FEDERAL EMPLOYEES’ SURVIVOR ANNUITY IMPROVEMENTS.

SEC. 11004. FEDERAL EMPLOYEES’ SURVIVOR ANNUITY IMPROVEMENTS. (a) Civil Service Retirement System.— (1) Reduction for spousal annuity.— Section 8339(j) of title 5, United States Code, is amended— (A) in paragraph (3)— (i) in the second sentence by striking “, within such 2-year period,”; and (ii) by striking the fourth sentence and inserting the following: “The Office shall, by regulation, provide for payment of the deposit required under this paragraph by a reduction in the annuity of the employee 107 STAT. 411or Member. The reduction shall, to the extent practicable, be designed so that the present value of the future reduction is actuarially equivalent to the deposit required under this paragraph, except that the total reductions in the annuity of an employee or Member to pay deposits required by the provisions of this paragraph, paragraph (5), or subsection (k)(2) shall not exceed 25 percent of the annuity computed under subsections (a) through (i), (n), and (q), including adjustments under section 8340. The reduction, which shall be effective on the same date as the election under this paragraph, shall be permanent and unaffected by any future termination of the entitlement of the former spouse. Such reduction shall be independent of and in addition to the reduction required under the first sentence of this paragraph.”; and (B) in paragraph (5)(C)— (i) in clause (ii) by striking “, within 2 years after the date of the remarriage or, if later, the death or remarriage of the former spouse (or of the last such surviving former spouse),”; and (ii) by amending clause (iii) to read as follows: “(iii) The Office shall, by regulation, provide for payment of the deposit required under clause (ii) by a reduction in the annuity of the employee or Member. The reduction shall, to the extent practicable, be designed so that the present value of the future reduction is actuarially equivalent to the deposit required under clause (ii), except that total reductions in the annuity of an employee or Member to pay deposits required by the provisions of this paragraph or paragraph (3) shall not exceed 25 percent of the annuity computed under subsections (a) through (i), (n), and (q), including adjustments under section 8340. The reduction required by this clause, which shall be effective on the same date as the election under clause (i), shall be permanent and unaffected by any future termination of the marriage. Such reduction shall be independent of and in addition to the reduction required under clause (i).”. (2) Reduction relating to former spouse.— Section 8339(k)(2) of title 5, United States Code, is amended— (A) in subparagraph (B)(ii) by striking “Within 2 years after the date of the marriage, the” and inserting “The”; and (B) by amending subparagraph (C) to read as follows: “(C) The Office shall, by regulation, provide for payment of the deposit required under subparagraph (B)(ii) by a reduction in the annuity of the employee or Member. The reduction shall, to the extent practicable, be designed so that the present value of the future reduction is actuarially equivalent to the deposit required under subparagraph (B)(ii), except that total reductions in the annuity of an employee or Member to pay deposits required by this subsection or subsection (j)(3) shall not exceed 25 percent of the annuity computed under subsections (a) through (i), (n), and (q), including adjustments under section 8340. The reduction required by this subparagraph, which shall be effective on the same date as the election under subparagraph (A), shall be permanent and unaffected 107 STAT. 412by any future termination of the marriage. Such reduction shall be independent of and in addition to the reduction required under subparagraph (A).”. (3) Deposits.— Section 8334(h) of title 5, United States Code, is amended by striking “and by section 8339(j)(5)(C) and the last sentence of section 8339(k)(2) of this title”. (b) Federal Employees’ Retirement System.— Section 8418 of title 5, United States Code, is amended— (1) in subsection (a)(1) by striking “, before the expiration of the 2-year period involved,”, and (2) by amending subsection (b) to read as follows: “(b) The Office shall, by regulation, provide for payment of the deposit required under subsection (a) by a reduction in the annuity of the employee or Member. The reduction shall, to the extent practicable, be designed so that the present value of the future reduction is actuarially equivalent to the deposit required under subsection (a), except that the total reductions m the annuity of an employee or Member to pay deposits required by this section shall not exceed 25 percent of the annuity computed under section 8415 or section 8452, including adjustments under section 8462. The reduction required by this subsection, which shall be effective at the same time as the election under section 8416 (b) and (c) or section 8417(b), shall be permanent and unaffected by any future termination of the marriage or the entitlement of the former spouse. Such reduction shall be independent of and in addition to the reduction required under section 8416 (b) and (c) or section 8417(b).”. (c) Effective Date.— (1) In general.— The amendments made by this section shall take effect on the first day of the first month beginning at least 30 days after the date of the enactment of this Act and shall apply to all deposits required under section 8339(j) (3) or (5), 8339(k)(2), or 8418 of title 5, United States Code, on which no payment has been made prior to such effective date. (2) Partial deposit.— For any deposit required under section 8339(j) (3) or (5), 8339(k)(2), or 8418 of title 5, United States Code, or section 4 (b) or (c) of the Civil Service Retirement Spouse Equity Act of 1984 (5 U.S.C. 8341 note) that has been partially, but not fully, paid before the effective date of this Act, the Office shall by regulation provide for determining the remaining portion of the deposit and for payment of the remaining portion of the deposit by a prospective reduction in the annuity of the employee or Member. The reduction shall be similar to the reductions provided pursuant to the amendments made under this section.