18-MONTH PERIOD TO ELECT A SURVIVOR ANNUITY.

SEC. 303. 18-MONTH PERIOD TO ELECT A SURVIVOR ANNUITY. (a) Establishment of Period After Retirement To Make Election.— Section 221 is amended— (1) by redesignating the second subsection (p) as subsection (r); and (2) by inserting before that subsection the following new subsection: “(q) (1) (A) A participant or former participant— “(i) who, at the time of retirement, is married, and “(ii) who elects at that time (in accordance with subsection (b)) to waive a survivor annuity for the spouse, may, during the 18-month period beginning on the date of the retirement of such participant, elect to have a reduction under subsection (b) made in the annuity of the participant (or in such portion thereof as the participant may designate) in order to provide a survivor annuity for that spouse of the participant. “(B) A participant or former participant— “(i) who, at the time of retirement, is married, and “(ii) who, at that time designates (in accordance with subsection (b)) that a portion of the annuity of such participant is to be used as the base for a survivor annuity, may, during the 18-month period beginning on the date of the retirement of such participant, elect to have a greater portion of the annuity of such participant so used. “(2) (A) An election under subparagraph (A) or (B) of paragraph (1) shall not be considered effective unless the amount specified in subparagraph (B) is deposited into the fund before the expiration of the applicable 18-month period under paragraph (1). “(B) The amount to be deposited with respect to an election under this subsection is an amount equal to the sum of— 105 STAT. 1264 “(i) the additional cost to the system which is associated with providing a survivor annuity under subsection (b) and results from such election, taking into account (I) the difference (for the period between the date on which the annuity of the participant or former participant commences and the date of the election) between the amount paid to such participant or former participant under this title and the amount which would have been paid if such election had been made at the time the participant or former participant applied for the annuity, and (U) the costs associated with providing for the later election; and “(ii) interest on the additional cost determined under clause (i), computed using the interest rate specified or determined under section 8334(e) of title 5, United States Code, for the calendar year in which the amount to be deposited is determined. “(3) An election by a participant or former participant under this subsection voids prospectively any election previously made in the case of such participant under subsection (b). “(4) An annuity which is reduced in connection with an election under this subsection shall be reduced by the same percentage reductions as were in effect at the time of the retirement of the participant or former participant whose annuity is so reduced. “(5) Rights and obligations resulting from the election of a reduced annuity under this subsection shall be the same as the rights and obligations which would have resulted had the participant involved elected such annuity at the time of retiring. “(6) The Director shall, on an annual basis, inform each participant or former participant who is eligible to make an election under this subsection of the right to make such election and the procedures and deadlines applicable to such election.”. (b) Effective Date.— (1) The amendments made by subsection (a) shall take effect on the first day of the fourth month beginning after the date of the enactment of this Act. (2) (A) The amendment made by subsection (a)(2) shall apply with respect to participants and former participants regardless of whether they retire before, on, or after the effective date specified in paragraph (1), except that paragraph (1)(A) of section 221(q) of the Central Intelligence Agency Retirement Act of 1964 for Certain Employees (as added by subsection(a)(2)) shall apply only with respect to participants who retire on or after that effective date. (B) In applying the provisions of paragraph (1)(B) of section 221(q) of the Central Intelligence Agency Retirement Act of 1964 for Certain Employees (as added by subsection (a)(2)) to a participant or former participant who retires before the effective date specified in paragraph (1)— (i) the 18-month period referred to in that paragraph shall be considered to begin on the effective date specified in paragraph (1); and (ii) the amount referred to in paragraph (2) of that section (as added by subsection (a)(2)) shall be computed without regard to the provisions of subparagraph (B)(ii) of such paragraph (relating to interest). SEC. 304. WAIVER OF THIRTY-MONTH APPLICATION REQUIREMENT. Section 224(c)(2)(A) is amended— (1) by striking out “require within thirty months after the effective date of this section.” and inserting in lieu thereof 105 STAT. 1265“require. Any such application and documentation shall be submitted not later than April 1, 1989.”; and (2) by adding at the end the following new sentence: “The Director may waive the deadline in the preceding sentence for submission of an application and supporting documentation under this subparagraph in any case in which the Director determines that the circumstances warrant such a waiver.”.