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98 STAT. 3183

"(ii) all debt instruments arising from the same transaction (or a series of related transactions) shall be treated as one debt instrument. "(F) CASH METHOD OF ACCOUNTING.—In the case of any sale or exchange before July 1, 1985, of property (other than new section 38 property) used in the active business of farming and in which the borrowed amount does not exceed $2,000,000— "(i) section 1274 of the Internal Revenue Code of 1954 shall not apply, and "(ii) interest on the obligation issued in connection with such sale or exchange shall be taken into account by both buyer and seller on the cash receipts and disbursements method of accounting. The Secretary of the Treasury or his delegate may by regulation prescribe rules to prevent the mismatching of interest income and interest deductions in connection with obligations on which interest is computed on the cash receipts and disbursements method of accounting. "(5) GENERAL RULE FOR ASSUMPTIONS OF LOANS.—Except as

provided in paragraphs (6) and (7), if any person— "(A) assumes, in connection with the sale or exchange of property, any debt obligation, or "(B) acquires any property subject to any debt obligation, sections 1274 and 483 of the Internal Revenue Code of 1954 shall apply to such debt obligation by reason of such assumption (or such acquisition). "(6) EXCEPTION FOR ASSUMPTIONS OF LOANS MADE ON OR BEFORE

OCTOBER 15, 1984.— "(A) IN GENERAL.—If any person— "(i) assumes, in connection with the sale or exchange of property, any debt obligation described in subparagraph (B) and issued on or before October 15, 1984, or "(ii) acquires any property subject to any such debt obligation issued on or before October 15, 1984, sections 1274 and 483 of the Internal Revenue Code of 1954 shall not be applied to such debt obligation by reason of such assumption (or such acquisition) unless the terms and conditions of such debt obligation are modified in connection with the assumption (or acquisition). "(B) OBLIGATIONS DESCRIBED IN THIS SUBPARAGRAPH.—A

debt obligation is described in this subparagraph if such obligation— "(i) was issued on or before October 15, 1984, and "(ii) was assumed (or property was taken subject to such obligation) in connection with the sale or exchange of property (including a deemed sale under section 338(a)) the sales price of which is greater than $100,000,000. "(C) REGULATIONS.—The Secretary shall prescribe such regulations as may be appropriate to effect the purpose of this paragraph and paragraph (5), including regulations relating to tax-exempt obligations, government subsidized loans, or other instruments. "(D)

CERTAIN

EXEMPT TRANSACTIONS.—The

Secretary

shall prescribe regulations under which any transaction shall be exempt from the application of this paragraph if

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text: Author:Otto Zacharias

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/

title: Author:Otto Zacharias


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 98 STAT. 3184

PUBLIC LAW 98-612—OCT. 31, 1984 such exemption is not likely to significantly reduce the tax liability of the purchaser by reason of the overstatement of the adjusted basis of the acquired asset. "(7) EXCEPTION FOR ASSUMPTIONS OF LOANS WITH RESPECT TO CERTAIN PROPERTY.—

"(A) IN GENERAL.—If any person— "(i) assumes, in connection with the sale or exchange of property described in subparagraph (B), any debt obligation, or "(ii) acquires any such property subject to any such debt obligation, sections 1274 and 483 of the Internal Revenue Code of 1954 shall not be applied to such debt obligation by reason of such assumption (or such acquisition) unless the terms and conditions of such debt obligation are modified in connection with the assumption (or acquisition). "(B) SALES OR EXCHANGES TO WHICH THIS PARAGRAPH

APPLIES.—This paragraph shall apply to any of the following sales or exchanges: "(i) RESIDENCES.—Any sale or exchange of a residence by an individual, an estate, or a testamentary trust, but only if— "(I) either— "(aa) such residence on the date of such sale or exchange (or in the case of an estate or testamentary trust, on the date of death of the decedent) was the principal residence (within the meaning of section 1034) of the individual or decedent, or "(bb) during the 2-year period ending on such date, no substantial portion of such residence was of a character subject to an allowance under this title for depreciation (or amortization in lieu thereof) in the hands of such individual or decedent, and "(II) such residence was not at any time, in the hands of such individual, estate, testamentary trust, or decedent, described in section 1221(1) (relating to inventory, etc.). "(ii) FARMS.—Any sale or exchange by a qualified person of— "(I) real property which was used as a farm (within the meaning of section 6420(c)(2)) at all times during the 3-year period ending on the date of such sale or exchange, or "(II) tangible personal property which was used in the active conduct of the trade or business of farming on such farm and is sold in connection with the sale of such farm, but only if such property is sold or exchanged for use in the active conduct of the trade or business of farming by the transferee of such property, "(iii) TRADES OR BUSINESSES.—

"(I) IN GENERAL.—Any sale or exchange by a qualified person of any trade or business. "(II)

APPLICATION WITH SUBPARAGRAPH

(B).—

This subparagraph shall not apply to any sale or

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 PUBLIC LAW 98-612—OCT. 31, 1984

98 STAT. 3185

exchange of any property described in subparagraph (B). "(Ill) NEW SECTION 38 PROPERTY.—This subparagraph shall not apply to the sale or exchange of any property which, in the hands of the transferee, is new section 38 property. "(iv) SALE OF BUSINESS REAL ESTATE.—Any sale or exchange of any real property used in an active trade or business by a person who would be a qualified person if he disposed of his entire interest. This subparagraph shall not apply to any transaction described in the last sentence of paragraph (6)(B) (relating to transaction in excess of $100,000,000). "(C) DEFINITIONS.—For purposes of this paragraph— "(i) QUALIFIED PERSON DEFINED.—The term 'qualified person' means— "(I) a person who— "(aa) is an individual, estate, or testamentary trust, "(bb) is a corporation which immediately prior to the date of the sale or exchange has 35 or fewer shareholders, or "(cc) is a partnership which immediately prior to the date of the sale or exchange has 35 or fewer partners, "(II) is a 10-percent owner of a farm or a trade or business, "(III) pursuant to a plan, disposes of— "(aa) an interest in a farm or farm property, or "(bb) his entire interest in a trade or business and all substantially similar trades or businesses, and "(IV) the ownership interest of whom may be readily established by reason of qualified allocations (of the type described in section 168(j)(9)(B), one class of stock, or the like), "(ii) 10-PERCENT OWNER DEFINED.—The term '10percent owner' means a person having at least a 10percent ownership interest, applying the attribution rules of section 318 (other than subsection (a)(4)).

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Page:United States Statutes at Large Volume 98 Part 3.djvu/814

 98 STAT. 3186

PUBLIC LAW 98-612—OCT. 31, 1984 "(iii) TRADE OR BUSINESS DEFINED.— "(I) IN GENERAL.—The term 'trade or business' means any trade or business, including any line of business, qualifying as an active trade or business within the meaning of section 855. "(II) RENTAL OF REAL PROPERTY.—For purposes of

this clause, the holding of real property for rental shall not be treated as an active trade or business." Approved October 31, 1984.

LEGISLATIVE HISTORY—H.R. 5361: HOUSE REPORT No. 98-1050 (Comm. on Ways and Means). CONGRESSIONAL RECORD, Vol. 130 (1984): Oct. 1, considered and passed House. Oct. 11, considered and passed Senate, amended; House concurred in Senate amendment with an amendment; Senate concurred in House amendment with an amendment; House concurred in Senate amendment.

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 PUBLIC LAW 98-613—OCT. 31, 1984

98 STAT. 3187

Public Law 98-613 98th Congress An Act To provide for the conservation and management of Atlantic striped bass, 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 "Atlantic Striped Bass Conservation Act". SEC. 2. FINDINGS AND PURPOSES.

(a) FINDINGS.—The Congress finds and declares the following: (1) Atlantic striped bass are of historic commercial and recreational importance and economic benefit to the Atlantic coastal States and to the Nation. (2) As a consequence of increased fishing pressure, environmental pollution, the loss and alteration of habitat, and the inadequacy of fishery conservation and management practices and controls, certain stocks of Atlantic striped bass have been severely reduced in number. (3) Because no single government entity has full management authority throughout the range of the Atlantic striped bass, the harvesting and conservation of these fish have been subject to diverse, inconsistent, and intermittent State regulation that has been detrimental to the long-term maintenance of stocks of the species and to the interests of fishermen and the Nation as a whole. (4) It is in the national interest to implement effective procedures and measures to provide for effective interjurisdictional conservation and management of this species. (b) PURPOSE.—It is therefore declared to be the purpose of the Congress in this Act to support and encourage the development, implementation, and enforcement of effective interstate action regarding the conservation and management of the Atlantic striped bass. SEC. 3. DEFINITIONS.

As used in this Act— (1) The term "Act of 1976" means the Act entitled "An Act to provide for the conservation and management of the fisheries, and for other purposes", approved April 13, 1976 (16 U.S.C. 1801 et seq.). (2) The term "Atlantic striped bass" means members of stocks or populations of the species Morone saxatilis, which ordinarily migrate seaward of the waters described in paragraph (3)(A). (3) The term "coastal waters" means— (A) all waters, whether salt or fresh, of a coastal State shoreward of the baseline from which the territorial sea of the United States is measured; and

Oct. 31, 1984 [H.R. 5492] Atlantic Striped Bass Conservation Act. 16 USC 1851 note. Fish and fishing. 16 USC 1851 note.

16 USC 1851 note.

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 98 STAT. 3188

56 Stat. 267, 64 Stat. 467.

16 USC 1851

PUBLIC LAW 98-613—OCT. 31, 1984 (B) the waters of a coastal State seaward from the baseHne referred to in subparagraph (A) to the inner boundary of the exclusive economic zone. (4) The term "coastal State" means Pennsylvania and each State of the United States bordering on the Atlantic Ocean north of the State of South Carolina. (5) The term "Commission" means the Atlantic States Marine Fisheries Commission established under the interstate compact consented to and approved by the Congress in Public Laws 77-539 and 81-721. (g) The term "fishing" means— (A) the catching, taking, or harvesting of Atlantic striped bass, except when incidental to harvesting that occurs in the course of commercial or recreational fish catching activities directed at a species other than Atlantic striped bass; (B) the attempted catching, taking, or harvesting of Atlantic striped bass; and (C) any operation at sea in support of, or in preparation for, any activity described in subparagraph (A) or (B). The term does not include any scientific research authorized by the Federal Government or by any State government. (7) The term "Plan" means the Interstate Fisheries Management Plan for Striped Bass, dated October 1, 1981, prepared by the Commission, and all amendments thereto related to fishing, including interim restoration measures for Chesapeake Bay striped bass stocks as developed by the Atlantic States Marine Fisheries Commission Striped Bass Management Board in December 1983, whether or not such language is formally adopted as an amendment to the Plan of October 1, 1981. (8) The term "Secretary" means the Secretary of Commerce. (9) The term "Secretaries" means the Secretary of Commerce and the Secretary of the Interior.

SEC. 4. COMMISSION FUNCTIONS.

(a) COASTAL STATE REGULATORY MEASURES.—The Commission shall decide during June 1985 whether each coastal state has adopted all regulatory measures necessary to fully implement the Plan in its coastal waters. The Commission shall immediately notify the Secretaries of each negative determination made by it under the preceding sentence. (b) MONITORING OF ENFORCEMENT.—Commencing on July 1, 1985, the Commission shall monitor on a biannual basis the enforcement of the Plan by each coastal State for purposes of deciding if that enforcement is satisfactory. Enforcement by a coastal State may not be considered satisfactory by the Commission if, in its view, the enforcement is being carried out in such a manner that the implementation of the Plan within its coastal waters is being, or will likely be, substantially and adversely affected. (c) NOTIFICATION TO SECRETARY OF RESULTS OF ENFORCEMENT MON-

ITORING.—On December 30, 1985, and on the closing date of each biannual period thereafter, the Commission shall notify the Secretaries of the results of the monitoring under subsection (b) of each coastal State. (d) SECRETARIAL ACTION AFTER NOTIFICATION.—Immediately upon receiving notice from the Commission—

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 PUBLIC LAW 98-613—OCT. 31, 1984

98 STAT. 3189

(1) under subsection (a) that a coastal State has not taken the actions described in that subsection; or (2) under subsection (c) that the enforcement of the Plan by a coastal State is not satisfactory; the Secretary shall determine, within 30 days, whether that coastal State is in compliance with the Plan and, if the State is not in compliance, the Secretary shall declare a moratorium on fishing for Atlantic striped bass within the coastal waters of that coastal State. In making such a determination, the Secretary shall carefully consider and review the comments of the Commission, that coastal State in question, and the Secretary of the Interior. SEC. 5. MORATORIUM.

(a) DEFINITIONS.—For purposes of this section— (1) The term "moratorium area" means the coastal waters with respect to which a declaration under section 4(d) applies. (2) The term "moratorium period" means the period beginning on the day on which moratorium is declared under section 4(d) regarding a coastal State and ending on the day on which the Commission notifies the Secretary that that State has taken appropriate remedial action with respect to those matters that were the cause of the moratorium being declared. (b) PROHIBITED ACTS DURING MORATORIUM.—During a moratorium period, it is unlawful for any person— (1) to engage in fishing within the moratorium area; (2) to land, or attempt to land, Atlantic striped bass that are caught, taken, or harvested in violation of paragraph (1); (3) to land lawfully harvested Atlantic striped bass within the boundaries of a coastal State when a moratorium declared under section 4(d) applies to that State; or (4) to fail to return to the water Atlantic striped bass to which the moratorium applies that are caught incidental to harvesting that occurs in the course of commercial or recreational fish catching activities, regardless of the physical condition of the striped bass when caught. (c) PENALTIES AND FORFEITURES.—(1) Any person who is found by the Secretary, after notice and an opportunity for a hearing in accordance with section 554 of title 5, United States Code, to have committed an act that is unlawful under subsection (b), shall be liable to the United States for a civil penalty. The amount of the civil penalty shall not exceed $1,000 for each violation. Each day of continuing violation shall constitute a separate offense. The amount of such civil penalty shall be assessed by the Secretary by written notice. In determining the amount of such penalty, the Secretary shall take into account the nature, circumstances, extent, and gravity of the prohibited act committed and, with respect to the violator, the degree of culpability, any history of prior violations, abiHty to pay, and such other matters as justice may require. (2) Subsections (b) through (e) of section 308 of the Act of 1976 (16 U.S.C. 1858(b)-(e); relating to review of civil penalties, action upon failure to pay assessment, compromise, and subpenas) shall apply to penalties assessed under paragraph (1) to the same extent and in the same manner as if those penalties were assessed under subsection (a) of such section 308. (d) CIVIL FORFEITURES.—(1) Any vessel (including its gear, equipment, appurtenances, stores, and cargo) used, and any fish (or the fair market value thereof) taken or retained, in any manner, in

16 USC 1851

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 98 STAT. 3190

PUBLIC LAW 98-613—OCT. 31, 1984

connection with, or the result of, the commission of any act that is unlawful under subsection (b), shall be subject to forfeiture to the United States. All or part of the vessel may, and all such fish (or the fair market value thereof) shall, be forfeited to the United States under a civil proceeding described in paragraph (2). The district courts of the United States have jurisdiction over proceedings under this subsection. (2) Subsections (c) through (e) of section 310 of the Act of 1976 (16 U.S.C. 1860(c)-(e); relating to judgment, procedure, and rebuttable presumptions) apply with respect to proceedings for forfeiture commenced under this subsection to the same extent and in the same manner as if the proceeding were commenced under subsection (a) of such section 310. (e) ENFORCEMENT.—The Secretary shall enforce a moratorium declared under section 4(d). The Secretary may, by agreement, on a reimbursable basis or otherwise, utilize the personnel, services, equipment (including aircraft and vessels), and facilities of any other Federal department or agency and of any agency of a coastal State in carrying out that enforcement. 16 USC 1851 note.

Federal Register, publication. 16 USC 1851 note.

16 USC 1851 note. Report.

16 USC 1851 note.

SEC. 6. COMPREHENSIVE ANNUAL SURVEYS.

For the purposes of implementing the provisions of this Act, the Secretary and the Secretary of the Interior shall jointly conduct a comprehensive annual survey of the Atlantic striped bass fisheries. Each survey shall include, but not be limited to, a compilation and assessment of the recreational and commercial landings of that species in the coastal States during the period considered in the survey. The results of each annual survey shall be published in the Federal Register. SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

Funds for activities in fiscal year 1985 under this Act shall be made available only from funds appropriated for the Department of Commerce and the Department of the Interior for fiscal year 1985. For fiscal year 1986, there are authorized such sums as may be necessary or appropriate to carry out the provisions of this Act. SEC. 8. SECRETARIAL STUDY.

Within six months of the date of enactment of this Act, the Secretaries shall review the existing Plan and shall report to the Commission, the Chairman of the House Committee on Merchant Marine and Fisheries, the Chairman of the Senate Committee on Commerce, Science and Transportation and the Chairman of the Senate Committee on Environment and Public Works on the adequacy of the Plan to achieve the purposes of this Act. Such report shall include recommendations for additional measures that niay need to be taken and include recommendations concerning specific State actions regarding the management and conservation of striped bass. SEC. 9. EFFECTIVE PERIOD.

Sections 1 through 8 shall take effect upon enactment of this Act and shall cease to have force and effect 18 months after the date of enactment of this Act. SEC. 10. MISCELLANEOUS PROVISIONS.

(a) Section 7 of the Anadromous Fish Conservation Act (16 U.S.C. 757g) is amended by amending subsection (d) by striking out "and

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 PUBLIC LAW 98-613—OCT. 31, 1984

98 STAT. 3191

September 30, 1984." and inserting in lieu thereof "September 30, 1984, September 30, 1985, and September 30, 1986.". (b) There are authorized to be appropriated to the Department of Commerce, $200,000 for each of fiscal years 1986 and 1987, and the amount that is appropriated under this authority for each such year shall be apportioned equally by the Secretary between the States of Maryland and Virginia for use by each of them for the propagation, in existing hatchery facilities of that State, of striped bass for the replenishment of the Chesapeake Bay stock: (1) if that State, for each such fiscal year, expends an equal amount of State moneys for the propagation of such stock in its hatchery facilities; and (2) if the Secretary considers that that State is in full compliance with the Plan. (c) Section 207 of the Act entitled "An Act to provide for the establishment of the Bandon Marsh National Wildlife Refuge, Coos County, State of Oregon, and for other purposes" (Public Law 97137) is amended to read as follows:

Appropriation authorization.

95 Stat. 1712.

AUTHORIZATION OF APPROPRIATIONS

"SEC. 207. The Secretary of the Army is authorized to carry out his responsibilities under this title, at an estimated cost of $1,040,000. Any sums appropriated under this title shall remain available until expended.". (d) The amendment made by subsection (c) shall take effect October 1, 1986. Approved October 31, 1984.

LEGISLATIVE HISTORY—H.R. 5492: HOUSE REPORTS: No. 98-1029 and Pt. 2 (Comm. on Merchant Marine and Fisheries). CONGRESSIONAL RECORD, Vol. 130 (1984): Oct. 4, considered and passed House. Oct. 11, considered and passed Senate, amended; House concurred in Senate amendment.

Effective date.

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 98 STAT. 3192

PUBLIC LAW 98-614—NOV. 8, 1984

Public Law 98- •614 98th Congress An Act Nov. 8, 1984 [H.R. 1314]

Reorganization Act Amendments of 1984. 5 USC 901 note.

To extend and revise the authority of the President under chapter 9 of title 5, United States Code, to transmit to the Congress plans for the reorganization of the agencies of the executive branch of the Government, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Reorganization Act Amendments of 1984". EXTENSION OF AUTHORITY

SEC. 2. (a) Subsection (b) of section 905 of title 5, United States Code, is amended to read as follows: "(b) A provision contained in a reorganization plan may take effect only if the plan is transmitted to Congress (in accordance with section 903(b)) on or before December 31, 1984.". (b) Paragraph (1) of section 908 of title 5, United States Code, is amended by striking out "described by section 909 of this title" and inserting in lieu thereof "with respect to any reorganization plans transmitted to Congress (in accordance with section 903(b) of this chapter) on or before December 31, 1984". METHOD OF TAKING EFFECT

SEC. 3. (a) Section 906 of title 5, United States Code, is amended— (1) by striking out subsection (a) and inserting in lieu thereof the following: President of U.S. "(a) Except as provided under subsection (c) of this section, a reorganization plan shall be effective upon approval by the President of a resolution (as defined in section 909) with respect to such plan, if such resolution is passed by the House of Representatives and the Senate, within the first period of 90 calendar days of continuous session of Congress after the date on which the plan is transmitted to Congress. Failure of either House to act upon such resolution by the end of such period shall be the same as disapproval of the resolution."; and (2) by striking out everjrthing after "otherwise is effective" in subsection (c) and inserting in lieu thereof a period. (b) Chapter 9 of title 5, United States Code, is further amended— 5 USC 903. (1) by striking out "thirty calendar days" in section 903(c) and inserting in lieu thereof "60 calendar days"; (2) by striking out "sixty calendar days" in such section and inserting in lieu thereof "90 calendar days"; 5 USC 910. (3) by striking out "45 calendar days" in section 910(b) and inserting in lieu thereof "75 calendar days"; and 5 USC 911. (4) by striking out "45 calendar days" in section 911 and inserting in lieu thereof "75 calendar days". (c) Section 909 of title 5, United States Code, is amended—

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98 STAT. 3193

(1) by striking out "a resolution of either House of Congress" and inserting in lieu thereof "a joint resolution of the Congress"; and (2) by striking out "the does not favor" and inserting in lieu thereof "the Congress approves". (d) Section 912 of title 5, United States Code, is amended— (1) by striking out "agreed to or disagreed to" in subsection (b) and inserting in lieu thereof "passed or rejected"; and (2) by striking out "final approval" in subsection (c) and inserting in lieu thereof "final passage". (e)(1) Section 912 is amended by adding at the end thereof the following new subsection: "(e) If, prior to the passage by one House of a resolution of that House, that House receives a resolution with respect to the same reorganization plan from the other House, then— "(1) the procedure in that House shall be the same as if no resolution had been received from the other House; but "(2) the vote on final passage shall be on the resolution of the other House.". (2) The heading of such section is amended by striking out "disapproval" and inserting in lieu thereof "passage". (3) The table of contents for chapter 9 of title 5, United States Code, is amended by striking out "disapproval" in the item pertaining to section 912 and inserting in lieu thereof "passage". INFORMATION TO ACCOMPANY PLANS

SEC. 4. Section 903(b) of title 5, United States Code, is amended by adding at the end thereof the following new sentences: "In addition, the President's message shall include an implementation section which shall (1) describe in detail (A) the actions necessary or planned to complete the reorganization, (B) the anticipated nature and substance of any orders, directives, and other administrative and operational actions which are expected to be required for completing or implementing the reorganization, and (C) any preliminary actions which have been taken in the implementation process, and (2) contain a projected timetable for completion of the implementation process. The President shall also submit such further background or other information as the Congress may require for its consideration of the plan.". RESTRICTIONS ON CONTENTS OF PLANS

SEC. 5. (a) Section 905(a) of title 5, United States Code, is amended— (1) by inserting "or renaming an existing executive department" immediately after "a new executive department" in paragraph (1);

President of U.S.

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 98 STAT. 3194

PUBLIC LAW 98-614—NOV. 8, 1984

(2) by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively, and by inserting immediately after paragraph (4) the following new paragraph: "(5) creating a new agency which is not a component or part of an existing executive department or independent agency;", (b) Section 904(1) of such title is amended by inserting ", subject to section 905," immediately after "may". Approved November 8, 1984.

LEGISLATIVE HISTORY—H.R. 1314: HOUSE REPORTS: No. 98-128, Pt. 1 (Comm. on Government Operations) and Pt. 2 (Comm. on Rules). CONGRESSIONAL RECORD, Vol 130 (1984): Apr. 10, considered and passed House. Oct. 11, considered and passed Senate.

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 PUBLIC LAW 98-615—NOV. 8, 1984

98 STAT. 3195

Public Law 98-615 98th Congress An Act To provide retirement equity for former spouses of civil service retirees, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Civil Service Retirement Spouse Equity Act of 1984". SEC. 2. Chapter 83 of title 5, United States Code, is amended— (1) in section 8331— (A) by striking out "and" at the end of paragraph (21); (B) by striking out the period at the end of paragraph (22) and inserting in lieu thereof a semicolon; and (C) by adding at the end thereof the following new paragraphs: "(23) 'former spouse' means a former spouse of an individual— "(A) if such individual performed at least 18 months of civilian service covered under this subchapter as an employee or Member, and "(B) if the former spouse was married to such individual for at least 9 months; and "(24) 'Indian court' means an Indian court as defined by section 201(3) of the Act entitled 'An Act to prescribe penalties for certain acts of violence or intimidation, and for other purposes', approved April 11, 1968 (25 U.S.C. 1301(3); 82 Stat. 77)."; (2) by amending section 8334(h) to read as follows: "(h) For the purpose of survivor annuities, deposits authorized by subsections (c), (d), and (j) of this section and by section 8339(j)(5)(C) and the last sentence of section 8339(k)(2) of this title may also be made by a survivor of an employee or Member."; (3) in section 8339— (A) by amending subsection (j) to read as follows: "(j)(l) The annuity computed under subsections (a)-(i) and (n) of this section (or a portion of the annuity, if jointly designated for this purpose by the employee or Member and the spouse of the employee or Member under procedures prescribed by the Office of Personnel Management) for an employee or Member who is married at the time of retiring under this subchapter is reduced as provided in paragraph (4) of this subsection in order to provide a survivor annuity for the spouse under section 8341(b) of this title, unless the employee or Member and the spouse jointly waive the spouse's right to a survivor annuity in a written election filed with the Office at the time that the employee or Member retires. Each such election shall be made in accordance with such requirements as the Office shall, by regulation, prescribe, and shall be irrevocable. The Office shall provide, by regulation, that an employee or Member may waive the survivor annuity without the spouse's consent if the employee or Member establishes to the satisfaction of the Office—

Nov. 8, 1984 [H.R. 2300] Civil Service Retirement Spouse Equity Act of 1984. 5 USC 8331 note. 5 USC 8331.

5 USC 8334. Infra. Infra.

Post, p. 3199.

Regulations. Waiver.

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 98 STAT. 3196

Post, p. 3199.

Post, p. 8199.

Post, p. 3199.

Regulations. Waiver.

PUBLIC LAW 98-615—NOV. 8, 1984

"(A) that the spouse's whereabouts cannot be determined, or "(B) that, due to exceptional circumstances, requiring the employee or Member to seek the spouse's consent would otherwise be inappropriate. "(2) If an employee or Member has a former spouse who is entitled to a survivor annuity as provided in section 8341(h) of this title, the annuity of the employee or Member computed under subsections (a)-(i) and (n) of this section (or any designated portion of the annuity, in the event that the former spouse is entitled to less than 55 percent of the employee or Member's annuity) is reduced as provided in paragraph (4) of this subsection. "(3) An employee or Member who has a former spouse may elect, under procedures prescribed by the Office, to have the annuity computed under subsections (a)-(i) and (n) of this section or a portion thereof reduced as provided in paragraph (4) of this subsection in order to provide a survivor annuity for such former spouse under section 8341(h) of this title. An election under this paragraph shall be made at the time of retirement or, if later, within 2 years after the date on which the marriage of the former spouse to the employee or Member is dissolved, subject to a deposit in the Fund by the retired employee or Member, within such 2-year period, of an amount determined by the Office, as nearly as may be administratively feasible, to reflect the amount by which the annuity of such employee or Member would have been reduced if the election had been continuously in effect since the date the annuity commenced, plus interest. For the purposes of the preceding sentence, the annual rate of interest for each year during which the annuity would have been reduced if the election had been in effect since the date the annuity commenced shall be 6 percent. If the employee or Member does not make such a deposit, the Office shall collect the amount of the deposit by offset against the employee or Member's annuity, up to a maximum of 25 percent of the net annuity otherwise payable to the employee or Member, and the employee or Member is deemed to consent to such offset. An election under this paragraph— "(A) shall not be effective to the extent that it— "(i) conflicts with— "(I) any court order or decree referred to in subsection (h)(1) of section 8341 of this title, which was issued before the date of such election; or "(II) any agreement referred to in such subsection which was entered into before such date; or "(ii) would cause the total of survivor annuities payable under subsections (b), (d), (f), and (h) of section 8341 of this title based on the service of the employee or Member to exceed 55 percent of the annuity to which the employee or Member is entitled under subsections (a)-(i) and (n) of this section; and "(B) shall not be effective, in the case of an employee or Member who is then married, unless it is made with the spouse's written consent. The Office shall provide by regulation that subparagraph (B) of this paragraph may be waived for either of the reasons set forth in the last sentence of paragraph (1) of this subsection. In the case of a retired employee or Member whose annuity is being reduced in order to provide a survivor annuity for a former spouse, an election to provide or increase a survivor annuity for any other former spouse (and to continue an appropriate reduction) may be made

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text:
Page:United States Statutes at Large Volume 98 Part 3.djvu/825

 PUBLIC LAW 98-615—NOV. 8, 1984

98 STAT. 3197

within the same period that, and subject to the same conditions under which, an election could be made under paragraph (5)(B) of this subsection for a current spouse (subject to the provisions of this paragraph relating to consent of a current spouse, if the retired employee or Member is then married). The opportunity to make an election under the preceding sentence is in addition to any opportunity otherwise afforded under this paragraph. "(4) In order to provide a survivor annuity or combination of survivor annuities under subsections (b), (d), (f), and (h) of section 8341 of this title, the annuity of an employee or Member (or any Post, p. 3199. designated portion or portions thereof) is reduced by 2V2 percent of the first $3,600 thereof plus 10 percent of so much thereof as exceeds $3,600. "(5)(A) Any reduction in an annuity for the purpose of providing a Termination survivor annuity for the current spouse of a retired employee or dates. Member shall be terminated for each full month— "(i) after the death of the spouse, or "(ii) after the dissolution of the spouse's marriage to the employee or Member, except that an appropriate reduction shall be made thereafter if the spouse is entitled, as a former spouse, to a survivor annuity under section 8341(h) of this title. Post, p. 3199. "(B)(i) Any reduction in an annuity for the purpose of providing a survivor annuity for a former spouse of a retired employee or Member shall be terminated for each full month after the former spouse remarries before reaching age 55 or dies, unless the employee or Member elects, within 2 years after the former spouse's death or remarriage, to continue the reduction in order to provide a survivor annuity or increase the survivor annuity for the current spouse of the retired employee or Member. "(ii) Notwithstanding clause (i) of this subparagraph— "(I) a reduction in an annuity shall not be terminated under such clause, and "(ID an election made under such clause with respect to a current spouse after a remarriage before age 55 or the death of a former spouse shall not be effective, if, and to the extent that, continuation of the reduction is necessary in order to provide for any survivor annuity, or any increase in a survivor annuity, which becomes payable under section 8341(h)(2) of this title to any other former spouse as a result of such remarriage or death. "(C)(i) Upon remarriage, a retired employee or Member who was married at the time of retirement (including an employee or Member whose annuity was not reduced to provide a survivor annuity for the employee or Member's spouse or former spouse as of the time of retirement) may irrevocably elect during such marriage, in a signed writing received by the Office within 2 years after such remarriage or, if later, within 2 years after the death or remarriage of any former spouse of such employee or Member who was entitled to a survivor annuity under section 8341(h) of this title (or of the last such surviving former spouse, if there was more than one), a reduction in the employee or Member's annuity under paragraph (4) of this subsection for the purpose of providing an annuity for such employee or Member's spouse in the event such spouse survives the employee or Member. "(ii) Such election and reduction shall be effective the first day of Effective date. the second month after the election is received by the Office, but not less than 9 months after the date of the remarriage, and the retired

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text:
Page:United States Statutes at Large Volume 98 Part 3.djvu/826

 98 STAT. 3198

Effective date.

PUBLIC LAW 98-615—NOV. 8, 1984

employee or Member shall, within 2 years after the date of the remarriage or, if later, the death or remarriage of the former spouse (or of the last such surviving former spouse), deposit in the Fund an amount determined by the Office of Personnel Management, as nearly as may be administratively feasible, to reflect the amount by which the annuity of such retired employee or Member would have been reduced if the election had been in effect since the date of retirement or, if later, the date the previous reduction in such retired employee or Member's annuity was terminated under subparagraph (A) or (B) of this paragraph, plus interest. For the purposes of the preceding sentence, the annual rate of interest for each year during which an annuity would have been reduced if the election had been in effect on and after the applicable date referred to in such sentence shall be 6 percent. "(iii) If the employee or Member does not make such deposit, the Office shall collect such amount by offset against the employee or Member's annuity, up to a maximum of 25 percent of the net annuity otherwise payable to the employee or Member, and the employee or Member is deemed to consent to such offset. "(iv) Notwithstanding any other provision of this subparagraph, an election under this subparagraph may not be made for the purpose of providing an annuity in the case of a spouse by remarriage if such spouse was married to the employee or Member at the time of such employee or Member's retirement, and all rights to survivor benefits for such spouse under this subchapter based on marriage to such employee or Member were then waived under paragraph (1) of this subsection or a similar prior provision of law."; (B) in subsection (k)(l) by striking out "unmarried" in the first sentence thereof; and (C) by amending subsection (k)(2) to read as follows: "(2)(A) An employee or Member, who is unmarried at the time of retiring under a provision of law which permits election of a reduced annuity with a survivor annuity payable to such employee or Member's spouse and who later marries, may irrevocably elect, in a signed writing received in the Office within 2 years after such employee or Member marries or, if later, within 2 years after the death or remarriage of any former spouse of such employee or Member who was entitled to a survivor annuity under section 8341(h) of this title (or of the last such surviving former spouse, if there was more than one), a reduction in the retired employee or Member's current annuity as provided in subsection (j) of this section. "(B)(i) The election and reduction shall take effect the first day of the first month beginning 9 months after the date of marriage and shall prospectively void any election previously made under paragraph (1) of this subsection. "(ii) Within 2 years after the date of marriage, the retired employee or Member (other than an employee or Member who made a previous election under paragraph (1) of this subsection) shall deposit in the Fund an amount determined by the Office of Personnel Management, as nearly as may be administratively feasible, to reflect the amount by which the retired employee or Member's annuity would have been reduced under subsection (j)(4) of this section since the commencing date of the annuity, if the employee or Member had been married at the time of retirement and had elected to provide a survivor annuity at that time, plus interest. For the purposes of the preceding sentence, the annual rate of interest for

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text:
Page:United States Statutes at Large Volume 98 Part 3.djvu/827

 PUBLIC LAW 98-615—NOV. 8, 1984

98 STAT. 3199

each year during which the annuity would have been reduced if the election had been in effect since the date of the annuity commenced shall be 6 percent. "(C) If the employee or Member does not make such deposit, the Office shall collect such amount by offset against the employee or Member's annuity, up to a maximum of 25 percent of the net annuity otherwise payable to the employee or Member, and the employee or Member is deemed to consent to such offset."; (4) in section 8341— (A) in paragraphs (IKA) and (2)(A) of subsection (a), by striking out "1 year" and inserting in lieu thereof "9 months"; (B) in subsection (b)— (i) by amending paragraph (1) to read as follows: "(b)(1) Except as provided in paragraph (2) of this subsection, if an employee or Member dies after having retired under this subchapter and is survived by a widow or widower, the widow or widower is entitled to an annuity equal to 55 percent (or 50 percent if retired before October 11, 1962) of an annuity computed under section 8389(a)-(i) and (n) of this title as may apply with respect to the annuitant, or of such portion thereof as may have been designated for this purpose under section 8339(j)(l) of this title, unless the right to a survivor annuity was waived under such section 8339(j)(l) or, in the case of remarriage, the employee or Member did not file an election under section 8339(j)(5)(C) or section 8339(k)(2) of this title. as the case may be."; (ii) in the second and third sentences of paragraph (3) by striking out "spouse, widow," each place it appears and inserting in lieu thereof "widow"; (iii) by striking out "60 years of age" at the end of paragraph (3) and inserting in lieu thereof "55 years of age"; and (iv) by adding at the end thereof the following new paragraph: "(4) Notwithstanding the preceding provisions of this subsection, the annuity payable under this subsection to the widow or widower of a retired employee or Member may not exceed the difference between— "(A) the amount which would otherwise be payable to such widow or widower under this subsection (determined without regard to any waiver or designation under section 8339(j)(l) of this title or a prior similar provision of law), and "(B) the amount of the survivor annuity payable to any former spouse of such employee or Member under subsection (h) of this section."; (C) in subsection (d)— (i) by inserting after the first sentence the following: "Notwithstanding the preceding sentence, the annuity payable under this subsection to the widow or widower of an employee or Member may not exceed the difference between— "(A) the amount which would otherwise be payable to such widow or widower under this subsection, and "(B) the amount of the survivor annuity payable to any former spouse of such employee or Member under subsection (h) of this section."; and (ii) in the last sentence, by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively,

5 USC 8341.

5 USC 8339. Ante, p. 3195. Ante, p. 3195.

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text:
Page:United States Statutes at Large Volume 98 Part 3.djvu/828

 98 STAT. 3200

Ante, p. 3195.

Effective dates. Termination Q£IL6S.

PUBLIC LAW 98-615—NOV. 8, 1984 and by striking out "60 years of age" and inserting in lieu thereof "55 years of age"; (D) in subsection (e)— (i) in paragraph (1), by inserting "or a former spouse who is the natural or adoptive parent of a surviving child of the employee or Member" after "survived by a spouse" each place it appears; and (ii) by amending the last sentence of paragraph (2) to read as follows: "On the death of the surviving spouse or former spouse or termination of the annuity of a child, the annuity of any other child or children shall be recomputed and paid as though the spouse, former spouse, or child had not survived the employee or Member."; (E) in subsection (f) by inserting after paragraph (2) the following: "Notwithstanding the preceding sentence, an annuity payable under this subsection to the surviving spouse of a Member may not exceed the difference between— "(A) the annuity which would otherwise be payable to such surviving spouse under this subsection, and "(B) the amount of the survivor annuity payable to any former spouse of such Member under subsection (h) of this section."; and (F) in subsection (g) by striking out "60 years of age" and inserting in lieu thereof "55 years of age"; and (G) by adding at the end thereof the following new subsections: "(h)(1) Subject to paragraphs (2) through (5) of this subsection, a former spouse of a deceased employee, Member, or annuitant is entitled to a survivor annuity under this subsection, if and to the extent expressly provided for in an election under section 8339(j)(3) of this title, or in the terms of any decree of divorce or annulment or any court order or court-approved property settlement agreement incident to such decree. "(2)(A) The annuity payable to a former spouse under this subsection may not exceed the difference between— "(i) the amount applicable in the case of such former spouse, as determined under subparagraph (B) of this paragraph, and "(ii) the amount of any annuity payable under this subsection to any other former spouse of the employee. Member, or annuitant, based on an election previously made under section 8339(j)(3) of this title, or a court order previously issued. "(B) The applicable amount, for purposes of subparagraph (A)(i) of this paragraph in the case of a former spouse, is the amount which would be applicable— "(i) under subsection (b)(4)(A) of this section in the case of a widow or widower, if the deceased was an employee or Member who died after retirement; "(ii) under subparagraph (A) of subsection (d) of this section in the case of a widow or widower, if the deceased was an employee or Member described in the first sentence of such subsection; or "(iii) under subparagraph (A) of subsection (f) of this section in the case of a surviving spouse, if the deceased was a Member described in the first sentence of such subsection. "(3) The commencement and termination of an annuity payable under this subsection shall be governed by the terms of the applica-

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text:
Page:United States Statutes at Large Volume 98 Part 3.djvu/829

 PUBLIC LAW 98-615—NOV. 8, 1984

98 STAT. 3201

ble order, decree, agreement, or election, as the case may be, except that any such annuity— "(A) shall not commence before— "(i) the day after the employee. Member, or annuitant dies, or "(ii) the first day of the second month beginning after the date on which the Office receives written notice of the order, decree, agreement, or election, as the case may be, together with such additional information or documentation as the Office may prescribe, whichever is later, and "(B) shall terminate— "(i) in the case of an annuity computed by reference to clause (i) or (ii) of paragraph (2)(B) of this subsection, no later than the last day of the month before the former spouse remarries before becoming 55 years of age or dies; or "(ii) in the case of an annuity computed by reference to clause (iii) of such paragraph, no later than the last day of the month before the former spouse remarries or dies. "(4) For purposes of this subchapter, a modification in a decree, order, agreement, or election referred to in paragraph (1) of this subsection shall not be effective— "(A) if such modification is made after the retirement of the employee or Member concerned, and "(B) to the extent that such modification involves an annuity under this subsection. "(5) For purposes of this subchapter, a decree, order, agreement, or election referred to in paragraph (1) of this subsection shall not be effective, in the case of a former spouse, to the extent that it is inconsistent with any joint designation or waiver previously executed with respect to such former spouse under section 8339(j)(l) of this title or a similar prior provision of law. Ante, p. 3195. "(6) Any payment under this subsection to a person bars recovery by any other person. "(7) As used in this subsection, 'court' means any court of any State, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, or the Virgin Islands, and any Indian court. "(i) The requirement in subsections (a)(1)(A) and (a)(2)(A) of this section that the surviving spouse of an employee or Member have been married to such employee or Member for at least 9 months immediately before the employee or Member's death in order to qualify as the widow or widower of such employee or Member shall be deemed satisfied in any case in which the employee or Member dies within the applicable 9-month period, if— "(1) the death of the employee or Member was accidental; or "(2) the surviving spouse of such individual had been previously married to the individual and subsequently divorced, and the aggregate time married is at least 9 months."; (5) in section 8342(a)— 5 USC 8342. (A) by striking out "An" and inserting in lieu thereof "Subject to subsection (j) of this section, an"; and (B) by adding at the end thereof the following new subsection: "(j)(l) Payment of the lump-sum credit under subsection (a) of this section—

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text:
Page:United States Statutes at Large Volume 98 Part 3.djvu/830

 98 STAT. 3202

Ante, p. 3199. Infra. Regulations. Waiver.

Regulations. 5 USC 8345.

5 USC 8348.

5 USC 8901.

PUBLIC LAW 98-615—NOV. 8, 1984

"(A) may be made only if any current spouse and any former spouse of the employee or Member are notified of the employee or Member's application; and "(B) in any case in which there is a former spouse, shall be subject to the terms of a court order or decree issued with respect to such former spouse if— "(i) the order or decree expressly relates to any portion of the lump-sum credit involved, and "(ii) payment of the lump-sum credit would extinguish entitlement of the former spouse to a survivor annuity under section 8341(h) of this title or to any portion of an annuity under section 8345(j) of this title. "(2)(A) Notification of a spouse or former spouse under this subsection shall be made in accordance with such requirements as the Office shall by regulation prescribe. "(B) Under the regulations, the Office may provide that paragraph (1)(A) of this subsection may be waived with respect to a spouse or former spouse if the employee or Member establishes to the satisfaction of the Office that the whereabouts of such spouse or former spouse cannot be determined. "(3) The Office shall prescribe regulations under which this subsection shall be applied in any case in which the Office receives two or more such orders or decrees."; (6) in section 8345— (A) in subsection (f) by adding at the end thereof the following new paragraph: "(4) The provisions of this subsection shall not apply— "(A) to any survivor annuity payable under subsection (h) of section 8341 of this title; or "(B) to any survivor annuity payable under subsection (b), (d), or (f) of such section which is reduced on account of any survivor annuity referred to in subparagraph (A) of this paragraph."; and (B) in subsection (j)(3) by striking out "or the District of Columbia" and inserting in lieu thereof the following: ", the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, or the Virgin Islands, and any Indian court"; and (7) in section 8348(a)(1)(B) by striking out "this title" and inserting in lieu thereof "this title, in administering survivor annuities and elections providing therefor under sections 8339 and 8341 of this title,". SEC. 3. Chapter 89 of title 5, United States Code, is amended— (1) in section 8901— (A) by striking out "and" at the end of paragraph (8); (B) by striking out the period at the end of paragraph (9) and inserting in lieu thereof "; and"; and (C) by adding at the end thereof the following new paragraph: "(10) 'former spouse' means a former spouse of an employee, former employee, or annuitant— "(A) who has not remarried before age 55 after the marriage to the employee, former employee, or annuitant was dissolved, "(B) who was enrolled in an approved health benefits plan under this chapter as a family member at any time during the 18-month period before the date of the dissolu-

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text:
Page:United States Statutes at Large Volume 98 Part 3.djvu/831

 PUBLIC LAW 98-615—NOV. 8, 1984

98 STAT. 3203

tion of the marriage to the employee, former employee, or annuitant, and "(C)(i) who is receiving any portion of an annuity under section 8345(j) of this title or a survivor annuity under section 8341(h) of this title (or benefits similar to either of the aforementioned annuity benefits under a retirement system for Government employees other than the Civil Service Retirement System), "(ii) as to whom a court order or decree referred to in section 8341(h) or 8345(j) of this title (or similar provision of law under any such retirement system other than the Civil Service Retirement System) has been issued, or for whom an election has been made under section 8339(j)(3) of this title (or similar provision of law), or "(iii) who is otherwise entitled to an annuity or any portion of an annuity as a former spouse under a retirement system for Government employees, except that such term shall not include any such unremarried former spouse of a former employee whose marriage was dissolved after the former employee's separation from the service (other than by retirement)."; (2) in section 8902— (A) in subsection (g) by striking out "employee or annuitant" each place it appears and inserting in lieu thereof "employee, annuitant, family member, or former spouse"; and (B) in subsections (j) and (k) by striking out "or family member" and inserting in lieu thereof "family member, or former spouse"; (3) in section 8903(1)— (A) by striking out "employees or annuitants, or members of their families" and inserting in lieu thereof "employees, annuitants, members of their families, or former spouses"; and (B) by striking out "employee or annuitant or member of his family" and inserting in lieu thereof "employee, annuitant, family member, or former spouse"; (4) in section 8905— (A) by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively, and inserting after subsection (b) the following new subsection: "(c)(1) A former spouse may— "(A) within 60 days after the dissolution of the marriage, or "(B) in the case of a former spouse of a former employee whose marriage was dissolved after the employee's retirement, within 60 days after the dissolution of the marriage or, if later, within 60 days after an election is made under section 8339(j)(3) of this title for such former spouse by the retired employee. enroll in an approved health benefits plan described by section 8903 of this title as an individual or for self and family as provided in paragraph (2) of this subsection, subject to agreement to pay the full subscription charge of the enrollment, including the amounts determined by the Office to be necessary for administration and reserves pursuant to section 8909(b) of this title. The former spouse shall submit an enrollment application and make premium payments to the agency which, at the time of divorce or annulment, employed the employee to whom the former spouse was married or, in the case

Ante, p. 3202. ^"^^' P- ^l^^-

Ante, p. 3195.

5 USC 8902.

5 USC 8903.

5 USC 8905.

Health.

Ante, p. 3195. 5 USC 8903.

Post, p. 3204.

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text:
Page:United States Statutes at Large Volume 98 Part 3.djvu/832

 98 STAT. 3204 Ante, pp. 3199, 3202.

5 USC 8907.

5 USC 8909.

5 USC 8913.

PUBLIC LAW 98-615—NOV. 8, 1984 of a former spouse who is receiving annuity payments under section 8341(h) or 8345(j) of this title, to the Office of Personnel Management. "(2) Coverage for self and family under this subsection shall be limited to— "(A) the former spouse; and "(B) unmarried dependent natural or adopted children of the former spouse and the employee who are— "(i) under 22 years of age; or "(ii) incapable of self-support because of mental or physical disability which existed before age 22."; and (B) in subsections (e) and (f), as so designated by subparagraph (A) of this paragraph, by striking out "An employee or annuitant" and inserting in lieu thereof "An employee, annuitant, or former spouse"; (5) in section 8907— (A) in subsection (a) by striking out "employee" each place it appears and inserting in lieu thereof "individual"; (B) in subsection (b)— (i) by striking out "employee enrolled" and inserting in lieu thereof "enrollee"; (ii) in paragraph (1) by striking out "employee or the employee and members of his family" and inserting in lieu thereof "enrollee or the enrollee and any eligible family members"; and (iii) in paragraph (3) by striking out "the employee or members of his family' and inserting in lieu thereof "the enrollee and any eligible family members"; and (C) by amending the section heading to read as follows: "§ 8907. Information to individuals eligible to enroll"; (6) in section 8909— (A) in subsections (a) and (b) by striking out "employees, annuitants," and inserting in lieu thereof "enrollees"; and (B) in subsection (d) by striking out "Each employee or annuitant" and inserting in lieu thereof "Each employee, annuitant, or former spouse"; (7) in section 8913(c)— (A) in the first sentence by striking out "employees and annuitants and members of their families" and inserting in lieu thereof "employees, annuitants, members of their families, and former spouses"; and (B) in the second sentence by inserting "or former spouse" after "in which an annuitant"; and (8) in the chapter analysis, by striking out the item relating to section 8907 and inserting in lieu thereof the following: "8907. Information to individuals eligible to enroll.".

Effective dates. 5 USC 8341 note,

5 USC 8331.

SEC. 4. (a)(1) Except as provided in subsections (b^ and (c), the amendments made by section 2 of this Act shall take effect one hundred and eighty days after the date of enactment of this Act and shall apply to any individual who, on or after such effective date, is married to an employee or Member who, on or after such effective date, retires, dies, or applies for a refund of contributions under subchapter III of chapter 83 of title 5, United States Code. (2) Except as provided in subsection (f), the amendments made by section 3 of this Act shall take effect one hundred and eighty days

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Page:United States Statutes at Large Volume 98 Part 3.djvu/833

 PUBLIC LAW 98-615—NOV. 8, 1984

98 STAT. 3205

after the date of enactment of this Act and shall apply to any individual who, on or after such effective date, is married to an employee or annuitant. (b)(1) Notwithstanding subsection (a)(1) of this section, a former spouse of an employee or Member who retired before the one hundred and eightieth day after the date of enactment of this Act is entitled to a survivor annuity under section 8341(b) of title 5, United States Code, as amended by this Act, if— (A) the retired employee or Member elects, in writing, within eighteen months after the date of enactment of this Act, according to procedures prescribed by the Office of Personnel Management, to have the annuity of such employee or Member reduced under section 8339(j) of title 5, United States Code, as amended by this Act, and, except as provided in paragraph (3) of this subsection, to deposit in the Civil Service Retirement and Disability Fund an amount determined by the Office, as nearlj,^ as may be administratively feasible, to reflect the amount by which such employee or Member's annuity would have been reduced had the reduction been in effect since such employee or Member's annuity commenced, plus interest computed at the annual rate of six percent for each year during which the annuity would have been reduced if the election had been In effect on and after the date the annuity commenced; or (B) where the retired employee or Member dies or died on or before the one hundred and eightieth day after the date of enactment of this Act or does not make the election described in subparagraph (A)— (i) the former spouse's marriage to the employee or Member was dissolved after September 14, 1978; (ii) the former spouse was married to the employee or Member for at least ten years during periods of creditable service under section 8332 of title 5, United States Code; (iii) the former spouse is not entitled to any other retirement or survivor annuity (other than benefits under title II of the Social Security Act or under section 8345(j) of title 5, United States Code, as amended by this Act) based on any previous employment of the former spouse or of the employee or Member; (iv) the former spouse has not remarried before age fiftyfive after September 14, 1978; (v) the former spouse files an application for the survivor annuity with the Office within thirty months after the date of enactment of this Act; and (vi) the former spouse is at least fifty years of age at the time of filing such application. A survivor annuity under subparagraph (B) shall commence on the day after the employee or Member dies or the first day of the second month after the former spouse's application is received by the Office, whichever occurs later. (2) Except as provided in paragraph (3), if a retired employee or Member who makes an election under subparagraph (A) of paragraph (1) does not make the deposit required by such subparagraph, the Office shall collect the amount of the deposit by offset against the employee or Member's annuity, up to a maximum of 25 per centum of the net annuity otherwise payable to the employee or Member, and the employee or Member is deemed to consent to such offset.

31-194

0 - 8 6 - 2 7

 * QL.3

Part3

Ante, p. 3199.

Ante, p. 3195.

42 USC 201. ^"^^' P- ^202.

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text:
Page:United States Statutes at Large Volume 98 Part 3.djvu/834

 98 STAT. 3206

Ante, p. 3195.

5 USC 8340.

Ante, p. 3199.

Ante, p. 3195.

Public notice.

PUBLIC LAW 98-615—NOV. 8, 1984

(3) An election made by an individual under subparagraph (A) of paragraph (1) of this subsection to provide a survivor annuity for any person prospectively voids any election previously made by such individual with respect to such person under section 8339(k)(l) of title 5, United States Code, as amended by this Act, or any similar prior provision of law. Notwithstanding the provisions of such subparagraph (A), an individual who made such an election under such section 8339(k)(l) (or prior provision) shall not be required to make the deposit described in such subparagraph. (4) A survivor annuity provided under this subsection shall be 55 per centum of the annuity of the retired employee or Member, as determined under section 8339(a)-(i) and (n) of title 5, United States Code, increased by— (A) the total percent increase the retired employee or Member was receiving under section 8340 of such title at death, or (B) in the case of a retired employee or Member whose date of death precedes the one hundred and eightieth day after the date of enactment of this Act, the total percent increase the retired employee or Member would have received under such section 8340 had such individual died on the one hundred and eightieth day after such date of enactment, and shall not be subject to reduction under section 8341(b)(4) of such title, as amended by this Act. (c) Notwithstanding subsection (a)(1) of this section, an employee or Member who retired before the one hundred and eightieth day after the date of enactment of this Act and who is married to a spouse acquired after retirement for whom such employee or Member was unable to provide a survivor annuity because— (1) the employee or Member was married at the time of retirement and elected not to provide a survivor annuity for the employee or Member's spouse at the time of retirement, or (2) the employee or Member failed to notify the Office of the employee or Member's post-retirement marriage within one year after the marriage, may elect in writing, within one year after the date of enactment of this Act, in accordance with procedures prescribed by the Office, to provide for a survivor annuity for such spouse under section 8341(b) of title 5, United States Code, as amended by this Act, to have the retired employee or Member's annuity reduced under section 8339(j) of such title, as so amended, and to deposit in the Civil Service Retirement and Disability Fund an amount determined by the Office, as nearly as may be administratively feasible, to reflect the amount by which such employee or Member's annuity would have been reduced had the election been continuously in effect since the annuity commenced, plus interest. For the purposes of the preceding sentence, the annual rate of interest for each year during which the annuity would have been reduced if the election had been in effect on and after the date the annuity commenced shall be 6 percent. If the retired employee or Member does not make such deposit, the Office shall collect such amount by offset against such employee or Member's annuity, up to a maximum of 25 percent of the net annuity otherwise payable to such employee or Member, and such employee or Member is deemed to consent to such offset. The Office shall provide for general public notice of the right to make an election under this subsection. In cases to which paragraph (2) of this subsection applies, the retired employee or Member shall provide the Office with such documentation as the Office shall decide is

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98 STAT. 3207

appropriate, that such employee or Member attempted to elect a reduced annuity with survivor benefit for such employee or Member's current spouse and that such employee or Member's election was rejected by the Office because it was untimely filed. (d) A deposit required by subsection (b)(1)(A) or (c) of this section may be made by the surviving former spouse or spouse, as applicable, of the retired employee or Member. (e) The Office shall determine at the end of each fiscal year— (1) the cost of survivor annuities provided under subsections (b) and (c) of this section, less an amount determined appropriate by the Office to reflect the value of any deposits made under subsection (b)(1)(A), (c), or (d), and (2) the cost of administering subsections (b) and (c). The Office shall notify the Secretary of the Treasury of the amounts so determined. The Secretary of the Treasury, before closing the account for the fiscal year in question, shall credit to the Civil Service Retirement and Disability Fund, out of any money in the Treasury not otherwise appropriated, such amounts, which shall be available in the same manner as provided under subparagraphs (A) and (B) of section 8348(a)(1) of title 5, United States Code, as amended by this Act. (f) An individual who is entitled to a survivor annuity under subsection (b) of this section is deemed to be in receipt of annuity payments under section 8341(h) of title 5, United States Code, as amended by this Act, for the purpose of chapter 89 of such title, as so amended. Notwithstanding subsection (a)(2) of this section, any such individual who otherwise meets the definition of a former spouse under section 8901 of title 5, United States Code, as so amended, may enroll in an approved health benefits plan described by section 8903 of such title, under the conditions set forth in section 8905(c) of such title, as so amended. (g)(1) For purposes of subsections (a)(1), (b), (c), (d), and (e), "employee", "Member", and "former spouse" each has the meaning given that term under section 8331 of title 5, United States Code, as amended by this Act. (2) For purposes of subsection (a)(2), "employee" and "annuitant" each has the meaning given that term under section 8901 of title 5, United States Code. (h) Section 827 of the Foreign Service Act of 1980 and section 292 of the Central Intelligence Agency Retirement Act of 1964 for Certain Employees shall not apply with respect to either the amendments made by section 2 or the preceding provisions of this section. TITLE II—PERFORMANCE MANAGEMENT AND RECOGNITION SYSTEM ESTABLISHMENT OF PERFORMANCE MANAGEMENT AND RECOGNITION SYSTEM

SEC. 201. (a) Chapter 54 of title 5, United States Code, is amended to read as follows;

Ante, p. 3202.

Ante, p. 3199. Ante, p. 3202. 5 USC 8901 et seq.

Ante, p. 3195.

Ante, p. 3202. 22 USC 4067. 50 USC 403 note.

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Page:United States Statutes at Large Volume 98 Part 3.djvu/836

 98 STAT. 3208

PUBLIC LAW 98-615—NOV. 8, 1984

"CHAPTER 54—PERFORMANCE MANAGEMENT AND RECOGNITION SYSTEM "Sec. "5401. Purpose. "5402. Coverage. "5403. General pay increases. "5404. Merit increases. "5405. Pay administration. "5406. Performance awards. "5407. Cash award program. "5408. Report. "5409. Regulations. "5410. Termination. 5 USC 5401.

"§ 540L Purpose "It is the purpose of this chapter to provide for a performance management and recognition system which shall— "(1) use performance appraisals as the basis for (a) determining adjustments in basic pay by general pay increases and merit increases, and (b) making performance award determinations; "(2) within available funds, recognize and reward quality performance by varying amounts of performance and cash awards; "(3) within available funds, provide for training to improve accuracy, objectivity, and fairness in the evaluation of performance; "(4) regulate the costs of performance awards by establishing funding level requirements; and "(5) provide the means to reduce or withhold certain pay increases for less than fully successful performance.

"§ 5402. Coverage "(a) Except as provided in subsection (b) or (c) of this section, this chapter shall apply to any supervisor or management official (as 5 USC 7103. defined in paragraphs (10) and (11) of section 7103(a) of this title, respectively) who is in a position within grade GS-13, GS-14, or GS5 USC 5104, 15 of the General Schedule described in section 5104 of this title. 5332. "(b)(1) Upon request filed under paragraph (3) of this subsection, Exclusions. the President may, in writing, exclude an agency, any unit of an agency, or any class of employees within any such unit, from the application of this chapter, if the President considers such exclusion to be required as a result of conditions arising from— "(A) the recent establishment of the agency, unit, or class, or the implementation of a new program; "(B) an emergency situation; or "(C) any other situation or circumstance. Effective date. "(2) Any exclusion under this subsection shall not take effect President of U.S. earlier than 30 calendar days after the President transmits to each Report. House of the Congress a report describing the agency, unit, or class to be excluded and the reasons therefor. "(3) A request for exclusion of an agency, any unit of an agency, or any class of employees within any such unit, under this subsection shall be filed by the head of the agency with the Office of Personnel Management, and shall set forth reasons why the agency, unit, or class should be excluded from the application of this chapter. The Office shall review the request and reasons therefor, undertake such 5 USC 5402.

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98 STAT. 3209

other review as it considers appropriate to determine whether the agency, unit, or class should be excluded from the application of this chapter and, upon completion of its review, recommend to the President whether the agency, unit, or class should be so excluded. "(4) Any agency, unit, or class which is excluded pursuant to this subsection shall, insofar as practicable, make a sustained effort to eliminate the conditions on which the exclusion is based. "(5) The Office shall periodically review any exclusion from coverage and may at any time recommend to the President that an exclusion under this subsection be revoked. The President may at any time revoke, in writing, any exclusion under this subsection. "(6) The Office shall prescribe regulations under which an employee may be excluded from the application of this chapter other than as part of an agency, unit, or class so excluded under the preceding paragraphs of this subsection. To the extent practicable, the regulations shall be based on the provisions of such paragraphs. "(c) This chapter shall not apply to individuals employed under the Office of the Architect of the Capitol, the Library of Congress, the Botanic Garden, or the Administrative Office of the United States Courts. "§ 5403. General pay increases "(a) For purposes of this section, a pay adjustment period, in the case of an employee covered by this chapter, shall be the period beginning on the first day of the first pay period applicable to such employee commencing on or after the first day of the month in which an adjustment takes effect under section 5305 of this title and ending at the close of the day before the beginning of the following pay adjustment period. "(b) A determination concerning a general pay increase under this section shall, for any pay adjustment period, be made based on the level of performance of the employee involved, as determined for the latest appraisal period under section 4302a of this title (or an equivalent rating system) before the beginning of such pay adjustment period. "(c) Subject to section 5405(a)(1)(A) of this title, if the employee's performance is rated— "(1) at the fully successful level or either of the 2 levels above the fully successful level, the rate of basic pay of the employee shall be increased by the full general pay increase, effective as of the beginning of the pay adjustment period; "(2) at the level 1 level below the fully successful level, the rate of basic pay of the employee shall be increased by one-half of the full general pay increase, effective as of the beginning of the pay adjustment period; or "(3) at the level 2 levels below the fully successful level, the rate of basic pay of the employee shall not be increased under this section. "(d) A full general pay increase for any pay adjustment period under this section shall be determined by multiplying the rate of basic pay of the employee involved on the day immediately preceding the pay adjustment period by the percentage corresponding to the percentage generally applicable under section 5305 of this title to positions not covered by this chapter which are in the same grade as the position held by such employee. "(e)(1) The basic pay of an employee for whom a determination under section 4302a of this title (or an equivalent rating system) for the latest appraisal period is not available shall be adjusted under

President of U.S. Regulations.

5 USC 5403.

5 USC 5305.

Post, p. 3214.

Post, p. 3211.

5 USC 5305.

Regulations. Post, p. 3214.

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PUBLIC LAW 98-615—NOV. 8, 1984

this subsection in such circumstances as the Office of Personnel Management shall by regulation prescribe. "(2) Any adjustment made under this subsection shall be equal to an adjustment under subsection (c)(1) of this section. 5 USC 5404.

5 USC 5332.

Post, p. 3214. Effective date. Post, p. 3211.

Regulations. Post, p. 3214.

"§ 5404. Merit increases "(a) For purposes of this section— "(1) the term 'applicable reference rate', as used with respect to the rate of basic pay of an employee, means the rate equal to the sum of— "(A) the minimum rate of basic pay provided under section 5332 of this title for the grade of the position held by such employee; and "(B) one-third of the difference between the maximum rate of basic pay provided for such grade under such section and the minimum rate of basic pay so provided; "(2) the term 'merit increase' means, with respect to a grade, an increase equal to one-ninth of the difference between the maximum rate of basic pay provided for such grade under section 5332 of this title and the minimum rate of basic pay so provided; and "(3) a reference to the performance rating of an employee shall, for purposes of any increase which may take effect under this section in a year, be considered to be a reference to the level of performance of such employee, as determined for the latest appraisal period under section 4302a of this title (or an equivalent rating system) before the effective date of such increase. "(b) Subject to section 5405(a)(1)(A) of this title, under regulations prescribed by the Office of Personnel Management, the rate of basic pay of an employee covered by this chapter shall be increased each year in accordance with the applicable provisions of subsection (c) of this section, effective as of the beginning of the first applicable pay period commencing on or after October 1 of such year. "(c)(1)(A) If the rate of basic pay of the employee does not equal or exceed the applicable reference rate on the day before the effective date of an increase under this section, and the performance of such employee is rated at the fully successful level or either of the 2 levels above the fully successful level, the rate of basic pay of the employee shall be increased by an amount equivalent to a merit increase. "(B) If the rate of basic pay of the employee equals or exceeds the applicable reference rate on the day before the effective date of an increase under this section, and the performance of such employee is rated— "(i) at the level 2 levels above the fully successful level, the rate of basic pay of the employee shall be increased by an amount equivalent to a merit increase; "(ii) at the level 1 level above the fully successful level, the rate of basic pay of the employee shall be increased by an amount equivalent to one-half of a merit increase; or "(iii) at the fully successful level, the rate of basic pay of the employee shall be increased by an amount equivalent to onethird of a merit increase. "(2) The rate of basic pay of an employee whose performance is rated at either of the 2 levels below the fully successful level shall not be increased under this section for the year involved. '<(d) The Office of Personnel Management shall prescribe regulations under which this section shall be applied in the case of an employee for whom a determination under section 4302a of this title

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(or an equivalent rating system) for the latest appraisal period is not available. "§ 5405. Pay administration 5 USC 5405. "(a)(1) An employee covered by this chapter— "(A) may not be paid at a rate greater than the maximum rate of basic pay for the grade of the employee's position, as set 5 USC 5332. forth in section 5332 of this title; and "(B) except as provided in paragraph (2) of this subsection, may not be paid at a rate less than the minimum rate of basic pay for such grade, as set forth in section 5332 of this title. "(2) An employee may be paid at a rate less than the minimum rate of basic pay for the grade of such employee's position to the extent that payment of the lesser rate is the result of the employee having received less than a full general pay increase under section 5403 of this title. "(b) Any employee whose position is brought under this chapter shall, so long as the employee continues to occupy the position, be entitled to receive basic pay at a rate of basic pay not less than the rate the employee was receiving when the position was brought under this chapter, plus any subsequent increases under sections 5403 and 5404 of this title. "(c) The Office of Personnel Management shall prescribe regula- Regulations. Effective tions governing the method by which an increase under section 5403 Ante, pp. dates. 3209, of this title and an increase under section 5404 of this title shall be 3210. made in any case in which both of those increases are to take effect beginning on the same date. "(d) Under regulations which the Office shall prescribe, the benefit of advancement through the range of basic pay for a grade shall be preserved for any employee who is covered by this chapter and whose continuous service is interrupted in the public interest by service in the Armed Forces, or by service in essential non-Government civilian employment during a period of war or national emergency. "(e) For the purpose of section 5941 of this title, rates of basic pay 5 USC 5941. of employees covered by this chapter shall be considered rates of basic pay fixed by statute. "(0 In the case of an employee covered by this chapter for whose position a higher rate of basic pay has been established under section 5303 of this title, any reference in this chapter to a rate of basic pay provided under or set forth in section 5332 of this title shall be deemed to be a reference to the corresponding rate of basic pay established under such section 5303. "§ 5406. Performance awards 5 USC 5406. "(a)(1) Any employee who is covered by this chapter, and whose performance for an appraisal period is rated under section 4302a of this title (or an equivalent rating system) at the level 2 levels above Post, p. 3214. the fully successful level, shall be paid a performance award under this section for such period. "(2)(A) The amount of a performance award referred to in para- Effective date. graph (1) of this subsection shall be determined by the appropriate agency head, except that any such award shall be not more than 10 percent of the employee's annual rate of basic pay and, effective after fiscal year 1985, shall be not less than 2 percent of such annual rate.

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 98 STAT. 3212

Post, p. 3214.

Regulations.

PUBLIC LAW 98-615—NOV. 8, 1984

"(B) Notwithstanding subparagraph (A) of this paragraph, a performance award exceeding 10 percent but not exceeding 20 percent of the employee's annual rate of basic pay may be paid if the agency head determines that such award is warranted by unusually outstanding performance. "(b)(1) Any employee who is covered by this chapter, and whose performance for an appraisal period is rated under section 4302a of this title (or an equivalent rating system) at the level 1 level above the fully successful level or at the fully successful level, may be paid a performance award under this section for such period. "(2) The amount of a performance award referred to in paragraph (1) of this subsection shall be determined by the appropriate agency head, except that any such award shall be not more than 10 percent of the employee's annual rate of basic pay. "(c)(1) Subject to subsections (a)(2) and (b)(2) of this section, the aggregate amount of performance awards paid under this section by an agency during any fiscal year shall be— "(A) not less than the product of— "(i) the applicable minimum percentage for such year under paragraph (2) of this subsection, multiplied by "(ii) an estimated aggregate amount of basic pay which will be payable to employees of the agency covered by the performance management and recognition system during such year, as determined by the head of the agency, taking into consideration the number of employees who were covered by such system during the preceding fiscal year (or by the merit pay system in the case of fiscal year 1984) and the applicable rates of basic pay in such preceding year; and "(B) not more than the product of— "(i) the applicable maximum percentage for such year under paragraph (2) of this subsection, multiplied by "(ii) the amount under subparagraph (A)(ii) of this paragraph for such year. "(2)(A)(i) 1 he applicable minimum percentage— "(I) shall be 0.75 percent for fiscal year 1985; "(II) shall, for each of the 4 fiscal years thereafter, be adjusted incrementally (by equal increments or otherwise) over the percentage for the preceding fiscal year by the appropriate agency head in accordance with regulations which the Office of Personnel Management shall prescribe; and "(III) shall, as a result of the final adjustment, be increased to 1.15 percent for fiscal year 1989. "(ii) The applicable maximum percentage for each of the 5 fiscal years during which this chapter is in effect shall be 1.5 percent. "(B)(i) Notwithstanding subparagraph (A) of this paragraph, in the case of an agency described in clause (ii) of this subparagraph the applicable minimum percentage for any fiscal year during which this chapter is in effect shall be a percentage, not less than the minimum percentage described in subsection (2)(A)(i) and not to exceed 10 percent, which the Office shall by regulation prescribe. "(ii) This subparagraph applies to an agency in a fiscal year if the average number of employees employed under such agency during the immediately preceding fiscal year was equal to or less than the equivalent of 20 full-time employees.". "(d) A failure to pay a performance award authorized by subsection (b) of this section may not be appealed.

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98 STAT. 3213

"(e) A performance award paid to an employee under this section shall be in addition to the basic pay of the employee and any cash award paid under section 5407 of this title. "§ 5407. Cash award program "(a) The head of an agency may pay a cash award to, and incur necessary expenses for the honorary recognition of, any employee who is covered by this chapter, and who— "(1) by the employee's suggestion, invention, superior accomplishment, or other personal effort, contributes to the efficiency, economy, or other improvement of Government operations, or achieves a significant reduction in paperwork; or "(2) performs a special act or service in the public interest in connection with or related to the employee's Federal employment. "(b) The President may pay a cash award to, and incur necessary expenses for the honorary recognition of, any employee who is covered by this chapter, and who— "(1) by the employee's suggestion, invention, superior accomplishment, or other personal effort, contributes to the efficiency, economy, or other improvement of Government operations, or achieves a significant reduction in paperwork; or "(2) performs an exceptionally meritorious special act or service in the public interest in connection with or related to the employee's Federal employment. A Presidential cash award may be in addition to an agency cash award under subsection (a) of this section. "(c) A cash award paid to an employee under this section shall be in addition to the basic pay of the employee and any performance award paid under section 5406 of this title. Acceptance of a cash award under this section constitutes an agreement that the use by the Government of any idea, method, or device for which the av^^ard is made does not form the basis of any claim of any nature against the Government by the employee accepting the award, or the employee's heirs or assigns. "(d) A cash award to, and expenses for the honorary recognition of, any employee who is covered by this chapter may be paid from the fund or appropriation available to the activity primarily benefiting, or the various activities benefiting, from the suggestion, invention, superior accomplishment, or other meritorious effort of the employee. The head of the agency concerned shall determine the amount to be contributed by each activity to any agency cash award under subsection (a) of this section. The President shall determine the amount to be contributed by each activity to a Presidential award under subsection (b) of this section. "(e)(1) Except as provided in paragraph (2) of this subsection, a cash award under this section may not exceed $10,000. "(2) If the head of an agency certifies to the Office of Personnel Management that the suggestion, invention, superior accomplishment or other meritorious effort of an employee for which a cash award is proposed is highly exceptional and unusually outstanding, a cash award in excess of $10,000 but not in excess of $25,000 may be awarded to the employee on the approval of the Office. "(f) The President or the head of an agency may pay a cash award under this section notwithstanding the death or separation from the service of an employee, if the suggestion, invention, superior accomplishment, or other meritorious effort of the employee for which the

Infra. 5 USC 5407.

Claims. '^"^^' P ^^^l-

President of U.S.

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 98 STAT. 3214

5 USC 5408.

5 USC 5409.

5 USC 5410.

PUBLIC LAW 98-615—NOV. 8, 1984 award is proposed was made or performed while the employee was covered by this chapter. "§ 5408. Report "The Office of Personnel Management shall submit an annual report to the President and each House of the Congress evaluating the effectiveness of the performance management and recognition system established by this chapter. Each such report shall be prepared after consultation with the respective heads of a sufficient range of agencies so as to permit an adequate basis for making a meaningful evaluation. "§ 5409. Regulations "The Office of Personnel Management shall prescribe regulations to carry out this chapter. "§ 5410. Termination "This chapter and any regulations prescribed under this chapter shall cease to be effective after September 30, 1989.". (b) The table of chapters at the beginning of part III of title 5, United States Code, is amended by striking out the item relating to chapter 54 and inserting in lieu thereof the following: "54. Performance Management and Recognition System

5401".

PERFORMANCE APPRAISAL SYSTEMS

SEC. 202. (a) Chapter 43 of title 5, United States Code, is amended by inserting after section 4302 the following new section: 5 USC 4302a.

Ante, p. 3207.

Regulations.

"§ 4302a. Establishment of performance appraisal systems for performance management and recognition system employees "(a) Each agency shall develop one or more performance appraisal systems for employees covered by chapter 54 of this title which— "(1) provide for periodic appraisals of job performance of such employees; "(2) require the joint participation of the supervising official and the employee in developing performance standards with authority for establishing standards resting with the supervising official; and "(3) use the results of performance appraisals as a basis— "(A) for adjusting the base pay and making performance award decisions with respect to any such employee in accordance with the applicable provisions of such chapter 54; and "(B) for training, rewarding, reassigning, promoting, reducing in grade, retaining, and removing any such employee. "(b) Under regulations which the Office of Personnel Management shall prescribe, each performance appraisal system under this section shall provide for— "(1) five levels of summary performance ratings as follows: "(A) two levels which are above the fully successful level; "(B) a fully successful level; and "(C) two levels which are below the fully successful level; "(2) establishing, in writing, the critical elements of each employee's position and the performance standards for the fully

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98 STAT. 3215

successful level for each such element which will, to the maximum extent feasible, permit accurate evaluation of job performance on the basis of objective criteria related to the job in question; "(3) communicating, at the beginning of each appraisal period and in writing, to each employee who is covered by chapter 54 of this title the performance standards and critical elements of the ^«^^' P 3207. employee's position; "(4) evaluating each such employee during the appraisal period on the basis of such standards; "(5) assisting any such employee in improving performance rated at a level below the fully successful level; and "(6) reassigning, reducing in grade, or removing any employee who continues to perform at the level which is 2 levels below the fully successful level, after such employee has been provided with written notice of such employee's rating and afforded reasonable opportunity to raise such employee's level of performance to the fully successful level or higher. "(c)(1) Appraisals of performance under this section— "(A) shall take into account individual performance and may take into account organizational accomplishment; "(B) shall be based on factors such as— "(i) any improvement in efficiency, productivity, and quality of work or service, including any significant reduction in paperwork; "(ii) cost efficiency; "(iii) timeliness of performance; "(iv) other indications of the effectiveness, productivity, and quality of performance of the employees for whom the employee is responsible; and "(v) meeting affirmative action goals and achievement of equal employment opportunity requirements; "(C) may be reviewed by an employee of the agency in accordance with procedures established by the Office of Personnel Management; "(D) shall, on request of the employee whose performance is appraised, by reconsidered by an employee of the agency in accordance with procedures established by the Office; and "(E) may not be appealed outside the agency. "(2) Reconsideration of an appraisal under paragraph (1)(D) of this subsection may be made only by an employee who is in a higher position in the agency than each employee who made, reviewed, or approved the appraisal. "(d)(1) In order to promote the purposes of this section, there shall Performance be established within each agency a performance standards review standards review boards, board (hereinafter in this subsection referred to as the 'board'), establishment. consisting of at least six members, all of whom shall be chosen by the agency head from individuals employed in or under such agency. Of the members, at least one-half shall be employees who are covered by chapter 54 of this title and who are in the competitive service. A board shall be chaired by the member of the board designated for that purpose by the agency head. "(2) It shall be the function of each board— "(A) to assess, by the use of representative sampling techniques, the appropriateness of performance standards developed and used by the agency under this section;

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