[Congressional Record Volume 140, Number 14 (Friday, February 11, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 11, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                          AMENDMENTS SUBMITTED

                                 ______


                        ROTH AMENDMENT NO. 1469

  Mr. DOLE (for Mr. Roth) proposed an amendment to the bill, H.R. 3345, 
to amend title 5, United States Code, to eliminate certain restrictions 
on employee training; to provide temporary authority to agencies 
relating to voluntary separation incentive payments, and for other 
purposes; as follows:
                   --FEDERAL WORKFORCE RESTRUCTURING

     SEC. 501. SHORT TITLE.

       This Act may be cited as the ``Federal Workforce 
     Restructuring Act of 1994''.

     SEC. 502. EMPLOYEE TRAINING.

       (a) In General.--Chapter 41 of title 5, United States Code, 
     is amended--
       (1) in section 4101(4) by striking out ``fields'' and all 
     that follows through the semicolon and inserting in lieu 
     thereof ``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) by striking out ``In'' and all that 
     follows through ``proficiency'' and inserting in lieu thereof 
     ``In order to assist in achieving an agency's mission and 
     performance goals by improving employee and organizational 
     performance''; and
       (B) in subsection (b)--
       (i) in paragraph (1) by striking out ``determines'' and all 
     that follows through the period and inserting in lieu thereof 
     ``determines that such training would be in the interests of 
     the Government.'';
       (ii) by striking out paragraph (2) and redesignating 
     paragraph (3) as paragraph (2); and
       (iii) in subparagraph (C) of paragraph (2) (as redesignated 
     under clause (ii) of this subparagraph) by striking out 
     ``retaining'' and all that follows through the period and 
     inserting in lieu thereof ``such training.'';
       (3) in section 4105--
       (A) in subsection (a) by striking out ``(a)''; and
       (B) by striking out subsections (b) and (c);
       (4) by repealing section 4106;
       (5) in section 4107--
       (A) by amending the section heading to read as follows:

     ``Sec. 4107. Restriction on degree training'';

       (B) by striking out subsections (a) and (b) and 
     redesignating subsections (c) and (d) as subsections (a) and 
     (b), respectively;
       (C) by amending subsection (a) (as redesignated under 
     subparagraph (B) of this paragraph)--
       (i) by striking out ``subsection (d)'' and inserting in 
     lieu thereof ``subsection (b)''; and
       (ii) by striking out ``by, in, or through a non-Government 
     facility''; and
       (D) by amending paragraph (1) of subsection (b) (as 
     redesignated under subparagraph (B) of this paragraph) by 
     striking out ``subsection (c)'' and inserting in lieu thereof 
     ``subsection (a)'';
       (6) in section 4108(a) by striking out ``by, in, or through 
     a non-Government facility under this chapter'' and inserting 
     in lieu thereof ``for more than a minimum period prescribed 
     by the head of the agency'';
       (7) in section 4113(b) by striking out all that follows the 
     first sentence;
       (8) by repealing section 4114; and
       (9) in section 4118--
       (A) in subsection (a)(7) by striking out ``by, in, and 
     through non-Government facilities'';
       (B) by striking out subsection (b); and
       (C) by redesignating subsections (c) and (d) as subsections 
     (b) and (c), respectively.
       (b) Technical and Conforming Amendments.--The table of 
     sections for chapter 41 of title 5, United States Code, is 
     amended--
       (1) by striking out the items relating to sections 4106 and 
     4114; and
       (2) 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 take effect on the date of enactment of this Act.

     SEC. 503. VOLUNTARY SEPARATION INCENTIVES.

       (a) Definitions.--For purposes of this section, the term--
       (1) ``agency'' means an Executive agency, as defined under 
     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) ``employee'' means an employee, as defined under 
     section 2105 of title 5, United States Code, of an agency, 
     serving under an appointment without time limitation, who has 
     been currently employed for a continuous period of at least 
     12 months, including 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 To Make Payment.--(1) In order to assist in 
     the restructuring of the Federal workforce while minimizing 
     involuntary separations, the head of an agency may pay, or 
     authorize the payment of, a voluntary separation incentive 
     payment to 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 the factors 
     described under subparagraphs (A) through (C).
       (2) In order to receive an incentive payment under 
     paragraph (1), an employee shall separate from service with 
     the agency (whether by retirement or resignation) during the 
     90-day period described under paragraph (3).
       (3) The head of an agency shall designate a continuous 90-
     day period for purposes of separation under this subsection 
     for such agency or any component thereof. Such 90-day period 
     shall begin no earlier than the date of the enactment of this 
     Act and shall end no later than March 31, 1995.
       (4) Notwithstanding the provisions of paragraphs (2) and 
     (3), an employee may receive an incentive payment under this 
     section and delay a separation from service if--
       (A) the agency head determines that it is necessary to 
     delay such employee's separation from service in order to 
     ensure the performance of the agency's mission; and
       (B) no later than 2 years after the date of the last day of 
     the 90-day period designated under paragraph (3), such 
     employee separates from service in the agency.
       (c) Voluntary Separation Incentive Payment.--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) Subsequent Employment and Repayment of Incentive 
     Payment.--(1) 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 of the date of the separation on which payment of the 
     incentive is based shall be required to repay the entire 
     amount of the incentive payment to the agency that paid the 
     incentive payment.
       (2) If the employment is with an Executive agency (as 
     defined under 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 employment is in a position for which there is 
     exceptional difficulty in recruiting a qualified employee.
       (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 employment is in a position for 
     which there is exceptional difficulty in recruiting a 
     qualified employee.
       (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 employment is in a 
     position for which there is exceptional difficulty in 
     recruiting a qualified employee.
       (e) Regulations.--The Director of the Office of Personnel 
     Management may prescribe any regulations necessary for the 
     administration of this section.
       (f) Judicial Branch Program.--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) of this section 
     for employees of the judicial branch.
       (g) Reduction of Full-Time Equivalent Positions.--(1) The 
     President or his designee shall take such action as he 
     determines necessary to ensure that, no later than September 
     30, 1995, employment in the executive branch is reduced by at 
     least 1 full-time equivalent position for each voluntary 
     separation incentive payment paid under this section.
       (2) No later than December 1, 1995, the President or his 
     designee shall report to the Congress on the implementation 
     of this subsection.
       (h) 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 section except in cases in 
     which a cost comparison demonstrates such contracts would be 
     to the financial advantage of the Federal Government.

     SEC. 504. 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 
     thereof the following new subsection:
       ``(g)(1) An employee who receives separation pay under this 
     section on the basis of a separation occurring on or after 
     the date of enactment of the Federal Workforce Restructuring 
     Act of 1994 and accepts employment with the Government of the 
     United States within 5 years of 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 (as 
     defined under 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 employment is in a position for which there is 
     exceptional difficulty in recruiting a qualified employee.
       ``(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 employment is in a 
     position for which there is exceptional difficulty in 
     recruiting a qualified employee.
       ``(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 employment is in a 
     position for which there is exceptional difficulty in 
     recruiting a qualified employee.''.
       (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 thereof 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 
     1993 and accepts employment with the Government of the United 
     States within 5 years of 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 under 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 employment is in a position for 
     which there is exceptional difficulty in recruiting a 
     qualified employee. 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 employment 
     is in a position for which there is exceptional difficulty in 
     recruiting a qualified employee. 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 employment is in a position for which there is 
     exceptional difficulty in recruiting a qualified employee.''.

     SEC. 505. FUNDING OF EARLY RETIREMENTS IN CIVIL SERVICE 
                   RETIREMENT SYSTEM.

       (a) In General.--Section 8334 of title 5, United States 
     Code, is amended by adding at the end thereof the following 
     new subsections:
       ``(l) In addition to any other payments required by this 
     subchapter, an agency shall remit to the Office for deposit 
     in the Treasury of the United States to the credit of the 
     Fund an amount equal to 9 percent of the final rate of basic 
     pay of each employee of the agency who retires under section 
     8336(d).
       ``(  ) * * * the Treasury of the United States to the 
     credit of the Civil Service Retirement and Disability Fund an 
     amount equal to 17 percent of the final basic pay of each 
     employee of the agency who receives a voluntary separation 
     incentive payment under this section and who is eligible, 
     upon separation, for an immediate annuity under subchapter 
     III of chapter 83 or chapter 84 of title 5, United States 
     Code.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to retirements occurring on or after 
     the date of the enactment of this Act.

     SEC. 506. REDUCTION OF FEDERAL FULL-TIME EQUIVALENT 
                   POSITIONS.

       (a) Definition.--For purposes of this section, the term 
     ``agency'' means an Executive agency as defined under 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) 2,095,182 during fiscal year 1994;
       (2) 2,044,100 during fiscal year 1995;
       (3) 2,003,846 during fiscal year 1996;
       (4) 1,963,593 during fiscal year 1997;
       (5) 1,923,339 during fiscal year 1998; and
       (6) 1,883,086 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.--Any provision of this section may be waived 
     upon--
       (1) a determination by the President of the existence of 
     war or a national emergency; or
       (2) the enactment of a joint resolution upon an affirmative 
     vote of three-fifths of the Members of each House of the 
     Congress duly chosen and sworn.

     SEC. 507. CREATION OF VIOLENT CRIME REDUCTION TRUST FUND.

       (a) Establishment of the Account.--Chapter 11 of title 31, 
     United States Code, is amended by inserting at the end 
     thereof the following new section:

     ``Sec. 1115. Violent crime reduction trust fund

       ``(a) There is established a separate account in the 
     Treasury, known as the `Violent Crime Reduction Trust Fund', 
     into which shall be deposited deficit reduction achieved by 
     section 1321B of the Violent Crime Control and Law 
     Enforcement Act of 1993 sufficient to fund that Act (as 
     defined in subsection (b) of this section).
       ``(b) On the first day of the following fiscal years (or as 
     soon thereafter as possible for fiscal year 1994), the 
     following amounts shall be transferred from the general fund 
     to the Violent Crime Reduction Trust Fund--
       ``(1) for fiscal year 1994, $720,000,000;
       ``(2) for fiscal year 1995, $2,423,000,000;
       ``(3) for fiscal year 1996, $4,267,000,000;
       ``(4) for fiscal year 1997, $6,313,000,000; and
       ``(5) for fiscal year 1998, $8,545,000,000.
       ``(c) Notwithstanding any other provision of law--
       ``(1) the amounts in the Violent Crime Reduction Trust Fund 
     may be appropriated exclusively for the purposes authorized 
     in the Violent Crime Control and Law Enforcement Act of 1993;
       ``(2) the amounts in the Violent Crime Reduction Trust Fund 
     and appropriations under paragraph (1) of this section shall 
     be excluded from, and shall not be taken into account for 
     purposes of, any budget enforcement procedures under the 
     Congressional Budget Act of 1974 or the Balanced Budget and 
     Emergency Deficit Control Act of 1985; and
       ``(3) for purposes of this subsection, `appropriations 
     under paragraph (1)' mean amounts of budget authority not to 
     exceed the balances of the Violent Crime Reduction Trust Fund 
     and amounts of outlays that flow from budget authority 
     actually appropriated.''.
       (b) Listing of the Violent Crime Reduction Trust Fund Among 
     Government Trust Funds.--Section 1321(a) of title 31, United 
     States Code, is amended by inserting at the end thereof the 
     following new paragraph:
       ``(91) Violent Crime Reduction Trust Fund.''.
       (c) Requirement for the President To Report Annually on the 
     Status of the Account.--Section 1105(a) of title 31, United 
     States Code, is amended by adding at the end thereof:
       ``(29) Information about the Violent Crime Reduction Trust 
     Fund, including a separate statement of amounts in that Trust 
     Fund.
       ``(30) An analysis displaying by agency proposed reductions 
     in full-time equivalent positions compared to the current 
     year's level in order to comply with section 506 of this 
     Act.''

     SEC. 508. CONFORMING REDUCTION IN DISCRETIONARY SPENDING 
                   LIMITS.

       The Director of the Office of Management and Budget shall, 
     upon enactment of this Act, reduce the discretionary spending 
     limits set forth in section 601(a)(2) of the Congressional 
     Budget Act of 1974 for fiscal years 1994 through 1998 as 
     follows:
       (1) for fiscal year 1994, for the discretionary category: 
     $720,000,000 in new budget authority and $314,000,000 in 
     outlays;
       (2) for fiscal year 1995, for the discretionary category: 
     $2,423,000,000 in new budget authority and $2,330,000,000 in 
     outlays;
       (3) for fiscal year 1996, for the discretionary category: 
     $4,287,000,000 in new budget authority and $4,184,000,000 in 
     outlays;
       (4) for fiscal year 1997, for the discretionary category: 
     $6,313,000,000 in new budget authority and $6,221,000,000 in 
     outlays; and
       (5) for fiscal year 1998, for the discretionary category: 
     $8,545,000,000 in new budget authority and $8,443,000,000 in 
     outlays.

     SEC. 509. 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 out 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 redesignated under paragraph 
     (3) of this subsection) by striking out ``or former spouse'' 
     in both places it appears;
       (5) by amending paragraph (6) (as redesignated under 
     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 redesignated under paragraph (3) 
     of this subsection) by striking out ``nonforfeiture'' and 
     inserting in lieu thereof ``nonforfeitable''.
       (b) Benefits and Election of Benefits.--Section 8433 of 
     title 5, United States Code, is amended--
       (1) in subsection (b) by striking out the matter before 
     paragraph (1) and inserting in lieu thereof ``Subject to 
     section 8435 of this title, any employee or Member who 
     separates from Government employment entitled to an annuity 
     under subchapter II of this chapter or any employee or Member 
     who separates from Government employment is entitled and may 
     elect--'';
       (2) by striking out subsections (c) and (d) and 
     redesignating subsections (e), (f), (g), (h), and (i) as 
     subsections (c), (d), (e), (f), and (g), respectively;
       (3) in subsection (c)(1) (as redesignated under paragraph 
     (2) of this subsection) by striking out ``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 in lieu 
     thereof ``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 redesignated under paragraph 
     (2) of this subsection) by striking out ``or (c)(2)''; and
       (5) in subsection (f) (as redesignated under paragraph (2) 
     of this subsection)--
       (A) by striking out paragraph (1) and redesignating 
     paragraphs (2) and (3) as paragraphs (1) and (2), 
     respectively; and
       (B) in paragraph (1) (as redesignated under subparagraph 
     (A) of this paragraph)--
       (i) by striking out ``Notwithstanding subsections (b) and 
     (c), if an employee or Member separates from Government 
     employment under circumstances making such an employee or 
     Member eligible to make an election under either of those 
     subsections, and such employee's or Member's'' and inserting 
     in lieu thereof ``Notwithstanding subsection (b), if an 
     employee or Member separates from Government employment, and 
     such employee's or Member's''; and
       (ii) by striking out ``or (c), as applicable''; and
       (C) in paragraph (2) (as redesignated under subparagraph 
     (A) of this paragraph) by striking out ``paragraphs (1) and 
     (2)'' and inserting in lieu thereof ``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 an 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 became effective less than 5 years before the 
     date on which 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 out ``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 in lieu 
     thereof ``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 out subsection (b);
       (3) by redesignating subsections (c), (d), (e), (f), (g), 
     (h), and (i) as subsections (b), (c), (d), (e), (f), (g), and 
     (h), respectively;
       (4) in subsection (b) (as redesignated under 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 redesignated under paragraph 
     (3) of this subsection) by striking out ``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 out ``Section 8433(d)'' 
     and inserting in lieu thereof ``Section 8433(b)''; and
       (2) by striking out paragraphs (7) and (8) and inserting in 
     lieu thereof 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 out ``Section 
     8433(d)'' and inserting in lieu thereof ``Section 8433(b)'';
       (3) in subsection (b)(5) by striking out ``retirement under 
     section 377 of title 28 is'' and inserting in lieu thereof 
     ``any of the actions described under paragraph (4) (A), (B), 
     or (C) shall be considered'';
       (4) in subsection (b) by striking out paragraph (8) and 
     redesignating paragraph (9) as paragraph (8); and
       (5) in paragraph (8) of subsection (b) (as redesignated 
     under paragraph (4) of this subsection)--
       (A) by striking out ``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 in lieu thereof ``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 out ``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 out ``Section 
     8433(d)'' and inserting in lieu thereof ``Section 8433(b)'';
       (2) in subsection (b)(5) by striking out ``retirement under 
     section 178 of title 28, is'' and inserting in lieu thereof 
     ``any of the actions described in paragraph (4) (A) or (B) 
     shall be considered'';
       (3) in subsection (b) by striking out paragraph (8) and 
     redesignating paragraph (9) as paragraph (8); and
       (4) in paragraph (8) (as redesignated under paragraph (3) 
     of this subsection) by striking out ``Notwithstanding 
     paragraph (4)(A)'' and inserting in lieu thereof 
     ``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 out ``A transfer shall be made as 
     provided under section 8433(d) of this title'' and inserting 
     in lieu thereof ``Section 8433(b) of this title applies''.
       (i) Technical and Conforming Amendments.--Chapters 83 and 
     84 of title 5, United States Code, are amended--
       (1) in section 8351(b)(5)(B) (as redesignated under 
     subsection (a)(3) of this section) by striking out ``section 
     8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
       (2) in section 8351(b)(5)(D) (as redesignated under 
     subsection (a)(3) of this section) by striking out ``section 
     8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
       (3) in section 8433(b)(4) by striking out ``subsection 
     (e)'' and inserting in lieu thereof ``subsection (c)'';
       (4) in section 8433(d)(1) (as redesignated under subsection 
     (b)(2) of this section) by striking out ``(d) of section 
     8435'' and inserting in lieu thereof ``(c) of section 8435'';
       (5) in section 8433(d)(2) (as redesignated under subsection 
     (b)(2) of this section) by striking out ``section 8435(d)'' 
     and inserting in lieu thereof ``section 8435(c)'';
       (6) in section 8433(e) (as redesignated under subsection 
     (b)(2) of this section) by striking out ``section 
     8435(d)(2)'' and inserting in lieu thereof ``section 
     8435(c)(2)'';
       (7) in section 8433(g)(5) (as redesignated under subsection 
     (b)(2) of this section) by striking out ``section 8435(f)'' 
     and inserting in lieu thereof ``section 8435(e)'';
       (8) in section 8434(b) by striking out ``section 8435(c)'' 
     and inserting in lieu thereof ``section 8435(b)'';
       (9) in section 8435(a)(1)(B) by striking out ``subsection 
     (c)'' and inserting in lieu thereof ``subsection (b)'';
       (10) in section 8435(d)(1)(B) (as redesignated under 
     subsection (d)(3) of this section) by striking out 
     ``subsection (d)(2)'' and inserting in lieu thereof 
     ``subsection (c)(2)'';
       (11) in section 8435(d)(3)(A) (as redesignated under 
     subsection (d)(3) of this section) by striking out 
     ``subsection (c)(1)'' and inserting in lieu thereof 
     ``subsection (b)(1)'';
       (12) in section 8435(d)(6) (as redesignated under 
     subsection (d)(3) of this section) by striking out ``or 
     (c)(2)'' and inserting in lieu thereof ``or (b)(2)'';
       (13) in section 8435(e)(1)(A) (as redesignated under 
     subsection (d)(3) of this section) by striking out ``section 
     8433(i)'' and inserting in lieu thereof ``section 8433(g)'';
       (14) in section 8435(e)(2) (as redesignated under 
     subsection (d)(3) of this section) by striking out ``section 
     8433(i) of this title shall not be approved if approval would 
     have the result described in subsection (d)(1)'' and 
     inserting in lieu thereof ``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 redesignated under subsection 
     (d)(3) of this section) by striking out ``section 8433(i)'' 
     and inserting in lieu thereof ``section 8433(g)'';
       (16) in section 8437(c)(5) by striking out ``section 
     8433(i)'' and inserting in lieu thereof ``section 8433(g)''; 
     and
       (17) in section 8440a(b)(6) by striking out ``section 
     8351(b)(7)'' and inserting in lieu thereof ``section 
     8351(b)(5)''.
       (j) Interim Provision.--Section 8433(d) of title 5, United 
     States Code, is amended by striking out ``shall transfer the 
     amount of the balance'' and inserting in lieu thereof ``may 
     transfer the amount of the balance''.
       (k) Effective Dates.--(1) Except as provided in paragraph 
     (2), the provisions of this section shall take effect 1 year 
     after the date of enactment of this Act or upon such other 
     date as the Executive Director of the Federal Retirement 
     Thrift Investment Board shall provide in regulation.
       (2) The provisions of subsection (j) of this section shall 
     take effect upon the date of the enactment of this Act.

     SEC. 510. 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 thereof the following new 
     paragraph:
       ``(4)(A) The State-owned railroad shall be included in the 
     definition of `agency' for purposes of section 503 (a), (b), 
     (c), and (e) and section 505 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 of 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 employment is in a position for which 
     there is exceptional difficulty in recruiting a qualified 
     employee and waives the repayment.''.
       (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 out subsection (e) and inserting in lieu 
     thereof 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.''.

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