[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3345 Engrossed Amendment House (EAH)]

103d CONGRESS

  2d Session

                               H. R. 3345

_______________________________________________________________________

                               AMENDMENT

                                   TO

                            SENATE AMENDMENT
                In the House of Representatives, U. S.,

                                                         March 8, 1994.
      Resolved, That the House agree to the amendment of the Senate to 
the bill (H.R. 3345) entitled ``An Act to provide temporary authority 
to Government agencies relating to voluntary separation incentive 
payments, and for other purposes'', with the following

                               AMENDMENT:

        In lieu of the matter inserted by said amendment, insert:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Workforce Restructuring 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 
        achieving 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 achieving an agency's mission and 
                        performance goals by improving employee and 
                        organizational performance, the head of each 
                        agency, in conformity with this chapter, 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 
        training 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 ``determines 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 follows through the period and 
                        inserting ``such training.'';
            (3) in section 4105--
                    (A) in subsection (a) by striking ``(a)''; and
                    (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:
``Sec. 4107. Restriction on degree training'';
                    (B) by striking subsections (a) and (b) and 
                redesignating subsections (c) and (d) as subsections 
                (a) and (b), respectively;
                    (C) by amending subsection (a) (as so 
                redesignated)--
                            (i) by striking ``subsection (d)'' and 
                        inserting ``subsection (b)''; and
                            (ii) by striking ``by, in, or through a 
                        non-Government 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 provided in a manner which is in compliance with 
        applicable laws intended to protect or promote equal employment 
        opportunity; 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 
                subsections (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.''.
    (c) Effective Date.--The amendments made by this section shall 
become effective on the date of enactment of this Act.

SEC. 3. VOLUNTARY SEPARATION INCENTIVES.

    (a) Definitions.--For the purpose of this section--
            (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 
        Intelligence 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 
                Government; 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, 
        reorganization, transfer of function, or other similar action, 
        and subject to paragraph (2), the head of an agency may pay, or 
        authorize the payment of, voluntary separation incentive 
        payments 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 
                payment, 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 agency'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 separation 
incentive payment--
            (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;
            (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 voluntary 
        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 
                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.
                    (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).
    (f) Employees of the Judicial Branch.--The Director of the 
Administrative Office of the United States Courts may, by regulation, 
establish a program consistent with the program established by 
subsections (a) through (d) for individuals serving in the judicial 
branch.

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 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 under 
                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 payments 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 by
                    (B) $80.
            (2) Definition.--For the purpose of this subsection, 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.
    (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 POSITIONS.

    (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, 
through the Office of Management and Budget (in consultation with the 
Office of Personnel Management), shall ensure that the total number of 
full-time equivalent positions in all agencies 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 Management, 
shall--
            (1) continuously monitor all agencies and make a 
        determination 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 
        determination 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 
                environment 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 mission so requires.
                    (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.
    (f) 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 (a)-(e). For 
        purposes 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.
    (g) Limitation on Procurement of Service Contracts.--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. SUBSEQUENT EMPLOYMENT AND REPAYMENT OF SEPARATION PAYMENT.

    (a) Defense Agency Separation Pay.--Section 5597 of title 5, United 
States Code, is amended by adding at the end the following:
    ``(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 required to repay the entire amount of 
the separation pay to the defense agency that paid the separation pay.
    ``(2) If the employment is with an Executive agency, 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.
    ``(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 unique 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 
repayment 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 Pay Act (Public 
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 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 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 involved 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. 7. 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--
            (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 
employment.'';
            (2) by striking paragraphs (5), (6), and (8);
            (3) by redesignating paragraphs (7), (9), and (10) as 
        paragraphs (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 
        paragraph (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, any employee or Member 
who separates from Government employment is entitled and may elect--'';
            (2) by striking subsections (c) and (d) and redesignating 
        subsections (e) through (i) as subsections (c) through (g), 
        respectively;
            (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 
                paragraphs (2) and (3) as paragraphs (1) and (2), 
                respectively; and
                    (B) in paragraph (1) (as so redesignated by 
                subparagraph (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 subsection (b), if an 
                        employee or Member separates from 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 
                subparagraph (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), 
        (b)(2), (c)(1), or (c)(2)'' and inserting ``subsection (b)(3) 
        or (b)(4) 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 
        subsections (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 
                subsection (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--
            (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 (b)(4)(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 
                magistrate retires under circumstances making such 
                bankruptcy 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 
        subsection (a)(3) of this section) by striking ``section 
        8433(i)'' and inserting ``section 8433(g)'';
            (2) in section 8351(b)(5)(D) (as so redesignated by 
        subsection (a)(3) 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)'';
            (4) in section 8433(d)(1) (as so redesignated by subsection 
        (b)(2) of this section) by striking ``(d) of section 8435'' and 
        inserting ``(c) of section 8435'';
            (5) in section 8433(d)(2) (as so redesignated by subsection 
        (b)(2) 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(d)(2)'' and 
        inserting ``section 8435(c)(2)'';
            (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)(1)(B) (as so redesignated by 
        subsection (d)(3) of this section) by striking ``subsection 
        (d)(2)'' and inserting ``subsection (c)(2)'';
            (11) in section 8435(d)(3)(A) (as so redesignated by 
        subsection (d)(3) of this section) by striking ``subsection 
        (c)(1)'' and inserting ``subsection (b)(1)'';
            (12) in section 8435(d)(6) (as so redesignated by 
        subsection (d)(3) of this section) by striking ``or (c)(2)'' 
        and inserting ``or (b)(2)'';
            (13) in section 8435(e)(1)(A) (as so redesignated by 
        subsection (d)(3) of this section) by striking ``section 
        8433(i)'' and inserting ``section 8433(g)'';
            (14) in section 8435(e)(2) (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 (d)(1)'' 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(c)(5) by striking ``section 8433(i)'' 
        and inserting ``section 8433(g)''; and
            (17) in section 8440a(b)(6) by striking ``section 
        8351(b)(7)'' and inserting ``section 8351(b)(5)''.
    (j) Effective Date.--This section shall take effect 1 year after 
the date of the enactment of this Act or on such earlier date as the 
Executive Director of the Federal Retirement Thrift Investment Board 
shall provide in regulation.

SEC. 8. 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:
            ``(4)(A) The State-owned railroad shall be included in the 
        definition of `agency' 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 incentive 
        program established under such Act. Any employee of 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 employment 
        with the State-owned railroad within 5 years after the date of 
        separation on which payment of the incentive is based shall be 
        required to repay the entire amount of the incentive payment 
        unless the head of the State-owned railroad determines 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 under chapter 87 of title 5, United States 
Code, and to have been enrolled in a health benefits plan under chapter 
89 of title 5, United States Code, during the period beginning on 
January 5, 1985, through the date of retirement of any such person.
    ``(4) The provisions of paragraph (1) shall not apply to any person 
described under paragraph (2) until the date such person retires from 
the State-owned railroad.''.

            Attest:






                                                                 Clerk.

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