Infra. 
"§ 5407. Cash award program 
5 use 5407. 
"(a) The head of an agency may pay a cash award to, and incur 
necessary expenses for the honorary recognition of, any employee 
who is covered by this chapter, and who— 
"(1) by the employee's suggestion, invention, superior accom-
plishment, or other personal effort, contributes to the efficiency, 
economy, or other improvement of Government operations, or 
achieves a significant reduction in paperwork; or 
"(2) performs a special act or service in the public interest in 
connection 
with 
or 
related 
to the 
employee's 
Federal 
employment. 
"(b) The President may pay a cash award to, and incur necessary 
expenses for the honorary recognition of, any employee who is 
covered by this chapter, and who— 
"(1) by the employee's suggestion, invention, superior accom-
plishment, or other personal effort, contributes to the efficiency, 
economy, or other improvement of Government operations, or 
achieves a significant reduction in paperwork; or 
"(2) performs an exceptionally meritorious special act or serv-
ice in the public interest in connection with or related to the 
employee's Federal employment. 
A Presidential cash award may be in addition to an agency cash 
award under subsection (a) of this section. 
"(c) A cash award paid to an employee under this section shall be 
in addition to the basic pay of the employee and any performance 
award paid under section 5406 of this title. Acceptance of a cash 
Claims. 
award under this section constitutes an agreement that the use by 
'^"^^' P ^^^l-
the Government of any idea, method, or device for which the av^^ard 
is made does not form the basis of any claim of any nature against 
the Government by the employee accepting the award, or the 
employee's heirs or assigns. 
"(d) A cash award to, and expenses for the honorary recognition 
of, any employee who is covered by this chapter may be paid from 
the fund or appropriation available to the activity primarily benefit-
ing, or the various activities benefiting, from the suggestion, inven-
tion, superior accomplishment, or other meritorious effort of the 
employee. The head of the agency concerned shall determine the 
amount to be contributed by each activity to any agency cash avi^ard 
under subsection (a) of this section. The President shall determine 
President of U.S. 
the amount to be contributed by each activity to a Presidential 
award under subsection (b) of this section. 
"(e)(1) Except as provided in paragraph (2) of this subsection, a 
cash award under this section may not exceed $10,000. 
"(2) If the head of an agency certifies to the Office of Personnel 
Management that the suggestion, invention, superior accomplish-
ment or other meritorious effort of an employee for which a cash 
award is proposed is highly exceptional and unusually outstanding, 
a cash award in excess of $10,000 but not in excess of $25,000 may be 
awarded to the employee on the approval of the Office. 
"(f) The President or the head of an agency may pay a cash av/ard 
under this section notwithstanding the death or separation from the 
service of an employee, if the suggestion, invention, superior accom-
plishment, or other meritorious effort of the employee for which the 
98 STAT. 3214 
PUBLIC LAW 98-615—NOV. 8, 1984 
award is proposed was made or performed while the employee was 
covered by this chapter. 
5 use 5408. 
"§ 5408. Report 
"The Office of Personnel Management shall submit an annual 
report to the President and each House of the Congress evaluating 
the effectiveness of the performance management and recognition 
system established by this chapter. Each such report shall be pre-
pared after consultation with the respective heads of a sufficient 
range of agencies so as to permit an adequate basis for making a 
meaningful evaluation. 
5 use 5409. 
"§ 5409. Regulations 
"The Office of Personnel Management shall prescribe regulations 
to carry out this chapter. 
5 use 5410. 
"§ 5410. Termination 
"This chapter and any regulations prescribed under this chapter 
shall cease to be effective after September 30,1989.". 
(b) The table of chapters at the beginning of part III of title 5, 
United States Code, is amended by striking out the item relating to 
chapter 54 and inserting in lieu thereof the following: 
"54. Performance Management and Recognition System 
5401". 
PERFORMANCE APPRAISAL SYSTEMS 
SEC. 202. (a) Chapter 43 of title 5, United States Code, is amended 
by inserting after section 4302 the following new section: 
5 use 4302a. 
"§ 4302a. Establishment of performance appraisal systems for 
performance management and recognition system em-
ployees 
"(a) Each agency shall develop one or more performance appraisal 
Ante, p. 3207. 
systems for employees covered by chapter 54 of this title which— 
"(1) provide for periodic appraisals of job performance of such 
employees; 
"(2) require the joint participation of the supervising official 
and the employee in developing performance standards with 
authority for establishing standards resting with the supervis-
ing official; and 
"(3) use the results of performance appraisals as a basis— 
"(A) for adjusting the base pay and making performance 
award decisions with respect to any such employee in ac-
cordance with the applicable provisions of such chapter 54; 
and 
"(B) for training, rewarding, reassigning, promoting, 
reducing in grade, retaining, and removing any such em-
ployee. 
Regulations. 
"(b) Under regulations which the Office of Personnel Management 
shall prescribe, each performance appraisal system under this sec-
tion shall provide for— 
"(1) five levels of summary performance ratings as follows: 
"(A) two levels which are above the fully successful level; 
"(B) a fully successful level; and 
"(C) two levels which are below the fully successful level; 
"(2) establishing, in writing, the critical elements of each 
employee's position and the performance standards for the fully 
PUBLIC LAW 98-615—NOV. 8, 1984 
98 STAT. 3215 
successful level for each such element which will, to the maxi-
mum extent feasible, permit accurate evaluation of job perform-
ance on the basis of objective criteria related to the job in 
question; 
"(3) communicating, at the beginning of each appraisal period 
and in writing, to each employee who is covered by chapter 54 of 
this title the performance standards and critical elements of the ^«^^' P 3207. 
employee's position; 
"(4) evaluating each such employee during the appraisal 
period on the basis of such standards; 
"(5) assisting any such employee in improving performance 
rated at a level below the fully successful level; and 
"(6) reassigning, reducing in grade, or removing any employee 
who continues to perform at the level which is 2 levels below 
the fully successful level, after such employee has been provided 
with written notice of such employee's rating and afforded 
reasonable opportunity to raise such employee's level of per-
formance to the fully successful level or higher. 
"(c)(1) Appraisals of performance under this section— 
"(A) shall take into account individual performance and may 
take into account organizational accomplishment; 
"(B) shall be based on factors such as— 
"(i) any improvement in efficiency, productivity, and 
quality of work or service, including any significant reduc-
tion in paperwork; 
"(ii) cost efficiency; 
"(iii) timeliness of performance; 
"(iv) other indications of the effectiveness, productivity, 
and quality of performance of the employees for whom the 
employee is responsible; and 
"(v) meeting affirmative action goals and achievement of 
equal employment opportunity requirements; 
"(C) may be reviewed by an employee of the agency in accord-
ance with procedures established by the Office of Personnel 
Management; 
"(D) shall, on request of the employee whose performance is 
appraised, by reconsidered by an employee of the agency in 
accordance with procedures established by the Office; and 
"(E) may not be appealed outside the agency. 
"(2) Reconsideration of an appraisal under paragraph (1)(D) of this 
subsection may be made only by an employee who is in a higher 
position in the agency than each employee who made, reviewed, or 
approved the appraisal. 
"(d)(1) In order to promote the purposes of this section, there shall 
be established within each agency a performance standards review 
board (hereinafter in this subsection referred to as the 'board'), 
consisting of at least six members, all of whom shall be chosen by 
the agency head from individuals employed in or under such agency. 
Of the members, at least one-half shall be employees who are 
covered by chapter 54 of this title and who are in the competitive 
service. A board shall be chaired by the member of the board 
designated for that purpose by the agency head. 
"(2) It shall be the function of each board— 
"(A) to assess, by the use of representative sampling tech-
niques, the appropriateness of performance standards developed 
and used by the agency under this section; 
Performance 
standards review 
boards, 
establishment. 
98 STAT. 3216 
PUBLIC LAW 98-615—NOV. 8, 1984 
"(B) to study the feasibility of an awards program based on 
the collective performance of units or other groups of employees 
Ante, p. 3207. 
who are covered by chapter 54 of this title, and to submit as part 
of its annual report under paragraph (3) of this subsection 
recommendations for any actions which the board considers 
appropriate with respect to any such program; and 
"(C) to provide technical assistance with respect to any dem-
onstration projects which may relate to performance standards 
of the agency under this section. 
Report. 
"(3) A board shall report to the head of the agency on its activities 
under this subsection annually. 
"(e) In carrying out this section, neither the Office nor any other 
agency may prescribe a distribution of levels of performance ratings 
for employees covered by chapter 54 of this title. 
"(f) The Office may not prescribe, or require an agency to pre-
scribe, any specific performance standard or element for purposes of 
this section. 
Expiration date. 
"(g) This section and any regulations prescribed under this section 
shall cease to be effective as of the date on which chapter 54 of this 
title ceases to be effective.". 
(b) The table of sections for chapter 43 of title 5, United States 
Code, is amended by inserting after the item relating to section 4302 
the following new item: 
"4302a. Establishment of performance appraisal systems for performance manage-
ment and recognition system employees.". 
MERIT INCREASES AS EQUIVALENT INCREASES IN PAY 
SEC. 203. Section 5335 of title 5, United States Code, is amended by 
adding at the end thereof the following new subsection: 
"(f) Notwithstanding subsection (b) or (e) of this section, an in-
Ante, p. 3210. 
crease in pay granted under section 5404 of this title is an equiva-
lent increase in pay within the meaning of subsection (a) of this 
section and shall be taken into account in the case of any employee 
who, before becoming subject to this section, was granted such an 
increase while covered by the performance management and recog-
nition system established under chapter 54 of this title.". 
TECHNICAL AND CONFORMING AMENDMENTS 
SEC. 204. (a) Title 5, United States Code, is amended— 
(1) in sections 4501(2)(A), 5332(a), 5334(c)(2), 5334(0, 5335(e), 
5336(c), and 5362(c)(3), by striking out "the merit pay system 
established under section 5402" each place it appears and in-
serting in lieu thereof "the performance management and rec-
ognition system established under chapter 54"; 
(2) in section 5361(5), by striking out "merit pay system" and 
inserting in lieu thereof "performance management and recog-
nition system"; and 
(3) in section 5948(g)(1)(C), by striking out "Merit Pay System" 
and inserting "performance management and recognition 
svstem". 
(b) Section 1602 of title 10, United States Code, and section 731(b) 
of title 31, United States Code, are each amended by striking out 
"5401(a)" and inserting in lieu thereof "5401". 
PUBLIC LAW 98-615—NOV. 8, 1984 
98 STAT. 3217 
EFFECTIVE DATE; TRANSITION PROVISIONS 
SEC. 205. (a) The amendments made by this title shall be effective 
5 USC 5401 note. 
as of October 1, 1984, and shall apply with respect to pay periods 
commencing on or after that date. 
(b) The rate of basic pay for any individual serving in a position— 
(1) which is in the merit pay system before the date on which 
the amendments made by this title take effect, but 
(2) which does not become covered by the performance man-
agement and recognition system, 
shall not be reduced on account of such position not becoming so 
covered. 
(c) The rate of basic pay for any individual serving in a position 
which ceases to be covered by the performance management and 
recognition system as a result of the termination of such system 
under section 5410 of title 5, United States Code, as amended by this 
title, shall not be reduced on account of such termination. 
^nte, p. 3214. 
(d)(1) Except as provided in paragraph (2), any agency or unit of an 
agency which, immediately before the date of enactment of this Act, 
was excluded from coverage under the merit pay system shall be 
excluded from coverage under the performance management and 
recognition system for the 12-month period beginning on such date 
of enactment. 
(2) An exclusion under paragraph (1) may be revoked at any time 
in accordance with section 5402(b)(5) of title 5, United States Code, 
as amended by this Act. 
^«^e, p. 3208. 
TITLE III—SENIOR EXECUTIVE SERVICE 
Continuation. 
CONGRESSIONAL FINDINGS 
SEC. 301. The Congress finds that the Senior Executive Service 
should be continued indefinitely. 
5 USC 3131 note. 
PERFORMANCE AWARDS 
SEC. 302. Subsection (b) of section 5384 of title 5, United States 
Code, is amended— 
(1) in paragraph (2), by striking out "exceed" and inserting in 
lieu thereof "be less than 5 percent nor more than"; and 
(2) by amending paragraph (3) of such subsection to read as 
follows: 
"(3) The aggregate amount of performance awards paid under this 
section by an agency during any fiscal year may not exceed the 
greater of— 
"(A) an amount equal to 3 percent of the aggregate amount of 
basic pay paid to career appointees in such agency during the 
preceding fiscal year; or 
"(B) an amount equal to 15 percent of the average of the 
annual rates of basic pay paid to career appointees in such 
agency during the preceding fiscal year.". 
REDUCTIONS IN FORCE 
SEC. 303. (a) Section 3593(c)(1)(B) of title 5, United States Code, is 
amended by inserting "before October 1,1984," after "title", 
(b) Section 3594(b) of such title is amended to read as follows: 
5 USC 3594. 
98 STAT. 3218 
PUBLIC LAW 98-615—NOV. 8, 1984 
"(b) A career appointee who has completed the probationary 
5 use 3393. 
period under section 3393(d) of this title, and who— 
"(1) is removed from the Senior Executive Service for less 
than fully successful executive performance as determined 
5 use 4311. 
under subchapter II of chapter 43 of this title; or 
"(2) is removed from the Senior Executive Service under 
Infra. 
paragraph (4) or (5) of section 3595(b) of this title; 
shall be entitled to be placed in a civil service position (other than 
a Senior Executive Service position) in any agency.". 
5 use 3595. 
(^) Section 3595(b) of such title is amended— 
(1) in paragraph (3)(B), by striking out "is entitled" and all 
that follows thereafter through "position." and inserting in lieu 
thereof "shall be placed by the Office in any agency in any 
vacant Senior Executive Service position unless the head of that 
agency determines that the career appointee is not qualified for 
that position."; and 
(2) by striking out paragraphs (4) and (5) and inserting in lieu 
thereof the following: 
"(4) A career appointee who is not assigned under paragraph (3)(A) 
may be removed from the Senior Executive Service due to a reduc-
tion in force if the career appointee declines a reasonable offer for 
placement in a Senior Executive Service position under paragraph 
(3)(B). 
"(5) A career appointee who is not assigned under paragraph (3)(A) 
may be removed from the Senior Executive Service due to a reduc-
tion in force if the career appointee is not placed in another Senior 
Executive Service position under paragraph (3)(B) within 45 days 
after the Office receives certification regarding that appointee 
under paragraph (3)(B).". 
(d) Section 3595(c) of such title is amended to read as follows: 
"(c) A career appointee is entitled to appeal to the Merit Systems 
5 use 7701. 
Protection Board under section 7701 of this title whether the reduc-
tion in force complies with the competitive procedures required 
under subsection (a).". 
DIRECTED R E A S S I G N M E N T ; TRANSFER OF FUNCTION 
SEC. 304. (a) Section 3395(a)(2) of title 5, United States Code, is 
amended to read as follows: 
"(2)(A) Except as provided in subparagraph (B) of this paragraph, 
a career appointee may be reassigned to any Senior Executive 
Service position only if the career appointee receives written notice 
of the reassignment at least 15 days before the effective date of such 
reassignment. 
"(B)(i) A career appointee may not be reassigned to a Senior 
Executive Service position outside the career appointee's commuting 
area unless— 
"(I) before providing notice under subclause (II) of this clause 
(or seeking or obtaining the consent of the career appointee 
under clause (ii) of this subparagraph to waive such notice), the 
agency consults with the career appointee on the reasons for, 
and the appointee's preferences with respect to, the proposed 
reassignment; and 
"(II) the career appointee receives written notice of the 
reassignment, including a statement of the reasons for the 
reassignment, at least 60 days before the effective date of the 
reassignment. 
PUBLIC LAW 98-615—NOV. 8, 1984 
98 STAT. 3219 
"(ii) Notice of reassignment under clause (i)(II) of this sub-
paragraph may be waived with the written consent of the career 
appointee involved.". 
(b) Section 3595 of such title is amended by adding at the end 
thereof the following new subsection: 
"(e) The Office shall prescribe regulations under which the rights 
accorded to a career appointee in the event of a transfer of function 
are comparable to the rights accorded to a competing employee 
under section 3503 of this title in the event of such a transfer.". 
(c) Section 7543(a) of such title is amended by striking out "or 
malfeasance." and inserting in lieu thereof "malfeasance, or failure 
to accept a directed reassignment or to accompany a position in a 
transfer of function.". 
(d) Section 8336(d) of such title is amended by inserting after the 
first sentence the following new sentence: "For purposes of para-
graph (1) of this subsection, separation for failure to accept a 
directed reassignment to a position outside the commuting area of 
the employee concerned or to accompany a position outside of such 
area pursuant to a transfer of function shall not be considered to be 
a removal for cause on charges of misconduct or delinquency.". 
Waiver. 
5 u s e 3595. 
Regulations. 
5 u s e 3503. 
5 u s e 7543. 
5 u s e 8336. 
PAY LIMITATION 
SEC. 305. Section 5383(b) of title 5, United States Code, is amended 
to read as follows: 
"(b)(1) In no event may the aggregate amount paid to a senior 
executive during any fiscal year under sections 4507, 5382, 5384,, and 
5948 of this title exceed the annual rate payable for positions at 
level I of the Executive Schedule in effect at the end of such fiscal 
year. 
"(2)(A) Any amount which is not paid to a senior executive during 
a fiscal year because of the limitation under pari^graph (1) of this 
subsection shall be paid to that individual in a lump sum at the 
beginning of the following fiscal year. 
"(B) Any amount paid under this paragraph during a fiscal year 
shall be taken into account for purposes of applying the limitation 
under paragraph (1) of this subsection with respect to such fiscal 
year. 
"(C) The Office of Personnel Management shall prescribe regula-
tions, consistent with section 5582 of this title, under which payment 
under this paragraph shall be made in the case of any individual 
whose death precludes payment under subparagraph (A) of this 
paragraph.". 
5 u s e 4507, 
5382, 5384, 5948. 
Regulations. 
5 u s e 5582. 
MISCELLANEOUS SENIOR EXECUTIVE SERVICE AMENDMENTS 
SEC. 306. (a) Section 3135(a) of title 5, United States Code, is 
amended— 
(1) by striking out "and" at the end of paragraph (8); 
(2) by redesignating paragraph (9) as paragraph (10); and 
(3) by inserting after paragraph (8) the following new para-
graph: 
"(9) the number of career appointees who have been place;d in 
positions outside the Senior Executive Service under section 
3594 of this title as a result of a removal under section 3595 of 
this title; and". 
98 STAT. 3220 
PUBLIC LAW 98-615—NOV. 8, 1984 
5 use 3393. 
(b)(1) The first sentence of section 3393(b) of such title is amended 
by inserting before the period the following: "or commissioned 
officers of the uniformed services serving on active duty in such 
agency". 
5 use 4312. 
(2) Section 4312(b)(3) of such title is amended by inserting ", or 
(with the consent of the senior executive) a commissioned officer in 
the uniformed services serving on active duty," after "employee", 
and by striking out "executive". 
(c)(1) Such title is amended by adding after section 3595 the 
following new section: 
5 use 3595a. 
"§ 3595a. Furlough in the Senior Executive Service 
"(a) For the purposes of this section, 'furlough' means the place-
ment of a senior executive in a temporary status in which the senior 
executive has no duties and is not paid when the placement in such 
status is by reason of insufficient work or funds or for other nondis-
ciplinary reasons. 
"(b) An agency may furlough a career appointee only in accord-
ance with regulations issued by the Office of Personnel Manage-
ment. 
Appeal. 
"(c) A career appointee who is furloughed is entitled to appeal to 
the Merit Systems Protection Board under section 7701 of this 
5 use 7701. 
title.". 
(2) The table of sections for chapter 35 of such title is amended by 
inserting after the item relating to section 3595 the following new 
item: 
"3595a. Furlough in the Senior Executive Service.". 
EFFECTIVE DATE 
5 use 3135 note. 
SEC. 307. The amendments made by this title shall be effective 
following the expiration of the 90-day period beginning on the date 
of enactment of this Act, except that the amendments made by 
section 304 shall be effective as of such date of enactment. 
Approved November 8, 1984. 
LEGISLATIVE HISTORY—H.R. 2300: 
HOUSE REPORT No. 98-1054 (eomm. on Post Office and eivil Service). 
CONGRESSIONAL RECORD, Vol. 130 (1984): 
Sept. 24, considered and passed House. 
Oct. 10, considered and passed Senate, amended; House concurred in Senate 
amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 20, No. 45 (1984): 
Nov. 9, Presidential statement.