Federal Workforce Restructuring Act of 1994
PL 103-226 (H.R.3345), enacted 03/30/1994

PUBLIC LAW 103-226—MAR. 30, 1994 
108 STAT. Ill 
Public Law 103-226 
103d Congress 
An Act 
To provide temporary authority to Government agencies relating to voluntary separa- 
Mar. 30, 1994 
tion incentive payments, and for other purposes. 
[H.R. 3345] 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled. 
Federal 
Workforce 
SECTION 1. SHORT TITLE. 
Restructuring 
This Act may be cited as the "Federal Workforce Restructuring 5 use 2101 note 
Act of 1994". 
SEC. 2. TRAINING. 
(a) IN GENERAL,—Chapter 41 of title 5, United States Code, 
is amended— 
(1) in section 4101(4) by striking "fields" and all that follows 
through the semicolon and inserting "fields which will improve 
individual and organizational performance and assist in achiev-
ing the agency's mission and performance goals;"; 
(2) in section 4103— 
(A) in subsection (a)— 
(i) by striking "In" and all that follows through 
"maintain" and inserting "In order to assist in achiev-
ing an agency's mission and performance goals by 
improving employee and organizational performance, 
the head of each agency, in conformity with this chap-
ter, shall establish, operate, maintain, and evaluate"; 
(ii) by striking "and" at the end of paragraph (2); 
(iii) by redesignating paragraph (3) as paragraph 
(4); and 
(iv) by inserting after paragraph (2) the following: 
"(3) provide that information concerning the selection and 
assignment of employees for training and the applicable train-
ing limitations and restrictions be made available to employees 
of the agency; and"; and 
(B) in subsection (b)— 
(i) in paragraph (1) by striking "determines" and 
all that follows through the period and inserting "deter-
mines that such training would be in the interests 
of the Government,"; 
(ii) by striking paragraph (2) and redesignating 
paragraph (3) as paragraph (2); and 
(iii) in subparagraph (C) of paragraph (2) (as so 
redesignated) by striking "retaining" and all that fol-
lows through the period and inserting "such training."; 
(3) in section 4105— 
(A) in subsection (a) by striking "(a)"; and 
108 STAT. 112 
PUBLIC LAW 103-226—MAR. 30, 1994 
(B) by striking subsections (b) and (c); 
(4) by repealing section 4106; 
(5) in section 4107— 
(A) by amending the catchline to read as follows: 
*
*
§ 4107. Restriction on degree training*'; 
(B) by striking subsections (a) and (b) and redesignat-
ing subsections (c) and (d) as subsections (a) and (b), respec-
tively; 
(C) by amending subsection (a) (as so redesignated)— 
(i) by striking "subsection (d)" and inserting "sub-
section (b)"; and 
(ii) by striking "by, in, or through a non-Govern-
ment facility"; and 
(D) by amending paragraph (1) of subsection (b) (as 
so redesignated) by striking "subsection (c)" and inserting 
"subsection (a)"; 
(6) in section 4108(a) by striking "by, in, or through a 
non-Government facility under this chapter" and inserting "for 
more than a minimum period prescribed by the head of the 
agency"; 
(7) in section 4113(b)— 
(A) in the first sentence by striking "annually to the 
Office," and inserting "to the Office, at least once every 
3 years, and"; and 
(B) by striking the matter following the first sentence 
and inserting the following: "The report shall set forth— 
"(1) information needed to determine that training is being 
f
)rovided in a manner which is in compliance with applicable 
aws intended to protect or promote equal emplojrment oppor-
tunity; and 
"(2) information concerning the expenditures of the agency 
in connection with training and such other information as the 
Office considers appropriate."; 
(8) by repealing section 4114; and 
(9) in section 4118— 
(A) in subsection (a)(7) by striking "by, in, and through 
non-Government facilities"; 
(B) by striking subsection (b); and 
(C) by redesignating subsections (c) and (d) as sub-
sections (b) and (c), respectively. 
(b) 
TECHNICAL AND 
CONFORMING AMENDMENTS.—^Title 
5, 
United States Code, is amended— 
(1) in section 3381(e) by striking "4105(a)," and inserting 
"4105,"; and 
(2) in the analysis for chapter 41— 
(A) by repealing the items relating to sections 4106 
and 4114; and 
(B) by amending the item relating to section 4107 
to read as follows: 
"4107. Restriction on degree training.". 
5 use 3381 note. 
(c) EFFECTIVE DATE.—^The amendments made by this section 
shall become effective on the date of enactment of this Act. 
5 u s e 5597 note. 
SEC. 3. VOLUNTARY SEPARATION INCENTIVES. 
(a) DEFINITIONS.—For the purpose of this section— 
PUBLIC LAW 103-226—MAR. 30, 1994 
108 STAT. 113 
(1) the term "agency" means an Executive agency (as 
defined by section 105 of title 5, United States Code), but 
does not include the Department of Defense, the Central Intel-
ligence Agency, or the General Accounting Office; and 
(2) the term "employee" means an employee (as defined 
by section 2105 of title 5, United States Code) who is employed 
by an agency, is serving under an appointment without time 
limitation, and has been currently employed for a continuous 
period of at least 12 months; such term includes an individual 
employed by a county committee established under section 8(b) 
of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(b)), but does not include— 
(A) a reemployed annuitant under subchapter III of 
chapter 83 or chapter 84 of title 5, United States Code, 
or another retirement system for employees of the Govern-
ment; or 
(B) an employee having a disability on the basis of 
which such employee is or would be eligible for disability 
retirement under the applicable retirement system referred 
to in subparagraph (A). 
(b) AUTHORITY.— 
(1) IN GENERAL.—In order to avoid or minimize the need 
for involuntary separations due to a reduction in force, reorga-
nization, transfer of function, or other similar action, and sub-
ject to paragraph (2), the head of an agency may pay, or 
authorize the payment of, voluntary separation incentive pay-
ments to agency employees— 
(A) in any component of the agency; 
(B) in any occupation; 
(C) in any geographic location; or 
(D) on the basis of any combination of factors under 
subparagraphs (A) through (C). 
(2) CONDITION.— 
(A) IN GENERAL.—In order to receive an incentive pay-
ment, an employee must separate from service with the 
agency (whether by retirement or resignation) before April 
1, 1995. 
(B) EXCEPTION.—^An employee who does not separate 
from service before the date specified in subparagraph (A) 
shall be ineligible for an incentive payment under this 
section unless— 
(i) the agency head determines that, in order to 
ensure the performance of the agenc/s mission, it is 
necessary to delay such employee's separation; and 
(ii) the employee separates after completing any 
additional period of service required (but not later 
than March 31, 1997). 
(c) AMOUNT AND TREATMENT OF PAYMENTS.—^A voluntary sepa-
ration incentive pa3anent— 
(1) shall be paid in a lump sum after the employee's 
separation; 
(2) shall be equal to the lesser of— 
(A) an amount equal to the amount the employee would 
be entitled to receive under section 5595(c) of title 5, United 
States Code, if the employee were entitled to payment 
under such section; or 
(B) $25,000; 
; 
108 STAT. 114 
PUBLIC LAW 103-226—MAR. 30, 1994 
(3) shall not be a basis for payment, and shall not be 
included in the computation, of any other type of Government 
benefit; 
(4) shall not be taken into account in determining the 
amount of any severance pay to which an employee may be 
entitled under section 5595 of title 5, United States Code, 
based on any other separation; and 
(5) shall be paid from appropriations or funds available 
for the payment of the basic pay of the employee. 
(d) 
EFFECT 
OF 
SUBSEQUENT 
EMPLOYMENT 
WITH 
THE 
GOVERNMENT.— 
(1) IN GENERAL.—^An employee who has received a vol-
untary separation incentive payment under this section and 
accepts employment with the Government of the United States 
within 5 years after the date of the separation on which the 
payment is based shall be required to repay the entire amount 
of the incentive payment to the agency that paid the incentive 
payment. 
(2) WAIVER AUTHORITY.— 
(A) EXECUTIVE AGENCY.—If the employment is with 
an Executive agency (as defined by section 105 of title 
5, United States Code), the Director of the Office of Person-
nel Management may, at the request of the head of the 
agency, waive the repayment if the individual involved 
possesses unique abilities and is the only 
qualified 
applicant available for the position. 
(B) LEGISLATIVE BRANCH.—If the employment is with 
an entity in the legislative branch, the head of the entity 
or the appointing official may waive the repayment if the 
individual involved possesses unique abilities and is the 
only qualified applicant available for the position. 
(C) JUDICIAL BRANCH.—If the employment is with the 
judicial branch, the Director of the Administrative Office 
of the United States Courts may waive the repayment 
if the individual involved possesses unique abilities and 
is the only qualified applicant available for the position. 
(3) DEFINITION.—For purposes of paragraph (1) (but not 
paragraph (2)), the term "employment includes employment 
under a personal services contract with the United States. 
(e) REGULATIONS.—The Director of the Office of Personnel 
Management may prescribe any regulations necessary for the 
administration of subsections (a) through (d). 
(0 EMPLOYEES OF THE JUDICLU. BRANCH.—^The Director of the 
Administrative Office of the United States Courts may, by regula-
tion, establish a program consistent with the program established 
by subsections (a) through (d) for individuals serving in the judicial 
branch. 
5 use 8331 note. SEC. 4. ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT 
FUND. 
(a) RELATING TO FISCAL YEARS 1994 AND 1995.— 
(1) IN GENERAL.—In addition to any other payments which 
it is required to make under subchapter III of chapter 83 
of title 5, United States Code, an agency shall remit to the 
Office of Personnel Management for deposit in the Treasury 
of the United States to the credit of the Civil Service Retirement 
PUBLIC LAW 103-226—MAR. 30, 1994 
108 STAT. 115 
and Disability Fund an amount equal to 9 percent of the 
final basic pay of each employee of the agency— 
(A) who, on or after the date of the enactment of 
this Act and before October 1, 1995, retires imder section 
8336(d)(2) of such title; and 
(B) to whom a voluntary separation incentive payment 
has been or is to be paid by such agency based on that 
retirement. 
(2) DEFINITIONS.—For the purpose of this subsection— 
(A) the term "final basic pay", with respect to an 
employee, means the total amount of basic pay which would 
be payable for a year of service by such employee, computed 
using the employee's final rate of basic pay, and, if last 
serving on other than a full-time basis, with appropriate 
adjustment therefor; and 
(B) the term "voluntary separation incentive payment" 
means— 
(i) a voluntary separation incentive payment under 
section 3 (including under any program established 
under section 3(f)); and 
(ii) any separation pay under section 5597 of title 
5, United States Code, or section 2 of the Central 
Intelligence Agency Voluntary Separation Pay Act 
(Public Law 103-36; 107 Stat. 104). 
(b) RELATING TO FISCAL YEARS 1995 THROUGH 1998.— 
(1) IN GENERAL.—In addition to any other pajnnents which 
it is required to make under subchapter III of chapter 83 
or chapter 84 of title 5, United States Code, in fiscal years 
1995, 1996, 1997, and 1998 (and in addition to any amounts 
required under subsection (a)), each agency shall, before the 
end of each such fiscal year, remit to the Office of Personnel 
Management for deposit in the Treasury of the United States 
to the credit of the Civil Service Retirement and Disability 
Fund an amount equal to the product of— 
(A) the number of employees of such agency who, as 
of March 31st of such fiscal year, are subject to subchapter 
III of chapter 83 or chapter 84 of such title; multiplied 
(B) $80. 
(2) DEFINITION.—For the purpose of this subsection, the 
term "agencjr" means an Executive agency (as defined by section 
105 of title 5, United States Code), but does not include the 
General Accounting Office. 
(c) REGULATIONS.—^The Director of the Office of Personnel 
Management may prescribe any regulations necessary to carry out 
this section. 
SEC. 5. REDUCTION OF FEDERAL FULL-TIME EQUIVALENT POSI- 
5 USC 3101 note. 
TIONS. 
(a) DEFINITION.—For the purpose of this section, the term 
"agency" means an Executive agency (as defined by section 105 
of title 5, United States Code), but does not include the General 
Accounting Office. 
(b) LIMITATIONS ON FULL-TIME EQUIVALENT POSITIONS.—The President. 
President, through the Office of Management and Budget (in con-
sultation with the Office of Personnel Management), shall ensure 
108 STAT. 116 
PUBLIC LAW 103-226—MAR. 30, 1994 
that the total number of full-time equivalent positions in all agen-
cies shall not exceed— 
(1) 2,084,600 during fiscal year 1994; 
(2) 2,043,300 during fiscal year 1995; 
(3) 2,003,300 during fiscal year 1996; 
(4) 1,963,300 during fiscal year 1997; 
(5) 1,922,300 during fiscal year 1998; and 
(6) 1,882,300 during fiscal year 1999. 
(c) MONITORING AND NOTIFICATION.—The Office of Management 
and Budget, after consultation with the Office of Personnel Manage-
ment, shall— 
(1) continuously monitor all agencies and make a deter-
mination on the first date of each quarter of each applicable 
fiscal year of whether the requirements under subsection (b) 
are met; and 
(2) notify the President and the Congress on the first 
date of each quarter of each applicable fiscal year of any deter-
mination that any requirement of subsection (b) is not met. 
(d) COMPLIANCE.—If, at any time during a fiscal year, the 
Office of Management and Budget notifies the President and the 
Congress that any requirement under subsection (b) is not met, 
no agency may hire any employee for any position in such agency 
until the Office of Management and Budget notifies the President 
and the Congress that the total number of full-time equivalent 
positions for all agencies equals or is less than the applicable 
number required under subsection (b). 
(e) WAIVER.— 
(1) EMERGENCIES.—^Any provision of this section may be 
waived upon a determination by the President that— 
(A) the existence of a state of war or other national 
security concern so requires; or 
(B) the existence of an extraordinary 
emergency 
threatening life, health, safety, property, or the environ-
ment so requires. 
(2) AGENCY EFFICIENCY OR CRITICAL MISSION.— 
(A) Subsection (d) may be waived, in the case of a 
particular position or category of positions in an agency, 
upon a determination of the President that the efficiency 
of the agency or the performance of a critical agency mis-
sion so requires. 
President. 
(B) Whenever the President grants a waiver pursuant 
to subparagraph (A), the President shall take all necessary 
actions to ensure that the overall limitations set forth 
in subsection (b) are not exceeded. 
(0 EMPLOYMENT BACKFILL PREVENTION.— 
(1) IN GENERAL.—The total number of funded employee 
positions in all agencies (excluding the Department of Defense 
and the Central Intelligence Agency) shall be reduced by one 
position for each vacancy created by the separation of any 
employee who has received, or is due to receive, a voluntary 
separation incentive payment under section 3 (aMe). For pur-
poses of this subsection, positions and vacancies shall be 
counted on a full-time-equivalent basis. 
(2) RELATED RESTRICTION.—No funds budgeted for and 
appropriated by any Act for salaries or expenses of positions 
eliminated under this subsection may be used for any purpose 
other than authorized separation costs. 
PUBLIC LAW 103-226—MAR. 30, 1994 
108 STAT. 117 
(g) LIMITATION ON PROCUREMENT OF SERVICE CONTRACTS.— President. 
The President shall take appropriate action to ensure that there 
is no increase in the procurement of service contracts by reason 
of the enactment of this Act, except in cases in which a cost 
comparison demonstrates such contracts would be to the financial 
advantage of the Federal Government. 
SEC. 6. MONITORING AND REPORT RELATING TO VOLUNTARY SEPA- 5 USC 5597 note. 
RATION INCENTIVE PAYMENTS. 
No later than December 31st of each fiscal year, the Office 
of Personnel Management shall submit to the Committee on Govern-
mental Affairs of the Senate and the Committee on Post Office 
and Civil Service of the House of Representatives a report which, 
with respect to the preceding fiscal year, shall include— 
(1) the number of employees who received a voluntary 
separation incentive payment under section 3 during sucn 
preceding fiscal year; 
(2) the agency from which each such employee separated; 
(3) at the time of separation from service by each such 
employee— 
(A) such employee's grade or pay level; and 
(B) the geographic location of such employee's official 
duty station, by region. State, and city (or foreign nation, 
if applicable); and 
(4)(A) the number of waivers made (in the repayment upon 
subsequent employment) by each agency or otn(;r authority 
under section 3 or the amendments made bv se':tion 8; and 
(B) the title and the grade or pay level of the position 
filled by the employee to whom such waiver applied. 
SEC. 7. DISLOCATION 
PAYMENTS 
FOR 
CERTAIN 
CONTRACTOR 
PERSONNEL. 
(a) PAYMENT.—No later than October 31, 1994, the Director 
of the National Aeronautics and Space Administration shall pay 
$5,000 to each full-time contractor employee who— 
(1) was hired, under a contract relating to the Advanced 
Solid Rocket Motor Program, by— 
(A) Lockheed Missiles and Space Compary; 
(B) Aerojet Corporation, Advanced Solid Rocket Motor 
Division; or 
(C) Rust Corporation; 
(2) was separated from employment in Yellow Creek, Mis-
sissippi, as a result of the termination of the Advanced Solid 
Rocket Motor Program; and 
(3)(A) had been hired locally at Yellow Creek, Mississippi; 
or 
(B) based on the separation referred to in paragraph (2), 
was eligible, but elected not, to be relocated. 
(b) OFFSET.—No payment made under this section shall be 
offset against the severance costs of a contractor. 
(c) SOURCE OF PAYMENTS.—Payments under this section shall 
be from funds appropriated under the subheading "SPACE FLIGHT, 
CONTROL AND DATA COMMUNICATIONS" under the heading "NATIONAL 
AERONAUTICS AND SPACE ADMINISTRATION" under title III of the 
Departments of Veterans Affairs and Housing and Urban Develop-
ment, and Independent Agencies Appropriations Act, 1994 (Public 
Law 103-124; 107 Stat. 1299). 
108 STAT. 118 
PUBLIC LAW 103-226—MAR. 30, 1994 
(d) LIMITATION ON PAYMENTS.—The amount of total payments 
made under this section may not exceed $1,000,000. 
SEC. 8. SUBSEQUENT EMPLOYMENT AND REPAYMENT OF SEPARA-
TION PAYMENT. 
(a) DEFENSE AGENCY SEPARATION PAY.—Section 5597 of title 
5, United States Code, is amended by adding at the end the follow-
ing: 
"(g)(1) An employee who receives separation pay under this 
section on the basis of a separation occurring on or after the 
date of the enactment of the Federal Workforce Restructuring Act 
of 1994 and accepts employment with the Government of the United 
States within 5 years after the date of the separation on which 
payment of the separation pay is based shall be reauired to repay 
the entire amount of the separation pay to the aefense agency 
that paid the separation pay. 
"(2) If the employment is with an Executive agencv, the Director 
of the Office of Personnel Management may, at the request of 
the head of the agency, waive tne repayment if the individual 
involved possesses unique abilities and is the only qualified 
applicant available for the position. 
"(3) If the employment is with an entity in the legislative 
branch, the head of the entity or the appointing official may waive 
the repayment if the individual involved possesses uniq[ue abilities 
and is the only qualified applicant available for the position. 
"(4) If the employment is with the judicial branch, the Director 
of the Administrative Office of the United States Courts may waive 
the repajmaent if the individual involved possesses unique abilities 
and is the only qualified applicant available for the position.". 
(b) CENTRAL INTELLIGENCE AGENCY SEPARATION PAYMENT.— 
Section 2(b) of the Central Intelligence Agency Voluntary Separation 
50 use 403-4 
Pay Act (Pubhc Law 103-36; 107 Stat. 104) is amended by adding 
at the end the following: "An employee who receives separation 
pay under this section on the basis of a separation occurring on 
or after the date of the enactment of the Federal Workforce 
Restructuring Act of 1994 and accepts employment with the Govern-
ment of the United States within 5 years after the date of the 
separation on which payment of the separation pay is based shall 
be required to repay the entire amount of the separation pay 
to the Central Intelligence Agency. If the employment is with an 
Executive agency (as defined by section 105 of title 5, United 
States Code), the Director of the Office of Personnel Management 
may, at the request of the head of the agency, waive the repayment 
if the individual involved possesses unique abilities and is the 
only qualified applicant available for the position. If the employment 
is with an entity in the legislative branch, the head of the entity 
or the appointing official may waive the repayment if the individual 
involvea possesses unique abilities and is the only qualified 
applicant available for the position. If the employment is with 
the judicial branch, the Director of the Administrative Office of 
the United States Courts may waive the repayment if the individual 
involved possesses unique abilities and is the only qualified 
applicant available for the position.". 
SEC. 9. STANDARDIZATION OF WITHDRAWAL OPTIONS FOR THRIFT 
SAVINGS PLAN PARTICIPANTS. 
(a) 
PARTICIPATION IN THE THRIFT SAVINGS PLAN.—Section 
8351(b) of title 5, United States Code, is amended— 
note. 
PUBLIC LAW 103-226—MAR. 30, 1994 
108 STAT. 119 
(1) by amending paragraph (4) to read as follows: 
"(4) Section 8433(b) of this title applies to any employee or 
Member who elects to make contributions to the Thrift Savings 
Fund under subsection (a) of this section and separates from 
Government emplojonent."; 
(2) by striking paragraphs (5), (6), and (8); 
(3) by redesignating paragraphs (7), (9), and (10) as para-
graphs (5), (6), and (7), respectively; 
(4) in paragraph (5)(C) (as so redesignated by paragraph 
(3) of this subsection) by striking "or former spouse" each 
place it appears; 
(5) by amending paragraph (6) (as so redesignated by para-
graph (3) of this subsection) to read as follows: 
"(6) Notwithstanding paragraph (4), if an employee or Member 
separates from Government employment and such employee's or 
Member's nonforfeitable account balance is $3,500 or less, the 
Executive Director shall pay the nonforfeitable account balance 
to the participant in a single payment unless the employee or 
Member elects, at such time and otherwise in such manner as 
the Executive Director prescribes, one of the options available under 
subsection (b)."; and 
(6) in paragraph (7) (as so redesignated by paragraph (3) 
of this subsection) by striking "nonforfeiture 
and inserting 
"nonforfeitable". 
(b) BENEFITS AND ELECTION OF BENEFITS.—Section 8433 of 
title 5, United States Code, is amended— 
(1) in subsection (b) by striking the matter before paragraph 
(1) and inserting the following: 
"(b) Subject to section 8435 of this title, anv employee or Mem-
ber who separates from Government emploinnent is entitled and 
may elect—"; 
(2) by striking subsections (c) and (d) and redesignating 
subsections (e) through (i) as subsections (c) through (g), respec-
tively; 
(3) in subsection (c)(1) (as so redesignated by paragraph 
(2) of this subsection) by striking "or (c)(4) or required under 
subsection (d) directly to an eligible retirement plan or plans 
(as defined in section 402(a)(5)(E) of the Internal Revenue 
Code of 1954)" and inserting "directly to an eligible retirement 
plan or plans (as defined in section 402(c)(8) of the Internal 
Revenue Code of 1986)"; 
(4) in subsection (d)(2) (as so redesignated by paragraph 
(2) of this subsection) by striking "or (c)(2)"; and 
(5) in subsection (f) (as so redesignated by paragraph (2) 
of this subsection)— 
(A) by striking paragraph (1) and redesignating para-
graphs (2) and (3) as paragraphs (1) and (2), respectively; 
and 
(B) in paragraph (1) (as so redesignated by subpara-
graph (A) of this paragraph)— 
(i) by striking "Notwithstanding subsections (b) 
and (c), if an employee or Member separates from 
Government employment under circumstances making 
such employee or Member eligible to make an election 
under either of those subsections, and such employee's 
or Member's" and inserting "Notwithstanding sub-
section (b), if an employee or Member separates from 
108 STAT. 120 
PUBLIC LAW 103-226—MAR. 30, 1994 
Government employment, and such employee's or 
Member's"; and 
(ii) by striking "or (c), as applicable"; and 
(C) in paragraph (2) (as so redesignated by subpara-
graph (A) of this paragraph) by striking "paragraphs (1) 
and (2)" and inserting "paragraph (1)". 
(c) ANNUITIES: METHODS OF PAYMENT; ELECTION; PURCHASE.— 
Section 8434(c) of title 5, United States Code, is amended to read 
as follows: 
"(c) Notwithstanding the elimination of a method of payment 
by the Board, an employee. Member, former employee, or former 
Member may elect the eliminated method if the elimination of 
such method becomes effective less than 5 years before the date 
on which that individual's annuity commences.". 
(d) PROTECTIONS FOR SPOUSES AND FORMER SPOUSES.—Section 
8435 of title 5, United States Code, is amended— 
(1) in subsection (a)(1)(A) by striking "subsection (b)(3), 
(b)(4), (c)(3), or (c)(4) of section 8433 of this title or change 
an election previously made under subsection (b)(1), (bX2), 
(cXD, or (c)(2)" and inserting "subsection (b)(3) or (bX4) of 
section 8433 of this title or change an election previously made 
under subsection (b)(1) or (b)(2)"; 
(2) by striking subsection (b); 
(3) by redesignating subsections (c) through (i) as sub-
sections (b) through (h), respectively; 
(4) in subsection (b) (as so redesignated by paragraph (3) 
of this subsection) by amending paragraph (2) to read as follows: 
"(2) Paragraph (1) shall not apply if— 
"(A) a joint waiver of such method is made, in writing, 
by the employee or Member and the spouse; or 
"(B) the employee or Member waives such method, 
in writing, after establishing to the satisfaction of the 
Executive Director that circumstances described under sub-
section (a)(2) (A) or (B) make the requirement of a joint 
waiver inappropriate."; and 
(5) in subsection (c)(1) (as so redesignated by paragraph 
(3) of this subsection) by striking "and a transfer may not 
be made under section 8433(d) of this title". 
(e) JUSTICES AND JUDGES.—Section 8440a(b) of title 5, United 
States Code, is amended— 
(1) in paragraph (5) by striking "Section 8433(d)" and 
inserting "Section 8433(b)"; and 
(2) by striking paragraphs (7) and (8) and inserting the 
following: 
"(7) Notwithstanding paragraphs (4) and (5), if any justice 
or judge retires under subsection (a) or (b) of section 371 or section 
372(a) of title 28, or resigns without having met the age and 
service requirements set forth under section 371(c) of title 28, 
and such justice's or judge's nonforfeitable account balance is $3,500 
or less, the Executive Director shall pay the nonforfeitable account 
balance to the participant in a single payment unless the justice 
or judge elects, at such time and otherwise in such manner as 
the Executive Director prescribes, one of the options available under 
section 8433(b).". 
(f) BANKRUPTCY JUDGES AND MAGISTRATES.—Section 8440b of 
title 5, United States Code, is amended— 
PUBLIC LAW 103-226—MAR. 30, 1994 
108 STAT. 121 
(1) in subsection (b)(4) by amending subparagraph (B) to 
read as follows: 
"(B) Section 8433(b) of this title applies to any bankruptcy 
judge or magistrate who elects to make contributions to the Thrift 
Savings Fund under subsection (a) of this section and who retires 
before attaining age 65 but is entitled, upon attaining age 65, 
to an annuity under section 377 of title 28 or section 2(c) of the 
Retirement and Survivors Annuities for Bankruptcy Judges and 
Magistrates Act of 1988."; 
(2) in subsection (bX4)(C) by striking "Section 8433(d)" 
and inserting "Section 8433(b)"; 
(3) in subsection (b)(5) by striking "retirement under section 
377 of title 28 is" and inserting "any of the actions described 
under paragraph (4) (A), (B), or (C) shall be considered"; 
(4) in subsection (b) by striking paragraph (8) and 
redesignating paragraph (9) as paragraph (8); and 
(5) in paragraph (8) of subsection (b) (as so redesignated 
by paragraph (4) of this subsection)— 
(A) by striking "Notwithstanding subparagraphs (A) 
and (B) of paragraph (4), if any bankruptcy judge or mag-
istrate retires under circumstances making such bank-
ruptcy judge or magistrate eligible to make an election 
under subsection (b) or (c)" and inserting "Notwithstanding 
paragraph (4), if any bankruptcy judge or magistrate retires 
under circumstances making such bankruptcy judge or 
magistrate eligible to make an election under subsection 
(b)"; and 
(B) by striking "and (c), as applicable". 
(g) CLAIMS COURT JUDGES.—Section 8440c of title 5, United 
States Code, is amended— 
(1) in subsection (b)(4)(B) by striking "Section 8433(d)" 
and inserting "Section 8433(b)"; 
(2) in subsection (b)(5) by striking "retirement under section 
178 of title 28 is" and inserting "any of the actions described 
in paragraph (4) (A) or (B) shall be considered"; 
(3) in subsection (b) by striking paragraph (8) and 
redesignating paragraph (9) as paragraph (8); and 
(4) in paragraph (8) (as so redesignated by paragraph (3) 
of this subsection) by striking "Notwithstanding paragraph 
(4)(A)" and inserting "Notwithstanding paragraph (4)". 
(h) 
JUDGES OF THE UNITED STATES COURT OF VETERANS 
APPEALS.—Section 8440d(b)(5) of title 5, United States Code, is 
amended by striking "A transfer shall be made as provided in 
section 8433(d) of this title" and inserting "Section 8433(b) of this 
title applies". 
(i) TECHNICAL AND CONFORMING AMENDMENTS.—Title 5, United 
States Code, is amended— 
(1) in section 8351(b)(5)(B) (as so redesignated by sub-
section (aX3) of this section) by striking "section 8433(i)" and 
inserting "section 8433(g)"; 
(2) in section 8351(b)(5)(D) (as so redesignated by sub-
section (aX3) of this section) by striking "section 8433(i)" and 
inserting "section 8433(g)"; 
(3) in section 8433(b)(4) by striking "subsection (e)" and 
inserting "subsection (c)"; 
108 STAT. 122 
PUBLIC LAW 103-226—MAR. 30, 1994 
(4) in section 8433(d)(1) (as so redesignated by subsection 
(bX2) of this section) by striking "(d) of section 8435" and 
inserting "(c) of section 8435"; 
(5) in section 8433(dX2) (as so redesignated by subsection 
(bX2) of this section) by striking "section 8435(d)" and inserting 
"section 8435(c)"; 
(6) in section 8433(e) (as so redesignated by subsection 
(b)(2) of this section) by striking "section 8435(dX2)" and insert-
ing "section 8435(cX2)"; 
(7) in section 8433(g)(5) (as so redesignated by subsection 
(b)(2) of this section) by striking "section 8435(f)" and inserting 
"section 8435(e)"; 
(8) in section 8434(b) by striking "section 8435(c)" and 
inserting "section 8435(b)"; 
(9) in section 8435(a)(1)(B) by striking "subsection (c)" and 
inserting "subsection (b)"; 
(10) in section 8435(d)(lXB) (as so redesignated by sub-
section (dX3) of this section) by striking "subsection (d)(2)" 
and inserting "subsection (c)(2)"; 
(11) in section 8435(d)(3XA) (as so redesignated by sub-
section (d)(3) of this section) by striking "subsection (c)(1)" 
and inserting "subsection (bXD"; 
(12) in section 8435(d)(6) (as so redesignated by subsection 
(d)(3) of this section) by striking "or (c)(2)" and inserting "or 
(bX2)"; 
(13) in section 8435(e)(lXA) (as so redesignated by sub-
section (dX3) of this section) by striking "section 8433(i)" and 
inserting "section 8433(g)"; 
(14) in section 8435(eX2) (as so redesignated by subsection 
(d)(3) of this section) by striking "section 8433(i) of this title 
shall not be approved if approval would have the result 
described in subsection (dXD" and inserting "section 8433(g) 
of this title shall not be approved if approval would have 
the result described under subsection (c)(1)"; 
(15) in section 8435(g) (as so redesignated by subsection 
(d)(3) of this section) by striking "section 8433(i)" and inserting 
"section 8433(g)"; 
(16) in section 8437(cX5) by striking "section 8433(i)" and 
inserting "section 8433(g)"; and 
(17) in section 8440a(bX6) by striking "section 8351(bX7)" 
and inserting "section 8351(b)(5)". 
Reg^ations. 
(j) EFFECTIVE DATE.—^This Section shall take effect 1 year after 
5 use 8351 note, ^j^g ^^^^g ^f ^jjg enactment of this Act or on such earlier date 
as the Executive Director of the Federal Retirement Thrift Invest-
ment Board shall provide in regulation. 
SEC. 10. AMENDMENTS TO ALASKA RAILROAD TRANSFER ACT OF 1982 
REGARDING FORMER FEDERAL EMPLOYEES. 
(a) APPLICABILITY OF VOLUNTARY SEPARATION INCENTIVES TO 
CERTAIN FORMER FEDERAL EMPLOYEES.—Section 607(a) of the 
Alaska Railroad Transfer Act of 1982 (45 U.S.C. 1206(a)) is amended 
by adding at the end the following: 
"(4XA) The State-owned railroad shall be included in the 
definition of 'agenc/ for purposes of section 3 (a), (b), (c), 
and (e) of the Federal Workforce Restructuring Act of 1994 
and may elect to participate in the voluntary separation incen-
tive program established under such Act. Any employee of 
PUBLIC LAW 103-226—MAR. 30, 1994 
108 STAT. 123 
the State-owned railroad who meets the qualifications as 
described under the first sentence of paragraph (1) shall be 
deemed an employee under such Act. 
"(B) An employee who has received a voluntary separation 
incentive payment under this paragraph and accepts employ-
ment with the State-owned railroad within 5 years afl»r the 
date of separation on which payment of the incentive is based 
shall be required to repay the entire amoiuit of the incentive 
pajmient unless the head of the State-owned railroad deter-
mines that the individual involved possesses unique abilities 
and is the only qualified applicant available for the position.", 
(b) LIFE AND HEALTH INSURANCE BENEFITS.—Section 607 of 
the Alaska Railroad Transfer Act of 1982 (45 U.S.C. 1206) is 
amended by striking subsection (e) and inserting the following: 
"(e)(1) Any person described under the provisions of paragraph 
(2) may elect life insurance coverage under chapter 87 of title 
5, United States Code, and enroll in a health benefits plan under 
chapter 89 of title 5, United States Code, in accordance with the 
provisions of this subsection. 
"(2) The provisions of paragraph (1) shall apply to any person 
who— 
"(A) on the date of the enactment of the Federal Workforce 
Restructuring Act of 1994, is an employee of the State-owned 
railroad; 
"(B) has 20 years or more of service (in the civil service 
as a Federal employee or as an employee of the State-owned 
railroad, combined) on the date of retirement from the State-
owned railroad; and 
"(C)(i) was covered under a life insurance policy pursuant 
to chapter 87 of title 5, United States Code, on January 4, 
1985, for the purpose of electing life insurance coverage under 
the provisions of paragraph (1); or 
"(ii) was enrolled in a health benefits plan pursuant to 
chapter 89 of title 5, United States Code, on January 4, 1985, 
for the purpose of enrolling in a health benefits plan under 
the provisions of paragraph (1). 
"(3) For purposes of this section, any person described under 
the provisions of paragraph (2) shall be deemed to have been 
covered under a life insurance policy imder chapter 87 of title 
5, United States Code, and to have been enrolled in a health 
benefits plan under chapter 89 of title 5, United States Code, 
during the period beginning on January 5, 1985, through the date 
of retirement of any such person. 
108 STAT. 124 
PUBLIC LAW 103-226—MAR. 30, 1994 
"(4) The provisions of paragraph (1) shall not apply to any 
person described under paragraph (2) until the date such person 
retires from the State-owned railroad.". 
Approved March 30, 1994. 
LEGISLATIVE HISTORY—H.R. 3345 (S. 1535): 
HOUSE REPORTS: Nos. 103-386 (Comm. on Post Office and Civil Service) and 
103-435 (Comm. of Conference). 
SENATE REPORTS: No. 103-223 accompanying S. 1535 (Comm. on Governmental 
Affairs). 
CONGRESSIONAL RECORD, Vol. 140 (1994): 
Feb. 10, considered and passed House. 
Feb. 11, considered and passed Senate, amended. 
Mar. 11, Senate concurred in House amendment with an amendment. 
Mar. 23, House agreed to conference report. 
Mar. 24, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 30 (1994): 
Mar. 30, Presidential statement.