< Back to H.R. 3345 (103rd Congress, 1993–1994)

Text of the Federal Workforce Restructuring Act of 1994

This bill was enacted after being signed by the President on March 30, 1994. The text of the bill below is as of Mar 24, 1994 (Passed Congress/Enrolled Bill).

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H.R.3345

One Hundred Third Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Tuesday,

the twenty-fifth day of January, one thousand nine hundred and ninety-four

An Act

To provide temporary authority to Government agencies relating to voluntary separa-

tion incentive payments, 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. 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. MONITORING AND REPORT RELATING TO VOLUNTARY SEPARATION INCENTIVE PAYMENTS.

    No later than December 31st of each fiscal year, the Office of Personnel Management shall submit to the Committee on Governmental Affairs of the Senate and the Committee on Post Office and Civil Service of the House of Representatives a report which, with respect to the preceding fiscal year, shall include--

      (1) the number of employees who received a voluntary separation incentive payment under section 3 during such preceding fiscal year;

      (2) the agency from which each such employee separated;

      (3) at the time of separation from service by each such employee--

        (A) such employee’s grade or pay level; and

        (B) the geographic location of such employee’s official duty station, by region, State, and city (or foreign nation, if applicable); and

      (4)(A) the number of waivers made (in the repayment upon subsequent employment) by each agency or other authority under section 3 or the amendments made by section 8; and

      (B) the title and the grade or pay level of the position filled by the employee to whom such waiver applied.

SEC. 7. DISLOCATION PAYMENTS FOR CERTAIN CONTRACTOR PERSONNEL.

    (a) PAYMENT- No later than October 31, 1994, the Director of the National Aeronautics and Space Administration shall pay $5,000 to each full-time contractor employee who--

      (1) was hired, under a contract relating to the Advanced Solid Rocket Motor Program, by--

        (A) Lockheed Missiles and Space Company;

        (B) Aerojet Corporation, Advanced Solid Rocket Motor Division; or

        (C) Rust Corporation;

      (2) was separated from employment in Yellow Creek, Mississippi, as a result of the termination of the Advanced Solid Rocket Motor Program; and

      (3)(A) had been hired locally at Yellow Creek, Mississippi; or

      (B) based on the separation referred to in paragraph (2), was eligible, but elected not, to be relocated.

    (b) OFFSET- No payment made under this section shall be offset against the severance costs of a contractor.

    (c) SOURCE OF PAYMENTS- Payments under this section shall be from funds appropriated under the subheading ‘SPACE FLIGHT, CONTROL AND DATA COMMUNICATIONS’ under the heading ‘NATIONAL AERONAUTICS AND SPACE ADMINISTRATION’ under title III of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1994 (Public Law 103-124; 107 Stat. 1299).

    (d) LIMITATION ON PAYMENTS- The amount of total payments made under this section may not exceed $1,000,000.

SEC. 8. SUBSEQUENT EMPLOYMENT AND REPAYMENT OF 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. 9. STANDARDIZATION OF WITHDRAWAL OPTIONS FOR THRIFT SAVINGS PLAN PARTICIPANTS.

    (a) PARTICIPATION IN THE THRIFT SAVINGS PLAN- Section 8351(b) of title 5, United States Code, is amended--

      (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. 10. AMENDMENTS TO ALASKA RAILROAD TRANSFER ACT OF 1982 REGARDING FORMER FEDERAL EMPLOYEES.

    (a) APPLICABILITY OF VOLUNTARY SEPARATION INCENTIVES TO CERTAIN FORMER FEDERAL EMPLOYEES- Section 607(a) of the Alaska Railroad Transfer Act of 1982 (45 U.S.C. 1206(a)) is amended by adding at the end the following:

      ‘(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.’.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.