[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2978 Introduced in House (IH)]

  2d Session
                                H. R. 2978

To amend chapters 83 and 84 of title 5, United States Code, to provide 
   for measures to preserve the value of deferred annuities over the 
period of the time between separation from Government service and when 
               payments commence, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 27, 1996

  Mr. Moran introduced the following bill; which was referred to the 
              Committee on Government Reform and Oversight

_______________________________________________________________________

                                 A BILL


 
To amend chapters 83 and 84 of title 5, United States Code, to provide 
   for measures to preserve the value of deferred annuities over the 
period of the time between separation from Government service and when 
               payments commence, 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. DEFERRED ANNUITIES UNDER THE CIVIL SERVICE RETIREMENT 
              SYSTEM.

    (a) In General.--Section 8338 of title 5, United States Code, is 
amended by adding at the end the following:
    ``(e)(1) Notwithstanding any other provision of this subchapter, in 
computing the annuity of an employee or Member who retires under this 
section, average pay shall be equal to the average pay which (but for 
this subsection) would otherwise apply, increased in the manner set 
forth in subparagraph (B) of section 8340(g)(1) with respect to 
(instead of the period described in such subparagraph) the period--
            ``(A) beginning on the date of separation on which title to 
        such annuity is based, and
            ``(B) ending on the annuity commencement date.
    ``(2) If the employee or Member dies after such date of separation 
but before having established a valid claim for such annuity, any 
survivor annuity payable to a widow, widower, or former spouse, based 
on the service of such employee or Member, shall be computed in 
conformance with paragraph (1), except that the date used for purposes 
of paragraph (1)(B) shall be the commencement date of the survivor 
annuity involved.''.
    (b) Conforming Amendment.--Section 8338(d) of such title is amended 
by striking the period and inserting ``, subject to subsection (e).''.
    (c) Coordination Provisions.--Regulations under section 4 shall 
include such provisions as may be necessary to ensure that sections 
8339(f) and 8340(g) of such title shall be applied in a manner 
consistent with the purposes of this section.

SEC. 2. DEFERRED ANNUITIES UNDER THE FEDERAL EMPLOYEES' RETIREMENT 
              SYSTEM.

    Section 8413 of title 5, United States Code, is amended by adding 
at the end the following:
    ``(c)(1) Notwithstanding any other provision of this chapter, in 
computing the annuity of an employee or Member who retires under this 
section or under section 8412(g), average pay shall be equal to the 
average pay which (but for this subsection) would otherwise apply, 
increased in the manner set forth in subparagraph (B) of section 
8340(g)(1) with respect to (instead of the period described in such 
subparagraph) the period--
            ``(A) beginning on the date of separation on which title to 
        such annuity is based, and
            ``(B) ending on the annuity commencement date.
    ``(2) If the employee or Member dies after such date of separation 
but before having established a valid claim for such annuity, any 
survivor annuity payable to a widow, widower, or former spouse, based 
on the service of such employee or Member, shall be computed in 
conformance with paragraph (1), except that the date used for purposes 
of paragraph (1)(B) shall be the commencement date of the survivor 
annuity involved.''.

SEC. 3. AMENDMENTS TO PROVIDE THAT THE SURVIVOR OF A FORMER EMPLOYEE 
              UNDER CSRS WHO DIES AFTER SEPARATING FROM SERVICE BUT 
              BEFORE THE COMMENCEMENT OF SUCH EMPLOYEE'S DEFERRED 
              ANNUITY SHALL BE ACCORDED THE SAME TREATMENT AS WOULD 
              APPLY IN THOSE SAME CIRCUMSTANCES UNDER FERS.

    (a) In General.--Subsection (f) of section 8341 of title 5, United 
States Code, is amended--
            (1) in the matter before paragraph (1) by striking ``If a'' 
        and inserting ``If an employee or'';
            (2) in paragraph (1)--
                    (A) by inserting ``employee or'' after ``the 
                deferred annuity of the''; and
                    (B) by inserting ``employee or'' after ``the day 
                after the'';
            (3) in the matter after paragraph (2) and before 
        subparagraph (A) by striking ``surviving spouse of a'' and 
        inserting ``surviving spouse of an employee or''; and
            (4) in subparagraph (B) by inserting ``employee or'' after 
        ``surviving spouse of such''.
    (b) Conforming Amendment.--Paragraph (1) of section 8341(h) of such 
title is amended by striking ``former Member who was separated from the 
service with title to a deferred annuity under section 8338(b)'' and 
inserting ``former employee or Member who was separated from the 
service with title to a deferred annuity under section 8338''.

SEC. 4. REGULATIONS.

    The Office of Personnel Management shall prescribe any regulations 
which may be necessary to carry out the purposes of this Act.

SEC. 5. EFFECTIVE DATE.

    The amendments made by this Act--
            (1) shall take effect on October 1st of the fiscal year 
        next beginning after the date of the enactment of this Act; and
            (2) shall not apply with respect to separations other than 
        those occurring on or after the date specified in paragraph 
        (1).
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