Federal Employees Benefits Improvement Act of 1986
PL 99-251 (H.R.4061), enacted 02/27/1986

100 STAT. 14 
PUBLIC LAW 99-251—FEB. 27, 1986 
Public Law 99-251 
99th Congress 
An Act 
Feb. 27, 1986 
[H.R. 4061] 
Federal 
Employees 
Benefits 
Improvement 
Act of 1986. 
5 u s e 8901 note. 
Ante, p. 94. 
To amend title 5, United States Code, to expand the class of individuals eligible for 
refunds or other returns of contributions from contingency reserves in the 
Employees Health Benefits Fund; to make miscellaneous amendments relating to 
the Civil Service Retirement System and the Federal Employees Health Benefits 
Program; and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited 
Improvement Act of 1986". 
as the "Federal Employees Benefits 
TITLE I—FEDERAL EMPLOYEE HEALTH BENEFITS 
SEC. 1
0
1
. 
AUTHORITY 
TO 
REFUND 
CERTAIN 
CONTRIBUTIONS 
TO 
ENROLL-
EES. 
The last sentence of section 8909(b) of title 5, United States Code, 
is amended by striking out "employees" and inserting in lieu thereof 
"enroUees". 
SEC. 102. ELIMINATION OF REQUIREMENT OF THREE MEDICAL SPECIAL-
TIES FOR GROUP-PRACTICE PREPAYMENT PLANS. 
The second sentence of section 8903(4XA) of title 5, United States 
Code, is amended to read as follows: "The group shall include at 
least 3 physicians who receive all or a substantial part of their 
professional income from the prepaid funds and who represent 1 or 
more medical specialties appropriate and necessary for the popu-
lation proposed to be served by the plan.". 
SEC. 103. AUTHORITY TO WAIVE CERTAIN ELIGIBILITY REQUIREMENTS. 
Section 8905(b) of title 5, United States Code, is amended by 
adding at the end thereof the following new sentence: "The Office 
may, in its sole discretion, waive the requirements of this subsection 
in the case of an individual who fails to satisfy such requirements if 
the Office determines that, due to exceptional circumstances, it 
would be against equity and good conscience not to allow such 
individual to be enrolled as an annuitant in a health benefits plan 
under this subchapter.". 
SEC. 104. ANNUAL OPEN SEASON. 
(a) IN GENERAL.—Section 8905(f) of title 5, United States Code, is 
amended to read as follows: 
"(fXD Under regulations prescribed by the Office, the Office shall, 
before the start of any contract term in which— 
"(A) an adjustment is made in any of the rates charged or 
benefits provided under a health benefits plan described by 
section 8903 or 8903a of this title, 
"(B) a newly approved health benefits plan is offered, or 
PUBLIC LAW 99-251—FEB. 27, 1986 
100 STAT. 15 
"(C) an existing plan is terminated, 
provide a period of not less than 3 weeks during which any 
employee, annuitant, or former spouse enrolled in a health benefits 
plan described by such section shall be permitted to transfer that 
individual's enrollment to another such plan or to cancel such 
enrollment. 
"(2) In addition to any opportunity afforded under paragraph (1) of 
this subsection, an employee, annuitant, or former spouse enrolled 
in a health benefits plan under this chapter shall be permitted to 
transfer that individual's enrollment to another such plan, or to 
cancel such enrollment, at such other times and subject to such 
conditions as the Office may prescribe in regulations.". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall be effective with respect to contracts entered into or renewed 
for calendar years beginning after December 31,1986. 
SEC. 105. AUTHORITY TO PAY CERTAIN HEALTH CARE PROFESSIONALS. 
(a) DEFINITIONS.—Section 8901 of title 5, United States Code, is 
amended— 
(1) by striking out "and" at the end of paragraph (9); 
(2) by striking out the period at the end of paragraph (10) and 
inserting in lieu thereof "; and"; and 
(3) by adding at the end thereof the following new paragraph: 
"(11) 'qualified clinical social worker' means an individual— 
"(A) who is licensed or certified as a clinical social worker 
by the State in which such individual practices; or 
"(B) who, if such State does not provide for the licensing 
or certification of clinical social workers— 
"(i) is certified by a national professional organiza-
tion offering certification of clinical social workers; or 
"(ii) meets equivalent requirements (as prescribed by 
the Office).". 
O
b
) CLINICAL SOCIAL WORKERS.—Section 8902(k) of title 5, United 
States Code, is amended— 
(1) by striking out "(k)" and inserting in lieu thereof "(kXD"; 
(2) by striking out the last sentence; and 
(3) by inserting at the end thereof the following: 
"(2) When a contract under this chapter requires payment or 
reimbursement for services which may be performed by a qualified 
clinical social worker, an employee, annuitant, family member, or 
former spouse covered by the contract shall be entitled under the 
contract to have payment or reimbursement made to him or on his 
behalf for the services performed. As a condition for the payment or 
reimbursement, the contract— 
"(A) may require that the services be performed pursuant to a 
referral by a psychiatrist; but 
"(B) may not require that the services be performed under the 
supervision of a psychiatrist or other health practitioner. 
"(3) The provisions of this subsection shall not apply to group 
practice prepayment plans.". 
(c) EFFECTIVE DATE.—The amendments made by subsections (a) 
and Ot)) shall be effective with respect to contracts entered into or 
renewed for calendar years beginning after December 31, 1986. 
5 u s e 8905 note. 
Contract. 
Contracts. 
5 u s e 8901 note. 
100 STAT. 16 
PUBLIC LAW 99-251—FEB. 27, 1986 
SEC. 106. HEALTH SERVICES FOR MEDICALLY UNDERSERVED POPU-
LATIONS. 
(a) IN GENERAL.—(1) Section 3 of the Act entitled "An Act to 
amend chapter 89 of title 5, United States Code, to establish uni-
formity in Federal employee health benefits and coverage by 
preempting certain State or local laws which are inconsistent with 
such contracts, and for other purposes", approved September 17, 
1978 (Public Law 95-368; 92 Stat. 606; 5 U.S.C. 8902 note), is 
amended by striking out "; except that such provisions shall not 
apply to services provided after December 31, 1984". 
(2) Section 5(b) of the Act entitled "An Act to amend the provi-
sions of chapters 83 and 89 of title 5, United States Code, which 
relate to survivor benefits for certain dependent children, and for 
other purposes", approved January 2, 1980 (Public Law 96-179; 
93 Stat. 1300; 5 U.S.C 8902 note), is amended by striking out "and 
before January 1, 1985,". 
(3) Section 8902(m)(2)(A) of title 5, United States Code, is amended 
by adding at the end thereof the following: "This paragraph shall 
apply with respect to a qualified clinical social worker covered by 
Ante, p. 15. 
subsection (k)(2) of this section without regard to whether such 
contract contains the requirement authorized by clause (i) of the 
second sentence of subparagraph (A) of such subsection (k)(2).". 
5 use 8902 note. 
O
t
>
) EFFECTIVE DATE.—The amendments made by subsection (a) 
shall take effect with respect to services provided after December 31, 
1984. 
5 u s e 8904 note. 
SEC. 107. MENTAL HEALTH, ALCOHOLISM, AND DRUG ADDICTION 
BENEFITS. 
(a) FINDINGS.—The Congress finds that— 
(1) the treatment of mental illness, alcoholism, and drug 
addiction are basic health care services which are needed by 
approximately 40,000,000 Americans each year; 
(2) treatment of mental illness, alcoholism, and drug addiction 
is increasingly successful; 
(3) timely and appropriate treatment of mental illness, 
alcoholism, and drug addiction is cost effective in terms of 
restored productivity, reduced utilization of other health serv-
ices, and reduced social dependence; and 
(4) mental illness is a problem of grave concern to the people 
of the United States and is widely but unnecessarily feared and 
misunderstood. 
(b) SENSE OF THE CONGRESS.—It is the sense of the Congress— 
(1) that participants in the Federal employees health benefits 
program should receive adequate benefits coverage for treat-
ment of mental illness, alcoholism, and drug addiction; and 
(2) that the Office of Personnel Management should encour-
age participating health benefits plans to provide adequate 
benefits relating to treatment of mental illness, alcoholism, and 
drug addiction (including benefits relating to coverage for in-
patient and outpatient treatment and catastrophic protection 
benefits). 
SEC. 108. STUDY RELATING TO EXPANDING THE CLASS OF PRACTITION-
ERS COVERED BY SECTION 8902(k)(l). 
Reports. 
The Office of Personnel Management shall study and, before 
April 1, 1986, submit a written report to the Committee on Post 
Office and Civil Service of the House of Representatives and the 
PUBLIC LAW 99-251—FEB. 27, 1986 
100 STAT. 17 
Reports. 
5 u s e 8901 et 
seq. 
Committee on Governmental Affairs of the Senate with respect to 
extending section 8902(k)(l) of title 5, United States Code, as amended 
Ante, p. 15. 
by this Act, to cover health practitioners not currently covered 
thereunder (such as nurse-midwives, nurse practitioners, chiroprac-
tors, and clinical social workers). 
SEC. 109. STUDY OF THE ADEQUACY OF HEALTH BENEFITS PROGRAM 
INFORMATION. 
(a) IN GENERAL.—Not later than June 1, 1986, the Office of 
Personnel Management shall (1) study the adequacy of any sources 
or methods currently provided under chapter 89 of title 5, United 
States Code, to assist individuals in making informed decisions 
concerning the choice of a health benefits plan under such chapter 
and the use of benefits available under any such plan, and (2) submit 
to the Committee on Post Office and Civil Service of the House of 
Representatives and the Committee on Governmental Affairs of the 
Senate a report on the findings and determinations of the Office 
resulting from such study. 
(b) REPORT REQUIREMENTS.—The report required by subsection (a) 
shall include— 
(1) an assessment of the adequacy of the sources and methods 
referred to in such subsection in advising individuals with 
respect to the coordination of benefits under chapter 89 of title 
5, United States Code, with benefits available under other 
health insurance programs established by or under Federal law, 
including title XVIII of the Social Security Act; and 
42 USC 1395. 
(2) the administrative actions and any recommendations for 
legislation which the Office considers necessary in order to 
improve the effectiveness of any such source or method. 
SEC. 110. DEMONSTRATION PROJECT. 
5 USC 7901 note. 
(a) DEFINITIONS.—For the purposes of this section— 
(1) "health protection" means activities to minimize environ-
mental and other workplace conditions which cause or aggra-
vate stress, illness, disability, or other health impairments, 
including such activities as— 
(A) accommodation of the handicapped; 
(B) review of plans for new or altered facilities; 
(C) routine inspections, surveys, studies of worksites; 
(D) inspections of worksites by a physician, nurse, or 
other licensed health professional with training in occupa-
tional safety and health; 
(E) evaluation and monitoring of worksite hazards; and 
(F) investigations of causes of occupational disease or 
injury; 
(2) "health promotion" means activities to encourage the 
development of health enhancing habits and practices, includ-
ing activities encouraging— 
(A) cessation of tobacco smoking; 
(B) reduction in the misuse of alcohol, drugs, and other 
chemical substances; 
(C) improvements in nutrition; 
(D) improvements in physical fitness, including weight 
reduction; and 
(E) control of stress; 
100 STAT. 18 
PUBLIC LAW 99-251—FEB. 27, 1986 
(3) "disease prevention" means activities to prevent unneces-
sary illnesses, morbidity, disability, and medical treatment, 
including— 
(A) occupationally related examinations; 
(B) general health assessments; 
(C) biological monitoring; 
(D) immunizations, chemoprophylaxis, fitting respirators 
and hearing protectors, use of barrier creams, control of 
high blood pressure, control of sexually transmittable dis-
eases, care to improve pregnancy outcome, control of toxic 
agents, control or elimination of hazards leading to acciden-
tal injuries, control of infectious agents, and other health 
intervention activities; and 
(E) referral to private phjrsicians, dentists, and other 
licensed health professionals; 
(4) "secondary prevention" means— 
(A) activities to provide on-the-job emergency health and 
dental care and assistemce, and 
(B) rehabilitation or follow-up care after emergency care, 
to reduce morbidity, disability, lost productivity, and medical 
treatment. 
Education. 
(b) IN GENERAL.—The Director of the Office of Personnel Manage-
ment, in consultation with the Secretary of Health and Human 
Services, shall establish and carry out at least one demonstration 
project to determine— 
(1) the most effective (including cost-effective) means of— 
(A) furnishing health protection, health promotion, dis-
ease prevention, and secondary prevention services to Fed-
eral Government employees; 
(B) encouraging such employees to adopt good health 
habits; 
(C) reducing health risks to such employees, particularly 
the risks of heart disease, cancer, stroke, diabetes, anxiety, 
depression, and lifestyle-related accidents; 
(D) reducing medical expenses of such employees through 
health protection, health promotion, disease prevention, 
and secondary prevention activities; 
(E) enhancing employee productivity and reducing health 
related liability of the Federal Government through a com-
prehensive occupational health program; and 
(F) carrjdng out a program— 
(i) to train employees under the jurisdiction of a 
Federal Government agency to furnish health protec-
tion, health promotion, disease prevention, and second-
ary prevention services to employees of such agency; 
and 
(ii) to promote interagency agreements under which 
trained employees of an agency are available to furnish 
such services to employees of other Federal Grovem-
ment agencies, subject to reimbursement of the costs of 
the agency in making the trained employees available; 
and 
(2) the cost effectiveness of organizational structures and of 
social and educational programs which may be useful in 
achieving the objectives described in clause (1). 
PUBLIC LAW 99-251—FEB. 27, 1986 
100 STAT. 19 
(c)(1) CONDUCT OF THE DEMONSTRATION PROJECT.—The demonstra-
tion project described in subsection (h) shall be conducted in coopera-
tion with at least one— 
(A) health profession school; 
(B) allied health profession or nurse training institution; or 
(C) public or private entity which provides health care. 
(2)(A) The Director of the Office of Personnel Management, in 
consultation with the Secretary of Health and Human Services, may 
enter into contracts with, or make grants to, any school of medicine, 
school of osteopathy, school of public health, school of nursing, 
health maintenance organization, or other qualified health care 
provider for the purpose of carrying out the demonstration project 
described in subsection (b). 
(B) The authority of the Director of the Office of Personnel 
Management to enter into contracts or to make grants under 
subparagraph (A) is effective for fiscal year 1986 and subsequent 
fiscal years only to such extent or in such amounts as are provided 
in appropriation Acts. 
(C) For the purposes of this paragraph, the terms "school of 
medicine" and "school of osteopathy" have the same meanings as 
provided for such terms in section 701(4) of the Public Health 
Service Act (42 U.S.C. 292a(4)). 
(d) REPORT.—Not later than 60 days after the date the demonstra-
tion project required by subsection (b) terminates, the Director of 
the Office of Personnel Management, in consultation with the Sec-
retary of Health and Human Services, shall submit to Congress a 
report on the project. 
(e) ESTABLISHMENT AND TERMINATION REQUIREMENTS.—The dem-
onstration project required by subsection (b) shall be established not 
later than 6 months after the date of enactment of this Act and shall 
terminate on the date 2 years after such date of enactment. 
SEC. 111. ADDITIONAL TYPE OF HEALTH BENEFITS PLAN. 
Paragraph (4) of section 8903 of title 5, United States Code, is 
amended by adding at the end thereof the following new 
subparagraph: 
"(C) MIXED MODEL PREPAYMENT PLANS.—Mixed model prepay-
ment plans which are a combination of the type of plans 
described in subparagraph (A) and the type of plans described in 
subparagraph (B).". 
SEC. 112. RESTRICTIONS RELATING TO AMOUNTS REFUNDED TO THE 
EMPLOYEES HEALTH BENEFITS FUND FROM CARRIERS' SPE-
CIAL RESERVES. 
(a) PROHIBITED TRANSFERS.—(1) No amount in the Employees 
Health Benefits Fund may be transferred to the general fund of the 
Treasury of the United States or the United States Postal Service as 
a result of a refund described in paragraph (2). 
(2) This subsection applies with respect to any refund made by a 
carrier during fiscal year 1986 or 1987 to the Employees Health 
Benefits Fund to the extent that such refund represents amounts in 
excess of the minimum level of financial reserves necessary to be 
held by such carrier to ensure the stable and efficient operation of 
its health benefits plan. 
(b) RESTRICTION RELATING TO USE OF CERTAIN AMOUNTS IN THE 
FUND.—(1) Any amount which is in the Employees Health Benefits 
Fund, and which is described in paragraph (2), may be used solely 
Schools and 
colleges. 
Contracts. 
Grants. 
Contracts. 
Grants. 
5 use 8909 note. 
100 STAT. 20 
PUBLIC LAW 99-251—FEB. 27, 1986 
for the purpose of paying the Government contribution under chap-
5 use 8901 et 
ter 89 of title 5, United States Code, for health benefits for annu-
*^9- 
itants enrolled in health benefits plans (without regard to the health 
benefits plan or plans from which the refunds were received). 
(2) This subsection applies with respect to any amounts— 
(A) which are referred to in subsection (a)(2); and 
(B) which are attributable to Government contributions (other 
than contributions by the government of the District of Colum-
bia, which shall be returned to such government) that were 
made under section 8906(b) of title 5, United States Code, as 
determined under regulations which the Office of Personnel 
Management shall prescribe. 
(c) DEFINITIONS.—For the purpose of this section— 
(1) the term "Employees Health Benefits Fund" refers to the 
fund described in section 8909(a) of title 5, United States Code; 
(2) the term "carrier" has the meaning given such term by 
section 8901(7) of such title; and 
(3) the term "health benefits plan" has the meaning given 
such term by section 8901(6) of such title. 
TITLE II—CIVIL SERVICE SPOUSE AND FORMER SPOUSE 
EQUITY IMPROVEMENTS 
SEC. 201. REVISION OF THE APPLICATION AND SPECIAL ELECTIONS PRO-
VISIONS OF THE CIVIL SERVICE RETIREMENT SPOUSE EQUITY 
ACT OF 1984. 
5 use 8341 note. 
(a) APPLICATION.—Section 4(a) of the Civil Service Retirement 
Spouse Equity Act of 1984 (Public Law 98-615; 98 Stat. 3204) is 
amended to read as follows: 
Effective date. 
"(a)(1) Except as provided in paragraphs (3), (4), (5), and (6) and 
5 use 8331. 
subsections (b) and (c), the amendments made by section 2 of this Act 
shall take effect May 7, 1985, and shall apply— 
"(A) to any individual who, on or after such date, is married 
to an employee or Member who, on or after such date, retires, 
dies, or applies for a refund of contributions under subchapter 
5 use 8331 et 
HI of chapter 83 of title 5, United States Code, and 
s^9 
"(B) to any individual who, as of such date, is married to a 
retired employee or Member, 
unless (i) such employee or Member has waived, under the first 
sentence of section 8339(j)(l) of such title (or a similar prior provi-
sion of law), the right of that individual's spouse to receive a 
survivor annuity, or (ii) in the case of a post-retirement marriage or 
remarriage, an election has not been made before such date by such 
employee or Member with respect to such individual under the 
applicable provisions of section 8339(j)(l) or 8339(k)(2) of such title, 
as the case may be (or a similar prior provision of law). 
Effective date. 
"(2) Except as provided in subsection (f), the amendments made by 
section 3 of this Act shall take effect May 7, 1985, and shall apply to 
any individual who, on or after such date, is married to an employee 
or annuitant. 
"(3) The amendments made by subparagraphs (B)(iii) and (C)(ii) of 
section 2(4) of this Act (relating to the termination of survivor 
benefits for a widow or widower who remarries before age 55) and 
the amendments made by subparagraph (F) of such section 2(4) 
(relating to the restoration of a survivor annuity upon the dissolu-
tion of such a remarriage) shall apply— 
PUBLIC LAW 99-251—FEB. 27, 1986 
100 STAT. 21 
"(A) in the case of a remarriage occurring on or after the date 
of the enactment of this Act; and 
"(B) with respect to periods beginning on or after such date. 
"(4)(A) Except as provided in subparagraph (B), the amendment 
made by section 2(3)(A) of this Act (but only to the extent that it 
amends title 5, United States Code, by adding a new section 
83390')(5)(C)) and the amendment made by section 2(3)(C) of this Act 
(which relate to the election of a survivor annuity for a spouse in the 
case of a post-retirement marriage or remarriage) shall apply— 
"(i) to an employee or Member who retires before, on, or after 
May 7,1985; and 
"(ii) in the case of a marriage occurring on or after May 7, 
1985. 
"(B) The amendments referred to in subparagraph (A) shall not 
apply in the case of a marriage of an employee or Member retiring 
before May 7, 1985, if the marriage occurred after May 6, 1985, and 
before the date of the enactment of the Federal Employees Benefits 
Improvement Act of 1985. 
"(C) Any election by an employee or Member described in 
subparagraph (B) to provide a survivor annuity for that individual's 
spouse by a marriage described in such subparagraph shall be 
effective if made in accordance with the applicable provisions of 
section 83390)(1) or 8339(k)(2) of title 5, United States Code, as the 
case may be, as in effect on May 6,1985. 
"(5)(A) Paragraphs (2), (3), (4), and (5)(B) of section 83390") of title 5, 
United States Code (as added by section 2(3)(A) of this Act), shall 
apply in the case of a former spouse of an employee or Member 
whose marriage to such employee or Member terminated before 
May 7, 1985, if such employee or Member retires on or after such 
date. 
"(B)(i) The requirement described in clause (ii) shall not apply to 
an election made by an employee or Member under section 83390)(3) 
of title 5, United States Code (EIS amended by section 2(3)(A) of this 
Act), in order to provide a survivor annuity under section 8341(h) of 
such title (EIS amended by section 2(4)(G) of this Act) in the case of a 
former spouse referred to in subparagraph (A) if the election meets 
the requirements of clause (iii). 
"(ii) The requirement referred to in clause (i) is the requirement 
prescribed in section 8339(j)(3) of title 5, United States Code, for an 
employee or Member to make an election in the case of a former 
spouse under such section 8339(j)(3) 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. 
"(iii) Clause (i) applies to an election which is made by an em-
ployee or Member who retires on or after May 7, 1985, and before 
the date of the enactment of the Federal Employees Benefits 
Improvement Act of 1985, and is received by the Office of Personnel 
Management within the 2-year period beginning on the date of the 
enactment of such Act. 
"(C) A survivor annuity shall be paid a former spouse as provided 
in section 8341(h) of title 5, United States Code (as amended by 
section 2(4XG) of this Act), pursuant to an election made in the case 
of such former spouse under this paragraph. 
"(D) The amendments made by paragraphs (6) and (7) of section 2 
of this Act shall apply in the case of survivor annuities and elections 
authorized by this paragraph. 
100 STAT. 22 
PUBLIC LAW 99-251—FEB. 27, 1986 
"(6) The amendment made by section 2(4)(A) of this Act (relating 
to the definition of a widow or widower) and the amendment made 
by section 2(4XG) of this Act (but only to the extent that it amends 
title 5, United States Code, by adding a new section 8341(i)) shall 
apply with respect to any marriage occurring on or after the date of 
the enactment of this Act.". 
5 u s e 8341 note. 
(b) ENTITLEMENT OF A FORMER SPOUSE IN C A S E OF RETIREMENT OR 
DEATH OF AN EMPLOYEE OR MEMBER BEFORE THE EFFECTIVE DATE.— 
Section 4(b) of the Civil Service Retirement Spouse Equity Act of 
1984 (Public Law 98-615; 98 Stat. 3205) is amended— 
(1) in paragraph (1)— 
(A) by striking out "the one hundred and eightieth day 
after the date of enactment of this Act" in the matter 
before subparagraph (A) and inserting in lieu thereof 
"May 7, 1985, or who died after becoming eligible to retire 
and before such date,"; 
(B) by striking out "retired" in the matter before clause 
(i) in subparagraph (B); and 
(C) by striking out clause (iii) in subparagraph (B) and by 
redesignating clauses (iv), (v), and (vi) of such subparagraph 
as clauses (iii), (iv), and (v), respectively; and 
(2) by redesignating paragraph (4) as paragraph (5); 
(3) by inserting after paragraph (3) the following new para-
graph (4): 
"(4)(A) A former spouse of an employee or Member referred to in 
the matter before subparagraph (A) in paragraph (1) of this section 
shall be entitled to a survivor annuity under subparagraph (B) of 
such paragraph i
f
— 
"(i) the former spouse satisfies the requirements of clauses (ii) 
through (v) of such subparagraph (B); and 
"(ii) there is no surviving spouse of the employee or Member 
and no other former spouse of such employee or Member who is 
entitled to receive a survivor annuity under subchapter III of 
5 use 8331 et 
chapter 83 of title 5, United States Code, based on the service of 
se?- 
such employee or Member which is creditable under such sub-
chapter and there is no other person who has been designated to 
receive a survivor annuity under such subchapter by reason of 
an insurable interest in such employee or Member. 
"(B) For the purposes of this paragraph, the term 'surviving 
spouse' means a widow or a widower as defined in paragraphs (1) 
and (2), respectively, of section 8341(a) of title 5, United States 
Code."; and 
(4) in paragraph (5), as redesignated by clause (2) of this 
subsection— 
(A) by striking out "Member," in the matter before 
subparagraph (A) and inserting in lieu thereof "Member (or 
of that portion of the annuity which such employee or 
Member may have designated for this purpose under para-
graph (1)(A) of this subsection),"; and 
(B) by striking out "section 8341(b)(4)" in the matter 
following subparagraph (B) and inserting in lieu thereof 
"section 8341(h)(2)". 
5 u s e 8341 note. 
(c) EUGIBILITY OF CERTAIN FoRMER SPOUSES T o ENROLL IN A 
FEDERAL EMPLOYEES HEALTH BENEFITS PLAN.—(1) The first sentence 
of section 4(f) of the Civil Service Retirement Spouse Equity Act of 
1984 is amended to read as follows: "Any individual— 
PUBLIC LAW 99-251—FEB. 27, 1986 
100 STAT. 23 
"(1) who is entitled to a survivor annuity under subsection (b) 
of this section or pursuant to an election authorized by reason of 
the application of subsection (aX5) of this section, 
"(2) as to whom a court order or decree referred to in section 
8345(j) of title 5, United States Code (or similar provision of law 
under a retirement system for Government employees other 
than the Civil Service Retirement S3^stem) has been issued 
before May 7,1985, or 
"(3) who is entitled (other than as described in paragraph (2)) 
to an annuity or any portion of an annuity as a former spouse 
under a retirement system for (jrovemment employees as of 
May 7,1985, 
shall be considered to have satisfied section 8901(10XC) of title 5, 
United States Oxle, as amended by this Act.". 
(2) The second sentence of such section 4(f) is amended— 
5 use 8341 note. 
(A) by inserting ", within 12 months after the date of the 
enactment of the Federal Employees Benefits Improvement Act 
of 1985," before "enroll"; and 
(B) by inserting before the period at the end the following: 
"(other than the conditions prescribed in subparagraphs (A) and 
(B) of paragraph (1) of such section 8905(c))". 
(d) ADDITIONAL ELECTION.—(1) Notwithstanding the time limita- 
5 use 8341 note. 
tion prescribed in subparagraph (A) of section 4(bXl) of the Civil 
Service Retirement Spouse Equity Act of 1984, an election may be 
made imder such subparagraph before the expiration of the 12-
month period b^inning on the date on which the r^ulations under 
paragraph (3) of this subsection first take effect. 
(2) Any retired employee or Member who has made an election 
under section 4(bXl)(A) of the Civil Service Retirement Spouse 
Equity Act of 1984 (as in effect at the time of such election) before 
the regulations under pars^aph (3) of this subsection become effec-
tive may modify such election by designating, in writing, that only a 
portion of such employee or Member's annuity is to be used as the 
base for the survivor annuity for the former spouse for whom the 
election was made. A modification under this subparagraph shall be 
subject to the deadline under paragraph (1) of this subsection. 
(3) The Office of Personnel Management shall prescribe regula-
tions to carry out this subsection, including regulations under which 
an appropriate refund shall be made in the case of a modification 
under paragraph (2) of this subsection. 
SEC. 202. CREDIT FOR MILITARY SERVICE. 
Section 83320'Xl) of title 5, United States CJode, is amended by 
striking out "widow" each place it appears and inserting in lieu 
thereof "spouse, former spouse". 
SEC. 203. ANNUITY REDUCTIONS. 
(a) IRREVOCABILITY OF A JOINT SPOUSAL WAIVER.—Section 83390X3) 
of title 5, United States (Dode, is amended by inserting ", unless all 
rights to survivor benefits for such former spouse under this sub-
chapter based on marriage to such employee or Member were 
waived under paragraph (1) of this subsection" before the period at 
the end of the first sentence. 
(b) 
REPLACEMENT 
OF 
TERMINATED 
REDUCTION.—Section 
8339(jX5XB) of title 5, United States Ckxie, is amended to read as 
follows: 
100 STAT. 24 
PUBLIC LAW 99-251—FEB. 27, 1986 
"(B) 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. This reduction shall 
be replaced by an appropriate reduction or reductions under para-
graph (4) of this subsection if the retired employee or Member has (i) 
another former spouse who is entitled to a survivor annuity under 
5 use 8341. 
section 8341(h) of this title, (ii) a current spouse to whom the 
employee or Member was married at the time of retirement and 
with respect to whom a survivor annuity was not jointly waived 
under paragraph (1) of this subsection, or (iii) a current spouse 
whom the employee or Member married after retirement and with 
respect to whom an election has been made under subparagraph (C) 
of this paragraph or subsection (k)(2) of this section.". 
(c) ELECTIONS RELATING TO A SURVIVOR ANNUITY FOR A PERSON 
WHO HAS AN INSURABLE INTEREST IN AN ANNUITANT.—(1) Section 
8339(j)(5)(C) of title 5, United States Code, is amended by adding at 
the end thereof the following: 
"(v) An election to provide a survivor annuity to a person under 
this subparagraph— 
"(I) shall prospectively void any election made by the 
employee or Member under subsection (k)(l) of this section with 
respect to such person; or 
"(II) shall, if an election was made by the employee or 
Member under such subsection (k)(l) with respect to a different 
person, prospectively void such election if appropriate written 
application is made by such employee or Member at the time of 
making the election under this subparagraph. 
"(vi) The deposit provisions of clauses (ii) and (iii) of this subpara-
graph shall not apply i
f
— 
"(I) the employee or Member makes an election under this 
subparagraph after having made an election under subsection 
(k)(l) of this section; and 
"(II) the election under such subsection (k)(l) becomes void 
under clause (v) of this subparagraph,". 
5 use 8339. 
(2) Section 8339(k)(l) of such title is amended by adding at the end 
thereof the following: "In the case of a married employee or 
Member, an election under this paragraph on behalf of the spouse 
may be made only if any right of such spouse to a survivor annuity 
based on the service of such employee or Member is waived in 
accordance with subsection (j)(l) of this section.". 
(3) Paragraph (2) of section 8339(k) of such title is amended— 
(A) by striking out subparagraph (B)(i) and inserting in lieu 
thereof the following: 
"(B)(i) The election and reduction shall take effect on the first day 
of the first month beginning after the expiration of the 9-month 
period beginning on the date of marriage. Any such election to 
provide a survivor annuity for a person— 
"(I) shall prospectively void any election made by the 
employee or Member under paragraph (1) of this subsection 
with respect to such person; or 
"(II) shall, if an election was made by the employee or 
Member under such paragraph with respect to a different 
person, prospectively void such election if appropriate written 
application is made by such employee or Member at the time of 
making the election under this paragraph."; 
PUBLIC LAW 99-251—FEB. 27, 1986 
100 STAT. 25 
(B) by striking out "(other than an employee or Member who 
made a previous election under paragraph (1) of this subsec-
tion)" in subparagraph (B)(ii); and 
(C) by adding at the end thereof the following new subpara-
graph (D): 
"(D) Subparagraphs (B)(ii) and (C) of this paragraph shall not 
apply if— 
"(i) the employee or Member makes an election under this 
paragraph after having made an election under paragraph (1) of 
this subsection; and 
"(ii) the election under such paragraph (1) becomes void under 
subparagraph (B)(i) of this paragraph.", 
(d) EFFECTIVE DATE.—The amendments made by this section shall 
5 USC 8339 note, 
take effect May 7,1985. 
SEC. 204. PRORATED COST-OF-LIVING ADJUSTMENTS FOR THE FIRST 
YEAR. 
Section 8340(c)(1) of title 5, United States Code, is amended— 
(1) by striking out "or widower" the first time it appears and 
inserting in lieu thereof ", widower, or former spouse,"; and 
(2) by striking out "or widower" the second and third time it 
appears and inserting in lieu thereof ", widower, former spouse, 
or insurable interest designee". 
SEC. 205. SURVIVOR BENEFITS FOR CHILDREN. 
(a) EQUITABLE SURVIVOR ANNUITIES FOR SURVIVING CHILDREN.— 
Section 8341(e) of title 5, United States Code, is amended— 
(1) by redesignating paragraphs (1) and (2) as paragraphs (2) 
and (3), respectively; and 
(2) by inserting before paragraph (2), as redesignated by 
clause (1), the following new paragraph: 
"(1) For the purposes of this subsection, 'former spouse' includes a 
former spouse who was married to an employee or Member for less 
than 9 months and a former spouse of an employee or Member who 
completed less than 
18 months of service covered by this 
subchapter.". 
03) INDIVIDUAL DETERMINATION OF SURVIVOR ANNUITY AMOUNT.— 
Section 8341(e)(2) of title 5, United States Code, as redesignated by 
subsection (a)(1) of this section, is amended by striking out "each 
surviving child" both times it appears and inserting in lieu thereof 
"that surviving child". 
SEC. 206. DEFERRED ANNUITIES FOR FORMER SPOUSES OF FORMER 
MEMBERS OF CONGRESS. 
Section 8341(h)(1) of title 5, United States Code, is amended by 
striking out "or annuitant" and inserting in lieu thereof "annuitant, 
or former Member who was separated from the service with title to 
a deferred annuity under section 83380t)) of this title". 
5 USC 8338. 
SEC. 207. CHANGES IN COURT ORDERS AFTER DEATH. 
Section 8341(h)(4)(A) of title 5, United States Code, is amended by 
inserting "or death" after "retirement". 
SEC. 208. EFFECT OF A SEPARATION AGREEMENT ON REFUND OF A 
LUMP-SUM CREDIT. 
Section 8342(j)(l)(B) of title 5, United States Code, is amended to 
read as follows: 
100 STAT. 26 
PUBLIC LAW 99-251—FEB. 27, 1986 
"(B) shall be subject to the terms of a court decree of divorce, 
annulment, or l^al separation or any court order or court 
approved property settlement agreement incident to such 
decree if— 
"(i) the decree, order, or agreement expressly relates to 
any portion of the lump-sum credit involved; and 
"(ii) payment of the lump-sum credit would extinguish 
entitlement of the employee's or Member's spouse or 
former spouse to a survivor annuity under section 8341(h) of 
this title or to any portion of an annuity under section 
5 use 8345. 
83450*) of this title.'. 
TITLE III—MISCELLANEOUS CIVIL SERVICE 
AMENDMENTS 
SEC. 301. RECEPTION AND REPRESENTATION EXPENSES OF THE OFFICE 
OF PERSONNEL MANAGEMENT. 
Section 1103(a) of title 5, United States Code, is amended— 
(1) by striking out "and" after paragraph (7); 
(2) by striking out the period after paragraph (8) and by 
inserting in lieu thereof "; and"; and 
(3) by inserting after paragraph (8) the following: 
"(9) incurring official reception and representation expenses 
of the Office subject to any limitation prescribed in any law.". 
SEC. 302. EXCEPTION TO NOTICE REQUIREMENTS FOR ROUTINE PAY 
MATTERS. 
Section 1103(b) of title 5, United States Code, is amended by 
adding at the end thereof the following new paragraph: 
"(4) Paragraphs (1) and (2) of this subsection and section 1105 of 
5 use 1105. 
this title shall not apply to the establishment of any schedules or 
rates of basic pay or sdlowances under subpart D of part III of this 
title. The preceding sentence does not apply to the establishment of 
the procedures, methodology, or criteria used to establish such 
schedules, rates, or allowances.". 
SEC. 303. PREDEPARTURE ALLOWANCE. 
Puerto Rico. 
Section 5924(2XA) of title 5, United States Code, is amended by 
Panama. 
inserting after "United States" the following: ", its territories or 
possessions, the Commonwealth of Puerto Rico, or the areas and 
installations in the Republic of Panama made available to the 
TIAS 10030. 
United States pursuant to the Panama Canal Treaty of 1977 and 
related agreements". 
SEC. 304. DENTAL CARE IN GOVERNMENT MEDICAL FACILITIES OVER-
SEAS. 
The second sentence of section 5 of the Act of May 10, 1943 (24 
U.S.C. 35; 57 Stat. 81) is amended to read as follows: "Routine dental 
care, other than dental prosthesis and orthodontia, may be fur-
nished to such persons who are outside the naval service under the 
24 use 34. 
same conditions as are prescribed in section 4 of this Act for hospital 
and dispensary care for such persons.". 
SEC. 305. MINIMUM ANNUITY UNDER THE CIVIL SERVICE RETIREMENT 
AND DISABILITY SYSTEM. 
(a) REPEAL.—Section 8345(f) of title 5, United States Code, is 
repealed. 
PUBLIC LAW 99-251—FEB. 27, 1986 
100 STAT. 27 
(b) SAVINGS PROVISION.—An annuity payable from the Civil Serv- 
5 use 8345 note. 
ice Retirement and Disability Fund as of the day before the date of 
enactment of this Act shall not be reduced— 
(1) by reason of the repeal of section 8345(0 of title 5, United 
Ante, p. 26. 
States Code; or 
(2) if or to the extent that the reduction is to be made for the 
purpose of eliminating an overpayment resulting from the 
manner in which such section 8345(f) has been administered by 
the Office of Personnel Management. 
(c) RATIFICATION OF ERRONEOUS PAYMENTS.—Any individual to 
5 use 8345 note. 
whom an overpayment of an annuity has been made from the Civil 
Service Retirement and Disability Fund before the date of enact-
ment of this Act shall be deemed to have been entitled to that 
overpajonent if and to the extent that such overpayment resulted 
from the manner in which the Office of Personnel Management has 
administered section 8345(f) of title 5, United States Code. 
(d) ADJUSTMENTS OF CERTAIN REDUCTIONS.—(1) Effective for any 
5 use 8345 note. 
month after the date of enactment of this Act, the amount of any 
annuity which— 
(A) is payable from the Civil Service Retirement and Dis-
ability Fund; and 
(B) was reduced after June 30, 1985, and before the date of 
enactment of this Act, to eliminate any overpayment resulting 
from the manner in which the Office of Personnel Management 
administered section 8345(f) of title 5, United States Code, 
shall not be less than the amount which would have been payable as 
of such date of enactment if the reduction described in clause (B) 
had not been made. 
(2)(A) The Office shgJl make a lump-sum payment to each individ-
ual receiving an annuity to which paragraph (1) applies. 
(B) The lump-sum payment made to any individual under this 
paragraph shall be equal to the excess of— 
(i) the total amount of the annuity payments which would 
have been made to the individual for the period beginning with 
the first month in which the reduction described in paragraph 
(1)(B) was made and ending on the last day of the month in 
which this Act is enacted if the reduction had not been made, 
over 
(ii) the total eimount of the annuity payments which have 
been paid to such individual for that period. 
SEC. 306. CIVIL SERVICE BENEFITS FOR FORMER EMPLOYEES OF COUNTY 
COMMITTEES. 
(a) RETENTION.—Section 3502(a)(C) of title 5, United States Code, is 
amended by striking out "who is an employee in or under the 
Department of Agriculture". 
(b) RATE OF PAY ON CHANGE OF POSITION.—Section 5334(e) of 
title 5, United States Code, is amended— 
(1) by inserting a comma after "may"; and 
(2) by striking out "under the Department of Agriculture,". 
(c) ACCRUAL AND ACCUMULATION OF LEAVE.—The first sentence of 
section 6312 of title 5, United States Code, is amended by striking 
out "in the case of any officer or employee in or under the Depart-
ment of Agriculture". 
100 STAT. 28 
PUBLIC LAW 99-251—FEB. 27, 1986 
SEC. 307. 18-MONTH PERIOD TO ELECT A SURVIVOR ANNUITY UNDER THE 
CIVIL SERVICE RETIREMENT AND DISABILITY SYSTEM. 
(a) IN GENERAL.—Section 8339 of title 5, United States Code, is 
amended by adding at the end thereof the following: 
"(oXDCA) An employee or Member— 
"(i) who, at the time of retirement, is married, and 
"(ii) who notifies the Office at such time (in accordance with 
subsection 0)) that a survivor annuity under section 8341(b) of 
this title is not desired, 
may, during the 18-month period beginning on the date of the 
retirement of such employee or Member, elect to have a reduction 
under subsection (j) made in the annuity of the employee or Member 
(or in such portion thereof as the employee or Member may des-
ignate) in order to provide a survivor annuity for the spouse of such 
employee or Member. 
"(B) An employee or Member— 
"(i) who, at the time of retirement, is married, and 
"(ii) who at such time designates (in accordance with subsec-
tion (j)) that a limited portion of the annuity of such employee 
or Member is to be used as the base for a survivor annuity 
under section 8341(b) of this title, 
may, during the 18-month period beginning on the date of the 
retirement of such employee or Member, elect to have a greater 
portion of the annuity of such employee or Member so used. 
"(2)(A) An election under subparagraph (A) or (B) of paragraph (1) 
of this subsection shall not be considered effective unless the 
amount specified in subparagraph (B) of this paragraph is deposited 
into the Fund before the expiration of the applicable 18-month 
period under paragraph (1). 
"(B) The amount to be deposited with respect to an election under 
this subsection is an amount equal to the sum o
f
— 
"(i) the additional cost to the System which is associated with 
providing a survivor annuity under subsection (b)(2) of this 
section and results from such election taking into account (I) the 
difference (for the period between the date on which the annu-
ity of the participant or former participant commences and the 
date of the election) between the amount paid to such partici-
pant or former participant under this subchapter and the 
amount which would have been paid if such election had been 
made at the time the participant or former participant applied 
for the annuity, and (II) the costs associated with providing for 
the later election; and 
"(ii) interest on the additional cost determined under clause 
(i) of this subparagraph computed using the interest rate speci-
5 use 8334. 
fied 
or determined under section 8334(e) of this title for the 
calendar year in which the amount to be deposited is 
determined. 
"(3) An election by an employee or Member under this subsection 
voids prospectively any election previously made in the case of such 
employee or Member under subsection (j). 
"(4) An annuity which is reduced in connection with an election 
under this subsection shall be reduced by the same percentage 
reductions as were in effect at the time of the retirement of the 
employee or Member whose annuity is so reduced. 
"(5) Rights and obligations resulting from the election of a reduced 
annuity under this subsection shall be the same as the rights and 
PUBLIC LAW 99-251—FEB. 27, 1986 
100 STAT. 29 
obligations which would have resulted had the employee or Member 
involved elected such annuity at the time of retiring. 
"(6) The Office shall, on an annual basis, inform each employee or 
Member who is eligible to make an election under this subsection of 
the right to make such election and the procedures and deadlines 
applicable to such election.". 
(b) EFFECTIVE DATE AND APPUCATION.—(1) The amendment made 
5 use 8339 note. 
by subsection (a) shall take effect 3 months after the date of the 
enactment of this Act. 
(2XA) Subject to subparagraph (B), the amendment made by 
subsection (a) shall apply with respect to employees and Members 
who retire before, on, or after such amendment first takes effect. 
(B) For the purpose of appljdng the provisions of paragraph (1) of 
section 8339(o) of title 5, United States Code (as added by subsection 
(a) of this section) to employees and Members who retire before the 
date on which the amendment made by subsection (a) first takes 
effect— 
(i) the period referred to in subparagraph (A) or (B) of such 
paragraph (as the case may be) shall be considered to begin on 
the date on which such amendment first becomes effective; and 
(ii) the amount referred to in paragraph (2) of such section 
8339(o) shall be computed without regard to the provisions of 
subparsigraph (BXii) of such paragraph (relating to interest). 
(3) For purposes of this subsection, the terms "employee" and 
"Member" each has the meaning given that term in sections 8331(1) 
and 8331(2) of title 5, United States C!ode, respectively. 
Approved February 27, 1986. 
LEGISLATIVE HISTORY—H.R. 4061: 
CONGRESSIONAL RECORD, Vol. 132 (1986): 
Feb. 3, considered and passed House. 
Feb. 5, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 22 (1986): 
Feb. 27, Presidential statement.