LUMP SUM PAYMENTS.

SEC. 218. LUMP SUM PAYMENTS. (a) Requirements for Payment.— Subsection (a) of section 815 (22 U.S.C. 4055) is amended to read as follows: “(a) (1) A participant is entitled to be paid a lump-sum credit if the participant— “(A) is separated from the Service for at least 31 consecutive days, or is transferred to a position in which the participant is not subject to this chapter and remains in such a position for at least 31 consecutive days; “(B) files an application with the Secretary of State for payment of the lump-sum credit; “(C) is not reemployed in a position in which the participant is subject to this chapter at the time the participant files the application; “(D) will not become eligible to receive an annuity under this subchapter within 31 days after filing the application; and “(E) has notified any spouse or former spouse the participant may have of the application for payment in accordance with regulations prescribed by the Secretary of State. Such regulations may provide for waiver of subparagraph (E) under circumstances described in section 806(b)(1)D). “(2) Such lump-sum credit shall be paid to the participant and to any former spouse of the participant in accordance with subsection (i).”.