
[BBS file "VSIPLAW.TXT" and "VSIPLAW.ZIP"; Information copy of the
Federal Workforce Restructuring Act of 1994 (H.R. 3345) approved
the House of Representatives on March 23, 1994, and by the Senate
on March 24, 1994.  Through the afternoon of Tuesday, March 29,
1994, the bill had not been signed.  The bill will be reposted on
the BBS when it is signed and a Public Law number is assigned to
the legislation.]
=================================================================

H.R. 3345 AS FINALLY APPROVED BY THE HOUSE AND SENATE (ENROLLED)

                            H.R. 3345

                   One Hundred Third Congress
                             of the
                    United States of America

                      AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday, the twenty-
fifth day of January, one thousand nine hundred and ninety-four

                             An Act

     To provide temporary authority to Government agencies relating
to voluntary separation incentive payments, and for other purposes.

     Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE. 
  
     This Act may be cited as the "Federal Workforce Restructuring
Act of 1994". 

SECTION 2.  TRAINING. 
  
      (a) In General.--Chapter 41 of title 5, United States Code,
is amended-- 
  
          (1) in section 4101(4) by striking "fields" and all that
follows through the semicolon and inserting "fields which will
improve individual and organizational performance and assist in
achieving the agency's mission and performance goals;"; 
  
          (2) in section 4103-- 
  
               (A) in subsection (a)-- 
  
               (i) by striking "In" and all that follows through
"maintain" and inserting "In order to assist in achieving an
agency's mission and performance goals by improving employee and
organizational performance, the head of each agency, in conformity
with this chapter, shall establish, operate, maintain, and
evaluate"; 
  
               (ii) by striking "and" at the end of paragraph (2); 
  
               (iii) by redesignating paragraph (3) as paragraph
(4); and 
  
               (iv) by inserting after paragraph (2) the following:

  
          "(3) provide that information concerning the selection
and assignment of employees for training and the applicable
training limitations and restrictions be made available to
employees of the agency; and";
and 

               (B) in subsection (b)-- 
  
               (i) in paragraph (1) by striking "determines" and
all that follows through the period and inserting "determines that
such training would be in the interests of the Government."; 
  
               (ii) by striking paragraph (2) and redesignating
paragraph (3) as paragraph (2); and 
  
               (iii) in subparagraph (C) of paragraph (2) (as so 
redesignated) by striking "retaining" and all that follows through
the period and inserting "such training."; 
  
          (3) in section 4105-- 
  
               (A) in subsection (a) by striking "(a)"; and 
  
               (B) by striking subsections (b) and (c); 
  
          (4) by repealing section 4106; 
  
          (5) in section 4107-- 
  
               (A) by amending the catchline to read as follows: 
  
"Sec. 4107. Restriction on degree training"; 
  
               (B) by striking subsections (a) and (b) and
redesignating subsections (c) and (d) as subsections (a) and (b),
respectively; 
  
               (C) by amending subsection (a) (as so
redesignated)-- 
  
               (i) by striking "subsection (d)" and inserting
"subsection (b)"; and 
  
               (ii) by striking "by, in, or through a
non-Government facility"; and 
  
               (D) by amending paragraph (1) of subsection (b) (as
so redesignated) by striking "subsection (c)" and inserting
"subsection (a)"; 
  
          (6) in section 4108(a) by striking "by, in, or through a
non-Government facility under this chapter" and inserting "for more
than a minimum period prescribed by the head of the agency"; 
  
          (7) in section 4113(b)-- 
  
               (A) in the first sentence by striking "annually to
the Office," and inserting "to the Office, at least once every 3
years, and"; and 
  
               (B) by striking the matter following the first
sentence and inserting the following: "The report shall set forth--

          "(1) information needed to determine that training is
being provided in a manner which is in compliance with applicable
laws intended to protect or promote equal employment opportunity;
and 
  
          "(2) information concerning the expenditures of the
agency in connection with training and such other information as
the Office considers appropriate."; 
          
          (8) by repealing section 4114; and 
  
          (9) in section 4118-- 
  
               (A) in subsection (a)(7) by striking "by, in, and
through non-Government facilities"; 
  
               (B) by striking subsection (b); and 
  
               (C) by redesignating subsections (c) and (d) as
subsections (b) and (c), respectively. 
  
     (b) Technical and Conforming Amendments.--Title 5, United
States Code, is amended-- 
  
          (1) in section 3381(e) by striking "4105(a)," and
inserting "4105,"; and 
  
          (2) in the analysis for chapter 41-- 
  
               (A) by repealing the items relating to sections 4106
and 4114; and 
  
               (B) by amending the item relating to section 4107 to
read as follows: 
  
     "4107. Restriction on degree training.". 
  
  
     (c) Effective Date.--The amendments made by this section shall
become effective on the date of enactment of this Act. 

SECTION  3. VOLUNTARY SEPARATION INCENTIVES. 
  
     (a) Definitions.--For the purpose of this section-- 
  
          (1) the term "agency" means an Executive agency (as
defined by section 105 of title 5, United States Code), but does
not include the Department of Defense, the Central Intelligence
Agency, or the General Accounting Office; and 
  
          (2) the term "employee" means an employee (as defined by
section 2105 of title 5, United States Code) who is employed by an
agency, is serving under an appointment without time limitation,
and has been currently employed for a continuous period of at least
12 months; such term includes an individual employed by a county
committee established under section 8(b) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590h(b)), but does not
include-- 
  
               (A) a reemployed annuitant under subchapter III of
chapter 83 or chapter 84 of title 5, United States Code, or another
retirement system for employees of the Government; or 
  
               (B) an employee having a disability on the basis of
which such employee is or would be eligible for disability
retirement under the applicable retirement system referred to in
subparagraph (A). 
  
     (b) Authority.-- 
  
          (1) In general.--In order to avoid or minimize the need
for involuntary separations due to a reduction in force,
reorganization, transfer of function, or other similar action, and
subject to paragraph (2), the head of an agency may pay, or
authorize the payment of, voluntary separation incentive payments
to agency employees-- 
  
               (A) in any component of the agency; 
  
               (B) in any occupation; 
  
               (C) in any geographic location; or 
  
               (D) on the basis of any combination of factors under
subparagraphs (A) through (C). 
  
          (2) Condition.-- 
  
               (A) In general.--In order to receive an incentive
payment, an employee must separate from service with the agency
(whether by retirement or resignation) before April 1, 1995. 
  
               (B) Exception.--An employee who does not separate
from service before the date specified in subparagraph (A) shall be
ineligible for an incentive payment under this section unless-- 
  
               (i) the agency head determines that, in order to
ensure the performance of the agency's mission, it is necessary to
delay such employee's separation; and 
  
               (ii) the employee separates after completing any
additional period of service required (but not later than March 31,
1997). 
  
     (c) Amount and Treatment of Payments.--A voluntary separation
incentive payment-- 
  
          (1) shall be paid in a lump sum after the employee's
separation; 
  
          (2) shall be equal to the lesser of-- 
  
               (A) an amount equal to the amount the employee would
be entitled to receive under section 5595(c) of title 5, United
States Code, if the employee were entitled to payment under such
section; or

               (B) $25,000; 
  
          (3) shall not be a basis for payment, and shall not be
included in the computation, of any other type of Government
benefit; 
  
          (4) shall not be taken into account in determining the
amount of any severance pay to which an employee may be entitled
under section 5595 of title 5, United States Code, based on any
other separation; and  

          (5) shall be paid from appropriations or funds available
for the payment of the basic pay of the employee. 
  
     (d) Effect of Subsequent Employment With the Government.-- 
  
          (1) In general.--An employee who has received a voluntary
separation incentive payment under this section and accepts
employment with the Government of the United States within 5 years
after the date of the separation on which the payment is based
shall be required to repay the entire amount of the incentive
payment to the agency that paid the incentive payment. 
  
          (2) Waiver authority.-- 
  
               (A) Executive agency.--If the employment is with an
Executive agency (as defined by section 105 of title 5, United
States Code), the Director of the Office of Personnel Management
may, at the request of the head of the agency, waive the repayment
if the individual involved possesses unique abilities and is the
only qualified applicant available for the position. 
  
               (B) Legislative branch.--If the employment is with
an entity in the legislative branch, the head of the entity or the
appointing official may waive the repayment if the individual
involved possesses unique abilities and is the only qualified
applicant available for the position. 
  
               (C) Judicial branch.--If the employment is with the
judicial branch, the Director of the Administrative Office of the
United States Courts may waive the repayment if the individual
involved possesses unique abilities and is the only qualified
applicant available for the position. 
  
          (3) Definition.--For purposes of paragraph (1) (but not
paragraph (2)), the term "employment" includes employment under a
personal services contract with the United States. 
  
     (e) Regulations.--The Director of the Office of Personnel
Management may prescribe any regulations necessary for the
administration of subsections (a) through (d). 
  
     (f) Employees of the Judicial Branch.--The Director of the
Administrative Office of the United States Courts may, by
regulation, establish a program consistent with the program
established by subsections (a) through (d) for individuals serving
in the judicial branch. 

SECTION 4. ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT FUND. 
  
     (a) Relating to Fiscal Years 1994 and 1995.-- 
  
          (1) In general.--In addition to any other payments which
it is required to make under subchapter III of chapter 83 of title
5, United States Code, an agency shall remit to the Office of
Personnel Management for deposit in the Treasury of the United
States to the credit of the Civil Service Retirement and Disability
Fund an amount equal to 9 percent of the final basic pay of each
employee of the agency-- 
  
               (A) who, on or after the date of the enactment of
this Act and before October 1, 1995, retires under section
8336(d)(2) of such title; and 
  
               (B) to whom a voluntary separation incentive payment
has been or is to be paid by such agency based on that retirement. 
  
          (2) Definitions.--For the purpose of this subsection-- 
  
               (A) the term "final basic pay", with respect to an
employee, means the total amount of basic pay which would be
payable for a year of service by such employee, computed using the
employee's final rate of basic pay, and, if last serving on other
than a full-time basis, with appropriate adjustment therefor; and 
  
               (B) the term "voluntary separation incentive
payment" means-- 
  
               (i) a voluntary separation incentive payment under
section 3 (including under any program established under section
3(f)); and 
  
               (ii) any separation pay under section 5597 of title
5, United States Code, or section 2 of the Central Intelligence
Agency Voluntary Separation Pay Act (Public Law 103-36; 107
Stat. 104). 
  
     (b) Relating to Fiscal Years 1995 Through 1998.-- 
  
          (1) In general.--In addition to any other payments which
it is required to make under subchapter III of chapter 83 or
chapter 84 of title 5, United States Code, in fiscal years 1995,
1996, 1997, and 1998 (and in addition to any amounts required under
subsection (a)), each agency shall, before the end of each such
fiscal year, remit to the Office of Personnel Management for
deposit in the Treasury of the United States to the credit of the
Civil Service Retirement and Disability Fund an amount equal to the
product of-- 
  
               (A) the number of employees of such agency who, as
of March 31st of such fiscal year, are subject to subchapter III of
chapter 83 or chapter 84 of such title; multiplied by 
  
               (B) $80. 
  
          (2) Definition.--For the purpose of this subsection, the
term "agency" means an Executive agency (as defined by section 105
of title 5, United States Code), but does not include the General
Accounting Office. 
  
     (c) Regulations.--The Director of the Office of Personnel
Management may prescribe any regulations necessary to carry out
this section. 
 
SECTION 5. REDUCTION OF FEDERAL FULL-TIME EQUIVALENT POSITIONS. 
  
     (a) Definition.--For the purpose of this section, the term
"agency" means an Executive agency (as defined by section 105 of
title 5, United States Code), but does not include the General
Accounting Office. 
  
     (b) Limitations on Full-Time Equivalent Positions.--The
President, through the Office of Management and Budget (in
consultation with the Office of Personnel Management), shall ensure
that the total number of full-time equivalent positions in all
agencies shall not exceed-- 
  
          (1) 2,084,600 during fiscal year 1994; 
  
          (2) 2,043,300 during fiscal year 1995; 
  
          (3) 2,003,300 during fiscal year 1996; 
  
          (4) 1,963,300 during fiscal year 1997; 
  
          (5) 1,922,300 during fiscal year 1998; and 
  
          (6) 1,882,300 during fiscal year 1999. 
  
     (c) Monitoring and Notification.--The Office of Management and
Budget, after consultation with the Office of Personnel Management,
shall-- 

          (1) continuously monitor all agencies and make a
determination on the first date of each quarter of each applicable
fiscal year of whether the requirements under subsection (b) are
met; and 
  
          (2) notify the President and the Congress on the first
date of each quarter of each applicable fiscal year of any
determination that any requirement of subsection (b) is not met. 
  
     (d) Compliance.--If, at any time during a fiscal year, the
Office of Management and Budget notifies the President and the
Congress that any requirement under subsection (b) is not met, no
agency may hire any employee for any position in such agency until
the Office of Management and Budget notifies the President and the
Congress that the total number of full-time equivalent positions
for all agencies equals or is less than the applicable number
required under subsection (b). 
  
     (e) Waiver.-- 
  
          (1) Emergencies.--Any provision of this section may be
waived upon a determination by the President that-- 
  
               (A) the existence of a state of war or other
national security concern so requires; or 
  
               (B) the existence of an extraordinary emergency
threatening life, health, safety, property, or the environment so
requires.   

          (2) Agency efficiency or critical mission.-- 
  
               (A) Subsection (d) may be waived, in the case of a
particular position or category of positions in an agency, upon a
determination of the President that the efficiency of the agency or
the performance of a critical agency mission so requires. 
  
               (B) Whenever the President grants a waiver pursuant
to subparagraph (A), the President shall take all necessary
actions to ensure that the overall limitations set forth in
subsection (b) are not exceeded. 
  
     (f) Employment Backfill Prevention.-- 
  
          (1) In general.--The total number of funded employee
positions in all agencies (excluding the Department of Defense and
the Central Intelligence Agency) shall be reduced by one position
for each vacancy created by the separation of any employee who has
received, or is due to receive, a voluntary separation incentive
payment under section 3 (a)-(e).  For purposes of this subsection,
positions and vacancies shall be counted on a full-time-equivalent
basis. 
  
          (2) Related restriction.--No funds budgeted for and
appropriated by any Act for salaries or expenses of positions
eliminated under this subsection may be used for any purpose other
than authorized separation costs. 
  
     (g) Limitation on Procurement of Service Contracts.--The
President shall take appropriate action to ensure that there is no
increase in the procurement of service contracts by reason of the
enactment of this Act, except in cases in which a cost comparison
demonstrates such contracts would be to the financial advantage of
the Federal Government. 

SECTION 6. MONITORING AND REPORT RELATING TO VOLUNTARY SEPARATION
INCENTIVE PAYMENTS. 
  
     No later than December 31st of each fiscal year, the Office of
Personnel Management shall submit to the Committee on Governmental
Affairs of the Senate and the Committee on Post Office and Civil
Service of the House of Representatives a report which, with
respect to the preceding fiscal year, shall include-- 
  
          (1) the number of employees who received a voluntary
separation incentive payment under section 3 during such preceding
fiscal year; 
  
          (2) the agency from which each such employee separated; 
  
          (3) at the time of separation from service by each such
employee-- 
  
               (A) such employee's grade or pay level; and 
  
               (B) the geographic location of such employee's
official duty station, by region, State, and city (or foreign
nation, if applicable); and 
  
          (4)(A) the number of waivers made (in the repayment upon
subsequent employment) by each agency or other authority under
section 3 or the amendments made by section 8; and 
  
          (B) the title and the grade or pay level of the position
filled by the employee to whom such waiver applied. 

SECTION 7. DISLOCATION PAYMENTS FOR CERTAIN CONTRACTOR PERSONNEL. 
  
     (a) Payment.--No later than October 31, 1994, the Director of
the National Aeronautics and Space Administration shall pay $5,000
to each full-time contractor employee who-- 
  
          (1) was hired, under a contract relating to the Advanced
Solid Rocket Motor Program, by-- 
  
               (A) Lockheed Missiles and Space Company; 
  
               (B) Aerojet Corporation, Advanced Solid Rocket Motor
Division; or 
  
               (C) Rust Corporation; 
  
          (2) was separated from employment in Yellow Creek,
Mississippi, as a result of the termination of the Advanced Solid
Rocket Motor Program; and 
  
          (3)(A) had been hired locally at Yellow Creek,
Mississippi; or 
  
          (B) based on the separation referred to in paragraph (2),
was eligible, but elected not, to be relocated. 
  
     (b) Offset.--No payment made under this section shall be
offset against the severance costs of a contractor. 
  
     (c) Source of Payments.--Payments under this section shall be
from funds appropriated under the subheading "space flight, control
and data communications" under the heading "National Aeronautics
and Space Administration" under title III of the Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1994 (Public Law 103-124; 107 Stat.
1299). 

     (d) Limitation on Payments.--The amount of total payments made
under this section may not exceed $1,000,000. 

SECTION 8. SUBSEQUENT EMPLOYMENT AND REPAYMENT OF SEPARATION
PAYMENT. 
  
     (a) Defense Agency Separation Pay.--Section 5597 of title 5,
United States Code, is amended by adding at the end the following: 

     "(g)(1) An employee who receives separation pay under this
section on the basis of a separation occurring on or after the date
of the enactment of the Federal Workforce Restructuring Act of 1994
and accepts employment with the Government of the United States
within 5 years after the date of the separation on which payment of
the separation pay is based shall be required to repay the entire
amount of the separation pay to the defense agency that paid the
separation pay. 
  
     "(2) If the employment is with an Executive agency, the
Director of the Office of Personnel Management may, at the request
of the head of the agency, waive the repayment if the individual
involved possesses unique abilities and is the only qualified
applicant available for the position. 
  
     "(3) If the employment is with an entity in the legislative
branch, the head of the entity or the appointing official may waive
the repayment if the individual involved possesses unique abilities
and is the only qualified applicant available for the position. 
  
     "(4) If the employment is with the judicial branch, the
Director of the Administrative Office of the United States Courts
may waive the repayment if the individual involved possesses unique
abilities and is the only qualified applicant available for the
position.". 
  
     (b) Central Intelligence Agency Separation Payment.--Section
2(b) of the Central Intelligence Agency Voluntary Separation Pay
Act (Public Law 103-36; 107 Stat. 104) is amended by adding at the
end the following: "An employee 
  who receives separation pay under this section on the basis of a
separation occurring on or after the date of the enactment of the
Federal Workforce Restructuring Act of 1994 and accepts employment
with the Government of the United States within 5 years after the
date of the separation on which payment of the separation pay is
based shall be required to repay the entire amount of the
separation pay to the Central Intelligence Agency. If the
employment is with an Executive agency (as defined by section 105
of title 5, United States Code), the Director of the Office of
Personnel Management may, 
  at the request of the head of the agency, waive the repayment if
the individual involved possesses unique abilities and is the only
qualified applicant available for the position. If the employment
is with an entity in the legislative branch, the head of the entity
or the appointing official may waive the repayment if the
individual involved possesses unique abilities and is the only
qualified applicant available for the position. If the employment
is with the judicial branch, the Director of the Administrative
Office of the United States Courts may waive the repayment if the
individual involved possesses unique abilities and is the only
qualified applicant available for the position.". 
 
SECTION 9. STANDARDIZATION OF WITHDRAWAL OPTIONS FOR THRIFT SAVINGS
PLAN PARTICIPANTS. 
  
     (a) Participation in the Thrift Savings Plan.--Section 8351(b)
of title 5, United States Code, is amended-- 
  
          (1) by amending paragraph (4) to read as follows: 
  
     "(4) Section 8433(b) of this title applies to any employee or
Member who elects to make contributions to the Thrift Savings Fund
under subsection (a) of this section and separates from Government
employment."; 
  
          (2) by striking paragraphs (5), (6), and (8); 
  
          (3) by redesignating paragraphs (7), (9), and (10) as
paragraphs (5), (6), and (7), respectively; 
  
          (4) in paragraph (5)(C) (as so redesignated by paragraph
(3) of this subsection) by striking "or former spouse" each place
it appears; 
  
          (5) by amending paragraph (6) (as so redesignated by
paragraph (3) of this subsection) to read as follows: 
  
     "(6) Notwithstanding paragraph (4), if an employee or Member
separates from Government employment and such employee's or
Member's nonforfeitable account balance is $3,500 or less, the
Executive Director shall pay the nonforfeitable account balance to
the participant in a single payment unless the employee or Member
elects, at such time and otherwise in such manner as the Executive
Director prescribes, one of the options available under subsection
(b)."; and 
  
          (6) in paragraph (7) (as so redesignated by paragraph (3)
of this subsection) by striking "nonforfeiture" and inserting
"nonforfeitable". 
  
     (b) Benefits and Election of Benefits.--Section 8433 of title
5, United States Code, is amended-- 
  
          (1) in subsection (b) by striking the matter before
paragraph (1) and inserting the following: 
  
     "(b) Subject to section 8435 of this title, any employee or
Member who separates from Government employment is entitled and may
elect--"; 
  
          (2) by striking subsections (c) and (d) and redesignating
subsections (e) through (i) as subsections (c) through (g),
respectively; 
  
          (3) in subsection (c)(1) (as so redesignated by paragraph
(2) of this subsection) by striking "or (c)(4) or required under
subsection (d) directly to an eligible retirement plan or plans (as
defined in section 402(a)(5)(E) of the Internal Revenue Code of
1954)" and inserting "directly to an eligible retirement plan or
plans (as defined in section 402(c)(8) of the Internal Revenue Code
of 1986)"; 
  
          (4) in subsection (d)(2) (as so redesignated by paragraph
(2) of this subsection) by striking "or (c)(2)"; and 
  
          (5) in subsection (f) (as so redesignated by paragraph
(2) of this subsection)-- 
  
               (A) by striking paragraph (1) and redesignating
paragraphs (2) and (3) as paragraphs (1) and (2), respectively; and

               (B) in paragraph (1) (as so redesignated by
subparagraph (A) of this paragraph)-- 
  
               (i) by striking "Notwithstanding subsections (b) and
(c), if an employee or Member separates from Government employment
under circumstances making such employee or Member eligible to
make an election under either of those subsections, and such
employee's or Member's" and inserting "Notwithstanding subsection
(b), if an employee or Member separates from Government employment,
and such employee's or Member's"; and 
  
               (ii) by striking "or (c), as applicable"; and 
  
               (C) in paragraph (2) (as so redesignated by
subparagraph (A) of this paragraph) by striking "paragraphs (1) and
(2)" and inserting "paragraph (1)". 
  
     (c) Annuities: Methods of Payment; Election; 
Purchase.--Section 8434(c) of title 5, United States Code, is
amended to read as follows:  
  
     "(c) Notwithstanding the elimination of a method of payment by
the Board, an employee, Member, former employee, or former Member
may elect the eliminated method if the elimination of such method
becomes effective less than 5 years before the date on which that
individual's annuity commences.". 
  
     (d) Protections for Spouses and Former Spouses.--Section 8435
of title 5, United States Code, is amended-- 
  
          (1) in subsection (a)(1)(A) by striking "subsection
(b)(3), (b)(4), (c)(3), or (c)(4) of section 8433 of this title or
change an election previously made under subsection (b)(1), (b)(2),
(c)(1), or (c)(2)" and inserting "subsection (b)(3) or (b)(4) of
section 8433 of this title or change an election previously made
under subsection (b)(1) or (b)(2)"; 
  
          (2) by striking subsection (b); 
  
          (3) by redesignating subsections (c) through (i) as
subsections (b) through (h), respectively; 
  
          (4) in subsection (b) (as so redesignated by paragraph
(3) of this subsection) by amending paragraph (2) to read as
follows: 
  
          "(2) Paragraph (1) shall not apply if-- 
  
               "(A) a joint waiver of such method is made, in
writing, by the employee or Member and the spouse; or 
  
               "(B) the employee or Member waives such method, in
writing, after establishing to the satisfaction of the Executive
Director that circumstances described under subsection (a)(2) (A)
or (B) make the requirement of a joint waiver inappropriate."; and 
  
          (5) in subsection (c)(1) (as so redesignated by paragraph
(3) of this subsection) by striking "and a transfer may not be made
under section 8433(d) of this title". 
  
     (e) Justices and Judges.--Section 8440a(b) of title 5, United
States Code, is amended-- 
  
          (1) in paragraph (5) by striking "Section 8433(d)" and
inserting "Section 8433(b)"; and 
  
          (2) by striking paragraphs (7) and (8) and inserting the
following: 
  
     "(7) Notwithstanding paragraphs (4) and (5), if any justice or
judge retires under subsection (a) or (b) of section 371 or section
372(a) of title 28, or resigns without having met the age and
service requirements set forth under section 371(c) of title 28,
and such justice's or judge's nonforfeitable account balance is
$3,500 or less, the Executive Director shall pay the nonforfeitable
account balance to the participant in a single payment unless the
justice or judge elects, at such time and otherwise in such manner
as the Executive Director prescribes, one of the options available
under section 8433(b).". 
  
     (f) Bankruptcy Judges and Magistrates.--Section 8440b of title
5, United States Code, is amended-- 
  
          (1) in subsection (b)(4) by amending subparagraph (B) to
read as follows: 
  
     "(B) Section 8433(b) of this title applies to any bankruptcy
judge or magistrate who elects to make contributions to the Thrift
Savings Fund under subsection (a) of this section and who retires
before attaining age 65 but is entitled, upon attaining age 65, to
an annuity under section 377 of title 28 or section 2(c) of the
Retirement and Survivors Annuities for Bankruptcy Judges and
Magistrates Act of 1988."; 

          (2) in subsection (b)(4)(C) by striking "Section 8433(d)"
and inserting "Section 8433(b)"; 
  
          (3) in subsection (b)(5) by striking "retirement under
section 377 of title 28 is" and inserting "any of the actions
described under paragraph (4) (A), (B), or (C) shall be
considered"; 
  
          (4) in subsection (b) by striking paragraph (8) and
redesignating paragraph (9) as paragraph (8); and 
  
          (5) in paragraph (8) of subsection (b) (as so
redesignated by paragraph (4) of this subsection)-- 
  
               (A) by striking "Notwithstanding subparagraphs (A)
and (B) of paragraph (4), if any bankruptcy judge or magistrate
retires under circumstances making such bankruptcy judge or
magistrate eligible to make an election under subsection (b) or
(c)" and inserting "Notwithstanding paragraph (4), if any
bankruptcy judge or magistrate retires under circumstances making
such bankruptcy judge or magistrate eligible to make an election
under subsection (b)"; and 

               (B) by striking "and (c), as applicable". 
  
     (g) Claims Court Judges.--Section 8440c of title 5, United
States Code, is amended-- 
  
          (1) in subsection (b)(4)(B) by striking "Section 8433(d)"
and inserting "Section 8433(b)"; 
  
          (2) in subsection (b)(5) by striking "retirement under
section 178 of title 28 is" and inserting "any of the actions
described in paragraph (4) (A) or (B) shall be considered"; 
  
          (3) in subsection (b) by striking paragraph (8) and
redesignating  paragraph (9) as paragraph (8); and 
  
          (4) in paragraph (8) (as so redesignated by paragraph (3)
of this subsection) by striking "Notwithstanding paragraph (4)(A)"
and inserting "Notwithstanding paragraph (4)". 
  
     (h) Judges of the United States Court of Veterans
Appeals.--Section 8440d(b)(5) of title 5, United States Code, is
amended by striking "A transfer shall be made as provided in
section 8433(d) of this title" and inserting "Section 8433(b) of
this title applies". 

     (i) Technical and Conforming Amendments.--Title 5, United
States Code, is amended-- 
  
          (1) in section 8351(b)(5)(B) (as so redesignated by
subsection (a)(3) of this section) by striking "section 8433(i)"
and inserting "section 8433(g)"; 
  
          (2) in section 8351(b)(5)(D) (as so redesignated by
subsection (a)(3) of this section) by striking "section 8433(i)"
and inserting "section 8433(g)"; 
  
          (3) in section 8433(b)(4) by striking "subsection (e)"
and inserting "subsection (c)"; 
  
          (4) in section 8433(d)(1) (as so redesignated by
subsection (b)(2) of this section) by striking "(d) of section
8435" and inserting "(c) of section 8435"; 
  
          (5) in section 8433(d)(2) (as so redesignated by
subsection (b)(2) of this section) by striking "section 8435(d)"
and inserting "section 8435(c)"; 
  
          (6) in section 8433(e) (as so redesignated by subsection
(b)(2) of this section) by striking "section 8435(d)(2)" and
inserting "section 8435(c)(2)"; 
  
          (7) in section 8433(g)(5) (as so redesignated by
subsection (b)(2) of this section) by striking "section 8435(f)"
and inserting "section 8435(e)"; 
  
          (8) in section 8434(b) by striking "section 8435(c)" and
inserting "section 8435(b)"; 
  
          (9) in section 8435(a)(1)(B) by striking "subsection (c)"
and inserting "subsection (b)"; 
  
          (10) in section 8435(d)(1)(B) (as so redesignated by
subsection (d)(3) of this section) by striking "subsection (d)(2)"
and inserting "subsection (c)(2)"; 
  
          (11) in section 8435(d)(3)(A) (as so redesignated by
subsection (d)(3) of this section) by striking "subsection (c)(1)"
and inserting "subsection (b)(1)"; 
  
          (12) in section 8435(d)(6) (as so redesignated by
subsection (d)(3) of this section) by striking "or (c)(2)" and
inserting "or (b)(2)"; 
  
          (13) in section 8435(e)(1)(A) (as so redesignated by
subsection (d)(3) of this section) by striking "section 8433(i)"
and inserting "section 8433(g)"; 
  
          (14) in section 8435(e)(2) (as so redesignated by
subsection (d)(3) of this section) by striking "section 8433(i) of
this title shall not be approved if approval would have the result
described in subsection (d)(1)" and inserting "section 8433(g) of
this title shall not be approved if approval would have the result
described under subsection (c)(1)"; 
  
          (15) in section 8435(g) (as so redesignated by subsection
(d)(3) of this section) by striking "section 8433(i)" and inserting
"section 8433(g)"; 
  
          (16) in section 8437(c)(5) by striking "section 8433(i)"
and inserting "section 8433(g)"; and 
  
          (17) in section 8440a(b)(6) by striking "section
8351(b)(7)" and inserting "section 8351(b)(5)". 
  
     (j) Effective Date.--This section shall take effect 1 year
after the date of the enactment of this Act or on such earlier date
as the Executive Director of the Federal Retirement Thrift
Investment Board shall provide in regulation. 

SECTION 10. AMENDMENTS TO ALASKA RAILROAD TRANSFER ACT OF 1982
REGARDING FORMER FEDERAL EMPLOYEES. 
  
     (a) Applicability of Voluntary Separation Incentives to
Certain Former Federal Employees.--Section 607(a) of the Alaska
Railroad Transfer Act of 1982 (45 U.S.C. 1206(a)) is amended by
adding at the end the following: 
  
          "(4)(A) The State-owned railroad shall be included in the
definition of 'agency' for purposes of section 3 (a), (b), (c), and
(e) of the Federal Workforce Restructuring Act of 1994 and may
elect to participate in the voluntary separation incentive program
established under such Act.  Any employee of the State-owned
railroad who meets the qualifications as described under the first
sentence of paragraph (1) shall be deemed an employee under such
Act. 
  
          "(B) An employee who has received a voluntary separation
incentive payment under this paragraph and accepts employment with
the State-owned railroad within 5 years after the date of
separation on which payment of the incentive is based shall be
required to repay the entire amount of the incentive payment unless
the head of the State-owned railroad determines that the individual
involved possesses unique abilities and is the only qualified
applicant available for the position.". 
  
     (b) Life and Health Insurance Benefits.--Section 607 of the
Alaska Railroad Transfer Act of 1982 (45 U.S.C. 1206) is amended by
striking subsection (e) and inserting the following: 
  
     "(e)(1) Any person described under the provisions of paragraph
(2) may elect life insurance coverage under chapter 87 of title 5,
United States Code, and enroll in a health benefits plan under
chapter 89 of title 5, United States Code, in accordance with the
provisions of this subsection. 
  
     "(2) The provisions of paragraph (1) shall apply to any person
who-- 
  
          "(A) on the date of the enactment of the Federal
Workforce Restructuring Act of 1994, is an employee of the
State-owned railroad; 
  
          "(B) has 20 years or more of service (in the civil
service as a Federal employee or as an employee of the State-owned
railroad, combined) on the date of retirement from the State-owned
railroad; and "(C)(i) was covered under a life insurance policy
pursuant to chapter 87 of title 5, United States Code, on January
4, 1985, for the purpose of electing life insurance coverage under
the provisions of paragraph (1); or 
  
          "(ii) was enrolled in a health benefits plan pursuant to
chapter 89 of title 5, United States Code, on January 4, 1985, for
the purpose of enrolling in a health benefits plan under the
provisions of paragraph (1). 
  
     "(3) For purposes of this section, any person described under
the provisions of paragraph (2) shall be deemed to have been
covered under a life insurance policy under chapter 87 of title 5,
United States Code, and to have been enrolled in a health benefits
plan under chapter 89 of title 5, United States Code, during the
period beginning on January 5, 1985, through the date of retirement
of any such person. 

     "(4) The provisions of paragraph (1) shall not apply to any
person described under paragraph (2) until the date such person
retires from the State-owned railroad.". 
  
(signed)            Speaker of the House of Representatives. 

 
(signed)             Vice President of the United States and 
                            President of the Senate. 