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Mr. McCURDY submitted the following conference report and statement on the bill (H.R. 5095) to authorize appropriations for fiscal year 1993 for intelligence and intelligence-related activities of the U.S. Government and the Central Intelligence Agency Retirement and Disability System, to revise and restate the Central Intelligence Agency Retirement Act of 1964 for certain employees, and for other purposes:
The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 5095), to authorize appropriations for fiscal year 1993 for intelligence and intelligence-related activities of the United States Government and the Central Intelligence Agency Retirement and Disability System, to revise and restate the Central Intelligence Agency Retirement Act of 1964 for certain employees, and for other purposes, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows:
That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as follows:
In lieu of the matter proposed to be inserted by the Senate amendment, insert the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title: This Act may be cited as the `Intelligence Authorization Act for Fiscal Year 1993'.
(b) Table of Contents: The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 101. Authorization of appropriations.
Sec. 102. Classified Schedule of Authorizations.
Sec. 103. Personnel ceiling adjustments.
Sec. 104. Community Management Staff.
Sec. 201. Authorization of appropriations.
Sec. 301. Increase in employee compensation and benefits authorized by law.
Sec. 302. Restriction on conduct of intelligence activities.
Sec. 303. Sense of Congress regarding disclosure of annual intelligence budget.
Sec. 304. Technical amendments.
Sec. 305. Airborne reconnaissance.
Sec. 401. Postemployment assistance for certain DIA employees.
Sec. 402. Inclusion of Senior Executive Service positions in civilian intelligence personnel system.
Sec. 403. Notice to congressional intelligence committees of Department of Defense real property transactions and construction projects involving intelligence agencies.
Sec. 404. Amendments to National Security Education Act of 1991.
Sec. 405. Pay and allowances for employees of the National Security Agency.
Sec. 406. Exemption for National Reconnaissance Office from any requirement for disclosure of personnel information.
Sec. 501. Temporary FBI authority to accept bequests or devises.
Sec. 601. Authority of Inspector General to receive complaints and information from any person.
Sec. 701. Short title.
Sec. 702. Definitions.
Sec. 703. Participation of the Director of Central Intelligence in the National Security Council.
Sec. 704. Appointment of the Director and Deputy Director of Central Intelligence.
Sec. 705. Responsibilities and authorities of the Director of Central Intelligence.
Sec. 706. Responsibilities of the Secretary of Defense pertaining to the National Foreign Intelligence Program.
Sec. 801. Short title.
Sec. 802. Restatement of Act.
Sec. 803. Conforming amendments.
Sec. 804. Savings provisions.
Sec. 805. Effective date.
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TITLE I--INTELLIGENCE ACTIVITIES
SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
Funds are hereby authorized to be appropriated for fiscal year 1993 for the conduct of the intelligence and intelligence-related activities of the following elements of the United States Government:
(1) The Central Intelligence Agency.
(2) The Department of Defense.
(3) The Defense Intelligence Agency.
(4) The National Security Agency.
(5) The Department of the Army, the Department of the Navy, and the Department of the Air Force.
(6) The Department of State.
(7) The Department of the Treasury.
(8) The Department of Energy.
(9) The Federal Bureau of Investigation.
(10) The Drug Enforcement Administration.
SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.
(a) Specifications of Amounts and Personnel Ceilings: The amounts authorized to be appropriated under section 101, and the authorized personnel ceilings as of September 30, 1993, for the conduct of the intelligence and intelligence-related activities of the elements listed in such section, are those specified in the classified Schedule of Authorizations prepared by the committee of conference to accompany the conference report on the bill H.R. 5095 of the One Hundred Second Congress.
(b) Availability of Classified Schedule of Authorizations: The Schedule of Authorizations shall be made available to the Committee on Appropriations of the Senate and House of Representatives and to the President. The President shall provide for suitable distribution of the Schedule, or of appropriate portions of the Schedule, within the executive branch.
SEC. 103. PERSONNEL CEILING ADJUSTMENTS.
(a) Authority for Adjustments: The Director of Central Intelligence may authorize employment of civilian personnel in excess of the numbers authorized for fiscal year 1993 under section 102 of this Act when the Director determines that such action is necessary to the performance of important intelligence functions, except that such number may not, for any element of the Intelligence Community, exceed two percent of the number of civilian personnel authorized under such section for such element.
(b) Notice to Intelligence Committees: The Director of Central Intelligence shall promptly notify the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate whenever the Director exercises the authority granted by this section.
SEC. 104. COMMUNITY MANAGEMENT STAFF.
(a) Authorization of Appropriations: There is authorized to be appropriated for the Community Management Staff of the Director of Central Intelligence for fiscal year 1993 the sum of $86,900,000.
(b) Authorized Personnel Levels: The Community Management Staff of the Director of Central Intelligence is authorized 161 full-time personnel as of September 30, 1993. Such personnel may be permanent employees of the Community Management Staff or personnel detailed from other elements of the United States Government.
(c) Reimbursement: During fiscal year 1993, any officer or employee of the United States or a member of the Armed Forces who is detailed to the Community Management Staff from another element of the United States Government shall be detailed on a reimbursable basis, except that any such officer, employee, or member may be detailed on a nonreimbursable basis for a period of less than one year for the performance of temporary functions as required by the Director of Central Intelligence.
(d) Community Management Staff Administered in Same Manner as Central Intelligence Agency: During fiscal year 1993, activities and personnel of the Community Management Staff shall be subject to the provisions of the National Security Act of 1947 (50 U.S.C. 401 et seq.) and the Central Intelligence Agency Act of 1949 (50 U.S.C. 403a et seq.) in the same manner as activities and personnel of the Central Intelligence Agency.
TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated for the Central Intelligence Agency Retirement and Disability Fund for fiscal year 1993 the sum of $168,900,000.
TITLE III--GENERAL PROVISIONS
SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS AUTHORIZED BY LAW.
Appropriations authorized by this Act for salary, pay, retirement, and other benefits for Federal employees may be increased by such additional or supplemental amounts as may be necessary for increases in such compensation or benefits authorized by law.
SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.
The authorization of appropriations by this Act shall not be deemed to constitute authority for the conduct of any intelligence activity which is not otherwise authorized by the Constitution or laws of the United States.
SEC. 303. SENSE OF CONGRESS REGARDING DISCLOSURE OF ANNUAL INTELLIGENCE BUDGET.
It is the sense of Congress that, beginning in 1993, and in each year thereafter, the aggregate amount requested and authorized for, and spent on, intelligence and intelligence-related activities should be disclosed to the public in an appropriate manner.
SEC. 304. TECHNICAL AMENDMENTS.
(a) National Security Agency Act of 1959: The National Security Agency Act of 1959 is amended by redesignating the second section 17 (added by section 405 of Public Law 102-183) as section 18.
(b) Public Law 102-88: Effective as of August 14, 1991, section 305(a)(3) of Public Law 102-88 (105 Stat. 432) is amended by striking out `in the last sentence' and inserting in lieu thereof `in the penultimate sentence'.
SEC. 305. AIRBORNE RECONNAISSANCE.
(a) Of the amount authorized to be appropriated by section 101 for reconnaissance programs, funds are authorized for an advanced airborne reconnaissance system.
(b) The amount authorized in subsection (a) is the amount equal to one-third of the amount authorized for a similar activity in the National Foreign Intelligence Program for fiscal year 1992 by the Intelligence Authorization Act for Fiscal Year 1992 (Public Law 102-183).
TITLE IV--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES
SEC. 401. POSTEMPLOYMENT ASSISTANCE FOR CERTAIN DIA EMPLOYEES.
(a) Assistance Authorized: Subsection (e) of section 1604 of title 10, United States Code, is amended by adding at the end the following new paragraph:
`(4)(A) Notwithstanding any other provision of law, the Secretary of Defense may use appropriated funds to assist employees who have been in sensitive positions in the Defense Intelligence Agency and who are found to be ineligible for continued access to Sensitive Compartmented Information and employment with the Defense Intelligence Agency, or whose employment with the Defense Intelligence Agency has been terminated--
`(i) in finding and qualifying for subsequent employment;
`(ii) in receiving treatment of medical or psychological disabilities; and
`(iii) in providing necessary financial support during periods of unemployment.
`(B) Assistance may be provided under subparagraph (A) only if the Secretary determines that such assistance is essential to maintain the judgment and emotional stability of such employee and avoid circumstances that might lead to the unlawful disclosure of classified information to which such employee had access. Assistance provided under this paragraph for an employee shall not be provided any longer than five years after the termination of the employment of the employee.
`(C) The Secretary shall report annually to the Committees on Appropriations of the Senate and House of Representatives, the Select Committee on Intelligence of the Senate, and the Permanent Select Committee on Intelligence of the House of Representatives with respect to any expenditure made pursuant to this paragraph.'.
(b) First Annual Report: The first report under paragraph (4) of section 1604(e) of title 10, United States Code, shall be submitted not later than 12 months after the date of the enactment of this Act.
SEC. 402. INCLUSION OF SENIOR EXECUTIVE SERVICE POSITIONS IN CIVILIAN INTELLIGENCE PERSONNEL SYSTEM.
(a) Inclusion of Senior Executive Service Positions: Section 1590 of title 10, United States Code, is amended--
(1) in subsection (a)(1)--
(A) by inserting `, including positions in the Senior Executive Service,' after `positions'; and
(B) by inserting after `such departments' the following: `, except that the total number of positions in the Senior Executive Service established pursuant to this section may not exceed one-half of one percent of the total number of all civilian intelligence positions established pursuant to this section;';
(2) in subsection (b), by inserting after the first sentence the following new sentence: `The Secretary shall also fix rates of pay for positions in the Senior Executive Service established pursuant to this section that are not in excess of the maximum rate or less than the minimum rate of basic pay established pursuant to section 5382 of title 5.'; and
(3) by adding at the end the following new subsections:
`(f) With regard to any position in the Senior Executive Service which may be established pursuant to this section, the Secretary of Defense shall prescribe regulations to implement this section which are consistent with the requirements set forth in sections 3131, 3132(a)(2), 3393a, 3396(c), 3592, 3595(a), 5384, and 6304, subsections (a), (b), and (c) of section 7543 (except that any hearing or appeal to which a member of the Senior Executive Service is entitled shall be held or decided pursuant to regulations issued by the Secretary), and subchapter II of chapter 43 of title 5. The Secretary of Defense shall also prescribe, to the extent practicable, regulations to implement such other provisions of title 5 as apply to members of the Senior Executive Service or to individuals applying for positions in the Senior Executive Service.
`(g) The President, based on the recommendations of the Secretary of Defense, may award a rank referred to in section 4507 of title 5 to members of the Senior Executive Service whose positions may be established pursuant to this section. The awarding of such a rank shall be made in a manner consistent with the provisions of that section.'.
(b) Conforming Amendment: Section 3132(a)(1)(B) of title 5, United States Code, is amended by inserting after `National Security Agency' the following: `, Department of Defense intelligence activities the civilian employees of which are subject to section 1590 of title 10,'.
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SEC. 403. NOTICE TO CONGRESSIONAL INTELLIGENCE COMMITTEES OF DEPARTMENT OF DEFENSE REAL PROPERTY TRANSACTIONS AND CONSTRUCTION PROJECTS INVOLVING INTELLIGENCE AGENCIES.
(a) Real Property Transactions: (1) Section 2662 of title 10, United States Code, is amended by adding at the end the following new subsection:
`(f) Whenever a transaction covered by this section is made by or on behalf of an intelligence component of the Department of Defense or involves real property used by such a component, any report under this section with respect to the transaction that is submitted to the Committees on Armed Services of the Senate and the House of Representatives shall be submitted concurrently to the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate.'.
(2)(A) The heading of such section is amended to read as follows:
`2662. Real property transactions: reports to congressional committees'.
(B) The item relating to such section in the table of sections at the beginning of chapter 159 of such title is amended to read as follows:
`2662. Real property transactions: reports to congressional committees.'.
(b) Construction Projects: Section 2801(c)(4) of such title is amended by inserting before the period at the end the following: `and, with respect to any project to be carried out by, or for the use of, an intelligence component of the Department of Defense, the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate'.
SEC. 404. AMENDMENTS TO NATIONAL SECURITY EDUCATION ACT OF 1991.
(a) Redesignation of Act: Section 801(a) of the National Security Education Act of 1991 (title VIII of Public Law 102-183; 50 U.S.C. 1901 et seq.) is amended to read as follows:
`(a) Short Title: This title may be cited as the `David L. Boren National Security Education Act of 1991'.'.
(b) Program Revisions: Section 802(a) of such Act (50 U.S.C. 1902(a))--
(1) in paragraph (1)(A), by inserting `or equivalent term,' after `at least one academic semester';
(2) in paragraph (1)(B)(i), by striking out `in the United States' and inserting in lieu thereof `as part of a graduate degree program of a United States institution of higher education'; and
(3) in paragraph (4), by adding at the end the following new sentence: `In addition, the Secretary may enter into personal service contracts for periods up to one year for program administration, except that not more than 10 such contracts may be in effect at any one time.'.
(c) Repeal of Required Entity To Administer Program: Section 802 of such Act is further amended--
(1) by striking out subsection (e); and
(2) by redesignating subsection (f) as subsection (e).
(d) National Security Education Board: Section 803(b) of such Act (50 U.S.C. 1903(b)) is amended--
(1) by redesignating paragraph (7) as paragraph (8);
(2) by inserting after paragraph (6) the following new paragraph (7):
`(7) The Chairperson of the National Endowment for the Humanities.'; and
(3) in paragraph (8) (as so redesignated)--
(A) by striking out `Four individuals' and inserting in lieu thereof `Six individuals'; and
(B by inserting before the period at the end the following: `and who may not be officers or employees of the Federal Government'.
(e) Fund Assets Available for Investment: Section 804(c) of such Act (50 U.S.C. 1904(c)) is amended by striking out `obligation' at the end of the first sentence and inserting in lieu thereof `expenditure'.
(f) Authorization of Appropriations: There is authorized to be appropriated for fiscal year 1993 to the National Security Education Trust Fund established by section 804 of the David L. Boren National Security Education Act of 1991 (50 U.S.C. 1904) the sum of $30,000,000.
SEC. 405. PAY AND ALLOWANCES FOR EMPLOYEES OF THE NATIONAL SECURITY AGENCY.
Section 2 of the National Security Agency Act of 1959 (Public Law 86-36; 50 U.S.C. 402 note) is amended to read as follows:
`Sec. 2. (a) The Secretary of Defense (or his designee) is authorized to establish such positions, and to appoint thereto, without regard to the civil service laws, such officers and employees, in the National Security Agency, as may be necessary to carry out the functions of such agency. The rates of basic pay for such positions shall be fixed by the Secretary of Defense (or his designee for this purpose) in relation to the rates of basic pay provided for in subpart D of part III of title 5, United States Code, for positions subject to such title which have corresponding levels of duties and responsibilities. Except as otherwise provided by law, no officer or employee of the National Security Agency shall be paid basic pay at a rate in excess of the maximum rate payable under section 5376 of such title and not more than 70 such officers and employees shall be paid within the range of rates authorized in section 5376 of such title.
`(b) The Secretary of Defense (or his designee) may provide officers and employees of the National Security Agency other compensation, benefits, incentives, and allowances which are consistent with, and do not exceed the levels authorized for, such compensation, benefits, incentives, or allowances by title 5, United States Code.'.
SEC. 406. EXEMPTION FOR NATIONAL RECONNAISSANCE OFFICE FROM ANY REQUIREMENT FOR DISCLOSURE OF PERSONNEL INFORMATION.
(a) Exemption From Disclosure: Except as required by the President or as provided in subsection (b), nothing in this Act or any other provision of law shall be construed to require the disclosure of the name, title, or salary of any person employed by, or assigned or detailed to, the National Reconnaissance Office or the disclosure of the number of such persons.
(b) Provision of Information to Congress: Subsection (a) does not apply with respect to the provision of information to Congress.
TITLE V--FEDERAL BUREAU OFINVESTIGATION ADMINISTRATIVE PROVISIONS
SEC. 501. TEMPORARY FBI AUTHORITY TO ACCEPT BEQUESTS OR DEVISES.
(a) Acceptance of Bequests: During fiscal year 1993, the Director of the Federal Bureau of Investigation may accept, on behalf of the Bureau, any bequest or devise made by a citizen of the United States, if such bequest or devise is used only--
(1) to fund and administer, in accordance with regulations prescribed by the Director, a scholarship program for the benefit of the immediate families of Federal law enforcement officers slain or permanently disabled in the line of duty; and
(2) to pay all necessary expenses in connection with the acceptance of such bequest or devise.
(b) Authority To Use Funds: (1) Notwithstanding any other provision of law, proceeds from the sale of property accepted as a bequest or devise by the Director pursuant to subsection (a) shall be maintained in an interest bearing account and shall remain available for disbursement for purposes of this section until such funds are expended.
(2) The authority of paragraph (1) may be exercised only to such extent and in such amounts as are provided in advance in appropriation Acts.
(c) Regulations Required: Not later than 90 days after accepting any bequest or devise pursuant to this section, the Director shall prescribe regulations to implement the provisions of this section in a fair, equitable manner, and shall make copies of such regulations available to all Federal law enforcement agencies. Copies of such regulations shall also be provided the Judiciary Committees of the Senate and the House of Representatives.
TITLE VI--CENTRAL INTELLIGENCE AGENCY
SEC. 601. AUTHORITY OF CIA INSPECTOR GENERAL TO RECEIVE COMPLAINTS AND INFORMATION FROM ANY PERSON.
Section 17(e)(3) of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403q) is amended--
(1) by striking out `an employee of the Agency' and inserting in lieu thereof `any person'; and
(2) by inserting `from an employee of the Agency' after `received'.
TITLE VII--INTELLIGENCE ORGANIZATION
SEC. 701. SHORT TITLE.
This title may be cited as the `Intelligence Organization Act of 1992'.
SEC. 702. DEFINITIONS.
The National Security Act of 1947 (50 U.S.C. 401 et seq.) is amended by inserting after section 2 the following new section:
`(1) The term `intelligence' includes foreign intelligence and counterintelligence.
`(2) The term `foreign intelligence' means information relating to the capabilities, intentions, or activities of foreign governments or elements thereof, foreign organizations, or foreign persons.
`(3) The term `counterintelligence' means information gathered and activities conducted to protect against espionage, other intelligence activities, sabotage, or assassinations conducted by or on behalf of foreign governments or elements thereof, foreign organizations, or foreign persons, or international terrorist activities.
`(4) The term `intelligence community' includes--
`(A) the Office of the Director of Central Intelligence, which shall include the Office of the Deputy Director of Central Intelligence, the National Intelligence Council (as provided for in section 105(b)(3)), and such other offices as the Director may designate;
`(B) the Central Intelligence Agency;
`(C) the National Security Agency;
`(D) the Defense Intelligence Agency;
`(E) the central imagery authority within the Department of Defense;
`(F) the National Reconnaissance Office;
`(G) other offices within the Department of Defense for the collection of specialized national intelligence through reconnaissance programs;
`(H) the intelligence elements of the Army, the Navy, the Air Force, the Marine Corps, the Federal Bureau of Investigation, the Department of the Treasury, and the Department of Energy;
`(I) the Bureau of Intelligence and Research of the Department of State; and
`(J) such other elements of any other department or agency as may be designated by the President, or designated jointly by the Director of Central Intelligence and the head of the department or agency concerned, as an element of the intelligence community.
`(5) The terms `national intelligence' and `intelligence related to the national security'--
`(A) each refer to intelligence which pertains to the interests of more than one department or agency of the Government; and
`(B) do not refer to counterintelligence or law enforcement activities conducted by the Federal Bureau of Investigation except to the extent provided for in procedures agreed to by the Director of Central Intelligence and the Attorney General, or otherwise as expressly provided for in this title.
`(6) The term `National Foreign Intelligence Program' refers to all programs, projects, and activities of the intelligence community, as well as any other programs of the intelligence community designated jointly by the Director of Central Intelligence and the head of a United States department or agency or by the President. Such term does not include programs, projects, or activities of the military departments to acquire intelligence solely for the planning and conduct of tactical military operations by United States Armed Forces.'.
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SEC. 703. PARTICIPATION OF THE DIRECTOR OF CENTRAL INTELLIGENCE IN THE NATIONAL SECURITY COUNCIL.
Section 101 of the National Security Act of 1947 (50 U.S.C. 402) is amended by adding at the end thereof the following new subsection:
`(h) The Director of Central Intelligence (or, in the Director's absence, the Deputy Director of Central Intelligence) may, in the performance of the Director's duties under this Act and subject to the direction of the President, attend and participate in meetings of the National Security Council.'.
SEC. 704. APPOINTMENT OF THE DIRECTOR AND DEPUTY DIRECTOR OF CENTRAL INTELLIGENCE.
Section 102 of the National Security Act of 1947 (50 U.S.C. 403(a)) is amended--
(1) by inserting `(1)' after `(a)';
(2) in the first sentence of subsection (a)--
(A) by striking out `under the National Security Council'; and
(B) by striking out `with a Director' and all that follows through `disability'; and
(3) by striking out the second sentence of subsection (a) and subsections (b) through (f) and inserting in lieu thereof the following:
`(2) There shall be a Director of Central Intelligence who shall be appointed by the President, by and with the advice and consent of the Senate. The Director shall--
`(A) serve as head of the United States intelligence community;
`(B) act as the principal adviser to the President for intelligence matters related to the national security; and
`(C) serve as head of the Central Intelligence Agency.
`(b) To assist the Director of Central Intelligence in carrying out the Director's responsibilities under this Act, there shall be a Deputy Director of Central Intelligence, who shall be appointed by the President, by and with the advice and consent of the Senate, who shall act for, and exercise the powers of, the Director during the Director's absence or disability.
`(c)(1) The Director or Deputy Director of Central Intelligence may be appointed from among the commissioned officers of the Armed Forces, or from civilian life, but at no time shall both positions be simultaneously occupied by commissioned officers of the Armed Forces, whether in an active or retired status.
`(2) It is the sense of the Congress that under ordinary circumstances, it is desirable that either the Director or the Deputy Director be a commissioned officer of the Armed Forces or that either such appointee otherwise have, by training or experience, an appreciation of military intelligence activities and requirements.
`(3)(A) A commissioned officer of the Armed Forces appointed pursuant to paragraph (2) or (3), while serving in such position--
`(i) shall not be subject to supervision or control by the Secretary of Defense or by any officer or employee of the Department of Defense;
`(ii) shall not exercise, by reason of the officer's status as a commissioned officer, any supervision or control with respect to any of the military or civilian personnel of the Department of Defense except as otherwise authorized by law; and
`(iii) shall not be counted against the numbers and percentages of commissioned officers of the rank and grade of such officer authorized for the military department of which such officer is a member.
`(B) Except as provided in clause (i) or (ii) of paragraph (A), the appointment of a commissioned officer of the Armed Forces pursuant to paragraph (2) or (3) shall in no way affect the status, position, rank, or grade of such officer in the Armed Forces, or any emolument, perquisite, right, privilege, or benefit incident to or arising out of any such status, position, rank, or grade.
`(C) A commissioned officer of the Armed Forces appointed pursuant to subsection (a) or (b), while serving in such position, shall continue to receive military pay and allowances (including retired pay) payable to a commissioned officer of the officer's grade and length of service for which the appropriate military department shall be reimbursed from funds available to the Director of Central Intelligence.
`(d) The Office of the Director of Central Intelligence shall, for administrative purposes, be within the Central Intelligence Agency.'.
SEC. 705. RESPONSIBILITIES AND AUTHORITIES OF THE DIRECTOR OF CENTRAL INTELLIGENCE.
(a) In General: The National Security Act of 1947 (50 U.S.C. 401 et seq.) is amended--
(1) by striking out section 102a;
(2) by redesignating sections 103 and 104 as sections 107 and 108, respectively; and
(3) by inserting after section 102, as amended by section 721, the following new sections:
`(A) to the President;
`(B) to the heads of departments and agencies of the executive branch; and
`(C) to the Chairman of the Joint Chiefs of Staff and senior military commanders; and
`(D) where appropriate, to the Senate and House of Representatives and the committees thereof.
`(2) Such national intelligence should be timely, objective, independent of political considerations, and based upon all sources available to the intelligence community.
`(b) National Intelligence Council: (1)(A) There is established within the Office of the Director of Central Intelligence the National Intelligence Council (hereafter in this section referred to as the `Council'). The Council shall be composed of senior analysts within the intelligence community and substantive experts from the public and private sector, who shall be appointed by, report to, and serve at the pleasure of, the Director of Central Intelligence.
`(B) The Director shall prescribe appropriate security requirements for personnel appointed from the private sector as a condition of service on the Council to ensure the protection of intelligence sources and methods while avoiding, wherever possible, unduly intrusive requirements which the Director considers to be unnecessary for this purpose.
`(2) The Council shall--
`(A) produce national intelligence estimates for the Government, including, whenever the Council considers appropriate, alternative views held by elements of the intelligence community; and
`(B) otherwise assist the Director in carrying out the responsibilities described in subsection (a).
`(3) Within their respective areas of expertise and under the direction of the Director, the members of the Council shall constitute the senior intelligence advisers of the intelligence community for purposes of representing the views of the intelligence community within the Government.
`(4) The Director shall make available to the Council such staff as may be necessary to permit the Council to carry out its responsibilities under this subsection and shall take appropriate measures to ensure that the Council and its staff satisfy the needs of policymaking officials and other consumers of intelligence.
`(5) The heads of elements within the intelligence community shall, as appropriate, furnish such support to the Council, including the preparation of intelligence analyses, as may be required by the Director.
`(c) Head of the Intelligence Community: In the Director's capacity as head of the intelligence community, the Director shall--
`(1) develop and present to the President an annual budget for the National Foreign Intelligence Program of the United States;
`(2) establish the requirements and priorities to govern the collection of national intelligence by elements of the intelligence community;
`(3) promote and evaluate the utility of national intelligence to consumers within the Government;
`(4) eliminate waste and unnecessary duplication within the intelligence community;
`(5) protect intelligence sources and methods from unauthorized disclosure; and
`(6) perform such other functions as the President or the National Security Council may direct.
`(d) Head of the Central Intelligence Agency: In the Director's capacity as head of the Central Intelligence Agency, the Director shall--
`(1) collect intelligence through human sources and by other appropriate means, except that the Agency shall have no police, subpoena, or law enforcement powers or internal security functions;
`(2) provide overall direction for the collection of national intelligence through human sources by elements of the intelligence community authorized to undertake such collection and, in coordination with other agencies of the Government which are authorized to undertake such collection, ensure that the most effective use is made of resources and that the risks to the United States and those involved in such collection are minimized;
`(3) correlate and evaluate intelligence related to the national security and providing appropriate dissemination of such intelligence;
`(4) perform such additional services as are of common concern to the elements of the intelligence community, which services the Director of Central Intelligence determines can be more efficiently accomplished centrally; and
`(5) perform such other functions and duties related to intelligence affecting the national security as the President or the National Security Council may direct.
`(A) the funds or personnel are being transferred to an activity that is a higher priority intelligence activity;
`(B) the need for funds or personnel for such activity is based on unforeseen requirements;
`(C) the transfer does not involve a transfer of funds to the Reserve for Contingencies of the Central Intelligence Agency;
`(D) the transfer does not involve a transfer of funds or personnel from the Federal Bureau of Investigation; and
`(E) the Secretary or head of the department which contains the affected element or elements of the intelligence community does not object to such transfer.
`(3) Funds transferred under this subsection shall remain available for the same period as the appropriations account to which transferred.
`(4) Any transfer of funds under this subsection shall be carried out in accordance with existing procedures applicable to reprogramming notifications for the appropriate congressional committees. Any proposed transfer for which notice is given to the appropriate congressional committees shall be accompanied by a report explaining the nature of the proposed transfer and how it satisfies the requirements of this subsection. In addition, the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives shall be promptly notified of any transfer of funds made pursuant to this subsection in any case in which the transfer would not have otherwise required reprogramming notification under procedures in effect as of the date of the enactment of this section.
`(5) The Director shall promptly submit to the Select Committee on Intelligence of the Senate and to the Permanent Select Committee on Intelligence of the House of Representatives and, in the case of the transfer of personnel to or from the Department of Defense, the Committees on Armed Services of the Senate and House of Representatives, a report on any transfer of personnel made pursuant to this subsection. The Director shall include in any such report an explanation of the nature of the transfer and how it satisfies the requirements of this subsection.
`(e) Coordination With Foreign Governments: Under the direction of the National Security Council and in a manner consistent with section 207 of the Foreign Service Act of 1980 (22 U.S.C. 3927), the Director shall coordinate the relationships between elements of the intelligence community and the intelligence or security services of foreign governments on all matters involving intelligence related to the national security or involving intelligence acquired through clandestine means.
`(f) Use of Personnel: The Director shall, in coordination with the heads of departments and agencies with elements in the intelligence community, institute policies and programs within the intelligence community--
`(1) to provide for the rotation of personnel between the elements of the intelligence community, where appropriate, and to make such rotated service a factor to be considered for promotion to senior positions; and
`(2) to consolidate, wherever possible, personnel, administrative, and security programs to reduce the overall costs of these activities within the intelligence community.
`(g) Termination of Employment of CIA Employees: Notwithstanding the provisions of any other law, the Director may, in the Director's discretion, terminate the employment of any officer or employee of the Central Intelligence Agency whenever the Director shall deem such termination necessary or advisable in the interests of the United States. Any such termination shall not affect the right of the officer or employee terminated to seek or accept employment in any other department or agency of the Government if declared eligible for such employment by the Office of Personnel Management.'.
(b) Amendment to Table of Contents: The table of contents in the first section of the National Security Act of 1947 is amended by striking out the items relating to sections 102a and 103 and inserting in lieu thereof the following new items:
`Sec. 103. Responsibilities of the Director of Central Intelligence.
`Sec. 104. Authorities of the Director of Central Intelligence.
`Sec. 107. National Security Resources Board.
`Sec. 108. Annual National Security Strategy Report.'.
[Page: H10021]
SEC. 706. RESPONSIBILITIES OF THE SECRETARY OF DEFENSE PERTAINING TO THE NATIONAL FOREIGN INTELLIGENCE PROGRAM.
(a) In General: The National Security Act of 1947 (50 U.S.C. 401 et seq.) is amended by inserting after section 104 (as added by section 705) the following new sections:
`(1) ensure that the budgets of the elements of the intelligence community within the Department of Defense are adequate to satisfy the overall intelligence needs of the Department of Defense, including the needs of the chairman of the Joint Chiefs of Staff and the commanders of the unified and specified commands and, wherever such elements are performing governmentwide functions, the needs of other departments and agencies;
`(2) ensure appropriate implementation of the policies and resource decisions of the Director of Central Intelligence by elements of the Department of Defense within the National Foreign Intelligence Program;
`(3) ensure that the tactical intelligence activities of the Department of Defense complement and are compatible with intelligence activities under the National Foreign Intelligence Program;
`(4) ensure that the elements of the intelligence community within the Department of Defense are responsive and timely with respect to satisfying the needs of operational military forces;
`(5) eliminate waste and unnecessary duplication among the intelligence activities of the Department of Defense; and
`(6) ensure that intelligence activities of the Department of Defense are conducted jointly where appropriate.
`(b) Responsibility for the Performance of Specific Functions: Consistent with sections 103 and 104 of this Act, the Secretary of Defense shall ensure--
`(1) through the National Security Agency (except as otherwise directed by the President or the National Security Council), the continued operation of an effective unified organization for the conduct of signals intelligence activities and shall ensure that the product is disseminated in a timely manner to authorized recipients;
`(2) through a central imagery authority (except as otherwise directed by the President or the National Security Council), with appropriate representation from the intelligence community, the continued operation of an effective unified organization within the Department of Defense for carrying out tasking of imagery collection, for the coordination of imagery processing and exploitation activities, and for ensuring the dissemination of imagery in a timely manner to authorized recipients;
`(3) through the National Reconnaissance Office (except as otherwise directed by the President or the National Security Council), the continued operation of an effective unified organization for the research and development, acquisition, and operation of overhead reconnaissance systems necessary to satisfy the requirements of all elements of the intelligence community;
`(4) through the Defense Intelligence Agency (except as otherwise directed by the President or the National Security Council), the continued operation of an effective unified system within the Department of Defense for the production of timely, objective military and military-related intelligence, based upon all sources available to the intelligence community, and shall ensure the appropriate dissemination of such intelligence to authorized recipients;
`(5) through the Defense Intelligence Agency (except as otherwise directed by the President or the National Security Council), effective management of Department of Defense human intelligence activities, including defense attaches; and
`(6) that the military departments maintain sufficient capabilities to collect and produce intelligence to meet--
`(A) the requirements of the Director of Central Intelligence;
`(B) the requirements of the Secretary of Defense or the Chairman of the Joint Chiefs of Staff;
`(C) the requirements of the unified and specified combatant commands and of joint operations; and
`(D) the specialized requirements of the military departments for intelligence necessary to support tactical commanders, military planners, the research and development process, the acquisition of military equipment, and training and doctrine.
`(c) Use of Elements of Department of Defense: The Secretary of Defense, in carrying out the functions described in this section, may use such elements of the Department of Defense as may be appropriate for the execution of those functions, in addition to, or in lieu of, the elements identified in this section.
`Sec. 105. Responsibilities of the Secretary of Defense pertaining to the National Foreign Intelligence Program.
`Sec. 106. Administrative provisions pertaining to defense elements within the intelligence community.'.
[Page: H10022]
TITLE VIII--RESTATEMENT OF CIARDS STATUTE
SEC. 801. SHORT TITLE.
This title may be cited as the `CIARDS Technical Corrections Act of 1992'.
SEC. 802. RESTATEMENT OF ACT.
The Central Intelligence Agency Retirement Act of 1964 for Certain Employees (50 U.S.C. 403 note) is amended to read as follows:
`SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
`(a) Short Title: This Act may be cited as the `Central Intelligence Agency Retirement Act'.
`(b) Table of Contents: The table of contents for this Act is as follows:
`Sec. 1. Short title; table of contents.
`Sec. 101. Definitions relating to the system.
`Sec. 102. Definitions relating to participants and annuitants.
`Sec. 201. The CIARDS system.
`Sec. 202. Central Intelligence Agency Retirement and Disability Fund.
`Sec. 203. Participants in the CIARDS system.
`Sec. 204. Annuitants.
`Sec. 211. Contributions to fund.
`Sec. 221. Computation of annuities.
`Sec. 222. Annuities for former spouses.
`Sec. 223. Election of survivor benefits for certain former spouses divorced as of November 15, 1982.
`Sec. 224. Survivor annuity for certain other former spouses.
`Sec. 225. Retirement annuity for certain former spouses.
`Sec. 226. Survivor annuities for previous spouses.
`Sec. 231. Retirement for disability or incapacity--medical examination--recovery.
`Sec. 232. Death in service.
`Sec. 233. Voluntary retirement.
`Sec. 234. Discontinued service benefits.
`Sec. 235. Mandatory retirement.
`Sec. 236. Eligibility for annuity.
`Sec. 241. Lump-sum payments.
`Sec. 251. Computation of length of service.
`Sec. 252. Prior service credit.
`Sec. 253. Credit for service while on military leave.
`Sec. 261. Estimate of appropriations needed.
`Sec. 262. Investment of moneys in the fund.
`Sec. 263. Payment of benefits.
`Sec. 264. Attachment of moneys.
`Sec. 265. Recovery of payments.
`Sec. 271. Recall.
`Sec. 272. Reemployment.
`Sec. 273. Reemployment compensation.
`Sec. 281. Voluntary contributions.
`Sec. 291. Cost-of-living adjustment of annuities.
`Sec. 292. Authority to maintain existing areas of conformity between Civil Service and Central Intelligence Agency Retirement and Disability Systems.
`Sec. 293. Thrift savings plan participation.
`Sec. 294. Alternative forms of annuities.
`Sec. 295. Payments from CIARDS fund for portions of certain Civil Service Retirement System annuities.
`Sec. 301. Application of Federal Employees' Retirement System to Agency employees.
`Sec. 302. Special rules relating to section 203 criteria employees.
`Sec. 303. Special rules for other employees for service abroad.
`Sec. 304. Special rules for former spouses.
`Sec. 305. Administrative provisions.
`Sec. 306. Regulations.
`Sec. 307. Transition regulations.
`TITLE I--DEFINITIONS
`SEC. 101. DEFINITIONS RELATING TO THE SYSTEM.
`When used in this Act:
`(1) Agency.--The term `Agency' means the Central Intelligence Agency.
`(2) Director.--The term `Director' means the Director of Central Intelligence.
`(3) Qualifying service.--The term `qualifying service' means service determined by the Director to have been performed in carrying out duties described in section 203.
`(4) Fund balance.--The term `fund balance' means the sum of--
`(A) the investments of the fund calculated at par value; and
`(B) the cash balance of the fund on the books of the Treasury.
`(5) Unfunded liability.--The term `unfunded liability' means the estimated amount by which--
`(A) the present value of all benefits payable from the fund exceeds
`(B) the sum of--
`(i) the present value of deductions to be withheld from the future basic pay of participants subject to title II and of future Agency contributions to be made on the behalf of such participants;
`(ii) the present value of Government payments to the fund under sections 261(c) and 261(d); and
`(iii) the fund balance as of the date on which the unfunded liability is determined.
`(6) Normal cost.--The term `normal cost' means the level percentage of payroll required to be deposited in the fund to meet the cost of benefits payable under the system (computed in accordance with generally accepted actuarial practice on an entry-age basis) less the value of retirement benefits earned under another retirement system for government employees and less the cost of credit allowed for military service.
`(7) Lump-sum credit: The term `lump-sum credit' means the unrefunded amount consisting of retirement deductions made from a participant's basic pay, amounts deposited by a participant covering earlier service, including any amounts deposited under section 252(h), and interest determined under section 281.
`(8) Congressional intelligence committees.--The term `congressional intelligence committees' means the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate.
`(9) Employee.--The term `employee' includes an officer of the Agency.
`SEC. 102. DEFINITIONS RELATING TO PARTICIPANTS AND ANNUITANTS.
`(a) General Definitions: When used in title II:
`(1) Former participant.--The term `former participant' means a person who--
`(A) while an employee of the Agency was a participant in the system; and
`(B) separates from the Agency without entitlement to immediate receipt of an annuity from the fund.
`(2) Retired participant.--The term `retired participant' means a person who--
`(A) while an employee of the Agency was a participant in the system; and
`(B) is entitled to receive an annuity from the fund based upon such person's service as a participant.
`(3) Surviving spouse:
`(A) In general: The term `surviving spouse' means the surviving wife or husband of a participant or retired participant who (i) was married to the participant or retired participant for at least 9 months immediately preceding the participant's or retired participant's death, or (ii) who is the parent of a child born of the marriage.
`(B) Treatment when participant dies less than 9 months after marriage: In a case in which the participant or retired participant dies within the 9-month period beginning on the date of the marriage, the requirement under subparagraph (A)(i) that a marriage have a duration of at least 9 months immediately preceding the death of the participant or retired participant shall be treated as having been met if--
`(i) the death of the participant or retired participant was accidental; or
`(ii) the surviving wife or husband had been previously married to the participant or retired participant (and subsequently divorced) and the aggregate time married is at least 9 months.
`(4) Former spouse: The term `former spouse' means a former wife or husband of a participant, former participant, or retired participant as follows:
`(A) Divorces on or before december 4, 1991: In the case of a divorce that became final on or before December 4, 1991, such term means a former wife or husband of a participant, former participant, or retired participant who was married to such participant for not less than 10 years during periods of the participant's creditable service, at least 5 years of which were spent outside the United States by both such participant and former wife or husband during the participant's service as an employee of the Agency.
`(B) Divorces after december 4, 1991: In the case of a divorce that becomes final after December 4, 1991, such term means a former wife or husband of a participant, former participant, or retired participant who was married to such participant for not less than 10 years during periods of the participant's creditable service, at least 5 years of which were spent by the participant during the participant's service as an employee of the Agency (i) outside the United States, or (ii) otherwise in a position the duties of which qualified the participant for designation by the Director as a participant under section 203.
`(C) Creditable service: For purposes of subparagraphs (A) and (B), the term `creditable service' means all periods of a participant's service that are creditable under sections 251, 252, and 253.
`(5) Previous spouse.--The term `previous spouse' means an individual who was married for at least 9 months to a participant, former participant, or retired participant who had at least 18 months of service which are creditable under sections 251, 252, and 253.
`(6) Spousal agreement.--The term `spousal agreement' means an agreement between a participant, former participant, or retired participant and the participant, former participant, or retired participant's spouse or former spouse that--
`(A) is in writing, is signed by the parties, and is notarized;
`(B) has not been modified by court order; and
`(C) has been authenticated by the Director.
`(7) Court order.--The term `court order' means--
`(A) a court decree of divorce, annulment, or legal separation; or
`(B) a court order or court-approved property settlement agreement incident to such court decree of divorce, annulment, or legal separation.
`(8) Court.--The term `court' means a court of a State, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, or the Virgin Islands, and any Indian court.
`(b) Definition of Child: For purposes of sections 221 and 232:
`(1) In general: The term `child' means any of the following:
`(A) Minor children: An unmarried dependent child under 18 years of age, including--
`(i) an adopted child;
`(ii) a stepchild, but only if the stepchild lived with the participant or retired participant in a regular parent-child relationship;
`(iii) a recognized natural child; and
`(iv) a child who lived with the participant, for whom a petition of adoption was filed by the participant or retired participant, and who is adopted by the surviving spouse after the death of the participant or retired participant.
`(B) Disabled adult children: An unmarried dependent child, regardless of age, who is incapable of self-support because of a physical or mental disability incurred before age 18.
`(C) Students: An unmarried dependent child between 18 and 22 years of age who is a student regularly pursuing a full-time course of study or training in residence in a high school, trade school, technical or vocational institute, junior college, college, university, or comparable recognized educational institution.
`(2) Special rules for students:
`(A) Extension of age termination of status as `child': For purposes of this subsection, a child whose 22nd birthday occurs before July 1 or after August 31 of a calendar year, and while regularly pursuing such a course of study or training, shall be treated as having attained the age of 22 on the first day of July following that birthday.
`(B) Treatment of interim period between school years: A child who is a student is deemed not to have ceased to be a student during an interim between school years if the interim does not exceed 5 months and if the child shows to the satisfaction of the Director that the child has a bona fide intention of continuing to pursue a course of study or training in the same or different school during the school semester (or other period into which the school year is divided) immediately following the interim.
`(3) Dependent defined: For purposes of this subsection, the term `dependent', with respect to the child of a participant or retired participant, means that the participant or retired participant was, at the time of the death of the participant or retired participant, either living with or contributing to the support of the child, as determined in accordance with regulations prescribed under title II.
`(4) Exclusion of stepchildren from lump-sum payment: For purposes of section 241(c), the term `child' includes an adopted child and a natural child, but does not include a stepchild.
[Page: H10023]
`TITLE II--THE CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM
`Part A--Establishment of System
`SEC. 201. THE CIARDS SYSTEM.
`(a) In General:
`(1) Establishment of system: There is a retirement and disability system for certain employees of the Central Intelligence Agency known as the Central Intelligence Agency Retirement and Disability System (hereinafter in this Act referred to as the `system'), originally established pursuant to title II of the Central Intelligence Agency Retirement Act of 1964 for Certain Employees.
`(2) DCI regulations: The Director shall prescribe regulations for the system. The Director shall submit any proposed regulations for the system to the congressional intelligence committees not less than 14 days before they take effect.
`(b) Administration of System.--The Director shall administer the system in accordance with regulations prescribed under this title and with the principles established by this title.
`(c) Finality of Decisions of DCI.--In the interests of the security of the foreign intelligence activities of the United States and in order further to implement the proviso of section 102(d)(3) of the National Security Act of 1947 (50 U.S.C. 403(d)(3)) that the Director of Central Intelligence shall be responsible for protecting intelligence sources and methods from unauthorized disclosure, and notwithstanding the provisions of chapter 7 of title 5, United States Code, or any other provision of law (except section 305(b) of this Act), any determination by the Director authorized by this Act shall be final and conclusive and shall not be subject to review by any court.
`SEC. 202. CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY FUND.
`The Director shall maintain the fund in the Treasury known as the `Central Intelligence Agency Retirement and Disability Fund' (hereinafter in this Act referred to as the `fund'), originally created pursuant to title II of the Central Intelligence Agency Retirement Act of 1964 for Certain Employees.
`SEC. 203. PARTICIPANTS IN THE CIARDS SYSTEM.
`(a) Designation of Participants.--The Director may from time to time designate employees of the Agency who shall be entitled to participate in the system. Employees so designated who elect to participate in the system are referred to in this Act as `participants'.
`(b) Qualifying Service.--Designation of employees under this section may be made only from among employees of the Agency who have completed at least 5 years of qualifying service. For purposes of this Act, qualifying service is service in the Agency performed in carrying out duties that are determined by the Director--
`(1) to be in support of Agency activities abroad hazardous to life or health; or
`(2) to be so specialized because of security requirements as to be clearly distinguishable from normal government employment.
`(c) Election of Employee To Be a Participant.--
`(1) Permanence of election: An employee of the Agency who elects to accept designation as a participant in the system shall remain a participant of the system for the duration of that individual's employment with the Agency.
`(2) Irrevocability of election: Such an election shall be irrevocable except as and to the extent provided in section 301(d).
`(3) Election not subject to approval: An election under this section is not subject to review or approval by the Director.
`SEC. 204. ANNUITANTS.
`Persons who are annuitants under the system are--
`(1) those persons who, on the basis of their service in the Agency, have met all requirements for an annuity under this title or any other Act and are receiving an annuity from the fund; and
`(2) those persons who, on the basis of someone else's service, meet all the requirements under this title or any other Act for an annuity payable from the fund.
`Part B--Contributions
`SEC. 211. CONTRIBUTIONS TO FUND.
`(a) In General:
`(1) Participant's contributions: Except as provided in subsection (d), 7 percent of the basic pay received by a participant for any pay period shall be deducted and withheld from the pay of that participant and contributed to the fund.
`(2) Agency contributions: An equal amount shall be contributed to the fund for that pay period from the appropriation or fund which is used for payment of the participant's basic pay.
`(3) Deposits to the fund: The amounts deducted and withheld from basic pay, together with the amounts so contributed from the appropriation or fund, shall be deposited by the Director to the credit of the fund.
`(b) Consent of Participant To Deductions From Pay: Each participant shall be deemed to consent and agree to such deductions from basic pay, and payment less such deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for all regular services during the period covered by such payment, except the right to the benefits to which the participant is entitled under this title, notwithstanding any law, rule, or regulation affecting the individual's pay.
`(c) Treatment of Contributions After 35 Years of Service.--
`(1) Accrual of interest.--Amounts deducted and withheld from the basic pay of a participant under this section for pay periods after the first day of the first pay period beginning after the day on which the participant completes 35 years of creditable service computed under sections 251 and 252 (excluding service credit for unused sick leave under section 221(a)(2)) shall accrue interest. Such interest shall accrue at the rate of 3 percent a year through December 31, 1984, and thereafter at the rate computed under section 8334(e) of title 5, United States Code, and shall be compounded annually from the date on which the amount is so deducted and withheld until the date of the participant's retirement or death.
`(2) Use of amounts withheld after 35 years of service.--
`(A) Use for deposits due under section 252(b): Amounts described in paragraph (1), including interest accrued on such amounts, shall be applied upon the participant's retirement or death toward any deposit due under section 252(b).
`(B) Lump-sum payment: Any balance of such amounts not so required for such a deposit shall be refunded to the participant in a lump sum after the participant's separation (or, in the event of a death in service, to a beneficiary in order of precedence specified in subsection 241(c)), subject to the requirement under section 241(b)(4).
`(C) Purchases of additional elective benefits: In lieu of such a lump-sum payment, the participant may use such amounts--
`(i) to purchase an additional annuity in accordance with section 281; or
`(ii) provide any additional survivor benefit for a current or former spouse or spouses.
`(d) Offset for Social Security Taxes.--
`(1) Persons covered: In the case of a participant who was a participant subject to this title before January 1, 1984, and whose service--
`(A) is employment for the purposes of title II of the Social Security Act and chapter 21 of the Internal Revenue Code of 1954, and
`(B) is not creditable service for any purpose under title III of this Act or chapter 84 of title 5, United States Code,
there shall be deducted and withheld from the basic pay of the participant under this section during any pay period only the amount computed under paragraph (2).
`(2) Reduction in contribution: The amount deducted and withheld from the basic pay of a participant during any pay period pursuant to paragraph (1) shall be the excess of--
`(A) the amount determined by multiplying the percent applicable to the participant under subsection (a) by the basic pay payable to the participant for that pay period, over
`(B) the amount of the taxes deducted and withheld from such basic pay under section 3101(a) of the Internal Revenue Code of 1954 (relating to old-age, survivors, and disability insurance) for that pay period.
`Part C--Computation of Annuities
`SEC. 221. COMPUTATION OF ANNUITIES.
`(a) Annuity of Participant.--
`(1) Computation of annuity.--The annuity of a participant is the product of--
`(A) the participant's high-3 average pay (as defined in paragraph (4)); and
`(B) the number of years, not exceeding 35, of service credit (determined in accordance with sections 251 and 252) multiplied by 2 percent.
`(2) Credit for unused sick leave.--The total service of a participant who retires on an immediate annuity (except under section 231) or who dies leaving a survivor or survivors entitled to an annuity shall include (without regard to the 35-year limitation prescribed in paragraph (1)) the days of unused sick leave to the credit of the participant. Days of unused sick leave may not be counted in determining average basic pay or eligibility for an annuity under this title. A deposit shall not be required for days of unused sick leave credited under this paragraph.
`(3) Crediting of part-time service:
`(A) In general: In the case of a participant whose service includes service on a part-time basis performed after April 6, 1986, the participant's annuity shall be the sum of the amounts determined under subparagraphs (B) and (C).
`(B) Computation of pre-april 7, 1986, annuity: The portion of an annuity referred to in subparagraph (A) with respect to service before April 7, 1986, shall be the amount computed under paragraph (1) using the participant's length of service before that date (increased by the unused sick leave to the credit of the participant at the time of retirement) and the participant's high-3 average pay.
`(C) Computation of post-april 6, 1986, annuity: The portion of an annuity referred to in subparagraph (A) with respect to service after April 6, 1986, shall be the product of--
`(i) the amount computed under paragraph (1), using the participant's length of service after that date and the participant's high-3 average pay, as determined by using the annual rate of basic pay that would be payable for full-time service; and
`(ii) the ratio which the participant's actual service after April 6, 1986 (as determined by prorating the participant's total service after that date to reflect the service that was performed on a part-time basis) bears to the total service after that date that would be creditable for the participant if all the service had been performed on a full-time basis.
`(D) Treatment of employment on temporary or intermittent basis: Employment on a temporary or intermittent basis shall not be considered to be service on a part-time basis for purposes of this paragraph.
`(4) High-3 average pay defined: For purposes of this subsection, a participant's high-3 average pay is the amount of the participant's average basic pay for the highest 3 consecutive years of the participant's service (or, in the case of an annuity computed under section 232 and based on less than 3 years, over the total service) for which full contributions have been made to the fund.
`(5) Computation of service: In determining the aggregate period of service upon which an annuity is to be based, any fractional part of a month shall not be counted.
`(b) Spouse or Former Spouse Survivor Annuity:
`(1) Reduction in participant's annuity to provide spouse or former spouse survivor annuity.--
`(A) General rule.--Except to the extent provided otherwise under a written election under subparagraph (B) or (C), if at the time of retirement a participant or former participant is married (or has a former spouse who has not remarried before attaining age 55), the participant shall receive a reduced annuity and provide a survivor annuity for the participant's spouse under this subsection or former spouse under section 222(b), or a combination of such annuities, as the case may be.
`(B) Joint election for waiver or reduction of spouse survivor annuity.--A married participant or former participant and the participant's spouse may jointly elect in writing at the time of retirement to waive a survivor annuity for that spouse under this section or to reduce such survivor annuity under this section by designating a portion of the annuity of the participant as the base for the survivor annuity. If the marriage is dissolved following an election for such a reduced annuity and the spouse qualifies as a former spouse, the base used in calculating any annuity of the former spouse under section 222(b) may not exceed the portion of the participant's annuity designated under this subparagraph.
`(C) Joint election of participant and former spouse.--If a participant or former participant has a former spouse, such participant and the participant's former spouse may jointly elect by spousal agreement under section 264(b) to waive, reduce, or increase a survivor annuity under section 222(b) for that former spouse. Any such election must be made (i) before the end of the 12-month period beginning on the date on which the divorce or annulment involving that former spouse becomes final, or (ii) at the time of retirement of the participant, whichever is later.
`(D) Unilateral elections in absence of spouse or former spouse.--The Director may prescribe regulations under which a participant or former participant may make an election under subparagraph (B) or (C) without the participant's spouse or former spouse if the participant establishes to the satisfaction of the Director that the participant does not know, and has taken all reasonable steps to determine, the whereabouts of the spouse or former spouse.
`(2) Amount of reduction in participant's annuity.--The annuity of a participant or former participant providing a survivor annuity under this section (or section 222(b)), excluding any portion of the annuity not designated or committed as a base for any survivor annuity, shall be reduced by 2 1/2 percent of the first $3,600 plus 10 percent of any amount over $3,600. The reduction under this paragraph shall be calculated before any reduction under section 222(a)(5).
`(3) Amount of surviving spouse annuity.--
`(A) In general: If a retired participant receiving a reduced annuity under this subsection dies and is survived by a spouse, a survivor annuity shall be paid to the surviving spouse. The amount of the annuity shall be equal to 55 percent of (i) the full amount of the participant's annuity computed under subsection (a), or (ii) any lesser amount elected as the base for the survivor annuity under paragraph (1)(B).
`(B) Limitation.--Notwithstanding subparagraph (A), the amount of the annuity calculated under subparagraph (A) for a surviving spouse in any case in which there is also a surviving former spouse of the retired participant who qualifies for an annuity under section 222(b) may not exceed 55 percent of the portion (if any) of the base for survivor annuities which remains available under section 222(b)(4)(B).
`(C) Effective date and termination of annuity.--An annuity payable from the fund to a surviving spouse under this paragraph shall commence on the day after the retired participant dies and shall terminate on the last day of the month before the surviving spouse's death or remarriage before attaining age 55. If such survivor annuity is terminated because of remarriage, it shall be restored at the same rate commencing on the date such remarriage is dissolved by death, annulment, or divorce if any lump sum paid upon termination of the annuity is returned to the fund.
`(c) 18-Month Open Period After Retirement to Provide Spouse Coverage:
`(1) Survivor annuity elections:
`(A) Election when spouse coverage waived at time of retirement: A participant or former participant who retires after March 31, 1992 and who--
`(i) is married at the time of retirement; and
`(ii) 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 the 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 the participant's spouse.
`(B) Election when reduced spouse annuity elected.--A participant or former participant who retires after March 31, 1992, and--
`(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) Deposit required.--
`(A) Requirement.--An election under paragraph (1) shall not be effective unless the amount specified in subparagraph (B) is deposited into the fund before the end of that 18-month period.
`(B) Amount of deposit.--The amount to be deposited with respect to an election under this subsection is the amount equal to the sum of the following:
`(i) Additional cost to system.--The additional cost to the system that is associated with providing a survivor annuity under subsection (b) and that 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
`(II) the costs associated with providing for the later election.
`(ii) Interest.--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) Voiding of previous elections.--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) Reductions in annuity.--An annuity that 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 reduced annuity election: Rights and obligations resulting from the election of a reduced annuity under this subsection shall be the same as the rights and obligations that would have resulted had the participant involved elected such annuity at the time of retirement.
`(d) Annuities for Surviving Children:
`(1) Participants dying before april 1, 1992: In the case of a retired participant who died before April 1, 1992, and who is survived by a child or children--
`(A) if the retired participant was survived by a spouse, there shall be paid from the fund to or on behalf of each such surviving child an annuity determined under paragraph (3)(A); and
`(B) if the retired participant was not survived by a spouse, there shall be paid from the fund to or on behalf of each such surviving child an annuity determined under paragraph (3)(B).
`(2) Participants dying on or after april 1, 1992: In the case of a retired participant who dies on or after April 1, 1992, and who is survived by a child or children--
`(A) if the retired participant is survived by a spouse or former spouse who is the natural or adoptive parent of a surviving child of the participant, there shall be paid from the fund to or on behalf of each such surviving child an annuity determined under paragraph (3)(A); and
`(B) if the retired participant is not survived by a spouse or former spouse who is the natural or adoptive parent of a surviving child of the participant, there shall be paid to or on behalf of each such surviving child an annuity determined under paragraph (3)(B).
`(3) Amount of annuity:
`(A) The annual amount of an annuity for the surviving child of a participant covered by paragraph (1)(A) or (2)(A) of this subsection (or covered by paragraph (1)(A) or (2)(A) of section 232(c)) is the smallest of the following:
`(i) 60 percent of the participant's high-3 average pay, as determined under subsection (a)(4), divided by the number of children.
`(ii) $900, as adjusted under section 291.
`(iii) $2,700, as adjusted under section 291, divided by the number of children.
`(B) The amount of an annuity for the surviving child of a participant covered by paragraph (1)(B) or (2)(B) of this subsection (or covered by paragraph (1)(B) or (2)(B) of section 232(c)) is the smallest of the following:
`(i) 75 percent of the participant's high-3 average pay, as determined under subsection (a)(4), divided by the number of children.
`(ii) $1,080, as adjusted under section 291.
`(iii) $3,240, as adjusted under section 291, divided by the number of children.
`(4) Recomputation of child annuities.--
`(A) In the case of a child annuity payable under paragraph (1), upon the death of a surviving spouse or the termination of the annuity of a child, the annuities of any remaining children shall be recomputed and paid as though the spouse or child had not survived the retired participant.
`(B) In the case of a child annuity payable under paragraph (2), upon the death of a surviving spouse or former spouse or termination of the annuity of a child, the annuities of any remaining children shall be recomputed and paid as though the spouse, former spouse, or child had not survived the retired participant. If the annuity of a surviving child who has not been receiving an annuity is initiated or resumed, the annuities of any other children shall be recomputed and paid from that date as though the annuities of all currently eligible children were then being initiated.
`(5) Definition of former spouse.--For purposes of this subsection, the term `former spouse' includes any former wife or husband of the retired participant, regardless of the length of marriage or the amount of creditable service completed by the participant.
`(e) Commencement and Termination of Child Annuities:
`(1) Commencement: An annuity payable to a child under subsection (d), or under section 232(c), shall begin on the day after the date on which the participant or retired participant dies or, in the case of an individual over the age of 18 who is not a child within the meaning of section 102(b), shall begin or resume on the first day of the month in which the individual later becomes or again becomes a student as described in section 102(b). Such annuity may not commence until any lump-sum that has been paid is returned to the fund.
`(2) Termination: Such an annuity shall terminate on the last day of the month before the month in which the recipient of the annuity dies or no longer qualifies as a child (as defined in section 102(b)).
`(f) Participants Not Married at Time of Retirement:
`(1) Designation of persons with insurable interest:
`(A) Authority to make designation.--Subject to the rights of former spouses under sections 221(b) and 222, at the time of retirement an unmarried participant found by the Director to be in good health may elect to receive an annuity reduced in accordance with subparagraph (B) and designate in writing an individual having an insurable interest in the participant to receive an annuity under the system. The amount of such an annuity shall be equal to 55 percent of the participant's reduced annuity after the participant's death.
`(B) Reduction in participant's annuity.--The annuity payable to the participant making such election shall be reduced by 10 percent of an annuity computed under subsection (a) and by an additional 5 percent for each full 5 years the designated individual is younger than the participant. The total reduction under this subparagraph may not exceed 40 percent.
`(C) Commencement of survivor annuity.--The annuity payable to the designated individual shall begin on the day after the retired participant dies and terminate on the last day of the month before the designated individual dies.
`(D) Recomputation of participant's annuity on death of designated individual.--An annuity which is reduced under this paragraph shall, effective the first day of the month following the death of the designated individual, be recomputed and paid as if the annuity had not been so reduced.
`(2) Election of survivor annuity upon subsequent marriage.--A participant who is unmarried at the time of retirement and who later marries may irrevocably elect, in a signed writing received by the Director within one year after the marriage, to receive a reduced annuity as provided in section 221(b). Such election and reduction shall be effective on the first day of the month beginning 9 months after the date of marriage. The election voids prospectively any election previously made under paragraph (1).
`(g) Effect of Divorce After Retirement.--
`(1) Recomputation of retired participant's annuity upon divorce.--An annuity which is reduced under this section (or any similar prior provision of law) to provide a survivor annuity for a spouse shall, if the marriage of the retired participant to such spouse is dissolved, be recomputed and paid for each full month during which a retired participant is not married (or is remarried if there is no election in effect under paragraph (2)) as if the annuity had not been so reduced, subject to any reduction required to provide a survivor annuity under subsection (b) or (c) of section 222 or under section 226.
`(2) Election of survivor annuity upon subsequent remarriage:
`(A) In general: Upon remarriage, the retired participant may irrevocably elect, by means of a signed writing received by the Director within one year after such remarriage, to receive a reduced annuity for the purpose of providing an annuity for the new spouse of the retired participant in the event such spouse survives the retired participant. Such reduction shall be equal to the reduction in effect immediately before the dissolution of the previous marriage (unless such reduction is adjusted under section 222(b)(5) or elected under subparagraph (B)).
`(B) When annuity previously not (or not fully) reduced:
`(i) Election: If the retired participant's annuity was not reduced (or was not fully reduced) to provide a survivor annuity for the participant's spouse or former spouse as of the time of retirement, the retired participant may make an election under the first sentence of subparagraph (A) upon remarriage to a spouse other than the spouse at the time of retirement. For any remarriage that occurred before August 14, 1991, the retired participant may make such an election within 2 years after such date.
`(ii) Deposit required:
`(I) The retired participant shall, within one year after the date of the remarriage (or by August 14, 1993 for any remarriage that occurred before August 14, 1991), deposit in the fund an amount determined by the Director, as nearly as may be administratively feasible, to reflect the amount by which the retired participant's annuity would have been reduced if the election had been in effect since the date the annuity commenced, plus interest.
`(II) The annual rate of interest for each year during which the retired participant's annuity would have been reduced if the election had been in effect since the date the annuity commenced shall be 6 percent.
`(III) If the retired participant does not make the deposit, the Director shall collect such amount by offset against the participant's annuity, up to a maximum of 25 percent of the net annuity otherwise payable to the retired participant, and the retired participant is deemed to consent to such offset.
`(IV) The deposit required by this subparagraph may be made by the surviving spouse of the retired participant.
`(C) Effects of election: An election under this paragraph and the reduction in the participant's annuity shall be effective on the first day of the month beginning 9 months after the date of remarriage. A survivor annuity elected under this paragraph shall be treated in all respects as a survivor annuity under subsection (b).
`(h) Coordination of Annuities:
`(1) Surviving spouse: A surviving spouse whose survivor annuity was terminated because of remarriage before attaining age 55 shall not be entitled under subsection (b)(3)(C) to the restoration of that survivor annuity payable from the fund unless the surviving spouse elects to receive it instead of any other survivor annuity to which the surviving spouse may be entitled under the system or any other retirement system for Government employees by reason of the remarriage.
`(2) Former spouse: A surviving former spouse of a participant or retired participant shall not become entitled under section 222(b) or 224 to a survivor annuity or to the restoration of a survivor annuity payable from the fund unless the surviving former spouse elects to receive it instead of any other survivor annuity to which the surviving former spouse may be entitled under this or any other retirement system for Government employees on the basis of a marriage to someone other than the participant.
`(3) Surviving spouse of post-retirement marriage: A surviving spouse who married a participant after the participant's retirement shall be entitled to a survivor annuity payable from the fund only upon electing that annuity instead of any other survivor annuity to which the surviving spouse may be entitled under this or any other retirement system for Government employees on the basis of a marriage to someone other than the retired participant.
`(i) Supplemental Survivor Annuities:
`(1) Spouse of recalled annuitant: A married recalled annuitant who reverts to retired status with entitlement to a supplemental annuity under section 271(b) shall, unless the annuitant and the annuitant's spouse jointly elect in writing to the contrary at the time of reversion to retired status, have the supplemental annuity reduced by 10 percent to provide a supplemental survivor annuity for the annuitant's spouse. Such supplemental survivor annuity shall be equal to 55 percent of the supplemental annuity of the annuitant.
`(2) Regulations.--The Director shall prescribe regulations to provide for the application of paragraph (1) of this subsection and of subsection (b) of section 271 in any case in which an annuitant has a former spouse who was married to the recalled annuitant at any time during the period of recall service and who qualifies for an annuity under section 222(b).
`(j) Offset of Annuities by Amount of Social Security Benefit: Notwithstanding any other provision of this title, an annuity (including a disability annuity) payable under this title to an individual described in sections 211(d)(1) and 301(c)(1) and any survivor annuity payable under this title on the basis of the service of such individual shall be reduced (except as provided in paragraph (2)) in a manner consistent with section 8349 of title 5, United States Code, under conditions consistent with the conditions prescribed in that section.
`(k) Information From Other Agencies:
`(1) Other agencies: For the purpose of ensuring the accuracy of the information used in the determination of eligibility for and the computation of annuities payable from the fund under this title, at the request of the Director--
`(A) the Secretary of Defense shall provide information on retired or retainer pay paid under title 10, United States Code;
`(B) the Secretary of Veterans Affairs shall provide information on pensions or compensation paid under title 38, United States Code;
`(C) the Secretary of Health and Human Services shall provide information contained in the records of the Social Security Administration; and
`(D) the Secretary of Labor shall provide information on benefits paid under subchapter I of chapter 81 of title 5, United States Code.
`(2) Limitation on information requested.--The Director shall request only such information as the Director determines is necessary.
`(3) Limitation on uses of information.--The Director, in consultation with the officials from whom information is requested, shall ensure that information made available under this subsection is used only for the purposes authorized.
`(l) Information on Rights Under the System: The Director shall, on an annual basis--
`(1) inform each retired participant of the participant's right of election under subsections (c), (f)(2), and (g); and
`(2) to the maximum extent practicable, inform spouses and former spouses of participants, former participants, and retired participants of their rights under this Act.
[Page: H10026]
`SEC. 222. ANNUITIES FOR FORMER SPOUSES.
`(a) Former Spouse Share of Participant's Annuity:
`(1) Pro rata share.--Unless otherwise expressly provided by a spousal agreement or court order under section 264(b), a former spouse of a participant, former participant, or retired participant is entitled to an annuity--
`(A) if married to the participant, former participant, or retired participant throughout the creditable service of the participant, equal to 50 percent of the annuity of the participant; or
`(B) if not married to the participant throughout such creditable service, equal to that proportion of 50 percent of such annuity that is the proportion that the number of days of the marriage of the former spouse to the participant during periods of creditable service of such participant under this title bears to the total number of days of such creditable service.
`(2) Disqualification upon remarriage before age 55: A former spouse is not qualified for an annuity under this subsection if before the commencement of that annuity the former spouse remarries before becoming 55 years of age.
`(3) Commencement of annuity.--The annuity of a former spouse under this subsection commences on the day the participant upon whose service the annuity is based becomes entitled to an annuity under this title or on the first day of the month after the divorce or annulment involved becomes final, whichever is later.
`(4) Termination of annuity.--The annuity of such former spouse and the right thereto terminate on--
`(A) the last day of the month before the month in which the former spouse dies or remarries before 55 years of age; or
`(B) the date on which the annuity of the participant terminates (except in the case of an annuity subject to paragraph (5)(B)).
`(5) Treatment of participant's annuity:
`(A) Reduction in participant's annuity.--The annuity payable to any participant shall be reduced by the amount of an annuity under this subsection paid to any former spouse based upon the service of that participant. Such reduction shall be disregarded in calculating--
`(i) the survivor annuity for any spouse, former spouse, or other survivor under this title; and
`(ii) any reduction in the annuity of the participant to provide survivor benefits under subsection (b) or under section 221(b).
`(B) Treatment when annuitant returns to service.--If an annuitant whose annuity is reduced under subparagraph (A) is recalled to service under section 271, or reinstated or reappointed, in the case of a recovered disability annuitant, or if any annuitant is reemployed as provided for under sections 272 and 273, the pay of that annuitant shall be reduced by the same amount as the annuity would have been reduced if it had continued. Amounts equal to the reductions under this subparagraph shall be deposited in the Treasury of the United States to the credit of the fund.
`(6) Disability annuitant.--Notwithstanding paragraph (3), in the case of a former spouse of a disability annuitant--
`(A) the annuity of that former spouse shall commence on the date on which the participant would qualify on the basis of the participant's creditable service for an annuity under this title (other than a disability annuity) or the date on which the disability annuity begins, whichever is later, and
`(B) the amount of the annuity of the former spouse shall be calculated on the basis of the annuity for which the participant would otherwise so qualify.
`(7) Election of benefits: A former spouse of a participant, former participant, or retired participant shall not become entitled under this subsection to an annuity payable from the fund unless the former spouse elects to receive it instead of any other annuity to which the former spouse may be entitled under this or any other retirement system for Government employees on the basis of a marriage to someone other than the participant.
`(8) Limitation in case of multiple former spouse annuities.--No spousal agreement or court order under section 264(b) involving a participant may provide for an annuity or a combination of annuities under this subsection that exceeds the annuity of the participant.
`(b) Former Spouse Survivor Annuity:
`(1) Pro rata share: Subject to any election under section 221(b)(1)(B) and (C) and unless otherwise expressly provided by a spousal agreement or court order under section 264(b), if an annuitant is survived by a former spouse, the former spouse shall be entitled--
`(A) if married to the annuitant throughout the creditable service of the annuitant, to a survivor annuity equal to 55 percent of the unreduced amount of the annuitant's annuity, as computed under section 221(a); and
`(B) if not married to the annuitant throughout such creditable service, to a survivor annuity equal to that proportion of 55 percent of the unreduced amount of such annuity that is the proportion that the number of days of the marriage of the former spouse to the participant during periods of creditable service of such participant under this title bears to the total number of days of such creditable service.
`(2) Disqualification upon remarriage before age 55: A former spouse shall not be qualified for an annuity under this subsection if before the commencement of that annuity the former spouse remarries before becoming 55 years of age.
`(3) Commencement, termination, and restoration of annuity: An annuity payable from the fund under this title to a surviving former spouse under this subsection shall commence on the day after the annuitant dies and shall terminate on the last day of the month before the former spouse's death or remarriage before attaining age 55. If such a survivor annuity is terminated because of remarriage, it shall be restored at the same rate commencing on the date such remarriage is dissolved by death, annulment, or divorce if any lump sum paid upon termination of the annuity is returned to the fund.
`(4) Survivor annuity amount:
`(A) Maximum amount: The maximum survivor annuity or combination of survivor annuities under this subsection (and section 221(b)(3)) with respect to any participant may not exceed 55 percent of the full amount of the participant's annuity, as calculated under section 221(a).
`(B) Limitation on other survivor annuities based on service of same participant: Once a survivor annuity has been provided under this subsection for any former spouse, a survivor annuity for another individual may thereafter be provided under this subsection (or section 221(b)(3)) with respect to the participant only for that portion (if any) of the maximum available which is not committed for survivor benefits for any former spouse whose prospective right to such annuity has not terminated by reason of death or remarriage.
`(C) Finality of court order upon death of participant: After the death of a participant or retired participant, a court order under section 264(b) may not adjust the amount of the annuity of a former spouse of that participant or retired participant under this section.
`(5) Effect of termination of former spouse entitlement:
`(A) Recomputation of participant's annuity: If a former spouse of a retired participant dies or remarries before attaining age 55, the annuity of the retired participant, if reduced to provide a survivor annuity for that former spouse, shall be recomputed and paid, effective on the first day of the month beginning after such death or remarriage, as if the annuity had not been so reduced, unless an election is in effect under subparagraph (B).
`(B) Election of spouse annuity: Subject to paragraph (4)(B), the participant may elect in writing within one year after receipt of notice of the death or remarriage of the former spouse to continue the reduction in order to provide a higher survivor annuity under section 221(b)(3) for any spouse of the participant.
`(c) Optional Additional Survivor Annuities for Other Former Spouse or Surviving Spouse:
`(1) In general: In the case of any participant providing a survivor annuity under subsection (b) for a former spouse--
`(A) such participant may elect, or
`(B) a spousal agreement or court order under section 264(b) may provide for,
an additional survivor annuity under this subsection for any other former spouse or spouse surviving the participant, if the participant satisfactorily passes a physical examination as prescribed by the Director.
`(2) Limitation: Neither the total amount of survivor annuity or annuities under this subsection with respect to any participant, nor the survivor annuity or annuities for any one surviving spouse or former spouse of such participant under this section or section 221, may exceed 55 percent of the unreduced amount of the participant's annuity, as computed under section 221(a).
`(3) Contribution for additional annuities:
`(A) Provision of additional survivor annuity: In accordance with regulations which the Director shall prescribe, the participant involved may provide for any annuity under this subsection--
`(i) by a reduction in the annuity or an allotment from the basic pay of the participant;
`(ii) by a lump-sum payment or installment payments to the fund; or
`(iii) by any combination thereof.
`(B) Actuarial equivalence to benefit: The present value of the total amount to accrue to the fund under subparagraph (A) to provide any annuity under this subsection shall be actuarially equivalent in value to such annuity, as calculated upon such tables of mortality as may from time to time be prescribed for this purpose by the Director.
`(C) Effect of former spouse's death or disqualification: If a former spouse predeceases the participant or remarries before attaining age 55 (or, in the case of a spouse, the spouse predeceases or does not qualify as a former spouse upon dissolution of the marriage)--
`(i) if an annuity reduction or pay allotment under subparagraph (A) is in effect for that spouse or former spouse, the annuity shall be recomputed and paid as if it had not been reduced or the pay allotment terminated, as the case may be; and
`(ii) any amount accruing to the fund under subparagraph (A) shall be refunded, but only to the extent that such amount may have exceeded the actuarial cost of providing benefits under this subsection for the period such benefits were provided, as determined under regulations prescribed by the Director.
`(D) Recomputation upon death or remarriage of former spouse: Under regulations prescribed by the Director, an annuity shall be recomputed (or a pay allotment terminated or adjusted), and a refund provided (if appropriate), in a manner comparable to that provided under subparagraph (C), in order to reflect a termination or reduction of future benefits under this subsection for a spouse in the event a former spouse of the participant dies or remarries before attaining age 55 and an increased annuity is provided for that spouse in accordance with this section.
`(4) Commencement and termination of additional survivor annuity: An annuity payable under this subsection to a spouse or former spouse shall commence on the day after the participant dies and shall terminate on the last day of the month before the former spouse's death or remarriage before attaining age 55.
`(5) Nonapplicability of cola provision: Section 291 does not apply to an annuity under this subsection, unless authorized under regulations prescribed by the Director.
[Page: H10027]
`SEC. 223. ELECTION OF SURVIVOR BENEFITS FOR CERTAIN FORMER SPOUSES DIVORCED AS OF NOVEMBER 15, 1982.
`(a) Former Spouses as of November 15, 1982: A participant, former participant, or retired participant in the system who on November 15, 1982, had a former spouse may, by a spousal agreement, elect to receive a reduced annuity and provide a survivor annuity for such former spouse under section 222(b).
`(b) Time for Making Election:
`(1) If the participant or former participant has not retired under such system on or before November 15, 1982, an election under this section may be made at any time before retirement.
`(2) If the participant or former participant has retired under such system on or before November 15, 1982, an election under this section may be made within such period after November 15, 1982, as the Director may prescribe.
`(3) For the purposes of applying this title, any such election shall be treated in the same manner as if it were a spousal agreement under section 264(b).
`(c) Base for Annuity: An election under this section may provide for a survivor annuity based on all or any portion of that part of the annuity of the participant which is not designated or committed as a base for a survivor annuity for a spouse or any other former spouse of the participant. The participant and the participant's spouse may make an election under section 221(b)(1)(B) before the time of retirement for the purpose of allowing an election to be made under this section.
`(d) Reduction in Participant's Annuity:
`(1) Computation: The amount of the reduction in the participant's annuity shall be determined in accordance with section 221(b)(2).
`(2) Effective date of reduction: Such reduction shall be effective as of--
`(A) the commencing date of the participant's annuity, in the case of an election under subsection (b)(1); or
`(B) November 15, 1982, in the case of an election under subsection (b)(2).
`SEC. 224. SURVIVOR ANNUITY FOR CERTAIN OTHER FORMER SPOUSES.
`(a) Survivor Annuity:
`(1) In general: An individual who was a former spouse of a participant or retired participant on November 15, 1982, shall be entitled, except to the extent such former spouse is disqualified under subsection (b), to a survivor annuity equal to 55 percent of the greater of--
`(A) the unreduced amount of the participant's or retired participant's annuity, as computed under section 221(a); or
`(B) the unreduced amount of what such annuity as so computed would be if the participant, former participant, or retired participant had not elected payment of the lump-sum credit under section 294.
`(2) Reduction in survivor annuity: A survivor annuity payable under this section shall be reduced by an amount equal to any survivor annuity payments made to the former spouse under section 223.
`(b) Limitations: A former spouse is not entitled to a survivor annuity under this section if--
`(1) the former spouse remarries before age 55, except that the entitlement of the former spouse to such a survivor annuity shall be restored on the date such remarriage is dissolved by death, annulment, or divorce; or
`(2) the former spouse is less than 50 years of age.
`(c) Commencement and Termination of Annuity:
`(1) Commencement of annuity.--The entitlement of a former spouse to a survivor annuity under this section shall commence--
`(A) in the case of a former spouse of a participant or retired participant who is deceased as of October 1, 1986, beginning on the later of--
`(i) the 60th day after such date; or
`(ii) the date on which the former spouse reaches age 50; and
`(B) in the case of any other former spouse, beginning on the latest of--
`(i) the date on which the participant or former participant to whom the former spouse was married dies;
`(ii) the 60th day after October 1, 1986; or
`(iii) the date on which the former spouse attains age 50.
`(2) Termination of annuity.--The entitlement of a former spouse to a survivor annuity under this section terminates on the last day of the month before the former spouse's death or remarriage before attaining age 55. The entitlement of a former spouse to such a survivor annuity shall be restored on the date such remarriage is dissolved by death, annulment, or divorce.
`(d) Application:
`(1) Time limit; waiver: A survivor annuity under this section shall not be payable unless appropriate written application is provided to the Director, complete with any supporting documentation which the Director may by regulation require. Any such application shall be submitted not later than April 1, 1989. The Director may waive the application deadline under the preceding sentence in any case in which the Director determines that the circumstances warrant such a waiver.
`(2) Retroactive benefits: Upon approval of an application provided under paragraph (1), the appropriate survivor annuity shall be payable to the former spouse with respect to all periods before such approval during which the former spouse was entitled to such annuity under this section, but in no event shall a survivor annuity be payable under this section with respect to any period before October 1, 1986.
`(e) Restoration of Annuity: Notwithstanding subsection (d)(1), the deadline by which an application for a survivor annuity must be submitted shall not apply in cases in which a former spouse's entitlement to such a survivor annuity is restored under subsection (b)(1) or (c)(2).
`SEC. 225. RETIREMENT ANNUITY FOR CERTAIN FORMER SPOUSES.
`(a) Retirement Annuity: An individual who was a former spouse of a participant, former participant, or retired participant on November 15, 1982, and any former spouse divorced after November 15, 1982, from a participant or former participant who retired before November 15, 1982, shall be entitled, except to the extent such former spouse is disqualified under subsection (b), to an annuity--
`(1) if married to the participant throughout the creditable service of the participant, equal to 50 percent of the annuity of the participant; or
`(2) if not married to the participant throughout such creditable service, equal to that former spouse's pro rata share of 50 percent of such annuity.
`(b) Limitations: A former spouse is not entitled to an annuity under this section if--
`(1) the former spouse remarries before age 55, except that the entitlement of the former spouse to an annuity under this section shall be restored on the date such remarriage is dissolved by death, annulment, or divorce; or
`(2) the former spouse is less than 50 years of age.
`(c) Commencement and Termination:
`(1) Retirement annuities: The entitlement of a former spouse to an annuity under this section--
`(A) shall commence on the later of--
`(i) the day the participant upon whose service the right to the annuity is based becomes entitled to an annuity under this title;
`(ii) the first day of the month in which the divorce or annulment involved becomes final; or
`(iii) such former spouse's 50th birthday; and
`(B) shall terminate on the earlier of--
`(i) the last day of the month before the former spouse dies or remarries before 55 years of age, except that the entitlement of the former spouse to an annuity under this section shall be restored on the date such remarriage is dissolved by death, annulment, or divorce; or
`(ii) the date on which the annuity of the participant terminates.
`(2) Disability annuities: Notwithstanding paragraph (1)(A)(i), in the case of a former spouse of a disability annuitant--
`(A) the annuity of the former spouse shall commence on the date on which the participant would qualify on the basis of the participant's creditable service for an annuity under this title (other than disability annuity) or the date the disability annuity begins, whichever is later; and
`(B) the amount of the annuity of the former spouse shall be calculated on the basis of the annuity for which the participant would otherwise so qualify.
`(3) Election of benefits: A former spouse of a participant or retired participant shall not become entitled under this section to an annuity or to the restoration of an annuity payable from the fund unless the former spouse elects to receive it instead of any other annuity to which the former spouse may be entitled under this or any other retirement system for Government employees on the basis of a marriage to someone other than the participant.
`(4) Application:
`(A) Time limit; waiver: An annuity under this section shall not be payable unless appropriate written application is provided to the Director, complete with any supporting documentation which the Director may by regulation require, not later than June 2, 1991. The Director may waive the application deadline under the preceding sentence in any case in which the Director determines that the circumstances warrant such a waiver.
`(B) Retroactive benefits: Upon approval of an application under subparagraph (A), the appropriate annuity shall be payable to the former spouse with respect to all periods before such approval during which the former spouse was entitled to an annuity under this section, but in no event shall an annuity be payable under this section with respect to any period before December 2, 1987.
`(d) Restoration of Annuities: Notwithstanding subsection (c)(4)(A), the deadline by which an application for a retirement annuity must be submitted shall not apply in cases in which a former spouse's entitlement to such annuity is restored under subsection (b)(1) or (c)(1)(B).
`(e) Savings Provision: Nothing in this section shall be construed to impair, reduce, or otherwise affect the annuity or the entitlement to an annuity of a participant or former participant under this title.
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`SEC. 226. SURVIVOR ANNUITIES FOR PREVIOUS SPOUSES.
`The Director shall prescribe regulations under which a previous spouse who is divorced after September 29, 1988, from a participant, former participant, or retired participant shall be eligible for a survivor annuity to the same extent and, to the greatest extent practicable, under the same conditions (including reductions to be made in the annuity of the participant) applicable to former spouses (as defined in section 8331(23) of title 5, United States Code) of participants in the Civil Service Retirement and Disability System (CSRS) as prescribed by the Civil Service Retirement Spouse Equity Act of 1984.
`Part D--Benefits Accruing to Certain Participants
`SEC. 231. RETIREMENT FOR DISABILITY OR INCAPACITY--MEDICAL EXAMINATION--RECOVERY.
`(a) Disability Retirement:
`(1) Eligibility.--A participant who has become disabled shall, upon the participant's own application or upon order of the Director, be retired on an annuity computed under subsection (b).
`(2) Standard for disability determination.--A participant shall be considered to be disabled only if the participant--
`(A) is found by the Director to be unable, because of disease or injury, to render useful and efficient service in the participant's position; and
`(B) is not qualified for reassignment, under procedures prescribed by the Director, to a vacant position in the Agency at the same grade or level and in which the participant would be able to render useful and efficient service.
`(3) Time limit for application.--
`(A) One year requirement.--A claim may be allowed under this section only if the application is submitted before the participant is separated from the Agency or within one year thereafter.
`(B) Waiver for mentally incompetent participant.--The time limitation may be waived by the Director for a participant who, at the date of separation from the Agency or within one year thereafter, is mentally incompetent, if the application is filed with the Agency within one year from the date of restoration of the participant to competency or the appointment of a fiduciary, whichever is earlier.
`(b) Computation of Disability Annuity:
`(1) In general: Except as provided in paragraph (2), an annuity payable under subsection (a) shall be computed under section 221(a). However, if the disabled or incapacitated participant has less than 20 years of service credit toward retirement under the system at the time of retirement, the annuity shall be computed on the assumption that the participant has had 20 years of service, but the additional service credit that may accrue to a participant under this paragraph may not exceed the difference between the participant's age at the time of retirement and age 60.
`(2) Coordination with military retired pay and veterans' compensation and pension: If a participant retiring under this section is receiving retired pay or retainer pay for military service (except that specified in section 252(e)(3)) or Department of Veterans Affairs compensation or pension in lieu of such retired or retainer pay, the annuity of that participant shall be computed under section 221(a), excluding credit for such military service from that computation. If the amount of the annuity so computed, plus the retired or retainer pay which is received, or which would be received but for the application of the limitation in section 5532 of title 5, United States Code, or the Department of Veterans Affairs compensation or pension in lieu of such retired or retainer pay, is less than the annuity that would be payable under this section in the absence of the previous sentence, an amount equal to the difference shall be added to the annuity payable under section 221(a).
`(c) Medical Examinations:
`(1) Medical examination required for determination of disability: In each case, the participant shall be given a medical examination by one or more duly qualified physicians or surgeons designated by the Director to conduct examinations, and disability shall be determined by the Director on the basis of the advice of such physicians or surgeons.
`(2) Annual reexaminations until age 60: Unless the disability is permanent, like examinations shall be made annually until the annuitant becomes age 60. If the Director determines on the basis of the advice of one or more duly qualified physicians or surgeons conducting such examinations that an annuitant has recovered to the extent that the annuitant can return to duty, the annuitant may apply for reinstatement or reappointment in the Agency within one year from the date the annuitant's recovery is determined.
`(3) Reinstatement: Upon application, the Director may reinstate any such recovered disability annuitant in the grade held at time of retirement, or the Director may, taking into consideration the age, qualifications, and experience of such annuitant, and the present grade of the annuitant's contemporaries in the Agency, appoint the annuitant to a grade higher than the one held before retirement.
`(4) Termination of disability annuity: Payment of the annuity shall continue until a date one year after the date of examination showing recovery or until the date of reinstatement or reappointment in the Agency, whichever is earlier.
`(5) Payment of fees: Fees for examinations under this subsection, together with reasonable traveling and other expenses incurred in order to submit to examination, may be paid out of the fund.
`(6) Suspension of annuity pending required examination: If the annuitant fails to submit to examination as required under this section, payment of the annuity shall be suspended until continuance of the disability is satisfactorily established.
`(7) Termination of annuity upon restoration of earning capacity: If the annuitant receiving a disability retirement annuity is restored to earning capacity before becoming age 60, payment of the annuity terminates on reemployment by the Government or 180 days after the end of the calendar year in which earning capacity is restored, whichever is earlier. Earning capacity shall be considered to be restored if in any calendar year the income of the annuitant from wages or self-employment, or both, equals at least 80 percent of the current rate of pay for the grade and step the annuitant held at the time of retirement.
`(d) Treatment of Recovered Disability Annuitant Who Is Not Reinstated:
`(1) Separation: If a recovered or restored disability annuitant whose annuity is discontinued is for any reason not reinstated or reappointed in the Agency, the annuitant shall be considered, except for service credit, to have been separated within the meaning of section 234 as of the date of termination of the disability annuity.
`(2) Retirement: After such termination, the recovered or restored annuitant shall be entitled to the benefits of section 234 or 241(b), except that the annuitant may elect voluntary retirement under section 233, if qualified thereunder, or may be placed by the Director in an involuntary retirement status under section 235(a), if qualified thereunder. Retirement rights under this paragraph shall be based on the provisions of this title in effect as of the date on which the disability annuity is discontinued.
`(3) Further disability before age 62: If, based on a current medical examination, the Director determines that a recovered annuitant has, before reaching age 62, again become totally disabled due to recurrence of the disability for which the annuitant was originally retired, the annuitant's terminated disability annuity (same type and rate) shall be reinstated from the date of such medical examination. If a restored-to-earning-capacity annuitant has not medically recovered from the disability for which retired and establishes to the Director's satisfaction that the annuitant's income from wages and self-employment in any calendar year before reaching age 62 was less than 80 percent of the rate of pay for the grade and step the annuitant held at the time of retirement, the annuitant's terminated disability annuity (same type and rate) shall be reinstated from the first of the next following year. If the annuitant has been allowed an involuntary or voluntary retirement annuity in the meant