ELIMINATION OF LUMP-SUM RETIREMENT BENEFIT.

SEC. 7901. ELIMINATION OF LUMP-SUM RETIREMENT BENEFIT. (a) Lump-Sum Benefit.—(1) Sections 8343a and 8420a of title 5, United States Code, are each amended by adding at the end the following: “(f)(1) Notwithstanding any other provision of this section, and except as provided in paragraph (2), an alternative form of annuity under this section may not be elected if the commencement date of the annuity would be later than December 1, 1990. “(2) Nothing in this subsection shall prevent an election from being made by any individual— “(A) who is separated from Government service involuntarily (other than for cause on charges of misconduct or delinquency), excluding— “(i) any Senator or Representative in, or Delegate or Resident Commissioner to, the Congress; “(ii) the Vice President; “(iii) any individual holding a position placed in the Executive Schedule under sections 5312 through 5317; “(iv) any individual appointed to a position by the President (or his designee) or the Vice President under section 105(a)(1), 106(a)(l), or 107 (a)(D or (b)(D of title 3, if the maximum rate of basic pay for such position is at or above the rate for level V of the Executive Schedule; “(v) any noncareer appointee in the Senior Executive Service or noncareer member of the Senior Foreign Service; and “(vi) any individual holding a position which is excepted from the competitive service because of its confidential, policy-determining, policy-making, or policy-advocating character; or “(B) as to whom the application of paragraph (1) would be against equity and good conscience, due to a life-threatening affliction or other critical medical condition affecting such individual. 104 STAT. 1388–328 “(3) ) This subsection shall cease to be effective as of October 1, 1995.”. (2) Section 4005 of the Omnibus Budget Reconciliation Act of 1989 (Public Law 101–239; 103 Stat. 2135) is amended— (A) in subsection (a), by striking “October 1, 1990.” and inserting “December 2, 1990.”; and (B) by adding at the end the following: “(f) Continued Applicability.—The preceding provisions of this section (disregarding the provision in subsection (a) limiting this section’s applicability to annuities commencing before the date specified in such provision) shall also apply in the case of any employee or Member whose election of an alternative form of annuity would not have been allowable under section 8343a(f) or 8420a(0 of title 5, United States Code (as the case may be), but for— “(1) paragraph (2)(A) thereof; or “(2) section 7001(a)(4) of the Omnibus Budget Reconciliation Act of 1990.”. (C)(i) Section 6001(b)(2) of the Omnibus Budget Reconciliation Act of 1987 (5 U.S.C. 8343a note) and section 4005(b)(2) of the Omnibus Budget Reconciliation Act of 1989 (103 Stat. 2135) are each amended by striking “described in paragraph (1).” and inserting “on which the payment described in paragraph (1) is paid.”. (ii) The amendments made by clause (i) shall not apply in any case in which the first half of the lump-sum payment involved was paid before the beginning of the 11-month period which ends on the date of the enactment of this Act. (D) Section 2 of Public Law 101–227 (103 Stat. 1943) is repealed. (3) Section 8348(a)(l)(B) of title 5, United States Code, is amended by inserting “in administering alternative forms of annuities under sections 8343a and 8420a (and related provisions of law),” before “and in withholding”. (4)(A) In applying the provisions of section 8343a(f) or 8420a(f) of title 5, United States Code (as amended by paragraph (1)) to any individual described in subparagraph (B), the reference in such provisions to “December 1, 1990” shall be deemed to read “December 1, 1991”. (B) This paragraph applies with respect to any individual who— (i)(I) is a member of the Armed Forces of the United States who, before December 1, 1990, was called or ordered to active duty (other than for training) pursuant to section 672, 673, 673b, 674, 675, or 688 of title 10, United States Code, in connection with Operation Desert Shield; or (II) is an employee of the Department of Defense who is certified by the Secretary of Defense to have performed, after November 30, 1990, duties essential for the support of Operation Desert Shield; and (ii) would have been eligible to make an election under section 8343a or 8420a of title 5, United States Code (as amended by paragraph (1)) as of November 30, 1990. (C) The Office of Personnel Management may prescribe such regulations as may be necessary to carry out this paragraph. (b) Prior Refunds.—(1) Section 8334(d) of title 5, United States (A) by striking “(d)” and inserting “(d)(D”; and (B) by adding at the end the following: “(2)(A) This paragraph applies with respect to any employee or Member who— 104 STAT. 1388–329 “(i) separates before October 1, 1990, and receives (or elects, in accordance with applicable provisions of this subchapter, to receive) a refund (described in paragraph (1)) which relates to a period of service ending before October 1, 1990; “(ii) is entitled to an annuity under this subchapter (other than a disability annuity) which is based on service of such employee or Member, and which commences on or after December 2, 1990; and “(iii) does not make the deposit (described in paragraph (1)) required in order to receive credit for the period of service with respect to which the refund relates. “(B) Notwithstanding the second sentence of paragraph (1), the annuity to which an employee or Member under this paragraph is entitled shall (subject to adjustment under section 8340) be equal to an amount which, when taken together with the unpaid amount referred to in subparagraph (A)(iii), would result in the present value of the total being actuarially equivalent to the present value of the annuity which would otherwise be provided the employee or Member under this subchapter, as computed under subsections (a)(i) and (n) of section 8339 (treating, for purposes of so computing the annuity which would otherwise be provided under this subchapter, the deposit referred to in subparagraph (A)(iii) as if it had been timely made). “(C) The Office of Personnel Management shall prescribe such regulations as may be necessary to carry out this paragraph.”. (2)(A) Section 8334 of title 5, United States Code, is amended in paragraphs (1) and (2) of subsection (e), and in subsection (h), by striking “(d),” and inserting “(d)(1),”. (B) Section 8334(f) and section 8339(i)(1) of title 5, United States Code, are amended by striking “(d)” and inserting “(d)(1)”. (C) Section 8339(e) of title 5, United States Code, is amended by striking “8334(d)” and inserting “8334(d)(D”. (D) The second sentence of section 8342(a) of title 5, United States Code, is amended by inserting “or 8334(d)(2)” after “8343a”. (3) The amendments made by this subsection shall be effective with respect to any annuity having a commencement date later than December 1, 1990.