[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 509 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 509

            To protect the retirement security of Americans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 4, 1997

 Mr. Andrews introduced the following bill; which was referred to the 
   Committee on Education and the Workforce, and in addition to the 
  Committees on Ways and Means, Government Reform and Oversight, and 
  Transportation and Infrastructure, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
            To protect the retirement security of Americans.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Retirement 
Protection Act of 1997''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
    TITLE I--AMENDMENTS TO ERISA REPORTING AND DISCLOSURE PROVISIONS

Sec. 101. Requirement for annual report.
Sec. 102. Effective date.
            TITLE II--PUBLIC EMPLOYEE PENSION PLAN LIABILITY

Sec. 201.  Reporting and disclosure requirements.
Sec. 202.  Civil enforcement relating to public employee pension plans.
Sec. 203.  Review by qualified review boards of changes in employer 
                            contributions.
Sec. 204.  Effect on other laws.
Sec. 205.  Definitions and coverage.
Sec. 206.  Effective date.
                   TITLE III--WOMEN'S PENSION EQUITY

Sec. 301. Model spousal consent form and qualified domestic relations 
                            order.
Sec. 302. Extension of Tier II railroad retirement benefits to 
                            surviving former spouses pursuant to 
                            divorce agreements.
Sec. 303. Survivor annuities for widows, widowers, and former spouses 
                            of Federal employees who die before 
                            attaining age for deferred annuity under 
                            Civil Service Retirement System.
Sec. 304. Court orders relating to Federal retirement benefits for 
                            former spouses of Federal employees.
Sec. 305. Prevention of circumvention of court order by waiver of 
                            retired pay to enhance civil service 
                            retirement annuity.
                     TITLE IV--EMPLOYER REVERSIONS

Sec. 401. Increase in excise tax on reversions.
Sec. 402. Reversion report.

    TITLE I--AMENDMENTS TO ERISA REPORTING AND DISCLOSURE PROVISIONS

SEC. 101. REQUIREMENT FOR ANNUAL REPORT.

    (a) In General.--Section 104(b) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1024(b)) is amended to read as follows:
    ``(b)(1) Within 210 days after the close of each plan year, the 
administrator shall furnish to each participant, and to each 
beneficiary receiving benefits under the plan--
            ``(A) a copy of the statements and schedules, for such 
        plan, described in subparagraphs (A) and (B) of section 
        103(b)(3);
            ``(B) a report containing--
                    ``(i) a description of all investments and assets 
                of the plan, including their value;
                    ``(ii) the names and positions of all of the 
                trustees of the plan, and the time remaining before the 
                expiration of their term;
                    ``(iii) a description of the method of trustee 
                selection;
                    ``(iv) a description of any changes in investment 
                policy of the plan during the fiscal year; and
                    ``(v) an evaluation of the long-term solvency of 
                the plan, including the number of participants and 
                beneficiaries and a summary of their benefits, and a 
                projection of the amount of benefits expected to be 
                paid for the fifth, tenth, and fifteenth plan year 
                following the date of the publication of the report; 
                and
            ``(C) any other material (including the percentage 
        determined under section 103(d)(11)) as is necessary to fairly 
        summarize the latest annual report.
Such information shall be written and calculated to be understood by 
the average plan participant, and shall be sufficiently accurate and 
comprehensive to reasonably apprise such participants and beneficiaries 
of their rights and obligations under the plan.
    ``(2) The administrator shall make copies of the plan description 
and the latest annual report and the bargaining agreement, trust 
agreement, contract, or other instruments under which the plan was 
established or is operated available for examination by any plan 
participant or beneficiary in the principal office of the administrator 
and in such other places as may be necessary to make available all 
pertinent information to all participants (including such places as the 
Secretary may prescribe by regulations).
    ``(3) The administrator shall, upon written request of any 
participant or beneficiary, furnish a copy of the latest annual report, 
any terminal report, the bargaining agreement, trust agreement, 
contract, or other instruments under which the plan is established or 
operated. The administrator may make a reasonable charge to cover the 
cost of furnishing such complete copies. The Secretary may by 
regulation prescribe the maximum amount which will constitute a 
reasonable charge under the preceding sentence.''.
    (b) Conforming Amendments.--
            (1) Section 101(a) of such Act (29 U.S.C. 1021(a)) is 
        amended to read as follows--
    ``Sec. 101. (a) The administrator of each employee benefit plan 
shall cause to be furnished in accordance with section 104(b) to each 
participant covered under the plan and to each beneficiary who is 
receiving benefits under the plan the information described in sections 
104(b)(1) and 105(a) and (c).''.
            (2) Section 101(b) of such Act (29 U.S.C. 1021(b)) is 
        amended by striking paragraph (1) and redesignating paragraphs 
        (2), (3), (4), and (5), as paragraphs (1), (2), (3), and (4), 
        respectively.
            (3) Section 102(a)(1) of such Act (29 U.S.C. 1022(a)(1)) is 
        amended to read as follows:
    ``Sec. 102. (a)(1) A report shall be furnished to participants and 
beneficiaries as provided in section 104(b).''.
            (4) Section 102(b) of such Act (29 U.S.C. 1022(b)) is 
        amended by striking ``and summary plan description'' and 
        inserting ``report''.
            (5) Section 103(a)(3)(A) of such Act (29 U.S.C. 1023 
        (a)(3)(A)) is amended in the second sentence by striking 
        ``104(b)(3)'' and inserting ``104(b)(1)(A) and (C)''.
            (6) Section 104(a)(1)(C) of such Act (29 U.S.C. 
        1024(a)(1)(C)) is amended to read as follows:
            ``(C) a copy of the materials required to be furnished to 
        participants and beneficiaries pursuant to subsection (b)(1) of 
        this section; and''.

SEC. 102. EFFECTIVE DATE.

    The amendments made by this title shall apply with respect to plan 
years beginning on or after January 1, 1997.

                TITLE II--PUBLIC EMPLOYEE PENSION PLANS

SEC. 201. REPORTING AND DISCLOSURE REQUIREMENTS.

    (a) In General.--Within 210 days after the close of each plan year, 
the administrator of each public employee pension plan shall furnish to 
each participant, and to each beneficiary receiving benefits under the 
plan--
            (1) a statement of the assets and liabilities of the plan 
        aggregated by categories and valued at their current value, and 
        the same data displayed in comparative form for the end of the 
        previous plan year;
            (2) a statement of receipts and disbursements during the 
        preceding 12-month period aggregated by general sources and 
        applications;
            (3) a report containing--
                    (A) a description of all investments and assets of 
                the plan, including their value;
                    (B) the names and positions of all of the trustees 
                of the plan, and the time remaining before the 
                expiration of their term;
                    (C) a description of the method of trustee 
                selection;
                    (D) a description of any changes in investment 
                policy of the plan during the fiscal year;
                    (E) an evaluation of the long-term solvency of the 
                plan, including the number of participants and 
                beneficiaries and a summary of their benefits, and a 
                projection of the amount of benefits expected to be 
                paid for the fifth, tenth, and fifteenth plan year 
                following the date of the publication of the report; 
                and
                    (F) the percentage which the current value of the 
                assets of the plan is of the current liability under 
                the plan; and
            (4) any other material as is necessary to fairly summarize 
        the latest annual report.
Such information shall be written and calculated to be understood by 
the average plan participant, and shall be sufficiently accurate and 
comprehensive to reasonably apprise such participants and beneficiaries 
of their rights and obligations under the plan.
    (b) Availability of Plan Documents for Examination.--The 
administrator shall make copies of the plan description and the latest 
annual report and the bargaining agreement, trust agreement, contract, 
or other instruments under which the plan was established or is 
operated available for examination by any plan participant or 
beneficiary in the principal office of the administrator and in such 
other places as may be necessary to make available all pertinent 
information to all participants (including such places as the Secretary 
of Labor may prescribe by regulations).
    (c) Availability of Information Upon Request.--The administrator 
shall, upon written request of any participant or beneficiary, furnish 
a copy of the latest annual report, any terminal report, the bargaining 
agreement, trust agreement, contract, or other instruments under which 
the plan is established or operated. The administrator may make a 
reasonable charge to cover the cost of furnishing such complete copies. 
The Secretary of Labor may by regulation prescribe the maximum amount 
which will constitute a reasonable charge under the preceding sentence.

SEC. 202. CIVIL ENFORCEMENT OF PUBLIC EMPLOYEE PENSION PLAN TERMS.

    (a) In General.--A civil action may be brought, by a participant or 
beneficiary under a public employee pension plan, against the plan--
            (1) to recover benefits due to him or her under the terms 
        of the plan, to enforce his or her rights under the terms of 
        the plan or this title, or to clarify his or her rights to 
        future benefits under the terms of the plan;
            (2) to enjoin any act or practice which violates the terms 
        of the plan, or
            (3) to obtain other appropriate equitable relief (A) to 
        redress violations of the terms of the plan or this title or 
        (B) to enforce the terms of the plan or this title.
    (b) Burden of Proof.--
            (1) In general.--Except as provided in paragraph (2), in 
        any action brought under this section, the plaintiff may 
        prevail if the plaintiff proves his or her case by a 
        preponderance of the evidence.
            (2) Special rule for plans subject to review by qualified 
        review boards.--In the case of a public employee pension plan 
        which meets the requirements of section 203 in any action 
        brought under this section relating to a change in employer 
        contributions, the plaintiff may prevail only if the plaintiff 
        proves his or her case by clear and convincing evidence.
    (c) Plans Treated as Persons.--A public employee pension plan may 
sue or be sued under this title as a person. Service of summons, 
subpoena, or other legal process of a court upon a trustee or an 
administrator of a public employee pension plan in the trustee's or 
administrator's capacity as such shall constitute service upon the 
plan.
    (d) Jurisdiction and Venue.--
            (1) In general.--State courts of competent jurisdiction and 
        district courts of the United States shall have concurrent 
        jurisdiction of actions brought under this section. The 
        district courts of the United States shall have jurisdiction 
        without regard to the amount in controversy or the citizenship 
        of the parties, to grant the relief provided for in subsection 
        (a).
            (2) Venue.--Notwithstanding section 94 of the National 
        Banking Act (12 U.S.C. 94), in any case in which an action 
        under this title is brought in a district court of the United 
        States, it may be brought in any district of the State where 
        the plan is administered, where the breach took place, or where 
        a defendant resides or may be found, and process may be served 
        in any other district where a defendant resides or may be 
        found.
    (e) Attorney's Fees.--In any action brought under this section, the 
court may in its discretion award a reasonable attorney's fee and costs 
of action to any party who prevails or substantially prevails in such 
action.

SEC. 203. REVIEW BY QUALIFIED REVIEW BOARDS OF CHANGES IN EMPLOYER 
              CONTRIBUTIONS.

    (a) In General.--A public employee pension plan meets the 
requirements of this section if, under the plan, changes in employer 
contributions are subject to review by a qualified review board 
established for the plan as provided in this section. For purposes of 
this section, the term ``qualified review board'' means a board--
            (1) whose membership is determined under the law of the 
        principal State in accordance with subsection (b), and
            (2) whose powers are determined under the law of the 
        principal State in accordance with subsection (c).
    (b) Membership.--
            (1) In general.--The membership of a qualified review board 
        established for a plan shall consist of 3 members selected from 
        among individuals who, by means of their education and 
        experience, have demonstrated expertise in the area of pension 
        fund management, as follows:
                    (A) one member is appointed by the Governor of the 
                State,
                    (B) one member is selected by the participants in 
                the plan, by means of an election held in such form and 
                manner as shall be prescribed in regulations of the 
                Secretary of Labor, and
                    (C) one member is selected jointly by the Governor 
                and by a representative of participants in the plan 
                (from a certified list of pension experts established 
                in accordance with paragraph (2)).
        Each member of the board shall have 1 vote. Members of the 
        board shall serve for such equivalent terms as shall be 
        prescribed under the law of the principal State.
            (2) Certified list of experts.--The Governor of the State 
        shall, for purposes of paragraph (1)(C), establish and maintain 
        with respect to each public employee pension plan (for which 
        such State is the principal State) a certified list of pension 
        experts meeting the requirements for membership on the 
        qualified review board. Individuals may be included on such 
        list only by agreement between the Governor of the State and a 
        representative elected by participants in the plan, entered 
        into by means of collective bargaining in such form and manner 
        as shall be prescribed in regulations of the Secretary of 
        Labor.
    (c) Powers.--The board shall be treated as a qualified review board 
for purposes of this section with respect to any public employee 
pension plan (for which such State is the principal State) only if the 
powers of such board under the law of the principal State include 
review by the board, for approval or disapproval by the board, of any 
change in the terms of such plan, as a necessary prerequisite for such 
change to take effect, if--
            (1) such change would have the effect of changing levels of 
        employer contributions to the plan, and
            (2) such review is requested, in such form and manner as 
        shall be prescribed in regulations of the Secretary of Labor, 
        by--
                    (A) at least one-third of the total number of 
                trustees of any trust fund forming a part of the plan, 
                or
                    (B) the head of any employee organization 
                representing at least 20 percent of the total number of 
                active participants in the plan.
The board may be treated as a qualified review board for purposes of 
this section only if, under the law of the principal State, any such 
change submitted to such review by the board may take effect only upon 
approval of the change by the board.

SEC. 204. EFFECT ON OTHER LAWS.

    (a) In General.--Nothing in this title shall be construed to alter, 
amend, modify, invalidate, impair, or supersede any law of a State or 
any rule or regulation issued under any such law, except to the extent 
that such law--
            (1) may now or hereafter relate to the subject matter of 
        the provisions of this title as they apply to any public 
        employee pension plan described in section 205(b)(1) and not 
        exempt under section 205(b)(2), and
            (2) prevents the application of such provisions.
    (b) State Causes of Action Preserved.--Nothing in this title shall 
be construed to apply with respect to State causes of action available 
in State courts.

SEC. 205. DEFINITIONS AND COVERAGE.

    (a) Definitions.--For purposes of this title--
            (1) Administrator.--The term ``administrator'' means--
                    (A) the board of trustees, retirement board, or 
                similar person with administrative responsibilities in 
                connection with a plan, or any other person 
                specifically so designated in connection with any 
                requirement of this title by the terms of the 
                instrument or instruments under which the plan is 
                operated, including but not limited to the law of any 
                State or of any political subdivision of any State, or
                    (B) in any case in which there is no person 
                described in subparagraph (A) in connection with the 
                plan, the plan sponsor.
            (2) Beneficiary.--The term ``beneficiary'' means a person 
        designated by a participant, or by the terms of a public 
        employee pension plan, who is or may become entitled to a 
        benefit thereunder.
            (3) Current liability.--The term ``current liability'' has 
        the meaning provided in section 302(d)(7) of the Employee 
        Retirement Income Security Act of 1974.
            (4) Employee.--The term ``employee'' means any individual 
        employed by an employer, employer representative, or other 
        person required to make employer contributions under the plan.
            (5) Employee organization.--The term ``employee 
        organization'' means any labor union or any organization of any 
        kind, or any agency or employee representation committee, 
        association, group, or plan, in which employees participate and 
        which exists for the purpose, in whole or in part, of dealing 
        with employers or employer representatives concerning a public 
        employee pension plan or other matters incidental to employment 
        relationships; or any employees' beneficiary association 
        organized for the purpose, in whole or in part, of establishing 
        such a plan.
            (6) Employer.--The term ``employer'' means--
                    (A) the government of any State or of any political 
                subdivision of a State,
                    (B) any agency or instrumentality of a government 
                referred to in subparagraph (A), or
                    (C) any agency or instrumentality of two or more 
                governments referred to in subparagraph (A).
            (7) Employer contribution.--The term ``employer 
        contribution'' means any contribution to a public employee 
        pension plan other than a contribution made by a participant in 
        the plan.
            (8) Employer representative.--The term ``employer 
        representative'' means--
                    (A) any group or association consisting, in whole 
                or in part, of employers acting, in connection with a 
                public employee pension plan, for an employer, or
                    (B) any person acting, in connection with a public 
                employee pension plan, indirectly in the interest of an 
                employer or of a group or association described in 
                subparagraph (A).
            (9) Public employee pension plan.--The terms ``public 
        employee pension plan'' and ``plan'' mean any plan, fund, or 
        program which was heretofore or is hereafter established or 
        maintained, in whole or in part, by an employer, an employer 
        representative, or an employee organization, or by a 
        combination thereof, to the extent that by its express terms or 
        as a result of surrounding circumstances such plan, fund, or 
        program--
                    (A) provides retirement income to employees, or
                    (B) results in a deferral of income by employees 
                for periods extending to the termination of covered 
                employment or beyond,
        regardless of the method of calculating the contributions made 
        to the plan, the method of calculating the benefits under the 
        plan, or the method of distributing benefits from the plan.
            (10) Principal state.--The term ``principal State'' means, 
        for any plan year with respect to a public employee pension 
        plan, the State in which, as of the beginning of such plan 
year, the largest percentage of the participants of the plan employed 
in any single State is employed.
            (11) Governor.--The term ``Governor'' means, in connection 
        with a public employee pension plan, the Governor (or 
        equivalent official) of the principal State.
            (12) Participant.--The term ``participant'' means any 
        individual who is or may become eligible to receive a benefit 
        of any type from a public employee pension plan or whose 
        beneficiaries may be eligible to receive any such benefit.
            (13) Person.--The term ``person'' means a State, a 
        political subdivision of a State, any agency or instrumentality 
        of a State or a political subdivision of a State, an 
        individual, a partnership, a joint venture, a corporation, a 
        mutual company, a joint-stock company, a trust, an estate, an 
        unincorporated organization, an association, or an employee 
        organization.
            (14) Plan sponsor.--The term ``plan sponsor'' means--
                    (A) in the case of a plan established or maintained 
                solely for employees of a single employer, such 
                employer,
                    (B) in the case of a plan established or maintained 
                by an employee organization, the employee organization, 
                or
                    (C) in the case of a plan established or maintained 
                by two or more employers or jointly by one or more 
                employers and one or more employee organizations, the 
                association, committee, board of trustees, or other 
                similar group of representatives of the parties who 
                establish or maintain the plan.
            (15) Plan year.--The term ``plan year'' means, with respect 
        to a plan, the calendar, policy, or fiscal year on which the 
        records of the plan are kept.
            (16) State.--The term ``State'' means any State of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Virgin Islands, American Samoa, and Guam.
    (b) Coverage.--
            (1) In general.--Except as provided in paragraph (2), this 
        title shall apply to any public employee pension plan.
            (2) Exceptions from coverage.--The provisions of this title 
        shall not apply to--
                    (A) any employee benefit plan described in section 
                4(a) of the Employee Retirement Income Security Act of 
                1974 (29 U.S.C. 1003(a)), which is not exempt under 
                section 4(b)(1) of such Act (29 U.S.C. 1003(b)(1));
                    (B) any plan which is unfunded and is maintained by 
                an employer or employer representative primarily for 
                the purpose of providing deferred compensation for a 
                select group of management or highly compensated 
                employees;
                    (C) any arrangement which would be a severance pay 
                arrangement, as defined in regulations of the Secretary 
                of Labor under section 3(2)(B)(i) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1002(2)(B)(i)), if the employer were an employer within 
                the meaning of section 3(5) of such Act (29 U.S.C. 
                1002(5));
                    (D) any agreement to the extent it is a coverage 
                agreement entered into pursuant to section 218 of the 
                Social Security Act (42 U.S.C. 418);
                    (E) any individual retirement account or any 
                individual retirement annuity within the meaning of 
                section 408 of the Internal Revenue Code of 1986, or a 
                retirement bond within the meaning of section 409 of 
                such Code;
                    (F) any plan described in section 401(d) of such 
                Code;
                    (G) any individual account plan consisting of an 
                annuity contract described in section 403(b) of such 
                Code;
                    (H) any eligible State deferred compensation plan, 
                as defined in section 457(b) of such Code; or
                    (I) any plan maintained solely for the purpose of 
                complying with applicable workers' compensation laws or 
                disability insurance laws.

SEC. 206. EFFECTIVE DATE.

    The preceding provisions of this title shall apply with respect to 
plan years beginning on or after January 1, 1997.

                   TITLE III--WOMEN'S PENSION EQUITY

SEC. 301. MODEL SPOUSAL CONSENT FORM AND QUALIFIED DOMESTIC RELATIONS 
              ORDER.

    (a) Model Spousal Consent Form.--
            (1) Amendment to internal revenue code.--Section 417(a) of 
        the Internal Revenue Code of 1986 is amended by adding at the 
end the following new paragraph:
            ``(7) Consent form.--The Secretary shall develop a form not 
        later than January 1, 1997, for the spousal consent required 
        under paragraph (2) which--
                    ``(A) is written in a manner calculated to be 
                understood by the average person, and
                    ``(B) discloses in plain form whether--
                            ``(i) the waiver is irrevocable, and
                            ``(ii) the waiver may be revoked by a 
                        qualified domestic relations order.''.
            (2) Amendment to erisa.--Section 205(c) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1055(c)) is 
        amended by adding at the end the following new paragraph:
            ``(8) The Secretary of the Treasury shall develop a form 
        not later than January 1, 1997, for the spousal consent 
        required under paragraph (2) which--
                    ``(A) is written in a manner calculated to be 
                understood by the average person, and
                    ``(B) discloses in plain form whether--
                            ``(i) the waiver is irrevocable, and
                            ``(ii) the waiver may be revoked by a 
                        qualified domestic relations order.''.
    (b) Model Qualified Domestic Relations Order.--
            (1) Amendment to erisa.--Section 206(d)(3) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1056(d)(3)) 
        is amended by adding at the end the following new subparagraph:
    ``(O) The Secretary shall develop a form not later than January 1, 
1997, for a qualified domestic relations order which meets--
            ``(i) the requirements of subparagraph (B)(i), and
            ``(ii) the requirements of this Act related to the need to 
        consider the treatment of any lump sum payment, qualified joint 
        and survivor annuity, or qualified preretirement survivor 
        annuity.''.
            (2) Amendment to internal revenue code.--Section 414(p) of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new paragraph:
            ``(13) The Secretary of Labor shall develop a form not 
        later than January 1, 1997, for a qualified domestic relations 
        order which meet--
                    ``(A) the requirements of paragraph (1)(A), and
                    ``(B) the requirements of this Act related to the 
                need to consider the treatment of any lump sum payment, 
                qualified joint and survivor annuity, or qualified 
                preretirement survivor annuity.''.
    (c) Publicity.--The Secretary of the Treasury and the Secretary of 
Labor shall include publicity for the model forms required by the 
amendments made by this section in the pension outreach efforts 
undertaken by each Secretary.

SEC. 302. EXTENSION OF TIER II RAILROAD RETIREMENT BENEFITS TO 
              SURVIVING FORMER SPOUSES PURSUANT TO DIVORCE AGREEMENTS.

    (a) In General.--Section 5 of the Railroad Retirement Act of 1974 
(45 U.S.C. 231d) is amended by adding at the end the following new 
subsection:
    ``(d) Notwithstanding any other provision of law, the payment of 
any portion of an annuity computed under section 3(b) to a surviving 
former spouse in accordance with a court decree of divorce, annulment, 
or legal separation or the terms of any court-approved property 
settlement incident to any such court decree shall not be terminated 
upon the death of the individual who performed the service with respect 
to which such annuity is so computed unless such termination is 
otherwise required by the terms of such court decree.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 303. SURVIVOR ANNUITIES FOR WIDOWS, WIDOWERS, AND FORMER SPOUSES 
              OF FEDERAL EMPLOYEES WHO DIE BEFORE ATTAINING AGE FOR 
              DEFERRED ANNUITY UNDER CIVIL SERVICE RETIREMENT SYSTEM.

    (a) Benefits for Widow or Widower.--Section 8341(f) of title 5, 
United States Code, is amended--
            (1) in the matter preceding paragraph (1) by--
                    (A) by inserting ``a former employee separated from 
                the service with title to deferred annuity from the 
                Fund dies before having established a valid claim for 
                annuity and is survived by a spouse, or if'' before ``a 
                Member''; and
                    (B) by inserting ``of such former employee or 
                Member'' after ``the surviving spouse'';
            (2) in paragraph (1)--
                    (A) by inserting ``former employee or'' before 
                ``Member commencing''; and
                    (B) by inserting ``former employee or'' before 
                ``Member dies''; and
            (3) in the undesignated sentence following paragraph (2)--
                    (A) in the matter preceding subparagraph (A) by 
                inserting ``former employee or'' before ``Member''; and
                    (B) in subparagraph (B) by inserting ``former 
                employee or'' before ``Member''.
    (b) Benefits for Former Spouse.--Section 8341(h) of title 5, United 
States Code, is amended--
            (1) in paragraph (1) by adding after the first sentence 
        ``Subject to paragraphs (2) through (5) of this subsection, a 
        former spouse of a former employee who dies after having 
        separated from the service with title to a deferred annuity 
        under section 8338(a) but before having established a valid 
        claim for annuity is entitled to a survivor annuity under this 
        subsection, if and to the extent expressly provided for in an 
        election under section 8339(j)(3) of this title, or in the 
        terms of any decree of divorce or annulment or any court order 
        or court-approved property settlement agreement incident to 
        such decree.''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)(ii) by striking ``or 
                annuitant,'' and inserting ``annuitant, or former 
                employee''; and
                    (B) in subparagraph (B)(iii) by inserting ``former 
                employee or'' before ``Member''.
    (c) Protection of Survivor Benefit Rights.--Section 8339(j)(3) of 
title 5, United States Code, is amended by inserting at the end the 
following:
    ``The Office shall provide by regulation for the application of 
this subsection to the widow, widower, or surviving former spouse of a 
former employee who dies after having separated from the service with 
title to a deferred annuity under section 8338(a) but before having 
established a valid claim for annuity.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply only in 
the case of a former employee who dies on or after such date.

SEC. 304. COURT ORDERS RELATING TO FEDERAL RETIREMENT BENEFITS FOR 
              FORMER SPOUSES OF FEDERAL EMPLOYEES.

    (a) Civil Service Retirement System.--
            (1) In general.--Section 8345(j) of title 5, United States 
        Code, is amended--
                    (A) by redesignating paragraph (3) as paragraph 
                (4); and
                    (B) by inserting after paragraph (2) the following 
                new paragraph:
    ``(3) Payment to a person under a court decree, court order, 
property settlement, or similar process referred to under paragraph (1) 
shall include payment to a former spouse of the employee, Member, or 
annuitant.''.
            (2) Lump-sum benefits.--Section 8342 of title 5, United 
        States Code, is amended--
                    (A) in subsection (c) by striking ``Lump-sum 
                benefits'' and inserting ``Subject to subsection (j), 
                lump-sum benefits''; and
                    (B) in subsection (j)(1) by striking ``the lump-sum 
                credit under subsection (a) of this section'' and 
                inserting ``any lump-sum credit or lump-sum benefit 
                under this section''.
    (b) Federal Employees Retirement System.--Section 8467 of title 5, 
United States Code, is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Payment to a person under a court decree, court order, 
property settlement, or similar process referred to under subsection 
(a) shall include payment to a former spouse of the employee, Member, 
or annuitant.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 305. PREVENTION OF CIRCUMVENTION OF COURT ORDER BY WAIVER OF 
              RETIRED PAY TO ENHANCE CIVIL SERVICE RETIREMENT ANNUITY.

    (a) Civil Service Retirement and Disability System.--(1) Subsection 
(c) of section 8332 of title 5, United States Code, is amended by 
adding at the end the following:
    ``(4) If an employee or Member waives retired pay that is subject 
to a court order for which there has been effective service on the 
Secretary concerned for purposes of section 1408 of title 10, the 
military service on which the retired pay is based may be credited as 
service for purposes of this subchapter only if, in accordance with 
regulations prescribed by the Director of the Office of Personnel 
Management, the employee or Member authorizes the Director to deduct 
and withhold from the annuity payable to the employee or Member under 
this subchapter, and to pay to the former spouse covered by the court 
order, the same amount that would have been deducted and withheld from 
the employee's or Member's retired pay and paid to that former spouse 
under such section 1408.''.
    (2) Paragraph (1) of such subsection is amended by striking out 
``Except as provided in paragraph (2)'' and inserting ``Except as 
provided in paragraphs (2) and (4)''.
    (b) Federal Employees' Retirement System.--(1) Subsection (c) of 
section 8411 of title 5, United States Code, is amended by adding at 
the end the following:
    ``(5) If an employee or Member waives retired pay that is subject 
to a court order for which there has been effective service on the 
Secretary concerned for purposes of section 1408 of title 10, the 
military service on which the retired pay is based may be credited as 
service for purposes of this chapter only if, in accordance with 
regulations prescribed by the Director of the Office of Personnel 
Management, the employee or Member authorizes the Director to deduct 
and withhold from the annuity payable to the employee or Member under 
this subchapter, and to pay to the former spouse covered by the court 
order, the same amount that would have been deducted and withheld from 
the employee's or Member's retired pay and paid to that former spouse 
under such section 1408.''.
    (2) Paragraph (1) of such subsection is amended by striking out 
``Except as provided in paragraph (2) or (3)'' and inserting ``Except 
as provided in paragraphs (2), (3), and (5)''.
    (c) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 1997.

                     TITLE IV--EMPLOYER REVERSIONS

SEC. 401. INCREASE IN EXCISE TAX ON REVERSIONS.

    (a) In General.--Section 4980 of the Internal Revenue Code of 1986 
(relating to tax on reversion of qualified plan assets to employer) is 
amended--
            (1) in subsection (a), by striking ``20 percent'' and 
        inserting ``35 percent''; and
            (2) in subsection (d)(1), by striking ``substituting `50 
        percent' for `20 percent' with respect to any employer 
        reversion'' and inserting ``substituting `65 percent' for `35 
        percent' with respect to any employer reversion''.

SEC. 402. REVERSION REPORT.

    (a) In General.--Section 4008 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1308) is amended by adding at the end 
the following new subsection:
    ``(b) Reversion Report.--As soon as practicable after the close of 
each fiscal year, the Secretary of Labor (acting in the Secretary's 
capacity as chairman of the corporation's board) shall transmit to the 
President and the Congress a report providing information on plans from 
which residual assets were distributed to employers pursuant to section 
4044(d).''
    (b) Conforming Amendment.--Section 4008 (29 U.S.C. 1308) is amended 
by striking ``Sec. 4008.'' and inserting ``Sec. 4008. (a) Annual 
Report.--''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fiscal years beginning after September 30, 1996.
                                 <all>